(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 reg-
ular unleaded gasoline. 
(2) RESERVE SITES.—Not later than 1 year 
after the date of enactment of this Act, the Sec-
retary 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 loca-
tions selected by the Secretary. 
(3) SECURITY.—In establishing the GAS Re-
serve under this section, the Secretary shall obtain 
the concurrence of the Secretary of Homeland Secu-
rity 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 Se-
curity, 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 Sec-
retary shall sell gasoline from the GAS Reserve if—
(1) the Governor of a State transmits to the 
Secretary a written request for GAS Reserve emer-
gency sales assistance which—
(A) cites a physical disruption in the sys-
tem 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 Gov-
ernor’s State; 
(B) GAS Reserve emergency sales would 
not have an adverse effect on the long-term eco-
nomic 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 sub-
section (d)(1) within 10 days of receipt of a request 
by—
(A) approving the request; 
(B) denying the request; or 
(C) requesting additional supporting infor-
mation. 
(2) APPROVAL.—If the Secretary approves a re-
quest, 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 deci-
sion. 
(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 Sec-
retary requests additional information and the Gov-
ernor 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 in-
formation. 
(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 qual-
ity; 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, de-
scribing 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.
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