[Congressional Record Volume 144, Number 140 (Thursday, October 8, 1998)]
[Senate]
[Pages S12002-S12003]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            ENERGY CONSERVATION REAUTHORIZATION ACT OF 1998

                                 ______
                                 

                MURKOWSKI (AND AKAKA) AMENDMENT NO. 3793

  Mr. JEFFORDS (for Mr. Murkowski, for himself, and Mr. Akaka) proposed 
an amendment to the bill (S. 417) to extend energy conservation 
programs under the Energy Policy and Conservation Act through September 
30, 2002; as follows:

       At the end, insert the following:

     SEC. 9. 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, 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 results 
     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 hole 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 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.
       ``(7) Supplies of petroleum products.--At the request of 
     the governor of an insular area, the Secretary shall, for a 
     period not to exceed 180 days following a drawdown of the 
     Strategic Petroleum Reserve, assist the insular area or the 
     President of a Freely Associated State 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 (a).

     SEC. 10. INDIAN ENERGY RESOURCE DEVELOPMENT.

       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 ``1999, 2000, 2001, 2002 
     and 2003'' in lieu thereof.

     SEC. 11. REMEDIAL ACTION.

       (a) Section 1001(b)(2)(C) of the Energy Policy Act of 1992 
     (42 U.S.C. 2296a) is amended by striking ``$65,000,000'' and 
     inserting ``$140,000,000''.

[[Page S12003]]

       (b) Section 1003(a) of such Act (42 U.S .C. 2296a-2) is 
     amended by striking ``$415,000,000'' and inserting 
     ``$490,000,000''.
       (c) Section 1802(a) of the Atomic Energy Act of 1954 (42 
     U.S.C. 2297g-1) is amended by striking ``$480,000,000'' and 
     inserting ``$488,333,333''.

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