S. 3407

[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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