Supply Relief and Domestic Production Cost Reduction Act
Creates temporary federal royalty, lease-cost, and permitting relief for oil and gas producers during certified supply shortages.
In the Senate Energy and Natural Resources Committee since Sept. 22, 2026, 13 days after it was introduced. Most bills never leave committee.
- INTRODUCEDINTROSEP 22, 2026
- COMMITTEECOMM.IN COMMITTEE
- SENATESENATE—
- HOUSEHOUSE—
- LAWLAW—
What the bill would do, and why it matters
Energy supply and fuel prices can be affected by production costs, shortages, and delays in getting projects approved. The bill would create temporary federal royalty, lease-payment, and permitting relief when the Energy Secretary certifies a supply shortage. Producers would have to certify how they use the relief, and agencies would report on its effects.
- INTRODUCED ONLY This bill has been introduced and possibly referred to a committee, but it has not passed any vote. Most introduced bills never become law — they die in committee without a hearing.
- DATA NOTE No Congressional Research Service summary was available.
- Tie relief to certified supply shortages
The Energy Secretary would certify a shortage period if one of several conditions exists, including fuel prices more than 15 percent above their five-year average for at least 30 consecutive days, low inventories, production constraints, or an energy emergency. A certification would last 180 days and could be extended in periods of up to 180 days.
- Reduce federal royalty and lease costs
During a shortage period, onshore federal lease royalties would be capped at 8 percent, marginal wells on federal land would pay no royalty for 24 months, and royalties on qualifying new production from existing leases would be cut by 50 percent for its first 36 months. The bill would also cut qualifying lease rentals by 50 percent, set minimum bids at $2 per acre, and allow certain administrative fees to be waived, reduced, or deferred.
- Speed relief and extend lease terms
For federal leases in designated supply-constrained basins, the Interior Secretary would have 30 days to decide a royalty-relief application; if the deadline is missed, the application would be approved for 24 months. During a shortage period, qualifying delays outside a lessee’s reasonable control would also extend a lease’s primary term by two years without an added payment.
- Require certifications and public reviews
Producers receiving relief would certify that it supports domestic production or related activities, including reducing delivered energy costs. The Energy Secretary would report on the effects of the law and approvals, and the Comptroller General would review whether relief increased supply, lowered production costs, or reduced consumer prices.
The bill’s stated purpose is to increase domestic energy supply and reduce consumer fuel costs by lowering production costs and permitting barriers during periods of supply stress. It links the relief to shortage conditions and to producers’ stated uses for it.
The practical stakes include federal revenue from royalties and lease payments, the pace of some permitting and production decisions, and whether any cost savings reach energy customers. The bill preserves environmental, safety, and reclamation obligations, but its reports would assess whether the relief increased supply or reduced consumer prices.
Written from the bill text.
The path it took, step by step
- IntroducedSEP 22, 2026SENATESEP 22, 2026By Sen. CottonReferred to Energy and Natural Resources
- SAME DAYNOWSenate committeeSEP 22, 2026ENERGY & NATURAL RESOURCES NOWSEP 22, 2026In committee for 13 daysNo hearing yet
- 13 DAYS SO FARPassed the Senate—SENATE FLOOR—Not scheduled
- House committee—HOUSE—
- Passed the House—HOUSE FLOOR—Not scheduled
- Resolve differencesONLY IF NEEDEDBOTH CHAMBERSONLY IF NEEDEDSkipped if the other chamber passes the same text
- Signed into law—PRESIDENT—10 days to sign or veto
- SEP 222026SEP 22, 2026REFERREDRead twice and referred to the Committee on Energy and Natural Resources.
- SEP 222026SEP 22, 2026INTRODUCEDSENATEIntroduced in Senate
At day 13, this bill is already older than 3% of the laws passed this Congress were when they were signed.
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