Sponsors
The bill improves Western regional fuel resilience and reduces the risk of local shortages by creating local reserves (using existing storage where possible), but does so at the cost of increased federal spending/diverted SPR sale revenues, reduced SPR flexibility for five years, and localized environmental and safety risks.
Consumers and communities in Western states will face fewer regional fuel shortages and price spikes because stored gasoline, diesel, and jet fuel will be available locally during emergencies.
State and local governments in Western states gain local fuel reserves that enable faster response to regional supply disruptions and improve regional fuel resilience.
Using existing storage facilities and contracts to establish reserves can speed implementation and reduce costs compared with building new infrastructure.
Taxpayers could face increased federal spending or see SPR sale revenues diverted to create and maintain these regional reserves, reducing funds available for other priorities.
A required minimum (75%) SPR-related holding for five years could reduce federal fuel flexibility and limit quantities available for other national needs or responses.
Storing refined fuels (e.g., in salt caverns) may pose environmental hazards and local safety risks for nearby rural communities.
Based on analysis of 2 sections of legislative text.
Creates a Western regional refined fuel reserve in SPR salt caverns, sets minimum gasoline/diesel/jet fuel capacities, and requires DOE to establish, stock, and report.
Creates a regional refined fuel reserve in Western U.S. salt‑cavern storage as part of the Strategic Petroleum Reserve. The Department of Energy must set up the Reserve within six months, pick one storage location (preferably using existing facilities/contracts), and over the next five fiscal years fill and keep stocks at least 75% of minimum capacities for gasoline (5M barrels), diesel (3M barrels), and jet fuel (2M barrels). The Reserve can be drawn down for emergencies or SPR‑consistent needs, may host non‑Federal product under agreements, and requires an initial report within one year and annual reporting thereafter.
Introduced April 6, 2026 by Celeste Maloy · Last progress April 6, 2026