[Congressional Record Volume 142, Number 14 (Thursday, February 1, 1996)]
[Senate]
[Pages S860-S861]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  FEDERAL ENERGY REGULATORY COMMISSION

 Mr. MURKOWSKI. Mr. President, as part of its strategic 
realignment and downsizing proposal, the Department of Energy has 
transmitted proposed legislation to transfer the Federal Energy 
Regulatory Commission outside of the Department of Energy. Presently, 
although FERC is part of DOE, it functions as a hybrid agency, neither 
truly independent, nor quite a part of the executive branch.
  In 1977, President Carter, in response to continuing repercussions 
from the 1973-74 Arab oil embargo and wintertime shortages of natural 
gas, proposed a reorganization of the disjointed Federal energy 
establishment. The purpose of the reorganization was the creation of a 
single agency that would possess the responsibility for coordinating 
all national energy matters and policy. To this end, the Carter 
administration proposed legislation that was to assign all of the 
Government's energy regulatory and policy functions to one cabinet-
level Department of Energy.
  Although the Carter administration's goal of creating a unitary 
energy agency was, to a certain extent, shared by Congress, Congress 
also wished to preclude executive branch control of various regulatory 
functions formerly performed by the Federal Power Commission, including 
the establishment of rates for the transportation and sale of wholesale 
natural gas and electricity. These two conflicting objectives resulted 
in the anomaly of an independent agency being established within an 
executive department.
  Thus, although FERC is part of the Department of Energy, the power of 
the Secretary of Energy to influence the policies of the FERC is 
circumscribed. Specifically, the Department of Energy Organization Act 
gives the Secretary the authority to propose rules, regulations, and 
statements of policy of general applicability with respect to any 
function under the jurisdiction of the Commission. The Secretary may 
set reasonable time limits for action by the Commission, but the 
Commission has exclusive jurisdiction over, and takes final action, if 
any, upon, such proposals. Although limited, this authority has proven 
to be valuable to past administrations as they attempt to implement a 
coherent energy policy.
  Thus, although DOE claims that its proposed legislation would make 
the FERC a fully independent agency, the proposed legislation retains 
the special authority given to the President by existing law. As a 
result, the proposed legislation has no practical effect. By taking the 
FERC off of DOE's books, 

[[Page S861]]
the bill would make the DOE budget appear to be smaller, but would not 
change the substantive relationship between DOE and FERC or save the 
Government money.
  Because I believe the proposed legislation achieves no substantive 
purpose, I will not introduce this legislation. However, I acknowledge 
receipt of the proposed legislation and ask that its text be printed in 
the Record as part of this statement.
  The text follows:

                             Proposed Bill

       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 ``Federal Energy Regulatory 
     Commission Act of 1995''.

     SEC. 2. TRANSFER OF THE FEDERAL ENERGY REGULATORY COMMISSION.

       The Federal Energy Regulatory Commission established by 
     section 204 and title IV of the Department of Energy 
     Organization Act (42 U.S.C. 7134, 7171-7177) is transferred 
     outside the Department of Energy. The Commission shall 
     continue to be an independent regulatory commission with the 
     same organization, functions, and jurisdiction as it had 
     prior to the effective date of this Act, except as is 
     otherwise provided in this Act.

     SEC. 3. AUTHORITY OF COMMISSION.

       (a) Except as is provided in subsection (b), there are 
     transferred to and vested in the Federal Energy Regulatory 
     Commission all functions and authority of the Secretary of 
     Energy and the Department of Energy under the--
       (1) Federal Power Act (16 U.S.C. 791a-825r),
       (2) Interstate Commerce Act (title 49, United States Code, 
     App.) related to transportation of oil by pipeline,
       (3) title IV of the Natural Gas Policy Act of 1978 (15 
     U.S.C. 3391-3394), and
       (4) Natural Gas Act (15 U.S.C. 717-717w).
       (b) The Secretary of Energy shall retain the authority--
       (1) under section 402(f) of the Department of Energy 
     Organization Act (42 U.S.C. 7172(f));
       (2) to initiate rulemaking proceedings before the Federal 
     Energy Regulatory Commission under section 403 of the 
     Department of Energy Organization Act (42 U.S.C. 7173); and
       (3) to intervene as a matter of right in Federal Energy 
     Regulatory Commission proceedings under section 405 of the 
     Department of Energy Organization Act (42 U.S.C. 7175).
       (c) After the effective date of this Act, the Federal 
     Energy Regulatory Commission shall not exercise authority or 
     jurisdiction under--
       (1) section 503(c) of the Department of Energy Organization 
     Act (42 U.S.C. 7193(c)), except for a remedial order or a 
     proposed remedial order pending before the Department or the 
     Commission on the effective date of this Act;
       (2) subsection 402 (d) and (e) of the Department of Energy 
     Organization Act (42 U.S.C. 7172 (d) and (e)), except for a 
     matter pending before the Commission on the effective date of 
     this Act, or which by that date has been assigned to the 
     Commission with its consent under section 402(e);
       (3) section 504(b) of the Department of Energy Organization 
     Act (42 U.S.C. 7194(b)), except for a review pending before 
     the Commission on the effective date of this Act; or
       (4) section 404 of the Department of Energy Organization 
     Act (42 U.S.C. 7174).
       (d) Section 3(c) of the Natural Gas Act (15 U.S.C. 717b(c)) 
     is amended by--
       (1) striking ``For purposes of subsection (a),'' and 
     inserting ``Subsection (a) shall not apply to'' and
       (2) striking all that follows ``trade in natural gas,'' and 
     inserting ``except to the extent provided by the President by 
     Executive Order.''.
       (e) Notwithstanding section 401(j) of the Department of 
     Energy Organization Act (42 U.S.C. 7171(j)), the Federal 
     Energy Regulatory Commission shall submit budget requests and 
     legislative recommendations directly to the Office of 
     Management and Budget.
       (f) The Inspector General for the Department of Energy 
     shall serve as the Inspector General for the Federal Energy 
     Regulatory Commission. The Federal Energy Regulatory 
     Commission shall reimburse the Department of Energy Inspector 
     General for the cost of annual audits of Commission financial 
     statements that the Department Inspector General performs or 
     contracts with another person to perform in the course of 
     fulfilling the duties as Inspector General of the Commission.

     SEC. 4. EFFECTIVE DATE.

       This Act takes effect on October 1, 1996.

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