Tom Cotton (R-AR)
Supply Relief and Domestic Production Cost Reduction Act
A Republican bill with no cosponsors
Last activity — Read twice and referred to the Committee on Energy and Natural Resources.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- 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
- Scored +5
Is this likely to lower the price at the pump?
The legislation specifically targets high consumer fuel costs by attempting to lower supply constraints and boost domestic production.
- Scored +4
Would business owners be better off under this?
Upstream oil and gas producers and associated businesses benefit significantly from reduced royalties, rentals, and fees.
- Scored +4
Is this likely to slow the rise in prices?
The bill aims to lower consumer fuel and energy costs by reducing production cost barriers and increasing domestic supply.
The opposite· 3 of 4
- Scored -8
Does this reduce how much oil, gas and coal is produced?
The primary explicit goal and mechanism of the bill is to increase domestic fossil fuel production by lowering costs and barriers.
- Scored -5
Does this cut the pollution that drives climate change?
The bill encourages increased domestic production and consumption of fossil fuels, which runs counter to reducing carbon emissions.
- Scored -4
Does this better protect air, water and wildlife?
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
-
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.
-
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.
-
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
-
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.
-
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.
-
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. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would business owners be better off under this? — Upstream oil and gas producers and associated businesses benefit significantly from reduced royalties, rentals, and fees. Would farmers be better off under this? — Agricultural users of fuel, natural gas, and electricity benefit from provisions aimed at lowering consumer fuel and energy costs. Would households on low incomes be better off under this? — Lowering energy and fuel costs helps reduce cost-of-living burdens for low-income households. Would people in middle age be better off under this? — Lower fuel costs could benefit working-age individuals who commute and consume energy regularly. Would middle-income households be better off under this? — Lower consumer fuel prices benefit middle-class households with transportation and utility expenses. Would people over 65 be better off under this? — Reduced home heating and energy costs can provide financial relief for fixed-income seniors. Would veterans be better off under this, taking everything together? — Veterans benefit generally from lower overall energy and fuel costs.
- Economy And Finance
- Does this make it easier to run a small business? — Royalty reductions for marginal wells and lower lease costs provide direct financial relief to smaller oil and gas operators. Is this likely to slow the rise in prices? — The bill aims to lower consumer fuel and energy costs by reducing production cost barriers and increasing domestic supply. Is this likely to grow the economy? — Streamlining permitting and offering temporary royalty and lease relief is intended to stimulate the domestic energy sector. Is this likely to create jobs? — The bill incentivizes domestic oil and gas production activities, which can lead to increased employment and field-service opportunities. Does this reduce what the federal government spends? — Waiving, reducing, or deferring administrative fees and lowering rental payments reduces federal revenues collected.
- Environment Energy And Infrastructure
- Is this likely to lower the price at the pump? — The legislation specifically targets high consumer fuel costs by attempting to lower supply constraints and boost domestic production. Does this invest in rural communities? — Increased upstream oil and gas activity can bring economic investment to rural areas where extraction takes place. Does this reduce how much oil, gas and coal is produced? — 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? — 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? — Streamlining leasing and permitting requirements for oil and gas production may weaken oversight and safeguards for public lands.
- Governance And Ideology
- Does this give the federal government more power? — The bill creates federal mechanisms, timelines, and reporting requirements for managing domestic energy supply shortages and lease terms.
- 9/22/2026
- Read twice and referred to the Committee on Energy and Natural Resources.
- Introduced in Senate