[Congressional Record Volume 143, Number 93 (Friday, June 27, 1997)]
[Senate]
[Pages S6788-S6790]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             ENERGY POLICY AND CONSERVATION ACT AMENDMENTS

  Mr. LOTT. Mr. President, I ask unanimous consent the Senate now 
proceed to consideration of Calendar No. 77, S. 417.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 417) to extend energy conservation programs 
     under the Energy Policy and Conservation Act through 
     September 30, 2002.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Energy and Natural 
Resources, with an amendment to strike all after the enacting clause 
and inserting in lieu thereof the following:

     SECTION 1. ENERGY POLICY AND CONSERVATION ACT AMENDMENTS.

       The Energy Policy and Conservation Act is amended--

[[Page S6789]]

       (1) at the end of section 154 by adding the following new 
     subsection:
       ``(f) No later than October 1, 1997, the Secretary shall 
     prepare a statement of policy on Strategic Petroleum Reserve 
     development, maintenance and drawdown. The statement of 
     policy shall evaluate the effect of sales of petroleum from 
     the Strategic Petroleum Reserve under authorities other than 
     those provided by this Act on the ability of the United 
     States to fulfill its obligations under the international 
     energy program. The statement of policy shall evaluate the 
     effectiveness of the Strategic petroleum Reserve at reducing 
     the impact of severe energy supply interruptions, in light of 
     existing quantities of petroleum in the Strategic Petroleum 
     Reserve, and the likelihood of purchases of additional 
     petroleum for storage. The statement of policy shall set 
     forth alternative strategies for drawdown and the criteria to 
     be employed at the time of drawdown to select among such 
     strategies. The statement of policy shall be published in the 
     Federal Register and be subject to public comment, and may be 
     prepared without regard to the requirements of section 553 of 
     title 5, United States Code, section 501 of the Department of 
     Energy Organization Act (42 U.S.C. 7191), and section 523 of 
     this Act.'';
       (2) by amending section 166 (42 U.S.C. 6246) to read as 
     follows:


                   ``authorization of appropriations

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


                   ``use of underutilized facilities

       ``Sec. 168. (a) Notwithstanding section 649(b) of the 
     Department of Energy Organization Act (42 U.S.C. 7259(b)), 
     the Secretary is authorized to store in underutilized 
     Strategic Petroleum Reserve facilities, by lease or 
     otherwise, petroleum product owned by a foreign government or 
     its representatives. Petroleum product stored under this 
     section is not part of the Strategic Petroleum Reserve, is 
     not subject to part C of this title, and notwithstanding any 
     provision of this Act, may be exported from the United 
     States.
       ``(b) Beginning on October 1, 2002, funds resulting from 
     the leasing or other use of a Reserve facility under 
     subsection (a) shall be available to the Secretary, without 
     further appropriation, for the purchase of petroleum products 
     for the Reserve.'';
       (4) in section 181 (42 U.S.C. 6251) by striking ``1997'' 
     other places it appears and inserting in lieu thereof 
     ``2000'';
       (5) by striking ``section 252(l)(1)'' in section 251(e)(1) 
     (42 U.S.C. 6271(e)(1)) and inserting ``section 252(k)(1)'';
       (6) in section 252 (42 U.S.C. 6272)--
       (A) in subsections (a)(1) and (b), by striking ``allocation 
     and information provisions of the international energy 
     program'' and inserting ``international emergency response 
     provisions'';
       (B) in subsection (d)(3), by striking ``known'' and 
     inserting after ``circumstances'' ``known at the time of 
     approval'';
       (C) in subsection (e)(2) by striking ``shall'' and 
     inserting ``may'';
       (D) in subsection (f)(2) by inserting ``voluntary agreement 
     or'' after ``approved'';
       (E) by amending subsection (h) to read as follows:
       ``(h) Section 708 of the Defense Production Act of 1950 
     shall not apply to any agreement or action undertaken for the 
     purpose of developing or carrying out--
       ``(1) the international energy program, or
       ``(2) any allocation, price control, or similar program 
     with respect to petroleum products under this Act.'';
       (F) in subsection (k) by amending paragraph (2) to read as 
     follows:
       ``(2) The term `international emergency response 
     provisions' means--
       ``(A) the provisions of the international energy program 
     which relate to international allocation of petroleum 
     products and to the information system provided in the 
     program, and
       ``(B) the emergency response measures adopted by the 
     Governing Board of the International Energy Agency (including 
     the July 11, 1984, decision by the Governing Board on `Stocks 
     and Supply Disruptions') for--
       ``(i) the coordinated drawdown of stocks of petroleum 
     products held or controlled by governments; and
       ``(ii) complementary actions taken by governments during an 
     existing or impending international oil supply disruption''; 
     and
       (G) by amending subsection (l) to read as follows:
       ``(l) The antitrust defense under subsection (f) shall not 
     extend to the international allocation of petroleum products 
     unless allocation is required by chapters III and IV of the 
     international energy program during an international energy 
     supply emergency.'';
       (7) by amending the last sentence of section 256(h) (42 
     U.S.C. 6276(h)) to read as follows: ``There are authorized to 
     be appropriated for each of fiscal years 1998 through 2002 
     such sums as may be necessary to carry out this part.'';
       (8) in section 281 (42 U.S.C. 6285) by striking ``1997'' 
     both places it appears and inserting in lieu thereof 
     ``2002''.;
       (9) in section 365(f)(1) (42 U.S.C. 6325(f)(1)) by striking 
     ``not to exceed'' and all that follows through ``fiscal year 
     1993'' and inserting in lieu thereof ``for each of fiscal 
     years 1998 through 2002 such sums as may be necessary'';
       (10) by amending section 397 (42 U.S.C. 6371f) to read as 
     follows:


                   ``authorization of appropriations

       ``Sec. 397. For the purpose of carrying out this part, 
     there are authorized to be appropriated for each of fiscal 
     years 1998 through 2002 such sums as may be necessary.''; and
       (11) in section 400BB(b) (42 U.S.C. 6374a(b)) by amending 
     paragraph (1) to read as follows:
       ``(1) There are authorized to be appropriated to the 
     Secretary for carrying out this section such sums as may be 
     necessary for each of fiscal years 1998 through 2002, to 
     remain available until expended.''.

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

       (a) Section 161 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6241) is amended by adding at the end the 
     following:
       ``(j) Purchases From Strategic Petroleum Reserve by 
     Entities in Insular Areas of United States and Freely 
     Associated States.--
       ``(1) Definitions.--In this subsection:
       ``(A) Binding offer.--The term `binding offer' means a bid 
     submitted by the State of Hawaii for an assured award of a 
     specific quantity of petroleum product, with a price to be 
     calculated pursuant to paragraph (2) of this subsection, that 
     obligates the offeror to take title to the petroleum product 
     without further negotiation or recourse to withdraw the 
     offer.
       ``(B) Category of petroleum product.--The term `category of 
     petroleum product' means a master line item within a notice 
     of sale.
       ``(C) Eligible entity.--The term `eligible entity' means an 
     entity that owns or controls a refinery that is located 
     within the State of Hawaii.
       ``(D) Full tanker load.--The term `full tanker load' means 
     a tanker of approximately 700,000 barrels of capacity, or 
     such lesser tanker capacity as may be designated by the State 
     of Hawaii.
       ``(E) Insular area.--The term `insular area' means the 
     Commonwealth of Puerto Rico, the Commonwealth of the Northern 
     Mariana Islands, the United States Virgin Islands, Guam, 
     American Samoa, and the Freely Associated States of the 
     Republic of the Marshall Islands, the Federated States of 
     Micronesia, and the Republic of Palau.
       ``(F) Offering.--The term `offering' means a solicitation 
     for bids for a quantity or quantities of petroleum product 
     from the Strategic Petroleum Reserve as specified in the 
     notice of sale.
       ``(G) Notice of sale.--The term `notice of sale' means the 
     document that announces--
       ``(i) the sale of Strategic Petroleum Reserve products;
       ``(ii) the quantity, characteristics, and location of the 
     petroleum product being sold;
       ``(iii) the delivery period for the sale; and
       ``(iv) the procedures for submitting offers.
       ``(2) In general.--In the case of an offering of a quantity 
     of petroleum product during a drawdown of the Strategic 
     Petroleum Reserve--
       ``(A) the State of Hawaii, in addition to having the 
     opportunity to submit a competitive bid, may--
       ``(i) submit a binding offer, and shall on submission of 
     the offer, be entitled to purchase a category of a petroleum 
     product specified in a notice of sale at a price equal to the 
     volumetrically weighted average of the successful bids made 
     for the remaining quantity of the petroleum product within 
     the category that is the subject of the offering; and
       ``(ii) submit 1 or more alternative offers, for other 
     categories of the petroleum product, that will be binding if 
     no price competitive contract is awarded for the category of 
     petroleum product on which a binding offer is submitted under 
     clause (i); and
       ``(B) at the request of the Governor of the State of 
     Hawaii, a petroleum product purchased by the State of Hawaii 
     at a competitive sale or through a binding offer shall have 
     first preference in scheduling for lifting.
       ``(3) Limitation on quantity.--
       ``(A) In general.--In administering this subsection, in the 
     case of each offering, the Secretary may impose the 
     limitation described in subparagraph (B) or (C) that result 
     in the purchase of the lesser quantity of petroleum product.
       ``(B) Portion of quantity of previous imports.--The 
     Secretary may limit the quantity of a petroleum product that 
     the State of Hawaii may purchase through a binding offer at 
     any offering to \1/12\ of the total quantity of imports of 
     the petroleum product brought into the State during the 
     previous year (or other period determined by the Secretary to 
     be representative).
       ``(C) Percentage of offering.--The Secretary may limit the 
     quantity that may be purchased through binding offers at any 
     offering to 3 percent of the offering.
       ``(4) Adjustments.--
       ``(A) In general.--Notwithstanding any limitation imposed 
     under paragraph (3), in administering this subsection, in the 
     case of each offering, the Secretary shall, at the request of 
     the Governor of the State of Hawaii, or an eligible entity 
     certified under paragraph (7), adjust the quantity to be sold 
     to the State of Hawaii in accordance with this paragraph.
       ``(B) Upward adjustment.--The Secretary shall adjust upward 
     to the next whole number increment of a full tanker load if 
     the quantity to be sold is--
       ``(i) less than 1 full tanker load; or
       ``(ii) greater than or equal to 50 percent of a full tanker 
     load more than a whole number increment of a full tanker 
     load.
       ``(C) Downward adjustment.--The Secretary shall adjust 
     downward to the next whole number increment of a full tanker 
     load if the quantity to be sold is less than 50 percent of a 
     full tanker load more than a whole number increment of a full 
     tanker load.
       ``(5) Delivery to other locations.--The State of Hawaii may 
     enter into an exchange or a processing agreement that 
     requires delivery to other locations, if a petroleum product 
     of similar value or quantity is delivered to the State of 
     Hawaii.
       ``(6) Standard sales provisions.--Except as otherwise 
     provided in this Act, the Secretary

[[Page S6790]]

     may require the State of Hawaii to comply with the standard 
     sales provisions applicable to purchasers of petroleum 
     product at competitive sales.
       ``(7) Eligible entities.--
       ``(A) In general.--Subject to subparagraphs (B) and (C) and 
     notwithstanding any other provision of this paragraph, if the 
     Governor of the State of Hawaii certifies to the Secretary 
     that the State has entered into an agreement with an eligible 
     entity to carry out this Act, the eligible entity may act 
     on behalf of the State of Hawaii to carry out this 
     subsection.
       ``(B) Limitation.--The Governor of the State of Hawaii 
     shall not certify more than 1 eligible entity under this 
     paragraph for each notice of sale.
       ``(C) Barred company.--If the Secretary has notified the 
     Governor of the State of Hawaii that a company has been 
     barred from bidding (either prior to, or at the time that a 
     notice of sale is issued), the Governor shall not certify the 
     company under this paragraph.
       ``(8) Supplies of petroleum products.--At the request of 
     the governor of an insular area, or President of a Freely 
     Associated State, the Secretary shall, for a period not to 
     exceed 180 days following a drawdown of the Strategic 
     Petroleum Reserve, assist the insular area in its efforts to 
     maintain adequate supplies of petroleum products from 
     traditional and non-traditional suppliers.''.
       (b) Regulations.--
       (1) In general.--The Secretary of Energy shall issue such 
     regulations as are necessary to carry out the amendment made 
     by subsection (a).
       (2) Administrative procedure.--Regulations issued to carry 
     out the amendment made by subsection (a) shall not be subject 
     to--
       (A) section 523 of the Energy Policy and Conservation Act 
     (42 U.S.C. 6393); or
       (B) section 501 of the Department of Energy Organization 
     Act (42 U.S.C. 7191).
       (c) Effective Date.--The amendment made by subsection (a) 
     takes effect on the earlier of--
       (1) the date that is 180 days after the date of enactment 
     of this Act; or
       (2) the date that final regulations are issued under 
     subsection (b).

     SEC. 3. ENERGY POLICY ACT OF 1992 AMENDMENT.

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

     SEC. 4. ENERGY CONSERVATION AND PRODUCTION ACT AMENDMENT.

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


                   ``AUTHORIZATION OF APPROPRIATIONS

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

  Mr. LOTT. I ask unanimous consent the committee substitute amendment 
be agreed to and the bill be considered read a third time and passed, 
the motion to reconsider laid on the table, and any statements relating 
to the bill appear at this point in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment was agreed to.
  The bill (S. 417) was read the third time, and passed.

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