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Introduced January 3, 2025 by Andrew S. Biggs · Last progress January 3, 2025
Requires the Secretary of Energy to develop and implement a "compensatory production increase" plan before any first withdrawal of petroleum from the Strategic Petroleum Reserve (SPR) after the law takes effect. The plan must raise the share of Federal lands leased for oil and gas by the same percentage as the planned SPR drawdown, subject to a cap limiting the total increase in leased Federal land to no more than 10 percent, and excepting cases of a declared severe energy supply interruption. The Energy Secretary must prepare the plan in consultation with the Secretaries of Agriculture, the Interior, and Defense; the provision amends existing SPR drawdown rules and does not itself appropriate funds or create other programs.
The bill links SPR replenishment to increased federal oil and gas leasing—potentially boosting domestic production and jobs but locking in more fossil development with greater emissions, local health harms, possible higher consumer costs, and legal/administrative complications.
Domestic oil and gas producers and energy-sector workers would gain increased federal leasing opportunities, likely creating jobs in extraction and related industries.
Taxpayers and the energy system could see increased domestic production capacity over time, helping to replenish Strategic Petroleum Reserve (SPR) drawdowns and reduce reliance on foreign supply.
All Americans face higher long-term climate risk because expanding federal fossil fuel leasing locks in more oil and gas development and likely increases greenhouse gas emissions.
Taxpayers and middle-class consumers could experience higher or more volatile fuel prices if conditioning SPR releases on new leasing delays the government's ability to respond quickly to supply disruptions.
Rural communities and local governments near leased federal lands could suffer increased pollution and health risks from expanded drilling activity.