[Congressional Record Volume 142, Number 33 (Tuesday, March 12, 1996)]
[Senate]
[Pages S1856-S1864]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MURKOWSKI (by request):
  S. 1605. A bill to amend the Energy Policy and Conservation Act to 
manage the strategic petroleum reserve more effectively and for other 
purposes; to the Committee on Energy and Natural Resources.


     the energy policy and conservation act amendments act of 1996

 Mr. MURKOWSKI. Mr. President, pursuant to an executive 
communication referred to the Committee on Energy and Natural 
Resources, at the request of the Secretary of Energy, I send to the 
desk a bill to amend and extend certain authorities in the Energy 
Policy and conservation Act which either have expired or will expire 
June 30, 1996.
  Although I do not necessarily agree with all of the provisions of 
this bill, the reauthorization of the programs covered by the 
legislation, including the strategic petroleum reserve, is an important 
issue that must be fully considered by the committee and the Senate. 
Thus, I introduce this draft legislation today and ask unanimous 
consent that the executive communication and the bill be printed in the 
Record
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1605

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, That this 
     Act may be cited as the ``Energy Policy and Conservation Act 
     Amendments Act''.
       Sec. 2. Section 2 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6201) is amended--
       (1) 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
       (2) by striking paragraphs (3) and (6).
       Sec. 3. 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),
       (b) in section 105 (42 U.S.C. 6213)--
       (1) by amending subsection (a) to read as follows--
       ``(a) The Secretary of the Interior shall prohibit the 
     bidding for any right to develop crude oil, natural gas, and 
     natural gas liquids on any lands located on the Outer 
     Continental Shelf by any person if more than one major oil 
     company, more than one affiliate of a major oil company, or a 
     major oil company and any affiliate of a major oil company, 
     has or have a significant ownership interest in that person, 
     when the Secretary determines prior to any lease sale that 
     this bidding would adversely affect competition or the 
     receipt of fair market value.'', and
       (2) by striking subsections (c) and (e).
       (c) by striking section 106 (42 U.S.C. 6214),
       (d) in section 151 (42 U.S.C. 6231)--
       (1) in subsection (a) by striking ``limited'' and ``short-
     term'', and
       (2) by amending subsection (b) 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 
     or to carry out obligations of the United States under the 
     international energy program.'',
       (e) in section 152 (42 U.S.C. 6232)--
       (1) by striking paragraphs (1) and (7), and
       (2) in paragraph (11) by striking ``, the Early Storage 
     Reserve, and the Regional Petroleum Reserve ``, and by adding 
     a period after Industrial Petroleum Reserve.
       (f) by striking section 153 (42 U.S.C. 6233),
       (g) 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, acting through the Strategic Petroleum 
     Reserve Office and in accordance with this part, shall 
     exercise authority over the development, operation, and 
     maintenance of the Reserve.'', and
       (3) by striking subsections (c), (d), and (e).
       (h) by striking section 155 (42 U.S.C. 6235),
       (i) in section 156(b) (42 U.S.C. 6236(b)), by striking ``To 
     implement the Early Storage Reserve Plan or the Strategic 
     Petroleum Reserve Plan which has taken effect pursuant to 
     section 159(a), the'' and inserting ``The''.
       (j) by striking section 157 (42 U.S.C. 6237),
       (k) by striking section 158 (42 U.S.C. 6238),
       (l) by amending the heading for section 159 (42 U.S.C. 
     6239) to read, ``Development, Operation, and Maintenance of 
     the Reserve'',
       (m) 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 
     storage and related facilities acquired under this part, 
     under such terms and conditions as the Secretary may deem 
     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) require an importer of petroleum products or refiner 
     to acquire and to store and maintain, in readily available 
     inventories, petroleum products in the Industrial Petroleum 
     Reserve, under section 156;
       ``(9) require the storage of petroleum products in the 
     Industrial Petroleum Reserve, under section 156, on terms 
     that the Secretary specifies, in storage facilities owned and 
     controlled by the United States or in storage facilities 
     other than those owned by the United States if those 
     facilities are subject to audit by the United States;
       ``(10) require the maintenance of the Industrial Petroleum 
     Reserve;
       ``(11) 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
       ``(12) to the extent provided in an Appropriations Act, and 
     not withstanding section 649(b) of the Department of Energy 
     Organization Act (42 U.S.C. 7259(b)), the Secretary is

[[Page S1857]]

     authorized to store in unused SPR facilities by lease or 
     otherwise petroleum product owned by a foreign government or 
     its representative, petroleum product stored under this 
     paragraph is not part of the Reserve, is not subject to part 
     C of this title, and notwithstanding any provision of this 
     Act, may be exported from the United States.''.
       (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) When the Secretary determines that a 750,000,000 
     barrel inventory can reasonably be expected to be reached in 
     the Reserve within 5 years, a plan for expansion will be 
     submitted to the Congress.'', and
       (6) by amending subsection (l) to read as follows:
       ``(l) During any period in which drawdown and distribution 
     are being implemented, the Secretary may issue rules, 
     regulations, or orders to implement the drawdown and 
     distribution of the Strategic Petroleum Reserve 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).
       (n) in section 160 (42 U.S.C. 6240)--
       (1) in subsection (a), by striking all before the dash and 
     inserting the following:
       ``(a) To the extent funds are available under section 
     167(b) (2) and (3) and for the purposes of implementing the 
     Strategic Petroleum Reserve, the Secretary may acquire place 
     in storage, transport, or exchange.''.
       (2) in subsection (b), by striking ``including the Early 
     Storage Reserve and the Regional Petroleum Reserve'' and 
     paragraph (2), and
       (3) by striking subsections (c), (d), (e), and (g).
       (o) in section 161 (42 U.S.C. 6241)--
       (1) by striking subsections (b) and (c),
       (2) by amending subsection (d)(1) to read as follows:
       ``(d)(1) No drawdown and distribution of the Strategic 
     Petroleum Reserve may be made unless the President has found 
     drawdown and distribution is required by a severe energy 
     supply interruption or by obligations of the United States 
     under the international energy program.'',
       (3) by amending subsection (e) to read as follows:
       ``(e)(1) The Secretary shall sell any 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 the Secretary considers 
     proper, 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 
     distribution under this Section.'', and
       (4) in subsection (g)--
       (A) in paragraph (1), by striking ``Distribution Plan'' and 
     inserting ``distribution procedures'',
       (B) by striking paragraphs (2) and (6), and
       (C) in paragraph (4), by striking ``90'' and inserting 
     ``95''.
       (p) by striking section 164 (42 U.S.C. 6244),
       (q) by amending section 165 (42 U.S.C. 6245) to read as 
     follows--
       ``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 in the Reserve;
       ``(2) an estimate of the schedule and cost to complete 
     planned equipment upgrade or capital investment in the 
     Reserve, including those 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 such remedial actions;
       ``(4) a description of current withdrawal and distribution 
     rates and capabilities, and an identification of any 
     operational or other limitations on such rates and 
     capabilities;
       ``(5) an identification of purchases of petroleum 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, and
       ``(10) any recommendation for supplemental legislation or 
     policy or operational changes the Secretary considers 
     necessary and appropriate to implement this part.''.
       (r) in section 166 (42 U.S.C. 6246) by striking all after 
     ``appropriated'' and inserting ``the funds necessary to 
     implement this part.'',
       (s) 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'',
       (B) by striking paragraph (1), and
       (C) in paragraph (2), by striking ``after fiscal year 
     1982''.
       (t) in section 171 (42 U.S.C. 6249)--
       (1) by amending subparagraph (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 product proposed to be stored, in the 
     Reserve, and an estimate of the proposed benefits.''.
       (u) in section 172 (42 U.S.C. 6249a), by striking 
     subsections (a) and (b),
       (v) by striking section 173 (42 U.S.C. 6249b), and
       (w) in section 181 (42 U.S.C. 6251), by striking ``June 30, 
     1996'' each time it appears and inserting ``September 30, 
     2001''.
       Sec. 4. 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),
       (b) by striking ``section 252(l)(1)'' in section 251(e)(1) 
     (42 U.S.C. 6271(e)(1)) and inserting ``section 252(k)(1)'',
       (c) in section 252(42 U.S.C. 6272)--
       (1) in subsections (a)(1) and (b), by striking ``allocation 
     and information provisions of the international energy 
     program'' and inserting ``international emergency response 
     provisions'',
       (2) in subsection (d)(3), by striking ``known'' and 
     inserting after ``circumstances'' ``known at the time of 
     approval'',
       (3) in subsection (e)(2) by striking ``shall'' and 
     inserting ``may'',
       (4) in subsection (f)(2) by inserting ``voluntary agreement 
     or'' after ``approved'',
       (5) 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.'',
       (6) in subsection (i) by inserting ``annually, or'' after 
     ``least'' and by inserting ``during an international energy 
     supply emergency'' after ``months'',
       (7) 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
       (8) 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.''.
       (d) by adding at the end of section 256(h). ``There are 
     authorized to be appropriated for fiscal years 1996 through 
     2001, such sums as may be necessary.'',
       (e) by striking Part C (42 U.S.C. 271 through 272), and
       (f) in section 281 (42 U.S.C. 6285), by striking ``June 30, 
     1996'' each time it appears and inserting ``September 30, 
     2001''.
       Sec. 5. (a) Title III of the energy Policy and Conservation 
     Act (42 U.S.C. 6291-6325 and 6361-6374) is amended--
       (1) in section 365(f) (42 U.S.C. 6325(f)) by amending 
     paragraph (1) to read as follows:
       ``(1) Except as provided in paragraph (2), for the purpose 
     of carrying out this part, there are authorized to be 
     appropriated $24,650,000 million for fiscal year 1996 and for 
     fiscal years 1997 through 2001, such sums as may be 
     necessary.'', and
       (2) section 397 (42 U.S.C. 6371f) is amended to read as 
     follows: ``For the purpose of carrying out this part, there 
     are authorized $26,849,000 million to be appropriated for 
     fiscal year 1996 and for fiscal years 1997 through 2001, such 
     sums as may be necessary.''.
       (b) 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 fiscal years 1996 through 2001, to remain 
     available until expended.''.
       Sec. 6. Title V of the Energy Policy and Conservation Act 
     (42 U.S.C. 6381-6422) is amended--
       (1) by striking section 507 (42 U.S.C. 6385), and
       (2) by striking section 522 (42 U.S.C. 6392).
                                                                    ____


                           Section-by-Section


           section 2. amendments to the statement of purposes

       Section 2 of the bill would amend section 2 of the Energy 
     Policy and Conservation Act (EPCA).
       Paragraph (1) would strike language referring to standby 
     energy conservation and rationing authorities in title II, 
     part A, which expired June 30, 1985.

[[Page S1858]]

       Paragraph (2) would strike paragraphs (3) and (6) of the 
     Statement of Purposes to reflect the bill's elimination of 
     sections 102 (incentives to develop underground coal mines) 
     and 106 (Production of oil or gas at the maximum efficient 
     rate and temporary emergency production rate).


                section 3. amendments to title i of epca

       Subsection (a) would strike section 102 of EPCA.
       Section 102 of EPCA provides a loan guaranty program to 
     encourage the opening of underground coal mines. Coal supply, 
     however, is abundant, and the loan guarantee program has been 
     inactive since the early 1980s. Because there is no current 
     or foreseeable need for the program authorized by section 102 
     of EPCA, it is appropriate to delete the section.
       Subsection (b) would amend section 105(a) of EPCA by 
     providing that the Secretary of the Interior may allow joint 
     bidding by major oil companies unless the Secretary 
     determines that this bidding would adversely affect 
     competition or the receipt of fair market value. If the 
     Secretary decides to prohibit joint bidding, it may be done 
     without issuing a rule, as previously required. This change 
     would render unnecessary the exemption process required in 
     section 105(c). The report required in section 105(e) has 
     been issued to Congress.
       Subsection (c) would strike section 106 of EPCA.
       Section 106 of EPCA directs the Secretary of the Interior 
     to determine the maximum efficient rate of production and the 
     temporary emergency rate of production, if any, for each 
     field on Federal lands which produces or is capable of 
     producing significant volumes of crude oil or natural gas. 
     The President may then require production at those rates, and 
     the owner may sue for damages if economic loss is incurred.
       Subsection (d) would amend section 151 of EPCA to clarify 
     the policy for establishing a strategic reserve of petroleum 
     products, and delete references to the Early Storage Reserve, 
     the objectives of which have been achieved.
       Subsection (e) would amend section 152 of EPCA by deleting 
     the definition of ``Early Storage Reserve'' and ``Regional 
     Petroleum Reserve.'' Requirements for and all references to 
     these parts of the program would be deleted by this bill.
       Subsection (f) would strike section 153 of EPCA and amend 
     section 154 to reflect the transfer of the Strategic 
     Petroleum Reserve Office from the Federal Energy 
     Administration to the Department of Energy.
       Subsection (g) would amend section 154 of EPCA to eliminate 
     requirements for a Strategic Petroleum Reserve Plan, and for 
     specified fill rates and schedules, but would retain 
     authority for a one billion barrel Reserve.
       The Strategic Petroleum Reserve Plan is largely obsolete 
     because the sites that are described for development in the 
     Plan have now been developed. The need for the Drawdown and 
     Distribution Plan, contained in Plan Amendment 4, is 
     eliminated by the amendment to section 159, which would 
     codify competitive sales as the drawdown and distribution 
     policy and elimination allocation as a method of 
     distribution.
       Subsection (h) would delete section 155 of EPCA, which 
     requires the establishment of an Early Storage Reserve. All 
     of the volumetric goals for the Early Storage Reserve have 
     been accomplished, and there is no longer a distinction 
     between the Early Storage Reserve and any other facilities or 
     petroleum that make up the Strategic Petroleum Reserve.
       Subsection (i) would amend section 156(b) of EPCA on the 
     Industrial Petroleum Reserve authority to remove references 
     to the Early Storage Reserve and the Strategic Petroleum 
     Reserve Plan, which are being deleted by other amendments.
       Subsection (j) would delete section 157, Regional Petroleum 
     Reserve. Section 157 of the Act requires the establishment of 
     regional petroleum reserve of refined products in Federal 
     Energy Administration regions that are dependent upon imports 
     for more than 20 percent of their consumption. The Department 
     determined to substitute crude oil for products and also 
     determined that the Gulf Coast area is near enough to all 
     areas to provide protection.
       Subsection (k) would delete 158 of EPCA.
       Section 158 requires reports to Congress on Utility 
     Reserves, Coal Reserves, and Remote Crude Oil and Natural Gas 
     Reserves within six months of passage of the original Act. 
     This requirement has been fulfilled.
       Subsection (l) would amend the heading for section 159 of 
     EPCA to reflect amendment to its contents.
       Subsection (m) would amend section 159 of EPCA.
       Paragraph (1) would eliminate subsections (a) through (e) 
     of section 159 of EPCA, which require Congressional review of 
     the Strategic Petroleum Reserve Plan and provide for Plan 
     amendments, to reflect the deletion of the requirement for 
     a Strategic Petroleum Reserve Plan in subsection (g) of 
     this amendment.
       Paragraph (2) would amend subsection 159(f) of EPCA to 
     eliminate references to the Strategic Petroleum Reserve Plan 
     and the Early Storage Reserve Plan. This amendment also would 
     clarify and make explicit the Secretary's discretionary 
     authority to lease, sell, or otherwise dispose of 
     underutilized Strategic Petroleum Reserve facilities. If 
     necessary or appropriate, lease terms could exceed the five-
     year limitation of section 649(b) of the Department of Energy 
     Organization Act. In addition, the Secretary is given 
     authority to lease under-utilized Strategic Petroleum Reserve 
     facilities to foreign governments or their representatives. 
     These leases also may exceed the five-year limitation of 
     section 649(b).
       Paragraph (3) would remove references in subsection (g) of 
     section 159 of EPCA to the Strategic Petroleum Reserve Plan.
       Paragraph (4) would delete subsections 159(h) and (i) of 
     EPCA. Subsection 159(h) deals with interim storage facilities 
     which provide for storage of petroleum prior to the creation 
     of Government-owned facilities. That authority is no longer 
     needed since the Reserve has 592 million barrels of oil in 
     storage and significant unutilized storage capacity 
     Subsection 159(i) required the submission of a report to 
     Congress within 18 months after enactment of the 1990 EPCA 
     Amendments on the results of contract negotiations conducted 
     pursuant to part C of EPCA. The Department did not conclude 
     any contracts pursuant to part C and the reporting provision 
     has expired by its own terms.
       Paragrah (5) would amend subsection 159(j) of the EPCA to 
     reflect the elimination of the statutory requirement for a 
     Strategic Petroleum Reserve Plan by amendment of section 154 
     of the Act. This amendment would continue the requirement for 
     submission to Congress of proposed plans for expansion of 
     storage capacity following a determination by the Secretary 
     that the Reserve can reasonably be expected to be filed to 
     750 million barrels within five years. This reflects the 
     uncertain financing situation for filling available capacity 
     in the Reserve and makes planning for capacity expansion 
     beyond current capacity premature.
       Paragraph (6) would amend subsection 159(l) to eliminate 
     the reference to the Distribution Plan, but would retain the 
     Secretary's authority, during drawdown and distribution of 
     the Reserve, to promulgate regulations necessary to the 
     drawdown and distribution without regard to rulemaking 
     requirements in section 523 of this Act and section 501 of 
     the Department of Energy Organization Act.
       Subsection (n) would amend section 160 of EPCA.
       Paragraph (l) would amend subsection 160(a) of EPCA to 
     provide that the Secretary's authority to acquire petroleum 
     products for the Strategic Petroleum Reserve is contingent on 
     the availability of funds.
       Paragraph (2) would amend subsection 160(b) of EPCA by 
     striking the references to the Early Storage Reserve and the 
     Regional Petroleum Reserve, which would be eliminated by this 
     bill.
       Paragraph (3) would strike subsections 160 (c), (d), (e), 
     and (g) of EPCA.
       Subsection 160(c) of EPCA requires minimum fill rates. 
     These requirements have proved unrealistic given changes in 
     oil markets and availability of financing. The proposed 
     amendment gives the Secretary flexibility to fill the Reserve 
     contingent upon the availability of funds.
       Subsection 160(d) links sales authority for the United 
     States' share of crude oil at Naval Petroleum Reserve 
     Numbered 1 to a fill level of 750,000,000 barrels or a fill 
     rate of 75,000 barrel per day. The requirement for Strategic 
     Petroleum Reserve fill is dependent on the availability of 
     financing for Strategic Petroleum Reserve acquisition, and 
     the logistics of moving Naval Petroleum Reserve Numbered 1 
     crude oil to the Strategic Petroleum Reserve have proved to 
     be very problematic.
       Subsection 160(e) describes various exceptions to the 
     linkage between the Naval Petroleum Reserve Numbered 1 crude 
     oil sales authority and the Strategic Petroleum Reserve fill 
     rate, which would be eliminated by this bill.
       Subsection 160(g) requires a refined petroleum product 
     reserve test in fiscal years 1992-94, and a report to 
     Congress. The test was not conducted due to insufficient 
     appropriations in fiscal year 1992 and fiscal year 1993 and 
     was waived in fiscal year 1994. The required report has been 
     submitted.
       Subsection (o) would amend section 161 of EPCA.
       Paragraph (1) would strike subsections 161 (b) and (c) of 
     EPCA, because they refer to both the Strategic Petroleum 
     Reserve Plan and the Early Storage Reserve Plan which would 
     be eliminated by this bill.
       Paragraph (2) would amend subsection 161(d)(1) of EPCA by 
     eliminating the references to the Distribution Plan contained 
     in the Strategic Petroleum Reserve Plan but would not change 
     the existing conditions for Presidential decision to draw 
     down and distribute the Reserve.
       Paragraph (3) would amend subsection 161(e) of EPCA to 
     require the Secretary to distribute oil from the Reserve via 
     a public competitive sale to the highest qualified bidder. 
     The amendment eliminates the Secretary's allocation 
     authority.
       The amendment also would make explicit the authority of the 
     Secretary to cancel a sale in progress. This authority would 
     enable the Secretary to respond to inordinately low bids, 
     changes in market conditions, or a sudden reversal in the 
     nature of the shortage or emergency.
       Paragraph (4) would amend subsection 161(g) of EPCA.
       Subparagraph (4)(A) would amend subsection 161(g)(1) of 
     EPCA to substitute ``distribution procedures'' for 
     ``Distribution Plan''.
       Subparagraph (4)(B) would strike subsection 161(g)(2) of 
     EPCA because it refers to

[[Page S1859]]

     the Distribution Plan eliminated by the bill, and subsection 
     161(g)(6) of EPCA because it refers to the minimum required 
     fill rate eliminated by the bill.
       Subparagraph (4)(C) would amend section 161(g)(4) of EPCA 
     to prevent the Secretary from selling oil during a test sale 
     of the Strategic Petroleum Reserve at a price less than ``95 
     percent'' of the sales price of comparable crude oil being 
     sold in the same area at the time the Secretary is offering 
     crude oil for sale rather than ``90 percent'' currently 
     stipulated in this section. Since 10 percent of current 
     prices upward of $1.50 per barrel, the Department believes a 
     smaller range of difference in price would protect the 
     Department from selling the oil below normal variations in 
     market prices.
       Subection (p) would strike section 164 of EPCA. Section 164 
     of EPCA required a study of the use of Naval Petroleum 
     Reserve No 4 jointly by the Secretaries of Energy, the 
     Interior and the Navy, with a report to Congress within 180 
     days of the passage of the original Act. The study and report 
     were completed.
       Subsection (q) would amend section 165 of EPCA by deleting 
     the requirement for quarterly reports on the operation of the 
     Strategic Petroleum Reserve, and requiring instead an annual 
     report consistent with other parts of this amendment. 
     Quarterly reports, considered important during the early 
     growth period of the Strategic Petroleum Reserve to inform 
     the Congress of progress in construction and the rate of 
     fill, are now unnecessary, and their deletion would save 
     administrative costs. Subsection (q) would also eliminate 
     references to the Strategic Petroleum Reserve Plan, the 
     Distribution Plan, and the Early Storage Reserve, which are 
     eliminated by the bill and would change some of the 
     requirements for information to be included in the annual 
     report to reflect more accurately the current status of the 
     Reserve.
       Subsection (r) would amend section 166 of EPCA to authorize 
     appropriations necessary to implement the Strategic Petroleum 
     Reserve, and to delete year specific authorizations for the 
     early years of the Reserve.
       Subsection (s) would amend section 167 of EPCA to clarify 
     that funds generated by test sales will be deposited in the 
     SPR Petroleum Account. The amendment would remove language 
     specific to fiscal year 1982 which limits the amount of money 
     in the SPR Petroleum Account that year. The amendment also 
     would delete reference to the use of funds for interim 
     storage, which will not be needed because the permanent 
     facilities are complete for the storage of 750 million 
     barrels of oil.
       Subsection (t) would amend section 171 of EPCA to eliminate 
     the reference to a requirement for information identical to 
     that in section 154(e) of EPCA. Section 154(e) describes 
     information that is included in the Strategic Petroleum 
     Reserve Plan, which is deleted in this legislation. Instead, 
     when the Secretary notifies the Congress that the Department 
     intends to contract for storage of petroleum under part C, 
     the notification will include a requirement for information 
     more pertinent to the contract.
       Subsection (u) would amend section 172 of EPCA.
       Paragraph (1) would delete subsections (a) and (b). The 
     exemption in subsection (a) from the requirement for a 
     Strategic Petroleum Reserve Plan amendment is no longer 
     necessary because the bill eliminates the requirement for 
     Plan amendments. Subsection (b) provides that, for purposes 
     of meeting the fill rate requirement in section 160 (d)(1) of 
     EPCA part C contract oil which is removed from the Reserve at 
     the end of the contract agreement shall be considered part of 
     the Reserve until the beginning of the fiscal year following 
     the fiscal year in which the oil is removed. This subsection 
     is unnecessary since the requirement for specific fill rates 
     is deleted by amendment of section 160 of the Act.
       Subsection (v) would delete section 173 of EPCA which 
     requires congressional review and therefore, public scrutiny 
     of the details of contracts even though no implementing 
     legislation is needed, and requires a 30-day ``lie before'' 
     period before the contract can go into effect. This 
     requirement is a substantial impediment to acquisition of oil 
     for the Reserve by ``leasing'' and other alternative 
     financing methods authorized by EPCA, part C.
       Subsection (w) would amend section 181 of EPCA by extending 
     the expiration date of title I, parts B and C from June 30, 
     1996 to September 30, 2001.
       Public Law 103-406 extended the expiration date to June 30, 
     1996.


               SECTION 4. AMENDMENTS TO TITLE II OF EPCA

       Subsection (a) would strike part A of EPCA title II, which 
     contains the authorities for gasoline rationing and other 
     mandatory energy conservation measures which expired on July 
     1, 1985.
       Subsection (b) would amend section 251(e)(1) by striking 
     section ``252(l)(l)'' and inserting in lieu thereof 
     ``252(k)(l).''
       Subsection (c) would amend section 252 of EPCA, which makes 
     available to United States oil companies a limited antitrust 
     defense and breach of contract defense for actions taken to 
     carry out a voluntary agreement or plan of action to 
     implement the ``allocation and information provisions'' of 
     the Agreement on an International Energy Program 
     (``IEP''). These limited defenses are now available only 
     in connection with the companies' participation in 
     planning for and implementation of the IEP's emergency oil 
     sharing and information programs. The amendment would 
     extend the section 252 antitrust defense (but not the 
     breach of contract defense) to U.S. companies when they 
     assist the International Energy Agency (``IEA'') in 
     planning for and implementing coordinated drawdown of 
     government-owned or government-controlled petroleum 
     stocks. In 1984, largely at the urging of the United 
     States, the IEA's Governing Board adopted a decision on 
     ``Stocks and Supply Disruptions'' which established a 
     framework for coordinating the drawdown of member 
     countries' government-owned and government-controlled 
     petroleum stocks in those oil supply disruptions that 
     appear capable of causing severe economic harm, whether or 
     not sufficient to activate the IEP emergency oil sharing 
     and information programs. During the 1990-91 Persian Gulf 
     crisis the IEA successfully tested the new coordinated 
     stockdraw policy.
       Paragraph 1 would amend subsections 252(a) and (b) of EPCA. 
     These sections would be amended by substituting the term 
     ``international emergency response provisions'' for the term 
     ``allocation and information provisions of the international 
     energy program.'' The new term establishes the scope of oil 
     company activities covered by the antitrust defense and 
     includes actions to assist the IEA in implementing 
     coordinated drawdown of petroleum stocks.
       Paragraph 2 would amend paragraph 252(d)(3) of EPCA to 
     clarify that a plan of action submitted to the Attorney 
     General for approval must be as specific in its description 
     of proposed substantive actions as is reasonable ``in light 
     of circumstances known at the time of approval'' rather than 
     ``in light of known circumstances.''
       Paragraph 3 would amend paragraph 252(e)(2) of EPCA to give 
     the Attorney General flexibility in promulgating rules 
     concerning the maintenance of records by oil companies 
     related to the development and carrying out of voluntary 
     agreements and plans of action.
       Paragraph 4 would amend paragraph 252(f)(2) of EPCA to 
     clarify that the antitrust defense applies to oil company 
     actions taken to carry out an approved voluntary agreement as 
     well as an approved plan of action.
       Paragraph 5 would amend subsection 252(h) of EPCA to strike 
     the reference to section 708(A) of the Defense Production Act 
     of 1950, which was repealed by Public Law 102-558 (October 
     28, 1992), and the reference to the Emergency Petroleum 
     Allocation Act of 1973, which expired in 1981.
       Paragraph 6 would amend subsection 252(i) of EPCA to 
     require the Attorney General and the Federal Trade Commission 
     to submit reports to Congress and to the President on the 
     impact of actions authorized by section 252 on competition 
     and on small businesses annually rather than every six 
     months, except during an ``international energy supply 
     emergency,'' when the reports would be required every six 
     months.
       Paragraph 7 would amend paragraph 252(k)(2) of EPCA by 
     substituting a definition of the term ``international 
     emergency response provisions'' for the present definition of 
     ``allocation and information provisions of the international 
     energy program.'' The new term, which establishes the scope 
     of company actions covered by the antitrust defense, covers 
     (A) the allocation and information provisions of the IEP and 
     (B) emergency response measures adopted by the IEA Governing 
     Board for the coordinated drawdown of stocks of petroleum 
     products held or controlled by governments and complementary 
     actions taken by governments during an existing or impending 
     international oil supply disruption, whether or not 
     international allocation of petroleum products is required by 
     the IEP.
       Paragraph 8 would amend subsection 252(l) of EPCA to make 
     clear that the antitrust defense does not extend to 
     international allocation of petroleum unless the IEA's 
     Emergency Sharing System has been activated.
       Subsection (d) would amend subsection 256(h) of EPCA to 
     authorize appropriations for fiscal years 1996 through 2001 
     for the activities of the interagency working group and 
     interagency working subgroups established by section 256 of 
     EPCA to promote exports of renewable energy and energy 
     efficiency products and services.
       Subsection (e) would strike EPCA part C, which was added to 
     the EPCA by the Energy Emergency Preparedness Act of 1982 and 
     which required the submission to Congress of reports on 
     energy emergency legal authorities and response procedures. 
     The reporting requirement was fulfilled in 1982.
       Subsection (f) would amend section 281 of EPCA by extending 
     the expiration date of title II from June 30, 1996 to 
     September 30, 2001.
       Public Law 103-406 extended the expiration date to June 30, 
     1996.


               section 5. amendments to title iii of epca

       Subsection (a) would amend sections 365 and 397 of EPCA, 
     which provide authorization for appropriations for fiscal 
     years 1991, 1992, and 1993 for State Energy Conservation 
     programs and the Energy Conservation Program for Schools and 
     Hospitals. The amendment would authorize appropriations of 
     $24.651 million for section 365 and $26.849 million for 
     section 397 for fiscal year 1996 and such funds as may be 
     necessary for fiscal years 1997 through 2001.
       Subsection (b) would amend section 400BB to extend the 
     authorization for the appropriation of the Alternative Fuels 
     Truck

[[Page S1860]]

     Commercial Application Program to fiscal year 2001.


                section 6. amendments to title v of epca

       Paragraph 1 would delete section 507 of the Act, which 
     provides that the Energy Information Administration must 
     continue to gather the same data on pricing, supply and 
     distribution of petroleum products as it did on September 1, 
     1981. This section hinders the flexibility of the 
     Administrator to collect information that is currently 
     meaningful. There is no reason to have a statutory 
     prohibition against modifying and amending the types of data 
     collected.
       Paragraph 2 would delete section 522 of the Act, which 
     provides conflict of interest disclosure requirements for the 
     Federal Energy Administration. This section was superseded by 
     the Department of Energy Organization Act.
                                                                    ____



                                          Secretary of Energy,

                                 Washington, DC, October 10, 1995.
     Hon. Al Gore,
     President of the Senate,
     Washington, DC.
       Dear Mr. President: Enclosed is a legislative proposal 
     cited as the ``Energy Policy and Conservation Act Amendments 
     Act of 1995.'' This proposal would amend and extend certain 
     authorities in the Energy Policy and Conservation Act (Act) 
     which either have expired or will expire June 30, 1996. Not 
     all sections of the current act are proposed for extension.
       The Act was passed in 1975. Title I authorizes the creation 
     and maintenance of the Strategic Petroleum Reserve that would 
     mitigate shortages during an oil supply disruption. Title II 
     contains authorities essential for meeting key United States 
     obligations to the International Energy Agency. This is our 
     method of coordinating energy emergency response programs 
     with other countries. The current antitrust defense available 
     to American companies participating in the International 
     Energy Agency would be clarified by the proposed legislation. 
     Titles I and II are proposed for extension beyond their June 
     30, 1996 expiration date.
       Title III contains authorities for certain energy 
     efficiency and conservation programs. The authorization of 
     appropriations has expired for these programs. These 
     successful and very cost beneficial programs, designed to 
     encourage and subsidize demand reducing investment and 
     manufacturing, are proposed for extension without amendment. 
     Title V contains residual provisions from the Federal Energy 
     Administration pertaining to energy data bases and 
     information, and general and administrative matters. Those 
     provisions which hinder the flexibility of the Administrator 
     of the Energy Information Administration to collect currently 
     meaningful information are proposed for deletion.
       The proposed legislation would extend the Strategic 
     Petroleum Reserve, participation in the International Energy 
     Program, and conservation and efficiency authorities to 
     September 30, 2001. It would revise or delete certain 
     provisions which are outdated or unnecessary.
       The proposed legislation and a sectional analysis are 
     enclosed.
       The Office of Management and Budget advises that enactment 
     of this proposal would be in accord with the program of the 
     President. We look forward to working with the Congress 
     toward enactment of this legislation.
           Sincerely,
                                                 Hazel R. O'Leary.
       Enclosures.

                           Section-by-Section


           section 2. amendments to the statement of purposes

       Section 2 of the bill would amend section 2 of the Energy 
     Policy and Conservation Act (EPCA).
       Paragraph (1) would strike language referring to standby 
     energy conservation and rationing authorities in title II, 
     part A, which expired June 30, 1985.
       Paragraph (2) would strike paragraphs (3) and (6) of the 
     Statement of Purposes to reflect the bill's elimination of 
     sections 102 (incentives to develop underground coal mines) 
     and 106 (Production of oil or gas at the maximum efficient 
     rate and temporary emergency production rate).


                section 3. amendments to title i of epca

       Section (a) would strike section 102 of EPCA.
       Section 102 of EPCA provides a loan guaranty program to 
     encourage the opening of underground coal mines. Coal supply, 
     however, is abundant, and the loan guarantee program has been 
     inactive since the early 1980s. Because there is no current 
     or foreseeable need for the program authorized by section 102 
     of EPCA, it is appropriate to delete the section.
       Section (b) would amend section 105(a) of EPCA by providing 
     that the Secretary of the Interior may allow joint bidding by 
     major oil companies unless the Secretary determines that this 
     bidding would adversely affect competition or the receipt of 
     fair market value. If the Secretary decides to prohibit joint 
     bidding, it may be done without issuing a rule, as previously 
     required. This change would render unnecessary the exemption 
     process required in section 105(c). The report required in 
     section 105(e) has been issued to Congress.
       Section (c) would strike section 106 of EPCA.
       Section 106 of EPCA directs the Secretary of the Interior 
     to determine the maximum efficient rate of production and the 
     temporary emergency rate of production, if any, for each 
     field on Federal lands which produces or is capable of 
     producing significant volumes of crude oil or natural gas. 
     The President may then require production at those rates, and 
     the owner may sue for damages if economic loss is incurred.
       Subsection (d) would amend section 151 of EPCA to clarify 
     the policy for establishing a strategic reserve of petroleum 
     products, and delete references to the Early Storage Reserve, 
     the objectives of which have been achieved.
       Subsection (e) would amend section 152 of EPCA by deleting 
     the definition of ``Early Storage Reserve'' and ``Regional 
     Petroleum Reserve.'' Requirements for and all references to 
     these parts of the program would be deleted by this bill.
       Subsection (f) would strike section 153 of EPCA and amend 
     section 154 to reflect the transfer of the Strategic 
     Petroleum Reserve Office from the Federal Energy 
     Administration to the Department of Energy.
       Subsection (g) would amend section 154 of EPCA to eliminate 
     requirements for a Strategic Petroleum Reserve Plan, and for 
     specified fill rates and schedules, but would retain 
     authority for a one billion barrel Reserve.
       The Strategic Petroleum Reserve Plan is largely obsolete 
     because the sites that are described for development in the 
     Plan have now been developed. The need for the Drawdown and 
     Distribution Plan, contained in Plan Amendment 4, is 
     eliminated by the amendment to section 159, which would 
     codify competitive sale as the drawdown and distribution 
     policy and eliminate allocation as a method of distribution.
       Subsection (h) would delete section 155 of EPCA, which 
     requires the establishment of an Early Storage Reserve. All 
     of the volumetric goals for the Early Storage Reserve have 
     been accomplished, and there is no longer a distinction 
     between the Early Storage Reserve and any other facilities or 
     petroleum that make up the Strategic Petroleum Reserve.
       Subsection (i) would amend section 156(b) of EPCA on the 
     Industrial Petroleum Reserve authority to remove references 
     to the Early Storage Reserve and the Strategic Petroleum 
     Reserve Plan, which are being deleted by other amendments.
       Subsection (j) would delete section 157, Regional Petroleum 
     Reserve. Section 157 of the Act requires the establishment of 
     regional petroelum reserve of refined products in Federal 
     Energy Administration regions that are dependent upon imports 
     for more than 20 percent of their consumption. The Department 
     determined to substitute crude oil for products and also 
     determined that the Gulf Coast area is near enough to all 
     areas to provide protection.
       Subsection (k) would delete 158 of EPCA.
       Section 158 requires reports to Congress on Utility 
     Reserves, Coal Reserves, and Remote Crude Oil and Natural Gas 
     Reserves within six months of passage of the original Act. 
     This requirement has been fulfilled.
       Subsection (l) would amend the heading for section 159 of 
     EPCA to reflect amendment to its contents.
       Subsection (m) would amend section 159 of EPCA.
       Paragraph (l) would eliminate subsections (a) through (e) 
     of section 159 of EPCA, which require Congressional review of 
     the Strategic Petroleum Reserve Plan and provide for Plan 
     amendments, to reflect the deletion of the requirement for 
     a Strategic Petroleum Reserve Plan in subsection (g) of 
     this amendment.
       Paragraph (2) would amend subsection 159 (f) of EPCA to 
     eliminate references to the Strategic Petroleum Reserve Plan 
     and the Early Storage Reserve Plan. This amendment also would 
     clarify and make explicit the Secretary's discretionary 
     authority to lease, sell, or otherwise dispose of 
     underutilized Strategic Petroleum Reserve facilities. If 
     necessary or appropriate, lease terms could exceed the five-
     year limitation of section 649(b) of the Department of Energy 
     Organization Act. In addition, the Secretary is given 
     authority to lease under-utilized Strategic Petroleum Reserve 
     facilities to foreign governments or their representatives. 
     These leases also may exceed the five-year limitation of 
     section 649(b).
       Paragraph (3) would remove references in subsection (g) of 
     section 159 of EPCA to the Strategic Petroleum Reserve Plan.
       Paragraph (4) would delete subsections 159(h) and (i) of 
     EPCA. Subsection 159(h) deals with interim storage facilities 
     which provide for storage of petroleum prior to the creation 
     of Government-owned facilities. That authority is no longer 
     needed since the Reserve has 592 million barrels of oil in 
     storage and significant unutilized storage capacity. 
     Subsection 159(i) required the submission of a report to 
     Congress within 18 months after enactment of the 1990 EPCA 
     Amendments on the results of contract negotiations conducted 
     pursuant to part C of EPCA. The Department did not conclude 
     any contracts pursuant to part C, and the reporting provision 
     has expired by its own terms.
       Paragraph (5) would amend subsection 159(j) of EPCA to 
     reflect the elimination of the statutory requirement for a 
     Strategic Petroleum Reserve Plan by amendment of section 154 
     of the Act. This amendment would continue the requirement for 
     submission to Congress of proposed plans for expansion of 
     storage capacity following a determination by the Secretary 
     that the Reserve

[[Page S1861]]

     can reasonably be expected to be filled to 750 million 
     barrels within five years. This reflects the uncertain 
     financing situation for filling available capacity in the 
     Reserve and makes planning for capacity expansion beyond 
     current capacity premature.
       Paragraph (6) would amend subsection 159(l) to eliminate 
     the reference to the Distribution Plan, but would retain the 
     Secretary's authority, during drawdown and distribution of 
     the Reserve, to promulgate regulations necessary to the 
     drawdown and distribution without regard to rulemaking 
     requirements in section 523 of this Act and section 501 of 
     the Department of Energy Organization Act.
       Subsection (n) would amend section 160 of EPCA.
       Paragraph (1) would amend subsection 160(a) of EPCA to 
     provide that the Secretary's authority to acquire petroleum 
     products for the Strategic Petroleum Reserve is contingent on 
     the availability of funds.
       Paragraph (2) would amend subsection 160(b) of EPCA by 
     striking the references to the Early Storage Reserve and the 
     Regional Petroleum Reserve, which would be eliminated by this 
     bill.
       Paragraph (3) would strike subsections 160(c), (d), (e), 
     and (g) of EPCA.
       Subsection 160(c) of EPCA requires minimum fill rates. 
     These requirements have proved unrealistic given changes in 
     oil markets and availability of financing. The proposed 
     amendment gives the Secretary flexibility to fill the Reserve 
     contingent upon the availability of funds.
       Subsection 160(d) links sales authority for the United 
     States' share of crude oil at Naval Petroleum Reserve 
     Numbered 1 to a fill level of 750,000,000 barrels or a fill 
     rate of 75,000 barrels per day. The requirement for Strategic 
     Petroleum Reserve fill is dependent on the availability of 
     financing for Strategic Petroleum Reserve acquisition, and 
     the logistics of moving Naval Petroleum Reserve Numbered 1 
     crude oil to the Strategic Petroleum Reserve have proved to 
     be very problematic.
       Subsection 160(e) describes various exceptions to the 
     linkage between the Naval Petroleum Reserve Numbered 1 crude 
     oil sales authority and the Strategic Petroleum Reserve fill 
     rate, which would be eliminated by this bill.
       Subsection 160(g) requires a refined petroleum product 
     reserve test in fiscal years 1992-94, and a report to 
     Congress. The test was not conducted due to insufficient 
     appropriations in fiscal year 1992 and fiscal year 1993 and 
     was waived in fiscal year 1994. The required report has been 
     submitted.
       Subsection (o) would amend section 161 of EPCA.
       Paragraph (1) would strike subsections 161 (b) and (c) of 
     EPCA, because they refer to both the Strategic Petroleum 
     Reserve Plan and the Early Storage Reserve Plan which would 
     be eliminated by this bill.
       Paragraph (2) would amend subsection 161(d)(1) of EPCA by 
     eliminating the references to the Distribution Plan contained 
     in the Strategic Petroleum Reserve Plan but would not change 
     the existing conditions for Presidential decision to draw 
     down and distribute the Reserve.
       Paragraph (3) would amend subsection 161(e) of EPCA to 
     require the Secretary to distribute oil from the Reserve via 
     a public competitive sale to the highest qualified bidder. 
     The amendment eliminates the Secretary's allocation 
     authority.
       The amendment also would make explicit the authority of the 
     Secretary to cancel a sale in progress. This authority would 
     enable the Secretary to respond to inordinately low bids, 
     changes in market conditions, or a sudden a reversal in the 
     nature of the shortage or emergency.
       Paragraph (4) would amend subsection 161(g) of EPCA.
       Subparagraph (4)(A) would amend subsection 161(g)(1) of 
     EPCA to substitute ``distribution procedures'' for 
     ``Distribution Plan.''
       Subparagraph (4)(B) would strike subsection 161(g)(2) of 
     EPCA because it refers to the Distribution Plan eliminated by 
     the bill, and subsection 161(g)(6) of EPCA because it refers 
     to the minimum required fill rate eliminated by the bill.
       Subparagraph (4)(C) would amend section 161(g)(4) of EPCA 
     to prevent the Secretary from selling oil during a test sale 
     of the Strategic Petroleum Reserve at a price less than ``95 
     percent'' of the sales price of comparable crude oil being 
     sold in the same area at the time the Secretary is offering 
     crude oil for sale rather than ``90 percent'' currently 
     stipuled in this section. Since 10 percent of current prices 
     ranges upward of $1.50 per barrel, the Department believes a 
     smaller range of difference in price would protect the 
     Department from selling the oil below normal variations in 
     market prices.
       Subsection (p) would strike section 164 of EPCA. Section 
     164 of EPCA required a study of the use of Naval Petroleum 
     Reserve No. 4 jointly by the Secretaries of Energy, the 
     Interior and the Navy, with a report to Congress within 180 
     days of the passage of the original Act. The study and report 
     were completed.
       Subsection (q) would amend section 165 of EPCA by deleting 
     the requirement for quarterly reports on the operation of the 
     Strategic Petroleum Reserve and requiring instead an annual 
     report consistent with other parts of this amendment. 
     Quarterly reports considered important during the early 
     growth period of the Strategic Petroleum Reserve to inform 
     the Congress of progress in construction and the rate of 
     fill, are now unnecessary, and their deletion would save 
     administrative costs. Subsection (q) would also eliminate 
     references to the Strategic Petroleum Reserve Plan, the 
     Distribution Plan, and the Early Storage Reserve, which are 
     eliminated by the bill and would change some of the 
     requirements for information to be included in the annual 
     report to reflect more accurately the current status of the 
     Reserve.
       Subsection (r) would amend section 166 of EPCA to authorize 
     appropriations necessary to implement the Strategic Petroleum 
     Reserve, and to delete year specific authorizations for the 
     early years of the Reserve.
       Subsection (s) would amend section 167 of EPCA to clarify 
     that funds generated by test sales will be deposited in the 
     SPR Petroleum Account. The amendment would remove language 
     specific to fiscal year 1982 which limits the amount of money 
     in the SPR Petroleum Account that year. The amendment also 
     would delete reference to the use of funds for interim 
     storage, which will not be needed because the permanent 
     facilities are complete for the storage of 750 million 
     barrels of oil.
       Subsection (t) would amend section 171 of EPCA to eliminate 
     the reference to a requirement for information identical to 
     that in section 154(e) of EPCA. Section 154(e) describes 
     information that is included in the Strategic Petroleum 
     Reserve Plan, which is deleted in this legislation. Instead, 
     when the Secretary notifies the Congress that the Department 
     intends to contract for storage of petroleum under part C, 
     the notification will include a requirement for information 
     more pertinent to the contract.
       Subsection (u) would amend section 172 of EPCA.
       Paragraph (1) would delete subsections (a) and (b). The 
     exemption in subsection (a) from the requirement for a 
     Strategic Petroleum Reserve Plan amendment is no longer 
     necessary because the bill eliminates the requirement for 
     Plan amendments. Subsection (b) provides that, for purposes 
     of meeting the fill rate requirement in section 160(d)(1) of 
     EPCA, part C contract oil which is removed from the Reserve 
     at the end of the contract agreement shall be considered part 
     of the Reserve until the beginning of the fiscal year 
     following the fiscal year in which the oil is removed. The 
     subsection is unnecessary since the requirement for specific 
     fill rates is deleted by amendment of section 160 of the Act.
       Subsection (v) would delete section 173 of EPCA which 
     requires congressional review and, therefore, public scrutiny 
     of the details of contracts even though no implementing 
     legislation is needed, and requires a 30-day ``lie before'' 
     period before the contract can go into effect. This 
     requirement is a substantial impediment to acquisition of oil 
     for the Reserve by ``leasing'' and other alternative 
     financing methods authorized by EPCA, part C.
       Subsection (w) would amend section 181 of EPCA by extending 
     the expiration date of title I, parts B and C from June 30, 
     1996 to September 30, 2001.
       Public Law 103-406 extended the expiration date to June 30, 
     1996.


               section 4. amendments to title ii of epca

       Subsection (a) would strike part A of EPCA title II, which 
     contains the authorities for gasoline rationing and other 
     mandatory energy conservation measures which expired on July 
     1, 1985.
       Subsection (b) would amend section 251(e)(1) by striking 
     section ``252(l)(1)'' and inserting in lieu thereof 
     ``252(k)(1).''
       Section (c) would amend section 252 of EPCA, which makes 
     available to United States oil companies a limited antitrust 
     defense and breach of contract defense for actions taken to 
     carry out a voluntary agreement or plan of action to 
     implement the ``allocation and information provisions'' of 
     the Agreement on an International Energy Program (``IEP''). 
     These limited defenses are now available only in connection 
     with the companies' participation in planning for and 
     implementation of the IEP's emergency oil sharing and 
     information programs. The amendment would extend the section 
     252 antitrust defense (but not the breach of contract 
     defense) to U.S. companies when they assist the International 
     Energy Agency (``IEA'') in planning for and implementing 
     coordinated drawndown of government-owned or government-
     controlled petroleum stocks. In 1984, largely at the urging 
     of the United States, the IEA's Governing Board adopted a 
     decision on ``Stocks and Supply Disruptions'' which 
     established a framework for coordinating the drawdown of 
     member countries' government-owned and government-controlled 
     petroleum stocks in those oil supply disruptions that appear 
     capable of causing severe economic harm, whether or not 
     sufficient to activate the IEP emergency oil sharing and 
     information programs. During the 1990-91 Persian Gulf crisis 
     the IEA successfully tested the new coordinated stockdraw 
     policy.
       Paragraph 1 would amend subsections 252 (a) and (b) of 
     EPCA. These sections would be amended by substituting the 
     term ``international emergency response provisions'' for the 
     term ``allocation and information provisions of the 
     international energy program.'' The new term establishes the 
     scope of oil company activities covered by the antitrust 
     defense and includes actions to assist the IEA in 
     implementing coordinated drawdown of petroleum stocks.
       Paragraph 2 would amend paragraph 252(d)(3) of EPCA to 
     clarify that a plan of action submitted to the Attorney 
     General for

[[Page S1862]]

     approval must be as specific in its description of proposed 
     substantive actions as is reasonable ``in light of 
     circumstances known at the time of approval'' rather than 
     ``in light of known circumstances.''
       Paragraph 3 would amend paragraph 252(e)(2) of EPCA to give 
     the Attorney General flexibility in promulgating rules 
     concerning the maintenance of records by oil companies 
     related to the development and carrying out of voluntary 
     agreements and plans of action.
       Paragraph 4 would amend paragraph 252(f)(2) of EPCA to 
     clarify that the antitrust defense applies to oil company 
     actions taken to carry out an approved voluntary agreement as 
     well as an approved plan of action.
       Paragraph 5 would amend subsection 252(h) of EPCA to strike 
     the reference to section 708(A) of the Defense Production Act 
     of 1950, which was repealed by Public Law 102-558 (October 
     28, 1992), and the reference to the Emergency Petroleum 
     Allocation Act of 1973, which expired in 1981.
       Paragraph 6 would amend subsection 252(i) of EPCA to 
     require the Attorney General and the Federal Trade Commission 
     to submit reports to Congress and to the President on the 
     impact of actions authorized by section 252 on competition 
     and on small businesses annually rather than every six 
     months, except during an ``international energy supply 
     emergency,'' when the reports would be required every six 
     months.
       Paragraph 7 would amend paragraph 252(k)(2) of EPCA by 
     substituting a definition of the term ``international 
     emergency response provisions'' for the present definition of 
     ``allocation and information provisions of the international 
     energy program.'' The new term, which establishes the scope 
     of company actions covered by the antitrust defense, covers 
     (A) the allocation and information provisions of the IEP and 
     (B) emergency response measures adopted by the IEA Governing 
     Board for the coordinated drawdown of stocks of petroleum 
     products held or controlled by governments and complementary 
     actions taken by governments during an existing or impending 
     international oil supply disruption, whether or not 
     international allocation of petroleum products is required by 
     the IEP.
       Paragraph 8 would amend subsection 252(1) of EPCA to make 
     clear that the antitrust defense does not extend to 
     international allocation of petroleum unless the IEA's 
     Emergency Sharing System has been activated.
       Subsection (d) would amend subsection 256(h) of EPCA to 
     authorize appropriations for fiscal years 1996 through 2001 
     for the activities of the interagency working group and 
     interagency working subgroups established by section 256 of 
     EPCA to promote exports of renewable energy and energy 
     efficiency products and services.
       Subsection (e) would strike EPCA part C, which was added to 
     the EPCA by the Energy Emergency Preparedness Act of 1982 and 
     which required the submission to Congress of reports on 
     energy emergency legal authorities and response procedures. 
     The reporting requirement was fulfilled in 1982.
       Subsection (f) would amend section 281 of EPCA by extending 
     the expiration date of title II from June 30, 1996 to 
     September 30, 2001.
       Public Law 103-406 extended the expiration date of June 30, 
     1996.


               section 5. amendments to title iii of epca

       Subsection (a) would amend sections 365 and 397 of EPCA, 
     which provide authorization for appropriations for fiscal 
     years 1991, 1992, and 1993 for State Energy Conservation 
     programs and the Energy Conservation Program for Schools and 
     Hospitals. The amendment would authorize appropriations of 
     $24,651 million for section 365 and $26,849 million for 
     section 397 for fiscal year 1996 and such funds as may be 
     necessary for fiscal years 1997 through 2001.
       Subsection (b) would amend section 400BB to extend the 
     authorization for the appropriation of the Alternative Fuels 
     Truck Commercial Application Program to fiscal year 2001.


                section 6. amendments to title v of epca

       Paragraph 1 would delete section 507 of the Act, which 
     provides that the Energy Information Administration must 
     continue to gather the same data on pricing, supply and 
     distribution of petroleum products as it did on September 1, 
     1981. This section hinders the flexibility of the 
     Administrator to collect information that is currently 
     meaningful. There is no reason to have a statutory 
     prohibition against modifying and amending the types of data 
     collected.
       Paragraph 2 would delete section 522 of the Act, which 
     provides conflict of interest disclosure requirements for the 
     Federal Energy Administration. This section was superseded by 
     the Department of Energy Organization Act.
       By Mr. Hatch (for himself, Mrs. Feinstein, Mr. Thurmond, 
     Mr. DeWine, Mr. Kohl, and Mr. Biden):

  S. 1606. A bill to control the use of biological agents that have the 
potential to pose a severe threat to public health and safety, and for 
other purposes; to the Committee on the Judiciary.


        THE BIOLOGICAL AGENTS ENHANCED PENALTIES AND CONTROL ACT

  Mr. HATCH. Mr. President, I rise to introduce a bill that has a 
simple but important purpose: To decrease the opportunity for 
terrorists to use a biological weapons.
  S. 1606 is cosponsored by Senators Feinstein, Thurmond, DeWine, Kohl, 
and Biden. I welcome this broad bipartisan support to respond quickly 
to this threat to the safety of Americans.
  It may surprise the American people to know that very dangerous, 
indeed deadly, organisms that cause diseases and death in human beings 
are available for purchase across State lines--not only by legitimate 
users, but by those who may use them with criminal intent. These 
organisms include the agents that cause the bubonic plague, anthrax, 
and other diseases.
  Perversely, the Federal Government has stricter regulations on the 
interstate transportation of biological agents causing disease in 
plants and animals than it has for the interstate transportation of 
agents that cause disease in humans.
  I favor regulatory reform and a reduction in the Government's overall 
regulatory burden on the American people. But that is not to say that 
the Federal Government has no legitimate regulatory role to play. The 
interstate transport of dangerous biological agents should be 
regulated.
  A recent Washington Post story reported that, in May 1995, an 
individual in Ohio faxed an order for three vials of the agent that 
causes the bubonic plague, a disease that killed one-third of the 
people of 14th century Europe, from the American Type Culture 
Collection [ATCC] in Maryland. The purchaser's letterhead appeared to 
be that of a laboratory.
  When the purchaser called ATCC to complain about slow delivery, the 
sales representative became concerned about whether the caller was 
someone who should have the plague agent. Ohio police, public 
officials, the FBI, and emergency workers ultimately scoured the 
purchaser's home.
  In the home they found nearly a dozen M-1 rifles, smoke grenades, 
blasting caps, and white separatist literature. The deadly micro-
organisms were found in the glove compartment of the purchaser's 
automobile, still packed as shipped.
  The purchaser was prosecuted under wire and mail fraud statutes. But 
these charges would not have been possible if the purchaser had not 
sent a false statement on the letterhead of a nonexistent laboratory 
stating that the laboratory assumed responsibility for the shipment, as 
the seller had required.
  Unfortunately, both current laws and regulations are deficient in 
protecting Americans from the threat of the diversion of potentially 
dangerous biological agents. Gaps exist in current regulations that 
allow anyone to possess deadly biological agents, also referred to as 
human pathogens, and gaps exist in our criminal laws that make 
prosecution of people who attempt to obtain these agents for 
illegitimate purposes very difficult.
  I would like to take a moment to discuss these problems with you.
  Biological agents that cause disease in humans are available to 
several legitimate groups of users. First, small quantities of 
biological agents can be found in patient samples that are analyzed by 
clinical laboratories. Second, biological agents are used in the 
conduct of legitimate basic and clinical science research by scientists 
across the country, both within and outside of Government. Third, the 
Department of Defense has facilities to investigate biological agents, 
not as weapons, but to develop protective strategies in the event of 
military use of these agents during war. Currently, however, anyone 
else can also obtain these agents under Federal law. The only limits on 
who may purchase deadly biological agents are those imposed by the 
sellers themselves.
  There are many regulations in place with regard to the management of 
biological agents. These regulations come from many different 
governmental sources, including the CDC, the Postal Service, U.S. 
Department of Agriculture, Department of Commerce, Food and Drug 
Administration, and the Department of Transportation, among others. 
Unfortunately, the regulations were developed by these agencies with 
little or no apparent integration with other agencies, and with narrow 
purposes in mind. They were also developed in an era when domestic 
terrorism was not thought of as a real risk.
  In addition to the lack of coordination of efforts in the regulation 
of biological agents, existing regulations

[[Page S1863]]

have not kept up with advancing science. For instance, biological 
agents are currently classified by CDC into four classes, based on 
several criteria. This ranges from class 1 organisms, which are 
considered to be nonharmful to humans under ordinary circumstances, to 
class 4 organisms, which are considered to be highly harmful to humans. 
In the manual ``Biosafety in Microbiological and Biomedical 
Laboratories,''--hereafter Biosafety manual--CDC defines how legitimate 
laboratories should manage agents in these various classes.
  Again, these biohazard levels are designed for the protection of 
laboratory personnel and to prevent the accidental release of these 
agents into the environment. They do not take into account potential 
theft of these agents, or attempt to prevent misdirection of these 
agents to terrorists. In addition, the biosafety manual that 
establishes biohazard levels was last revised in 1993. It has not kept 
up with classification changes, or with the new strains of organisms 
that are constantly being described by microbiologists.
  Another example of how current regulation has not kept up with 
advancing scientific knowledge is the definition of what a biological 
agent actually is. The Centers for Disease Control and Prevention [CDC] 
defines a biological agent--human pathogen--as ``a viable micro-
organism or its toxin which causes, or may cause, human disease'' [42 
CFR 72]. This definition includes algae, bacteria, protozoa, fungi, and 
viruses.
  Unfortunately, threats now exist that we did not even know about when 
this definition was written. For instance, we now are experiencing a 
rapid growth in the field of gene technology. This technology now gives 
scientists the ability to deliberately or accidentally insert genes 
into micro-organisms that could broaden their host range, alter their 
route of disease transmission to humans, make them more toxic, or make 
them more difficult to treat.
  CDC has wide authority to regulate biological agents that pose a 
threat to human health, and could establish rules limiting who may 
possess these agents. Current regulations do not protect communities 
from intentional diversion of biological agents or the potential for 
these agents to be turned into weapons of mass destruction.
  This fact was recognized by CDC testimony before the Senate Judiciary 
committee last week. Dr. James M. Hughes, the Assistant Surgeon General 
and Director of the National Center for Infectious Diseases for the CDC 
testified:

       The current safeguards governing the acquisition and 
     distribution, in the United States, of infectious and/or 
     toxic agents are not comprehensive. There is no single set of 
     consistent regulations but rather a number of different 
     departmental regulations that address the shipping and 
     handling of infectious agents. Taken together, these are 
     effective at controlling the packaging, labeling, and 
     transport of infectious materials, but they are not 
     completely effective at controlling the possession and 
     transfer of human infectious agents within the United States.

  Unfortunately, efforts by CDC and others have been slow. To date, 
there have been at least two multiagency task forces established to 
look at this issue. The first task force completed its work and made 
recommendations in July 1995. The second task force is well underway in 
the development of a regulatory system, but there does not appear to be 
a sufficient sense of urgency to get the job done.
  According to CDC's March 6 testimony before the Judiciary Committee, 
CDC does not plan to release proposed regulations for at least another 
6 months. That means that it might be another year before final rules 
regulating who may possess dangerous biological agents are in place and 
enforceable.
  Why is that a problem? Current criminal law has gaps that prevent the 
prosecution of someone who obtains biological agents under false 
pretenses, or who possesses these agents with the intent to harm 
others. Under current Federal law, it is legal for anyone to possess 
biological agents--we must wait until they actually use it as a weapon 
before there is anything we can do about it.
  These gaps in current criminal law were discussed in detail during 
the hearings before the Judiciary Committee. Mr. Mark M. Richard, the 
Deputy Assistant Attorney General, testified on behalf of the 
Department of Justice. Mr. Richard stated that the multiagency task 
force looking into this issue determined ``that there were no 
comprehensive Federal regulations governing the control of these 
dangerous organisms.''
  My colleagues and I believe that current regulation and law have left 
us vulnerable to the potential use of biological agents as a terrorist 
weapon. We have not kept pace with science and technology, nor have we 
recognized that we live in a more dangerous world than we once did. We 
further believe that action must be taken sooner, rather than later, to 
avoid a potential disaster.
  This bill strikes a balance between protecting citizens from the 
threat that biological agents will be used as a weapon of domestic 
terrorism and placing over-burdensome demands on legitimate users of 
biological agents.
  The first title of our bill is directed at placing appropriate 
criminal provisions in place as requested by the Justice Department. 
Our provisions ensure that persons who develop or use biological 
organisms as a weapon will face severe and certain punishment.
  Our bill does this by amending sections 175 to 178 of Title 18, which 
relate to prohibitions with respect to biological weapons. As it 
currently is written, this provision makes it criminal to knowingly 
develop, produce, transfer, acquire, or possess any biological agent, 
toxin, or delivery system for use as a weapon. It also prohibits 
knowingly assisting a foreign state or organization to do so. My bill 
will strengthen this provision to include an attempt, threat, and 
conspiracy prohibition within its scope. In addition, I broaden the 
definitions of biological agent, toxin, and vector in section 178 to 
cover biological products that can be engineered as a result of 
advances made in the field of biotechnology.
  The second statute in Title 18 that we amend is section 2332a. That 
provision currently makes it a criminal offense to use a weapon of mass 
destruction. Under current law, a ``weapon of mass destruction'' is 
defined to include ``any weapon involving a disease organism.'' 18 
U.S.C. Sec. 2332a(b)(2)(C). This bill will expand that definition to 
include in its coverage the biological agents and toxins, as defined in 
section 178, including bioengineered products, that can be used as a 
weapon of mass destruction. In addition, we add a threat provision to 
this statute.
  The second title of our bill requires the Secretary of Health and 
Human Services to establish interim regulations within 90 days and to 
issue proposed rules within 180 days that regulate the transfer within 
the United States of biological agents which have the potential to pose 
a severe threat to the public health and safety.
  I believe that the time limits required in our bill are reasonable 
and prudent, and allow the Secretary of Health and Human Services 
adequate time to develop appropriate regulations in this area. In fact, 
Dr. James Hughes testified last week that this process is well 
underway.
  The Judiciary Committee has been very concerned about the immediate 
potential for diversion of dangerous biological agents under the 
current law and regulation. In fact, at our hearing last week, we were 
disturbed to learn from agency representatives that no measures are in 
place to guard against reoccurrence of a situation like the Ohio case.
  For this reason, on March 6, Senators Feinstein, Specter, Kohl, and I 
sent a letter to the President urging that he:

       * * * direct the Centers for Disease Control and Prevention 
     to implement on a priority basis emergency procedures which 
     will protect the American people against the threat of 
     dangerous, diverted pathogenic materials.

  In addition, our new legislation includes a requirement for the 
establishment of interim rules while the long-term rules are developed.
  In closing, Mr. President, I believe that the threat for the 
intentional diversion of biological agents is real, and that these 
agents pose a threat for use as a weapon of domestic terrorism.
  We are submitting a comprehensive bill that fixes the gaps in 
criminal code and requires the rapid development and implementation of 
a regulatory program that will limit the people who may possess these 
materials to those who have a legitimate need to possess

[[Page S1864]]

them. Obviously, time is of the essence, and I hope that the Senate 
will act as quickly as possible on the Biological Agents Enforcement 
Enhancement and Control Act.
  I ask unanimous consent that the text of S. 1606 be inserted in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1606

       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 ``Biological Agents Enhanced 
     Penalties and Control Act''.

     SEC. 2. FINDINGS.

       The Congress finds that--
       (1) certain biological agents have the potential to pose a 
     severe threat to public health and safety;
       (2) such biological agents can be used as weapons by 
     individuals or organizations for the purpose of domestic or 
     international terrorism or for other criminal purposes;
       (3) the transfer and possession of potentially hazardous 
     biological agents should be regulated to protect public 
     health and safety; and
       (4) efforts to protect the public from exposure to such 
     agents should ensure that individuals and groups with 
     legitimate objectives continue to have access to such agents 
     for clinical and research purposes.

     SEC. 3. CRIMINAL ENFORCEMENT.

       (a) Biological Weapons.--Chapter 10 of title 18, United 
     States Code is amended--
       (1) in section 175(a), by inserting ``or attempts, 
     threatens, or conspires to do the same,'' after ``to do 
     so,'';
       (2) in section 177(a)(2), by inserting ``threat,'' after 
     ``attempt,''; and
       (3) in section 178--
       (A) in paragraph (1), by striking ``or infectious 
     substance'' and inserting ``infectious substance, or 
     biological product that may be engineered as a result of 
     biotechnology, or any naturally occurring or bioengineered 
     component of any such microorganism, virus, infectious 
     substance, or biological product'';
       (B) in paragraph (2)--
       (i) by inserting ``the toxic material of plants, animals, 
     microorganisms, viruses, fungi, or infectious substances, or 
     a recombinant molecule'' after ``means'';
       (ii) by striking ``production--'' and inserting 
     ``production, including--'';
       (iii) in subparagraph (A), by inserting ``or biological 
     product that may be engineered as a result of biotechnology'' 
     after ``substance''; and
       (iv) in subparagraph (B), by inserting ``or biological 
     product'' after ``isomer''; and
       (C) in paragraph (4), by inserting ``; or molecule, 
     including a recombinant molecule, or biological product that 
     may be engineered as a result of biotechnology,'' after 
     ``organism''.
       (b) Terrorism.--Section 2332a(a) of title 18, United States 
     Code, is amended--
       (1) by inserting ``, threatens,'' after ``attempts''; and
       (2) by inserting ``, including any biological agent, toxin, 
     or vector (as those terms are defined in section 178)'' after 
     ``destruction''.

     SEC. 4. REGULATORY CONTROL OF BIOLOGICAL AGENTS.

       (a) List of Biological Agents.--
       (1) In general.--The Secretary shall, through regulations 
     promulgated under subsection (c), establish and maintain a 
     list of each biological agent that has the potential to pose 
     a severe threat to public health and safety.
       (2) Criteria.--In determining whether to include an agent 
     on the list under paragraph (1), the Secretary shall--
       (A) consider--
       (i) the effect on human health of exposure to the agent;
       (ii) the degree of contagiousness of the agent and the 
     methods by which the agent is transferred to humans;
       (iii) the availability and effectiveness of immunizations 
     to prevent and treatments for any illness resulting from 
     infection by the agent; and
       (iv) any other criteria the Secretary considers 
     appropriate; and
       (B) consult with scientific experts representing 
     appropriate professional groups.
       (b) Regulation of Transfers of Listed Biological Agents.--
     The Secretary shall, through regulations promulgated under 
     subsection (c), provide for--
       (1) the establishment and enforcement of safety procedures 
     for the transfer of biological agents listed pursuant 
     subsection (a), including measures to ensure--
       (A) proper training and appropriate skills to handle such 
     agents; and
       (B) proper laboratory facilities to contain and dispose of 
     such agents;
       (2) safeguards to prevent access to such agents for use in 
     domestic or international terrorism or for any other criminal 
     purpose;
       (3) the establishment of procedures to protect the public 
     safety in the event of a transfer or potential transfer of a 
     biological agent in violation of the safety procedures 
     established under paragraph (1) or the safeguards established 
     under paragraph (2); and
       (4) appropriate availability of biological agents for 
     research, education, and other legitimate purposes.
       (c) Times Limits.--The Secretary shall carry out 
     subsections (a) and (b) by issuing--
       (1) interim rules not later than 90 days after the date of 
     the enactment of this Act;
       (2) proposed rules not later than 180 days after the date 
     of the enactment of this Act; and
       (3) final rules not later than 360 days after the date of 
     the enactment of this Act.
       (d) Definitions.--For purposes of this section--
       (1) the term ``biological agent'' has the same meaning as 
     in section 178 of title 18, United States Code; and
       (2) the term ``Secretary'' means the Secretary of Health 
     and Human Services.
                                 ______