The Buy Low and Sell High Act creates a new strategy for managing U.S. oil and fuel supplies to help keep prices down. Here's what it does in practical terms:

The government will build up a special "Economic Petroleum Reserve" of up to 350 million barrels of crude oil by buying domestic oil when prices are low (capped at $60 per barrel). When oil prices spike above $90 per barrel for a week or more, the government can sell from this reserve to increase supply and push prices back down. The money made from these sales gets reinvested in clean energy programs and infrastructure.

The bill also creates a new network of regional fuel reserves across the country holding gasoline and diesel—up to 250 million barrels total. These can be tapped during regional fuel shortages to stabilize local prices. The government can only sell these fuels during genuine supply emergencies, and sales are restricted to legitimate fuel distributors, not to countries under U.S. sanctions like China, Russia, Iran, or North Korea.

Additionally, the law pushes the federal government to go electric. All federal vehicles must be electric or alternative-fuel by 2050, with increasing percentages required each year. It also funds state programs to build electric vehicle charging networks and modernize power grids, plus supports oil refining in Western Hemisphere allies to reduce dependence on hostile nations. The overall goal is to stabilize fuel prices for consumers while transitioning toward cleaner energy and strengthening energy security.

Buy Low and Sell High Act

Pallone, Frank

Buy Low and Sell High Act This bill revises requirements concerning the Strategic Petroleum Reserve (SPR) and sets forth provisions to reduce the demand for petroleum fuel and increase fuel supply. For example, the bill directs the Department of Energy (DOE) to establish within the SPR an Economic Petroleum Reserve of up to 350 million barrels of crude oil. DOE must also establish a national network of Strategic Refined Petroleum Product Reserves to store up to 250 million barrels of gasoline and diesel fuel, which may be sold when there is a severe fuel supply interruption within the district in which the reserve is located. In addition, the bill increases the cap on the amount of barrels of petroleum distillate that may be stored in the Northeast Home Heating Oil Reserve from two million to four million. It also establishes limits on the sale and exportation of petroleum products from such reserves. Further, the bill establishes provisions concerning electrifying the transportation sector, zero-emission vehicles, and a program to increase the amount of crude oil refined in oil refineries in certain countries in the Western Hemisphere.