Sec. 2. Authority for long-term contracts for procurement of certain liquid transportation fuels for the Department of Defense
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Subchapter II of chapter 173 of title 10, United States Code, is amended by adding at the end the following new section: The Secretary of Defense may enter into one or more contracts for the procurement of fuels described in subsection
(b)for the Department of Defense. A fuel described in this subsection is a liquid transportation fuel, including jet fuel, that— meets the requirements of section 526 of the Energy Independence and Security Act of 2007 ( 42 U.S.C. 17142 ); uses a feedstock that is produced within a State; and is refined, manufactured, or produced in a State. The period of a contract entered into under subsection
(a)may not exceed 10 years. A contract under subsection
(a)may not include any options that would extend the overall period of the contract beyond 10 years. Not later than three years after entering into a contract under subsection (a), the Secretary of Defense shall submit to Congress a report on the contract. The report shall include the following: A description of the performance of the contract, including an assessment whether the contract is yielding savings to the Department when compared with the procurement of fuels that meet the requirements referred to in subsection
(b)but are not procured under the authority in subsection (a). In consultation with the Secretary of Energy, an assessment whether the contract has stimulated the development of domestic energy infrastructure, and an assessment whether lengthening the maximum authorized period of contract in subsection
(c)would further stimulate the development of domestic energy infrastructure. An assessment whether the expanded use of contracts as authorized by subsection
(a)have reduced, or can reduce, the vulnerability of the Department to disruptions in the global oil supply, and an assessment whether lengthening the maximum authorized period of contract in subsection (c), could further reduce the vulnerability of the Department to such disruptions. In this section, the term State — means each of the several States; and includes any land under the jurisdiction of an Indian tribe located in any of the several States. . The table of sections at the beginning of subchapter II of chapter 173 of such title is amended by adding at the end the following new item: 2922h. Liquid fuels: contracts for procurement of certain transportation fuels. .
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Sec. 2
Authority for long-term contracts for procurement of certain liquid transportation fuels for the Department of Defense
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