Washington, Oct 23 (SocialNews.XYZ) The United States plans to provide up to $150 million to expand petroleum production, storage and logistics at domestic refineries, using national defence funding powers to support fuel supplies, the Department of Energy announced.
President Donald Trump announced the plan on Thursday. The department said the proposed support would come through Title III of the Defense Production Act and was expected to increase production of gasoline, diesel, jet fuel and other petroleum products.
The department projected that the projects supported by the funding would collectively increase US refining output by millions of gallons a day. It did not provide a precise capacity figure, a breakdown by fuel or a schedule for achieving that increase.
“These Defense Production Act funds will be used strategically and in partnership with private industry to rapidly bolster America’s existing energy infrastructure,” Energy Secretary Chris Wright said in the announcement.
The department presented the initiative as an effort to strengthen both civilian fuel supplies and infrastructure critical to national defence. Its stated scope covers petroleum production, storage and logistics at refineries across the country.
Although the release’s headline referred to restarting an American refinery, the accompanying announcement did not identify the facility or describe its operating status. It also did not specify how much of the proposed funding would support a restart, as opposed to expanding capacity elsewhere.
The department said it would announce selections in the near future. It did not disclose the number of projects under consideration, the financial terms of the proposed assistance or the amount of private investment expected alongside federal support.
Wright said the administration intended to expand supplies of refined petroleum products and reduce costs for consumers.
Those statements describe the administration’s expected benefits. The announcement did not quantify a potential reduction in fuel prices or provide an assessment showing when consumers might see savings.
The department said $1 billion had been appropriated under legislation it calls the Working Families Tax Cuts for energy-related projects deemed critical to national security. The proposed refinery support would draw on the administration’s broader effort to use defence-related funding authorities for energy infrastructure.
Congress enacted the Defense Production Act in 1950 to give the president expanded authority to ensure that industrial resources are available for national defence. Its Title III authorities support the development and expansion of domestic production capabilities.
The Energy Department has also used the same funding framework for other energy projects. On October 19, Wright announced a commitment of up to $42 million to advance the proposed Constitution Pipeline, a 125-mile natural gas project running from Pennsylvania to New York.
Source: IANS
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