H.R. 8204: Western Refined Fuel Reserve Act of 2026

The Western Refined Fuel Reserve Act of 2026 is a proposed piece of legislation aimed at establishing a new storage facility for refined petroleum products in the western United States. Here’s a breakdown of what the bill entails:

Definitions and Purpose

The bill defines important terms, including:

• Refined Fuel Storage Reserve: A facility designed for storing refined petroleum products in a salt cavern formation.
• Refined Petroleum Products: Specifically refers to gasoline, diesel, and jet fuel.
• Western States: The states included are Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, and Washington.

Establishment of the Reserve

The Secretary of Energy is tasked with creating the Refined Fuel Storage Reserve within six months of the bill's enactment. This reserve will be part of the existing Strategic Petroleum Reserve, established to help manage energy supply and transportation vulnerabilities in the Western States.

Requirements for Establishment

In establishing the reserve, the Secretary must:

• Identify existing or suitable potential storage locations in the relevant Western States, considering factors such as proximity to distribution systems and the likelihood of petroleum shortages.
• Select one suitable storage location and, where feasible, make arrangements with public or private entities for the use and operation of that facility.

Fill and Maintenance of the Reserve

Once established, the Refined Fuel Storage Reserve must be filled and maintained at no less than 75% capacity for each refined product over the initial five years. The minimum capacities set forth are:

• 5,000,000 barrels of gasoline
• 3,000,000 barrels of diesel
• 2,000,000 barrels of jet fuel

To achieve this, the Secretary will use funds appropriated by Congress and revenues from emergency sales of products.

Withdrawal and Emergency Use

The Secretary holds the authority to withdraw petroleum products from the reserve in response to emergencies, supply disruptions, or other significant circumstances that align with the intentions of the Strategic Petroleum Reserve and the needs of Western States.

Collaboration with Local Governments

The bill also encourages the Secretary to seek agreements with state and local governments in Western States for storing non-Federal petroleum products within the reserve if deemed appropriate.

Reporting Requirements

Within one year of enacting the bill, the Secretary is required to report to Congress on the establishment and operations of the Refined Fuel Storage Reserve annually thereafter. This report must evaluate the effectiveness of the mechanisms used, discuss potential future improvements, detail the procurement process for storage facilities, and provide recommendations for additional storage needs.

Relevant Companies

• XOM (Exxon Mobil Corporation): As a major oil company involved in refining, Exxon Mobil could be directly impacted regarding opportunities for storage of refined fuels and potential contracts related to the reserve.
• CVX (Chevron Corporation): Similarly, Chevron could find opportunities for storage operations or partnerships as the National Reserve is established and implemented.
• PSX (Phillips 66): This company specializes in refining and might be involved in various operational or logistical aspects of the storage facilities set up under the new act.