109th CONGRESS
1st Session
S. 1979
To provide for the establishment of a strategic refinery reserve,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
November 9, 2005
Mr. KOHL introduced the following bill; which was read twice and referred
to the Committee on Energy and Natural Resources
A BILL
To provide for the establishment of a strategic refinery reserve,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. STRATEGIC REFINERY RESERVE.
(1) IN GENERAL- The Secretary of Energy shall establish and operate a Strategic
Refinery Reserve (referred to in this section as the `Reserve') in the United
States.
(2) AUTHORITIES- To carry out this subsection, the Secretary of Energy may
contract for--
(A) the construction or operation of new refineries; or
(B) the acquisition or reopening of closed refineries.
(b) Operation- The Secretary of Energy shall operate the Reserve--
(1) to provide petroleum products to--
(A) the Federal Government (including the Department of Defense); and
(B) any State governments and political subdivisions of States that opt
to purchase refined petroleum products from the Reserve; and
(2) to provide petroleum products to the general public during any period
described in subsection (c).
(c) Emergency Periods- The Secretary of Energy shall make petroleum products
from the Reserve available under subsection (b)(2) only if the President determines
that--
(1) there is a severe energy supply interruption within the meaning of the
term under section 3 of the Energy Policy and Conservation Act (42 U.S.C.
6202); or
(2)(A) there is a regional petroleum product supply shortage of significant
scope and duration; and
(B) action taken under subsection (b)(2) would directly and significantly
assist in reducing the adverse impact of the shortage.
(d) Locations- In determining the location of a refinery for inclusion in
the Reserve, the Secretary of Energy shall take into account--
(1) the impact of the refinery on the local community, as determined after
requesting and reviewing any comments from State and local governments and
the public;
(2) regional vulnerability to--
(A) natural disasters; and
(3) the proximity of the refinery to the Strategic Petroleum Reserve;
(4) the accessibility of the refinery to energy infrastructure and Federal
facilities (including facilities under the jurisdiction of the Department
of Defense);
(5) the need to minimize adverse public health and environmental impacts;
and
(6) the energy needs of the Federal Government (including the Department
of Defense).
(e) Increased Capacity- The Secretary of Energy shall ensure that refineries
in the Reserve are designed to provide a rapid increase in production capacity
during periods described in subsection (c).
(1) IN GENERAL- Not later than 180 days after the date of the enactment
of this Act, the Secretary of Energy shall submit to Congress a plan for
the establishment and operation of the Reserve under this section.
(2) REQUIREMENTS- The plan required under paragraph (1) shall--
(A)(i)(I) provide for, within 2 years after the date of enactment of this
Act, a capacity within the Reserve equal to 5 percent of the total United
States daily demand for gasoline, diesel, and aviation fuel; and
(II) provide for a capacity within the Reserve such that not less than
75 percent of the gasoline and diesel fuel produced by the Reserve contain
an average of 10 percent renewable fuel (as that term is defined in 211(o)(1)(C)
of the Clean Air Act (42 U.S.C. 7545(o)(1)(C)); or
(ii) if the Secretary of Energy finds that achieving the capacity described
in either subclause (I) or (II) of clause (i) is not feasible within 2
years, include--
(I) an explanation from the Secretary of Energy of the reasons why achieving
the capacity within the timeframe is not feasible; and
(II) provisions for achieving the required capacity as soon as practicable;
and
(B) provide for adequate delivery systems capable of providing Reserve
product to the entities described in subsection (b)(1).
(g) Coordination- The Secretary of Energy shall carry out this section in
coordination with the Secretary of Defense.
(h) Compliance With Federal Environmental Requirements- Nothing in this section
affects any requirement to comply with Federal or State environmental or other
laws.
SEC. 2. REPORTS ON REFINERY CLOSURES.
(a) Reports to Secretary of Energy-
(1) IN GENERAL- Not later than 180 days before permanently closing a refinery
in the United States, the owner or operator of the refinery shall provide
to the Secretary of Energy notice of the closing.
(2) REQUIREMENTS- The notice required under paragraph (1) with respect to
a refinery to be closed shall include an explanation of the reasons for
the closing of the refinery.
(b) Reports to Congress- The Secretary of Energy shall, in consultation with
the Secretary of Defense, the Administrator of the Environmental Protection
Agency, and the Federal Trade Commission and as soon as practicable after
receipt of a report under subsection (a), submit to Congress--
(2) an analysis of the effects of the proposed closing covered by the report
on--
(A) in accordance with the Clean Air Act (42 U.S.C. 7401 et seq.), supplies
of clean fuel;
(B) petroleum product prices;
(C) competition in the refining industry;
(D) the national economy;
(F) regional supplies of refined petroleum products;
(G) the supply of fuel to the Department of Defense; and
END
