[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1028 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                S. 1028

 To require the Secretary of Energy to establish a strategic refinery 
                    reserve, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 29, 2007

  Mr. Kohl (for himself and Mrs. Feinstein) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To require the Secretary of Energy to establish 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. SHORT TITLE.

    This Act may be cited as the ``Strategic Refinery Reserve Act of 
2007''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Reserve.--The term ``Reserve'' means the Strategic 
        Refinery Reserve established under section 3.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. STRATEGIC REFINERY RESERVE.

    (a) Establishment.--
            (1) In general.--The Secretary shall establish and operate 
        a Strategic Refinery Reserve in the United States.
            (2) Authorities.--To carry out this section, the Secretary 
        may contract for--
                    (A) the construction or operation of new 
                refineries; or
                    (B) the acquisition or reopening of closed 
                refineries.
    (b) Operation.--The Secretary 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 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 (as 
        defined in 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 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) Increased Capacity.--The Secretary shall ensure that refineries 
in the Reserve are designed to provide a rapid increase in production 
capacity during periods described in subsection (c).
    (f) Implementation Plan.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary 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 defined in 211(o)(1) 
                of the Clean Air Act (42 U.S.C. 7545(o)(1)); or
                    (ii) if the Secretary finds that achieving the 
                capacity described in subclause (I) or (II) of clause 
                (i) is not feasible within 2 years after the date of 
                enactment of this Act, include--
                            (I) an explanation from the Secretary 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 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. 4. REPORTS ON REFINERY CLOSURES.

    (a) Reports to Secretary.--
            (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 submit to the Secretary 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 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 economy of the United States;
                    (E) regional economies;
                    (F) regional supplies of refined petroleum 
                products;
                    (G) the supply of fuel to the Department of 
                Defense; and
                    (H) energy security.
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