[House Report 119-267]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-267
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RESEARCHING EFFICIENT FEDERAL IMPROVEMENTS FOR
NECESSARY ENERGY REFINING ACT
_______
September 11, 2025.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Guthrie, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 3109]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 3109) to require the Secretary of Energy to
direct the National Petroleum Council to issue a report with
respect to petrochemical refineries in the United States, and
for other purposes, having considered the same, reports
favorably thereon without amendment and recommends that the
bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Committee Action................................................. 3
Committee Votes.................................................. 3
Oversight Findings and Recommendations........................... 5
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Congressional Budget Office Estimate............................. 5
Federal Mandates Statement....................................... 6
Statement of General Performance Goals and Objectives............ 6
Duplication of Federal Programs.................................. 6
Related Committee and Subcommittee Hearings...................... 6
Committee Cost Estimate.......................................... 7
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 7
Advisory Committee Statement..................................... 8
Applicability to Legislative Branch.............................. 8
Section-by-Section Analysis of the Legislation................... 8
Changes in Existing Law Made by the Bill, as Reported............ 8
Minority, Additional, or Dissenting Views........................ 9
Exchange of Letters with Additional Committees of Referral.......
PURPOSE AND SUMMARY
H.R. 3109, the ``Researching Efficient Federal Improvement
Acts for Necessary Energy Refining Act (REFINER),'' was
introduced by Rep. Latta (R-OH) on April 30, 2025. H.R. 3109
would require the Secretary of Energy to direct the National
Petroleum Council to issue a report on petrochemical refineries
in the United States.
BACKGROUND AND NEED FOR LEGISLATION
Refineries play a key role in United States energy security
by converting crude oil into petroleum products. The
International Energy Agency characterizes petrochemicals as
``part of the fabric of our societies.''\1\ Our daily lives
depend on petroleum products across the energy system from
transportation fuels to electricity generation to chemical
feedstocks.
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\1\IEA, The Future of Petrochemicals, International Energy Agency,
(Oct. 2018), https://www.iea.org/reports/the-future-of-petrochemicals.
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The U.S. Energy Information Administration (EIA) reported
that from 2020 to 2022, refining capacity in the United States
decreased by more than one million barrels of fuel per day.\2\
Over the same time period, the American Fuel and Petrochemical
Manufacturers referred that the number of operable petroleum
refineries dropped from 135 to 128 refineries.\3\ While there
were 132 operable refineries as of January 1, 2025, EIA
projects that United States refinery capacity will decrease by
about 3% by the end of 2025.\4\
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\2\Kevin Hack & Julie Harris, U.S. refinery capacity decreased
during 2021 for second consecutive year, U.S. Energy Information
Administration, (June 29, 2022), https://www.eia.gov/todayinenergy/
detail.php?id=52939.
\3\AFPM Communications, Refining Capacity 101: What to Understand
Before Demanding ``Restarts'', American Fuel and Petrochemical
Manufacturers, (June 6, 2022), https://www.afpm.org/newsroom/blog/
refining-capacity-101-what-understand-demanding-restarts.
\4\EIA, Short-Term Energy Outlook, U.S. Energy Information
Administration (Aug. 12, 2025), https://www.eia.gov/outlooks/steo/.
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This decline is attributed to the closure of some
refineries due to state policies hostile to refining
operations. In fact, California could lose 20% of the state's
total refining capacity within this year as regulatory and
statutory hurdles in the Golden State have become untenable for
continued refining operations.\5\ As supply falls well below
demand, gas prices and foreign imports of refined products will
both increase.
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\5\Julie Johnson, California could lose 20% of its refining
capacity in a single year. Drivers will feel it, San Francisco
Chronicle, (Apr. 18, 2025), https://www.sfchronicle.com/california/
article
/refinery-closures-gas-prices-20279856.php.
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Federal policy has also recently been confusing and
inconsistent for the future of refineries. The previous
Administration repeatedly sent mixed or negative messages about
the future for the refining industry. For example, President
Biden called on refineries ``to take immediate actions to
increase the supply of gasoline, diesel, and other refined
products,'' while simultaneously criticizing refineries that
``refinery profit margins well above normal being passed
directly onto American families are not acceptable.''\6\ Given
that refineries are already operating at near maximum capacity,
policy signals that adversely influence investment certainty
are problematic.
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\6\Amanda Garcia, Biden Sends Letter to Oil Refiners Blasting High
Profits Amid Record Gas Prices, ABC News, (June 15, 2022), https://
abcnews.go.com/Politics/biden-sends-letter-oil-
refiners-blasting-high-profits/
story?id=85410420#::text=Gas%20prices%20are%20displayed
%20at%20an%20Exxon,Edgewater%2C%20N.J.%2C%20June%2014%2C%202022.%20Mike
%20Segar/Reuters.
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Studying refining capacity would allow the federal
government to better understand how to increase refining
capacity in the United States, thereby unleashing American
energy and lowering gasoline prices. The most recent report by
the National Petroleum Council on refining was published in
2004, so it is well past time to analyze domestic refining
capacity and corresponding challenges.\7\
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\7\Nat'l. Petroleum Council, Observations on Petroleum Product
Supply, (2004) https://www.npc.org/reports/R-I_121704.pdf.
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COMMITTEE ACTION
On April 30, 2025, the Subcommittee on Energy held a
legislative hearing on 14 pieces of legislation, including H.R.
3109. The Subcommittee received testimony from:
Mike Goff, Acting Undersecretary of Energy,
U.S. Department of Energy;
David L. Morenoff, Acting General Counsel,
Federal Energy Regulatory Commission;
Terry Turpin, Director, Office of Energy
Projects, Federal Energy Regulatory Commission;
Jim Matheson, Chief Executive Officer,
National Rural Electric Cooperative Association;
Amy Andryszak, President and Chief Executive
Officer, Interstate Natural Gas Association of America;
Todd A. Snitchler, President and Chief
Executive Officer, Electric Power Supply Association
and;
Kim Smaczniak, Partner, Roselle LLP.
On June 5, 2025, the Subcommittee on Energy met in open
markup session and forwarded H.R. 3109, without amendment, to
the full Committee by a voice vote. On June 25, 2025, the full
Committee on Energy and Commerce met in open markup session and
ordered H.R. 3109, without amendment, favorably reported to the
House by a record vote of 28 yeas and 20 nays.
COMMITTEE VOTES
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. The following reflects the record votes taken during
the Committee consideration:
OVERSIGHT FINDINGS AND RECOMMENDATIONS
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held hearings and made findings that
are reflected in this report.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 3109 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII, the following is
the cost estimate provided by the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974:
H.R. 3109 would require the National Petroleum Council
(NPC) to report to the Congress and the Department of Energy
(DOE) on petrochemical refineries in the United States. The NPC
is a federally chartered and privately funded organization that
advises DOE. Accordingly, CBO estimates that implementing the
bill would not affect the federal budget.
H.R. 3109 would impose a private-sector mandate as defined
in the Unfunded Mandates Reform Act (UMRA) by requiring the NPC
to produce a report on petrochemical refineries in the United
States. CBO estimates that the cost of compliance would be
small and fall well below the threshold established in UMRA for
private-sector mandates ($206 million in 2025, adjusted
annually for inflation).
The bill would not impose an intergovernmental mandate as
defined in UMRA.
The CBO staff contacts for this estimate are Aaron Krupkin
(for federal costs) and Brandon Lever (for mandates). The
estimate was reviewed by H. Samuel Papenfuss, Deputy Director
of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to require
the Secretary of Energy to direct the National Petroleum
Council to issue a report on petrochemical refineries in the
United States.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 3109 is known to be duplicative of another Federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
RELATED COMMITTEE AND SUBCOMMITTEE HEARINGS
Pursuant to clause 3(c)(6) of rule XIII, the following
related hearing was used to develop or consider H.R. 3109:
On February 5, 2025, the Subcommittee on Energy held a
hearing on H.R. 3109. The title of the hearing was ``Powering
America's Future: Unleashing American Energy.'' The
Subcommittee received testimony from:
Amanda Eversole, Executive Vice President
and Chief Advocacy Officer, American Petroleum
Institute;
Brigham McCown, Senior Fellow and Director,
Initiative on American Energy Security, The Hudson
Institute;
Gary Arnold, Business Manager, Denver
Pipefitters Local 208 and;
Tyler O'Connor, Partner, Crowell & Moring
LLP.
On March 5, 2025, the Subcommittee on Energy held a hearing
on H.R. 3109. The title of the hearing was ``Scaling for
Growth: Meeting the Demand for Reliable, Affordable
Electricity.'' The Subcommittee received testimony from:
Todd Brickhouse, CEO and General Manager,
Basin Electric Power Cooperative;
Asim Haque, Senior Vice President for
Governmental and Member Services, PJM;
Noel W. Black, Senior VP of Regulatory
Affairs, Southern Company and;
Tyler H. Norris, James B. Duke Fellow, Duke
University.
On March 25, 2025, the Subcommittee on Energy held a
hearing on H.R. 3109. The title of the hearing was ``Keeping
the Lights On: Examining the State of Regional Grid
Reliability.'' The Subcommittee received testimony from:
Gordon van Welie, President and Chief
Executive Officer, ISO New England;
Richard J. Dewey, President and Chief
Executive Officer, New York Independent System
Operator;
Manu Asthana, President and Chief Executive
Officer, PJM Interconnection LLC;
Jennifer Curran, Senior Vice President for
Planning and Operations, Midcontinent ISO;
Lanny Nickell, Chief Operating Officer,
Southwest Power Pool;
Elliot Mainzer, President and Chief
Executive Officer, California Independent System
Operator and;
Pablo Vegas, President and Chief Executive
Officer, Electric Reliability Council of Texas, Inc.
On April 9, 2025, the Committee on Energy and Commerce held
a full committee hearing on H.R. 3109. The title of the hearing
was ``The Energy Needs for Advancing American Technological
Leadership.'' The Committee received testimony from:
Eric Schmidt, Chair, Special Competitive
Studies Project;
Manish Bhatia, Executive Vice President of
Global Operations, Micron Technology;
Alexander Wang, Founder and Chief Executive
Officer, Scale AI, and;
David Turk, Distinguished Visiting Fellow,
Center on Global Energy Policy, Columbia University.
On April 30, 2025, the Subcommittee on Energy held a
legislative hearing on H.R. 3109. The title of the hearing was
``Assuring Abundant, Reliable American Energy to Power
Innovation.'' The Subcommittee received testimony from:
Mike Goff, Acting Undersecretary of Energy,
U.S. Department of Energy;
David L. Morenoff, Acting General Counsel,
Federal Energy Regulatory Commission;
Terry Turpin, Director, Office of Energy
Projects, Federal Energy Regulatory Commission;
Jim Matheson, Chief Executive Officer,
National Rural Electric Cooperative Association;
Amy Andryszak, President and Chief Executive
Officer, Interstate Natural Gas Association of America;
Todd A. Snitchler, President and Chief
Executive Officer, Electric Power Supply Association
and;
Kim Smaczniak, Partner, Roselle LLP.
COMMITTEE COST ESTIMATE
Pursuant to clause 3(d)(1) of rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974.
EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 3109 contains no earmarks, limited
tax benefits, or limited tariff benefits.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
Section 1 provides a short title of ``Researching Efficient
Federal Improvements for Necessary Energy Refining (REFINER)
Act.''
Section 2. Report on petrochemical refineries
Section 2 requires the Secretary of Energy to direct the
National Petroleum Council to submit a report on petrochemical
refineries within 90 days of enactment. The report must include
the contributions of petrochemical refineries to energy
security in the United States, the current capacity of
refineries, opportunities to expand existing refinery capacity,
and risks to petrochemical refineries in the United States. The
report must also assess Federal or State executive actions,
regulations, or policies that contribute to a decline in
refinery capacity.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.
MINORITY, ADDITIONAL, OR DISSENTING VIEWS
H.R. 3109 would require the National Petroleum Council
(NPC) to submit a report to Congress and the Department of
Energy (DOE) on issues faced by petrochemical refineries in the
United States. However, by requiring the NPC to write the
report, as opposed to DOE, the bill biases the outcome of the
process it creates from the start. The NPC is a federal
advisory committee comprised of members of the oil and gas
industries. Its voice is the voice of the oil and gas industry,
not that of a neutral arbiter. This bill would not ask for a
neutral analysis--rather, it would ask for the fossil fuel
industry's take on an issue that it stands to profit from.
Additionally, the bill continues to exclude the 2015
lifting of the crude oil export ban from the report it
requires. That lifting of the export ban was done by statute,
not by ``Federal or State executive actions, regulations, or
policies . . .''\1\ that would comprise the scope of the
report. In the decade since the ban was lifted, refining
capacity along the East Coast has suffered, decreasing by a
third, even as gasoline and diesel prices have increased.\2\
This bill purports to analyze the drivers of refinery market
dynamics but excludes one of the most important factors.
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\1\42 U.S.C. Sec. 6212a; H.R. 3109.
\2\Energy Information Administration, Refinery Capacity Report
(June 20, 2025); Energy Information Administration, Weekly East Coast
All Grades All Formulations Retail Gasoline Prices (Aug. 26, 2025);
Energy Information Administration, Weekly East Coast No 2 Diesel Retail
Prices (Aug. 26, 2025).
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Finally, no discussion of the bill would be complete
without pointing out the devastation that the Trump
Administration has caused at DOE. Under Secretary of Energy
Chris Wright, DOE has lost 3,500 employees to deferred
resignations and firings of probationary employees, and could
lose even more through future reductions in force.\3\ The bill
would require the NPC to submit the study to DOE, but it is
completely unclear whether DOE would have sufficient staff
capacity or resources to do anything about the bill's findings.
Any attempt to catalogue potential DOE actions that have harmed
the refining sector should, at the bare minimum, ensure that
DOE has sufficient resources to act on its recommendations.
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\3\DOE Clarifies Position on Staffing Departures, E&E News (May 12,
2025).
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For the reasons stated above, I oppose this legislation.
Frank Pallone, Jr.,
Ranking Member.
[all]