Sponsor
Celeste Maloy
Representative · R-UT
Representative · R-UT
The bill provides a Western regional refined-fuel reserve and quicker regional distribution to strengthen supply resilience and stabilize prices, but it raises taxpayer cost exposure, safety/environmental risks for host communities, and trade-offs with existing SPR priorities — concentrated by a single storage site.
Western states (urban and rural communities and state governments) gain a regional refined-fuel reserve (5M gal gasoline, 3M gal diesel, 2M gal jet) that improves fuel supply resilience during disruptions.
Consumers and businesses in the Western region (urban and rural) get faster access to fuel during shortages because reserve sites are sited near regional distribution systems, helping stabilize local fuel prices in disruptions.
State and local governments and private holders can store non‑Federal refined product in the reserve under agreements, giving localities and companies additional capacity to bolster resilience and manage local supplies.
Taxpayers could face higher costs if Congress must provide additional appropriations to fill the refined-fuel reserve or authorize using SPR funds for refined products.
Host communities (largely rural) face increased environmental and safety risks — including leaks, contamination, or accidents — from storing and maintaining large inventories of refined fuels in salt caverns.
Shifting SPR resources toward refined products could reduce funds or priority for crude oil purchases and other SPR objectives unless Congress provides additional appropriations.
Based on analysis of 2 sections of legislative text.
Creates a Western Refined Fuel Reserve (gasoline, diesel, jet) within the SPR, requires site selection within 6 months, and mandates filling to 75% of set minimum capacities within five fiscal years.
Official title: To direct the Secretary of Energy to establish a Western Refined Fuel Storage Reserve as part of the Strategic Petroleum Reserve, and for other purposes.
Introduced April 6, 2026 by Celeste Maloy · Last progress April 6, 2026
Creates a new Western Refined Fuel Reserve as part of the Strategic Petroleum Reserve to hold gasoline, diesel, and jet fuel in a salt‑cavern facility in Western States. The Secretary of Energy must select a site within six months, favor existing locations, contract for storage operations, and within five fiscal years fill and maintain minimum inventories (5M bbl gasoline, 3M bbl diesel, 2M bbl jet fuel) at not less than 75% of minimum capacity using SPR appropriations and certain SPR sale revenues. The bill allows the Secretary to draw down fuel for emergencies or supply disruptions, to enter non‑Federal/state/local storage agreements, and requires an initial report to Congress within one year and annual reports thereafter describing establishment, operations, procurement, leasing, and recommendations.