[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 417 Reported in Senate (RS)]





                                                        Calendar No. 77

105th CONGRESS

  1st Session

                                 S. 417

                          [Report No. 105-25]

_______________________________________________________________________

                                 A BILL

  To extend energy conservation programs under the Energy Policy and 
              Conservation Act through September 30, 2002.

_______________________________________________________________________

                             June 11, 1997

                       Reported with an amendment





                                                        Calendar No. 77
105th CONGRESS
  1st Session
                                 S. 417

                          [Report No. 105-25]

  To extend energy conservation programs under the Energy Policy and 
              Conservation Act through September 30, 2002.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 10, 1997

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

                             June 11, 1997

              Reported by Mr. Murkowski, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
  To extend energy conservation programs under the Energy Policy and 
              Conservation Act through September 30, 2002.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. ENERGY POLICY AND CONSERVATION ACT 
              AMENDMENTS.</DELETED>

<DELETED>    The Energy Policy and Conservation Act is amended--
</DELETED>
        <DELETED>    (1) in section 160 by striking subsections (d) and 
        (e);</DELETED>
        <DELETED>    (2) by amending section 166 (42 U.S.C. 6246) to 
        read as follows:</DELETED>

          <DELETED>``authorization of appropriations</DELETED>

<DELETED>    ``Sec. 166. There are authorized to be appropriated for 
each of fiscal years 1998 through 2002 such sums as may be necessary to 
implement this part.'';</DELETED>
        <DELETED>    (3) at the end of part B of title I by adding the 
        following new section:</DELETED>

          <DELETED>``use of underutilized facilities</DELETED>

<DELETED>    ``Sec. 168. 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 Strategic Petroleum 
Reserve facilities, by lease or otherwise, petroleum product owned by a 
foreign government or its representative. Petroleum product stored 
under this section is not part of the Strategic Petroleum 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>    (4) in section 181 (42 U.S.C. 6251) by striking 
        ``1997'' both places it appears and inserting in lieu thereof 
        ``2002'';</DELETED>
        <DELETED>    (5) 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>    (6) in section 252 (42 U.S.C. 6272)--</DELETED>
                <DELETED>    (A) 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>    (B) in subsection (d)(3), by striking 
                ``known'' and inserting after ``circumstances'' ``known 
                at the time of approval'';</DELETED>
                <DELETED>    (C) in subsection (e)(2) by striking 
                ``shall'' and inserting ``may'';</DELETED>
                <DELETED>    (D) in subsection (f)(2) by inserting 
                ``voluntary agreement or'' after 
                ``approved'';</DELETED>
                <DELETED>    (E) 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>    (F) in subsection (i) by inserting 
                ``annually, or'' after ``least'' and by inserting 
                ``during an international energy supply emergency'' 
                after ``months'';</DELETED>
                <DELETED>    (G) 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>    (H) 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>    (7) by amending the last sentence of section 
        256(h) (42 U.S.C. 6276(h)) to read as follows: ``There are 
        authorized to be appropriated for each of fiscal years 1998 
        through 2002 such sums as may be necessary to carry out this 
        part.'';</DELETED>
        <DELETED>    (8) in section 281 (42 U.S.C. 6285) by striking 
        ``1997'' both places it appears and inserting in lieu thereof 
        ``2002'';</DELETED>
        <DELETED>    (9) in section 365(f)(1) (42 U.S.C. 6325(f)(1)) by 
        striking ``not to exceed'' and all that follows through 
        ``fiscal year 1993'' and inserting in lieu thereof ``for each 
        of fiscal years 1998 through 2002 such sums as may be 
        necessary.''; and</DELETED>
        <DELETED>    (10) by amending section 397 (42 U.S.C. 6371f) to 
        read as follows:</DELETED>

          <DELETED>``authorization of appropriations</DELETED>

<DELETED>    ``Sec. 397. For the purpose of carrying out this part, 
there are authorized to be appropriated for each of fiscal years 1998 
through 2002 such sums as may be necessary.''; and</DELETED>
        <DELETED>    (11) 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 each of fiscal years 1998 through 2002, to remain 
        available until expended.''.</DELETED>

<DELETED>SEC. 2. ENERGY CONSERVATION AND PRODUCTION ACT 
              AMENDMENT.</DELETED>

<DELETED>    Section 422 of the Energy Conservation and Production Act 
(42 U.S.C. 6872) is amended to read as follows:</DELETED>

          <DELETED>``authorization of appropriations</DELETED>

<DELETED>    ``Sec. 422. For the purpose of carrying out the 
weatherization program under this part, there are authorized to be 
appropriated for each of fiscal years 1998 through 2002 such sums as 
may be necessary.''.</DELETED>

SECTION 1. ENERGY POLICY AND CONSERVATION ACT AMENDMENTS.

    The Energy Policy and Conservation Act is amended--
            (1) at the end of section 154 by adding the following new 
        subsection:
    ``(f) No later than October 1, 1997, 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.'';
            (2) by amending section 166 (42 U.S.C. 6246) to read as 
        follows:

                   ``authorization of appropriations

    ``Sec. 166. There are authorized to be appropriated for each of 
fiscal years 1998 through 2000 such sums as may be necessary to 
implement this part.'';
            (3) at the end of part B of title I by adding the following 
        new section:

                   ``use of underutilized facilities

    ``Sec. 168. (a) 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 Strategic Petroleum Reserve 
facilities, by lease or otherwise, petroleum product owned by a foreign 
government or its representatives. Petroleum product stored under this 
section is not part of the Strategic Petroleum Reserve, is not subject 
to part C of this title, and notwithstanding any provision of this Act, 
may be exported from the United States.
    ``(b) Beginning on October 1, 2002, funds resulting from the 
leasing or other use of a Reserve facility under subsection (a) shall 
be available to the Secretary, without further appropriation, for the 
purchase of petroleum products for the Reserve.'';
            (4) in section 181 (42 U.S.C. 6251) by striking ``1997'' 
        other places it appears and inserting in lieu thereof ``2000'';
            (5) by striking ``section 252(l)(1)'' in section 251(e)(1) 
        (42 U.S.C. 6271(e)(1)) and inserting ``section 252(k)(1)'';
            (6) 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 
                ``international emergency response provisions'';
                    (B) in subsection (d)(3), by striking ``known'' and 
                inserting after ``circumstances'' ``known at the time 
                of approval'';
                    (C) in subsection (e)(2) by striking ``shall'' and 
                inserting ``may'';
                    (D) in subsection (f)(2) by inserting ``voluntary 
                agreement or'' after ``approved'';
                    (E) 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.'';
                    (F) 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
                    (G) 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.'';
            (7) by amending the last sentence of section 256(h) (42 
        U.S.C. 6276(h)) to read as follows: ``There are authorized to 
        be appropriated for each of fiscal years 1998 through 2002 such 
        sums as may be necessary to carry out this part.'';
            (8) in section 281 (42 U.S.C. 6285) by striking ``1997'' 
        both places it appears and inserting in lieu thereof ``2002''.;
            (9) in section 365(f)(1) (42 U.S.C. 6325(f)(1)) by striking 
        ``not to exceed'' and all that follows through ``fiscal year 
        1993'' and inserting in lieu thereof ``for each of fiscal years 
        1998 through 2002 such sums as may be necessary'';
            (10) 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 each of fiscal years 1998 through 
2002 such sums as may be necessary.''; and
            (11) 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 each of fiscal years 1998 through 2002, to remain 
        available until expended.''.

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

    (a) 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 and Freely Associated 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 
                paragraph (2) of this subsection, 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, and the Freely 
                Associated States of 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 result 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.
            ``(8) Supplies of petroleum products.--At the request of 
        the governor of an insular area, or President of a Freely 
        Associated State, 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.''.
    (b) Regulations.--
            ``(1) In general.--The Secretary of Energy shall issue such 
        regulations as are necessary to carry out the amendment made by 
        subsection (a).
            ``(2) Administrative procedure.--Regulations issued to 
        carry out the amendment made by subsection (a) shall not be 
        subject to--
                    (A) section 523 of the Energy Policy and 
                Conservation Act (42 U.S.C. 6393); or
                    (B) section 501 of the Department of Energy 
                Organization Act (42 U.S.C. 7191).
    (c) Effective Date.--The amendment made by subsection (a) 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 
        subsection (b).

SEC. 3. ENERGY POLICY ACT OF 1992 AMENDMENT.

    Section 2603 of the Energy Policy Act of 1992 (25 U.S.C. 3503) is 
amended in subsection (c) by striking ``and 1997'' each place it 
appears and inserting ``1997, 1998, 1999, and 2000'' in lieu thereof.

SEC. 4. ENERGY CONSERVATION AND PRODUCTION ACT AMENDMENT.

    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 purpose of carrying out the weatherization 
program under this part, there are authorized to be appointed for each 
of fiscal years 1998 through 2002 such sums as may be necessary.
                                 <all>