Title: Northeast Gasoline Supply Reserve Act
Policy area: Energy

Summary:
Northeast Gasoline Supply Reserve Act
This bill requires the Department of Energy (DOE)	to establish, maintain, and operate a Northeast Gasoline Supply Reserve of no more than 1 million barrels as part of the Strategic Petroleum Reserve. (The Northeast means the states of New Jersey, New York, Vermont, Pennsylvania, Connecticut, Rhode Island, Massachusetts, Maine, New Hampshire, and any other contiguous state that DOE determines appropriate.)
The bill authorizes DOE to sell refined petroleum products from the reserve if the President finds that there exists, or is likely to exist within the next 30 days, a severe energy supply interruption.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3788 Introduced in House (IH)]

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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 Coleman, 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 Representatives 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. 6201 et seq.) is amended by 
adding at the end the following:

              ``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 Gasoline Supply Reserve, which 
shall be a component of the Strategic Petroleum Reserve established 
under part B of this title.
    ``(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 otherwise provided in 
this part, the authorities and requirements 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 finding by the President that there 
exists, or is likely to exist within the next 30 days, a severe energy 
supply interruption. 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 impact of such shortage.
    ``(b) Release of Petroleum.--After consultation with potentially 
affected parties, the Secretary shall determine procedures governing 
the release of refined petroleum products from the Reserve. The 
procedures shall provide 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 provided to the acquirer;
            ``(2) in all sales or exchanges described in paragraph (1), 
        the Secretary shall receive revenue or its equivalent in 
        refined petroleum products that provides 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 transmit to the President and, if 
the President approves, to Congress a plan describing--
            ``(1) the proposed acquisition of storage and related 
        facilities or storage services for the Reserve, including the 
        potential use of storage facilities not currently in use;
            ``(2) the proposed acquisition of refined petroleum 
        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, maintenance, 
        and operation of the 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 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 greatest extent 
practicable, acquire refined petroleum products for the Reserve in a 
manner consonant with the following objectives:
            ``(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 acquisition of 
        refined petroleum products on supply levels and market forces.
            ``(4) Encouragement of competition in the petroleum 
        industry.
    ``(c) Procedures.--The Secretary shall develop, with public notice 
and opportunity for comment, procedures consistent with the objectives 
of this section to acquire refined petroleum products for the Reserve. 
Such procedures shall take into account the need to--
            ``(1) maximize overall domestic supply of refined petroleum 
        products (including quantities stored in private sector 
        inventories);
            ``(2) avoid incurring excessive cost or appreciably 
        affecting the price of refined petroleum products to consumers;
            ``(3) minimize the costs to the Department of Energy in 
        acquiring such refined petroleum products;
            ``(4) protect national security;
            ``(5) avoid adversely affecting current and futures prices, 
        supplies, and inventories of refined petroleum products; and
            ``(6) address such other factors that the Secretary 
        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 acquisition 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.''.
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