[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 967 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 967

 To amend the Energy Policy and Conservation Act to create a petroleum 
                product reserve, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 4, 2009

 Mr. Bingaman introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To amend the Energy Policy and Conservation Act to create a petroleum 
                product 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 Petroleum Reserve 
Modernization Act of 2009''.

SEC. 2. PETROLEUM PRODUCT RESERVE.

    (a) Strategic Petroleum Reserve.--Section 154(a) of the Energy 
Policy and Conservation Act (42 U.S.C. 6234(a)) is amended by striking 
``1 billion barrels of petroleum products'' and inserting 
``1,000,000,000 barrels of petroleum products (including at least 
30,000,000 barrels of refined petroleum products)''.
    (b) Plan.--Title I of the Energy Policy and Conservation Act is 
amended by inserting after section 154 (42 U.S.C. 6234) the following:

``SEC. 155. PLAN.

    ``Not later than 180 days after the date of enactment of this 
section, the Secretary shall submit to the President and, if the 
President approves, to Congress, a plan to include refined petroleum 
products in the Strategic Petroleum Reserve, including a description 
of--
            ``(1) the disposition of refined petroleum products that 
        shall be stored in the Reserve, which shall be selected--
                    ``(A) to alleviate shortages that might be expected 
                to result from hurricanes, earthquakes, or other acts 
                of nature; and
                    ``(B) to minimize the number of different kinds of 
                refined petroleum products that shall be stored;
            ``(2) the method of acquisition of refined petroleum 
        products for storage in the Reserve, which shall--
                    ``(A) be intended to minimize both the cost and 
                market disruption associated with the acquisition; and
                    ``(B) include--
                            ``(i) an analysis of the option of 
                        exchanging crude oil from the Reserve for 
                        refined petroleum products; and
                            ``(ii) the anticipated time requirement for 
                        building the inventory of refined petroleum 
                        products;
            ``(3) storage facility options for the storage of refined 
        petroleum products, including the anticipated location of 
        existing or new facilities;
            ``(4) the estimated costs of establishment, maintenance, 
        and operation of the refined petroleum product component of the 
        Reserve;
            ``(5) efforts the Department will take to ensure that 
        distributors and importers are not discouraged from maintaining 
        and increasing supplies of refined petroleum products; and
            ``(6) actions that will be taken to ensure quality of 
        refined petroleum products in the Reserve, including the 
        rotation of products stored.''.
    (c) Drawdown and Sale.--Section 161 of the Energy Policy and 
Conservation Act (42 U.S.C. 6241) is amended--
            (1) by striking subsection (d) and inserting the following:
    ``(d) Limitation on Drawdown and Sale.--
            ``(1) In general.--The drawdown and sale of petroleum 
        products from the Strategic Petroleum Reserve may not be made 
        unless the Secretary determines that--
                    ``(A) the drawdown and sale are required by--
                            ``(i) a severe energy market supply 
                        interruption; or
                            ``(ii) obligations of the United States 
                        under the international energy program; or
                    ``(B) in the case of the refined petroleum product 
                component of the Reserve, a sale of refined petroleum 
                products will mitigate the impacts of weather-related 
                events or other acts of nature that have resulted in a 
                severe energy market disruption.
            ``(2) Severe energy market disruption.--For purpose of this 
        subsection, a severe energy market supply disruption shall be 
        considered to exist if the Secretary determines that--
                    ``(A) an emergency situation exists and there is a 
                disruption in global oil markets of significant scope 
                and duration;
                    ``(B) a severe increase in the price of petroleum 
                products has resulted, or is likely to result, from the 
                emergency situation; and
                    ``(C) the price increase is likely to cause a major 
                adverse impact on the national economy.''; and
            (2) in subsections (h)(1) and (i), by striking 
        ``President'' each place it appears and inserting 
        ``Secretary''.
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