Strategic Petroleum Reserve Reform Act

Floor Speech

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Mr. PALLONE. Madam Speaker, I yield myself the balance of my time.

Madam Speaker, I rise in support of H.R. 6511, the Strategic Petroleum Reserve Reform Act. This bill would set up a pilot program to facilitate the leasing of unused storage space in the Strategic Petroleum Reserve, or SPR, while attempting to ensure that the government and taxpayers benefit from these leases. This is a worthy cause, and I commend Representatives Barton and Rush for their efforts.

In recent years, Congress has turned to the SPR repeatedly as an offset for deficits, transportation funding, and other items. In fact, it has been used far more in recent years for those purposes than for energy security. And these SPR sales, which will occur over the next several years, will free up a great deal of physical space in the reserve. This bill puts that empty space to good use.

The bill is part of our committee's ongoing efforts to modernize the SPR. Going forward, we need to rethink its whole structure, including exploring the authorization of regional refined product reserves.

Today, there are two regional supply reserves, both serving the Northeastern States: The Northeast Home Heating Oil Reserve and the Northeast Gasoline Supply Reserve.

The Northeast Home Heating Oil Reserve was created by our committee in the Energy Act of 2000; and the Northeast Gasoline Supply Reserve was created by President Obama and Energy Secretary Moniz in the wake of Hurricane Sandy, using authorities provided to the Secretary in section 171 of the Energy Policy and Conservation Act.

President Trump has proposed eliminating the Northeast Gasoline Supply Reserve, and I think that is a mistake. I remain committed to authorizing the existing gasoline reserve in statute, and I am convinced that regional reserves are a critical component of any SPR modernization effort.

Madam Speaker, I believe other regions should benefit, or could benefit greatly, from having a refined product reserve. This is particularly true for the Southeast, which is extremely supply constrained. A Southeast regional reserve could provide relief and flexibility in the event of a natural disaster in the region itself or in the Gulf States that supply the Southeast region with refined product.

Now, expanding the number of regional reserves is something that we must do in the future, but I believe this legislation is a good step forward on the road to SPR modernization, and so I do urge my colleagues to support this bill.

Madam Speaker, I yield back the balance of my time.

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