Western Refined Fuel Reserve Act of 2025
- Sponsor
- Sen. Curtis, John R. [R-UT]
- Committees
- Energy and Natural Resources Committee (primary)
- Last action
- Dec 9, 2025
Bottom line
This bill creates a new regional refined fuel reserve to enhance energy security and address supply vulnerabilities in Western States.
What it actually does
This bill directs the Secretary of Energy to establish a Western Refined Fuel Storage Reserve within the Strategic Petroleum Reserve system. This new reserve will store specific quantities of gasoline, diesel, and jet fuel in salt cavern formations located in Western States. The Secretary is mandated to fill and maintain the reserve at not less than 75% of its minimum capacity over five fiscal years, using existing Strategic Petroleum Reserve acquisition funds and revenues from emergency sales.
Proponents argue
Proponents would argue that establishing a dedicated refined fuel reserve in Western States is crucial for regional energy security, mitigating the impact of supply disruptions, and addressing transportation vulnerabilities. They contend that the region's dependence on imported petroleum products and susceptibility to shortages necessitates a targeted federal intervention to ensure stable and affordable fuel supplies.
Opponents contend
Opponents might raise concerns about the significant cost of establishing and maintaining such a large-scale reserve, the potential for market distortion through federal fuel purchases, and whether existing Strategic Petroleum Reserve authorities are sufficient to address regional needs without creating a new, separate and potentially redundant reserve.
The bill is concise and clearly written, allowing for a quick and straightforward understanding of its core provisions and objectives.
Section 2, amending Energy Policy and Conservation Act, new Section 164(b)
Establishment of Western Refined Fuel Storage Reserve
This provision mandates the Secretary of Energy to establish a Refined Fuel Storage Reserve within six months of the bill's enactment. This reserve will be part of the Strategic Petroleum Reserve and will store refined petroleum products like gasoline, diesel, and jet fuel in salt cavern formations in Western States. The Secretary must identify suitable locations based on proximity to distribution systems, areas prone to shortages, and cost, prioritizing existing public or private storage facilities.
Supporters argue
Supporters argue this provision directly addresses a critical vulnerability in Western States by creating a dedicated, regionally focused reserve for refined fuels, which are essential for daily life and economic activity.
Critics contend
Critics might argue that this creates an unnecessary bureaucratic layer and that existing SPR authorities could be adapted to address regional needs without a new, distinct reserve, potentially leading to inefficiencies.
Tradeoffs
Balances the need for regional energy security against the potential for increased administrative complexity and costs associated with a new reserve.
Section 2, amending Energy Policy and Conservation Act, new Section 164(c)
Reserve Capacity and Fill Mandate
This section sets specific minimum capacities for the Refined Fuel Storage Reserve: 5 million barrels of gasoline, 3 million barrels of diesel, and 2 million barrels of jet fuel. It also mandates that the Secretary must fill and maintain the reserve at not less than 75% of these minimum capacities for the five fiscal years following its establishment, using appropriated funds for petroleum acquisition or revenues from emergency/test sales of the Strategic Petroleum Reserve.
Section 2, amending Energy Policy and Conservation Act, new Section 164(d)
Emergency Drawdown Authority
This provision grants the Secretary of Energy the authority to withdraw refined petroleum products from the Western Refined Fuel Storage Reserve. This drawdown can occur in response to emergencies, supply disruptions, or any other circumstances consistent with the intent of the broader Strategic Petroleum Reserve or specifically to meet the needs of Western States.
Section 2, amending Energy Policy and Conservation Act, new Section 164(e)
Non-Federal Storage Agreements
This provision directs the Secretary of Energy to pursue agreements with Western State governments and local governments, as deemed appropriate, for the storage of non-Federal petroleum products within the newly established Refined Fuel Storage Reserve. This allows states and localities to leverage the federal infrastructure for their own fuel security needs.
Section 2, amending Energy Policy and Conservation Act, new Section 164(f)
Annual Reporting Requirements
This provision requires the Secretary of Energy to submit an annual report to Congress, starting one year after the bill's enactment. The report must detail the establishment and operations of the Refined Fuel Storage Reserve, including an evaluation of mechanisms used, the process for acquiring or leasing storage facilities, and recommendations for future storage, including necessary administrative actions and legislation.
The establishment of the reserve is explicitly linked to the Secretary's authority under section 159(f) to address energy supply and transportation vulnerabilities in Western States, in accordance with Executive Order 14156 (90 Fed. Reg. 8433; relating to declaring a national energy emergency).
Section 2, new Section 164(b)(1)(A)
Why it matters:This is standard legislative practice to reference existing legal authority and executive actions to provide context and legal grounding for new mandates.
Case for: Supporters would argue that this reference provides a clear legal and policy basis for the reserve, demonstrating that it aligns with existing executive branch priorities regarding energy emergencies, potentially streamlining its establishment.
Case against: Critics might argue that tying the reserve to a specific Executive Order could make its long-term stability or operational parameters subject to changes in executive policy, rather than solely statutory direction.
Estimated impact: This reference reinforces the urgency and justification for the reserve, potentially streamlining its establishment by aligning with existing emergency declarations.