[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1051 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1051

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

                              May 13, 1999

 Mr. Murkowski (for himself and Mr. Bingaman) (by request) 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 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. That this Act may be cited as the ``Energy Policy and 
Conservation Act Amendments''.
    Sec. 2. Section 2 of the Energy Policy and Conservation Act (42 
U.S.C. 6201) is amended--
            (a) 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
            (b) by striking paragraphs (3) and (6).
    Sec. 3. Section 3 of the Energy Policy and Conservation Act (42 
U.S.C. 6202) is amended in paragraph (8) by inserting ``or 
international'' before ``energy supply shortage''.
    Sec. 4. Title I of the Energy Policy and Conservation Act (42 
U.S.C. 6211-6251) is amended--
            (a) by striking section 102 (42 U.S.C. 6211) and its 
        heading;
            (b) by striking section 104(b)(1);
            (c) in section 105 (42 U.S.C. 6213)--
                    (1) by amending subsection (e) to read as follows:
    ``(e) On or after December 31, 2000, the Secretary shall establish 
a program for setting the terms of joint bidding by any person for the 
right to explore for and develop crude oil, natural gas, natural gas 
liquids, sulphur, and other minerals located on Outer Continental Shelf 
lands. The program shall consider the goals of ensuring a fair return, 
encouraging timely and efficient resource development, and other goals 
as the Secretary deems appropriate. Conditions under which joint 
bidding will be permitted or restricted will be established through 
regulation.'';
                    (2) by adding subsection (f) to read as follows:
    ``(f) Subsections (a) through (d) of this section shall expire on 
the effective date of the program established by the Secretary pursuant 
to subsection (e).''.
            (d) by striking section 106 (42 U.S.C. 6214) and its 
        heading;
            (e) by amending section 151(b) (42 U.S.C. 6231) 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, to carry out obligations 
of the United States under the international energy program, and for 
other purposes as provided for in this Act.'';
            (f) in section 152 (42 U.S.C. 6232)--
                    (1) by striking paragraphs (1), (3) and (7), and
                    (2) in paragraph (11) by striking ``; such term 
                includes the Industrial Petroleum Reserve, the Early 
                Storage Reserve, and the Regional Petroleum Reserve''.
            (g) by striking section 153 (42 U.S.C. 6233) and its 
        heading;
            (h) 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, in accordance with this part, shall exercize 
authority over the development, operation, and maintenance of the 
Reserve.''; and
                    (3) by striking subsections (c), (d), and (e);
            (i) by striking section 155 (42 U.S.C. 6235) and its 
        heading;
            (j) by striking section 156 (42 U.S.C. 6236) and its 
        heading;
            (k) by striking section 157 (42 U.S.C. 6237) and its 
        heading;
            (l) by striking section 158 (42 U.S.C. 6238) and its 
        heading;
            (m) by amending the heading for section 159 (42 U.S.C. 
        6239) to read, ``Development, Operation, and Maintenance of the 
        Reserve'';
            (n) 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 
        land or interests in land, or of storage and related facilities 
        acquired under this part, under such terms and conditions as 
        the Secretary considers 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) 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
                    (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) If the Secretary determines expansion beyond 680,000,000 
barrels of petroleum product inventory is appropriate, the Secretary 
shall submit a plan for expansion to the Congress.''; and
                    (6) by amending subsection (l) to read as follows:
    ``(l) During a drawdown and sale of Strategic Petroleum Reserve 
petroleum products, the Secretary may issue implementing rules, 
regulations, or orders 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).'';
            (o) in section 160 (42 U.S.C. 6240)--
                    (1) in subsection (a), by striking all before the 
                dash and inserting the following--
    ``(a) The Secretary may acquire, place in storage, transport, or 
exchange'';
                    (2) in subjection (a)(1) by striking all after 
                ``Federal lands'';
                    (3) in subsection (b), by striking ``, including 
                the Early Storage Reserve and the Regional Petroleum 
                Reserve'' and by striking paragraph (2); and
                    (4) by striking subsections (c), (d), (e), and (g);
            (p) in section 161 (42 U.S.C. 6241)--
                    (1) by striking ``Distribution of the Reserve'' in 
                the title of this section and inserting ``Sale of 
                Petroleum Products'';
                    (2) in subsection (a), by striking ``drawdown and 
                distribute'' and inserting ``draw down and sell 
                petroleum products in'';
                    (3) by striking subsections (b), (c), and (f);
                    (4) by amending subsection (d)(1) to read as 
                follows:
    ``(d)(1) Drawdown and sale of petroleum products from the Strategic 
Petroleum Reserve may not be made unless the President has found 
drawdown and sale are required by a severe energy supply interruption 
or by obligations of the United States under the international energy 
program.'';
                    (5) by amending subsection (e) to read as follows:
    ``(e)(1) The Secretary shall sell petroleum products 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 
considered appropriate by the Secretary, 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 sale under this 
Section.''; and
                    (6) in subsection (g)--
                            (A) by amending paragraph (1) to read as 
                        follows:
    ``(g)(1) The Secretary shall conduct a continuing evaluation of the 
drawdown and sales procedures. In the conduct of an evaluation, the 
Secretary is authorized to carry out a test drawdown and sale or 
exchange of petroleum products from the Reserve. Such a test drawdown 
and sale or exchange may not exceed 5,000,000 barrels of petroleum 
products.'';
                            (B) by striking paragraphs (2) and (6A), 
                        striking the subparagraph designator ``(B)'' in 
                        paragraph (6), and by deleting the last 
                        sentence of paragraph (6);
                            (C) in paragraph (4), by striking ``90'' 
                        and inserting ``95'';
                            (D) in paragraph (5), by striking 
                        ``drawdown and distribution'' and inserting 
                        ``test''; and
                            (E) in paragraph (8), by striking 
                        ``drawdown and distribution'' and inserting 
                        ``test'';
                    (7) in subsection (h)--
                            (A) in paragraph (1) by striking 
                        ``distribute'' and inserting ``sell petroleum 
                        products from'';
                            (B) in paragraph (2) by striking ``In no 
                        case may the Reserve'' and inserting 
                        ``Petroleum products from the Reserve may 
                        not''; and
                            (C) in paragraph (3) by striking 
                        ``distribution'' each time it appears and 
                        inserting ``sale'';
            (q) by striking section 164 (42 U.S.C. 6244) and its 
        heading;
            (r) by amending section 165 (42 U.S.C. 6245) and its 
        heading to read as follows--

                            ``annual report

    ``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 products in the Reserve;
            ``(2) an estimate of the schedule and cost to complete 
        planned equipment upgrade or capital investment in the Reserve, 
        including upgrades and investments 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 those remedial actions;
            ``(4) a description of current withdrawal and distribution 
        rates and capabilities, and an identification of any 
        operational or other limitations on those rates and 
        capabilities;
            ``(5) a listing of petroleum product acquisitions 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;
            ``(10) a summary of foreign oil storage agreements and 
        their implementation status;
            ``(11) any recommendations for supplemental legislation or 
        policy or operational changes the Secretary considers necessary 
        or appropriate to implement this part.'';
            (s) in section 166 (42 U.S.C. 6246) by striking ``for 
        fiscal year 1997.'';
            (t) 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'' and 
                        inserting ``, sale,'' after ``drawdown'';
                            (B) by striking paragraph (1); and
                            (C) in paragraph (2), by striking ``after 
                        fiscal year 1982''; and
                    (2) by striking subsection (e);
            (u) in section 171 (42 U.S.C. 6249)--
                    (1) by amending subsection (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 ownership of 
                storage and related facilities proposed to be included, 
                or the volume, type, and ownership of petroleum 
                products proposed to be stored, in the Reserve, and an 
                estimate of the proposed benefits.'';
                    (2) in subsection (b)(3), by striking 
                ``distribution of'' and inserting ``sale of petroleum 
                products from'';
            (v) in section 172 (42 U.S.C. 6249a), by striking 
        subsections (a) and (b);
            (w) by striking section 173 (42 U.S.C. 6249b) and its 
        heading; and
            (x) in section 181 (42 U.S.C. 6251), by striking 
        ``September 30, 1999'' each time it appears and inserting 
        ``September 30, 2003.''.
    Sec. 5. 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) and 
        its heading;
            (b) by adding at the end of section 256(h), ``There are 
        authorized to be appropriated for fiscal years 1999 through 
        2003, such sums as may be necessary.''
            (c) by striking Part C (42 U.S.C. 6281 through 6282) and 
        its heading; and
            (d) in section 281 (42 U.S.C. 6285), by striking 
        ``September 30, 1999'' each time it appears and inserting 
        ``September 30, 2003''.
    Sec. 6. The Table of Contents for the Energy Policy and 
Conservation Act is amended--
            (a) by striking the items relating to sections 102, 106, 
        153, 155, 156, 157, 158, and 164;
            (b) by amending the item relating to section 159 to read as 
        follows:

``Development, Operation, and Maintenance of the Reserve.'';
            (c) by amending the item relating to section 161 to read as 
        follows:

``Drawdown and Sale of Petroleum Products''
            (d) by amending the item relating to section 165 to read as 
        follows:

``Annual Report''
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