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






                                                       Calendar No. 287
106th CONGRESS
  1st Session
                                S. 1051

                          [Report No. 106-163]

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

                           September 27, 1999

              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>    Section 1. That this Act may be cited as the ``Energy 
Policy and Conservation Act Amendments''.</DELETED>
<DELETED>    Sec. 2. Section 2 of the Energy Policy and Conservation 
Act (42 U.S.C. 6201) is amended--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (b) by striking paragraphs (3) and (6).</DELETED>
<DELETED>    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''.</DELETED>
<DELETED>    Sec. 4. 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) and 
        its heading;</DELETED>
        <DELETED>    (b) by striking section 104(b)(1);</DELETED>
        <DELETED>    (c) in section 105 (42 U.S.C. 6213)--</DELETED>
                <DELETED>    (1) by amending subsection (e) to read as 
                follows:</DELETED>
<DELETED>    ``(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.'';</DELETED>
                <DELETED>    (2) by adding subsection (f) to read as 
                follows:</DELETED>
<DELETED>    ``(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).''.</DELETED>
        <DELETED>    (d) by striking section 106 (42 U.S.C. 6214) and 
        its heading;</DELETED>
        <DELETED>    (e) by amending section 151(b) (42 U.S.C. 6231) 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, to carry out obligations 
of the United States under the international energy program, and for 
other purposes as provided for in this Act.'';</DELETED>
        <DELETED>    (f) in section 152 (42 U.S.C. 6232)--</DELETED>
                <DELETED>    (1) by striking paragraphs (1), (3) and 
                (7), and</DELETED>
                <DELETED>    (2) in paragraph (11) by striking ``; such 
                term includes the Industrial Petroleum Reserve, the 
                Early Storage Reserve, and the Regional Petroleum 
                Reserve''.</DELETED>
        <DELETED>    (g) by striking section 153 (42 U.S.C. 6233) and 
        its heading;</DELETED>
        <DELETED>    (h) 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, in accordance with this part, shall 
exercize authority over the development, operation, and maintenance of 
the Reserve.''; and</DELETED>
                <DELETED>    (3) by striking subsections (c), (d), and 
                (e);</DELETED>
        <DELETED>    (i) by striking section 155 (42 U.S.C. 6235) and 
        its heading;</DELETED>
        <DELETED>    (j) by striking section 156 (42 U.S.C. 6236) and 
        its heading;</DELETED>
        <DELETED>    (k) by striking section 157 (42 U.S.C. 6237) and 
        its heading;</DELETED>
        <DELETED>    (l) by striking section 158 (42 U.S.C. 6238) and 
        its heading;</DELETED>
        <DELETED>    (m) by amending the heading for section 159 (42 
        U.S.C. 6239) to read, ``Development, Operation, and Maintenance 
        of the Reserve'';</DELETED>
        <DELETED>    (n) 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 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;</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) 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>    (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) 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</DELETED>
                <DELETED>    (6) by amending subsection (l) to read as 
                follows:</DELETED>
<DELETED>    ``(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).'';</DELETED>
        <DELETED>    (o) 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) The Secretary may acquire, place in storage, 
transport, or exchange'';</DELETED>
                <DELETED>    (2) in subjection (a)(1) by striking all 
                after ``Federal lands'';</DELETED>
                <DELETED>    (3) in subsection (b), by striking ``, 
                including the Early Storage Reserve and the Regional 
                Petroleum Reserve'' and by striking paragraph (2); 
                and</DELETED>
                <DELETED>    (4) by striking subsections (c), (d), (e), 
                and (g);</DELETED>
        <DELETED>    (p) in section 161 (42 U.S.C. 6241)--</DELETED>
                <DELETED>    (1) by striking ``Distribution of the 
                Reserve'' in the title of this section and inserting 
                ``Sale of Petroleum Products'';</DELETED>
                <DELETED>    (2) in subsection (a), by striking 
                ``drawdown and distribute'' and inserting ``draw down 
                and sell petroleum products in'';</DELETED>
                <DELETED>    (3) by striking subsections (b), (c), and 
                (f);</DELETED>
                <DELETED>    (4) by amending subsection (d)(1) to read 
                as follows:</DELETED>
<DELETED>    ``(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.'';</DELETED>
                <DELETED>    (5) by amending subsection (e) to read as 
                follows:</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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</DELETED>
                <DELETED>    (6) in subsection (g)--</DELETED>
                        <DELETED>    (A) by amending paragraph (1) to 
                        read as follows:</DELETED>
<DELETED>    ``(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.'';</DELETED>
                        <DELETED>    (B) by striking paragraphs (2) and 
                        (6A), striking the subparagraph designator 
                        ``(B)'' in paragraph (6), and by deleting the 
                        last sentence of paragraph (6);</DELETED>
                        <DELETED>    (C) in paragraph (4), by striking 
                        ``90'' and inserting ``95'';</DELETED>
                        <DELETED>    (D) in paragraph (5), by striking 
                        ``drawdown and distribution'' and inserting 
                        ``test''; and</DELETED>
                        <DELETED>    (E) in paragraph (8), by striking 
                        ``drawdown and distribution'' and inserting 
                        ``test'';</DELETED>
                <DELETED>    (7) in subsection (h)--</DELETED>
                        <DELETED>    (A) in paragraph (1) by striking 
                        ``distribute'' and inserting ``sell petroleum 
                        products from'';</DELETED>
                        <DELETED>    (B) in paragraph (2) by striking 
                        ``In no case may the Reserve'' and inserting 
                        ``Petroleum products from the Reserve may 
                        not''; and</DELETED>
                        <DELETED>    (C) in paragraph (3) by striking 
                        ``distribution'' each time it appears and 
                        inserting ``sale'';</DELETED>
        <DELETED>    (q) by striking section 164 (42 U.S.C. 6244) and 
        its heading;</DELETED>
        <DELETED>    (r) by amending section 165 (42 U.S.C. 6245) and 
        its heading to read as follows--</DELETED>

                   <DELETED>``annual report</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 products 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 upgrades and investments 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 those 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 those rates and 
        capabilities;</DELETED>
        <DELETED>    ``(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;</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;</DELETED>
        <DELETED>    ``(10) a summary of foreign oil storage agreements 
        and their implementation status;</DELETED>
        <DELETED>    ``(11) any recommendations for supplemental 
        legislation or policy or operational changes the Secretary 
        considers necessary or appropriate to implement this 
        part.'';</DELETED>
        <DELETED>    (s) in section 166 (42 U.S.C. 6246) by striking 
        ``for fiscal year 1997.'';</DELETED>
        <DELETED>    (t) in section 167 (42 U.S.C. 6247)--</DELETED>
                <DELETED>    (1) in 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'' and 
                        inserting ``, sale,'' after 
                        ``drawdown'';</DELETED>
                        <DELETED>    (B) by striking paragraph (1); 
                        and</DELETED>
                        <DELETED>    (C) in paragraph (2), by striking 
                        ``after fiscal year 1982''; and</DELETED>
                <DELETED>    (2) by striking subsection (e);</DELETED>
        <DELETED>    (u) in section 171 (42 U.S.C. 6249)--</DELETED>
                <DELETED>    (1) by amending subsection (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 
                products proposed to be stored, in the Reserve, and an 
                estimate of the proposed benefits.'';</DELETED>
                <DELETED>    (2) in subsection (b)(3), by striking 
                ``distribution of'' and inserting ``sale of petroleum 
                products from'';</DELETED>
        <DELETED>    (v) in section 172 (42 U.S.C. 6249a), by striking 
        subsections (a) and (b);</DELETED>
        <DELETED>    (w) by striking section 173 (42 U.S.C. 6249b) and 
        its heading; and</DELETED>
        <DELETED>    (x) in section 181 (42 U.S.C. 6251), by striking 
        ``September 30, 1999'' each time it appears and inserting 
        ``September 30, 2003.''.</DELETED>
<DELETED>    Sec. 5. 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) and its heading;</DELETED>
        <DELETED>    (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.''</DELETED>
        <DELETED>    (c) by striking Part C (42 U.S.C. 6281 through 
        6282) and its heading; and</DELETED>
        <DELETED>    (d) in section 281 (42 U.S.C. 6285), by striking 
        ``September 30, 1999'' each time it appears and inserting 
        ``September 30, 2003''.</DELETED>
<DELETED>    Sec. 6. The Table of Contents for the Energy Policy and 
Conservation Act is amended--</DELETED>
        <DELETED>    (a) by striking the items relating to sections 
        102, 106, 153, 155, 156, 157, 158, and 164;</DELETED>
        <DELETED>    (b) by amending the item relating to section 159 
        to read as follows:</DELETED>

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

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

<DELETED>``Annual Report''
</DELETED>    Section 1. Title I of the Energy Policy and Conservation 
Act (42 U.S.C. 6211-6251) is amended--
            (a) In section 166 (42 U.S.C. 6246), by inserting ``through 
        2003'' after ``1999''.
            (b) In section 181 (42 U.S.C. 6251), by striking ``1999'' 
        each place it appears and inserting ``2003''.
    Sec. 2. Title II of the Energy Policy and Conservation Act (42 
U.S.C. 6261-6285) is amended--
            (a) In section 256(h) (42 U.S.C. 6276(h)), by inserting 
        ``through 2003'' after ``1997''.
            (b) In section 281 (42 U.S.C. 6285), by striking ``1999'' 
        each place it appears and inserting ``2003''.




                                                       Calendar No. 287

106th CONGRESS

  1st Session

                                S. 1051

                          [Report No. 106-163]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                           September 27, 1999

                       Reported with an amendment