Bill · S. 5458· Senate(119-S-5458)
Supply Relief and Domestic Production Cost Reduction Act
- Introduced
- 9/22/2026
- Last activity
- 9/22/2026 — Read twice and referred to the Committee on Energy and Natural Resources.
- Sponsored by
- Tom Cotton
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill aims to lower energy supply shortages and consumer fuel costs by reducing production costs and regulatory barriers for domestic oil and gas producers. It sets up rules for certifying supply shortage periods based on fuel prices, inventory levels, or emergencies. During these shortage periods, the bill provides temporary royalty relief, reduced lease rentals, and lower minimum bids for Federal oil and gas lands. It also extends lease terms when operations are delayed and requires producers to certify how they use this financial relief. Finally, the legislation mandates reports to Congress and a review by the Government Accountability Office to check if the law successfully increased supply and lowered costs.
Yes· 3 of 14
Is this likely to lower the price at the pump?+5
The legislation specifically targets high consumer fuel costs by attempting to lower supply constraints and boost domestic production.
Would business owners be better off under this?+4
Upstream oil and gas producers and associated businesses benefit significantly from reduced royalties, rentals, and fees.
Is this likely to slow the rise in prices?+4
The bill aims to lower consumer fuel and energy costs by reducing production cost barriers and increasing domestic supply.
The opposite· 3 of 4
Does this reduce how much oil, gas and coal is produced?-8
The primary explicit goal and mechanism of the bill is to increase domestic fossil fuel production by lowering costs and barriers.
Does this cut the pollution that drives climate change?-5
The bill encourages increased domestic production and consumption of fossil fuels, which runs counter to reducing carbon emissions.
Does this better protect air, water and wildlife?-4
Streamlining leasing and permitting requirements for oil and gas production may weaken oversight and safeguards for public lands.
Who it would affect, and how
Potential Positive Impacts for People
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Royalty Rate Reductions for Marginal Wells: Section 201(c) sets the royalty rate to zero percent for marginal wells on Federal land during a supply shortage period. This could benefit small operators and workers by keeping low-yielding wells active and preventing them from shutting down.
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Lower Lease Rental and Minimum Bid Costs: Section 202 reduces rental payments by 50 percent and lowers the minimum acceptable lease bid to $2 per acre during shortage periods. This could help lower the financial burden for producers who certify they will use the savings for domestic production activities.
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Streamlined Administrative Fees: Section 202(c) waives, reduces, or defers nonessential administrative fees for permits and rights-of-way during a shortage. This provision could cut red tape for energy companies working to bring resources to market more quickly.
Potential Negative Impacts for People
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Reduced Federal Revenues from Lower Royalties: Section 201 lowers royalty rates to 8 percent on onshore Federal lands and slashes rates for new production on existing leases by 50 percent during supply shortages. This could mean significantly less money going into public funds that rely on these federal royalties.
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Automatic Approval Loopholes: Section 203(b)(3)(B) dictates that if the Secretary fails to approve or deny a royalty relief application within 30 days, it is automatically approved for 24 months. This removes careful government review and could lead to rushed decisions without proper oversight.
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Lease Extensions Without Added Public Compensation: Section 301 extends the primary term of oil and gas leases by two years without requiring any additional bonus, rental, or fee payments from the lessee. This keeps public lands tied up for energy production longer without providing the public any extra financial compensation for the extended time.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+4Good For Farmers+3Good For Low Income Households+2Good For Middle Aged+2Good For Middle Class Households+2Good For Seniors+2Good For Veterans+2
- Economy And Finance
- Improves Small Business Support+4Reduces Inflation+4Improves Economic Growth+3Increases Job Creation+3Reduces Government Spending-2
- Environment Energy And Infrastructure
- Reduces Gas Prices+5Improves Rural Development+2Reduces Fossil Fuel Production-8Reduces Carbon Emissions-5Improves Environmental Protections-4
- Governance And Ideology
- Increases Federal Power+3
- 9/22/2026
- Read twice and referred to the Committee on Energy and Natural Resources.
- Introduced in Senate