I 
115TH CONGRESS 
1ST SESSION H. R. 3788 
To amend the Energy Policy and Conservation Act to provide for a Northeast 
Gasoline Supply Reserve, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 14, 2017 
Mr. PALLONE (for himself, Mr. KENNEDY, Mr. ENGEL, Mr. TONKO, Mr. 
WELCH, Ms. SHEA-PORTER, Mr. MOULTON, Mr. CAPUANO, Mr. SIRES, 
Mr. KEATING, Mr. MICHAEL F. DOYLE of Pennsylvania, Ms. KUSTER of 
New Hampshire, Mr. PASCRELL, Mr. NORCROSS, Mrs. WATSON COLE-
MAN, Mr. PAYNE, and Mr. MCGOVERN) introduced the following bill; 
which was referred to the Committee on Energy and Commerce 
A BILL 
To amend the Energy Policy and Conservation Act to provide 
for a Northeast Gasoline Supply Reserve, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Northeast Gasoline 
Supply Reserve Act’’. 
SEC. 2. NORTHEAST GASOLINE SUPPLY RESERVE. 
(a) NORTHEAST GASOLINE SUPPLY RESERVE.—Title 
I of the Energy Policy and Conservation Act (42 U.S.C. 
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6201 et seq.) is amended by adding at the end the fol-
lowing: 
‘‘PART E—NORTHEAST GASOLINE SUPPLY 
RESERVE 
‘‘SEC. 191. DEFINITIONS. 
‘‘In this part, the following definitions apply: 
‘‘(1) REFINED
PETROLEUM
PRODUCT.—The 
term ‘refined petroleum product’ means gasoline and 
such other products as the Secretary determines, by 
rule, appropriate. 
‘‘(2) RESERVE.—The term ‘Reserve’ means the 
Northeast Gasoline Supply Reserve established 
under this part. 
‘‘(3) 
NORTHEAST.—The 
term 
‘Northeast’ 
means the States of New Jersey, New York, 
Vermont, Pennsylvania, Connecticut, Rhode Island, 
Massachusetts, Maine, New Hampshire, and any 
other contiguous State that the Secretary determines 
appropriate. 
‘‘SEC. 192. ESTABLISHMENT. 
‘‘(a) IN GENERAL.—The Secretary shall establish, 
maintain, and operate in the Northeast a Northeast Gaso-
line Supply Reserve, which shall be a component of the 
Strategic Petroleum Reserve established under part B of 
this title. 
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‘‘(b) LIMITATION.—A Reserve established under this 
part shall contain no more than 1 million barrels of refined 
petroleum products. 
‘‘(c) APPLICATION OF PROVISIONS.—Except as oth-
erwise provided in this part, the authorities and require-
ments of part B of this title shall apply to the Reserve. 
‘‘SEC. 193. CONDITIONS FOR RELEASE; PLAN. 
‘‘(a) SALE OF PRODUCTS.—The Secretary may sell 
refined petroleum products from the Reserve upon a find-
ing by the President that there exists, or is likely to exist 
within the next 30 days, a severe energy supply interrup-
tion. Such a finding may be made only if the President 
determines that— 
‘‘(1) a dislocation in the refined petroleum 
product market has resulted or is likely to result 
from such interruption; or 
‘‘(2) a circumstance, other than that described 
in paragraph (1), exists that constitutes a regional 
supply shortage of significant scope and duration 
and that action taken under this section would assist 
directly and significantly in reducing the adverse im-
pact of such shortage. 
‘‘(b) RELEASE OF PETROLEUM.—After consultation 
with potentially affected parties, the Secretary shall deter-
mine procedures governing the release of refined petro-
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leum products from the Reserve. The procedures shall pro-
vide that— 
‘‘(1) the Secretary may— 
‘‘(A) sell refined petroleum products from 
the Reserve through a competitive process; or 
‘‘(B) enter into exchange agreements for 
the refined petroleum products that results in 
the Secretary receiving a greater volume of such 
products as repayment than the volume pro-
vided to the acquirer; 
‘‘(2) in all sales or exchanges described in para-
graph (1), the Secretary shall receive revenue or its 
equivalent in refined petroleum products that pro-
vides the Department with fair market value; 
‘‘(3) at no time may refined petroleum products 
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 
refined petroleum products in the Reserve to entities 
customarily engaged in the sale and distribution of 
such products. 
‘‘(c) PLAN.—Not later than 60 days after the date 
of the enactment of this section, the Secretary shall trans-
mit to the President and, if the President approves, to 
Congress a plan describing— 
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‘‘(1) the proposed acquisition of storage and re-
lated facilities or storage services for the Reserve, in-
cluding the potential use of storage facilities not cur-
rently in use; 
‘‘(2) the proposed acquisition of refined petro-
leum products for storage in the Reserve; 
‘‘(3) the anticipated methods of disposition of 
refined petroleum products from the Reserve; 
‘‘(4) the estimated costs of establishment, main-
tenance, and operation of the Reserve; 
‘‘(5) efforts the Department will take to mini-
mize any potential need for future drawdowns and 
ensure that distributors and importers are not dis-
couraged from maintaining and increasing supplies 
to the Northeast; and 
‘‘(6) actions to be taken to ensure quality of the 
refined petroleum products in the Reserve. 
‘‘SEC. 194. PRODUCTS FOR STORAGE IN THE RESERVE. 
‘‘(a) IN GENERAL.—The Secretary may acquire, 
place in storage, transport, or exchange refined petroleum 
products acquired by purchase or exchange. 
‘‘(b) OBJECTIVES.—The Secretary shall, to the great-
est extent practicable, acquire refined petroleum products 
for the Reserve in a manner consonant with the following 
objectives: 
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‘‘(1) Minimization of the cost of the Reserve. 
‘‘(2) Minimization of the Nation’s vulnerability 
to a severe energy supply interruption. 
‘‘(3) Minimization of the impact of an acquisi-
tion of refined petroleum products on supply levels 
and market forces. 
‘‘(4) Encouragement of competition in the pe-
troleum industry. 
‘‘(c) PROCEDURES.—The Secretary shall develop, 
with public notice and opportunity for comment, proce-
dures consistent with the objectives of this section to ac-
quire refined petroleum products for the Reserve. Such 
procedures shall take into account the need to— 
‘‘(1) maximize overall domestic supply of re-
fined petroleum products (including quantities stored 
in private sector inventories); 
‘‘(2) avoid incurring excessive cost or appre-
ciably affecting the price of refined petroleum prod-
ucts to consumers; 
‘‘(3) minimize the costs to the Department of 
Energy in acquiring such refined petroleum prod-
ucts; 
‘‘(4) protect national security; 
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‘‘(5) avoid adversely affecting current and fu-
tures prices, supplies, and inventories of refined pe-
troleum products; and 
‘‘(6) address such other factors that the Sec-
retary determines to be appropriate. 
‘‘(d) SEVERE ENERGY SUPPLY DISRUPTION.—If the 
Secretary finds that a severe energy supply interruption 
may be imminent, the Secretary may suspend the acquisi-
tion of refined petroleum products for the Reserve and 
may sell any refined petroleum product acquired for, and 
in transit to, the Reserve.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
The table of sections for title I of the Energy Policy and 
Conservation Act is amended by striking the items relating 
to the second part D, including section 181 of such part, 
and inserting the following: 
‘‘PART E—NORTHEAST GASOLINE SUPPLY RESERVE 
‘‘Sec. 191. Definitions. 
‘‘Sec. 192. Establishment. 
‘‘Sec. 193. Conditions for release; plan. 
‘‘Sec. 194. Products for storage in the Reserve.’’. 
Æ 
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