HR 8204
Western Refined Fuel Reserve Act of 2026
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Bill overview
This bill creates a Western Refined Fuel Storage Reserve as part of the Strategic Petroleum Reserve. The reserve will be established by the Secretary of Energy to address potential energy supply and transportation vulnerabilities in eight Western states – Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, and Washington. The reserve will store gasoline, diesel, and jet fuel, prioritizing locations based on dependence on imports and potential shortages, and will be initially filled to a minimum capacity of 10 million barrels.
Key provisions
- Establishes a Western Refined Fuel Storage Reserve within the Strategic Petroleum Reserve.
- Defines ‘Western State’ as a specific set of states.
- Requires the Secretary to identify and select a suitable storage location within Western States.
- Mandates filling and maintaining the reserve to at least 75% of its capacity over five fiscal years.
- Specifies minimum storage capacities for gasoline, diesel, and jet fuel.
- Authorizes the Secretary to draw upon the reserve in response to emergencies or supply disruptions.
- Allows for agreements with state and local governments for non-Federal petroleum product storage.
- Requires the Secretary to submit annual reports to Congress on the reserve’s operations and effectiveness.
Who is affected
- Western States (Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, Washington)
- Consumers in Western States
- Energy Industry
- Federal Government (Department of Energy)
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119th CONGRESS — 2d Session
H. R. 8204
IN THE HOUSE OF REPRESENTATIVES
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.
This Act may be cited as the Western Refined Fuel Reserve Act of 2026
.
The Energy Policy and Conservation Act is amended by inserting after section 163 (42 U.S.C. 6243) the following:
In this section:
The term Refined Fuel Storage Reserve means a storage facility that—
is a salt cavern formation; and
is capable of storing refined petroleum products.
The term refined petroleum product means gasoline, diesel, and jet fuel.
The term Western State means the States of Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, and Washington.
Not later than 6 months after the date of enactment of the
Western Refined Fuel Reserve Act of 2026
, 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—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
this Act.
areas of the United States—
areas of the United States most likely to experience shortages of refined petroleum products;
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
the cost of establishing the Refined Fuel Storage Reserve—
at the applicable storage location; and
select 1 storage location.
In carrying out subparagraph (A), the Secretary shall, to the maximum extent practicable—
enter into a contractual arrangement with a public or private entity for the use and operation of a public or private storage location.
revenues from emergency or test sales carried out pursuant to section 161.
The minimum capacity of the Refined Fuel Storage Reserve is—
3,000,000 barrels of diesel; and
2,000,000 barrels of jet fuel.
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.
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.
Not later than 1 year after the date of enactment of the
Western Refined Fuel Reserve Act of 2026
, 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—an evaluation of—
the process for purchase or leasing of storage facilities required for the Refined Fuel Storage Reserve, as applicable; and
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.