1.Strategic refinery
reserve
(a)
(1)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)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)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)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)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
(B)terrorist
attacks;
(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)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).
(f)
(1)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)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)The
Secretary of Energy shall carry out this section in coordination with the
Secretary of Defense.
(h)Compliance with
federal environmental requirementsNothing in this section
affects any requirement to comply with Federal or State environmental or other
laws.
2.Reports on
refinery closures
(a)Reports to
secretary of energy
(1)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)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)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—
(1)the report;
and
(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;
(E)regional
economies;
(F)regional supplies
of refined petroleum products;
(G)the supply of
fuel to the Department of Defense; and
(H)energy
security.