Sponsors (36)
Introduced February 4, 2025 by Christina Houlahan · Last progress February 4, 2025
The bill improves national-security protections and clarifies federal oversight by blocking SPR sales to specified adversaries while allowing a national-security waiver, but it could reduce sale flexibility and proceeds, slow emergency releases, and raise compliance costs.
Domestic consumers and taxpayers face a lower risk that SPR sales will indirectly aid specified geopolitical adversaries because the bill bars sales to entities tied to those adversaries.
Federal and state governments gain clearer implementation and oversight because the bill requires the Secretary to issue a rule within 60 days defining how the ban will be applied.
Taxpayers and the federal government retain flexibility to address urgent national-security needs because the Secretary may waive the ban when a certified national security interest exists.
Taxpayers, energy workers, and domestic fuel consumers may see reduced revenues and fewer market-stabilizing SPR sales because barring certain buyers could limit sale flexibility and proceeds.
State governments and domestic consumers could experience delayed emergency or commercial SPR releases if the waiver process is slow or becomes politicized, undermining timely market stabilization in crises.
The Department of Energy, private contractors, and taxpayers could incur higher compliance and administrative costs because of added screening and enforcement to prevent prohibited sales.
Based on analysis of 2 sections of legislative text.
Bars export or sale of SPR petroleum to China, North Korea, Russia, Iran, and entities they control, with a national-security waiver.
Prohibits the Department of Energy from exporting or selling petroleum products taken from the Strategic Petroleum Reserve (SPR) to the People’s Republic of China, North Korea, Russia, Iran, and any entities owned or controlled by those countries or the Chinese Communist Party. The Secretary of Energy may waive that ban only by certifying a specific sale or export is in the national security interests of the United States, and the Secretary must issue a rule to implement the new restriction within 60 days of enactment.