IIA

103D CONGRESS

2D SESSION H. R. 4752

IN THE SENATE OF THE UNITED STATES

AUGUST 9 (legislative day, AUGUST 8), 1994

Received; read twice and referred to the Committee on Energy and Natural

Resources

AN ACT

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’’.
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1 SEC. 2. TABLE OF CONTENTS AND STATEMENT OF PUR2 POSES.

3 (a)(1) In the table of contents of the Energy Policy

4 and Conservation Act, strike the items relating to sections

5 102, 153, 155, 158, and 164, and strike the items relating

6 to parts A and C of title II.

7 (2) The item in the table of contents of the Energy

8 Policy and Conservation Act relating to section 159 is

9 amended to read as follows:

‘‘Sec. 159. Development, operations, and maintenance of the Reserve.’’.

10 (3) The item in the table of contents of the Energy

11 Policy and Conservation Act relating to section 165 is

12 amended to read as follows:

‘‘Sec. 165. Reports.’’.

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

14 Act (42 U.S.C. 6201) is amended—

15 (1) in paragraph (1) by striking ‘‘standby au16 thority to the President, subject to congressional re17 view, to impose rationing, to reduce demand for en18 ergy through the implementation of energy conserva19 tion plans, and’’ and inserting in lieu thereof ‘‘au20 thority to the President’’; and

21 (2) by striking paragraphs (3) and (6) and re22 designating paragraphs (4), (5), (7), and (8) as

23 paragraphs (3), (4), (5), and (6), respectively.
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1 SEC. 3. TITLE I AMENDMENTS.

2 Title I of the Energy Policy and Conservation Act

3 is amended—

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

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

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

7 and by striking ‘‘short-term’’; and

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

9 follows:

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

11 for the creation of a Strategic Petroleum Reserve for the

12 storage of up to 1,000,000,000 barrels of petroleum prod13 ucts to reduce the impact of disruptions in supplies of pe14 troleum products or to carry out obligations of the United

15 States under the international energy program.’’;

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

17 (A) by striking paragraph (1) and redesig18 nating paragraphs (2) through (11) as para19 graphs (1) through (10), respectively; and

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

21 by subparagraph (A) of this paragraph) by

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

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

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

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

26 as follows:
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1 ‘‘(a)(1) A Strategic Petroleum Reserve for the stor2 age of up to 1,000,000,000 barrels of petroleum products

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

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

5 ‘‘160(h)’’ and inserting in lieu thereof

6 ‘‘160(e)’’;

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

8 follows:

9 ‘‘(b) The Secretary, acting through the Strategic Pe10 troleum Reserve Office and in accordance with this part,

11 shall exercise authority over the development, operation,

12 and maintenance of the Reserve.’’;

13 (D) by amending subsection (c) to read as

14 follows:

15 ‘‘(c) The Secretary, not later than 6 months after the

16 date of enactment of this subsection, and every two years

17 thereafter, shall prepare and transmit to the Congress a

18 Strategic Petroleum Reserve Operating and Readiness

19 Plan. Such plan shall describe the long-range operational,

20 maintenance, refurbishment, product replacement, testing,

21 withdrawal and distribution, and readiness requirements

22 to enable the implementation of the policy declared in sec23 tion 151.’’; and

24 (E) by striking subsections (d) and (e);

25 (6) by striking section 155 (42 U.S.C. 6235);
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1 (7) in section 156(b) (42 U.S.C. 6236(b)) by

2 striking ‘‘To implement the Early Storage Reserve

3 Plan or the Strategic Petroleum Reserve Plan which

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

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

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

7 6237)—

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

9 Strategic Petroleum Reserve Plan shall provide

10 for the establishment and maintenance of’’ and

11 inserting in lieu thereof ‘‘The Secretary shall

12 establish and maintain as part of the Strategic

13 Petroleum Reserve’’; and

14 (B) in subsection (b), by striking ‘‘To im15 plement the Strategic Petroleum Reserve Plan,

16 the Secretary shall accumulate and maintain’’

17 and inserting in lieu thereof ‘‘The Secretary

18 shall establish and maintain as part of the

19 Strategic Petroleum Reserve’’;

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

21 (10) in section 159 (42 U.S.C. 6239)—

22 (A) by amending the section head to read

23 as follows:
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1 ‘‘DEVELOPMENT, OPERATIONS, AND MAINTENANCE OF

2 THE RESERVE’’;

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

4 (d), (e), (h), and (i), and redesignating sub5 sections (f), (g), (j), (k), and (l) as subsections

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

7 (C) by amending subsection (a) (as so re8 designated by subparagraph (B) of this para9 graph) to read as follows:

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

11 Strategic Petroleum Reserve, the Secretary may—

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

13 ‘‘(2) acquire by purchase, condemnation, or oth14 erwise, land or interests in land for the location of

15 storage and related facilities;

16 ‘‘(3) construct, purchase, lease, or otherwise ac17 quire storage and related facilities;

18 ‘‘(4) use, lease, maintain, sell, or otherwise dis19 pose of storage and related facilities acquired under

20 this part, under such terms and conditions as the

21 Secretary considers necessary and appropriate;

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

23 160, by purchase, exchange, or otherwise, petroleum

24 products for storage in the Strategic Petroleum Re25 serve, including the Regional Petroleum Reserve;
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1 ‘‘(6) store petroleum products in storage facili2 ties owned and controlled by the United States or in

3 storage facilities owned by others if those facilities

4 are subject to audit by the United States;

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

6 operate, or maintain the Strategic Petroleum Re7 serve;

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

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

10 readily available inventories, petroleum products in

11 the Industrial Petroleum Reserve, under section 156;

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

13 in the Industrial Petroleum Reserve, under section

14 156, on such reasonable terms as the Secretary may

15 specify, in storage facilities owned and controlled by

16 the United States or in storage facilities other than

17 those owned by the United States if those facilities

18 are subject to audit by the United States;

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

20 Petroleum Reserve; and

21 ‘‘(11) bring an action, when the Secretary con22 siders it necessary, in any court having jurisdiction

23 over the proceedings, to acquire by condemnation

24 any real or personal property, including facilities,

25 temporary use of facilities, or other interests in land,
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1 together with any personal property located on or

2 used with the land.’’;

3 (D) in subsection (b) (as so redesignated

4 by subparagraph (B) of this paragraph)—

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

6 inserting in lieu thereof ‘‘development’’;

7 and

8 (ii) by striking ‘‘Plan’’;

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

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

13 750,000,000 barrel inventory can reasonably be expected

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

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

16 Strategic Petroleum Reserve to a capacity of

17 1,000,000,000 barrels.’’; and

18 (F) by amending subsection (e) (as so re19 designated by subparagraph (B) of this para20 graph) to read as follows:

21 ‘‘(e) During any period in which drawdown and dis22 tribution are being implemented, the Secretary may issue

23 rules, regulations, or orders to implement the drawdown

24 and distribution of the Strategic Petroleum Reserve, with25 out regard to the requirements of section 553 of title 5,
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1 United States Code, and section 501 of the Department

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

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

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

5 Secretary’’ and all that follows through ‘‘trans6 port, or exchange’’ and inserting in lieu thereof

7 ‘‘For the purpose of implementing the Strategic

8 Petroleum Reserve, the Secretary may acquire,

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

10 (B) in subsection (b)—

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

12 Storage Reserve’’; and

13 (ii) by striking paragraph (2) and re14 designating paragraphs (3) through (5) as

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

16 and

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

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

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

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

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

22 redesignating subsections (d) through (i) as

23 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 ‘‘REPORTS

14 ‘‘SEC. 165. The Secretary shall, not later than 6

15 months after the date of enactment of the Energy Policy

16 and Conservation Act Amendments of 1994, and every 6

17 months thereafter, transmit a report to the President and

18 the Congress on—

19 ‘‘(1) the status of the physical capacity of the

20 Reserve and the type and quantity of petroleum in

21 the Reserve;

22 ‘‘(2) an estimate of the schedule and cost to

23 complete planned equipment upgrade or capital in24 vestment in the Reserve, including those carried out

25 as part of operational maintenance or extension of

26 life activities;
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1 ‘‘(3) an identification of any life-limiting condi2 tions or operational problems at any Reserve facility,

3 and proposed remedial actions including an estimate

4 of the schedule and cost of implementing such reme5 dial actions;

6 ‘‘(4) a description of current withdrawal and

7 distribution rates and capabilities, and an identifica8 tion of any operational or other limitations on such

9 rates and capabilities;

10 ‘‘(5) an identification of purchases of petroleum

11 made in the preceding 6 months and planned in the

12 following 6 months, including quantity, price, and

13 type of petroleum;

14 ‘‘(6) a summary of the actions taken to develop,

15 operate, and maintain the Reserve;

16 ‘‘(7) a summary of the financial status and fi17 nancial transactions of the Strategic Petroleum Re18 serve and Strategic Petroleum Reserve Petroleum

19 Accounts for the preceding 6 months;

20 ‘‘(8) a summary of operating and capital ex21 penses for the preceding 6 months, and the number

22 of Federal and contractor employees;

23 ‘‘(9) the status of contracts for development,

24 operation, maintenance, distribution, and other ac-
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1 tivities related to the implementation of this part;

2 and

3 ‘‘(10) any recommendations for supplemental

4 legislation or policy or operational changes the Sec5 retary considers necessary and appropriate to imple6 ment this part.’’;

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

8 to read as follows:

9 ‘‘AUTHORIZATION OF APPROPRIATIONS

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

11 such sums as may be necessary to implement this part.’’;

12 (16) in section 167 (42 U.S.C. 6247)—

13 (A) in subsection (b)—

14 (i) by inserting ‘‘test sales of petro15 leum products from the Reserve,’’ after

16 ‘‘Strategic Petroleum Reserve,’’;

17 (ii) by striking paragraph (1) and re18 designating paragraphs (2) and (3) as

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

20 (iii) in paragraph (1) (as so redesig21 nated by clause (ii) of this subsection) by

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

23 (iv) in paragraph (2) (as so redesig24 nated by clause (ii) of this subsection) by

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

26 thereof ‘‘160(c)’’;
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1 (B) in subsection (d), by striking ‘‘160(f)’’

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

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

4 follows:

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

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

7 under subsection (b).’’;

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

9 6249(b)(2)(B)) by inserting ‘‘, as such section was

10 in effect before the date of enactment of the Energy

11 Policy and Conservation Act Amendments of 1994,’’

12 after ‘‘section 154(e)’’;

13 (18) in section 172 (42 U.S.C. 6249a) by strik14 ing subsections (a) and (b) and redesignating sub15 sections (c) and (d) as subsections (a) and (b), re16 spectively; and

17 (19) in section 181 (42 U.S.C. 6251) by strik18 ing ‘‘1994’’ both places it appears and inserting in

19 lieu thereof ‘‘1999’’.

20 SEC. 4. TITLE II AMENDMENTS.

21 Title II of the Energy Policy and Conservation Act

22 is amended—

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

24 6264);
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1 (2) in section 251(e)(1) (42 U.S.C. 6271(e)(1))

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

3 ‘‘252(k)(1)’’;

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

5 (A) in subsections (a)(1) and (b), by strik6 ing ‘‘allocation and information provisions of

7 the international energy program’’ and insert8 ing in lieu thereof ‘‘international emergency re9 sponse provisions’’;

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

11 ‘‘known circumstances’’ and inserting in lieu

12 thereof ‘‘circumstances known at the time of

13 approval’’;

14 (C) in subsection (f)(2) by inserting ‘‘vol15 untary agreement or’’ after ‘‘approved’’;

16 (D) in subsection (i) by inserting ‘‘annu17 ally, and at least’’ after ‘‘least’’ and by insert18 ing ‘‘during an international energy supply

19 emergency’’ after ‘‘months’’;

20 (E) in subsection (k) by amending para21 graph (2) to read as follows:

22 ‘‘(2) The term ‘international emergency re23 sponse provisions’ means—

24 ‘‘(A) the provisions of the international en25 ergy program which relate to international allo-
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1 cation of petroleum products and to the infor2 mation system provided in the program; and

3 ‘‘(B) the emergency response measures

4 adopted by the Governing Board of the Inter5 national Energy Agency (including the July 11,

6 1984, decision by the Governing Board on

7 ‘Stocks and Supply Disruptions’) for—

8 ‘‘(i) the coordinated drawdown of

9 stocks of petroleum products held or con10 trolled by governments; and

11 ‘‘(ii) complementary actions taken by

12 governments,

13 during an existing or impending international

14 oil supply disruption.’’; and

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

16 follows:

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

18 not extend to the international allocation of petroleum

19 products unless allocation is required by chapters III and

20 IV of the international energy program during an inter21 national energy supply emergency.’’;

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

23 U.S.C. 6276(h)) ‘‘There are authorized to be appro24 priated for fiscal years 1996 through 1999 such

25 sums as may be necessary to carry out this part.’’;
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1 (5) by striking part C (42 U.S.C. 6281 through

2 6282); and

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

4 ‘‘1994’’ each place it appears and inserting in lieu

5 thereof ‘‘1999’’.

6 SEC. 5. MISCELLANEOUS ADDITIONAL AMENDMENTS.

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

8 Act is amended—

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

10 amending paragraph (1) to read as follows:

11 ‘‘(1) Except as provided in paragraph (2), for the

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

13 be appropriated for fiscal years 1995 through 1999 such

14 sums as may be necessary.’’; and

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

16 to read as follows:

17 ‘‘AUTHORIZATION OF APPROPRIATIONS

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

19 there are authorized to be appropriated for fiscal years

20 1995 through 1999 such sums as may be necessary.’’.

21 (b) Section 507 of the Energy Policy and Conserva22 tion Act (42 U.S.C. 6385) is amended by striking ‘‘, which

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

24 Administration’’.
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1 SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

2 Section 6(d) of the Renewable Energy and Energy

3 Efficiency Technology Competitiveness Act of 1989 (42

4 U.S.C. 12005(d)) is amended by striking ‘‘fiscal year

5 1994’’ and inserting in lieu thereof ‘‘the period encom6 passing fiscal years 1996, 1997, and 1998’’.

7 SEC. 7. ELWHA RIVER ECOSYSTEM AND FISHERIES RES8 TORATION EXPENDITURES.

9 Section 9 of the Elwha River Ecosystem and Fish10 eries Restoration Act (Public Law 102–495; 106 Stat.

11 3178) is amended by striking ‘‘for expenditure through

12 the Assistant Secretary for Fish, Wildlife, and Parks’’.

13 SEC. 8. SIZE LIMITATIONS OF ELIGIBLE FACILITIES UNDER

14 PURPA.

15 (a) EXTENSION.—Section 3(17)(E) of the Federal

16 Power Act (16 U.S.C. 791a and following) is amended as

17 follows:

18 (1) By striking ‘‘1994’’ and inserting ‘‘1996’’.

19 (2) By striking ‘‘1999’’ and inserting ‘‘2001’’.

20 (b) STUDY.—Before January 1, 1996, the Secretary

21 of Energy, in consultation with the Federal Energy Regu22 latory Commission, shall conduct a study to review the

23 current implementation of the Public Utility Regulatory

24 Policies Act of 1978 and submit a report to Congress con25 taining the results of such study. Such report shall include

26 an examination of the mandatory purchase requirements
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1 under such Act, the implementation of avoided cost re2 quirements by various State public service commissions

3 and ownership restrictions imposed under such Act. In

4 conducting the study, the Secretary shall consult with

5 State public service commissions and other State regu6 latory authorities with jurisdiction over electric power

7 sales.

Passed the House of Representatives August 8,

1994.

Attest: DONNALD K. ANDERSON,

Clerk.