delete PART 221—PRIORITY SUPPLY OF CRUDE OIL AND PETROLEUM PRODUCTS TO THE DEPARTMENT OF DEFENSE UNDER THE DEFENSE PRODUCTION ACT
Establishes procedures for DOE's Economic Regulatory Administration to issue priority-rated orders compelling petroleum suppliers to deliver fuel to DOD during shortages affecting national defense. Includes certification requirements, show-cause process for suppliers, price-gouging prohibition, liability immunity, and criminal penalties for noncompliance.
Price controls suppress market signals, creating hidden shortages and misallocation. Forced compliance with below-market terms imposes uncompensated costs on suppliers, reducing incentives to serve defense markets. Vague 'necessary or appropriate' standard invites abuse. Defense priorities can be achieved through voluntary premium contracts without distorting free markets.