I

103D CONGRESS

2D SESSION H. R. 4750

To amend the Energy Policy and Conservation Act to manage the Strategic

Petroleum Reserve more effectively, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 13, 1994

Mr. SHARP introduced the following bill; which was referred to the Committee

on Energy and Commerce

A BILL

To amend the Energy Policy and Conservation Act to manage the Strategic Petroleum Reserve more effectively,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Energy Policy and

5 Conservation Act Amendments of 1994’’.

6 SEC. 2. TABLE OF CONTENTS AND STATEMENT OF PUR7 POSES.

8 (a) The item in the table of contents of the Energy

9 Policy and Conservation Act relating to section 159 is

10 amended to read as follows:
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‘‘Sec. 159. Development, operations, and maintenance of the Reserve.’’.

1 (b) Section 2 of the Energy Policy and Conservation

2 Act (42 U.S.C. 6201) is amended—

3 (1) in paragraph (1) by striking ‘‘standby au4 thority to the President, subject to congressional re5 view, to impose rationing, to reduce demand for en6 ergy through the implementation of energy conserva7 tion plans, and’’ and inserting in lieu thereof ‘‘au8 thority to the President’’; and

9 (2) by striking paragraphs (3) and (6) and re10 designating paragraphs (4), (5), (7), and (8) as

11 paragraphs (3), (4), (5), and (6), respectively.

12 SEC. 3. TITLE I AMENDMENTS.

13 Title I of the Energy Policy and Conservation Act

14 is amended—

15 (1) by striking section 102 (42 U.S.C. 6211);

16 (2) in section 151 (42 U.S.C. 6231)—

17 (A) in subsection (a) by striking ‘‘limited’’

18 and by striking ‘‘short-term’’; and

19 (B) by amending subsection (b) to read as

20 follows:

21 ‘‘(b) It is the policy of the United States to provide

22 for the creation of a Strategic Petroleum Reserve for the

23 storage of up to 1,000,000,000 barrels of petroleum prod24 ucts to reduce the impact of disruptions in supplies of pe-
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1 troleum products or to carry out obligations of the United

2 States under the international energy program.’’;

3 (3) in section 152 (42 U.S.C. 6232)—

4 (A) by striking paragraph (1) and redesig5 nating paragraphs (2) through (11) as para6 graphs (1) through (10), respectively; and

7 (B) in paragraph (10) (as so redesignated

8 by subparagraph (A) of this paragraph) by

9 striking ‘‘, the Early Storage Reserve’’;

10 (4) by striking section 153 (42 U.S.C 6233);

11 (5) in section 154 (42 U.S.C. 6234)—

12 (A) by amending subsection (a)(1) to read

13 as follows:

14 ‘‘(a)(1) A Strategic Petroleum Reserve for the stor15 age of up to 1,000,000,000 barrels of petroleum products

16 shall be created pursuant to this part.’’;

17 (B) in subsection (a)(2)(D), by striking

18 ‘‘160(h)’’ and inserting in lieu thereof

19 ‘‘160(e)’’;

20 (C) by amending subsection (b) to read as

21 follows:

22 ‘‘(b) The Secretary, acting through the Strategic Pe23 troleum Reserve Office and in accordance with this part,

24 shall exercise authority over the development, operation,

25 and maintenance of the Reserve.’’; and
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1 (D) by striking subsections (c), (d), and

2 (e);

3 (6) by striking section 155 (42 U.S.C. 6235);

4 (7) in section 156(b) (42 U.S.C. 6236(b)) by

5 striking ‘‘To implement the Early Storage Reserve

6 Plan or the Strategic Petroleum Reserve Plan which

7 has taken effect pursuant to section 159(a), the’’

8 and inserting in lieu thereof ‘‘The’’;

9 (8) by amending section 157 (42 U.S.C

10 6237)—

11 (A) in subsection (a), by striking ‘‘The

12 Strategic Petroleum Reserve Plan shall provide

13 for the establishment and maintenance of’’ and

14 inserting in lieu thereof ‘‘The Secretary shall

15 establish and maintain as part of the Strategic

16 Petroleum Reserve’’; and

17 (B) in subsection (b), by striking ‘‘To im18 plement the Strategic Petroleum Reserve Plan,

19 the Secretary shall accumulate and maintain’’

20 and inserting in lieu thereof ‘‘The Secretary

21 shall establish and maintain as part of the

22 Strategic Petroleum Reserve’’;

23 (9) by striking section 158 (42 U.S.C 6238);

24 (10) in section 159 (42 U.S.C. 6239)—
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1 (A) by amending the section head to read

2 as follows:

3 ‘‘DEVELOPMENT, OPERATIONS, AND MAINTENANCE OF

4 THE RESERVE’’;

5 (B) by striking subsections (a), (b), (c),

6 (d), (e), (h), and (i), and redesignating sub7 sections (f), (g), (j), (k), and (l) as subsections

8 (a), (b), (c), (d), and (e), respectively;

9 (C) by amending subsection (a) (as so re10 designated by subparagraph (B) of this para11 graph) to read as follows:

12 ‘‘(a) In order to develop, operate, or maintain the

13 Strategic Petroleum Reserve, the Secretary may—

14 ‘‘(1) issue rules, regulations, or orders;

15 ‘‘(2) acquire by purchase, condemnation, or oth16 erwise, land or interests in land for the location of

17 storage and related facilities;

18 ‘‘(3) construct, purchase, lease, or otherwise ac19 quire storage and related facilities;

20 ‘‘(4) use, lease, maintain, sell, or otherwise dis21 pose of storage and related facilities acquired under

22 this part, under such terms and conditions as the

23 Secretary considers necessary and appropriate;

24 ‘‘(5) acquire, subject to the provisions of section

25 160, by purchase, exchange, or otherwise, petroleum
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1 products for storage in the Strategic Petroleum Re2 serve, including the Regional Petroleum Reserve;

3 ‘‘(6) store petroleum products in storage facili4 ties owned and controlled by the United States or in

5 storage facilities owned by others if those facilities

6 are subject to audit by the United States;

7 ‘‘(7) execute any contracts necessary to develop,

8 operate, or maintain the Strategic Petroleum

9 Reserve;

10 ‘‘(8) require an importer of petroleum products

11 or refiner to acquire and to store and maintain, in

12 readily available inventories, petroleum products in

13 the Industrial Petroleum Reserve, under section 156;

14 ‘‘(9) require the storage of petroleum products

15 in the Industrial Petroleum Reserve, under section

16 156, on such reasonable terms as the Secretary may

17 specify, in storage facilities owned and controlled by

18 the United States or in storage facilities other than

19 those owned by the United States if those facilities

20 are subject to audit by the United States;

21 ‘‘(10) require the maintenance of the Industrial

22 Petroleum Reserve; and

23 ‘‘(11) bring an action, when the Secretary con24 siders it necessary, in any court having jurisdiction

25 over the proceedings, to acquire by condemnation
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1 any real or personal property, including facilities,

2 temporary use of facilities, or other interests in land,

3 together with any personal property located on or

4 used with the land.’’;

5 (D) in subsection (g)—

6 (i) by striking ‘‘implementation’’ and

7 inserting in lieu thereof ‘‘development’’;

8 and

9 (ii) by striking ‘‘Plan’’;

10 (E) by amending subsection (c) (as so re11 designated by subparagraph (B) of this para12 graph) to read as follows:

13 ‘‘(c) When the Secretary determines that a

14 750,000,000 barrel inventory can reasonably be expected

15 to be reached in the Reserve within 5 years, the Secretary

16 shall submit to the Congress a plan for expansion of the

17 Strategic Petroleum Reserve to a capacity of

18 1,000,000,000 barrels.’’; and

19 (F) by amending subsection (e) (as so re20 designated by subparagraph (B) of this para21 graph) to read as follows:

22 ‘‘(e) During any period in which drawdown and dis23 tribution are being implemented, the Secretary may issue

24 rules, regulations, or orders to implement the drawdown

25 and distribution of the Strategic Petroleum Reserve, with-
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1 out regard to the requirements of section 553 of title 5,

2 United States Code, and section 501 of the Department

3 of Energy Organization Act (42 U.S.C. 7191).’’;

4 (11) in section 160 (42 U.S.C. 6240)—

5 (A) in subsection (a), by striking ‘‘The

6 Secretary’’ and all that follows through ‘‘trans7 port, or exchange’’ and inserting in lieu thereof

8 ‘‘For the purpose of implementing the Strategic

9 Petroleum Reserve, the Secretary may acquire,

10 place in storage, transport, or exchange’’;

11 (B) in subsection (b)—

12 (i) by striking ‘‘, including the Early

13 Storage Reserve’’; and

14 (ii) by striking paragraph (2) and re15 designating paragraphs (3) through (5) as

16 paragraphs (2) through (4), respectively;

17 and

18 (C) by striking subsections (c), (d), and (e)

19 and redesignating subsections (f), (g), and (h)

20 as subsections (c), (d), and (e), respectively;

21 (12) in section 161 (42 U.S.C. 6241)—

22 (A) by striking subsections (b) and (c) and

23 redesignating subsections (d) through (i) as

24 subsections (b) through (g), respectively;
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1 (B) by amending subsection (b)(1) (as so

2 redesignated by subparagraph (A) of this para3 graph) to read as follows:

4 ‘‘(b)(1) No drawdown and distribution of the Strate5 gic Petroleum Reserve may be made unless the President

6 has found drawdown and distribution is required by a se7 vere energy supply interruption or by obligations of the

8 United States under the international energy program.’’;

9 (C) by amending subsection (c) (as so re10 designated by subparagraph (A) of this para11 graph) to read as follows:

12 ‘‘(c)(1) The Secretary shall sell any petroleum prod13 uct withdrawn from the Strategic Petroleum Reserve at

14 public sale to the highest qualified bidder in the amounts

15 and for the period the Secretary considers appropriate,

16 and after a notice of sale the Secretary considers appro17 priate.

18 ‘‘(2) The Secretary may cancel in whole or in part

19 any offer to sell petroleum products as part of any

20 drawdown and distribution under this section.’’; and

21 (D) in subsection (e) (as so redesignated

22 by subparagraph (A) of this paragraph)—

23 (i) in paragraph (1), by striking ‘‘Dis24 tribution Plan’’ and inserting in lieu there25 of ‘‘distribution procedures’’;
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1 (ii) by striking paragraphs (2) and (6)

2 and redesignating paragraphs (3), (4), (5),

3 (7), and (8) as paragraphs (2), (3), (4),

4 (5), and (6), respectively; and

5 (iii) in subsection (f)(1)(A) (as so re6 designated by subparagraph (A) of this

7 paragraph) by striking ‘‘subsection (d)’’

8 and inserting in lieu thereof ‘‘subsection

9 (b)’’;

10 (13) by striking section 164 (42 U.S.C. 6244);

11 (14) by amending section 165 (42 U.S.C. 6245)

12 to read as follows:

13 ‘‘ANNUAL REPORTS

14 ‘‘SEC. 165. (a) The Secretary shall report annually

15 to the President and the Congress on actions taken to im16 plement this part. Each such report shall include—

17 ‘‘(1) a detailed statement of the status of the

18 Strategic Petroleum Reserve, including—

19 ‘‘(A) the capacity of the Reserve and the

20 scheduled annual fill rate for achieving this ca21 pacity;

22 ‘‘(B) the type and quality of crude oil to

23 be acquired for the Reserve under the schedule

24 described in subparagraph (A);

25 ‘‘(C) the schedule of construction of any

26 facilities, including a description of the type and
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1 location of the facilities, and of enhancements

2 and improvements to existing facilities;

3 ‘‘(D) a description of the method of

4 drawdown and distribution to be utilized; and

5 ‘‘(E) an explanation of any changes made

6 in the matters described in subparagraphs (A)

7 through (D) since the transmittal of the pre8 vious report under this subsection;

9 ‘‘(2) a summary of actions taken to develop, op10 erate, or maintain the Strategic Petroleum Reserve;

11 ‘‘(3) a summary of the financial transactions in

12 the Strategic Petroleum Reserve and SPR Petro13 leum Account;

14 ‘‘(4) a summary of existing problems with re15 spect to operation or maintenance of the Strategic

16 Petroleum Reserve; and

17 ‘‘(5) any recommendations for supplemental

18 legislation the Secretary considers necessary or ap19 propriate to implement this part.

20 ‘‘(b) Once every calendar quarter, the Secretary shall

21 report to the Congress on activities undertaken with re22 spect to the Strategic Petroleum Reserve under the

23 amendments made by the Strategic Petroleum Reserve

24 Amendments Act of 1981, including—
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1 ‘‘(1) the amounts of petroleum products stored

2 in the Reserve, under contract and in transit at the

3 end of the previous calendar quarter;

4 ‘‘(2) the projected fill rate for the Strategic Pe5 troleum Reserve for the then current calendar quar6 ter and the provision calendar quarter;

7 ‘‘(3) the average price of the petroleum prod8 ucts acquired during the previous calendar quarter;

9 ‘‘(4) existing and projected Strategic Petroleum

10 Reserve storage capacity and plans to accelerate the

11 acquisition or construction of such capacity;

12 ‘‘(5) an analysis of any existing or anticipated

13 problems associated with acquisition, transportation,

14 and storage of petroleum products in the Reserve

15 and with the expansion of storage capacity for the

16 Reserve; and

17 ‘‘(6) the amount of funds obligated by the Sec18 retary from the SPR Petroleum Account, as well as

19 other funds available for the Reserve, during the

20 previous calendar quarter and in total under the

21 amendments made by such Act.’’;

22 (15) by amending section 166 (42 U.S.C. 6246)

23 to read as follows:

24 ‘‘AUTHORIZATION OF APPROPRIATIONS

25 ‘‘SEC. 166. There are authorized to be appropriated

26 such sums as may be necessary to implement this part.’’;
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1 (16) in section 167 (42 U.S.C. 6247)—

2 (A) in subsection (b)—

3 (i) by inserting ‘‘test sales of petro4 leum products from the Reserve,’’ after

5 ‘‘Strategic Petroleum Reserve,’’;

6 (ii) by striking paragraph (1) and re7 designating paragraphs (2) and (3) as

8 paragraphs (1) and (2), respectively;

9 (iii) in paragraph (1) (as so redesig10 nated by clause (ii) of this subsection) by

11 striking ‘‘after fiscal year 1982’’; and

12 (iv) in paragraph (2) (as so redesig13 nated by clause (ii) of this subsection) by

14 striking ‘‘160(f)’’ and inserting in lieu

15 thereof ‘‘160(c)’’;

16 (B) in subsection (d), by striking ‘‘160(f)’’

17 and inserting in lieu thereof ‘‘160(c)’’; and

18 (C) by amending subsection (e) to read as

19 follows:

20 ‘‘(e) The Impoundment Control Act of 1974 (2

21 U.S.C. 681–688) shall apply to funds made available

22 under subsection (b).’’;

23 (17) in section 171(b)(2)(B) (42 U.S.C.

24 6249(b)(2)(B)) by inserting ‘‘, as such section was

25 in effect before the date of enactment of the Energy
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1 Policy and Conservation Act Amendments of 1994,’’

2 after ‘‘section 154(e)’’;

3 (18) in section 172 (42 U.S.C. 6249a) by strik4 ing subsections (a) and (b) and redesignating sub5 sections (c) and (d) as subsections (a) and (b), re6 spectively; and

7 (19) in section 181 (42 U.S.C. 6251) by strik8 ing ‘‘1994’’ both places it appears and inserting in

9 lieu thereof ‘‘1999’’.

10 SEC. 4. TITLE II AMENDMENTS.

11 Title II of the Energy Policy and Conservation Act

12 is amended—

13 (1) by striking part A (42 U.S.C. 6261 through

14 6264);

15 (2) in section 251(e)(1) (42 U.S.C. 6271(e)(1))

16 by striking ‘‘252(l)(1)’’ and inserting in lieu thereof

17 ‘‘252(k)(1)’’;

18 (3) in section 252 (42 U.S.C. 6272)—

19 (A) in subsections (a)(1) and (b), by strik20 ing ‘‘allocation and information provisions of

21 the international energy program’’ and insert22 ing in lieu thereof ‘‘international emergency re23 sponse provisions’’;

24 (B) in subsection (d)(3), by striking

25 ‘‘known circumstances’’ and inserting in lieu
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1 thereof ‘‘circumstances known at the time of

2 approval’’;

3 (C) in subsection (f)(2) by inserting ‘‘vol4 untary agreement or’’ after ‘‘approved’’;

5 (D) in subsection (i) by inserting ‘‘annu6 ally, and at least’’ after ‘‘least’’ and by insert7 ing ‘‘during an international energy supply

8 emergency’’ after ‘‘months’’;

9 (E) in subsection (k) by amending para10 graph (2) to read as follows:

11 ‘‘(2) The term ‘international emergency re12 sponse provisions’ means—

13 ‘‘(A) the provisions of the international en14 ergy program which relate to international allo15 cation of petroleum products and to the infor16 mation system provided in the program; and

17 ‘‘(B) the emergency response measures

18 adopted by the Governing Board of the Inter19 national Energy Agency (including the July 11,

20 1984, decision by the Governing Board on

21 ‘Stocks and Supply Disruptions’) for—

22 ‘‘(i) the coordinated drawdown of

23 stocks of petroleum products held or con24 trolled by governments; and
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1 ‘‘(ii) complementary actions taken by

2 governments,

3 during an existing or impending international

4 oil supply disruption.’’; and

5 (F) by amending subsection (l) to read as

6 follows:

7 ‘‘(l) The antitrust defense under subsection (f) shall

8 not extend to the international allocation of petroleum

9 products unless allocation is required by chapters III and

10 IV of the international energy program during an inter11 national energy supply emergency.’’;

12 (4) by adding at the end of section 256(h) (42

13 U.S.C. 6276(h)) ‘‘There are authorized to be appro14 priated for fiscal years 1996 through 1999 such

15 sums as may be necessary to carry out this part.’’;

16 (5) by striking part C (42 U.S.C. 6281 through

17 6282); and

18 (6) in section 281 (42 U.S.C. 6285), by striking

19 ‘‘1994’’ each place it appears and inserting in lieu

20 thereof ‘‘1999’’.

21 SEC. 5. MISCELLANEOUS ADDITIONAL AMENDMENTS.

22 (a) Title III of the Energy Policy and Conservation

23 Act is amended—

24 (1) in section 365(f) (42 U.S.C. 6325(f)) by

25 amending paragraph (1) to read as follows:
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1 ‘‘(1) Except as provided in paragraph (2), for the

2 purpose of carrying out this part, there are authorized to

3 be appropriated for fiscal years 1995 through 1999 such

4 sums as may be necessary.’’; and

5 (2) by amending section 397 (42 U.S.C. 6371f)

6 to read as follows:

7 ‘‘AUTHORIZATION OF APPROPRIATIONS

8 ‘‘SEC. 397. For the purpose of carrying out this part,

9 there are authorized to be appropriated for fiscal years

10 1995 through 1999 such sums as may be necessary.’’.

11 (b) Section 422 of the Energy Conservation and Pro12 duction Act (42 U.S.C. 6872) is amended to read as fol13 lows:

14 ‘‘AUTHORIZATION OF APPROPRIATIONS

15 ‘‘SEC. 422. For the purposes of carrying out the

16 weatherization program under this part, there are author17 ized to be appropriated for fiscal years 1995 through 1999

18 such sums as may be necessary.’’.

19 (c) Section 507 of the Energy Policy and Conserva20 tion Act (42 U.S.C. 6385) is amended by striking ‘‘, which

21 was collected’’ and all that follows through ‘‘Information

22 Administration’’.

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