[Congressional Record Volume 152, Number 57 (Thursday, May 11, 2006)]
[Extensions of Remarks]
[Pages E805-E806]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               INTRODUCTION OF STRATEGIC REFINERY RESERVE

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                           HON. RICK BOUCHER

                              of virginia

                    in the house of representatives

                         Thursday, May 11, 2006

  Mr. BOUCHER. Mr. Speaker, I am pleased today to join my colleague 
from Michigan, Mr. Dingell, in introducing legislation to expand the 
nation's refinery capacity by establishing a federal Strategic Refinery 
Reserve (SRR), which will deliver refined petroleum products to the 
commercial market during supply emergencies.
  The legislation that Congressman Dingell and I are introducing builds 
upon the success of the Strategic Petroleum Reserve by taking

[[Page E806]]

the commonsense step of establishing a reserve which can produce 
refined petroleum products. The presence of such a reserve will ensure 
the availability of emergency refinery capacity--a need which has been 
clearly illustrated by the events and high gasoline prices of recent 
months.
  Last year's catastrophic hurricanes, which severely damaged oil 
refineries in the gulf coast illustrated the nation's vulnerability to 
a disruption in supply of refined petroleum and exposed shortcomings in 
our current Strategic Petroleum Reserve (SPR) system. If the nation 
loses significant refinery capacity, crude released from the SPR cannot 
be converted easily into refined product such as gasoline or home 
heating oil. Even with no disruptions, our nation's refineries are 
running at virtually full capacity meaning that any reduction in our 
ability to refine product results in an almost immediate increase in 
gasoline prices.
  The legislation we are introducing would help address this 
vulnerability by requiring the Secretary of Energy to establish and 
operate a Strategic Refinery Reserve (SRR) with capacity equal to 5 
percent of the total United States demand for gasoline, home heating 
oil and other refined petroleum products. The Secretary may design and 
construct new facilities or acquire and re-open previously closed 
facilities.
  During non-emergency times the SRR would provide refined product to 
the federal fleet, including the Department of Defense. Operating the 
refinery reserve on a full-time basis will ensure that federal fleet 
and military needs are met, will lessen start up times for SRR 
refineries to full production during emergencies and will lessen the 
demand for refined product in the consumer market by freeing additional 
supply.
  During times of emergency, the SRR production could be increased and 
the resulting refined products could be used in the commercial market. 
Under the legislation, the Secretary is authorized to use SRR 
production for commercial use based on two criteria: the same severe 
supply disruption criteria used to trigger a drawdown of the SPR and 
upon a Presidential determination of a regional supply shortage.
  Our legislation is a common sense approach to ensure that additional 
refinery capacity is available to provide gasoline during times of 
energy emergency, and I urge its consideration and approval by the 
House.

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