I 

108TH CONGRESS 

1ST SESSION H. R. 3023

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. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 5, 2003

Mr. BROWN of Ohio (for himself, Mrs. JONES of Ohio, Mr. MICHAUD, and 

Mr. KLECZKA) introduced the following bill; which was referred to the 

Committee on Energy and Commerce 

A BILL

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Gasoline Availablity 

5 Stabilization (GAS) Reserves Act’’. 

6 SEC. 2. GASOLINE AVAILABILITY STABILIZATION RESERVE. 

7 (a) ESTABLISHMENT.—
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1 (1) AUTHORITY.—The Secretary shall establish 

2 a Gasoline Availability Stabilization Reserve (in this 

3 section referred to as the ‘‘GAS Reserve’’) system 

4 with a total capacity of 20,000,000 barrels of reg5 ular unleaded gasoline. 

6 (2) RESERVE SITES.—Not later than 1 year 

7 after the date of enactment of this Act, the Sec8 retary shall determine a site for one GAS Reserve 

9 each in the Northeast and Midwest regions of the 

10 United States, and one in California. Such reserve 

11 sites shall be operational within 2 years after the 

12 date of enactment of this Act. The Secretary may 

13 establish two additional GAS Reserve sites at loca14 tions selected by the Secretary. 

15 (3) SECURITY.—In establishing the GAS Re16 serve under this section, the Secretary shall obtain 

17 the concurrence of the Secretary of Homeland Secu18 rity with respect to physical design security and 

19 operational security. 

20 (b) TRANSPORTATION PLAN.—Not later than 2 years 

21 after the date of enactment of this Act, the Secretary shall 

22 transmit to the Congress, the Secretary of Homeland Se23 curity, and the Governor of each State in which a reserve 

24 will be sited a plan for the transportation of the contents 
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1 of the GAS Reserve under this section to consumers in 

2 the event of an emergency sale under subsection (d). 

3 (c) FILL DATE.—The Secretary shall complete the 

4 process of filling the GAS Reserve under this section by 

5 March 1, 2006. 

6 (d) EMERGENCY SALE AUTHORIZATION.—The Sec7 retary shall sell gasoline from the GAS Reserve if—

8 (1) the Governor of a State transmits to the 

9 Secretary a written request for GAS Reserve emer10 gency sales assistance which—

11 (A) cites a physical disruption in the sys12 tem supplying gasoline to the Governor’s State; 

13 and 

14 (B) demonstrates to the satisfaction of the 

15 Secretary that such disruption is likely to result 

16 in price volatility for retail gasoline markets in 

17 the Governor’s State; and 

18 (2) the Secretary determines that—

19 (A) GAS Reserve emergency sales would 

20 mitigate gasoline price volatility in the Gov21 ernor’s State; 

22 (B) GAS Reserve emergency sales would 

23 not have an adverse effect on the long-term eco24 nomic viability of retail gasoline markets in the 

25 Governor’s State and adjacent States; 
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1 (C) the physical disruption described in 

2 paragraph (1)(A) is likely to result in general 

3 economic disruption in the Governor’s State 

4 and adjacent States; and 

5 (D) GAS Reserve emergency sales would 

6 serve to stabilize gasoline prices, not suppress 

7 prices below long-term market trend levels. 

8 (e) PROCEDURE.—

9 (1) SECRETARY’S RESPONSE.—The Secretary 

10 shall respond to a request transmitted under sub11 section (d)(1) within 10 days of receipt of a request 

12 by—

13 (A) approving the request; 

14 (B) denying the request; or 

15 (C) requesting additional supporting infor16 mation. 

17 (2) APPROVAL.—If the Secretary approves a re18 quest, the Secretary shall provide to the Governor a 

19 written notice of approval that includes—

20 (A) a description of the GAS Reserve 

21 emergency sale plan; and 

22 (B) an explanation of the Secretary’s deci23 sion. 

24 (3) DENIAL.—If the Secretary denies a request, 

25 the Secretary shall provide to the Governor a written 
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1 notice of denial that includes an explanation of the 

2 Secretary’s decision. 

3 (4) ADDITIONAL INFORMATION.—If the Sec4 retary requests additional information and the Gov5 ernor does not respond for a period of 10 days, the 

6 Governor’s request shall be denied. If the Governor 

7 provides all requested additional information in 

8 timely manner, the Secretary shall approve or deny 

9 the request within 10 days after receipt of such in10 formation. 

11 (f) MAINTENANCE TRANSACTIONS.—The Secretary is 

12 authorized to conduct purchases and sales of gasoline at 

13 wholesale for maintenance of the GAS Reserve system. In 

14 conducting maintenance transactions, the Secretary shall 

15 ensure that—

16 (1) the GAS Reserve is available to respond to 

17 emergencies during periods of the annual gasoline 

18 market cycle when the Secretary expects demand to 

19 be highest; 

20 (2) the GAS Reserve does not contain gasoline 

21 for a period of time so long as to jeopardize its qual22 ity; and 

23 (3) maintenance transactions are timed so as to 

24 minimize their impact on the retail price of gasoline. 
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1 (g) REPORTS.—Not later than November 1 of each 

2 year, the Secretary shall transmit to the Committee on 

3 Energy and Commerce of the House of Representatives 

4 and to the Committee on Energy and Natural Resources 

5 of the Senate a report on the GAS Reserve program, de6 scribing the physical status of GAS Reserve facilities, the 

7 program’s financial outlook, and the disposition of any 

8 emergency sales request received and any emergency sales 

9 conducted since the last report, and recommending any 

10 additional appropriations or technical changes appropriate 

11 to improve the program’s operation. 

12 (h) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated to the Secretary such 

14 sums as may be necessary for construction and operation 

15 of the GAS Reserve for fiscal years 2004 through 2009.

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