II

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.

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’’.

5 SEC. 2. Section 2 of the Energy Policy and Conserva6 tion Act (42 U.S.C. 6201) is amended—

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

8 ‘‘, subject to congressional review, to impose ration9 ing, to reduce demand for energy through the imple10 mentation of energy conservation plans, and’’; and
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1 (2) by striking paragraphs (3) and (6).

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

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

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

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

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

7 follows—

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

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

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

11 Continental Shelf by any person if more than one major

12 oil company, more than one affiliate of a major oil com13 pany, or a major oil company and any affiliate of a major

14 oil company, has or have a significant ownership interest

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

16 lease sale that this bidding would adversely affect competi17 tion or the receipt of fair market value.’’; and

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

19 (3) by striking section 106 (42 U.S.C. 6214);

20 (4) in section 1151 (42 U.S.C. 6231)—

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

22 and ‘‘short-term’’; and

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

24 follows:
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1 ‘‘(b) It is the policy of the United States to provide

2 for the creation of a Strategic Petroleum Reserve for the

3 storage of up to 1 billion barrels of petroleum products

4 to reduce the impact of disruptions in supplies of petro5 leum products or to carry out obligations of the United

6 States under the international energy program.’’;

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

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

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

10 Early Storage Reserve’’;

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

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

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

14 as follows:

15 ‘‘(a)(1) A Strategic Petroleum Reserve for the stor16 age of up to 1 billion barrels of petroleum products shall

17 be created pursuant to this part.’’;

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

19 follows:

20 ‘‘(b) The Secretary, acting through the Strategic Pe21 troleum Reserve Office and in accordance with this part,

22 shall exercise authority over the development, operation,

23 and maintenance of the Reserve.’’; and

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

25 (e);
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1 (8) by striking section 155 (42 U.S.C. 6235);

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

3 striking ‘‘To implement the Early Storage Reserve

4 Plan or the Strategic Petroleum Reserve Plan which

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

6 and inserting ‘‘The’’;

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

8 6237)—

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

10 Strategic Petroleum Reserve Plan shall provide

11 for the establishment and maintenance of’’ and

12 insert ‘‘The Secretary shall establish and main13 tain as part of the Strategic Petroleum Re14 serve’’, and

15 (B) in subsection (b), by striking ‘‘To im16 plement the Strategic Petroleum Reserve Plan,

17 the Secretary shall accumulate and maintain’’

18 and inserting ‘‘The Secretary shall establish

19 and maintain as part of the Strategic Petro20 leum Reserve’’;

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

22 (12) by amending the heading for section 159

23 (42 U.S.C. 6239) to read, ‘‘Development, Operation,

24 and Maintenance of the Reserve’’;

25 (13) in section 159 (42 U.S.C. 6239)—
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1 (A) by striking subsections (a), (b), (c),

2 (d), and (e);

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

4 follows:

5 ‘‘(f) In order to develop, operate, or maintain the

6 Strategic Petroleum Reserve, the Secretary may—

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

8 ‘‘(2) acquire by purchase, condemnation, or oth9 erwise, land or interests in land for the location of

10 storage and related facilities;

11 ‘‘(3) construct, purchase, lease, or otherwise ac12 quire storage and related facilities;

13 ‘‘(4) use, lease, maintain, sell, or otherwise dis14 pose of storage and related facilities acquired under

15 this part, under such terms and conditions as the

16 Secretary may deem necessary or appropriate;

17 ‘‘(5) acquire subject to the provisions of section

18 160 by purchase, exchange, or otherwise, petroleum

19 products for storage in the Strategic Petroleum Re20 serve;

21 ‘‘(6) store petroleum products in storage facili22 ties owned and controlled by the United States or in

23 storage facilities owned by others if those facilities

24 are subject to audit by the United States;
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1 ‘‘(7) execute any contracts necessary to develop,

2 operate, or maintain the Strategic Petroleum Re3 serve;

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

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

6 readily available inventories, petroleum products in

7 the Industrial Petroleum Reserve, under section 156;

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

9 in the Industrial Petroleum Reserve, under section

10 156, on terms that the Secretary specifies in storage

11 facilities owned and controlled by the United States

12 or in storage facilities other than those owned by the

13 United States if those facilities are subject to audit

14 by the United States;

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

16 Petroleum Reserve; and

17 ‘‘(11) bring an action, when the Secretary con18 siders it necessary, in any court having jurisdiction

19 over the proceedings, to acquire by condemnation

20 any real or personal property, including facilities,

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

22 together with any personal property located on or

23 used with the land.’’;

24 (C) in subsection (g)—
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1 (i) by striking ‘‘implementation’’ and

2 inserting ‘‘development’’; and

3 (ii) by striking ‘‘Plan’’;

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

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

6 follows:

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

8 Strategic Petroleum Reserve develops such that a 750 mil9 lion barrel inventory can reasonably be expected to be

10 reached within five years by the continuation of that pat11 tern, a plan for expansion will be submitted to the Con12 gress.’’; and

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

14 follows:

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

16 distribution are being implemented, the Secretary

17 may issues rules, regulations, or orders to implement

18 the drawdown and distribution of the Strategic Pe19 troleum Reserve in accordance with section 523 of

20 this Act, without regard to the requirements of sec21 tion 553 of title 5, United States Code, and section

22 501 of the Department of Energy Organization Act

23 (42 U.S.C. 7191).’’;

24 (14) in section 160 (42 U.S.C. 6240)—
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1 (A) in subsection (a), by striking all before

2 the dash and inserting the following:

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

4 167(b) (2) and (3) and for the purposes of implementing

5 the Strategic Petroleum Reserve, the Secretary may ac6 quire, place in storage, transport, or exchange’’;

7 (B) in subsection (b), by striking ‘‘includ8 ing the Early Storage Reserve’’ and paragraph

9 (2); and

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

11 (e);

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

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

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

15 as follows:

16 ‘‘(d)(1) No drawdown and distribution of the Strate17 gic Petroleum Reserve may be made unless the President

18 has found drawdown and distribution is required by a se19 vere energy supply interruption or by obligations of the

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

21 and

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

23 follows:

24 ‘‘(e)(1) The Secretary shall sell any petroleum prod25 uct withdrawn from the Strategic Petroleum Reserve at
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1 public sale to the highest qualified bidder in the amounts,

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

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

4 or local regulations controlling sales of petroleum prod5 ucts.

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

7 any offer to sell petroleum products as part of any

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

9 (D) in subsection (g)—

10 (i) in paragraph (1), by striking ‘‘Dis11 tribution Plan’’ and inserting ‘‘distribution

12 procedures’’, and

13 (ii) by striking paragraphs (2) and

14 (6);

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

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

17 to read as follows:

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

19 President and the Congress on actions taken to implement

20 this part. This report shall include—

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

22 Strategic Petroleum Reserve, including—

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

24 scheduled annual fill rate for achieving this ca25 pacity;
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1 ‘‘(B) the scheduled annual fill rate for the

2 fiscal year for which the report is transmitted;

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

4 acquired for the Reserve under the schedule de5 scribed in subparagraph (A);

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

7 facilities, including a description of the type and

8 location of the facilities, and of enhancements

9 and improvements to existing facilities;

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

11 of drawdown and distribution to be utilized; and

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

13 in the matters described in subparagraphs (A)

14 through (E) since the transmittal of the pre15 vious report under this section;

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

17 operate, or maintain the Strategic Petroleum Re18 serve;

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

20 the Strategic Petroleum reserve and SPR Petroleum

21 Account; and

22 ‘‘(4) a summary of existing problems with re23 spect to operation or maintenance of the Strategic

24 Petroleum Reserve; and
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1 ‘‘(5) any recommendation for supplemental leg2 islation the Secretary considers necessary or appro3 priate to implement this part.’’;

4 (18) in section 166 (42 U.S.C. 6246) by strik5 ing all after appropriated’’ and inserting ‘‘the funds

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

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

8 (A) in subsection (b)—

9 (i) by inserting ‘‘test sales of petro10 leum products from the Reserve,’’ after

11 ‘‘Strategic Petroleum Reserve,’’;

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

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

14 ‘‘after fiscal year 1982’’; and

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

16 follows

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

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

19 subsection (b).’’;

20 (20) in section 172 (42 U.S.C. 6249a) by strik21 ing subsections (a) and (b);

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

23 and
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1 (22) in section 181 (42 U.S.C. 6251), by strik2 ing ‘‘1994’’ each time it appears and inserting

3 ‘‘1999’’.

4 SEC. 4. Title II of the Energy Policy and Conserva5 tion Act (42 U.S.C. 6211–6251) is amended—

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

7 204);

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

9 (A) in subsections (a)(1) and (b), by strik10 ing ‘‘allocation and information’’ and inserting

11 ‘‘emergency response’’;

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

13 ‘‘known’’ and inserting after ‘‘circumstances’’

14 ‘‘known at the time of approval’’;

15 (C) in subsection (e)(2) by striking ‘‘shall’’

16 and inserting ‘‘may’’;

17 (D) in subsection (f)(2) by inserting ‘‘vol18 untary agreement or’’ after ‘‘approved’’;

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

20 follows:

21 ‘‘(h) Section 708 of the Defense Production Act of

22 1950 shall not apply to any agreement or action under23 taken for the purpose of developing or carrying out—

24 ‘‘(1) the international energy program, or
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1 ‘‘(2) any allocation, price control, or similar

2 program with respect to petroleum products under

3 this Act.’’;

4 (F) in subsection (i) by inserting ‘‘annu5 ally, or’’ after ‘‘least’’ and by inserting ‘‘during

6 an international energy supply emergency’’

7 after ‘‘months’’;

8 (G) in subsection (k) by amending para9 graph (2) to read as follows:

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

11 of the international energy program’ means—

12 ‘‘(A) the provisions of the international en13 ergy program which relate to international allo14 cation of petroleum products and to the infor15 mation system provided in the program, and

16 ‘‘(B) the emergency response measures

17 adopted by the Governing Board of the Inter18 national Energy Agency (including the July 11,

19 1984 decision by the Governing Board on

20 ‘‘Stocks and Supply Disruptions’’) for the co21 ordinated drawdown of stocks of petroleum

22 products held or controlled by governments and

23 complementary actions taken by governments

24 during an existing or impending international

25 oil supply disruption, whether or not inter-
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1 national allocation of petroleum products is re2 quired by chapters III and IV of the inter3 national energy program.’’; and

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

5 follows:

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

7 applies only to the development or carrying out of

8 voluntary agreements and plans of action to imple9 ment the emergency response provisions of the inter10 national energy program, except that in the event

11 the International Energy Agency seeks advice and

12 information concerning preparation and implementa13 tion of measures by governments on the coordinated

14 drawdown of stocks of petroleum products and com15 plementary actions as described in subsection

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

17 to advising and consulting with and providing infor18 mation or data to the International Energy Agency

19 according to procedures set forth in a voluntary

20 agreement or plan of action, unless the Attorney

21 General, after consultation with the Secretary of

22 State, the Secretary of Energy, and the Federal

23 Trade Commission, determines that additional ac24 tions are necessary or appropriate to fulfill the pur25 pose of this section; provided that the antitrust de-
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1 fense shall not extend to the international allocation

2 of petroleum products unless allocation is required

3 by chapters III and IV of the international energy

4 program during an international energy supply

5 emergency.’’;

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

7 ‘‘There are authorized to be appropriated for fiscal

8 years 1996 through 1999, such sums as may be nec9 essary.’’

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

11 272); and

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

13 ‘‘1994’’ each time it appears and inserting ‘‘1999’’.

14 SEC. 5. (a) Title III of the Energy Policy and Con15 servation Act (42 U.S.C. 6291–6327, 6361–6374d) is

16 amended—

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

18 amending paragraph (1) to read as follows:

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

20 the purpose of carrying out this part, there are au21 thorized to be appropriated for fiscal years 1995

22 through 1999, such sums as may be necessary.’’;

23 and

24 (2) section 397 (42 U.S.C. 6371f) is amended

25 to read as follows: ‘‘For the purpose of carrying out
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1 this part, there are authorized to be appropriated for

2 fiscal years 1995 through 1999, such sums as may

3 be necessary.’’.

4 (b) Section 422 of the Energy Conservation and Pro5 duction Act (42 U.S.C. 6872) is amended to read as fol6 lows:

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

8 weatherization program under this part, there are author9 ized to be appropriated for fiscal years 1995 through

10 1999, such sums as may be necessary.’’.

11 SEC. 6. Title V of the Energy Policy and Conserva12 tion Act (42 U.S.C. 6381–6422) is amended—

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

14 and

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

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