Union Calendar No. 360

103D CONGRESS

2D SESSION H. R. 4752

[Report No. 103–663]

A BILL

To amend the Energy Policy and Conservation Act

effectively, and for other purposes.to manage the Strategic Petroleum Reserve more

AUGUST 3, 1994

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 360

103D CONGRESS

2D SESSION H. R. 4752

[Report No. 103–663]

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

AUGUST 3, 1994

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on July 13, 1994]

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,
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1 SECTION 1. SHORT TITLE.

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

3 Conservation Act Amendments of 1994’’.

4 SEC. 2. TABLE OF CONTENTS AND STATEMENT OF PUR5 POSES.

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

7 and Conservation Act, strike the items relating to sections

8 102, 153, 155, 158, and 164, and strike the items relating

9 to parts A and C of title II.

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

11 Policy and Conservation Act relating to section 159 is

12 amended to read as follows:

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

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

14 Policy and Conservation Act relating to section 165 is

15 amended to read as follows:

‘‘Sec. 165. Reports.’’.

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

17 Act (42 U.S.C. 6201) is amended—

18 (1) in paragraph (1) by striking ‘‘standby au19 thority to the President, subject to congressional re20 view, to impose rationing, to reduce demand for en21 ergy through the implementation of energy conserva22 tion plans, and’’ and inserting in lieu thereof ‘‘au23 thority to the President’’; and
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1 (2) by striking paragraphs (3) and (6) and re2 designating paragraphs (4), (5), (7), and (8) as para3 graphs (3), (4), (5), and (6), respectively.

4 SEC. 3. TITLE I AMENDMENTS.

5 Title I of the Energy Policy and Conservation Act is

6 amended—

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

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

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

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

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

12 follows:

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

14 for the creation of a Strategic Petroleum Reserve for the

15 storage of up to 1,000,000,000 barrels of petroleum products

16 to reduce the impact of disruptions in supplies of petroleum

17 products or to carry out obligations of the United States

18 under the international energy program.’’;

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

20 (A) by striking paragraph (1) and redesig21 nating paragraphs (2) through (11) as para22 graphs (1) through (10), respectively; and

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

24 by subparagraph (A) of this paragraph) by strik25 ing ‘‘, the Early Storage Reserve’’;
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1 (4) by striking section 153 (42 U.S.C 6233);

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

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

4 as follows:

5 ‘‘(a)(1) A Strategic Petroleum Reserve for the storage

6 of up to 1,000,000,000 barrels of petroleum products shall

7 be created pursuant to this part.’’;

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

9 ‘‘160(h)’’ and inserting in lieu thereof ‘‘160(e)’’;

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

11 follows:

12 ‘‘(b) The Secretary, acting through the Strategic Petro13 leum Reserve Office and in accordance with this part, shall

14 exercise authority over the development, operation, and

15 maintenance of the Reserve.’’;

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

17 follows:

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

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

20 thereafter, shall prepare and transmit to the Congress a

21 Strategic Petroleum Reserve Operating and Readiness

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

23 maintenance, refurbishment, product replacement, testing,

24 withdrawal and distribution, and readiness requirements
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1 to enable the implementation of the policy declared in sec2 tion 151.’’; and

3 (E) by striking subsections (d) and (e).

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

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

6 striking ‘‘To implement the Early Storage Reserve

7 Plan or the Strategic Petroleum Reserve Plan which

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

9 inserting in lieu thereof ‘‘The’’;

10 (8) by amending section 157 (42 U.S.C 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 es15 tablish 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 Stra22 tegic 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 as

2 follows:

3 ‘‘DEVELOPMENT, OPERATIONS, AND MAINTENANCE OF THE

4 RESERVE’’;

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

6 (e), (h), and (i), and redesignating subsections

7 (f), (g), (j), (k), and (l) as subsections (a), (b),

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

9 (C) by amending subsection (a) (as so redes10 ignated by subparagraph (B) of this paragraph)

11 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 Sec23 retary 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 facilities

4 owned and controlled by the United States or in stor5 age facilities owned by others if those facilities are

6 subject to audit by the United States;

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

8 operate, or maintain the Strategic Petroleum Reserve;

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

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

11 readily available inventories, petroleum products in

12 the Industrial Petroleum Reserve, under section 156;

13 ‘‘(9) require the storage of petroleum products in

14 the Industrial Petroleum Reserve, under section 156,

15 on such reasonable terms as the Secretary may speci16 fy, in storage facilities owned and controlled by the

17 United States or in storage facilities other than those

18 owned by the United States if those facilities are sub19 ject to audit by the United States;

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

21 Petroleum Reserve; and

22 ‘‘(11) bring an action, when the Secretary con23 siders it necessary, in any court having jurisdiction

24 over the proceedings, to acquire by condemnation any

25 real or personal property, including facilities, tem-
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1 porary use of facilities, or other interests in land, to2 gether with any personal property located on or used

3 with the land.’’;

4 (D) in subsection (b) (as so redesignated by

5 subparagraph (B) of this paragraph)—

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

7 inserting in lieu thereof ‘‘development’’; and

8 (ii) by striking ‘‘Plan’’;

9 (E) by amending subsection (c) (as so redes10 ignated by subparagraph (B) of this paragraph)

11 to read as follows:

12 ‘‘(c) When the Secretary determines that a 750,000,000

13 barrel inventory can reasonably be expected to be reached

14 in the Reserve within 5 years, the Secretary shall submit

15 to the Congress a plan for expansion of the Strategic Petro16 leum Reserve to a capacity of 1,000,000,000 barrels.’’; and

17 (F) by amending subsection (e) (as so redes18 ignated by subparagraph (B) of this paragraph)

19 to read as follows:

20 ‘‘(e) During any period in which drawdown and dis21 tribution are being implemented, the Secretary may issue

22 rules, regulations, or orders to implement the drawdown

23 and distribution of the Strategic Petroleum Reserve, with24 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 of

2 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 Sec5 retary’’ and all that follows through ‘‘transport,

6 or exchange’’ and inserting in lieu thereof ‘‘For

7 the purpose of implementing the Strategic Petro8 leum Reserve, the Secretary may acquire, place

9 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) as

19 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 sub23 sections (b) through (g), respectively;
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1 (B) by amending subsection (b)(1) (as so re2 designated by subparagraph (A) of this para3 graph) to read as follows:

4 ‘‘(b)(1) No drawdown and distribution of the Strategic

5 Petroleum Reserve may be made unless the President has

6 found drawdown and distribution is required by a severe

7 energy supply interruption or by obligations of the United

8 States under the international energy program.’’;

9 (C) by amending subsection (c) (as so redes10 ignated by subparagraph (A) of this paragraph)

11 to read as follows:

12 ‘‘(c)(1) The Secretary shall sell any petroleum product

13 withdrawn from the Strategic Petroleum Reserve at public

14 sale to the highest qualified bidder in the amounts and for

15 the period the Secretary considers appropriate, and after

16 a notice of sale the Secretary considers appropriate.

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

18 any offer to sell petroleum products as part of any

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

20 (D) in subsection (e) (as so redesignated by

21 subparagraph (A) of this paragraph)—

22 (i) in paragraph (1), by striking ‘‘Dis23 tribution Plan’’ and inserting in lieu there24 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), (5),

4 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 Re20 serve and the type and quantity of petroleum in the

21 Reserve;

22 ‘‘(2) an estimate of the schedule and cost to com23 plete planned equipment upgrade or capital invest24 ment in the Reserve, including those carried out as

25 part of operational maintenance or extension of life

26 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 Ac19 counts for the preceding 6 months;

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

22 Federal and contractor employees;

23 ‘‘(9) the status of contracts for development, op24 eration, maintenance, distribution, and other activi25 ties related to the implementation of this part; and
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1 ‘‘(10) any recommendations for supplemental

2 legislation or policy or operational changes the Sec3 retary considers necessary and appropriate to imple4 ment this part.’’;

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

6 to read as follows:

7 ‘‘AUTHORIZATION OF APPROPRIATIONS

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

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

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

11 (A) in subsection (b)—

12 (i) by inserting ‘‘test sales of petroleum

13 products from the Reserve,’’ after ‘‘Strategic

14 Petroleum Reserve,’’;

15 (ii) by striking paragraph (1) and re16 designating paragraphs (2) and (3) as

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

18 (iii) in paragraph (1) (as so redesig19 nated by clause (ii) of this subsection) by

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

21 (iv) in paragraph (2) (as so redesig22 nated by clause (ii) of this subsection) by

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

24 thereof ‘‘160(c)’’;

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

26 and inserting in lieu thereof ‘‘160(c)’’; and
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1 (C) by amending subsection (e) to read as

2 follows:

3 ‘‘(e) The Impoundment Control Act of 1974 (2 U.S.C.

4 681–688) shall apply to funds made available under sub5 section (b).’’;

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

7 6249(b)(2)(B)) by inserting ‘‘, as such section was in

8 effect before the date of enactment of the Energy Pol9 icy and Conservation Act Amendments of 1994,’’ after

10 ‘‘section 154(e)’’;

11 (18) in section 172 (42 U.S.C. 6249a) by strik12 ing subsections (a) and (b) and redesignating sub13 sections (c) and (d) as subsections (a) and (b), respec14 tively; and

15 (19) in section 181 (42 U.S.C. 6251) by striking

16 ‘‘1994’’ both places it appears and inserting in lieu

17 thereof ‘‘1999’’.

18 SEC. 4. TITLE II AMENDMENTS.

19 Title II of the Energy Policy and Conservation Act

20 is amended—

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

22 6264);

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

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

25 ‘‘252(k)(1)’’;
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1 (3) in section 252 (42 U.S.C. 6272)—

2 (A) in subsections (a)(1) and (b), by strik3 ing ‘‘allocation and information provisions of

4 the international energy program’’ and inserting

5 in lieu thereof ‘‘international emergency response

6 provisions’’;

7 (B) in subsection (d)(3), by striking ‘‘known

8 circumstances’’ and inserting in lieu thereof

9 ‘‘circumstances known at the time of approval’’;

10 (C) in subsection (f)(2) by inserting ‘‘vol11 untary agreement or’’ after ‘‘approved’’;

12 (D) in subsection (i) by inserting ‘‘annu13 ally, and at least’’ after ‘‘least’’ and by inserting

14 ‘‘during an international energy supply emer15 gency’’ after ‘‘months’’;

16 (E) in subsection (k) by amending para17 graph (2) to read as follows:

18 ‘‘(2) The term ‘international emergency response

19 provisions’ means—

20 ‘‘(A) the provisions of the international en21 ergy program which relate to international allo22 cation of petroleum products and to the informa23 tion system provided in the program; and

24 ‘‘(B) the emergency response measures

25 adopted by the Governing Board of the Inter-
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1 national Energy Agency (including the July 11,

2 1984, decision by the Governing Board on

3 ‘Stocks and Supply Disruptions’) for—

4 ‘‘(i) the coordinated drawdown of

5 stocks of petroleum products held or con6 trolled by governments; and

7 ‘‘(ii) complementary actions taken by

8 governments,

9 during an existing or impending international

10 oil supply disruption.’’; and

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

12 follows:

13 ‘‘(l) The antitrust defense under subsection (f) shall not

14 extend to the international allocation of petroleum products

15 unless allocation is required by chapters III and IV of the

16 international energy program during an international en17 ergy supply emergency.’’;

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

19 U.S.C. 6276(h)) ‘‘There are authorized to be appro20 priated for fiscal years 1996 through 1999 such sums

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

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

23 6282); and
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1 (6) in section 281 (42 U.S.C. 6285), by striking

2 ‘‘1994’’ each place it appears and inserting in lieu

3 thereof ‘‘1999’’.

4 SEC. 5. MISCELLANEOUS ADDITIONAL AMENDMENTS.

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

6 Act is amended—

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

8 amending paragraph (1) to read as follows:

9 ‘‘(1) Except as provided in paragraph (2), for the pur10 pose of carrying out this part, there are authorized to be

11 appropriated for fiscal years 1995 through 1999 such sums

12 as may be necessary.’’; and

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

14 to read as follows:

15 ‘‘AUTHORIZATION OF APPROPRIATIONS

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

17 there are authorized to be appropriated for fiscal years 1995

18 through 1999 such sums as may be necessary.’’.

19 (b) Section 507 of the Energy Policy and Conservation

20 Act (42 U.S.C. 6385) is amended by striking ‘‘, which was

21 collected’’ and all that follows through ‘‘Information Ad22 ministration’’.

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