H. R. 142
To establish a national Strategic Gasoline Reserve.
IN THE HOUSE OF REPRESENTATIVES
January 5, 2011
Mr. KISSELL introduced the following bill; which was referred to the Committee
on Energy and Commerce
To establish a national Strategic Gasoline Reserve.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `National Strategic Gasoline Reserve for Purposes
of National Security Act of 2011'.
SEC. 2. STRATEGIC GASOLINE RESERVE.
(1) AUTHORITY- The Secretary of Energy shall establish a Strategic Gasoline
Reserve (in this section referred to as the `Gasoline Reserve') system with
a total capacity of 10,000,000 barrels of regular unleaded gasoline.
(2) RESERVE LOCATIONS- No later than 1 year after the date of enactment
of this Act, the Secretary shall determine strategic locations for no less
than three and no more than five Gasoline Reserve sites, each located in
a different geographical region of the United States. When determining site
locations, the Secretary shall consider all factors including, but not limited
to, seasonal and regional variations in gasoline, cost, regional population,
accessibility for distribution, and the region's vulnerability to natural
disasters and acts of terrorism. The Secretary shall endeavor to find the
most affordable method for storage and when possible should consider the
methodology used for the creation of the Home Heating Oil Reserve and the
Strategic Petroleum Reserve. Gasoline Reserve site locations shall be operational
within 2 years after the date of enactment of this Act.
(3) ONSITE PROTECTION- In establishing the Gasoline Reserve under this section,
the Secretary of Energy shall confer with the Secretary of Transportation
and the Secretary of Homeland Security with respect to physical structures'
security, the transportation security, and operational security.
(b) Transportation- Not later than 1 year after the date of enactment of this
Act, the Secretary of Energy shall transmit to the Congress, the Secretary
of Homeland Security, and the Governor of each State, in which a reserve will
be sited, a plan for the transportation of the contents of the Gasoline Reserve
under this section to wholesale or retail markets in the event of an emergency
sale under subsection (e).
(c) Capacity- The Secretary of Energy shall complete the process of filling
the Gasoline Reserve to a minimum of 90 percent within 2 years after submitting
a transportation plan to the Congress under subsection (b).
(d) Aging Supply- The Secretary shall conduct an annual review of the Gasoline
Reserve supply to ensure that reserves do not exceed their shelf-life. The
Secretary shall have in place within 2 years after the date of enactment of
this Act a plan for ensuring that the inventory of the Gasoline Reserve is
sold and replaced in a manner that ensures the integrity of the product at
all times. The Secretary shall have the authority to exchange an aging supply
of reserve gasoline through private sales or by utilizing the fuel for military
or Government use. The Secretary shall seek the best means to minimize transaction
(e) Requests for Emergency Sale Authorization- The Secretary of Energy shall
sell gasoline from the Gasoline Reserve if--
(1) the Governor of an affected State submits a written request that--
(A) provides sufficient evidence that the sale or supply of gasoline in
the region has been severely disrupted caused in significant part by an
interruption in the normal distribution or availability of gasoline which
dramatically affects the price of gasoline; and
(B) provides sufficient evidence that the State would experience further
adverse effects without the sale of gasoline from the Gasoline Reserve;
(2) the President issues an Executive Order requiring immediate release
from any or all reserves after determining that the conditions specified
in paragraph (1) are satisfied.
(1) Secretary's RESPONSE- The Secretary of Energy shall respond to a request
transmitted under subsection (e)(1) within 7 days of receipt of the request
through a written response, regardless of the decision.
(2) ADDITIONAL INFORMATION- The Secretary may request additional information
if the Secretary concludes there are insufficient reasons provided in a
request for the sale of gasoline from the Gasoline Reserve.
(g) Purchase- The Secretary of Energy is authorized to conduct purchases and
sales of gasoline at wholesale for maintenance of the Gasoline Reserve system.
In conducting these transactions, the Secretary shall--
(1) ensure that the overall supply returns to a minimum 90 percent capacity
in a timely manner following a sizeable depletion due to an emergency; and
(2) assess market conditions to avoid to the extent possible purchases when
prices appear to be at higher levels unlikely to be sustained, or when purchases
of gasoline are likely to significantly raise gasoline prices in the market
served by a particular Reserve, consistent with the need for timely replenishment
of the Reserves after emergency or non-emergency sales.
(h) Annual Report- At a specified date as determined by the Secretary of Energy,
the Secretary shall submit to the President, the Committee on Energy and Commerce
of the House of Representatives and to the Committee on Energy and Natural
Resources of the Senate a report on the status of the Gasoline Reserve outlining
the Reserve's current capacity, emergency sales from the previous year, any
security threats in the previous year, and the current condition of the storage
facilities. The Secretary shall also include in the report any recommendations
for improvements in the efficiency of the purchase, transportation, sale,
and storage of the Gasoline Reserves.
(i) Authorization of Appropriations- There are authorized to be appropriated
to the Secretary of Energy such sums as may be necessary for construction
and operation of the Gasoline Reserve for fiscal years 2011 through 2015.