[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4750 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4750

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

_______________________________________________________________________

                                 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,

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 PURPOSES.

    (a) 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.''.
    (b) Section 2 of the Energy Policy and Conservation Act (42 U.S.C. 
6201) is amended--
            (1) in paragraph (1) by striking ``standby authority to the 
        President, subject to congressional review, to impose 
        rationing, to reduce demand for energy through the 
        implementation of energy conservation plans, and'' and 
        inserting in lieu thereof ``authority to the President''; and
            (2) by striking paragraphs (3) and (6) and redesignating 
        paragraphs (4), (5), (7), and (8) as paragraphs (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 redesignating 
                paragraphs (2) through (11) as paragraphs (1) through 
                (10), respectively; and
                    (B) in paragraph (10) (as so redesignated by 
                subparagraph (A) of this paragraph) by striking ``, 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 Petroleum Reserve 
Office and in accordance with this part, shall exercise authority over 
the development, operation, and maintenance of the Reserve.''; and
                    (D) by striking subsections (c), (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 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 in lieu 
                thereof ``The Secretary shall establish and maintain as 
                part of the Strategic 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 redesignated 
                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 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 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 Reserve, including the 
        Regional 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 such 
        reasonable terms as the Secretary may specify, 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.'';
                    (D) in subsection (g)--
                            (i) by striking ``implementation'' and 
                        inserting in lieu thereof ``development''; and
                            (ii) by striking ``Plan'';
                    (E) by amending subsection (c) (as so redesignated 
                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 Petroleum Reserve to a capacity of 
1,000,000,000 barrels.''; and
                    (F) by amending subsection (e) (as so redesignated 
                by subparagraph (B) of this paragraph) to read as 
                follows:
    ``(e) During any period in which drawdown and distribution are 
being implemented, the Secretary may issue rules, regulations, or 
orders to implement the drawdown and distribution of the Strategic 
Petroleum Reserve, 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).'';
            (11) in section 160 (42 U.S.C. 6240)--
                    (A) in subsection (a), by striking ``The 
                Secretary'' and all that follows through ``transport, 
                or exchange'' and inserting in lieu thereof ``For the 
                purpose of implementing the Strategic Petroleum 
                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 
                        redesignating 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 
                subsections (b) through (g), respectively;
                    (B) by amending subsection (b)(1) (as so 
                redesignated by subparagraph (A) of this paragraph) 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 redesignated 
                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 
                        ``Distribution Plan'' and inserting in lieu 
                        thereof ``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 
                        redesignated 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:

                            ``annual reports

    ``Sec. 165. (a) The Secretary shall report annually to the 
President and the Congress on actions taken to implement this part. 
Each such 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 type and quality of crude oil to be 
                acquired for the Reserve under the schedule described 
                in subparagraph (A);
                    ``(C) 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;
                    ``(D) a description of the method of drawdown and 
                distribution to be utilized; and
                    ``(E) an explanation of any changes made in the 
                matters described in subparagraphs (A) through (D) 
                since the transmittal of the previous report under this 
                subsection;
            ``(2) a summary of 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;
            ``(4) a summary of existing problems with respect to 
        operation or maintenance of the Strategic Petroleum Reserve; 
        and
            ``(5) any recommendations for supplemental legislation the 
        Secretary considers necessary or appropriate to implement this 
        part.
    ``(b) Once every calendar quarter, the Secretary shall report to 
the Congress on activities undertaken with respect to the Strategic 
Petroleum Reserve under the amendments made by the Strategic Petroleum 
Reserve Amendments Act of 1981, including--
            ``(1) the amounts of petroleum products stored in the 
        Reserve, under contract and in transit at the end of the 
        previous calendar quarter;
            ``(2) the projected fill rate for the Strategic Petroleum 
        Reserve for the then current calendar quarter and the provision 
        calendar quarter;
            ``(3) the average price of the petroleum products acquired 
        during the previous calendar quarter;
            ``(4) existing and projected Strategic Petroleum Reserve 
        storage capacity and plans to accelerate the acquisition or 
        construction of such capacity;
            ``(5) an analysis of any existing or anticipated problems 
        associated with acquisition, transportation, and storage of 
        petroleum products in the Reserve and with the expansion of 
        storage capacity for the Reserve; and
            ``(6) the amount of funds obligated by the Secretary from 
        the SPR Petroleum Account, as well as other funds available for 
        the Reserve, during the previous calendar quarter and in total 
        under the amendments made by such Act.'';
            (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 
                        redesignating paragraphs (2) and (3) as 
                        paragraphs (1) and (2), respectively;
                            (iii) in paragraph (1) (as so redesignated 
                        by clause (ii) of this subsection) by striking 
                        ``after fiscal year 1982''; and
                            (iv) in paragraph (2) (as so redesignated 
                        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 subsection (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 Policy and Conservation Act Amendments 
        of 1994,'' after ``section 154(e)'';
            (18) in section 172 (42 U.S.C. 6249a) by striking 
        subsections (a) and (b) and redesignating subsections (c) and 
        (d) as subsections (a) and (b), respectively; 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)'';
            (3) in section 252 (42 U.S.C. 6272)--
                    (A) in subsections (a)(1) and (b), by striking 
                ``allocation and information provisions of the 
                international energy program'' and inserting in lieu 
                thereof ``international emergency response 
                provisions'';
                    (B) in subsection (d)(3), by striking ``known 
                circumstances'' and inserting in lieu thereof 
                ``circumstances known at the time of approval'';
                    (C) in subsection (f)(2) by inserting ``voluntary 
                agreement or'' after ``approved'';
                    (D) in subsection (i) by inserting ``annually, and 
                at least'' after ``least'' and by inserting ``during an 
                international energy supply emergency'' after 
                ``months'';
                    (E) in subsection (k) by amending paragraph (2) to 
                read as follows:
            ``(2) The term `international emergency response 
        provisions' 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--
                            ``(i) the coordinated drawdown of stocks of 
                        petroleum products held or controlled 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 energy supply emergency.'';
            (4) by adding at the end of section 256(h) (42 U.S.C. 
        6276(h)) ``There are authorized to be appropriated 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 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) 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 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) is amended to read as follows:

                   ``authorization of appropriations

    ``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.''.
    (c) 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 Administration''.
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HR 4750 IH----2