II 

110TH CONGRESS 

1ST SESSION S. 1028 

To require the Secretary of Energy to establish a strategic refinery reserve, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 29, 2007 

Mr. KOHL (for himself and Mrs. FEINSTEIN) introduced the following bill; 

which was read twice and referred to the Committee on Energy and Natural Resources 

A BILL 

To require the Secretary of Energy to establish a strategic 

refinery reserve, and for other purposes. 

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 ‘‘Strategic Refinery Re5 serve Act of 2007’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) RESERVE.—The term ‘‘Reserve’’ means the 

9 Strategic Refinery Reserve established under section 

10 3. 


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1 (2) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Energy. 

3 SEC. 3. STRATEGIC REFINERY RESERVE. 

4 (a) ESTABLISHMENT.— 

5 (1) IN GENERAL.—The Secretary shall establish 

6 and operate a Strategic Refinery Reserve in the 

7 United States. 

8 (2) AUTHORITIES.—To carry out this section, 

9 the Secretary may contract for— 

10 (A) the construction or operation of new 

11 refineries; or 

12 (B) the acquisition or reopening of closed 

13 refineries. 

14 (b) OPERATION.—The Secretary shall operate the 

15 Reserve— 

16 (1) to provide petroleum products to— 

17 (A) the Federal Government (including the 

18 Department of Defense); and 

19 (B) any State governments and political 

20 subdivisions of States that opt to purchase re21 fined petroleum products from the Reserve; and 

22 (2) to provide petroleum products to the general 

23 public during any period described in subsection (c). 

24 (c) EMERGENCY PERIODS.—The Secretary shall 

25 make petroleum products from the Reserve available 


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1 under subsection (b)(2) only if the President determines 

2 that— 

3 (1) there is a severe energy supply interruption 

4 (as defined in section 3 of the Energy Policy and 

5 Conservation Act (42 U.S.C. 6202)); or 

6 (2)(A) there is a regional petroleum product 

7 supply shortage of significant scope and duration; 

8 and 

9 (B) action taken under subsection (b)(2) would 

10 directly and significantly assist in reducing the ad11 verse impact of the shortage. 

12 (d) LOCATIONS.—In determining the location of a re13 finery for inclusion in the Reserve, the Secretary shall take 

14 into account— 

15 (1) the impact of the refinery on the local com16 munity, as determined after requesting and review17 ing any comments from State and local governments 

18 and the public; 

19 (2) regional vulnerability to— 

20 (A) natural disasters; and 

21 (B) terrorist attacks; 

22 (3) the proximity of the refinery to the Stra23 tegic Petroleum Reserve; 

24 (4) the accessibility of the refinery to energy in25 frastructure and Federal facilities (including faciliVerDate Aug 31 2005 23:43 Mar 30, 2007 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1028.IS S1028

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1 ties under the jurisdiction of the Department of De2 fense); 

3 (5) the need to minimize adverse public health 

4 and environmental impacts; and 

5 (6) the energy needs of the Federal Government 

6 (including the Department of Defense). 

7 (e) INCREASED CAPACITY.—The Secretary shall en8 sure that refineries in the Reserve are designed to provide 

9 a rapid increase in production capacity during periods de10 scribed in subsection (c). 

11 (f) IMPLEMENTATION PLAN.— 

12 (1) IN GENERAL.—Not later than 180 days 

13 after the date of enactment of this Act, the Sec14 retary shall submit to Congress a plan for the estab15 lishment and operation of the Reserve under this 

16 section. 

17 (2) REQUIREMENTS.—The plan required under 

18 paragraph (1) shall— 

19 (A)(i)(I) provide for, within 2 years after 

20 the date of enactment of this Act, a capacity 

21 within the Reserve equal to 5 percent of the 

22 total United States daily demand for gasoline, 

23 diesel, and aviation fuel; and 

24 (II) provide for a capacity within the Re25 serve such that not less than 75 percent of the 


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1 gasoline and diesel fuel produced by the Re2 serve contain an average of 10 percent renew3 able fuel (as defined in 211(o)(1) of the Clean 

4 Air Act (42 U.S.C. 7545(o)(1)); or 

5 (ii) if the Secretary finds that achieving 

6 the capacity described in subclause (I) or (II) 

7 of clause (i) is not feasible within 2 years after 

8 the date of enactment of this Act, include— 

9 (I) an explanation from the Secretary 

10 of the reasons why achieving the capacity 

11 within the timeframe is not feasible; and 

12 (II) provisions for achieving the re13 quired capacity as soon as practicable; and 

14 (B) provide for adequate delivery systems 

15 capable of providing Reserve product to the en16 tities described in subsection (b)(1). 

17 (g) COORDINATION.—The Secretary shall carry out 

18 this section in coordination with the Secretary of Defense. 

19 (h) COMPLIANCE WITH FEDERAL ENVIRONMENTAL

20 REQUIREMENTS.—Nothing in this section affects any re21 quirement to comply with Federal or State environmental 

22 or other laws. 

23 SEC. 4. REPORTS ON REFINERY CLOSURES. 

24 (a) REPORTS TO SECRETARY.— 


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1 (1) IN GENERAL.—Not later than 180 days be2 fore permanently closing a refinery in the United 

3 States, the owner or operator of the refinery shall 

4 submit to the Secretary notice of the closing. 

5 (2) REQUIREMENTS.—The notice required 

6 under paragraph (1) with respect to a refinery to be 

7 closed shall include an explanation of the reasons for 

8 the closing of the refinery. 

9 (b) REPORTS TO CONGRESS.—The Secretary shall, in 

10 consultation with the Secretary of Defense, the Adminis11 trator of the Environmental Protection Agency, and the 

12 Federal Trade Commission and as soon as practicable 

13 after receipt of a report under subsection (a), submit to 

14 Congress— 

15 (1) the report; and 

16 (2) an analysis of the effects of the proposed 

17 closing covered by the report on— 

18 (A) in accordance with the Clean Air Act 

19 (42 U.S.C. 7401 et seq.), supplies of clean fuel; 

20 (B) petroleum product prices; 

21 (C) competition in the refining industry; 

22 (D) the economy of the United States; 

23 (E) regional economies; 

24 (F) regional supplies of refined petroleum 

25 products; 


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1 (G) the supply of fuel to the Department 

2 of Defense; and 

3 (H) energy security. 

Æ 


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