Sec. 2. Western refined fuel storage reserve study
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Not later than 6 months after the date of enactment of this Act, the Secretary of Energy, in consultation with the Secretary of Homeland Security and the Administrator of the Federal Emergency Management Agency, and other stakeholders, shall complete a study, subject to subsection (b), to guide the establishment of a Western refined fuel storage reserve in— one of the Western States; a salt cavern formation; and to the maximum extent practicable, a centralized location among the Western States with immediate and reliable connectivity to existing rail and highway infrastructure. The study under subsection
(a)shall include— an examination of— potential locations that a Western refined fuel storage reserve may be established, taking into consideration the unique geography of the West; specific infrastructure requirements for the establishment and operation of a Western refined fuel storage reserve, taking into consideration the lack of pipeline infrastructure and connectivity between refinery hubs and major cities within the Western States; the vulnerability of the refined fuel supply chains to natural or manmade disasters that result in an extended disruption of refinery operations within the Western States; the economic feasibility of establishing, operating, and maintaining a Western refined fuel storage reserve; existing salt cavern formations in Western States that are actively hosting or could host a refined fuel storage reserve; and the quantity and scale of existing refined fuel storage reserves containing petroleum products within the Western States; and the identification of potential additional benefits to the energy security or emergency preparedness of the United States by establishing a Western refined fuel storage reserve, including— economic benefits of any identified potential Western refined fuel storage reserve site; and emergency response advantages of an identified refined fuel storage reserve. Not later than 60 days after the date on which the Secretary of Energy completes the study under subsection (a), the Secretary of Energy shall, in consultation with the Secretary of Homeland Security and the Administrator of the Federal Emergency Management Agency, submit to Congress a report, based on the results of such study— recommending, with respect to authorizing and funding the establishment of a Western refined fuel storage reserve as a part of the Strategic Petroleum Reserve system— regulatory requirements for the potential establishment of such refined fuel storage reserve; a location for established such refined fuel storage reserve; the utilization of existing private sector facilities, if applicable, for the establishment of such refined fuel storage reserve; how such a refined fuel storage reserve should be operated, such as what fuels and quantities should be stored, fuel purchases, conditions triggering fuel withdrawals, and any other operational recommendations; and strategies for partnering with other Federal agencies, States, and local governments to provide fuel storage for emergency uses in the Western United States; and on the projected costs of establishing a Western refined fuel storage reserve. In this section: The term petroleum product has the meaning given such term in section 3 of the Energy Policy and Conservation Act ( 42 U.S.C. 6202 ). The term refined fuel storage reserve means a storage facility that— is a salt cavern formation; and stores refined petroleum products. The term storage facility has the meaning given such term in section 152 of the Energy Policy and Conservation Act ( 42 U.S.C. 6232 ).
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