BILL REQ. #:  H-3645.1 

Read first time 01/26/12.   Referred to Committee on Technology, Energy & Communications.

     AN ACT Relating to a study of the feasibility of a strategic petroleum reserve and petroleum refinery; creating new sections; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that petroleum is a vital part of our state's economy. In light of ongoing volatility and increasing demand in the world market for petroleum, it is important for our state to diversify its resources. Therefore, it is the intent of the legislature to examine the feasibility of creating a strategic petroleum reserve and petroleum refinery to ensure that the state has continued and reliable access to such an important resource.

NEW SECTION.  Sec. 2   (1)(a) The joint legislative task force on a Washington strategic petroleum reserve is established, with nine members as provided in this subsection:
     (i) The majority leader of the senate shall appoint one member from each of the two largest caucuses of the senate;
     (ii) The speaker of the house of representatives shall appoint one member from each of the two largest caucuses of the house of representatives; and
     (iii) The governor shall appoint five members from the executive branch including, but not limited to, representation from the energy facility site evaluation council, the utilities and transportation commission, the department of natural resources, and the state energy office within the department of commerce.
     (b) The majority leader of the senate and the speaker of the house of representatives shall jointly appoint the cochairs of the task force from among the legislative members of the task force. The cochairs shall convene the initial meeting of the task force. A steering committee consisting of the legislative members of the task force shall advise the cochairs on the meetings and other activities of the task force.
     (2) The task force shall study the feasibility of establishing a strategic petroleum reserve and a state-owned petroleum refinery.
     (a) In studying the feasibility of establishing a strategic petroleum reserve, the task force shall consider and make recommendations on, but not be limited to, the following:
     (i) The amount of strategic petroleum reserves necessary to supply refineries in Washington to meet thirty days of state demand of gasoline, diesel fuel, aviation fuel, and home heating oil;
     (ii) Above ground storage and underground storage options in geologically stable parts of the state;
     (iii) Petroleum infrastructure requirements to deliver strategic petroleum reserves to privately owned and state-owned refineries for processing;
     (iv) A forecast of the annual costs to operate the strategic petroleum reserve;
     (v) The circumstances that would authorize the governor to access the strategic petroleum reserves; and
     (vi) The licensing, permitting, or other regulatory costs associated with the construction and operation of a strategic petroleum reserve.
     (b) In studying the feasibility of establishing a state-owned petroleum refinery, the task force shall consider and make recommendations on, but not be limited to, the following:
     (i) The location of the state-owned refinery in relationship to the strategic petroleum reserve;
     (ii) The licensing, permitting, or other regulatory costs associated with the construction and operation of a state-owned petroleum refinery to supply the daily needs. As part of this forecast, a comparison must be presented on the costs and benefits to the state of operating the refinery versus the state contracting with a private entity to operate the refinery; and
     (iii) The circumstances that would authorize the governor to activate operations of the state-owned petroleum refinery.
     (3) Staff support for the task force will be provided by senate committee services and the house of representatives office of program research. The task force may hire additional staff with specific technical expertise if such expertise is necessary to carry out the mandates of this study, and only if an appropriation is specifically provided for this purpose.
     (4) Legislative members of the task force shall be reimbursed for travel expenses in accordance with RCW 44.04.120. Nonlegislative members, except those representing an employer or organization, are entitled to be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.
     (5) The expenses of the task force must be paid jointly by the senate and house of representatives. Task force expenditures are subject to approval by the senate facilities and operations committee and the house of representatives executive rules committee, or their successor committees.
     (6) The task force shall report its findings and recommendations to the legislature by December 1, 2012.
     (7) This section expires July 1, 2013.