[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3407 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 3407

 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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 9, 2025

  Mr. Curtis introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Western Refined Fuel Reserve Act of 
2025''.

SEC. 2. WESTERN REFINED FUEL STORAGE RESERVE.

    The Energy Policy and Conservation Act is amended by inserting 
after section 163 (42 U.S.C. 6243) the following:

``SEC. 164. WESTERN REFINED FUEL STORAGE RESERVE.

    ``(a) Definitions.--In this section:
            ``(1) Refined fuel storage reserve.--The term `Refined Fuel 
        Storage Reserve' means a storage facility that--
                    ``(A) is a salt cavern formation; and
                    ``(B) is capable of storing refined petroleum 
                products.
            ``(2) Refined petroleum product.--The term `refined 
        petroleum product' means gasoline, diesel, and jet fuel.
            ``(3) Western state.--The term `Western State' means the 
        States of Arizona, California, Idaho, Montana, Nevada, Oregon, 
        Utah, and Washington.
    ``(b) Establishment.--
            ``(1) In general.--Not later than 6 months after the date 
        of enactment of the Western Refined Fuel Reserve Act of 2025, 
        the Secretary shall establish a Refined Fuel Storage Reserve 
        for the storage of refined petroleum products as part of the 
        Strategic Petroleum Reserve, pursuant to--
                    ``(A) the authority of the Secretary 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); and
                    ``(B) this Act.
            ``(2) Requirements.--
                    ``(A) Identification and selection.--In carrying 
                out paragraph (1), the Secretary shall--
                            ``(i) identify existing or potential 
                        storage locations in Western States suitable to 
                        establish a Refined Fuel Storage Reserve, 
                        taking into account--
                                    ``(I) the proximity of existing 
                                distribution systems;
                                    ``(II) areas of the United States--
                                            ``(aa) most dependent on 
                                        imported petroleum products; 
                                        and
                                            ``(bb) areas of the United 
                                        States most likely to 
                                        experience shortages of refined 
                                        petroleum products;
                                    ``(III) the capability for 
                                expeditious distribution of refined 
                                petroleum products from the Refined 
                                Fuel Storage Reserve to areas of the 
                                United States described in subclause 
                                (II); and
                                    ``(IV) the cost of establishing the 
                                Refined Fuel Storage Reserve--
                                            ``(aa) in the applicable 
                                        Western State; and
                                            ``(bb) at the applicable 
                                        storage location; and
                            ``(ii) select 1 storage location.
                    ``(B) Existing locations.--In carrying out 
                subparagraph (A), the Secretary shall, to the maximum 
                extent practicable--
                            ``(i) identify locations suitable for the 
                        Refined Fuel Storage Reserve in Western States; 
                        and
                            ``(ii) enter into a contractual arrangement 
                        with a public or private entity for the use and 
                        operation of a public or private storage 
                        location.
    ``(c) Fill and Maintenance.--
            ``(1) Requirements.--During the 5 fiscal years following 
        the date of establishment of the Refined Fuel Storage Reserve 
        under subsection (b)(1), the Secretary shall, in accordance 
        with paragraph (2), fill and maintain the Refined Fuel Storage 
        Reserve at not less than 75 percent of the minimum capacity for 
        each refined petroleum product on an adjusted annual basis 
        using--
                    ``(A) amounts appropriated by Congress for 
                acquisition, by purchase, of petroleum products for 
                storage in the Strategic Petroleum Reserve; and
                    ``(B) revenues from emergency or test sales carried 
                out pursuant to section 161.
            ``(2) Minimum capacity.--The minimum capacity of the 
        Refined Fuel Storage Reserve is--
                    ``(A) 5,000,000 barrels of gasoline;
                    ``(B) 3,000,000 barrels of diesel; and
                    ``(C) 2,000,000 barrels of jet fuel.
    ``(d) Drawdown.--The Secretary may withdraw refined petroleum 
products stored in the Refined Fuel Storage Reserve to respond to 
emergencies, supply disruptions, or any other circumstances consistent 
with the intent of the Strategic Petroleum Reserve or the needs of 
Western States.
    ``(e) State and Local Government Storage.--The Secretary shall, as 
the Secretary determines appropriate, pursue agreements with applicable 
Western State governments and local governments for storage of non-
Federal petroleum products within the Refined Fuel Storage Reserve.
    ``(f) Report.--Not later than 1 year after the date of enactment of 
the Western Refined Fuel Reserve Act of 2025, and annually thereafter, 
the Secretary shall submit to Congress a report on the establishment 
and operations of the Refined Fuel Storage Reserve, which shall 
include--
            ``(1) an evaluation of--
                    ``(A) the mechanisms used to carry out the 
                requirements of this section; and
                    ``(B) other potential mechanisms that could be used 
                in the future to carry out the requirements of this 
                section;
            ``(2) the process for purchase or leasing of storage 
        facilities required for the Refined Fuel Storage Reserve, as 
        applicable; and
            ``(3) recommendations for future storage of refined 
        petroleum products in the Refined Fuel Storage Reserve, 
        including any administrative actions and legislation necessary 
        to implement the recommendations, as the Secretary determines 
        appropriate.''.
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