[Congressional Record Volume 153, Number 77 (Thursday, May 10, 2007)]
[Senate]
[Pages S5934-S5936]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN:
  S. 1362. A bill to establish a Strategic Gasoline and Fuel Reserve; 
to the Committee on Energy and Natural Resources.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1362

       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 Gasoline and Fuel 
     Reserve Act of 2007''.

     SEC. 2. STRATEGIC GASOLINE AND FUEL RESERVE.

       (a) In General.--Title I of the Energy Policy and 
     Conservation Act (42 U.S.C. 6201 et seq.) is amended--
       (1) by redesignating part E (42 U.S.C. 6251 et seq.) as 
     part F;
       (2) by redesignating section 191 (42 U.S.C. 6251) as 
     section 199; and
       (3) by inserting after part D (42 U.S.C. 6250 et seq.) the 
     following:

             ``PART E--STRATEGIC GASOLINE AND FUEL RESERVE

     ``SEC. 191. DEFINITIONS.

       ``In this part:
       ``(1) Gasoline.--The term `gasoline' means regular unleaded 
     gasoline.
       ``(2) Reserve.--The term `Reserve' means the Strategic 
     Gasoline and Fuel Reserve established under section 192(a).

     ``SEC. 192. ESTABLISHMENT.

       ``(a) In General.--Notwithstanding any other provision of 
     this Act, the Secretary

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     shall establish, maintain, and operate a Strategic Gasoline 
     and Fuel Reserve.
       ``(b) Not Component of Strategic Petroleum Reserve.--The 
     Reserve is not a component of the Strategic Petroleum Reserve 
     established under part B.
       ``(c) Capacity.--The Reserve shall contain not more than--
       ``(1) 50,000,000 barrels of gasoline; and
       ``(2) 7,500,000 barrels of jet fuel.
       ``(3) 21,000,000 barrels of diesel fuel.
       ``(d) Reserve Sites.--
       ``(1) Siting.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall determine not less 
     than 3 Reserve sites, and not more than 5 Reserve sites, 
     throughout the United States that are regionally strategic.
       ``(2) Operation.--The Reserve sites described in paragraph 
     (1) shall be operational not later than 2 years after the 
     date of enactment of this Act.
       ``(e) Security.--In establishing the Reserve under this 
     section, the Secretary shall obtain the concurrence of the 
     Secretary of Homeland Security with respect to physical 
     design security and operational security.
       ``(f) Authority.--In carrying out this part, the Secretary 
     may--
       ``(1) purchase, contract for, lease, or otherwise acquire, 
     in whole or in part, storage and related facilities and 
     storage services;
       ``(2) use, lease, maintain, sell, or otherwise dispose of 
     storage and related facilities acquired under this part;
       ``(3) acquire by purchase, exchange, lease, or other means 
     gasoline and fuel for storage in the Reserve;
       ``(4) store gasoline and fuel in facilities not owned by 
     the United States; and
       ``(5) sell, exchange, or otherwise dispose of gasoline and 
     fuel from the Reserve, including to maintain--
       ``(A) the quality or quantity of the gasoline or fuel in 
     the Reserve; or
       ``(B) the operational capacity of the Reserve.
       ``(g) Fill Date.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary shall complete the process of filling the Reserve 
     under this section by March 1, 2008.
       ``(2) Extensions.--The President may extend the deadline 
     established under paragraph (1) if--
       ``(A) the President determines that filling the Reserve 
     within that deadline would cause an undue economic burden on 
     the United States; and
       ``(B) the President receives approval from Congress.

     ``SEC. 193. RELEASE OF GASOLINE AND FUEL.

       ``(a) In General.--The Secretary shall release gasoline or 
     fuel from the Reserve only if--
       ``(1) the President finds that there is a severe fuel 
     supply disruption by finding that--
       ``(A) a regional or national supply shortage of gasoline or 
     fuel of significant scope and duration has occurred;
       ``(B) a substantial increase in the price of gasoline or 
     fuel has resulted from the shortage;
       ``(C) the price increase is likely to cause a significant 
     adverse impact on the national economy; and
       ``(D) releasing gasoline or fuel from the Reserve would 
     assist directly and significantly in reducing the adverse 
     impact of the shortage; or
       ``(2)(A) the Governor of a State submits to the Secretary a 
     written request for a release from the Reserve that contains 
     a finding that--
       ``(i) a regional or statewide supply shortage of gasoline 
     or fuel of significant scope and duration has occurred;
       ``(ii) a substantial increase in the price of gasoline or 
     fuel has resulted from the shortage; and
       ``(iii) the price increase is likely to cause a significant 
     adverse impact on the economy of the State; and
       ``(B) the Secretary concurs with the findings of the 
     Governor under subparagraph (A) and determines that--
       ``(i) a release from the Reserve would mitigate gasoline or 
     fuel price volatility in the State;
       ``(ii) a release from the Reserve would not have an adverse 
     effect on the long-term economic viability of retail gasoline 
     or fuel markets in the State and adjacent States; and
       ``(iii) a release from the Reserve would not suppress 
     prices below long-term market trend levels.
       ``(b) Procedure.--
       ``(1) Response of secretary.--The Secretary shall respond 
     to a request submitted under subsection (a)(2) not later than 
     5 days after receipt of the request by--
       ``(A) approving the request;
       ``(B) denying the request; or
       ``(C) requesting additional supporting information.
       ``(2) Release.--The Secretary shall establish procedures 
     governing the release of gasoline or fuel from the Reserve in 
     accordance with this subsection.
       ``(3) Requirements.--
       ``(A) Eligible entity.--In this paragraph, the term 
     `eligible entity' means an entity that is customarily engaged 
     in the sale or distribution of gasoline or fuel.
       ``(B) Sale or disposal from reserve.--The procedures 
     established under this subsection shall provide that the 
     Secretary may--
       ``(i) sell gasoline or fuel from the Reserve to an eligible 
     entity through a competitive process; or
       ``(ii) enter into an exchange agreement with an eligible 
     entity under which the Secretary receives a greater volume of 
     gasoline or fuel as repayment from the eligible entity than 
     the volume provided to the eligible entity.
       ``(c) Continuing Evaluation.--The Secretary shall conduct a 
     continuing evaluation of the drawdown and sales procedures 
     established under this section.

     ``SEC. 194. REPORTS.

       ``(a) Gasoline and Fuel.--Not later than 45 days after the 
     date of enactment of this section, the Secretary shall submit 
     to Congress and the President a plan describing--
       ``(1) the acquisition of storage and related facilities or 
     storage services for the Reserve, including the use of 
     storage facilities not currently in use or not currently used 
     to capacity;
       ``(2) the acquisition of gasoline and fuel for storage in 
     the Reserve;
       ``(3) the anticipated methods of disposition of gasoline 
     and fuel from the Reserve;
       ``(4) the estimated costs of establishment, maintenance, 
     and operation of the Reserve;
       ``(5) efforts that the Department will take to minimize any 
     potential need for future drawdowns from the Reserve; and
       ``(6) actions to ensure the quality of the gasoline and 
     fuel in the Reserve are maintained.
       ``(b) Natural Gas and Diesel.--Not later than 90 days after 
     the date of enactment of this section, the Secretary shall 
     submit to Congress a report describing the feasibility of 
     creating a natural gas and diesel reserve similar to the 
     Reserve under this part.

     ``SEC. 195. STRATEGIC GASOLINE AND FUEL RESERVE FUND.

       ``(a) Establishment.--There is established in the Treasury 
     of the United States a revolving fund, to be known as the 
     `Strategic Gasoline and Fuel Reserve Fund' (referred to in 
     this section as the `Fund'), consisting of--
       ``(1) such amounts as are appropriated to the Fund under 
     subsection (b);
       ``(2) such amounts as are appropriated to the Fund under 
     section 196; and
       ``(3) any interest earned on investment of amounts in the 
     Fund under subsection (d).
       ``(b) Transfers to Fund.--There are appropriated to the 
     Fund amounts equivalent to amounts collected as receipts and 
     received in the Treasury from the sale, exchange, or other 
     disposition of gasoline or fuel from the Reserve.
       ``(c) Expenditures From Fund.--On request by the Secretary 
     and without the need for further appropriation, the Secretary 
     of the Treasury shall transfer from the Fund to the Secretary 
     such amounts as the Secretary determines are necessary to 
     carry out activities under this part, to remain available 
     until expended.
       ``(d) Investment of Amounts.--
       ``(1) In general.--The Secretary of the Treasury shall 
     invest such portion of the Fund as is not, in the judgment of 
     the Secretary of the Treasury, required to meet current 
     withdrawals.
       ``(2) Interest-bearing obligations.--Investments may be 
     made only in interest-bearing obligations of the United 
     States.
       ``(3) Acquisition of obligations.--For the purpose of 
     investments under paragraph (1), obligations may be 
     acquired--
       ``(A) on original issue at the issue price; or
       ``(B) by purchase of outstanding obligations at the market 
     price.
       ``(4) Sale of obligations.--Any obligation acquired by the 
     Fund may be sold by the Secretary of the Treasury at the 
     market price.
       ``(5) Credits to fund.--The interest on, and the proceeds 
     from the sale or redemption of, any obligations held in the 
     Fund shall be credited to and form a part of the Fund.
       ``(e) Transfers of Amounts.--
       ``(1) In general.--The amounts required to be transferred 
     to the Fund under this section shall be transferred at least 
     monthly from the general fund of the Treasury to the Fund on 
     the basis of estimates made by the Secretary of the Treasury.
       ``(2) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.

     ``SEC. 196. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary to carry out this part, to remain available until 
     expended.''.

     SEC. 3. CONFORMING AMENDMENTS.

       The table of contents for title I of the Energy Policy and 
     Conservation Act (42 U.S.C. 6201 note) is amended by striking 
     the matter relating to part D and inserting the following:

              ``Part D--Northeast Home Heating Oil Reserve

``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast home heating oil reserve account.
``Sec. 185. Exemptions.
``Sec. 186. Authorization of appropriations.

             ``Part E--Strategic Gasoline and Fuel Reserve

``Sec. 191. Definitions.
``Sec. 192. Establishment.
``Sec. 193. Release of gasoline and fuel.
``Sec. 194. Reports.
``Sec. 195. Strategic Gasoline and Fuel Reserve Fund.

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``Sec. 196. Authorization of appropriations.

                          ``Part F--Expiration

``Sec. 199. Expiration.''.

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