SEC. 1020.

Domestic sourcing of bulk fuel to support Tanker Security Program

DIVISION A · TITLE X: General Provisions · SUBTITLE B: Naval Vessels and Shipyards

Source
SECTION TEXT · SEC. 1020.

(a) Domestic sourcing

Beginning not later than 180 days after the date of the enactment of this Act, the Director of the Defense Logistics Agency shall seek to procure at least 10 percent of covered bulk fuel from domestic refineries with excess production capacity.

(b) Use of Tanker Security Fleet vessels

The delivery of covered bulk fuel procured from a domestic refinery pursuant to subsection (a) shall be transported for delivery to locations outside of the United States on participating fleet vessels.

(c) Coordination

In carrying out this section, the Director of the Defense Logistics Agency shall coordinate with the Administrator of the Maritime Administration to align procurement and delivery planning for covered bulk fuel in accordance with subsection (a) with the Tanker Security Program, including by identifying opportunities to increase the use of participating fleet vessels consistent with subsection (b).

(d) Report

Not later than 270 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report that includes—

(1)

an assessment of the extent to which participating fleet vessels are expected to be used pursuant to subsection (b);

(2)

a description of opportunities to increase the delivery of covered bulk fuel procured from a domestic refinery pursuant to subsection (a) in support of the Tanker Security Program, including opportunities to establish recurring shipments of such fuel to fuel depots of the Department located outside of the United States;

(3)

an assessment of how such increase would support the availability of United States mariners and long-range fuel supply chains necessary to sustain military operations in contested environments; and

(4)

any legislation, policy, or contract authority that the Secretary determines necessary to implement this section.

(e) Definitions

In this section:

(1)

The term covered bulk fuel means aviation turbine fuel, marine diesel, or any other refined petroleum product procured by the Secretary of Defense for delivery to locations outside of the United States in support of military operations or fuel depots of the Department of Defense.

(2)

The term excess production capacity , with respect to a refinery, means a production capacity of the refinery that the Secretary of Defense, in coordination with the Secretary of Energy, determines is in excess of domestic consumption requirements.

(3)

The term participating fleet vessel has the meaning given such term in section 53401 of title 46, United States Code.