This bill directs the Department of Energy to study the feasibility and structure of establishing a national strategic propane reserve to secure the nation's supply.
Gary Peters
Senator
MI
The Securing Our Propane Supply Act directs the Department of Energy to conduct a comprehensive study on the feasibility and impact of establishing a national strategic propane reserve. This study must analyze supply chain risks, storage logistics, market effects, and consumer impact within 180 days. Following the study, the DOE must develop and submit a formal implementation plan to Congress regarding the creation of this reserve or alternative solutions.
This bill, officially titled the "Securing Our Propane Supply Act," doesn't actually create a new national reserve—it commissions a deep-dive study to see if we should. Essentially, it tells the Department of Energy (DOE) to figure out, within 180 days, whether setting up a national strategic propane reserve, separate from the existing Strategic Petroleum Reserve, is a good idea and how it would work.
This isn't just a quick desk review; the DOE has to conduct a comprehensive study (SEC. 2). They are required to map out the current U.S. propane supply chain, look at past regional shortages (think those brutal Midwest winters where prices spiked), and assess the risks of future disruptions. For people who rely on propane for heat—especially in rural areas or for certain farm operations—this is crucial. The study must specifically evaluate the impact on consumers and break down propane usage state-by-state, identifying who would be the likely buyer if the reserve ever released fuel.
If the study greenlights the idea, the DOE has to figure out the logistics. This includes evaluating the best locations for storage, how much propane should be stockpiled, and whether existing infrastructure can handle moving the fuel quickly during an emergency. They must also look at how to acquire the propane without throwing the market into chaos, considering whether to use existing unused storage capacity or build entirely new facilities. This is where the potential cost to taxpayers comes in, which the study must analyze upfront.
The bill forces the DOE to consider the real-world economic impact. They must assess how setting up and running a massive reserve would affect overall propane prices and supply. Crucially, the study also requires the DOE to identify and evaluate alternatives to a national reserve. This is a smart check—it ensures the government doesn't jump into creating a costly new program if a simpler fix, like better pipeline capacity or regulatory changes, could solve the problem.
After the 180-day study is complete, the Secretary of Energy then gets another 180 days to develop a formal implementation plan based on the findings and recommendations. Both the study and the plan must be submitted to key Congressional committees. One specific detail worth noting: the Secretary is mandated to put procedures in place to protect "classified details related to U.S. energy security vulnerabilities" before submitting the report. While protecting sensitive information is necessary, this clause gives the DOE significant discretion to redact information from the public, which could limit transparency around the final cost and structure of any proposed reserve.