To provide for the establishment of a Natural Gas Reserve.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Natural Gas Reserve Act of 2001''.

SEC. 2. NATURAL GAS RESERVE.

    Title I of the Energy Policy and Conservation Act is amended by--
            (1) redesignating part E as part F;
            (2) redesignating section 191 as section 198; and
            (3) inserting after part D the following new part E:

                     ``Part E--Natural Gas Reserve

                            ``establishment

    ``Sec. 191. (a) Authority.--Notwithstanding any other provision of 
this Act, the Secretary may establish, maintain, and operate a Natural 
Gas Reserve. The Reserve established under this part is not a component 
of the Strategic Petroleum Reserve established under part B of this 
title.
    ``(b) Definition.--For the purposes of this part, the term `natural 
gas' has the meaning given that term in section 2(1) of the Natural Gas 
Policy Act of 1978 (15 U.S.C. 3301(1)).

                              ``authority

    ``Sec. 192. To the extent necessary or appropriate to carry 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 (including exchange of 
        petroleum products from the Strategic Petroleum Reserve or 
        received as royalty from Federal lands), lease, or otherwise, 
        natural gas for storage in the Natural Gas Reserve;
            ``(4) store natural gas in facilities not owned by the 
        United States; and
            ``(5) sell, exchange, or otherwise dispose of natural gas 
        from the Natural Gas Reserve, including to maintain the quality 
        or quantity of the natural gas in the Reserve or to maintain 
        the operational capability of the Reserve.

                     ``conditions for release; plan

    ``Sec. 193. (a) Finding.--The Secretary may sell products from the 
Natural Gas Reserve upon a finding that there is a natural gas supply 
shortage.
    ``(b) Release of Natural Gas.--After consultation with the natural 
gas industry, the Secretary shall determine procedures governing the 
release of natural gas from the Natural Gas Reserve. The procedures 
shall provide that--
            ``(1) the Secretary may--
                    ``(A) sell natural gas from the Reserve through a 
                competitive process; or
                    ``(B) enter into exchange agreements described in 
                section 192(3);
            ``(2) in all such sales or exchanges, the Secretary shall 
        receive revenue or its equivalent that provides the Department 
        with fair market value;
            ``(3) at no time may the natural gas be sold or exchanged 
        resulting in a loss of revenue or value to the United States; 
        and
            ``(4) the Secretary shall only sell or dispose of the 
        natural gas in the Reserve to entities customarily engaged in 
        the sale and distribution of natural gas.
    ``(c) Plan.--Within 45 days after the date of the enactment of this 
section, the Secretary shall transmit to the Congress a plan 
describing--
            ``(1) the acquisition of storage and related facilities or 
        storage services for the Natural Gas Reserve, including the 
        potential use of storage facilities not currently in use;
            ``(2) the acquisition of natural gas for storage in the 
        Natural Gas Reserve;
            ``(3) the anticipated methods of disposition of natural gas 
        from the Natural Gas Reserve;
            ``(4) the estimated costs of establishment, maintenance, 
        and operation of the Natural Gas Reserve;
            ``(5) efforts the Department will take to minimize any 
        potential need for future drawdowns and ensure that 
        distributors and importers are not discouraged from maintaining 
        and increasing supplies; and
            ``(6) actions to ensure quality of the natural gas in the 
        Natural Gas Reserve.

                     ``natural gas reserve account

    ``Sec. 194. (a) Establishment.--Upon a decision of the Secretary of 
Energy to establish a Natural Gas Reserve under this part, the 
Secretary of the Treasury shall establish in the Treasury of the United 
States an account known as the `Natural Gas Reserve Account' (referred 
to in this section as the `Account').
    ``(b) Deposits.--The Secretary of the Treasury shall deposit in the 
Account any amounts appropriated to the Account and any receipts from 
the sale, exchange, or other disposition of natural gas from the 
Natural Gas Reserve.
    ``(c) Availability.--The Secretary of Energy may obligate amounts 
in the Account to carry out activities under this part without the need 
for further appropriation, and amounts available to the Secretary of 
Energy for obligation under this section shall remain available without 
fiscal year limitation.

                              ``exemptions

    ``Sec. 195. An action taken under this part is not subject to the 
rulemaking requirements of section 523 of this Act, section 501 of the 
Department of Energy Organization Act, or section 553 of title 5, 
United States Code.''.

Summary: Natural Gas Reserve Act of 2001 - Amends the Energy Policy and Conservation Act to authorize the Secretary of Energy to establish and operate a Natural Gas Reserve (NGR), which shall not be deemed to be a component of the Strategic Petroleum Reserve. Sets forth implementation authority for natural gas release and sales predicated upon a finding that a natural gas supply shortage exists. Restricts such sales to entities customarily engaged in natural gas sale and distribution. Instructs the Secretary of the Treasury to establish a Natural Gas Reserve Account to serve as depository for receipts from disposition of NGR natural gas. Authorizes the Secretary of Energy to obligate amounts in such Account without the need for further appropriation. Retains the availability of such funds for obligation without fiscal year limitation.