Durbin Welcomes Bush Administration Possible Action to Stockpile Gasoline Reserves
DURBIN WELCOMES BUSH ADMINISTRATION POSSIBLE ACTION TO STOCKPILE GASOLINE RESERVES
U.S. Senator Dick Durbin (D-IL) welcomed remarks by Energy Secretary Samuel Bodman that the Bush Administration is considering taking steps to create a stockpile of gasoline reserves and called for a meeting with the Secretary "as soon as possible to discuss the Administration's plans at greater length and detail and to coordinate our efforts to create such a reserve."
In a letter to Bodman, Durbin wrote: "Shortly after Hurricane Rita, when more than 25 percent of the U.S. refinery capacity was off-line, I introduced a bill, S. 1794, the Strategic Gasoline and Fuel Reserve Act of 2005, that would create a national reserve of gasoline and jet fuel. My legislation requires that the Secretary of Energy, with the Secretary of Homeland Security, determine strategically significant regional locations for the storage of fuel reserves and develop a plan to manage and maintain the viability of these stocks."
Durbin authored the legislation S.1794 in response to fuel shortages caused by Hurricanes Katrina and Rita. The bill will require the Department of Energy to hold and manage 40 million barrels of unleaded gasoline and 7.5 million barrels of jet fuel to be used in times of shortages that adversely impact the U.S. economy.
"Over the past two months, the United States has imported record levels of refined fuel products," Durbin continued. "While the availability of refined products from foreign nations has helped to ease the impact of fuel shortages in the United States, relying on the resources held by foreign nations in the future compromises our national and energy security."
"With an open dialogue between the Administration, Congress and industry representatives, we can create the appropriate infrastructure and supplies to ensure stability in our fuel market," Durbin concluded.
The full text of the letter to Secretary Bodman is below:
November 1, 2005
The Honorable Samuel Wright Bodman
Secretary
United States Department of Energy
1000 Independence Ave., SW
Washington, D.C.
20585
Dear Secretary Bodman:
I read with interest your statement before the Senate Energy and Natural Resources Committee that the Administration is considering taking steps to create a stockpile of gasoline reserves similar to a proposal I introduced in response to fuel shortages caused by Hurricanes Katrina and Rita.
You noted, however, that you believe the management of such refined product reserves may be challenging. I strongly believe that the challenge is surmountable. With an open dialogue between the Administration, Congress and industry representatives, we can create the appropriate infrastructure and supplies to ensure stability in our fuel market.
Shortly after Hurricane Rita, when more than 25 percent of the U.S. refinery capacity was off-line, I introduced a bill, S. 1794, the Strategic Gasoline and Fuel Reserve Act of 2005, that would create a national reserve of gasoline and jet fuel. My legislation requires that the Secretary of Energy, with the Secretary of Homeland Security, determine strategically significant regional locations for the storage of fuel reserves and develop a plan to manage and maintain the viability of these stocks.
The bill also gives the Secretary of Energy the authority to release fuel from these reserves at times when fuel shortages would adversely affect the United States economy. Finally, the bill empowers states by authorizing Governors to request that the Secretary release gasoline from the reserves if their state faces economic risks caused by fuel shortages within that state.
Over the past two months, the United States has imported record levels of refined fuel products. While the availability of refined products from foreign nations has helped to ease the impact of fuel shortages in the United States, relying on the resources held by foreign nations in the future compromises our national and energy security.
I would appreciate an opportunity to meet with you as soon as possible to discuss the Administration's plans at greater length and detail and to coordinate our efforts to create such a reserve. This project is important to the security of our nation. I look forward to hearing from you.
Sincerely,
Richard J. Durbin
United States Senator
http://durbin.senate.gov/record.cfm?id=248146&&