--- title: How Will Washington Choose Refinery Projects for $150 Million in DPA Funding? description: DOE has announced up to $150 million for refinery-related projects. Learn how selections should be evaluated and what results taxpayers should expect. image: https://americanimpact.org/hubfs/image-Oct-30-2026-09-02-33-4128-AM.jpg --- [![American Impact - Trimmed Logo one PNG](https://americanimpact.org/hs-fs/hubfs/American%20Impact%20-%20Trimmed%20Logo%20one%20PNG.png?width=1249&height=574&name=American%20Impact%20-%20Trimmed%20Logo%20one%20PNG.png "American Impact - Trimmed Logo one PNG")](https://americanimpact.org/) - [Home](https://americanimpact.org) - [About](https://americanimpact.org/about-american-impact) - [About the Foundation](https://americanimpact.org/about-the-american-impact-0) - [FAQs](https://americanimpact.org/frequently-asked-questions) - Issues - [Legislation](https://americanimpact.org/legislation) - [Monetary Policy](https://americanimpact.org/monetary-policy) - [Investing](https://americanimpact.org/investing) - [Entitlement Programs](https://americanimpact.org/entitlement-programs) - [Government Taxation, Spending, and Debt](https://americanimpact.org/government-taxation-spending-and-debt) - [Financial Literacy in the United States](https://americanimpact.org/financial-literacy) - [Articles](https://americanimpact.org/blog) - [Donate](https://americanimpact.org/donate) - [Charitable Solicitation Registration Statement](https://americanimpact.org/charitable-solicitation-registration-statement) [Contact Us](https://americanimpact.org/contact) # How Will Washington Choose Refinery Projects for $150 Million in DPA Funding? [American Impact](https://americanimpact.org/blog/author/american-impact) Nov 7, 2026, 3:00:00 PM ###### [Legislative Issues](https://americanimpact.org/blog/tag/legislative-issues) *Washington has announced up to* ***$150 million*** *for refinery-related projects, but recipients, award amounts, completion dates, and resulting fuel production remain undecided.* ## **What to Know** - DOE announced up to **$150 million** in Defense Production Act funding for domestic petroleum production, refining, storage, and logistics. - No final project selections had been announced as of October **30, 2026**. - A presidential determination authorizes purchases, purchase commitments, financial support, and other actions under DPA Title III. - DOE expects supported projects to add millions of gallons of daily refining output, but it has not published project-level estimates. - Added capacity may strengthen fuel supplies, but federal investment does not guarantee immediate reductions in retail prices. Federal officials want to use the Defense Production Act, or DPA, to increase supplies of gasoline, diesel, jet fuel, and other petroleum products. An[October 22 Energy Department announcement](https://www.energy.gov/articles/energy-department-use-defense-production-act-funding-restart-american-refinery-and-expand?utm_source=chatgpt.com) committed up to **$150 million** and said project selections would be announced later. Consumers should not mistake that announcement for new fuel already reaching service stations. Washington has not identified every recipient, disclosed individual award amounts, or provided construction and production schedules. Public value will depend on which bottlenecks receive support, how much private investment accompanies federal funding, and whether completed projects produce measurable additional fuel. ## **What Washington Has Authorized** A[presidential determination](https://www.whitehouse.gov/presidential-actions/2026/10/presidential-determination-pursuant-to-section-303-of-the-defense-production-act-of-1950-as-amended-on-domestic-petroleum-production-refining-and-logistics-capacity-c139/?utm_source=chatgpt.com) classified domestic petroleum production, refining, pipelines, storage, and marine terminals as resources essential to national defense. Financing constraints, long lead times, permitting obstacles, infrastructure bottlenecks, and supply-chain limitations supported that finding. DPA Title III can support industrial capacity through purchases, purchase commitments, financial assistance, and related tools. Such authority allows government to reduce part of the commercial risk attached to projects considered important to national security. It does not eliminate environmental reviews, operating permits, engineering requirements, or other applicable laws. DOE’s announcement covers more than restarting closed refineries. Eligible investment could potentially involve processing equipment, storage, terminals, or logistics needed to move petroleum and refined products. Specific eligibility requirements, application procedures, award amounts, and contract terms had not been published in the cited announcement. **![](https://americanimpact.org/hs-fs/hubfs/undefined-Nov-07-2026-07-17-44-6739-AM.png?width=691&height=356&name=undefined-Nov-07-2026-07-17-44-6739-AM.png)** *U.S. operable refining capacity declined by more than* ***250,000 barrels per day*** *during* ***2025****, via*[*U.S. Energy Information Administration*](https://www.eia.gov/TodayinEnergy/detail.php?id=67807&utm_source=chatgpt.com)*.* That broad authority makes project selection especially important. A refinery expansion, storage terminal, pipeline improvement, and restart proposal can each address a different constraint and produce different public benefits. ## **How Projects Should Be Compared** DOE has not announced the final scoring framework. Any proposed selection test must therefore be described as analysis rather than official policy. Public officials could begin by measuring additional output against federal cost. A project requesting **$20 million** to add **20,000 barrels per day** would present a different value proposition from one requesting the same amount for capacity that already exists but is temporarily unavailable. Evaluators should separate genuinely new production from maintenance that an operator would have financed without federal assistance. Speed also matters. Smaller modifications at operating facilities may deliver fuel sooner than restarting a site requiring extensive repairs, staffing, permits, and supply contracts. Geographic value should receive attention because an expansion in a well-connected refining center may affect markets differently from added capacity in a region with limited pipelines and import options. | **Proposed analytical test** | **Question for evaluators** | **Evidence to require** | | --- | --- | --- | | Additional capacity | How much usable capacity would federal support add? | Engineering estimate and baseline capacity | | Incremental production | Will additional fuel actually be produced? | Product-level output commitment | | Federal cost efficiency | How much public funding is required per added barrel? | Award request and private cost share | | Delivery speed | When will production begin? | Construction and commissioning milestones | | Regional resilience | Does the project address a documented supply constraint? | Pipeline, storage, and market analysis | | Commercial necessity | Would the project proceed without DPA support? | Financing history and applicant certification | **GAO’s “Selected Agencies’ Use of DPA Authorities, Fiscal Years 2018–2024” table** *Federal agencies used DPA Title III for* ***222*** *investments and one loan worth a combined* ***$3.6 billion*** *from fiscal years* ***2018–2024****, via*[*U.S. Government Accountability Office*](https://files.gao.gov/reports/GAO-25-108497/index.html?utm_source=chatgpt.com)*.* Comparable disclosure would help Congress determine whether DOE selected projects with the strongest national-security and supply benefits rather than the strongest political connections. ## **Capacity Does Not Automatically Equal Production** Nameplate capacity measures what equipment can process under defined conditions. Actual production depends on crude supplies, operating reliability, maintenance schedules, product demand, transportation access, and profitability. Recent conditions also limit the potential for an immediate surge.[EIA reported](https://www.eia.gov/todayinenergy/detail.php?id=68344&utm_source=chatgpt.com) that U.S. refinery utilization averaged more than **95%** between May and September **2026**, its highest rate for those months since **1998**. Reuters separately reported that many refineries were already operating near their limits while officials sought additional diesel production.[U.S. Energy Information Administration (EIA)](https://www.eia.gov/todayinenergy/detail.php?id=68344&utm_source=chatgpt.com) **![](https://americanimpact.org/hs-fs/hubfs/undefined-Nov-07-2026-07-17-44-1759-AM.png?width=697&height=341&name=undefined-Nov-07-2026-07-17-44-1759-AM.png)** *U.S. refineries averaged more than* ***95%*** *utilization from May through September* ***2026****, showing limited immediate slack at operating plants, via*[*U.S. Energy Information Administration*](https://www.eia.gov/todayinenergy/detail.php?id=68344&utm_source=chatgpt.com)*.* High utilization does not make expansion unnecessary. Instead, it shows why policymakers must distinguish short-term operating changes from projects that create durable capacity. Restarting an idle unit or removing a processing bottleneck may increase output, but construction and commissioning can still take months or years. ## **How Washington Should Measure Results** DOE says the funding is expected to increase output by millions of gallons per day. Published material does not divide that estimate among projects or explain the baseline used to calculate it. Useful performance measures could include capacity installed, additional crude processed, gallons of gasoline or diesel produced, storage added, downtime reduced, and logistics constraints removed. Reporting should compare promised outcomes with actual performance after completion. Costs also deserve separate measurement. DOE should disclose federal dollars obligated, private capital committed, project delays, cost overruns, and any funds recovered when recipients miss contractual requirements. Geographic and product-level reporting would show whether investment strengthens vulnerable markets or simply expands production where supply is already abundant. **![](https://americanimpact.org/hs-fs/hubfs/undefined-Nov-07-2026-07-17-43-9131-AM.png?width=410&height=506&name=undefined-Nov-07-2026-07-17-43-9131-AM.png)** *One* ***42-gallon*** *barrel of crude typically produces approximately* ***19–20 gallons*** *of gasoline,* ***11–13 gallons*** *of distillate fuel, and* ***3–5 gallons*** *of jet fuel, via*[*U.S. Energy Information Administration*](https://www.eia.gov/energyexplained/oil-and-petroleum-products/refining-crude-oil.php?utm_source=chatgpt.com)*.* Such reporting would translate technical refinery improvements into quantities policymakers and households can understand. ## **What Added Capacity Could Mean for Consumers** Additional refining can improve supply resilience and reduce the severity of shortages when plants fail or international supplies tighten. Regional benefits may be greater where limited pipelines make replacement fuel difficult to obtain. Retail prices still depend on more than domestic refining capacity. Crude-oil prices, seasonal fuel specifications, transportation costs, taxes, inventories, international demand, and unexpected outages all influence what drivers pay. A federally supported project might strengthen supply without producing a visible or immediate price reduction. Consumers should therefore judge the program by measurable additions to reliable fuel supply, not by promises that a single award will lower every household’s gasoline or diesel costs. ## **Wrap Up** DOE has established a potential **$150 million** funding pool, not a completed refinery-expansion program. Recipient names, award amounts, project schedules, and verified output remain outstanding. Credible selections should connect federal support to additional production, faster delivery, regional resilience, private investment, and transparent performance commitments. Public reporting after awards will determine whether DPA funding expands useful capacity or merely subsidizes projects without producing corresponding fuel-supply benefits. 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