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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2251 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2251

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

_______________________________________________________________________

                                 A BILL

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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may be 
cited as the ``Energy Policy and Conservation Act Amendments Act''.
    Sec. 2. Section 2 of the Energy Policy and Conservation Act (42 
U.S.C. 6201) is amended--
            (1) in paragraph (1) by striking ``standby'' and ``, 
        subject to congressional review, to impose rationing, to reduce 
        demand for energy through the implementation of energy 
        conservation plans, and''; and
            (2) by striking paragraphs (3) and (6).
    Sec. 3. Title I of the Energy Policy and Conservation Act (42 
U.S.C. 6211-6251) is amended--
            (1) by striking section 102 (42 U.S.C. 6211);
            (2) in section 105 (42 U.S.C. 6213)--
                    (A) by amending subsection (a) to read as follows--
    ``(a) The Secretary of the Interior shall prohibit the bidding for 
any right to develop crude oil, natural gas, and natural gas liquids on 
any lands located on the Outer Continental Shelf by any person if more 
than one major oil company, more than one affiliate of a major oil 
company, or a major oil company and any affiliate of a major oil 
company, has or have a significant ownership interest in that person, 
when the Secretary determines prior to any lease sale that this bidding 
would adversely affect competition or the receipt of fair market 
value.''; and
                    (B) by striking subsections (c) and (e);
            (3) by striking section 106 (42 U.S.C. 6214);
            (4) in section 1151 (42 U.S.C. 6231)--
                    (A) in subsection (a) by striking ``limited'' and 
                ``short-term''; and
                    (B) by amending subsection (b) to read as follows:
    ``(b) It is the policy of the United States to provide for the 
creation of a Strategic Petroleum Reserve for the storage of up to 1 
billion barrels of petroleum products to reduce the impact of 
disruptions in supplies of petroleum products or to carry out 
obligations of the United States under the international energy 
program.'';
            (5) in section 152 (42 U.S.C. 6232)--
                    (A) by striking paragraph (1), and
                    (B) in paragraph (11) by striking '', the Early 
                Storage Reserve'';
            (6) by striking section 153 (42 U.S.C. 6233);
            (7) in section 154 (42 U.S.C. 6234)--
                    (A) by amending subsection (a)(1) to read as 
                follows:
    ``(a)(1) A Strategic Petroleum Reserve for the storage of up to 1 
billion barrels of petroleum products shall be created pursuant to this 
part.'';
                    (B) by amending subsection (b) to read as follows:
    ``(b) The Secretary, acting through the Strategic Petroleum Reserve 
Office and in accordance with this part, shall exercise authority over 
the development, operation, and maintenance of the Reserve.''; and
                    (C) by striking subsections (c), (d), and (e);
            (8) by striking section 155 (42 U.S.C. 6235);
            (9) in section 156(b) (42 U.S.C. 6236(b)), by striking ``To 
        implement the Early Storage Reserve Plan or the Strategic 
        Petroleum Reserve Plan which has taken effect pursuant to 
        section 159(a), the'' and inserting ``The'';
            (10) by amending section 157 (42 U.S.C. 6237)--
                    (A) in subsection (a), by striking ``The Strategic 
                Petroleum Reserve Plan shall provide for the 
                establishment and maintenance of'' and insert ``The 
                Secretary shall establish and maintain as part of the 
                Strategic Petroleum Reserve'', and
                    (B) in subsection (b), by striking ``To implement 
                the Strategic Petroleum Reserve Plan, the Secretary 
                shall accumulate and maintain'' and inserting ``The 
                Secretary shall establish and maintain as part of the 
                Strategic Petroleum Reserve'';
            (11) by striking section 158 (42 U.S.C. 6238);
            (12) by amending the heading for section 159 (42 U.S.C. 
        6239) to read, ``Development, Operation, and Maintenance of the 
        Reserve'';
            (13) in section 159 (42 U.S.C. 6239)--
                    (A) by striking subsections (a), (b), (c), (d), and 
                (e);
                    (B) by amending subsection (f) to read as follows:
    ``(f) In order to develop, operate, or maintain the Strategic 
Petroleum Reserve, the Secretary may--
            ``(1) issue rules, regulations, or orders;
            ``(2) acquire by purchase, condemnation, or otherwise, land 
        or interests in land for the location of storage and related 
        facilities;
            ``(3) construct, purchase, lease, or otherwise acquire 
        storage and related facilities;
            ``(4) use, lease, maintain, sell, or otherwise dispose of 
        storage and related facilities acquired under this part, under 
        such terms and conditions as the Secretary may deem necessary 
        or appropriate;
            ``(5) acquire subject to the provisions of section 160 by 
        purchase, exchange, or otherwise, petroleum products for 
        storage in the Strategic Petroleum Reserve;
            ``(6) store petroleum products in storage facilities owned 
        and controlled by the United States or in storage facilities 
        owned by others if those facilities are subject to audit by the 
        United States;
            ``(7) execute any contracts necessary to develop, operate, 
        or maintain the Strategic Petroleum Reserve;
            ``(8) require an importer of petroleum products or refiner 
        to acquire and to store and maintain, in readily available 
        inventories, petroleum products in the Industrial Petroleum 
        Reserve, under section 156;
            ``(9) require the storage of petroleum products in the 
        Industrial Petroleum Reserve, under section 156, on terms that 
        the Secretary specifies in storage facilities owned and 
        controlled by the United States or in storage facilities other 
        than those owned by the United States if those facilities are 
        subject to audit by the United States;
            ``(10) require the maintenance of the Industrial Petroleum 
        Reserve; and
            ``(11) bring an action, when the Secretary considers it 
        necessary, in any court having jurisdiction over the 
        proceedings, to acquire by condemnation any real or personal 
        property, including facilities, temporary use of facilities, or 
        other interests in land, together with any personal property 
        located on or used with the land.'';
                    (C) in subsection (g)--
                            (i) by striking ``implementation'' and 
                        inserting ``development''; and
                            (ii) by striking ``Plan'';
                    (D) by striking subsections (h) and (i);
                    (E) by amending subsection (j) to read as follows:
    ``(j) When a pattern of appropriations for fill of the Strategic 
Petroleum Reserve develops such that a 750 million barrel inventory can 
reasonably be expected to be reached within five years by the 
continuation of that pattern, a plan for expansion will be submitted to 
the Congress.''; and
                    (F) by amending subsection (1) to read as follows:
            ``(1) During any period in which drawdown and distribution 
        are being implemented, the Secretary may issues rules, 
        regulations, or orders to implement the drawdown and 
        distribution of the Strategic Petroleum Reserve in accordance 
        with section 523 of this Act, without regard to the 
        requirements of section 553 of title 5, United States Code, and 
        section 501 of the Department of Energy Organization Act (42 
        U.S.C. 7191).'';
            (14) in section 160 (42 U.S.C. 6240)--
                    (A) in subsection (a), by striking all before the 
                dash and inserting the following:
    ``(a) To the extent funds are available under section 167(b) (2) 
and (3) and for the purposes of implementing the Strategic Petroleum 
Reserve, the Secretary may acquire, place in storage, transport, or 
exchange'';
                    (B) in subsection (b), by striking ``including the 
                Early Storage Reserve'' and paragraph (2); and
                    (C) by striking subsections (c), (d), and (e);
            (15) in section 161 (42 U.S.C. 6241)--
                    (A) by striking subsections (b) and (c);
                    (B) by amending subsection (d)(1) to read as 
                follows:
    ``(d)(1) No drawdown and distribution of the Strategic Petroleum 
Reserve may be made unless the President has found drawdown and 
distribution is required by a severe energy supply interruption or by 
obligations of the United States under the international energy 
program.''; and
                    (C) by amending subsection (e) to read as follows:
    ``(e)(1) The Secretary shall sell any petroleum product withdrawn 
from the Strategic Petroleum Reserve at public sale to the highest 
qualified bidder in the amounts, for the period, and after a notice of 
sale the Secretary considers proper, and without regard to Federal, 
State, or local regulations controlling sales of petroleum products.
    ``(2) The Secretary may cancel in whole or in part any offer to 
sell petroleum products as part of any drawdown and distribution under 
this Section.''; and
                    (D) in subsection (g)--
                            (i) in paragraph (1), by striking 
                        ``Distribution Plan'' and inserting 
                        ``distribution procedures'', and
                            (ii) by striking paragraphs (2) and (6);
            (16) by striking section 164 (42 U.S.C. 6244);
            (17) by amending section 165 (42 U.S.C. 6245) to read as 
        follows:
    ``Sec. 165. The Secretary shall report annually to the President 
and the Congress on actions taken to implement this part. This report 
shall include--
            ``(1) a detailed statement of the status of the Strategic 
        Petroleum Reserve, including--
                    ``(A) the capacity of the Reserve and the scheduled 
                annual fill rate for achieving this capacity;
                    ``(B) the scheduled annual fill rate for the fiscal 
                year for which the report is transmitted;
                    ``(C) the type and quality of crude oil to be 
                acquired for the Reserve under the schedule described 
                in subparagraph (A);
                    ``(D) the schedule of construction of any 
                facilities, including a description of the type and 
                location of the facilities, and of enhancements and 
                improvements to existing facilities;
                    ``(E) a description of the current method of 
                drawdown and distribution to be utilized; and
                    ``(F) an explanation of any changes made in the 
                matters described in subparagraphs (A) through (E) 
                since the transmittal of the previous report under this 
                section;
            ``(2) a summary of the actions taken to develop, operate, 
        or maintain the Strategic Petroleum Reserve;
            ``(3) a summary of the financial transactions in the 
        Strategic Petroleum reserve and SPR Petroleum Account; and
            ``(4) a summary of existing problems with respect to 
        operation or maintenance of the Strategic Petroleum Reserve; 
        and
            ``(5) any recommendation for supplemental legislation the 
        Secretary considers necessary or appropriate to implement this 
        part.'';
            (18) in section 166 (42 U.S.C. 6246) by striking all after 
        appropriated'' and inserting ``the funds necessary or 
        appropriate to implement this part.'';
            (19) in section 167 (42 U.S.C. 6247)--
                    (A) in subsection (b)--
                            (i) by inserting ``test sales of petroleum 
                        products from the Reserve,'' after ``Strategic 
                        Petroleum Reserve,'';
                            (ii) by striking paragraph (1); and
                            (iii) in paragraph (2), by striking ``after 
                        fiscal year 1982''; and
                    (B) by amending subsection (e) to read as follows
    ``(e) The Impoundment Control Act of 1974 (2 U.S.C. 681-688) 
applies to funds made available under subsection (b).'';
            (20) in section 172 (42 U.S.C. 6249a) by striking 
        subsections (a) and (b);
            (21) by striking section 173 (42 U.S.C. 6249b); and
            (22) in section 181 (42 U.S.C. 6251), by striking ``1994'' 
        each time it appears and inserting ``1999''.
    Sec. 4. Title II of the Energy Policy and Conservation Act (42 
U.S.C. 6211-6251) is amended--
            (1) by striking Part A (42 U.S.C. 201 through 204);
            (2) in section 252 (42 U.S.C. 6272)--
                    (A) in subsections (a)(1) and (b), by striking 
                ``allocation and information'' and inserting 
                ``emergency response'';
                    (B) in subsection (d)(3), by striking ``known'' and 
                inserting after ``circumstances'' ``known at the time 
                of approval'';
                    (C) in subsection (e)(2) by striking ``shall'' and 
                inserting ``may'';
                    (D) in subsection (f)(2) by inserting ``voluntary 
                agreement or'' after ``approved'';
                    (E) by amending subsection (h) to read as follows:
    ``(h) Section 708 of the Defense Production Act of 1950 shall not 
apply to any agreement or action undertaken for the purpose of 
developing or carrying out--
            ``(1) the international energy program, or
            ``(2) any allocation, price control, or similar program 
        with respect to petroleum products under this Act.'';
                    (F) in subsection (i) by inserting ``annually, or'' 
                after ``least'' and by inserting ``during an 
                international energy supply emergency'' after 
                ``months'';
                    (G) in subsection (k) by amending paragraph (2) to 
                read as follows:
            ``(2) The term `emergency response provisions of the 
        international energy program' means--
                    ``(A) the provisions of the international energy 
                program which relate to international allocation of 
                petroleum products and to the information system 
                provided in the program, and
                    ``(B) the emergency response measures adopted by 
                the Governing Board of the International Energy Agency 
                (including the July 11, 1984 decision by the Governing 
                Board on ``Stocks and Supply Disruptions'') for the 
                coordinated drawdown of stocks of petroleum products 
                held or controlled by governments and complementary 
                actions taken by governments during an existing or 
                impending international oil supply disruption, whether 
                or not international allocation of petroleum products 
                is required by chapters III and IV of the international 
                energy program.''; and
                    (H) by amending subsection (1) to read as follows:
            ``(1) The antitrust defense under subsection (f) applies 
        only to the development or carrying out of voluntary agreements 
        and plans of action to implement the emergency response 
        provisions of the international energy program, except that in 
        the event the International Energy Agency seeks advice and 
        information concerning preparation and implementation of 
        measures by governments on the coordinated drawdown of stocks 
        of petroleum products and complementary actions as described in 
        subsection (k)(2)(B), the antitrust defense also applies but 
        only to advising and consulting with and providing information 
        or data to the International Energy Agency according to 
        procedures set forth in a voluntary agreement or plan of 
        action, unless the Attorney General, after consultation with 
        the Secretary of State, the Secretary of Energy, and the 
        Federal Trade Commission, determines that additional actions 
        are necessary or appropriate to fulfill the purpose of this 
        section; provided that the antitrust defense shall not extend 
        to the international allocation of petroleum products unless 
        allocation is required by chapters III and IV of the 
        international energy program during an international energy 
        supply emergency.'';
            (3) by adding at the end of section 256(h), ``There are 
        authorized to be appropriated for fiscal years 1996 through 
        1999, such sums as may be necessary.''
            (4) by striking Part C (42 U.S.C. 271 through 272); and
            (5) in section 281 (42 U.S.C. 6285), by striking ``1994'' 
        each time it appears and inserting ``1999''.
    Sec. 5. (a) Title III of the Energy Policy and Conservation Act (42 
U.S.C. 6291-6327, 6361-6374d) is amended--
            (1) in section 365(f) (42 U.S.C. 6325(f)) by amending 
        paragraph (1) to read as follows:
            ``(1) Except as provided in paragraph (2), for the purpose 
        of carrying out this part, there are authorized to be 
        appropriated for fiscal years 1995 through 1999, such sums as 
        may be necessary.''; and
            (2) section 397 (42 U.S.C. 6371f) is amended to read as 
        follows: ``For the purpose of carrying out this part, there are 
        authorized to be appropriated for fiscal years 1995 through 
        1999, such sums as may be necessary.''.
    (b) Section 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) is amended to read as follows:
    ``Sec. 422. For the purposes of carrying out the weatherization 
program under this part, there are authorized to be appropriated for 
fiscal years 1995 through 1999, such sums as may be necessary.''.
    Sec. 6. Title V of the Energy Policy and Conservation Act (42 
U.S.C. 6381-6422) is amended--
            (1) by striking section 507 (42 U.S.C. 6385), and
            (2) by striking section 522 (42 U.S.C. 6392).

                                 <all>

S 2251 IS----2
S 2251 IS----3
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