IB
Union Calendar No. 360
103D CONGRESS
2D SESSION
H. R. 4752
[Report No. 103–663]
To amend the Energy Policy and Conservation Act to manage the Strategic
Petroleum Reserve more effectively, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 13, 1994
Mr. SHARP introduced the following bill; which was referred to the Committee
on Energy and Commerce
AUGUST 3, 1994
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on July 13, 1994]
A BILL
To amend the Energy Policy and Conservation Act to man-
age the Strategic Petroleum Reserve more effectively,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Energy Policy and
Conservation Act Amendments of 1994’’.
SEC. 2. TABLE OF CONTENTS AND STATEMENT OF PUR-
POSES.
(a)(1) In the table of contents of the Energy Policy
and Conservation Act, strike the items relating to sections
102, 153, 155, 158, and 164, and strike the items relating
to parts A and C of title II.
(2) The item in the table of contents of the Energy
Policy and Conservation Act relating to section 159 is
amended to read as follows:
‘‘Sec. 159. Development, operations, and maintenance of the Reserve.’’.
(3) The item in the table of contents of the Energy
Policy and Conservation Act relating to section 165 is
amended to read as follows:
‘‘Sec. 165. Reports.’’.
(b) Section 2 of the Energy Policy and Conservation
Act (42 U.S.C. 6201) is amended—
(1) in paragraph (1) by striking ‘‘standby au-
thority to the President, subject to congressional re-
view, to impose rationing, to reduce demand for en-
ergy through the implementation of energy conserva-
tion plans, and’’ and inserting in lieu thereof ‘‘au-
thority to the President’’; and
(2) by striking paragraphs (3) and (6) and re-
designating paragraphs (4), (5), (7), and (8) as para-
graphs (3), (4), (5), and (6), respectively.
SEC. 3. TITLE I AMENDMENTS.
Title I of the Energy Policy and Conservation Act is
amended—
(1) by striking section 102 (42 U.S.C. 6211);
(2) in section 151 (42 U.S.C. 6231)—
(A) in subsection (a) by striking ‘‘limited’’
and by striking ‘‘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 1,000,000,000 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.’’;
(3) in section 152 (42 U.S.C. 6232)—
(A) by striking paragraph (1) and redesig-
nating paragraphs (2) through (11) as para-
graphs (1) through (10), respectively; and
(B) in paragraph (10) (as so redesignated
by subparagraph (A) of this paragraph) by strik-
ing ‘‘, the Early Storage Reserve’’;
(4) by striking section 153 (42 U.S.C 6233);
(5) 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 1,000,000,000 barrels of petroleum products shall
be created pursuant to this part.’’;
(B) in subsection (a)(2)(D), by striking
‘‘160(h)’’ and inserting in lieu thereof ‘‘160(e)’’;
(C) by amending subsection (b) to read as
follows:
‘‘(b) The Secretary, acting through the Strategic Petro-
leum Reserve Office and in accordance with this part, shall
exercise authority over the development, operation, and
maintenance of the Reserve.’’;
(D) by amending subsection (c) to read as
follows:
‘‘(c) The Secretary, not later than 6 months after the
date of enactment of this subsection, and every two years
thereafter, shall prepare and transmit to the Congress a
Strategic Petroleum Reserve Operating and Readiness
Plan. Such plan shall describe the long-range operational,
maintenance, refurbishment, product replacement, testing,
withdrawal and distribution, and readiness requirements
to enable the implementation of the policy declared in sec-
tion 151.’’; and
(E) by striking subsections (d) and (e).
(6) by striking section 155 (42 U.S.C. 6235);
(7) 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 in lieu thereof ‘‘The’’;
(8) 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
inserting in lieu thereof ‘‘The Secretary shall es-
tablish and maintain as part of the Strategic
Petroleum Reserve’’; and
(B) in subsection (b), by striking ‘‘To im-
plement the Strategic Petroleum Reserve Plan,
the Secretary shall accumulate and maintain’’
and inserting in lieu thereof ‘‘The Secretary
shall establish and maintain as part of the Stra-
tegic Petroleum Reserve’’;
(9) by striking section 158 (42 U.S.C 6238);
(10) in section 159 (42 U.S.C. 6239)—
(A) by amending the section head to read as
follows:
‘‘DEVELOPMENT, OPERATIONS, AND MAINTENANCE OF THE
RESERVE’’;
(B) by striking subsections (a), (b), (c), (d),
(e), (h), and (i), and redesignating subsections
(f), (g), (j), (k), and (l) as subsections (a), (b),
(c), (d), and (e), respectively;
(C) by amending subsection (a) (as so redes-
ignated by subparagraph (B) of this paragraph)
to read as follows:
‘‘(a) 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 oth-
erwise, land or interests in land for the location of
storage and related facilities;
‘‘(3) construct, purchase, lease, or otherwise ac-
quire storage and related facilities;
‘‘(4) use, lease, maintain, sell, or otherwise dis-
pose of storage and related facilities acquired under
this part, under such terms and conditions as the Sec-
retary considers necessary and appropriate;
‘‘(5) acquire, subject to the provisions of section
160, by purchase, exchange, or otherwise, petroleum
products for storage in the Strategic Petroleum Re-
serve, including the Regional Petroleum Reserve;
‘‘(6) store petroleum products in storage facilities
owned and controlled by the United States or in stor-
age 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 such reasonable terms as the Secretary may speci-
fy, 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 sub-
ject to audit by the United States;
‘‘(10) require the maintenance of the Industrial
Petroleum Reserve; and
‘‘(11) bring an action, when the Secretary con-
siders it necessary, in any court having jurisdiction
over the proceedings, to acquire by condemnation any
real or personal property, including facilities, tem-
porary use of facilities, or other interests in land, to-
gether with any personal property located on or used
with the land.’’;
(D) in subsection (b) (as so redesignated by
subparagraph (B) of this paragraph)—
(i) by striking ‘‘implementation’’ and
inserting in lieu thereof ‘‘development’’; and
(ii) by striking ‘‘Plan’’;
(E) by amending subsection (c) (as so redes-
ignated by subparagraph (B) of this paragraph)
to read as follows:
‘‘(c) When the Secretary determines that a 750,000,000
barrel inventory can reasonably be expected to be reached
in the Reserve within 5 years, the Secretary shall submit
to the Congress a plan for expansion of the Strategic Petro-
leum Reserve to a capacity of 1,000,000,000 barrels.’’; and
(F) by amending subsection (e) (as so redes-
ignated by subparagraph (B) of this paragraph)
to read as follows:
‘‘(e) During any period in which drawdown and dis-
tribution are being implemented, the Secretary may issue
rules, regulations, or orders to implement the drawdown
and distribution of the Strategic Petroleum Reserve, with-
out 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).’’;
(11) in section 160 (42 U.S.C. 6240)—
(A) in subsection (a), by striking ‘‘The Sec-
retary’’ and all that follows through ‘‘transport,
or exchange’’ and inserting in lieu thereof ‘‘For
the purpose of implementing the Strategic Petro-
leum Reserve, the Secretary may acquire, place
in storage, transport, or exchange’’;
(B) in subsection (b)—
(i) by striking ‘‘, including the Early
Storage Reserve’’; and
(ii) by striking paragraph (2) and re-
designating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively;
and
(C) by striking subsections (c), (d), and (e)
and redesignating subsections (f), (g), and (h) as
subsections (c), (d), and (e), respectively;
(12) in section 161 (42 U.S.C. 6241)—
(A) by striking subsections (b) and (c) and
redesignating subsections (d) through (i) as sub-
sections (b) through (g), respectively;
(B) by amending subsection (b)(1) (as so re-
designated by subparagraph (A) of this para-
graph) to read as follows:
‘‘(b)(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.’’;
(C) by amending subsection (c) (as so redes-
ignated by subparagraph (A) of this paragraph)
to read as follows:
‘‘(c)(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 and for
the period the Secretary considers appropriate, and after
a notice of sale the Secretary considers appropriate.
‘‘(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 (e) (as so redesignated by
subparagraph (A) of this paragraph)—
(i) in paragraph (1), by striking ‘‘Dis-
tribution Plan’’ and inserting in lieu there-
of ‘‘distribution procedures’’;
(ii) by striking paragraphs (2) and (6)
and redesignating paragraphs (3), (4), (5),
(7), and (8) as paragraphs (2), (3), (4), (5),
and (6), respectively; and
(iii) in subsection (f)(1)(A) (as so re-
designated by subparagraph (A) of this
paragraph) by striking ‘‘subsection (d)’’
and inserting in lieu thereof ‘‘subsection
(b)’’;
(13) by striking section 164 (42 U.S.C. 6244);
(14) by amending section 165 (42 U.S.C. 6245)
to read as follows:
‘‘REPORTS
‘‘SEC. 165. The Secretary shall, not later than 6
months after the date of enactment of the Energy Policy
and Conservation Act Amendments of 1994, and every 6
months thereafter, transmit a report to the President and
the Congress on—
‘‘(1) the status of the physical capacity of the Re-
serve and the type and quantity of petroleum in the
Reserve;
‘‘(2) an estimate of the schedule and cost to com-
plete planned equipment upgrade or capital invest-
ment in the Reserve, including those carried out as
part of operational maintenance or extension of life
activities;
‘‘(3) an identification of any life-limiting condi-
tions or operational problems at any Reserve facility,
and proposed remedial actions including an estimate
of the schedule and cost of implementing such reme-
dial actions;
‘‘(4) a description of current withdrawal and
distribution rates and capabilities, and an identifica-
tion of any operational or other limitations on such
rates and capabilities;
‘‘(5) an identification of purchases of petroleum
made in the preceding 6 months and planned in the
following 6 months, including quantity, price, and
type of petroleum;
‘‘(6) a summary of the actions taken to develop,
operate, and maintain the Reserve;
‘‘(7) a summary of the financial status and fi-
nancial transactions of the Strategic Petroleum Re-
serve and Strategic Petroleum Reserve Petroleum Ac-
counts for the preceding 6 months;
‘‘(8) a summary of operating and capital ex-
penses for the preceding 6 months, and the number of
Federal and contractor employees;
‘‘(9) the status of contracts for development, op-
eration, maintenance, distribution, and other activi-
ties related to the implementation of this part; and
‘‘(10) any recommendations for supplemental
legislation or policy or operational changes the Sec-
retary considers necessary and appropriate to imple-
ment this part.’’;
(15) by amending section 166 (42 U.S.C. 6246)
to read as follows:
‘‘AUTHORIZATION OF APPROPRIATIONS
‘‘SEC. 166. There are authorized to be appropriated
such sums as may be necessary to implement this part.’’;
(16) 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 re-
designating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively;
(iii) in paragraph (1) (as so redesig-
nated by clause (ii) of this subsection) by
striking ‘‘after fiscal year 1982’’; and
(iv) in paragraph (2) (as so redesig-
nated by clause (ii) of this subsection) by
striking ‘‘160(f)’’ and inserting in lieu
thereof ‘‘160(c)’’;
(B) in subsection (d), by striking ‘‘160(f)’’
and inserting in lieu thereof ‘‘160(c)’’; and
(C) by amending subsection (e) to read as
follows:
‘‘(e) The Impoundment Control Act of 1974 (2 U.S.C.
681–688) shall apply to funds made available under sub-
section (b).’’;
(17) 
in 
section 
171(b)(2)(B) 
(42 
U.S.C.
6249(b)(2)(B)) by inserting ‘‘, as such section was in
effect before the date of enactment of the Energy Pol-
icy and Conservation Act Amendments of 1994,’’ after
‘‘section 154(e)’’;
(18) in section 172 (42 U.S.C. 6249a) by strik-
ing subsections (a) and (b) and redesignating sub-
sections (c) and (d) as subsections (a) and (b), respec-
tively; and
(19) in section 181 (42 U.S.C. 6251) by striking
‘‘1994’’ both places it appears and inserting in lieu
thereof ‘‘1999’’.
SEC. 4. TITLE II AMENDMENTS.
Title II of the Energy Policy and Conservation Act
is amended—
(1) by striking part A (42 U.S.C. 6261 through
6264);
(2) in section 251(e)(1) (42 U.S.C. 6271(e)(1))
by striking ‘‘252(l)(1)’’ and inserting in lieu thereof
‘‘252(k)(1)’’;
national Energy Agency (including the July 11,
1984, decision by the Governing Board on
‘Stocks and Supply Disruptions’) for—
‘‘(i) the coordinated drawdown of
stocks of petroleum products held or con-
trolled by governments; and
‘‘(ii) complementary actions taken by
governments,
during an existing or impending international
oil supply disruption.’’; and
(F) by amending subsection (l) to read as
follows:
‘‘(l) The antitrust defense under subsection (f) 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 en-
ergy supply emergency.’’;
(4) by adding at the end of section 256(h) (42
U.S.C. 6276(h)) ‘‘There are authorized to be appro-
priated for fiscal years 1996 through 1999 such sums
as may be necessary to carry out this part.’’;
(5) by striking part C (42 U.S.C. 6281 through
6282); and
(6) in section 281 (42 U.S.C. 6285), by striking
‘‘1994’’ each place it appears and inserting in lieu
thereof ‘‘1999’’.
SEC. 5. MISCELLANEOUS ADDITIONAL AMENDMENTS.
(a) Title III of the Energy Policy and Conservation
Act 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 pur-
pose 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) by amending section 397 (42 U.S.C. 6371f)
to read as follows:
‘‘AUTHORIZATION OF APPROPRIATIONS
‘‘SEC. 397. 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 507 of the Energy Policy and Conservation
Act (42 U.S.C. 6385) is amended by striking ‘‘, which was
collected’’ and all that follows through ‘‘Information Ad-
ministration’’.
HR 4752 RH——2