Sponsors (8)
The bill strengthens sanctions coherence and protects the SPR from being used to benefit adversary-linked firms, but at the cost of fewer eligible buyers, potential reductions in sale proceeds, added DOE compliance work, and a possible loss of flexibility that could raise fuel prices in an emergency.
Taxpayers, energy consumers, state governments, and utilities: the bill bars SPR sales to entities headquartered in sanctioned countries, reducing the chance U.S. strategic petroleum benefits adversaries and helping keep the reserve available for domestic emergencies while aligning oil sales with U.S. sanctions policy.
Taxpayers and energy consumers (including utilities): narrowing eligible buyers could reduce flexibility and speed of SPR drawdowns in a supply crisis, increasing the risk of higher domestic fuel prices during emergencies.
Utilities and other energy firms, and indirectly taxpayers: firms headquartered in covered countries but operating internationally may be barred from purchasing SPR oil, shrinking the pool of potential buyers and possibly lowering sale proceeds from SPR disposals.
Department of Energy staff and other federal employees: the ban requires verification of purchasers' headquarters and ongoing enforcement, creating additional administrative burden and compliance costs for the agency.
Based on analysis of 2 sections of legislative text.
Prohibits the sale of Strategic Petroleum Reserve oil to entities headquartered in the countries listed in Table 1 of 22 C.F.R. §126.1 (as of enactment) and to entities headquartered in Russia.
Introduced January 9, 2025 by Stephanie I. Bice · Last progress January 9, 2025
Prohibits the Secretary of Energy from selling petroleum products drawn from the Strategic Petroleum Reserve (SPR) to any entity headquartered in countries listed in Table 1 to paragraph (d)(1) of 22 C.F.R. §126.1 as of enactment, and to entities headquartered in Russia. The bill also updates references in the Energy Policy and Conservation Act (EPCA) and its table of contents to reflect the new statutory provision. The change is a targeted policy restriction on who may buy SPR oil; it does not create new spending, nor does it add new programs or funding requirements.