Refineries

Title I of the Energy Policy and Conservation Act is amended by adding at the end the following new part:

Refineries

191.

Strategic Refinery Reserve

(a)

Establishment

The Secretary shall establish and operate a Strategic Refinery Reserve in the United States. The Secretary may design and construct new refineries, or acquire closed refineries and reopen them, to carry out this section. (b)

Operation

The Secretary shall operate refineries in the Strategic Refinery Reserve for the following purposes: (1)During any period described in subsection (c), to provide petroleum products to the general public. (2)To provide petroleum products to the Federal Government, including the Department of Defense, as well as State governments and political subdivisions thereof who choose to purchase refined petroleum products from the Strategic Refinery Reserve. (c)

Emergency periods

The Secretary shall make petroleum products from the Strategic Refinery Reserve available under subsection (b)(1) only— (1)during a severe energy supply interruption, within the meaning of such term under part B; or (2)if the President determines that there is a regional petroleum product supply shortage of significant scope and duration and that action taken under subsection (b)(1) would assist directly and significantly in reducing the adverse impact of such shortage. (d)

Locations

In determining the location of a refinery for the Strategic Refinery Reserve, the Secretary shall take into account the following factors: (1)Impact on the local community (determined after requesting and receiving comments from State, county or parish, and municipal governments, and the public). (2)Regional vulnerability to a natural disaster. (3)Regional vulnerability to terrorist attacks. (4)Proximity to the Strategic Petroleum Reserve. (5)Accessibility to energy infrastructure. (6)The need to minimize adverse public health and environmental impacts. (7)The energy needs of the Federal Government, including the Department of Defense. (e)

Increased capacity

The Secretary shall ensure that refineries in the Strategic Refinery Reserve are designed to enable a rapid increase in production capacity during periods described in subsection (c). (f)

Implementation plan

Not later than 6 months after the date of enactment of this section, the Secretary shall transmit to the Congress a plan for the establishment and operation of the Strategic Refinery Reserve under this section. Such plan shall provide for establishing, within 2 years after the date of enactment of this section, and maintaining a capacity for the Reserve equal to 5 percent of the total United States daily demand for gasoline, home heating oil, and other refined petroleum products. If the Secretary finds that achieving such capacity within 2 years is not feasible, the Secretary shall explain in the plan the reasons therefor, and shall include provisions for achieving such capacity as soon as practicable. Such plan shall also provide for adequate delivery systems capable of providing Strategic Refinery Reserve product to the entities described in subsection (b)(2). (g)

Compliance with Federal environmental requirements

Nothing in this section shall affect any requirement to comply with Federal or State environmental or other law.

192.

Refinery closing reports

(a)

Closing reports

The owner or operator of a refinery in the United States shall notify the Secretary at least 6 months in advance of permanently closing the refinery, and shall include in such notice an explanation of the reasons for the proposed closing. (b)

Reports to Congress

The Secretary, in consultation with the Federal Trade Commission, shall promptly report to the Congress any report received under subsection (a), along with an analysis of the effects the proposed closing would have on petroleum product prices, competition in the refining industry, the national economy, regional economies and regional supplies of refined petroleum products, and United States energy security.