To authorize the construction and operation of regional reserves of gasoline, for use as a response to acute gasoline price increases resulting from accidents or other physical disruptions to regional supplies of gasoline.

Summary: Gasoline Availablity Stabilization (GAS) Reserves Act - Directs the Secretary [of Energy] to: (1) establish a Gasoline Availability Stabilization Reserve (GAS Reserve) system with a total capacity of 20 million barrels of regular unleaded gasoline; and (2) determine a site for one GAS Reserve each in the Northeast and Midwest regions and one in California, to be operational within two years after the date of enactment of this Act.

Instructs the Secretary to: (1) transmit to Congress, the Secretary of Homeland Security, and the Governor of each State in which a reserve will be sited a plan for the transportation of the contents of the GAS Reserve to consumers in the event of an emergency sale; and (2) complete the process of filling the GAS Reserve by March 1, 2006.

Prescribes procedural guidelines for emergency sales by the Secretary from the GAS Reserve upon written request from the Governor of a State for GAS Reserve emergency sales assistance owing to a physical disruption in the gasoline supplies that is likely to result in price volatility for retail gasoline in the Governor's State.

Authorizes the Secretary to conduct purchases and sales of gasoline at wholesale for maintenance of the GAS Reserve system.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gasoline Availablity Stabilization 
(GAS) Reserves Act''.

SEC. 2. GASOLINE AVAILABILITY STABILIZATION RESERVE.

    (a) Establishment.--
            (1) Authority.--The Secretary shall establish a Gasoline 
        Availability Stabilization Reserve (in this section referred to 
        as the ``GAS Reserve'') system with a total capacity of 
        20,000,000 barrels of regular unleaded gasoline.
            (2) Reserve sites.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall determine a site for 
        one GAS Reserve each in the Northeast and Midwest regions of 
        the United States, and one in California. Such reserve sites 
        shall be operational within 2 years after the date of enactment 
        of this Act. The Secretary may establish two additional GAS 
        Reserve sites at locations selected by the Secretary.
            (3) Security.--In establishing the GAS 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.
    (b) Transportation Plan.--Not later than 2 years after the date of 
enactment of this Act, the Secretary shall transmit to the Congress, 
the Secretary of Homeland Security, and the Governor of each State in 
which a reserve will be sited a plan for the transportation of the 
contents of the GAS Reserve under this section to consumers in the 
event of an emergency sale under subsection (d).
    (c) Fill Date.--The Secretary shall complete the process of filling 
the GAS Reserve under this section by March 1, 2006.
    (d) Emergency Sale Authorization.--The Secretary shall sell 
gasoline from the GAS Reserve if--
            (1) the Governor of a State transmits to the Secretary a 
        written request for GAS Reserve emergency sales assistance 
        which--
                    (A) cites a physical disruption in the system 
                supplying gasoline to the Governor's State; and
                    (B) demonstrates to the satisfaction of the 
                Secretary that such disruption is likely to result in 
                price volatility for retail gasoline markets in the 
                Governor's State; and
            (2) the Secretary determines that--
                    (A) GAS Reserve emergency sales would mitigate 
                gasoline price volatility in the Governor's State;
                    (B) GAS Reserve emergency sales would not have an 
                adverse effect on the long-term economic viability of 
                retail gasoline markets in the Governor's State and 
                adjacent States;
                    (C) the physical disruption described in paragraph 
                (1)(A) is likely to result in general economic 
                disruption in the Governor's State and adjacent States; 
                and
                    (D) GAS Reserve emergency sales would serve to 
                stabilize gasoline prices, not suppress prices below 
                long-term market trend levels.
    (e) Procedure.--
            (1) Secretary's response.--The Secretary shall respond to a 
        request transmitted under subsection (d)(1) within 10 days of 
        receipt of a request by--
                    (A) approving the request;
                    (B) denying the request; or
                    (C) requesting additional supporting information.
            (2) Approval.--If the Secretary approves a request, the 
        Secretary shall provide to the Governor a written notice of 
        approval that includes--
                    (A) a description of the GAS Reserve emergency sale 
                plan; and
                    (B) an explanation of the Secretary's decision.
            (3) Denial.--If the Secretary denies a request, the 
        Secretary shall provide to the Governor a written notice of 
        denial that includes an explanation of the Secretary's 
        decision.
            (4) Additional information.--If the Secretary requests 
        additional information and the Governor does not respond for a 
        period of 10 days, the Governor's request shall be denied. If 
        the Governor provides all requested additional information in 
        timely manner, the Secretary shall approve or deny the request 
        within 10 days after receipt of such information.
    (f) Maintenance Transactions.--The Secretary is authorized to 
conduct purchases and sales of gasoline at wholesale for maintenance of 
the GAS Reserve system. In conducting maintenance transactions, the 
Secretary shall ensure that--
            (1) the GAS Reserve is available to respond to emergencies 
        during periods of the annual gasoline market cycle when the 
        Secretary expects demand to be highest;
            (2) the GAS Reserve does not contain gasoline for a period 
        of time so long as to jeopardize its quality; and
            (3) maintenance transactions are timed so as to minimize 
        their impact on the retail price of gasoline.
    (g) Reports.--Not later than November 1 of each year, the Secretary 
shall transmit to the Committee on Energy and Commerce of the House of 
Representatives and to the Committee on Energy and Natural Resources of 
the Senate a report on the GAS Reserve program, describing the physical 
status of GAS Reserve facilities, the program's financial outlook, and 
the disposition of any emergency sales request received and any 
emergency sales conducted since the last report, and recommending any 
additional appropriations or technical changes appropriate to improve 
the program's operation.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary for 
construction and operation of the GAS Reserve for fiscal years 2004 
through 2009.