Title: Urging the use of the Defense Production Act of 1950 to expand short-term refinery capacity.
Policy area: Energy

Summary:
This resolution expresses the sense of the House of Representatives that Congress should support policies that increase oil refinery capacity to meet short-term fuel demands while considering the United States' long-term climate and sustainability goals. The resolution also expresses the sense that the President should provide targeted assistance to restart idled refineries.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 1184 Introduced in House (IH)]

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117th CONGRESS
  2d Session
H. RES. 1184

 Urging the use of the Defense Production Act of 1950 to expand short-
                        term refinery capacity.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 16, 2022

  Mr. Krishnamoorthi (for himself, Ms. Spanberger, and Ms. Davids of 
 Kansas) submitted the following resolution; which was referred to the 
 Committee on Energy and Commerce, and in addition to the Committee on 
 Financial Services, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                               RESOLUTION


 
 Urging the use of the Defense Production Act of 1950 to expand short-
                        term refinery capacity.

Whereas rising gasoline, diesel, and jet fuel prices are exacerbating inflation 
        and reducing the purchasing power of American consumers, especially low-
        income households;
Whereas historic fuel prices are due in large part to high oil prices, but a 
        global shortage of oil refining capacity has further driven up the cost 
        of refined petroleum products, causing fuel prices to outpace oil 
        prices;
Whereas global oil refining capacity is now over 3,000,000 barrels per day below 
        prepandemic levels, and domestic refining capacity in the United States 
        is currently around 1,000,000 barrels per day below prepandemic 
        capacity;
Whereas much like crude oil production, which declined precipitously during the 
        pandemic as demand for oil plummeted, demand for oil refineries also 
        plummeted, and many companies decided to shut down their refineries 
        rather than continue running at a loss;
Whereas, in 2020, the Shell refinery in Convent, Louisiana, capable of refining 
        211,146 barrels of crude oil per day, and the Marathon refinery in 
        Martinez, California, capable of refining 161,000 barrels per day, were 
        powered down due to low demand;
Whereas the Philadelphia Energy Solutions refinery, which had been offline 
        following an accident, was permanently shuttered, and the Phillips 66 
        refinery in Belle Chasse, Louisiana, which had suffered water damage 
        during Hurricane Ida, was similarly closed permanently;
Whereas oil production is recovering to prepandemic levels, but without enough 
        oil refining capacity, the refineries will act as a bottleneck, limiting 
        the supply of gasoline and keeping fuel prices elevated;
Whereas the ``crack spread'', the profit margin between crude oil and refined 
        fuels, has reached a near record high, but companies are not investing 
        in new refining capacity in the United States;
Whereas despite high profit margins and a shortage of refining capacity, several 
        refineries that were idled during the pandemic are now being permanently 
        decommissioned, contributing to record high gas prices and even higher 
        diesel prices;
Whereas while combating climate change will require a rapid reduction in the use 
        of fossil fuels, the United States is not yet in a position to 
        completely replace combustion engines with electric vehicles; and
Whereas a long-term expansion of oil production beyond prepandemic levels could 
        put us on a path to climate catastrophe, but restarting idled American 
        oil refineries for a limited time could reduce gas prices and cool 
        inflationary pressures without endangering our climate goals: Now, 
        therefore, be it
    Resolved, That it is the sense of the House of Representatives 
that--
            (1) any effort to increase the supply of oil and gas to 
        address urgent inflationary challenges must not be implemented 
        at the expense of the climate goals of the United States;
            (2) Congress should support policies to appropriately 
        increase refinery capacity as much as is necessary to meet 
        current fuel demands over the short-term, while continuing to 
        invest in policies that reduce reliance on fossil fuels over 
        the longer term; and
            (3) in order to ensure sufficient refining capacity to 
        reduce fuel prices and prevent fuel shortages in the near term, 
        the President should use authorities granted him by the Defense 
        Production Act of 1950 to provide targeted technical and 
        financial assistance to restart certain idled refineries for a 
        limited time.
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