ESF

A “Strategic Resilience Reserve” (SRR) could follow the model of the Federal Reserve’s efforts to address financial stability risk: aiming to prevent crises, and reducing harm when they occur.

Energy price volatility, which may be with us for quite some time as we pursue decarbonization, is one of our nation’s greatest macroeconomic threats.

Given the discretion afforded the Secretary in utilizing the ESF, and the strong correlation between commodity price volatility and exchange rate volatility, the Secretary has the authority to establish a Supply Insurance and Acceleration Program for key commodities.