[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 186 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 186

    To amend the Energy Policy and Conservation Act with respect to 
   purchases from the Strategic Petroleum Reserve by entities in the 
      insular areas of the United States, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 22, 1997

   Mr. Akaka 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 with respect to 
   purchases from the Strategic Petroleum Reserve by entities in the 
      insular areas of the United States, 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 ``Emergency Petroleum Supply Act''.

SEC. 2. PURCHASES FROM STRATEGIC PETROLEUM RESERVE BY ENTITIES IN 
              INSULAR AREAS OF UNITED STATES.

    Section 161 of the Energy Policy and Conservation Act (42 U.S.C. 
6241) is amended by adding at the end the following:
    ``(j) Purchases From Strategic Petroleum Reserve by Entities in 
Insular Areas of United States.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Binding offer.--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) Category of petroleum product.--The term 
                `category of petroleum product' means a master line 
                item within a notice of sale.
                    ``(C) Eligible entity.--The term `eligible entity' 
                means an entity that owns or controls a refinery that 
                is located within the State of Hawaii.
                    ``(D) Full tanker load.--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) Insular area.--The term `insular area' means 
                the Commonwealth of Puerto Rico, the Commonwealth of 
                the Northern Mariana Islands, the United States Virgin 
                Islands, Guam, American Samoa, the Republic of the 
                Marshall Islands, the Federated States of Micronesia, 
                and the Republic of Palau.
                    ``(F) Offering.--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.
                    ``(G) Notice of sale.--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.
            ``(2) In General.--In the case of an 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 a 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 the petroleum product within the category 
                        that is the subject of the offering; and
                            ``(ii) submit 1 or more alternative offers, 
                        for other categories of the petroleum product, 
                        that will be binding if 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, a 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.
            ``(3) Limitation on quantity.--
                    ``(A) In general.--In administering this 
                subsection, in the case of 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) Portion of quantity of previous imports.--The 
                Secretary may limit the quantity of a petroleum product 
                that the State of Hawaii may purchase through a binding 
                offer at any offering to \1/12\ of the total quantity 
                of imports of the petroleum product brought into the 
                State during the previous year (or other period 
                determined by the Secretary to be representative).
                    ``(C) Percentage of offering.--The Secretary may 
                limit the quantity that may be purchased through 
                binding offers at any offering to 3 percent of the 
                offering.
            ``(4) Adjustments.--
                    ``(A) In general.--Notwithstanding any limitation 
                imposed under paragraph (3), in administering this 
                subsection, in the case of each offering, the Secretary 
                shall, at the request of the Governor of the State of 
                Hawaii, or an eligible entity certified under paragraph 
                (7), adjust the quantity to be sold to the State of 
                Hawaii in accordance with this paragraph.
                    ``(B) Upward adjustment.--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 1 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.
                    ``(C) Downward adjustment.--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.
            ``(5) Delivery to other locations.--The State of Hawaii may 
        enter into an exchange or a processing agreement that requires 
        delivery to other locations, if a petroleum product of similar 
        value or quantity is delivered to the State of Hawaii.
            ``(6) Standard sales provisions.--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.
            ``(7) Eligible entities.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C) and notwithstanding any other provision of this 
                paragraph, 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 carry out 
                this Act, the eligible entity may act on behalf of the 
                State of Hawaii to carry out this subsection.
                    ``(B) Limitation.--The Governor of the State of 
                Hawaii shall not certify more than 1 eligible entity 
                under this paragraph for each notice of sale.
                    ``(C) Barred company.--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 the company under this 
                paragraph.
            ``(7) Supplies of petroleum products.--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.''.

SEC. 3. REGULATIONS.

    (a) In General.--The Secretary of Energy shall issue such 
regulations as are necessary to carry out the amendment made by section 
2.
    (b) Administrative Procedure.--Regulations issued to carry out the 
amendment made by section 2 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).

SEC. 4. EFFECTIVE DATE.

    The amendment made by section 2 takes effect on the earlier of--
            (1) the date that is 180 days after the date of enactment 
        of this Act; or
            (2) the date that final regulations are issued under 
        section 3.
                                 <all>