II 111th CONGRESS 1st Session S. 967 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.

1.

Short title

This Act may be cited as the Strategic Petroleum Reserve Modernization Act of 2009.

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:

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.