Calendar No. 569

103D CONGRESS

2D SESSION S. 2251

[Report No. 103–334]

A BILL

To amend the Energy Policy and Conservation Act

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

AUGUST 12 (legislative day, AUGUST 11), 1994

Reported with an amendment
II

Calendar No. 569

103D CONGRESS

2D SESSION S. 2251

[Report No. 103–334]

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

Petroleum Reserve more effectively, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 30 (legislative day, JUNE 7), 1994

Mr. JOHNSTON (by request) introduced the following bill; which was read

twice and referred to the Committee on Energy and Natural Resources

AUGUST 12 (legislative day, AUGUST 11), 1994

Reported by Mr. JOHNSTON, with an amendment

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

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 That this Act may be cited as the ‘‘Energy Policy and

4 Conservation Act Amendments Act’’.
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1 SEC. 2. Section 2 of the Energy Policy and Conserva2 tion Act (42 U.S.C. 6201) is amended—

3 (1) in paragraph (1) by striking ‘‘standby’’ and

4 ‘‘, subject to congressional review, to impose ration5 ing, to reduce demand for energy through the imple6 mentation of energy conservation plans, and’’; and

7 (2) by striking paragraphs (3) and (6).

8 SEC. 3. Title I of the Energy Policy and Conservation

9 Act (42 U.S.C. 6211–6251) is amended—

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

11 (2) in section 105 (42 U.S.C. 6213)—

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

13 follows—

14 ‘‘(a) The Secretary of the Interior shall prohibit the

15 bidding for any right to develop crude oil, natural gas,

16 and natural gas liquids on any lands located on the Outer

17 Continental Shelf by any person if more than one major

18 oil company, more than one affiliate of a major oil com19 pany, or a major oil company and any affiliate of a major

20 oil company, has or have a significant ownership interest

21 in that person, when the Secretary determines prior to any

22 lease sale that this bidding would adversely affect competi23 tion or the receipt of fair market value.’’; and

24 (B) by striking subsections (c) and (e);

25 (3) by striking section 106 (42 U.S.C. 6214);
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1 (4) in section 1151 (42 U.S.C. 6231)—

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

3 and ‘‘short-term’’; and

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

5 follows:

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

7 for the creation of a Strategic Petroleum Reserve for the

8 storage of up to 1 billion barrels of petroleum products

9 to reduce the impact of disruptions in supplies of petro10 leum products or to carry out obligations of the United

11 States under the international energy program.’’;

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

13 (A) by striking paragraph (1), and

14 (B) in paragraph (11) by striking ’’, the

15 Early Storage Reserve’’;

16 (6) by striking section 153 (42 U.S.C. 6233);

17 (7) in section 154 (42 U.S.C. 6234)—

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

19 as follows:

20 ‘‘(a)(1) A Strategic Petroleum Reserve for the stor21 age of up to 1 billion barrels of petroleum products shall

22 be created pursuant to this part.’’;

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

24 follows:
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1 ‘‘(b) The Secretary, acting through the Strategic Pe2 troleum Reserve Office and in accordance with this part,

3 shall exercise authority over the development, operation,

4 and maintenance of the Reserve.’’; and

5 (C) by striking subsections (c), (d), and

6 (e);

7 (8) by striking section 155 (42 U.S.C. 6235);

8 (9) in section 156(b) (42 U.S.C. 6236(b)), by

9 striking ‘‘To implement the Early Storage Reserve

10 Plan or the Strategic Petroleum Reserve Plan which

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

12 and inserting ‘‘The’’;

13 (10) by amending section 157 (42 U.S.C.

14 6237)—

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

16 Strategic Petroleum Reserve Plan shall provide

17 for the establishment and maintenance of’’ and

18 insert ‘‘The Secretary shall establish and main19 tain as part of the Strategic Petroleum Re20 serve’’, and

21 (B) in subsection (b), by striking ‘‘To im22 plement the Strategic Petroleum Reserve Plan,

23 the Secretary shall accumulate and maintain’’

24 and inserting ‘‘The Secretary shall establish
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1 and maintain as part of the Strategic Petro2 leum Reserve’’;

3 (11) by striking section 158 (42 U.S.C. 6238);

4 (12) by amending the heading for section 159

5 (42 U.S.C. 6239) to read, ‘‘Development, Operation,

6 and Maintenance of the Reserve’’;

7 (13) in section 159 (42 U.S.C. 6239)—

8 (A) by striking subsections (a), (b), (c),

9 (d), and (e);

10 (B) by amending subsection (f) to read as

11 follows:

12 ‘‘(f) 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 may deem necessary or 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;

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 Re9 serve;

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 terms that the Secretary specifies in storage

17 facilities owned and controlled by the United States

18 or in storage facilities other than those owned by the

19 United States if those facilities are subject to audit

20 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 (C) in subsection (g)—

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

7 inserting ‘‘development’’; and

8 (ii) by striking ‘‘Plan’’;

9 (D) by striking subsections (h) and (i);

10 (E) by amending subsection (j) to read as

11 follows:

12 ‘‘(j) When a pattern of appropriations for fill of the

13 Strategic Petroleum Reserve develops such that a 750 mil14 lion barrel inventory can reasonably be expected to be

15 reached within five years by the continuation of that pat16 tern, a plan for expansion will be submitted to the Con17 gress.’’; and

18 (F) by amending subsection (1) to read as

19 follows:

20 ‘‘(1) During any period in which drawdown and

21 distribution are being implemented, the Secretary

22 may issues rules, regulations, or orders to implement

23 the drawdown and distribution of the Strategic Pe24 troleum Reserve in accordance with section 523 of

25 this Act, without regard to the requirements of sec-
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1 tion 553 of title 5, United States Code, and section

2 501 of the Department of Energy Organization Act

3 (42 U.S.C. 7191).’’;

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

5 (A) in subsection (a), by striking all before

6 the dash and inserting the following:

7 ‘‘(a) To the extent funds are available under section

8 167(b) (2) and (3) and for the purposes of implementing

9 the Strategic Petroleum Reserve, the Secretary may ac10 quire, place in storage, transvort- or exchange’’;

11 (B) in subsection (b), by striking including

12 the Early Storage Ruserveg’ and paregraqh (2);

13 and

14 (C) by striking subsections (g), (d), and

15 (e);

16 (15) in section 161 (42 U.S.C. 6241)—

17 (A) by striking subsections (b) and (c);

18 (B) by amending subsection (d)(1) to read

19 as follows:

20 ‘‘(d)(1) No drawdown and distribution of the Strate21 gic Petroleum Reserve may be made unless the President

22 has found drawdown and distribution is required by a se23 vere energy supply interruption or by obligations of the

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

25 and
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1 (C) by amending subsection (e) to read as

2 follows:

3 ‘‘(e)(1) The Secretary shall sell any petroleum prod4 uct withdrawn from the Strategic Petroleum Reserve at

5 public sale to the highest qualified bidder in the amounts,

6 for the period, and after a notice of sale the Secretary

7 considers proper, and without regard to Federal, State,

8 or local regulations controlling sales of petroleum prod9 ucts.

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

11 any offer to sell petroleum products as part of any

12 drawdown and distribution under this Section.’’; and

13 (D) in subsection (g)—

14 (i) in paragraph (1), by striking ‘‘Dis15 tribution Plan’’ and inserting ‘‘distribution

16 procedures’’, and

17 (ii) by striking paragraphs (2) and

18 (6);

19 (16) by striking section 164 (42 U.S.C. 6244);

20 (17) by amending section 165 (42 U.S.C. 6245)

21 to read as follows:

22 ‘‘SEC. 165. The Secretary shall report annually to the

23 President and the Congress on actionw taken to imple24 ment this part. This report shall include—
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1 ‘‘(1) a detailed statement of the status of the

2 Strategic Petroleum Reserve, including—

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

4 scheduled annual fill rate for achieving this ca5 pacity;

6 ‘‘(B) the scheduled annual fill rate for the

7 fiscal year for which the report is transmitted;

8 ‘‘(C) the type and quality of crude oil to be

9 acquired for the Reserve under the schedule de10 scribed in subparagraph (A);

11 ‘‘(D) the schedule of construction of any

12 facilities, including a description of the type and

13 location of the facilities, and of enhancements

14 and improvements to existing facilities;

15 ‘‘(E) a description of the current method

16 of drawdown and distribution to be utilized; and

17 ‘‘(F) an explanation of any changes made

18 in the matters described in subparagraphs (A)

19 through (E) since the transmittal of the pre20 vious report under this section;

21 ‘‘(2) a summary of the actions taken to develop,

22 operate, or maintain the Strategic Petroleum Re23 serve;
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1 ‘‘(3) a summary of the financial transactions in

2 the Strategic Petroleum reserve and SPR Petroleum

3 Account; and

4 ‘‘(4) a summary of existing problems with re5 spect to operation or maintenance of the Strategic

6 Petroleum Reserve; and

7 ‘‘(5) any recommendation for supplemental leg8 islation the Secretary considers necessary or appro9 priate to implement this part.’’;

10 (18) in section 166 (42 U.S.C. 6246) by strik11 ing all after appropriated’’ and inserting ‘‘the funds

12 necessary or appropriate to implement this part.’’;

13 (19) in section 167 (42 U.S.C. 6247)—

14 (A) in subsection (b)—

15 (i) by inserting ‘‘test sales of petro16 leum products from the Reserve,’’ after

17 ‘‘Strategic Petroleum Reserve,’’;

18 (ii) by striking paragraph (1); and

19 (iii) in paragraph (2), by striking

20 ‘‘after fiscal year 1982’’; and

21 (B) by amending subsection (e) to read as

22 follows

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

24 U.S.C. 681–688) applies to funds made available under

25 subsection (b).’’;
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1 (20) in section 172 (42 U.S.C. 6249a) by strik2 ing subsections (a) and (b);

3 (21) by striking section 173 (42 U.S.C. 6249b);

4 and

5 (22) in section 181 (42 U.S.C. 6251), by strik6 ing ‘‘1994’’ each time it appears and inserting

7 ‘‘1999’’.

8 SEC. 4. Title II of the Energy Policy and Conserva9 tion Act (42 U.S.C. 6211–6251) is amended—

10 (1) by striking Part A (42 U.S.C. 201 through

11 204);

12 (2) in section 252 (42 U.S.C. 6272)—

13 (A) in subsections (a)(1) and (b), by strik14 ing ‘‘allocation and information’’ and inserting

15 ‘‘emergency response’’;

16 (B) in subsection (d)(3), fy striking

17 ‘‘known’’ and inserting after ‘‘circumstances’’

18 ‘‘known at the time of approval’’;

19 (C) in subsection (e)(2) by striking ‘‘slall’’

20 and inseruing ‘‘may’’;

21 (D) in subsection (f)(2) by inserting ‘‘vol22 untary agreement or’’ after ‘‘approved’’;

23 (E) by amending subsection (h) to read as

24 follows:
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1 ‘‘(h) Section 708 of the Defense Production Act of

2 1950 shall not apply to any agreement or action under3 taken for the purpose of developing or carrying out—

4 ‘‘(1) the international energy program, or

5 ‘‘(2) any allocation, price control, or similar

6 program with respect to petroleum products under

7 this Act.’’;

8 (F) in subsection (i) by inserting ‘‘annu9 ally, or’’ after ‘‘least’’ and by inserting ‘‘during

10 an international energy supply emergency’’

11 after ‘‘months’’;

12 (G) in subsection (k) by amending para13 graph (2) to read as follows:

14 ‘‘(2) The term ‘emergency response provisions

15 of the international energy program’ means—

16 ‘‘(A) the provisions of the international en17 ergy program which relate to international allo18 cation of petroleum products and to the infor19 mation system provided in the program, and

20 ‘‘(B) the emergency response measures

21 adopted by the Governing Board of the Inter22 national Energy Agency (including the July 11,

23 1984 decision by the Governing Board on

24 ‘‘Stocks and Supply Disruptions’’) for the co25 ordinated drawdown of stocks of petroleum
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1 products held or controlled by‘governments and

2 complementary actions taken by governments

3 during an existing or impending international

4 oil supply disruption,‘whether or not inter5 national allocation of petroleum products is re6 quired by chapters III and IV of the inter7 national energy program.’’; andM

8 (H) by amending subsection (1) to read as

9 follows:

10 ‘‘(1) The antitrust defense under subsection (f)

11 applies only to the development or carrying out of

12 voluntary agreements and plans of action to imple13 ment the emergency response provisions of the inter14 national energy program, except that in the event

15 the International Energy Agency seeks advice and

16 information concerning preparation and implementa17 tion of measures by governments on the coordinated

18 drawdown of stocks of petroleum products and com19 plementary actions as described in subsection

20 (k)(2)(B), the antitrust defense also applies but only

21 to advising and consulting with and providing infor22 mation or data to the International Energy Agency

23 according to procedures set forth in a voluntary

24 agreement or plan of action, unless the Attorney

25 General, after consultation with the Secretary of
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1 State, the Secretary of Energy, and the Federal

2 Trade Commission, determines that additional ac3 tions are necessary or appropriate to fulfill the pur4 pose of this section; provided that the antitrust de5 fense shall not extend to the international allocation

6 of petroleum products unless allocation is required

7 by chapters III and IV of the international energy

8 program during an international energy supply

9 emergency.’’;

10 (3) by adding at the end of section 256(h),

11 ‘‘There are authorized to be appropriated for fiscal

12 years 1996 through 1999, such sums as may be nec13 essary.’’

14 (4) by striking Part C (42 U.S.C. 271 through

15 272); and

16 (5) in section 281 (42 U.S.C. 6285), by striking

17 ‘‘1994’’ each time it appears and inserting ‘‘1999’’.

18 SEC. 5. (a) Title III of the Energy Policy and Con19 servation Act (42 U.S.C. 6291–6327, 6361–6374d) is

20 amended—

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

22 amending paragraph (1) to read as follows:

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

24 the purpose of carrying out this part, there are au25 thorized to be appropriated for fiscal years‘1995
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1 uhrough 1999, such sums as0may be necessary.’’;

2 and

3 (2) section 3y7 (52(U.S.C. 6371f) is amended

4 uo read as follows: ‘‘For the purpose of carrying out

5 this part, there′′are authorized uo be appropriated

6 for fiscal years 1995 through 1999, such sums as

7 may be necessary.’’.

8 (b) Section 422 of the Energy Conservation and Pro9 duction Act (42 U.S.C. 6872) is amended to read as fol10 lows:

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

12 weatherization program under this part, there are author13 ized to be appropriated for fiscal years 1995 through

14 1999, such sums as may be necessary.’’.

15 SEC. 6. Title V of the Energy Policy and Conserva16 tion Act (42 U.S.C. 6381–6422) is amended—

17 (1) by striking section 507 (42 U.S.C. 6385),

18 and

19 (2) by striking section 522 (42 U.S.C. 6392).

20 TITLE I—AMENDMENTS TO ENERGY

21 POLICY AND CONSERVATION ACT

22 SEC. 101. SHORT TITLE.

23 This title may be cited as the ‘‘Energy Policy and Con24 servation Act Amendments of 1994’’.
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1 SEC. 102. TITLE I AMENDMENTS.

2 (a) Part B of title I of the Energy Policy and Con3 servation Act is amended—

4 (1) in section 160 (42 U.S.C. 6240), by striking

5 subsection (d); and

6 (2) by amending section 165 (42 U.S.C. 6245) to

7 read as follows:

8 ‘‘SEC. 165. The Secretary shall report annually to the

9 President and the Congress on actions to implement this

10 part. This report shall include—

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

12 Strategic Petroleum Reserve, including—

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

14 scheduled annual fill rate for achieving this ca15 pacity;

16 ‘‘(B) the types and quality of crude oil to

17 be acquired for the Reserve, including the method

18 of procurement, under the schedule described in

19 subparagraph (A);

20 ‘‘(C) any conditions affecting the physical

21 integrity of any Reserve facility, or the petro22 leum products stored in any Reserve facility,

23 that would impair the maintenance or operation

24 of the Reserve, including any proposed remedial

25 actions, their estimated costs, and schedules for

26 their execution;
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1 ‘‘(D) plans for the construction of new Re2 serve facilities or the enhancement or improve3 ment of existing Reserve facilities, including

4 their estimated costs and schedules for comple5 tion;

6 ‘‘(E) specific actions being taken or antici7 pated to complete and maintain a 750 million

8 barrel Reserve;

9 ‘‘(F) specific actions being taken to complete

10 preparations of plans for expansion of the Re11 serve to a capacity of 1 billion barrels;

12 ‘‘(G) a description of the current method of

13 drawdown and distribution to be utilized; and

14 ‘‘(H) an explanation of any changes made

15 in the matters described in subparagraphs (A)

16 through (G) since the transmittal of the previous

17 report under this section;

18 ‘‘(2) a summary of the actions being taken to de19 velop, operate, or maintain the Strategic Petroleum

20 Reserve;

21 ‘‘(3) a summary of any actions taken or pro22 posed to achieve the petroleum product storage objec23 tives for the Reserve through the acquisition of petro24 leum products by the acquisition of leasing of petro25 leum products, or by other means;
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1 ‘‘(4) a review of any proposal received from a

2 person, including a State or local governmental en3 tity, that would further the objectives of the Reserve,

4 including the financing or leasing of Reserve storage

5 facilities or petroleum products, or both, and any an6 ticipated actions on such a proposal;

7 ‘‘(5) a description of current United States and

8 International Energy Agency policies and practices

9 applicable to the drawdown and distribution of the

10 Reserve, including any changes in such policies and

11 the rationale for such changes;

12 ‘‘(6) a summary of the financial transactions in

13 the Strategic Petroleum Reserve and SPR Petroleum

14 Account;

15 ‘‘(7) a summary of existing problems with re16 spect to operation or maintenance of the Strategic Pe17 troleum Reserve; and

18 ‘‘(8) any recommendations for supplemental leg19 islation the Secretary considers necessary or appro20 priate to implement this part.’’.

21 (b) Part C of title I of the Energy Policy and Con22 servation Act is amended by striking section 173 (42 U.S.C.

23 6249b).

24 (c) Part D of title I of the Energy Policy and Con25 servation Act is amended in section 181 (42 U.S.C. 6251)
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1 by striking ‘‘1994’’ each time it appears and inserting

2 ‘‘1999’’.

3 (d) CONFORMING AMENDMENT.—The table of contents

4 of the Energy Policy and Conservation Act is amended by

5 striking out the item relating to section 173 of part C of

6 title I.

7 SEC. 103. TITLE II AMENDMENTS.

8 Part D of title II of the Energy Policy and Conserva9 tion Act is amended in section 281 (42 U.S.C. 6285) by

10 striking ‘‘1994’’ each time it appears and inserting ‘‘1999’’.

11 TITLE II—AMENDMENTS TO DEPARTMENT

12 OF ENERGY ORGANIZATION ACT

13 SEC. 201. STANDARDIZATION OF REQUIREMENTS AFFECT14 ING DEPARTMENT OF ENERGY EMPLOYEES.

15 (a) REPEAL.—Part A of title VI of the Department

16 of Energy Organization Act and its catchline (42 U.S.C.

17 7211, 7212, and 7218) are repealed.

18 (b) CONFORMING AMENDMENT.—The table of contents

19 of the Department of Energy Organization Act is amended

20 by striking out the matter relating to part A of title VI.

21 TITLE III—INITIATIVES PERTAINING TO

22 THE LOWER MISSISSIPPI DELTA REGION

23 SEC. 301. FINDINGS.

24 (a) The Congress finds that—
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1 (1) in 1988, Congress enacted Public Law 100–

2 460, establishing the Lower Mississippi Delta Devel3 opment Commission, to assess the needs, problems,

4 and opportunities of people living in the Lower Mis5 sissippi Delta Region that includes 219 counties and

6 parishes within the States of Arkansas, Illinois, Ken7 tucky, Louisiana, Mississippi, Missouri, and Ten8 nessee;

9 (2) the Commission conducted a thorough inves10 tigation to assess these needs, problems, and opportu11 nities, and held several public hearings throughout the

12 Delta Region;

13 (3) on the basis of these investigations, the Com14 mission issued the Delta Initiatives Report, which in15 cluded recommendations on natural resource protec16 tion, historic preservation, and the enhancement of

17 educational and other opportunities for Delta Region

18 residents; and

19 (4) the Delta Initiatives Report recommended—

20 (A) the implementation of precollege edu21 cation programs in mathematics and science as

22 well as other initiatives to enhance the edu23 cational and technical capabilities of the Delta

24 work force;
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1 (B) that States and local systems seek ways

2 to expand the pool of qualified educators in

3 mathematics and the sciences;

4 (C) that institutions in the Delta Region

5 work with local school districts to promote math6 ematics and science education;

7 (D) that Federal agencies target more re8 search and development monies in selected areas

9 to institutions of higher education in the Delta

10 Region, especially Historically Black Colleges

11 and Universities;

12 (E) that institutions of higher education es13 tablish a regional consortium to provide tech14 nical assistance and training to increase inter15 national trade between businesses in the Delta

16 Region and foreign countries;

17 (F) that the Federal government should cre18 ate economic incentives to encourage the location

19 of value-added facilities for processing agricul20 tural products within the Delta Region; and

21 (G) that Congress provide practical incen22 tives to encourage the construction of alternative

23 fuel production facilities in the Delta Region.

24 SEC. 302. DEFINITIONS.

25 As used in this title, the term—
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1 (1) ‘‘Center’’ means the Delta Energy Technology

2 and Business Development Center established under

3 section 303 of this Act;

4 (2) ‘‘Commission’’ means the Lower Mississippi

5 Delta Development Commission established pursuant

6 to Public Law 100–460;

7 (3) ‘‘Delta Initiatives Report’’ means the May

8 14, 1990 Final Report of the Commission entitled

9 ‘‘The Delta Initiatives: Realizing the Dream. . . Ful10 filling the Potential’’;

11 (4) ‘‘Delta Region’’ means the Lower Mississippi

12 Delta Region including the 219 counties and parishes

13 within the States of Arkansas, Illinois, Kentucky,

14 Louisiana, Mississippi, Missouri, and Tennessee, as

15 defined in the Delta Initiatives Report, except that,

16 for any State for which the Delta Region as defined

17 in such report comprises more than half of the geo18 graphic area of such State, the entire State shall be

19 considered part of the Delta Region for purposes of

20 this Act;

21 (5) ‘‘Department’’ means the United States De22 partment of Energy, unless otherwise specifically stat23 ed;

24 (6) ‘‘departmental laboratory’’ means a facility

25 operated by or on behalf of the Department of Energy
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1 that would be considered a laboratory as that term is

2 defined in section 12 of the Stevenson-Wydler Tech3 nology Innovation Act of 1980 (15 U.S.C. 3710(d)(2))

4 or other laboratory or facility the Secretary des5 ignates;

6 (7) ‘‘Historically Black College or University’’

7 means a college or university that would be consid8 ered a ‘‘part B institution’’ by section 322(2) of the

9 Higher Education act of 1965 (20 U.S.C. 1061(2));

10 (8) ‘‘minority college or University’’ means a

11 Historically Black College or University that would

12 be considered a ‘‘part B institution’’ by section

13 322(2) of the Higher Education Act of 1965 (20

14 U.S.C. 1061(2)) or a ‘‘minority institution’’ as that

15 term is defined in section 1046 of the Higher Edu16 cation Act of 1965 (20 U.S.C. 1135d–5(3));

17 (9) ‘‘persons in the Delta Region’’ means an en18 tity primarily located in the Delta Region, the con19 trolling interest (as defined by the Secretary) of which

20 is held by persons of the United States, including—

21 (A) a for-profit entity;

22 (B) a private foundation or corporation ex23 empt under section 501(c)(3) of the Internal Rev24 enue Code;
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1 (C) a nonprofit organization such as a pub2 lic trust;

3 (D) a trade or professional society;

4 (E) a tribal government;

5 (F) institutions of higher education; or

6 (G) a unit of State or local government;

7 and

8 (10) ‘‘Secretary’’ means the Secretary of Energy,

9 unless otherwise specifically stated.

10 SEC. 303. DELTA ENERGY TECHNOLOGY AND BUSINESS DE11 VELOPMENT CENTER.

12 (a) ESTABLISHMENT.—The Secretary shall enter into

13 an agreement with Louisiana State University in partner14 ship with Southern University in Baton Rouge, Louisiana,

15 to establish the Delta Energy Technology and Business De16 velopment Center. The agreement shall provide for coopera17 tive agreements with the University of Arkansas at Pine

18 Bluff, Arkansas, and Alcorn State University in Lorman,

19 Mississippi, and other universities and institutions in the

20 Delta Region, to carry out affiliated programs and coordi21 nate program activities at such universities and institu22 tions.

23 (b) PURPOSE.—The purpose of the Center shall be to—
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1 (1) foster the creation and retention of energy re2 source and manufacturing and related energy service

3 jobs in the Delta Region;

4 (2) encourage the export of energy resources and

5 technologies, including services related thereto, from

6 the Delta Region;

7 (3) develop markets for energy resources and

8 technologies manufactured in the Delta Region for use

9 in meeting the energy resource and technology needs

10 of foreign countries;

11 (4) encourage the successful, long-term market

12 penetration of energy resources and technologies man13 ufactured in the Delta Region into foreign countries;

14 (5) encourage participation in energy-related

15 projects in foreign countries by persons in the Delta

16 Region as well as the utilization in such projects of

17 energy resources and technologies significantly devel18 oped, demonstrated, or manufactured in the Delta Re19 gion; and

20 (6) assist in the establishment of technology

21 transfer programs in cooperation with Federal lab22 oratories to create businesses in energy resources and

23 technology in the Delta Region.
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1 (c) GENERAL.—The Center, in cooperation with par2 ticipating universities and institutions in the Delta Region,

3 shall—

4 (1) identify and foster the establishment of flexi5 ble manufacturing networks in consultation with the

6 States of the Delta Region to promote the development

7 of energy resources and technologies that have the po8 tential to expand technology development and manu9 facturing in, and exports from, the Delta Region;

10 (2) provide technical, business, training, market11 ing, and other assistance to persons in the Delta Re12 gion;

13 (3) develop a comprehensive database and infor14 mation dissemination system, that will provide de15 tailed information on the specific energy resources

16 and technologies of the Delta Region itself, as well as

17 domestic and international market opportunities for

18 businesses in the Delta Region, and electronically link

19 the Center with other institutions of higher education

20 in the Delta Region;

21 (4) establish a network of business and tech22 nology incubators to promote the design, manufacture,

23 and sale of energy resources and technologies from the

24 Delta Region;
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1 (5) enter into contracts, cooperative agreements,

2 and other arrangements with the Federal government,

3 international development agencies, or persons in the

4 Delta Region to carry out these objectives; and

5 (6) coordinate existing Department and other

6 Federal programs having comparable goals and pur7 poses.

8 (d) ASSISTANCE FROM THE SECRETARY.—The Sec9 retary is authorized to provide the Center assistance in ob10 taining such personnel, equipment, and facilities as may

11 be needed by the Center and affiliated participating univer12 sities and institutions to carry out its activities under this

13 section.

14 (e) GRANTS.—The Secretary is authorized to provide

15 grants and other forms of financial assistance to the Center

16 for the Center and participating universities and institu17 tions to (1) support the creation of flexible manufacturing

18 networks as identified in subsection (c)(1); and (2) develop

19 the comprehensive database described in paragraph (c)(3);

20 and (3) support the training, marketing, and other related

21 activities of the Center.

22 (f) ACCEPTANCE OF GRANTS AND TRANSFERS.—The

23 Center may accept—
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1 (A) grants and donations from private individ2 uals, groups, organizations, corporations, foundations,

3 State and local governments, and other entities; and

4 (B) transfers of funds from other Federal agen5 cies.

6 (g) AUTHORIZATION OF APPROPRIATIONS.—There are

7 authorized to be appropriated such sums as may be nec8 essary to carry out the programs under this section and

9 for the establishment, operation, construction, and mainte10 nance of the Center and facilities of participating univer11 sities and institutions.

12 SEC. 304. INSTITUTIONAL CONSERVATION PROGRAM FOR

13 THE DELTA REGION.

14 Title III of the Energy Policy and Conservation Act

15 (42 U.S.C. 6371, et seq.) is amended by adding a new sec16 tion 400K as follows:

17 ‘‘INSTITUTIONAL CONSERVATION PROGRAM FOR THE DELTA

18 REGION

19 ‘‘SEC. 400K. (a) PURPOSE.—The purpose of this sec20 tion is to encourage the use of energy conservation measures

21 in the schools and hospitals of the Delta Region.

22 ‘‘(b) GRANTS FOR ESTABLISHMENT OF PROGRAM.—

23 Not later than 12 months after the date of the enactment

24 of the Lower Mississippi Delta Initiatives Act of 1993, the

25 Secretary is authorized to provide grants to schools or hos26 pitals, or to consortiums consisting of a school or hospital
30

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1 and one or more of the following: State or unit of local gov2 ernment; local education agency; State hospital facilities

3 agency; or State school facilities agency. Such grants shall

4 be for purposes of conducting innovative energy conserva5 tion projects and providing Federal financing for energy

6 conservation projects at schools and hospitals in the Delta

7 Region.

8 ‘‘(c) APPLICATIONS.—(1) Applications of schools or

9 hospitals for grants under this section shall be made not

10 more than once for any fiscal year. Such applications shall

11 be submitted to the State energy agency, in consultation

12 with the Planning and Development Districts in the Delta

13 Region, and the State energy agency shall make a single

14 submittal to the Secretary containing all applications

15 which comply with subsection (e).

16 ‘‘(2) Applications for grants shall contain, or be ac17 companied by, such information as the Secretary may rea18 sonably require in accordance with regulations governing

19 institutional conservation programs under this part; pro20 vided, however, that the Secretary shall encourage flexible

21 and innovative approaches consistent with this Act.

22 ‘‘(d) SELECTION OF APPLICATIONS.—(1) Not later

23 than six months after the receipt of applications under sub24 section (c), the Secretary shall select at least seven, but not
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1 more than 21, proposals from States to receive grants under

2 subsection (b).

3 ‘‘(2) The Secretary may select more than 21 applica4 tions under this subsection, if the Secretary determines that

5 the total amount of available funds is not likely to be other6 wise utilized.

7 ‘‘(3) No one State shall receive less than one, or more

8 than four, grants under subsection (b).

9 ‘‘(4) Such grants shall be in addition to such grants

10 as would otherwise be provided under part G of this Act.

11 ‘‘(5) No one grant recipient under this section shall

12 receive Federal funds in excess of $2,000,000.

13 ‘‘(e) SELECTION CRITERIA.—The Secretary shall select

14 recipients of grants under this section on the basis of the

15 following criteria:

16 ‘‘(1) The location of the grant recipient in the

17 Delta Region.

18 ‘‘(2) The demonstrated or potential resources

19 available to the grant applicant for carrying out the

20 purposes of this section.

21 ‘‘(3) The demonstrated or potential ability of the

22 grant applicant to improve energy conservation meas23 ures in the designated school or hospital.
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1 ‘‘(4) Such other criteria as the Secretary deems

2 appropriate for carrying out the purposes of this sec3 tion.

4 ‘‘(f) DEFINITION.—For purposes of this section, the

5 term ‘Delta Region’ means the Lower Mississippi Delta Re6 gion including the 219 counties and parishes within the

7 States of Arkansas, Illinois, Kentucky, Louisiana, Mis8 sissippi, Missouri, and Tennessee, as defined in the May

9 14, 1990, Final Report of the Lower Mississippi Delta De10 velopment Commission entitled ‘The Delta Initiatives: Real11 izing the Dream . . . Fulfilling the Potential.’

12 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There is

13 authorized to be appropriated for purposes of carrying out

14 this section, to remain available until expended, not more

15 than $20,000,000 for each of fiscal years 1996, and 1997,

16 and 1998.’’.

17 SEC. 305. ENERGY RELATED EDUCATIONAL INITIATIVES.

18 (a) MINORITY COLLEGE OR UNIVERSITY INITIATIVE.—

19 (1) Within one year after the date of the enactment of this

20 Act, and annually thereafter, the Secretary shall submit to

21 the Committee on Energy and Natural Resources of the

22 United States Senate and to the United States House of

23 Representatives a report identifying opportunities for mi24 nority colleges and universities to participate in programs

25 and activities carried out by the Department or the depart-
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1 mental laboratories. The Secretary shall consult with rep2 resentatives of minority colleges or universities in prepar3 ing the report. Such report shall—

4 (A) describe ongoing education and training pro5 grams carried out by the Department or the depart6 mental laboratories with respect to, or in conjunction

7 with, minority colleges or universities in the areas of

8 mathematics, science, and engineering;

9 (B) describe ongoing research, development, dem10 onstration, or commercial application activities in11 volving the Department or the departmental labora12 tories and minority colleges or universities;

13 (C) describe funding levels for the programs re14 ferred to in subparagraphs (A) and (B);

15 (D) identify ways for the Department or the de16 partmental laboratories to assist minority colleges or

17 universities in providing education and training in

18 the fields of mathematics, the sciences, and engineer19 ing;

20 (E) identify ways for the Department or the de21 partmental laboratories to assist minority colleges

22 and universities in entering into partnerships;

23 (F) address the need for, and potential role of,

24 the Department or the departmental laboratories in

25 providing minority colleges or universities with—
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1 (i) increased research opportunities for fac2 ulty and students;

3 (ii) assistance in faculty development and

4 recruitment;

5 (iii) curriculum enhancement and develop6 ment; and

7 (iv) improved laboratory instrumentation

8 and equipment, including computer equipment,

9 through purchase, loan, or other transfer mecha10 nisms;

11 (G) address the need for, and potential role of,

12 the Department or departmental laboratories in pro13 viding financial and technical assistance for the de14 velopment of infrastructure facilities, including build15 ings and laboratory facilities, at minority colleges

16 and universities; and

17 (H) make specific proposals and recommenda18 tions, together with estimates of necessary funding

19 levels, for initiatives to be carried out by the Depart20 ment or the departmental laboratories in order to as21 sist minority colleges or universities in providing

22 education and training in the areas of mathematics,

23 the sciences, and engineering, and in entering into

24 partnerships with the Department or departmental

25 laboratories.
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1 (2) The Secretary shall encourage memoranda of un2 derstanding and other appropriate forms of agreement be3 tween the Department and minority colleges and univer4 sities directed at jointly planning and developing programs

5 to foster greater involvement of minority colleges and uni6 versities in research, education, training, and recruitment

7 activities of the Department.

8 (b) MINORITY COLLEGE AND UNIVERSITY SCHOLAR9 SHIP PROGRAMS FOR THE DELTA REGION.—The Secretary

10 shall establish a scholarship program for students pursuing

11 undergraduate or graduate degrees in energy-related sci12 entific, mathematical, engineering, and technical dis13 ciplines at minority colleges and universities in the Delta

14 Region. The scholarship program shall include tuition as15 sistance. Recipients of such scholarships shall be students

16 deemed by the Secretary to have demonstrated (1) a need

17 for such assistance and (2) academic potential in the par18 ticular area of study.

19 (c) PRE-COLLEGE EDUCATION.—The Secretary shall

20 undertake activities to encourage pre-college education pro21 grams in energy-related scientific, mathematical, engineer22 ing, and technical disciplines for students in the Delta Re23 gion. Such activities shall include, but not be limited to

24 the following:
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1 (1) Cooperation with, and assistance to, State

2 departments of education and local school districts in

3 the Delta Region to develop and carry out after school

4 and summer education programs for elementary, mid5 dle, and secondary school students in energy-related

6 scientific, mathematical, engineering and technical

7 disciplines.

8 (2) Cooperation with, and assistance to, institu9 tions of higher education in the Delta Region to de10 velop and carry out pre-college education programs in

11 energy-related scientific, mathematical, engineering,

12 and technical disciplines for middle and secondary

13 school students.

14 (3) Cooperation with, and assistance to, State

15 departments of education and local school districts in

16 the development and use of curriculum and edu17 cational materials in energy-related scientific, mathe18 matical, engineering, and technical disciplines for

19 middle and secondary students.

20 (4) The establishment of education programs in

21 subjects relating to energy-related scientific, mathe22 matical, engineering, and technical disciplines for ele23 mentary, middle, and secondary school teachers in the

24 Delta Region.
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1 (d) VOLUNTEER PROGRAM.—The Secretary shall carry

2 out a program to encourage the involvement on a voluntary

3 basis of qualified employees of the Department in education

4 programs relating to energy-related scientific, mathemati5 cal, engineering, and technical disciplines, in cooperation

6 with State departments of education and local school dis7 tricts in the Delta Region.

8 (e) WOMEN AND MINORITIES IN THE SCIENCES.—The

9 Secretary shall establish a Center for Excellence in the

10 Sciences at Alcorn State in Lorman, Mississippi, in co11 operation with Southern University in Baton Rouge, Lou12 isiana, and the University of Arkansas at Pine Bluff, Ar13 kansas, and other minority colleges or universities for pur14 poses of encouraging women and minority students in the

15 Delta Region to study and pursue careers in the sciences,

16 mathematics, engineering and technical disciplines. The

17 Center shall enter into cooperative agreements with South18 ern University in Baton Rouge, Louisiana, and the Univer19 sity of Arkansas at Pine Bluff, Arkansas, and other minor20 ity colleges and universities in the Delta Region, to carry

21 out affiliated programs and coordinate programs activities

22 at such colleges and universities. The Secretary is author23 ized to provide grants and other forms of financial assist24 ance to the Center.
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1 (f) COORDINATION WITH OTHER FEDERAL AGEN2 CIES.—The Secretary shall ensure that the programs au3 thorized in this section are coordinated with, and com4 plimentary to, education assistance programs administered

5 by the Department and by other Federal agencies in the

6 Delta Region. These agencies include, but are not limited

7 to, the Department of the Interior, the Department of Agri8 culture, the Department of Education, the National Science

9 Foundation, and the National Aeronautics and Space Ad10 ministration.

11 (g) AUTHORIZATION OF APPROPRIATIONS.—There is

12 hereby authorized to be appropriated such sums as may be

13 necessary to carry out the purposes of this section.

14 SEC. 306. INTEGRATED BIOMASS ENERGY SYSTEMS.

15 (a) PROGRAM DIRECTION.—The Secretary, in con16 sultation with the Secretary of Agriculture, shall conduct

17 a research, development and demonstration program to de18 termine the economic viability of integrated biomass energy

19 systems within the Delta Region.

20 (b) PROGRAM PLAN.—Not later than six months after

21 the date of enactment of this Act, the Secretary shall pre22 pare and submit to the Congress a program plan to guide

23 the activities under this section.

24 (c) SOLICITATION OF PROPOSALS.—Not later than one

25 year after the date of enactment of this Act, the Secretary
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1 shall solicit proposals for conducting activities consistent

2 with the program plan. Such activities shall include at least

3 three demonstrations of integrated biomass energy systems

4 that—

5 (1) involve the production of dedicated energy

6 crops of not less than 25,000 acres per demonstration;

7 (2) include predominately herbaceous energy

8 crops;

9 (3) include predominately short-rotation woody

10 crops;

11 (4) demonstrate cost-effective methods of growing,

12 harvesting, storing, transporting, and preparing en13 ergy crops for conversion to electricity or transpor14 tation fuel; and

15 (5) result in the conversion of such crops to elec16 tricity or transportation fuel by a non-Federal energy

17 producer or the Tennessee Valley Authority.

18 (d) COST SHARING.—(1) For research, development,

19 and demonstration programs carried out under this section,

20 the Secretary shall require a commitment from non-Federal

21 sources of at least 20 percent of the cost of the project.

22 (2) The Secretary shall require at least 50 percent of

23 the costs directly and specifically related to any demonstra24 tion or commercial application project under this section

25 to be provided from non-Federal sources. The Secretary may
40

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1 reduce the non-Federal requirement under this section if the

2 Secretary determines that the reduction is necessary and

3 appropriate considering the technological risks involved in

4 the project and is necessary to meet the objectives of this

5 section.

6 (3) In calculating the amount of the non-Federal com7 mitment under paragraph (1) or (2), the Secretary shall

8 include cash, personnel, services, equipment, and other re9 sources.

10 (e) AUTHORIZATION OF APPROPRIATIONS.—There is

11 authorized to be appropriated for purposes of carrying out

12 this section, to remain available until expended, not more

13 than $10,000,000 for each of fiscal years 1996, 1997, and

14 1998.

15 SEC. 307. WEATHERIZATION ASSISTANCE PROGRAM FOR

16 THE DELTA REGION.

17 Title IV of the Energy Conservation and Production

18 Act (42 U.S.C. 6851, 6861–6846) is further amended by

19 adding a new section 423 as follows:

20 ‘‘WEATHERIZATION ASSISTANCE PROGRAM FOR THE DELTA

21 REGION

22 ‘‘SEC. 423. (a) PURPOSE.—The purpose of this section

23 is to encourage the weatherization of low-income dwelling

24 units in the Delta Region.

25 ‘‘(b) GRANTS FOR ESTABLISHMENT OF PROGRAM.—

26 Not later than 12 months after the date of the enactment
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1 of the Lower Mississippi Delta Initiatives Act of 1993, the

2 Secretary shall make grants to (1) States, and (2) in ac3 cordance with the provisions of subsection (413)(d), to In4 dian tribal organizations to serve Native Americans in the

5 Delta Region. Such grants shall be made for the purposes

6 of providing financial assistance for the weatherization of

7 low-income dwelling units.

8 ‘‘(c) APPLICATIONS.—(1) Applications of States or In9 dian tribal organizations for grants under this section shall

10 be made not more than once for any fiscal year. Such appli11 cations shall be submitted to the State weatherization agen12 cy, in consultation with Community Action Agencies and

13 Planning and Development Districts in the Delta Region,

14 and the State weatherization agency shall make a single

15 submittal to the Secretary containing all applications

16 which comply with subsection (e).

17 ‘‘(2) Applications for grants for energy conservation

18 projects shall contain, or be accompanied by, such informa19 tion as the Secretary may reasonably require in accordance

20 with regulations governing weatherization assistance pro21 grams under this Part.

22 ‘‘(d) SELECTION OF APPLICATIONS.—(1) The Sec23 retary shall select applications from States to receive grants

24 under subsection (b).
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1 ‘‘(2) Such grants shall be in addition to such grants

2 as would otherwise be provided under section 414 of this

3 Act.

4 ‘‘(3) No one grant recipient under this section shall

5 receive Federal funds in excess of $2,000,000.

6 ‘‘(e) SELECTION CRITERIA.—The Secretary shall select

7 recipients of grants under this section in accordance with

8 the requirements of sections 414(b) and 415 of this Act, and

9 on the basis of the following criteria:

10 ‘‘(1) The location of the grant applicant in the

11 Delta Region.

12 ‘‘(2) The demonstrated or potential resources

13 available to the grant applicant for carrying out the

14 purposes of this section.

15 ‘‘(3) The demonstrated or potential ability of the

16 grant applicant to improve energy efficiency in low17 income dwelling units.

18 ‘‘(f) COORDINATION WITH OTHER WEATHERIZATION

19 ASSISTANCE PROGRAMS.—The Secretary shall ensure that

20 the programs authorized in this section are coordinated

21 with, and complimentary to, Department weatherization

22 assistance programs under section 413, 414A and 414B of

23 this title.

24 ‘‘(g) DEFINITION.—For purposes of this section, the

25 term ‘Delta Region’ means the Lower Mississippi Delta Re-
43

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1 gion including the 219 counties and parishes within the

2 States of Arkansas, Illinois, Kentucky, Louisiana, Mis3 sissippi, Missouri, and Tennessee, as defined in the May

4 14, 1990 Final Report of the Lower Mississippi Delta De5 velopment Commission entitled ‘The Delta Initiatives: Real6 izing the Dream . . . Fulfilling the Potential.’

7 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is

8 authorized to be appropriated for purposes of carrying out

9 this section, to remain available until expended, not more

10 than $20,000,000 for each of fiscal years 1996, 1997, and

11 1998.’’.

12 SEC. 308. RENEWABLE ENERGY PRODUCTION INCENTIVES.

13 Section 1212 of the Energy Policy Act of 1992 (42

14 U.S.C. 13317) is amended by inserting immediately after

15 ‘‘foregoing,’’ the following: ‘‘by the Tennessee Valley Author16 ity,’’.

17 TITLE IV—PURCHASES FROM THE STRA18 TEGIC PETROLEUM RESERVE BY THE

19 STATE OF HAWAII.

20 SEC. 401. (a) GENERAL PROVISIONS.—Section 161 of

21 the Energy Policy and Conservation Act (42 U.S.C. 6241)

22 is amended by adding at the end the following new sub23 section:
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1 ‘‘(j)(1) With respect to each offering of a quantity of

2 petroleum product during a drawdown of the Strategic Pe3 troleum Reserve—

4 ‘‘(A) the State of Hawaii, in addition to having

5 the opportunity to submit a competitive bid, may—

6 ‘‘(i) submit a binding offer, and shall on

7 submission of the bid, be entitled to purchase a

8 category of petroleum product specified in a no9 tice of sale at a price equal to the volumetrically

10 weighted average of the successful bids made for

11 the remaining quantity of petroleum product

12 within the category that is the subject of the of13 fering; and

14 ‘‘(ii) submit one or more alternative offers,

15 for other categories of petroleum product, that

16 will be binding in the event that no price com17 petitive contract is awarded for the category of

18 petroleum product on which a binding offer is

19 submitted under clause (i); and

20 ‘‘(B) at the request of the Governor of the State

21 of Hawaii, petroleum product purchased by the State

22 of Hawaii at a competitive sale or through a binding

23 offer shall have first preference in scheduling for lift24 ing.
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1 ‘‘(2)(A) In administering this subsection, and with re2 spect to each offering, the Secretary may impose the limita3 tion described in subparagraph (B) or (C) that results in

4 the purchase of the lesser quantity of petroleum product.

5 ‘‘(B) The Secretary may limit the quantity of petro6 leum product that the State of Hawaii may purchase

7 through a binding offer at any one offering to 1-1/2 of the

8 total quantity of imports of petroleum product brought into

9 the State during the previous year (or other period deter10 mined by the Secretary to be representative).

11 ‘‘(C) The Secretary may limit the quantity that may

12 be purchased through binding offers at any one offering to

13 3 percent of the offering.

14 ‘‘(3) Notwithstanding any limitation imposed under

15 paragraph (2), in administering this subsection, and with

16 respect to each offering, the Secretary shall, at the request

17 of the Governor of the State of Hawaii, adjust the quantity

18 to be sold to the State of Hawaii or an eligible entity cer19 tified under paragraph (6), as follows:

20 ‘‘(A) The Secretary shall adjust upward to the

21 next whole number increment of a full tanker load if

22 the quantity to be sold is—

23 ‘‘(i) less than one full tanker load; or
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1 ‘‘(ii) greater than or equal to 50 percent of

2 a full tanker load more than a whole number in3 crement of a full tanker load.

4 ‘‘(B) The Secretary shall adjust downward to the

5 next whole number increment of a full tanker load if

6 the quantity to be sold is less than 50 percent of a

7 full tanker load more than a whole number increment

8 of a full tanker load.

9 ‘‘(4) The State of Hawaii or an eligible entity may

10 enter into an exchange or a processing agreement that re11 quires delivery to other locations, so long as petroleum prod12 uct of similar value or quantity is delivered to the State

13 of Hawaii.

14 ‘‘(5) Except as otherwise provided in this Act, the Sec15 retary may require the State of Hawaii and any eligible

16 entity that purchases petroleum product under this sub17 section to comply with the standard sales provisions appli18 cable to purchasers of petroleum product at competitive

19 sales.

20 ‘‘(6)(A) Notwithstanding the foregoing, and subject to

21 subparagraphs (B) and (C), if the Governor of the State

22 of Hawaii certifies to the Secretary that the State has en23 tered into an agreement with an eligible entity to effectuate

24 the purposes of this Act, such eligible entity may submit
47

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1 a binding offer and receive first preference in scheduling

2 for lifting in accordance with this subsection.

3 ‘‘(B) The Governor of the State of Hawaii shall not

4 certify more than one eligible entity under this paragraph

5 for each notice of sale.

6 ‘‘(C) If the Secretary has notified the Governor of the

7 State of Hawaii that a company has been barred from bid8 ding (either prior to, or at the time that a notice of sale

9 is issued), the Governor shall not certify such company

10 under the paragraph.

11 ‘‘(7) As used in this subsection—

12 ‘‘(A) the term ‘binding offer’ means a bid sub13 mitted by the State of Hawaii or an eligible entity

14 for an assured award of a specific quantity of petro15 leum product, with a price to be calculated pursuant

16 to this Act, that obligates the offeror to take title to

17 the petroleum product without further negotiation or

18 recourse to withdraw the offer;

19 ‘‘(B) the term ‘category of petroleum’ means the

20 master line items within a notice of sale;

21 ‘‘(C) the term ‘eligible entity’ means an entity

22 that owns or controls a refinery that is located within

23 the State of Hawaii;

24 ‘‘(D) the term ‘full tanker load’ means a tanker

25 of approximately 700,000 barrels of capacity, or such
48

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1 lesser tanker capacity as may be designated by the

2 State of Hawaii or the eligible entity submitting the

3 binding offer;

4 ‘‘(E) the term ‘offering’ means a solicitation for

5 bids for a quantity or quantities of petroleum product

6 from the Strategic Petroleum Reserve as specified in

7 the notice of sale; and

8 ‘‘(F) the term ‘notice of sale’ means the document

9 that announces—

10 ‘‘(i) the sale of strategic petroleum reserve

11 products;

12 ‘‘(ii) the quantity, characteristics, and loca13 tion of the petroleum product being sold;

14 ‘‘(iii) the delivery period for the sale; and

15 ‘‘(iv) the procedures for submitting offers.’’.

16 (b) EFFECTIVE DATE.—The amendment made by sub17 section (a) shall take effect on the date that is 180 days

18 after the date of enactment of this Act or the date that final

19 regulations are promulgated pursuant to section 3, which20 ever is sooner.

21 SEC. 402. REGULATIONS.

22 (a) IN GENERAL.—The Secretary shall promulgate

23 such regulations as are necessary to carry out section 2.

24 (b) PLAN AMENDMENTS.—No amendment of the Stra25 tegic Petroleum Reserve Plan or the Distribution Plan con-
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1 tained in the Strategic Petroleum Reserve Plan is required

2 for any action taken under this Act if the Secretary deter3 mines that an amendment to the plan is necessary to carry

4 out this section.

5 (c) ADMINISTRATIVE PROCEDURE.—Regulations is6 sued to carry out this Act shall not be subject to—

7 (1) section 523 of the Energy Policy and Con8 servation Act (42 U.S.C. 6393); or

9 (2) section 501 of the Department of Energy Or10 ganization Act (42 U.S.C. 7191).

Æ