Strategic Gasoline and Fuel Reserve

(a)

In general

Title I of the Energy Policy and Conservation Act (42 U.S.C. 6201 et seq.) is amended— (1)by redesignating part E (42 U.S.C. 6251 et seq.) as part F; (2)by redesignating section 191 (42 U.S.C. 6251) as section 199; and (3)by inserting after part D (42 U.S.C. 6250 et seq.) the following:

Strategic Gasoline and Fuel Reserve

191.

Definitions

In this part: (1)

Gasoline

The term gasoline means regular unleaded gasoline. (2)

Reserve

The term Reserve means the Strategic Gasoline and Fuel Reserve established under section 192(a).

192.

Establishment

(a)

In general

Notwithstanding any other provision of this Act, the Secretary shall establish, maintain, and operate a Strategic Gasoline and Fuel Reserve. (b)

Not component of Strategic Petroleum Reserve

The Reserve is not a component of the Strategic Petroleum Reserve established under part B. (c)

Capacity

The Reserve shall contain not more than— (1)40,000,000 barrels of gasoline; and (2)7,500,000 barrels of jet fuel. (d)

Reserve sites

(1)

Siting

Not later than 1 year after the date of enactment of this Act, the Secretary shall determine not less than 3 Reserve sites, and not more than 5 Reserve sites, throughout the United States that are regionally strategic. (2)

Operation

The Reserve sites described in paragraph (1) shall be operational not later than 2 years after the date of enactment of this Act. (e)

Security

In establishing the Reserve under this section, the Secretary shall obtain the concurrence of the Secretary of Homeland Security with respect to physical design security and operational security. (f)

Authority

In carrying out this part, the Secretary may— (1)purchase, contract for, lease, or otherwise acquire, in whole or in part, storage and related facilities and storage services; (2)use, lease, maintain, sell, or otherwise dispose of storage and related facilities acquired under this part; (3)acquire by purchase, exchange, lease, or other means gasoline and fuel for storage in the Reserve; (4)store gasoline and fuel in facilities not owned by the United States; and (5)sell, exchange, or otherwise dispose of gasoline and fuel from the Reserve, including to maintain— (A)the quality or quantity of the gasoline or fuel in the Reserve; or (B)the operational capacity of the Reserve. (g)

Fill date

(1)

In general

Except as provided in paragraph (2), the Secretary shall complete the process of filling the Reserve under this section by March 1, 2008. (2)

Extensions

The President may extend the deadline established under paragraph (1) if— (A)the President determines that filling the Reserve within that deadline would cause an undue economic burden on the United States; and (B)the President receives approval from Congress.

193.

Release of gasoline and fuel

(a)

In general

The Secretary shall release gasoline or fuel from the Reserve only if— (1)the President finds that there is a severe fuel supply disruption by finding that— (A)a regional or national supply shortage of gasoline or fuel of significant scope and duration has occurred; (B)a substantial increase in the price of gasoline or fuel has resulted from the shortage; (C)the price increase is likely to cause a significant adverse impact on the national economy; and (D)releasing gasoline or fuel from the Reserve would assist directly and significantly in reducing the adverse impact of the shortage; or (2)(A)the Governor of a State submits to the Secretary a written request for a release from the Reserve that contains a finding that— (i)a regional or statewide supply shortage of gasoline or fuel of significant scope and duration has occurred; (ii)a substantial increase in the price of gasoline or fuel has resulted from the shortage; and (iii)the price increase is likely to cause a significant adverse impact on the economy of the State; and (B)the Secretary concurs with the findings of the Governor under subparagraph (A) and determines that— (i)a release from the Reserve would mitigate gasoline or fuel price volatility in the State; (ii)a release from the Reserve would not have an adverse effect on the long-term economic viability of retail gasoline or fuel markets in the State and adjacent States; and (iii)a release from the Reserve would not suppress prices below long-term market trend levels. (b)

Procedure

(1)

Response of Secretary

The Secretary shall respond to a request submitted under subsection (a)(2) not later than 5 days after receipt of the request by— (A)approving the request; (B)denying the request; or (C)requesting additional supporting information. (2)

Release

The Secretary shall establish procedures governing the release of gasoline or fuel from the Reserve in accordance with this subsection. (3)

Requirements

(A)

Eligible entity

In this paragraph, the term eligible entity means an entity that is customarily engaged in the sale or distribution of gasoline or fuel. (B)

Sale or disposal from Reserve

The procedures established under this subsection shall provide that the Secretary may— (i)sell gasoline or fuel from the Reserve to an eligible entity through a competitive process; or (ii)enter into an exchange agreement with an eligible entity under which the Secretary receives a greater volume of gasoline or fuel as repayment from the eligible entity than the volume provided to the eligible entity. (c)

Continuing evaluation

The Secretary shall conduct a continuing evaluation of the drawdown and sales procedures established under this section.

194.

Reports

(a)

Gasoline and fuel

Not later than 45 days after the date of enactment of this section, the Secretary shall submit to Congress and the President a plan describing— (1)the acquisition of storage and related facilities or storage services for the Reserve, including the use of storage facilities not currently in use or not currently used to capacity; (2)the acquisition of gasoline and fuel for storage in the Reserve; (3)the anticipated methods of disposition of gasoline and fuel from the Reserve; (4)the estimated costs of establishment, maintenance, and operation of the Reserve; (5)efforts that the Department will take to minimize any potential need for future drawdowns from the Reserve; and (6)actions to ensure the quality of the gasoline and fuel in the Reserve are maintained. (b)

Natural gas and diesel

Not later than 90 days after the date of enactment of this section, the Secretary shall submit to Congress a report describing the feasibility of creating a natural gas and diesel reserve similar to the Reserve under this part.

195.

Strategic Gasoline and Fuel Reserve Fund

(a)

Establishment

There is established in the Treasury of the United States a revolving fund, to be known as the Strategic Gasoline and Fuel Reserve Fund (referred to in this section as the Fund), consisting of— (1)such amounts as are appropriated to the Fund under subsection (b); (2)such amounts as are appropriated to the Fund under section 196; and (3)any interest earned on investment of amounts in the Fund under subsection (d). (b)

Transfers to Fund

There are appropriated to the Fund amounts equivalent to amounts collected as receipts and received in the Treasury from the sale, exchange, or other disposition of gasoline or fuel from the Reserve. (c)

Expenditures from Fund

On request by the Secretary and without the need for further appropriation, the Secretary of the Treasury shall transfer from the Fund to the Secretary such amounts as the Secretary determines are necessary to carry out activities under this part, to remain available until expended. (d)

Investment of amounts

(1)

In general

The Secretary of the Treasury shall invest such portion of the Fund as is not, in the judgment of the Secretary of the Treasury, required to meet current withdrawals. (2)

Interest-bearing obligations

Investments may be made only in interest-bearing obligations of the United States. (3)

Acquisition of obligations

For the purpose of investments under paragraph (1), obligations may be acquired— (A)on original issue at the issue price; or (B)by purchase of outstanding obligations at the market price. (4)

Sale of obligations

Any obligation acquired by the Fund may be sold by the Secretary of the Treasury at the market price. (5)

Credits to Fund

The interest on, and the proceeds from the sale or redemption of, any obligations held in the Fund shall be credited to and form a part of the Fund. (e)

Transfers of amounts

(1)

In general

The amounts required to be transferred to the Fund under this section shall be transferred at least monthly from the general fund of the Treasury to the Fund on the basis of estimates made by the Secretary of the Treasury. (2)

Adjustments

Proper adjustment shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred.

196.

Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this part, to remain available until expended.