[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1605 Reported in Senate (RS)]





                                                       Calendar No. 407

104th CONGRESS

  2d Session

                                S. 1605

                          [Report No. 104-273]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                              May 15, 1996

                       Reported with an amendment





                                                       Calendar No. 407
104th CONGRESS
  2d Session
                                S. 1605

                          [Report No. 104-273]

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

                             March 12, 1996

  Mr. Murkowski (by request) introduced the following bill; which was 
    read twice and referred to the Committee on Energy and Natural 
                               Resources

                              May 15, 1996

              Reported by Mr. Murkowski, 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <DELETED>That this Act 
may be cited as the ``Energy Policy and Conservation Act Amendment 
Act''.
<DELETED>    Sec. 2. Section 2 of the Energy Policy and Conservation 
Act (42 U.S.C. 6201) is amended--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (2) by striking paragraphs (3) and (6).</DELETED>
<DELETED>    Sec. 3. Title I of the Energy Policy and Conservation Act 
(42 U.S.C. 6211-6251) is amended--</DELETED>
        <DELETED>    (a) by striking section 102 (42 U.S.C. 
        6211);</DELETED>
        <DELETED>    (b) in section 105 (42 U.S.C. 6213)--</DELETED>
                <DELETED>    (1) by amending subsection (a) to read as 
                follows--</DELETED>
<DELETED>    ``(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</DELETED>
                <DELETED>    (2) by striking subsections (c) and 
                (e);</DELETED>
        <DELETED>    (c) by striking section 106 (42 U.S.C. 
        6214);</DELETED>
        <DELETED>    (d) in section 151 (42 U.S.C. 6231)--</DELETED>
                <DELETED>    (1) in subsection (a) by striking 
                ``limited'' and ``short-term''; and</DELETED>
                <DELETED>    (2) by amending subsection (b) to read as 
                follows:</DELETED>
<DELETED>    ``(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.'';</DELETED>
        <DELETED>    (e) in section 152 (42 U.S.C. 6232)--</DELETED>
                <DELETED>    (1) by striking paragraphs (1) and (7); 
                and</DELETED>
                <DELETED>    (2) in paragraph (11) by striking ``, the 
                Early Storage Reserve, and the Regional Petroleum 
                Reserve'', and by adding a period after Industrial 
                Petroleum Reserve.</DELETED>
        <DELETED>    (f) by striking section 153 (42 U.S.C. 
        6233);</DELETED>
        <DELETED>    (g) in section 154 (42 U.S.C. 6234)--</DELETED>
                <DELETED>    (1) by amending subsection (a) to read as 
                follows:</DELETED>
<DELETED>    ``(a) A Strategic Petroleum Reserve for the storage of up 
to 1 billion barrels of petroleum products shall be created pursuant to 
this part.'';</DELETED>
                <DELETED>    (2) by amending subsection (b) to read as 
                follows:</DELETED>
<DELETED>    ``(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</DELETED>
                <DELETED>    (3) by striking subsections (c), (d), and 
                (e);</DELETED>
        <DELETED>    (h) by striking section 155 (42 U.S.C. 
        6235);</DELETED>
        <DELETED>    (i) 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'';</DELETED>
        <DELETED>    (j) by striking section 157 (42 U.S.C. 
        6237);</DELETED>
        <DELETED>    (k) by striking section 158 (42 U.S.C. 
        6238);</DELETED>
        <DELETED>    (l) by amending the heading for section 159 (42 
        U.S.C. 6239) to read: ``Development, Operation, and Maintenance 
        of the Reserve'';</DELETED>
        <DELETED>    (m) in section 159 (42 U.S.C. 6239)--</DELETED>
                <DELETED>    (1) by striking subsections (a), (b), (c), 
                (d), and (e);</DELETED>
                <DELETED>    (2) by amending subsection (f) to read as 
                follows:</DELETED>
<DELETED>    ``(f) In order to develop, operate, or maintain the 
Strategic Petroleum Reserve, the Secretary may--</DELETED>
        <DELETED>    ``(1) issue rules, regulations, or 
        orders;</DELETED>
        <DELETED>    ``(2) acquire by purchase, condemnation, or 
        otherwise, land or interests in land for the location of 
        storage and related facilities;</DELETED>
        <DELETED>    ``(3) construct, purchase, lease, or otherwise 
        acquire storage and related facilities;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(5) acquire, subject to the provisions of 
        section 160, by purchase, exchange, or otherwise, petroleum 
        products for storage in the Strategic Petroleum 
        Reserve;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(7) execute any contracts necessary to develop, 
        operate, or maintain the Strategic Petroleum Reserve;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(10) require the maintenance of the Industrial 
        Petroleum Reserve;</DELETED>
        <DELETED>    ``(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; 
        and</DELETED>
        <DELETED>    ``(12) to the extent provided in an Appropriations 
        Act, and notwithstanding section 649(b) of the Department of 
        Energy Organization Act (42 U.S.C. 7259(b)),the Secretary is 
        authorized to store in underutilized facilities, by lease or 
        otherwise, petroleum product owned by a foreign government or 
        its representative, petroleum product stored under this 
        paragraph is not part of the Reserve, is not subject to part C 
        of this title, and notwithstanding any provision of this Act, 
        may be exported from the United States.'';</DELETED>
                <DELETED>    (3) in subsection (g)--</DELETED>
                        <DELETED>    (A) by striking ``implementation'' 
                        and inserting ``development''; and</DELETED>
                        <DELETED>    (B) by striking 
                        ``Plan'';</DELETED>
                <DELETED>    (4) by striking subsections (h) and 
                (i);</DELETED>
                <DELETED>    (5) by amending subsection (j) to read as 
                follows:</DELETED>
<DELETED>    ``(j) When the Secretary determines that a 750,000,000 
barrel inventory can reasonably be expected to be reached in the 
Reserve within 5 years, a plan for expansion will be submitted to the 
Congress.''; and</DELETED>
        <DELETED>    (6) by amending subsection (l) to read as 
        follows:</DELETED>
<DELETED>    ``(l) 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 in accordance with section 553 of title 5, United 
States Code, without regard to rulemaking requirements in section 523 
of this Act, and section 501 of the Department of Energy Organization 
Act (42 U.S.C. 7191);</DELETED>
        <DELETED>    (n) in section 160 (42 U.S.C. 6240)--</DELETED>
                <DELETED>    (1) in subsection (a), by striking all 
                before the dash and inserting the following--</DELETED>
<DELETED>    ``(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'';</DELETED>
                <DELETED>    (2) in subsection (b), by striking 
                ``including the Early Storage Reserve and the Regional 
                Petroleum Reserve'' and paragraph (2); and</DELETED>
                <DELETED>    (3) by striking subsections (c), (d), (e), 
                and (g);</DELETED>
        <DELETED>    (o) in section 161 (42 U.S.C. 6241)--</DELETED>
                <DELETED>    (1) by striking subsections (b) and 
                (c);</DELETED>
                <DELETED>    (2) by amending subsection (d)(1) to read 
                as follows:</DELETED>
<DELETED>    ``(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.'';</DELETED>
                <DELETED>    (3) by amending subsection (e) to read as 
                follows:</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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</DELETED>
                <DELETED>    (4) in subsection (g)--</DELETED>
                        <DELETED>    (A) in paragraph (1), by striking 
                        ``Distribution Plan'' and inserting 
                        ``distribution procedures'';</DELETED>
                        <DELETED>    (B) by striking paragraphs (2) and 
                        (6); and</DELETED>
                        <DELETED>    (C) in paragraph (4), by striking 
                        ``90'' and inserting ``95'';</DELETED>
        <DELETED>    (p) by striking section 164 (42 U.S.C. 
        6244);</DELETED>
        <DELETED>    (q) by amending section 165 (42 U.S.C. 6245) to 
        read as follows--</DELETED>
<DELETED>    ``Sec. 165. The Secretary shall report annually to the 
President and the Congress on actions taken to implement this part. 
This report shall include--</DELETED>
        <DELETED>    ``(1) the status of the physical capacity of the 
        Reserve and the type and quantity of petroleum in the 
        Reserve;</DELETED>
        <DELETED>    ``(2) an estimate of the schedule and cost to 
        complete planned equipment upgrade or capital investment in the 
        Reserve, including those carried out as part of operational 
        maintenance or extension of life activities;</DELETED>
        <DELETED>    ``(3) an identification of any life-limiting 
        conditions or operational problems at any Reserve facility, and 
        proposed remedial actions including an estimate of the schedule 
        and cost of implementing such remedial actions;</DELETED>
        <DELETED>    ``(4) a description of current withdrawal and 
        distribution rates and capabilities, and an identification of 
        any operational or other limitations on such rates and 
        capabilities;</DELETED>
        <DELETED>    ``(5) an identification of purchases of petroleum 
        made in the preceding year and planned in the following year, 
        including quantity, price, and type of petroleum;</DELETED>
        <DELETED>    ``(6) a summary of the actions taken to develop, 
        operate, and maintain the Reserve;</DELETED>
        <DELETED>    ``(7) a summary of the financial status and 
        financial transactions of the Strategic Petroleum Reserve and 
        Strategic Petroleum Reserve Petroleum Accounts for the 
        year;</DELETED>
        <DELETED>    ``(8) a summary of expenses for the year, and the 
        number of Federal and contractor employees;</DELETED>
        <DELETED>    ``(9) the status of contracts for development, 
        operation, maintenance, distribution, and other activities 
        related to the implementation of this part; and</DELETED>
        <DELETED>    ``(10) any recommendations for supplemental 
        legislation or policy or operational changes the Secretary 
        considers necessary and appropriate to implement this 
        part.'';</DELETED>
        <DELETED>    (r) in section 166 (42 U.S.C. 6246) by striking 
        all after ``appropriated'' and inserting ``the funds necessary 
        to implement this part.'';</DELETED>
        <DELETED>    (s) in section 167 (42 U.S.C. 6247) subsection 
        (b)--</DELETED>
                        <DELETED>    (A) by inserting ``for test sales 
                        of petroleum products from the Reserve,'' after 
                        ``Strategic Petroleum Reserve,'', and by 
                        inserting ``for'' before ``the 
                        drawdown'';</DELETED>
                        <DELETED>    (B) by striking paragraph (1); 
                        and</DELETED>
                        <DELETED>    (C) in paragraph (2), by striking 
                        ``after fiscal year 1982'';</DELETED>
        <DELETED>    (t) in section 171 (42 U.S.C. 6249) by amending 
        subparagraph (b)(2)(B) to read as follows:</DELETED>
                <DELETED>    ``(B) the Secretary notifies each House of 
                the Congress of the determination and identifies in the 
                notification the location, type, and ownership of 
                storage and related facilities proposed to be included, 
                or the volume, type, and ownership of petroleum product 
                proposed to be stored, in the Reserve, and an estimate 
                of the proposed benefits;'';</DELETED>
        <DELETED>    (u) in section 172 (42 U.S.C. 6249a), by striking 
        subsections (a) and (b);</DELETED>
        <DELETED>    (v) by striking section 173 (42 U.S.C. 6249b); 
        and</DELETED>
        <DELETED>    (w) in section 181 (42 U.S.C. 6251), by striking 
        ``June 30, 1996'' each time it appears and inserting 
        ``September 30, 2001''.</DELETED>
<DELETED>    Sec. 4. Title II of the Energy Policy and Conservation Act 
(42 U.S.C. 6211-6251) is amended--</DELETED>
        <DELETED>    (a) by striking Part A (42 U.S.C. 6261 through 
        6264);</DELETED>
        <DELETED>    (b) by striking ``section 252(l)(1)'' in section 
        251(e)(1) (42 U.S.C. 6271(e)(1)) and inserting ``section 
        252(k)(1)'';</DELETED>
        <DELETED>    (c) in section 252 (42 U.S.C. 6272)--</DELETED>
                <DELETED>    (1) in subsections (a)(1) and (b), by 
                striking ``allocation and information provisions of the 
                international energy program'' and inserting 
                ``international emergency response 
                provisions'';</DELETED>
                <DELETED>    (2) in subsection (d)(3), by striking 
                ``known'' and inserting after ``circumstances'' ``known 
                at the time of approval'';</DELETED>
                <DELETED>    (3) in subsection (e)(2) by striking 
                ``shall'' and inserting ``may'';</DELETED>
                <DELETED>    (4) in subsection (f)(2) by inserting 
                ``voluntary agreement or'' after 
                ``approved'';</DELETED>
                <DELETED>    (5) by amending subsection (h) to read as 
                follows:</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) the international energy program, 
        or</DELETED>
        <DELETED>    ``(2) any allocation, price control, or similar 
        program with respect to petroleum products under this 
        Act.'';</DELETED>
                <DELETED>    (6) in subsection (i) by inserting 
                ``annually, or'' after ``least'' and by inserting 
                ``during an international energy supply emergency'' 
                after ``months'';</DELETED>
                <DELETED>    (7) in subsection (k) by amending 
                paragraph (2) to read as follows:</DELETED>
        <DELETED>    ``(2) The term `international emergency response 
        provisions' means--</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) the coordinated drawdown of 
                        stocks of petroleum products held or controlled 
                        by governments; and</DELETED>
                        <DELETED>    ``(ii) complementary actions taken 
                        by governments during an existing or impending 
                        international oil supply disruption''; 
                        and</DELETED>
                <DELETED>    (8) by amending subsection (l) to read as 
                follows:</DELETED>
<DELETED>    ``(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.'';</DELETED>
        <DELETED>    (d) by adding at the end of section 256(h), 
        ``There are authorized to be appropriated for fiscal years 1996 
        through 2001, such sums as may be necessary.'';</DELETED>
        <DELETED>    (e) by striking Part C (42 U.S.C. 271 through 
        272); and</DELETED>
        <DELETED>    (f) in section 281 (42 U.S.C. 6285), by striking 
        ``June 30, 1996'' each time it appears and inserting 
        ``September 30, 2001''.</DELETED>
<DELETED>    Sec. 5. (a) Title III of the Energy Policy and 
Conservation Act (42 U.S.C. 6291-6327, 6361-6374d) is amended--
</DELETED>
        <DELETED>    (1) in section 365(f) (42 U.S.C. 6325(f)) by 
        amending paragraph (1) to read as follows:</DELETED>
        <DELETED>    ``(1) Except as provided in paragraph (2), for the 
        purpose of carrying out this part, there are authorized to be 
        appropriated $24,650 million for fiscal year 1996 and for 
        fiscal years 1997 through 2001, such sums as may be 
        necessary.''; and</DELETED>
        <DELETED>    (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 $26,849 million to be appropriated for 
        fiscal year 1996 and for fiscal years 1997 through 2001, such 
        sums as may be necessary.''.</DELETED>
<DELETED>    (b) In section 400BB(b) (42 U.S.C. 6374a(b)) by amending 
paragraph (1) to read as follows:</DELETED>
        <DELETED>    ``(1) There are authorized to be appropriated to 
        the Secretary for carrying out this section such sums as may be 
        necessary for fiscal years 1996 through 2001, to remain 
        available until expended.''.</DELETED>
<DELETED>    Sec. 6. Title V of the Energy Policy and Conservation Act 
(42 U.S.C. 6381-6422) is amended--</DELETED>
        <DELETED>    (1) by striking section 507 (42 U.S.C. 6385); 
        and</DELETED>
        <DELETED>    (2) by striking section 522 (42 U.S.C. 
        6392).</DELETED>
That this Act may be cited as the ``Energy Policy and Conservation Act 
Amendment 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 paragraph (3).
    Sec. 3. Title I of the Energy Policy and Conservation Act (42 
U.S.C. 6211-6251) is amended--
            (a) in section 105 (42 U.S.C. 6213)--
                    (1) by amending subsection (a) to read as follows--
    ``(a) The Secretary of the Interior shall permit 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 a person, when 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, 
unless the Secretary determines prior to any lease sale that this 
bidding would adversely affect competition or the receipt of fair 
market value.''; and
                    (2) by striking subsections (c) and (e);
            (b) by striking section 106 (42 U.S.C. 6214);
            (c) in section 151 (42 U.S.C. 6231)--
                    (1) in subsection (a) by striking ``limited'' and 
                ``short-term''; and
                    (2) 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.'';
            (d) in section 152 (42 U.S.C. 6232)--
                    (1) by striking paragraphs (1) and (7), and
                    (2) in paragraph (11) by striking ``, the Early 
                Storage Reserve, and the Regional Petroleum Reserve'';
            (e) by striking section 153 (42 U.S.C. 6233);
            (f) in section 154 (42 U.S.C. 6234)--
                    (1) by amending subsection (a) to read as follows:
    ``(a) A Strategic Petroleum Reserve for the storage of up to 1 
billion barrels of petroleum products shall be created pursuant to this 
part.'';
                    (2) 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.'';
                    (3) by amending (c) to read as follows:
    ``(c) The Secretary shall prepare a statement of policy on 
Strategic Petroleum Reserve development, maintenance and drawdown. The 
statement of policy shall evaluate the effect of sales of petroleum 
from the Strategic Petroleum Reserve under authorities other than those 
provided by this Act on the ability of the United States to fulfill its 
obligations under the international energy program. The statement of 
policy shall evaluate the effectiveness of the Strategic Petroleum 
Reserve at reducing the impact of severe energy supply interruptions, 
in light of existing quantities of petroleum in the Strategic Petroleum 
Reserve, and the likelihood of purchases of additional petroleum for 
storage. The statement of policy shall set forth alternative strategies 
for drawdown and the criteria to be employed at the time of drawdown to 
select among such strategies. The statement of policy shall be 
published in the Federal Register and be subject to public comment, and 
may be prepared without regard to the requirements of section 553 of 
title 5, United States Code, section 501 of the Department of Energy 
Organization Act (42 U.S.C. 7191), and section 523 of this Act.''; and
                    (4) by striking subsections (d), and (e);
            (g) by striking section 155 (42 U.S.C. 6235);
            (h) 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'';
            (i) by striking section 157 (42 U.S.C. 6237);
            (j) by striking section 158 (42 U.S.C. 6238);
            (k) by amending the heading for section 159 (42 U.S.C. 
        6239) to read, ``Development, Operation, and Maintenance of the 
        Reserve'';
            (l) in section 159 (42 U.S.C. 6239)--
                    (1) by striking subsections (a), (b), (c), (d), and 
                (e);
                    (2) 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 is those facilities are 
        subject to audit by the United States;
            ``(10) require the maintenance of the Industrial Petroleum 
        Reserve;
            ``(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; and
            ``(12) to the extent provided in an Appropriations Act, and 
        not withstanding section 649(b) of the Department of Energy 
        Organization Act (42 U.S.C. 7259(b)), the Secretary is 
        authorized to store in underutilized SPR facilities, by lease 
        or otherwise, petroleum product owned by a foreign government 
        or its representative; petroleum product stored under this 
        paragraph is not part of the Reserve, is not subject to part C 
        of this title, and notwithstanding any provision of this Act, 
        may be exported from the United States.'';
                    (3) in subsection (g)--
                            (A) by striking ``implementation'' and 
                        inserting ``development''; and
                            (B) by striking ``Plan'';
                    (4) by striking subsections (h) and (i);
                    (5) by amending subsection (j) to read as follows:
    ``(j) When the Secretary determines that a 680,000,000 barrel 
inventory can reasonably be expected to be reached in the Reserve 
within 5 years, a plan for expansion will be submitted to the 
Congress.''; and
                    (6) by amending subsection (l) to read as follows:
    ``(l) 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 in accordance with section 523 of this Act, without 
regard to rulemaking requirements in section 553 of title 5, United 
States Code, and section 501 of the Department of Energy Organization 
Act (42 U.S.C. 7191),'';
            (m) in section 160 (42 U.S.C. 6240)--
                    (1) 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'';
                    (2) in subsection (b), by striking ``including the 
                Early Storage Reserve and the Regional Petroleum 
                Reserve'' and paragraph (2); and
                    (3) by striking subsections (c), (d), (e), and (g);
          (n) in section 161 (42 U.S.C. 6241)--
                    (1) by striking subsections (b) and (c);
                    (2) 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.'';
                    (3) 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
                    (4) in subsection (g)--
                            (A) in paragraph (l), by striking 
                        ``Distribution Plan'' and inserting 
                        ``distribution procedures'';
                            (B) by striking paragraphs (2) and (6); and
                            (C) in paragraph (4), by striking ``90'' in 
                        inserting ``95'';
            (o) by striking section 164 (42 U.S.C. 6244);
            (p) 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) the status of the physical capacity of the Reserve 
        and the type and quantity of petroleum in the Reserve;
            ``(2) an estimate of the schedule and cost to complete 
        planned equipment upgrade or capital investment in the Reserve, 
        including those carried out as part of operational maintenance 
        or extension of life activities;
            ``(3) an identification of any life-limiting conditions or 
        operational problems at any Reserve facility, and proposed 
        remedial actions including an estimate of the schedule and cost 
        of implementing such remedial actions;
            ``(4) a description of current withdrawal and distribution 
        rates and capabilities, and an identification of any 
        operational or other limitations on such rates and 
        capabilities;
            ``(5) an identification of purchases of petroleum made in 
        the preceding year and planned in the following year, 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 financial 
        transactions of the Strategic Petroleum Reserve and Strategic 
        Petroleum Reserve Petroleum Accounts for the year;
            ``(8) a summary of expenses for the year, and the number of 
        Federal and contractor employees;
            ``(9) the status of contracts for development, operation, 
        maintenance, distribution, and other activities related to the 
        implementation of this part; and
            ``(10) any recommendations for supplemental legislation or 
        policy or operational changes the Secretary considers necessary 
        and appropriate to implement this part.'';
            (q) in section 166 (42 U.S.C. 6246) by striking all after 
        ``appropriated'' and inserting ``the funds necessary to 
        implement this part.'';
            (r) in section 167 (42 U.S.C. 6247)--
                    (1) in subsection (b)--
                            (A) by inserting ``for test sales of 
                        petroleum products from the Reserve,'' after 
                        ``Strategic Petroleum Reserve,'', and by 
                        inserting ``for'' before ``the drawdown'';
                            (B) by striking paragraph (1); and
                            (C) in paragraph (2), by striking ``after 
                        fiscal year 1982'';
            (s) in section 171 (42 U.S.C. 6249)--
                    (1) by amending subparagraph (b)(2)(B) to read as 
                follows:
                    ``(B) the Secretary notifies each House of the 
                Congress of the determination and identifies in the 
                notification the location, type, and owernship of 
                storage and related facilities proposed to be included, 
                or the volume, type, and ownership of petroleum product 
                proposed to be stored, in the Reserve, and an estimate 
                of the proposed benefits.'';
            (t) in section 172 (42 U.S.C. 6249a), by striking 
        subsections (a) and (b);
            (u) by striking section 173 (42 U.S.C. 6249b); and
            (v) in section 181 (42 U.S.C. 6251), by striking ``June 30, 
        1996'' each time it appears and inserting ``September 30, 
        2001''.
    Sec. 4. Title II of the Energy Policy and Conservation Act (42 
U.S.C. 6211-6251) is amended--
            (a) by striking Part A (42 U.S.C. 6261 through 6264);
            (b) by striking ``section 252(l)(1)'' in section 251(e)(1) 
        (42 U.S.C. 6271(e)(1)) and inserting ``section 252(k)(1)'';
            (c) in section 252 (42 U.S.C. 6272)--
                    (1) in subsections (a)(1) and (b), by striking 
                ``allocation and information provisions of the 
                international energy program'' and inserting 
                ``international emergency response provisions'';
                    (2) in subsection (d)(3), by striking ``known'' and 
                inserting after ``circumstances'' ``known at the time 
                of approval'';
                    (3) in subsection (e)(2) by striking ``shall'' and 
                inserting ``may'';
                    (4) in subsection (f)(2) by inserting ``voluntary 
                agreement or'' after ``approved'';
                    (5) 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.'';
                    (6) in subsection (i) by inserting ``annually, or'' 
                after ``least'' and by inserting ``during an 
                international energy supply emergency'' after 
                ``months'';
                    (7) 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
                    (8) 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.'';
            (d) by adding at the end of section 256(h), ``There are 
        authorized to be appropriated $5,000,000 for each of the fiscal 
        years 1996 through 1999.''
            (e) by striking Part C (42 U.S.C. 6281 through 6282); and
            (f) in section 281 (42 U.S.C. 6285), be striking ``June 30, 
        1996'' each time it appears and inserting ``September 30, 
        2001''.
    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 $26,500,000 for fiscal year 1996 and for fiscal 
        years 1997 through 2001, 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 $29,000,000 to be appropriated for fiscal year 1996 
        and for fiscal years 1997 through 2001, such sums as may be 
        necessary.''.
    (b) in section 400BB(b) (42 U.S.C. 6374a(b)) by amending paragraph 
(1) to read as follows:
            ``(1) There are authorized to be appropriated to the 
        Secretary for carrying out this section such sums as may be 
        necessary for fiscal years 1996 through 2001, to remain 
        available until expended.''
    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).
    Sec. 7. (a) Section 161 of the Energy Policy and Conservation Act 
(42 U.S.C. 6241) is amended by adding at the end the following new 
subsection:
    ``(j)(1) With respect to each offering of a quantity of petroleum 
product during a drawdown of the Strategic Petroleum Reserve:
                    ``(A) the State of Hawaii, in addition to having 
                the opportunity to submit a competitive bid, may--
                            ``(i) submit a binding offer, and shall on 
                        submission of the offer, be entitled to 
                        purchase a category of petroleum product 
                        specified in a notice of sale at a price equal 
                        to the volumetrically weighted average of the 
                        successful bids made for the remaining quantity 
                        of petroleum product within the category that 
                        is the subject of the offering; and
                            ``(ii) submit one or more alternative 
                        offers, for other categories of petroleum 
                        product, that will be binding in the event that 
                        no price competitive contract is awarded for 
                        the category of petroleum product on which a 
                        binding offer is submitted under clause (i); 
                        and
                    ``(B) at the request of the Governor of the State 
                of Hawaii, petroleum product purchased by the State of 
                Hawaii at a competitive sale or through a binding offer 
                shall have first preference in scheduling for lifting.
            ``(2)(A) In administering this subsection, and with respect 
        to each offering, the Secretary may impose the limitation 
        described in subparagraph (B) or (C) that results in the 
        purchase of the lesser quantity of petroleum product.
            ``(B) The Secretary may limit the quantity of petroleum 
        product that the State of Hawaii may purchase through a binding 
        offer at any one offering to one-twelfth of the total quantity 
        of imports of petroleum product brought into the State during 
        the previous year (or other period determined by the Secretary 
        to be representative).
            ``(C) The Secretary may limit the quantity that may be 
        purchased through binding offers at any one offering to 3 
        percent of the offering.
            ``(3) Notwithstanding any limitation imposed under 
        paragraph (2), in administering this subsection, and with 
        respect to each offering, the Secretary shall, at the request 
        of the Governor of the State of Hawaii, or an eligible entity 
        certified under paragraph (6), adjust the quantity to be sold 
        to the State of Hawaii as follows:
                    ``(A) The Secretary shall adjust upward to the next 
                whole number increment of a full tanker load if the 
                quantity to be sold is--
                            ``(i) less than one full tanker load; or
                            ``(ii) greater than or equal to 50 percent 
                        of a full tanker load more than a whole number 
                        increment of a full tanker load.
                    ``(B) The Secretary shall adjust downward to the 
                next whole number increment of a full tanker load if 
                the quantity to be sold is less than 50 percent of a 
                full tanker load more than a whole number increment of 
                a full tanker load.
            ``(4) The State of Hawaii may enter into an exchange or a 
        processing agreement that requires delivery to other locations, 
        so long as petroleum product of similar value or quantity is 
        delivered to the State of Hawaii.
            ``(5) Except as otherwise provided in this Act, the 
        Secretary may require the State of Hawaii to comply with the 
        standard sales provisions applicable to purchasers of petroleum 
product at competitive sales.
            ``(6)(A) Notwithstanding the foregoing, and subject to 
        subparagraphs (B) and (C), if the Governor of the State of 
        Hawaii certifies to the Secretary that the State has entered 
        into an agreement with an eligible entity to effectuate the 
        purposes of this Act, such eligible entity may act on behalf of 
        the State of Hawaii for purposes of this subsection.
            ``(B) The Governor of the State of Hawaii shall not certify 
        more than one eligible entity under this paragraph for each 
        notice of sale.
            ``(C) If the Secretary has notified the Governor of the 
        State of Hawaii that a company has been barred from bidding 
        (either prior to, or at the time that a notice of sale is 
        issued), the Governor shall not certify such company under the 
        paragraph.
            ``(7) At the request of the governor of an insular area, 
        the Secretary shall, for a period not to exceed 180 days 
        following a drawdown of the Strategic Petroleum Reserve, assist 
        the insular area in its efforts to maintain adequate supplies 
        of petroleum products from traditional and non-traditional 
        suppliers.
            ``(8) As used in this subsection--
                    ``(A) the term `binding offer' means a bid 
                submitted by the State of Hawaii for an assured award 
                of a specific quantity of petroleum product, with a 
                price to be calculated pursuant to this Act, that 
                obligates the offeror to take title to the petroleum 
                product without further negotiation or recourse to 
                withdraw the offer;
                    ``(B) the term `category of petroleum product' 
                means a master line item within a notice of sale;
                    ``(C) the term `eligible entity' means an entity 
                that owns or controls a refinery that is located within 
                the State of Hawaii;
                    ``(D) the term `full tanker load' means a tanker of 
                approximately 700,000 barrels of capacity, or such 
                lesser tanker capacity as may be designated by the 
                State of Hawaii;
                    ``(E) the term `insular area' means Guam, American 
                Samoa, the commonwealth of the Northern Mariana 
                Islands, the Virgin Islands, Puerto Rico, and the 
                freely associated states of the Republic of Palau, 
                Federated States of Micronesia, and Republic of the 
                Marshall Islands;
                    ``(F) the term `offering' means a solicitation for 
                bids for a quantity or quantities of petroleum product 
                from the Strategic Petroleum Reserve as specified in 
                the notice of sale; and
                    ``(G) the term `notice of sale' means the document 
                that announces--
                            ``(i) the sale of Strategic Petroleum 
                        Reserve products;
                            ``(ii) the quantity, characteristics, and 
                        location of the petroleum product being sold;
                            ``(iii) the delivery period for the sale; 
                        and
                            ``(iv) the procedures for submitting 
                        offers.''.
    (b) The amendment made by subsection (a) shall take effect on the 
date that is 180 days after the date of enactment of this Act or the 
date that final regulations are promulgated pursuant to section 3, 
whichever is sooner.
    (c) The Secretary shall promulgate such regulations as are 
necessary to carry out the amendment made by subsection (a).
    (d) Regulations issued to carry out this section, and the amendment 
made by subsection (a), shall not be subject to--
            (1) section 523 of the Energy Policy and Conservation Act 
        (42 U.S.C. 6393); or
            (2) section 501 of the Department of Energy Organization 
        Act (42 U.S.C. 7191).