Supply Relief and Domestic Production Cost Reduction Act

This bill lets the Secretary of Energy certify a "supply shortage period" when conditions such as fuel prices more than 15 percent above the 5-year average, low fuel inventories, or a presidential energy emergency exist. Certifications last 180 days and can be extended. During such a period, royalty rates on federal onshore oil and gas leases would be capped at 8 percent, set at 0 percent for low-producing (marginal) wells for 24 months, and cut by half for new production from existing leases. The bill also halves lease rental payments, sets the minimum lease bid at $2 per acre, extends lease terms by 2 years in cases of certain delays, and treats royalty relief applications in certain basins as approved if the government does not act within 30 days. Producers receiving relief must certify how it will be used, and federal agencies and the GAO must report to Congress on the results.

Full text and official record on Congress.gov

Sponsors

• Tom Cotton Republican sponsor
• 0 cosponsors