Summary of HR 3109 - REFINER Act

Overview

Bill Number: HR 3109

Title: Researching Efficient Federal Improvements for Necessary Energy Refining Act (REFINER Act)

Introduced: April 30, 2025

Status: Reported by the Committee on Energy and Commerce (H. Rept. 119-267)

Primary Sponsor: Rep. Robert E. Latta (R-OH)

Cosponsor: Rep. Neal P. Dunn

Purpose and Intent

The REFINER Act aims to enhance the understanding of the petrochemical refining sector in the United States by requiring the Secretary of Energy to direct the National Petroleum Council to produce a comprehensive report on the state of petrochemical refineries. This initiative seeks to address declining refining capacity and its implications for energy security and fuel prices.

Key Provisions

• Report Requirement: The Secretary of Energy must instruct the National Petroleum Council to conduct a detailed analysis of petrochemical refineries in the U.S. This report will focus on current capacities, challenges faced by the industry, and potential strategies for improvement.
• Focus on Capacity Decline: The bill highlights the significant decrease in U.S. refining capacity, which has dropped by over one million barrels per day from 2020 to 2022, and the reduction in the number of operable refineries from 135 to 128 during the same period.
• Addressing Regulatory Challenges: The legislation acknowledges that state policies, particularly in California, have contributed to refinery closures and reduced capacity, which could lead to increased gas prices and reliance on foreign imports.

Background and Need for Legislation

The refining sector is crucial for U.S. energy security, converting crude oil into essential petroleum products used in transportation, electricity generation, and chemical manufacturing. The bill is motivated by:
- A significant decline in refining capacity and the number of operational refineries.
- Conflicting federal policies that create uncertainty for investments in the refining industry.
- The need for updated data and analysis, as the last report on refining was published in 2004.

Impact

• Industry Stakeholders: The bill will primarily affect petrochemical refineries, energy producers, and consumers who rely on petroleum products.
• Energy Prices: By potentially increasing refining capacity and improving operational efficiency, the legislation aims to stabilize and reduce gasoline prices for consumers.
• Federal Policy Clarity: The report generated by this bill could provide clearer guidance for future federal policies affecting the refining sector.

Legislative Timeline

• April 30, 2025: Introduced in the House and referred to the Committee on Energy and Commerce.
• June 3, 2025: Referred to the Subcommittee on Energy.
• June 5, 2025: Subcommittee consideration and mark-up session held; forwarded to the full committee.
• June 25, 2025: Committee consideration and mark-up session held; ordered to be reported by a vote of 28-20.
• September 11, 2025: Reported by the Committee on Energy and Commerce and placed on the Union Calendar.

Conclusion

The REFINER Act represents a legislative effort to address the challenges facing the U.S. refining industry by mandating a thorough examination of its current state and future needs. By fostering a better understanding of refining capacity, the bill aims to enhance energy security and mitigate rising fuel costs for American consumers.