S. 3407 — Western Refined Fuel Reserve Act of 2025

This section establishes the Western Refined Fuel Storage Reserve—a salt cavern facility for storing refined petroleum products (gasoline, diesel, and jet fuel)—in one Western State (Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, or Washington) as part of the Strategic Petroleum Reserve (SPR), which maintains a government-owned stockpile of crude oil and refined products to mitigate energy supply disruptions. (The Secretary of Energy must select the location within six months of enactment, prioritizing existing public or private sites via contracts based on proximity to distribution systems, regional import dependency and shortage risks, drawdown speed, and costs.) During the five fiscal years after establishment, the Secretary must fill and maintain the reserve at not less than 75% of minimum capacity annually—5 million barrels of gasoline, 3 million barrels of diesel, and 2 million barrels of jet fuel—using congressional appropriations for SPR petroleum purchases or revenues from SPR emergency/test sales. The Secretary may draw down the reserve for emergencies, supply disruptions, or Western State needs; pursue agreements for non-Federal state/local storage within the reserve; and submit annual reports to Congress, beginning one year after enactment, evaluating implementation mechanisms, storage acquisition processes, and recommendations for future operations.