What This Bill Does
This bill tells the Secretary of Energy (the head of the U.S. Department of Energy) to study whether the United States should create a national propane reserve. A propane reserve would be a stockpile of propane (a gas used for heating and cooking) kept in storage locations across the country, separate from the existing oil reserve. The study must determine if this reserve would help prevent supply shortages in different regions.
Who It Affects
The Secretary of Energy and the Energy Information Administration (a government agency that tracks energy data) must conduct and coordinate the study. The bill also encourages coordination with propane industry companies and suppliers. Homeowners, farmers and the military who use propane could potentially be affected if the reserve is created.
Key Provisions
• The Secretary of Energy must complete the study within 180 days of the bill becoming law and must work with the Energy Information Administration (Sec. 2(a)(1))
• The study must evaluate past propane shortages, possible future shortages, and whether a reserve is needed to prevent them (Sec. 2(a)(2)(B))
• The study must identify the best locations for storage, how much propane to store at each location, and whether existing pipelines and transportation systems can deliver the propane (Sec. 2(a)(2)(C))
• The Secretary must develop recommendations about whether to create the reserve and the best way to do it (Sec. 2(a)(3))
• Within 180 days after finishing the study, the Secretary must create a plan to carry out the recommendations (Sec. 2(b))
• The Secretary must submit a report to Congress describing the study results and implementation plan (Sec. 2(d))
What Changes
If this bill becomes law, the federal government will begin a formal study of creating a national propane reserve. Currently, no such reserve exists. After the study is complete, Congress will receive a detailed report with recommendations and an implementation plan. No actual reserve will be created unless Congress passes additional legislation.
Important Definitions
Strategic Propane Reserve: Not specified in bill text
Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 515
To require the Secretary of Energy to conduct a study to determine the
feasibility and effectiveness of establishing a national strategic propane
reserve.
IN THE SENATE OF THE UNITED STATES
FEBRUARY 16, 2023
Ms. STABENOW (for herself and Mr. THUNE) introduced the following bill;
which was read twice and referred to the Committee on Energy and Nat-
ural Resources
A BILL
To require the Secretary of Energy to conduct a study to
determine the feasibility and effectiveness of establishing
a national strategic propane reserve.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Securing Our Propane
4
Supply Act’’.
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SEC. 2. DEPARTMENT OF ENERGY STUDY ON ESTAB-
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LISHING NATIONAL STRATEGIC PROPANE RE-
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SERVE.
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(a) STUDY.—
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•S 515 IS
(1) IN
GENERAL.—Not later than 180 days
1
after the date of enactment of this Act, the Sec-
2
retary of Energy, in consultation with the Adminis-
3
trator of the Energy Information Administration,
4
shall complete a study to determine the feasibility
5
and effectiveness of establishing a national strategic
6
propane reserve, separate from the Strategic Petro-
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leum Reserve established under part B of title I of
8
the Energy Policy and Conservation Act (42 U.S.C.
9
6231 et seq.).
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(2) ELEMENTS.—The study under paragraph
11
(1) shall include—
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(A) an assessment of the current state of
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the propane supply chain in the United States
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to meet current and forecasted consumer de-
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mands;
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(B) an assessment of the risks of regional
17
propane supply disruptions, including—
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(i) past causes of disruptions;
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(ii) possible causes of disruptions in
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the future; and
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(iii) whether disruptions justify the es-
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tablishment of a national strategic propane
23
reserve;
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(C) an evaluation of—
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•S 515 IS
(i) appropriate and most suitable loca-
1
tions for a strategic propane reserve;
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(ii) the quantity of propane storage
3
that would be appropriate at each such lo-
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cation; and
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(iii) the suitability of existing infra-
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structure to facilitate transportation and
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delivery of propane from a strategic pro-
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pane reserve during a drawdown;
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(D) an evaluation of the additional infra-
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structure needed for a strategic propane reserve
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to function properly;
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(E) consideration of the means by which a
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strategic propane reserve would prevent and
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manage degradation of the propane in storage;
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(F) an evaluation of appropriate triggers
16
(including price and supply) for making avail-
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able propane from a strategic reserve;
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(G) an evaluation of the appropriate man-
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ner of acquiring propane and propane storage
20
for a strategic reserve, while minimizing market
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implications, including an assessment of—
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(i) unutilized and under-utilized stor-
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age; and
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(ii) new storage opportunities;
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•S 515 IS
(H) an evaluation of the appropriate trans-
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actions (including direct sales, exchanges, or
2
other options) for delivering propane in a stra-
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tegic reserve to the market when a release is
4
triggered;
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(I) an evaluation of likely consumers (in-
6
cluding individuals, agricultural producers, and
7
the Armed Forces) of propane from a strategic
8
reserve, including—
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(i) identification and categorization of
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those consumers;
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(ii) a State-by-State breakdown of
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propane usage by those consumers; and
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(iii) an evaluation of the expected im-
14
pacts of a strategic propane reserve on
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those categories of consumers and States;
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(J) an evaluation of the market implica-
17
tions of establishing and administering a stra-
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tegic propane reserve, including an assessment
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of potential price and supply effects; and
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(K) identification, preliminary assessment,
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and evaluation of alternatives to a strategic
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propane reserve that could provide supply and
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price relief during regional propane supply dis-
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ruptions.
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(3) RECOMMENDATIONS.—In conducting the
1
study under this subsection, the Secretary of Energy
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shall develop recommendations with respect to each
3
element of the study described in paragraph (2) re-
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garding—
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(A) whether a national strategic propane
6
reserve should be established; and
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(B) if such a reserve should be established,
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the most practicable method of establishment.
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(b) PLAN.—Not later than 180 days after the date
10
of completion of the study under subsection (a), the Sec-
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retary of Energy shall develop a plan for implementing
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the recommendations developed under paragraph (3) of
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that subsection.
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(c) INDUSTRY COORDINATION.—In conducting the
15
study under subsection (a) and developing the plan under
16
subsection (b), the Secretary of Energy is encouraged to
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coordinate with entities in the propane industry, including
18
representatives from the entire propane supply chain.
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(d) SUBMISSION TO CONGRESS.—The Secretary of
20
Energy shall submit to the Committee on Energy and
21
Natural Resources of the Senate and the Committee on
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Energy and Commerce of the House of Representatives
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a report describing—
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•S 515 IS
(1) the study completed under subsection (a);
1
and
2
(2) the plan developed under subsection (b).
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(e) PROTECTION OF NATIONAL SECURITY INFORMA-
4
TION.—Before submitting the report under subsection (d),
5
or otherwise publishing the study completed under sub-
6
section (a) or the plan developed under subsection (b), the
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Secretary of Energy shall adopt such procedures with re-
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spect to confidentiality (including procedures for redaction
9
of information) as the Secretary determines to be nec-
10
essary to ensure the protection of classified information
11
relating to specific vulnerabilities to United States energy
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security or reliability.
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Æ
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