[Senate Report 104-273]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 407
104th Congress                                                   Report
                                 SENATE

 2d Session                                                     104-273
_______________________________________________________________________


 
            ENERGY POLICY AND CONSERVATION ACT AMENDMENT ACT

                                _______


                  May 15, 1996.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1605]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1605) to amend the Energy Policy and 
Conservation Act to manage the Strategic Petroleum Reserve more 
effectively, and for other purposes, having considered the 
same, reports favorably thereon with an amendment and 
recommends that the bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

    That this Act may be cited as the ``Energy Policy and Conservation 
Act Amendment 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 paragraph (3).
    Sec. 3. Title I of the Energy Policy and Conservation Act (42 
U.S.C. 6211-6251) is amended--
          (a) in section 105 (42 U.S.C. 6213)--
                  (1) by amending subsection (a) to read as follows--
          ``(a) The Secretary of the Interior shall permit 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 a person, when 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, unless 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);
          (b) by striking section 106 (42 U.S.C. 6214);
          (c) 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.'';
          (d) 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'';
          (e) by striking section 153 (42 U.S.C. 6233);
          (f) 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.'';
                  (3) by amending (c) to read as follows:
          ``(c) 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.''; and
                  (4) by striking subsections (d), and (e);
          (g) by striking section 155 (42 U.S.C. 6235);
          (h) 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'';
          (i) by striking section 157 (42 U.S.C. 6237);
          (j) by striking section 158 (42 U.S.C. 6238);
          (k) by amending the heading for section 159 (42 U.S.C. 6239) 
        to read, ``Development, Operation, and Maintenance of the 
        Reserve'';
          (l) 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;
                  ``(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 authorized to store in 
                underutilized 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 680,000,000 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 523 of this Act, without regard to rulemaking 
        requirements in section 553 of title 5, United States Code, and 
        section 501 of the Department of Energy Organization act (42 
        U.S.C. 7191),'';
          ``(m) 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 sub sections (c), (d), (e), and (g);
          (n) 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 product 
        withdrawn form 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'';
          (o) by striking section 164 (42 U.S.C. 6244);
          (p) 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 recommendations for supplemental 
                legislation or policy or operational changes the 
                Secretary considers necessary and appropriate to 
                implement this part.'';
          (q) in section 166 (42 U.S.C. 6246) by striking all after 
        ``appropriated'' and inserting ``the funds necessary to 
        implement this part.'';
          (r) 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'';
          (s) 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.'';
          (t) in section 172 (42 U.S.C. 6249a), by striking subsections 
        (a) and (b);
          (u) by striking section 173 (42 U.S.C. 6249b); and
          (v) 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 provision 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 $5,000,000 for each of the fiscal 
        years 1996 through 1999.''
          (e) by striking Part C (42 U.S.C. 6281 through 6282); 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. 6291-6327, 6361-6374d) 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 $26,500,000 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 $29,000,000 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).
    Sec. 7. (a) Section 161 of the Energy Policy and Conservation Act 
(42 U.S.C. 6241) is amended by adding at the end the following new 
subsection:
          ``(j)(1) With respect to each 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 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 petroleum product within the category that 
                        is the subject of the offering; and
                          ``(ii) submit one or more alternative offers, 
                        for other categories of petroleum product, that 
                        will be binding in the event that 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, 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.
                  ``(2)(A) In administering this subsection, and with 
                respect to 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) The Secretary may limit the quantity of 
                petroleum product that the State of Hawaii may purchase 
                through a binding offer at any one offering to one-
                twelfth of the total quantity of imports of petroleum 
                product brought into the State during the previous year 
                (or other period determined by the Secretary to be 
                representative).
                  ``(C) The Secretary may limit the quantity that may 
                be purchased through binding offers at any one offering 
                to 3 percent of the offering.
                  ``(3) Notwithstanding any limitation imposed under 
                paragraph (2), in administering this subsection, and 
                with respect to each offering, the Secretary shall, at 
                the request of the Governor of the State of Hawaii, or 
                an eligible entity certified under paragraph (6), 
                adjust the quantity to be sold to the State of Hawaii 
                as follows:
                          ``(A) 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 one 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.
                          ``(B) 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.
                  ``(4) The State of Hawaii may enter into an exchange 
                or a processing agreement that requires delivery to 
                other locations, so long as petroleum product of 
                similar value or quantity is delivered to the State of 
                Hawaii.
                  ``(5) 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.
                  ``(6)(A) Notwithstanding the foregoing, and subject 
                to subparagraphs (B) and (C), 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 effectuate the purposes of this Act, such 
                eligible entity may act on behalf of the State of 
                Hawaii for purposes of this subsection.
                  ``(B) The Governor of the State of Hawaii shall not 
                certify more than one eligible entity under this 
                paragraph for each notice of sale.
                  ``(C) 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 noticed 
                of sale is issued), the Governor shall not certify such 
                company under the paragraph.
                  ``(7) 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 in its 
                efforts to maintain adequate supplies of petroleum 
                products from traditional and non-traditional 
                suppliers.
                  ``(8) As used in this subsection--
                          ``(A) 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 this Act, that obligates the offeror to take 
                        title to the petroleum product without further 
                        negotiation or recourse to withdraw the offer;
                          ``(B) the term `category of petroleum 
                        product' means a master line item within a 
                        notice of sale;
                          ``(C) the term `eligible entity' means an 
                        entity that owns or controls a refinery that is 
                        located within the State of Hawaii;
                          ``(D) the term `fuel tanker load' means a 
                        tank of approximately 700,000 barrels of 
                        capacity, or such lesser tanker capacity as may 
                        be designated by the State of Hawaii;
                          ``(E) the term `insular area' means Guam, 
                        American Samoa, the Commonwealth of the 
                        Northern Mariana Islands, the Virgin Islands, 
                        Puerto Rico, and the freely associated states 
                        of the Republic of Palau, Federated States of 
                        Micronesia, and Republic of the Marshall 
                        Islands;
                          ``(F) 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; and
                          ``(G) 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.''.
          (b) The amendment made by subsection (a) shall take effect on 
        the date that is 180 days after the date of enactment of this 
        Act or the date that final regulations are promulgated pursuant 
        to section 3, whichever is sooner.
          (c) The Secretary shall promulgate such regulations as are 
        necessary to carry out the amendment made by subsection (a).
          (d) Regulations issued to carry out this section, and the 
        amendment made by subsection (a), shall not be subject to--
                  (1) section 523 of the Energy Policy and Conservation 
                Act (42 U.S.C. 6393); or
                  (2) section 501 of the Department of Energy 
                Organization Act (42 U.S.C. 7191).

                         Purpose of the Measure

    The purpose of S. 1605 is to reauthorize certain provisions 
of the Energy Policy and Conservation Act (EPCA). EPCA deals 
with issues affecting domestic energy supply and conservation, 
the Strategic Petroleum Reserve (SPR) and the International 
Energy Program Agreement. Authorizations for the SPR and U.S. 
participation in the International Energy Agency expire on June 
30, 1996. S. 1605 would extend the authorization through 
September 30, 2001. Other EPCA authorizations extended through 
2001 by the bill are the State Energy Conservation Program, the 
Energy Conservation Program for Schools and Hospitals, the 
Alternative Fuels Truck Commercial Application Program. The 
interagency working groups that promote reports, the Committee 
on Renewable Energy Commerce and Trade (CORECT) and the 
Committee on Energy Efficiency Commerce and Trade) (COEECT) 
would be authorized through 1999. The substitute amendment 
offered by Senators Murkowski and Johnston incorporates the 
text of S. 186, ``the Emergency Petroleum Supply Act,'' 
introduced by Senator Akaka, which would ensure that Hawaii 
have guaranteed access to the Strategic Petroleum Reserve 
during an oil supply disruption.

                          Background and Need

    The Energy Policy and Conservation Act (EPCA), initially 
passed in 1975, is concerned with domestic energy security, 
supply and conservation, including the Strategic Petroleum 
Reserve (SPR) and the International Energy Program (IEP) 
Agreement. Authorizations expire on June 30, 1996 for the SPR; 
the U.S. participation in the International Energy Agency 
(IEA); the State Energy Conservation Program; the Energy 
Conservation Program for Schools and Hospitals; the Alternative 
Fuels Truck Commercial Application Program; and the interagency 
working groups that promote exports, the Committee on Renewable 
Energy Commerce and Trade (CORECT) and the Committee on Energy 
Efficiency Commerce and Trade (COEECT).
    Title I of EPCA provided for the creation of the SPR and 
sets forth the method and circumstances for its drawdown and 
distribution in the event of a severe energy supply 
interruption or to fulfill the U.S.'s obligations under the 
International Energy Program (IEP) Agreement. The Energy Policy 
Act of 1992 amended EPCA to allow for a drawdown in response to 
severe price increases, as well. Authority to allocate crude 
oil from the SPR is also provided.
    The SPR has a planned storage capacity of 750 million 
barrels of oil with a maximum drawdown capability for 4.5 
million barrels per day (b/d). The SPR currently contains just 
under 590 million barrels of oil. In 1993, it was discovered 
that nearly 143 million barrels of oil in the Reserve were 
unavailable for drawdown due to the natural phenomena of 
geothermal heating and methane intrusion into the oil in 
certain of the caverns. The geothermal heating problem has been 
fully resolved and degassification of the oil is well underway. 
The stabilization program is expected to take another two years 
to complete. In addition, the Weeks Island storage facility has 
developed a geologic fissure, which requires the removal and 
relocation of the oil to the Big Hill and Bayou Choctaw sites. 
The oil removal operation started in November 1995 and is 
expected to be completed by December 1996. Final 
decommissioning of the Weeks Island facility is expected to be 
completed by 1999.
    The decommissioning of Weeks Island will reduce the storage 
capacity of the SPR to 680 million barrels and the maximum 
drawdown capability to 3.9 million b/d. Maximum drawdown 
capability is currently 3.4 million b/d up from 2.0 million b/d 
in 1993 when the stabilization program to install heat 
exchangers and degassification equipment was begun.
    The Energy Policy and Conservation Act Amendments of 1990 
directed the Department of Energy to submit a plan amendment to 
Congress by September 15, 1992 with detailed plans to expand 
the size of the SPR to one billion barrels. Submission of the 
plan has been indefinitely postponed. The Department has 
recommended that further plans to expand the Reserve be linked 
to formation of a plan for completion of fill of the existing 
capacity. This recommendation is based on the fact that the 
EPCA requirements for a fill rate of 75,000 barrels per day and 
the expansion of the Reserve capacity have not been supported 
with appropriations. Expanding the capacity another 250-320 
million barrels would require in excess of $10 billion 
additional investment in facilities and oil. The Administration 
has proposed language in the bill that would clarify the 
authority of the Secretary to lease storage capacity in 
underutilized SPR facilities to foreign governments.
    With the current reauthorization, the Administration has 
proposed amending subsection 161 of EPCA to require the 
Secretary of Energy to distribute oil from the SPR via a public 
competitive sale to the highest qualified bidder in place of 
the current allocation authority. The amendment would also make 
explicit the authority of the Secretary to cancel a sale in 
progress in the event of changes in market conditions, a sudden 
reversal in the nature of the shortage or emergency, or to 
respond to inordinately low bids.
    The IEA, founded in 1974 at the instigation of the United 
States, is the principal forum for energy cooperation among the 
twenty-one industrialized countries participating in the IEP 
Agreement. The IEP is designed to reduce the economic risks of 
oil supply disruptions and to reduce dependence on oil through 
coordinated efforts.
    The IEP Agreement called for the establishment of an 
information system on the international oil market and other 
sources of energy. The IEA's information system and 
assessments, widely cited by Government and industry analysts, 
are invaluable in tracking international energy markets.
    In the event of supply emergencies, the member countries of 
the IEA may decide to implement the Emergency Sharing System. 
Under the Emergency Sharing System, IEA member countries commit 
to reduce oil demand and share available oil supplies according 
to an established formula. Participation in the program 
requires countries to maintain the following capabilities:
          Emergency oil stocks equivalent to 90 days of net oil 
        imports;
          The ability to reduce consumption of oil by 10 
        percent, or be prepared to draw down oil stocks in 
        excess of the 90 day commitment; and
          Legal authority to participate in the system by the 
        Government and private companies.
    Title II of EPCA contains the specific authorities for U.S. 
participation in the IEP. Section 251 provides authority for 
mandatory oil allocation as a last resort in the event 
voluntary emergency sharing fails to achieve its goals. Section 
252 provides a limited anti-trust exemption for U.S. companies 
to participate at the IEA on the IEP allocation and information 
provisions and in tests of the IEA emergency data and sharing 
systems. Section 254 provides the authority for the Executive 
Branch to provide to the IEA information and data related to 
the domestic oil industry.
    Coordination of oil stocks through the IEA increases the 
economic benefits by equitably distributing the burden of 
building and maintaining those stocks. The efforts of other IEA 
countries to build up their own oil stocks and willingness to 
draw on them when necessary are a complement to the U.S. 
Strategic Petroleum Reserve program. The United States has long 
advocated a policy at the IEA of coordinated stockdraws in the 
event of international market disruptions with reliance on the 
allocation procedures under the Emergency Sharing System only 
as a last resort. This is now accepted policy within the IEA.
    During the Persian Gulf crisis, at the urging of the United 
States, the IEA successfully tested a coordinated stockdraw in 
response to the severe economic harm caused by the dramatic 
increase in oil prices. At that time, conditions in the oil 
market did not result in a ``trigger'' situation. U.S. oil 
companies only have the anti-trust protection for sharing 
information at the IEA in a ``trigger'' situation that would 
invoke the Emergency Sharing System. The ``trigger'' under the 
IEP is a 7% physical storage of imports available to a member 
country. The Administration has proposed modifying the anti-
trust provision to cover international emergency response 
actions agreed upon at the IEA. This amendment would provide 
the necessary protections for U.S. oil companies to share 
information with the IEA in anticipation of coordinated actions 
that do not result in physical allocations.
    Title II of EPCA authorizes the Committee on Renewable 
Energy Commerce and Trade (CORECT) and the Committee on Energy 
Efficiency Commerce and Trade (COEECT). CORECT is an 
interagency committee whose 14 Federal agency members work with 
private industry to promote exports of renewable energy 
technologies from the U.S. COEECT performs an identical 
function for energy efficiency technologies.
    The Administration has also proposed extending the 
authorization for the State Energy Conservation programs, the 
Energy Conservation Program for Schools and Hospitals, and the 
Alternative Fuels Truck Commercial Application Program in Title 
III of EPCA.
    Hawaii is the most oil dependent State in the Nation. Oil 
comprises 92 percent of the State's energy supply. A heavy 
dependence on oil, absence of indigenous energy resources, and 
a total reliance on ocean deliveries makes the State 
exceptionally vulnerable to a cutoff of oil supplies. Hawaii's 
distance from the SPR is yet another concern. Honolulu is 7,000 
miles from the SPR loading docks by way of the Panama Canal--
more than one-quarter of the distance around the globe. The 
State's dependence is a function of geography and geology, not 
choice.
    A May 1994 study completed for the Department of Energy by 
the East-West Center, ``Energy Vulnerability Assessment for the 
U.S. Pacific Islands,'' provides strong justification for 
granting Hawaii priority access to SPR sales during a severe 
energy emergency. The study found ``there are very few 
opportunities for the islands to reduce their costs for 
petroleum and their very high dependency on imported petroleum 
products. These characteristics of the islands combined with 
their limited resources have resulted in extreme vulnerability 
to oil supply disruptions.''
    The need for priority SPR access was also addressed in a 
December 1993 DOE/State of Hawaii analysis of Hawaii's energy 
security, which found the following:
    Hawaii depends on imported oil for over 92% of its energy. 
This makes Hawaii the most vulnerable State in the Nation to 
the disruption of its economy and way of life in the event of a 
disruption of the world oil market or rapid oil price 
increases.
    Currently, 40% of Hawaii's oil comes from Alaska and the 
remainder from the Asia-Pacific region. The export capabilities 
of these domestic and foreign sources of supply are projected 
to decline by approximately 50 percent by the year 2000. This 
will likely increase Hawaii's dependence on oil from the 
reserves of the politically unstable Middle East.
    Hawaii is also vulnerable to possible supply disruptions in 
the event of a crisis. The long distance from the U.S. 
Strategic Petroleum Reserve in Louisiana and Texas, combined 
with a declining number of U.S.-flag tankers capable of 
transiting the Panama Canal, make timely emergency deliveries 
problematic. The consequences of an oil supply disruption of 
the U.S. Pacific territories of American Samoa, the 
Commonwealth of the Northern Mariana Islands (CNMI) and Guam 
were also addressed in these studies. There are no refineries 
in these territories. American Samoa is supplied from Hawaii. 
Guam and CNMI are supplied from Singapore. In light of the 
absence of refineries in these locations, the Committee has 
authorized the Secretary to assist the insular areas in 
identifying petroleum supply sources during the period of a 
drawdown.

                          Legislative History

    S. 1605 was introduced on March 12, 1996 by Senator 
Murkowski (by request). A hearing was held on S. 1605 and S. 
186 on March 27, 1996. The Administration transmitted the text 
of S. 1605 as proposed legislation and testified in support of 
both S. 1605 and S. 186 at the March 27, 1996 hearing.

            Committee Recommendation and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on April 24, 1996, by majority vote of a 
quorum present recommends that the Senate pass S. 1605, if 
amended as described herein.
    The rollcall vote on the motion to report an amendment in 
the nature of a substitute was 20 yeas, 0 nays as follows:
        YEAS                          NAYS
Mr. Murkowski
Mr. Hatfield \1\
Mr. Domenici
Mr. Nickles
Mr. Craig
Mr. Campbell
Mr. Thomas
Mr. Kyl \1\
Mr. Grams
Mr. Jeffords \1\
Mr. Burns
Mr. Johnston
Mr. Bumpers
Mr. Ford \1\
Mr. Bradley
Mr. Bingaman
Mr. Akaka
Mr. Wellstone
Mr. Heflin \1\
Mr. Dorgan \1\

    \1\ Indicates vote by proxy.

                          Committee Amendments

    The Committee adopted an amendment in the nature of a 
substitute to S. 1605.

                      Section-by-Section Analysis

           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 paragraph (3) of the Statement 
of Purposes to reflect the bill's elimination of section 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 amend section 105(a) of EPCA by 
providing that the Secretary of the Interior shall 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 (b) 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 (c) 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 (d) 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 (e) 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 (f) 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. This subsection would require 
the Secretary to prepare a statement of policy on Strategic 
Petroleum Reserve development, maintenance and drawdown that 
evaluates the effect of sales of petroleum from the Strategic 
Petroleum Reserve under authorities other than those provided 
by EPCA on the ability of the United States to fulfill its 
obligations under the international energy program. The 
statement of policy is required to 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. Finally the policy statement is required to 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 is required to be published 
in the Federal Register and be subject to public comment, but 
may be prepared without regard to the rulemaking requirements 
of the Administrative Procedure Act, the Department of Energy 
Organization Act, and EPCA.''
    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 (g) 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 has 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 (h) 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 (i) 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 (j) would delete 158 of EPCA.
    Section 158 reruqires 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 (k) would amend the heading for section 159 of 
EPCA to reflect amendment to its contents.
    Subection (l) 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 (f) 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 can reasonably be expected to be filled to 680 
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 under the requirements in section 523 of this 
Act, without regard to the rulemaking requirements of the 
Administrative Procedure Act and section 501 of the Department 
of Energy Organization Act.
    Subsection (m) 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 amend 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 (n) would amend section 161 of EPCA.
    Paragraph (1) would strike subsection 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 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 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 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 (o) 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 (p) 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 (p) 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 (q) 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 (r) 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 limited 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 (s) 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 (t) would amend section 172 of EPCA.
    Paragraph (1) would delete subsections (a) and (b). The 
exemption in subsection 8(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 (u) 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 (v) 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).''
    Subsection (c) would amend section 252 of EPCA, which makes 
available to U.S. 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 1999 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 $26.5 million for 
section 365 and $29 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.

section 7. purchases from the strategic petroleum reserve by the state 
                               of hawaii

    Section 7 amends section 161 of EPCA to add a new 
subsection (j)(1) that provides the State of Hawaii with rights 
to purchase Strategic Petroleum Reserve oil during a drawdown. 
With respect to each offering of SPR oil, the State of Hawaii 
is provided the opportunity to submit a binding offer to 
purchase a specified quantity of oil at the average sale price. 
Petroleum products purchased by the State of Hawaii would have 
preference in the scheduling for lifting and loading on ships 
for delivery to Hawaii.
    Subsection (j)(2) authorizes the Secretary to limit the 
amount of petroleum products sold to the State during an 
offering to one-twelfth of Hawaii's annual oil imports or a 
maximum of 3 percent of any offering.
    Section 7 directs the Secretary to promulgate regulations 
to carry out subsection 161(j) of EPCA. The section also 
provides the Secretary with the discretion to implement 
subsection 161(j) without amending the Strategic Petroleum 
Reserve Plan.
    Section 7 also provides that, at the request of the 
governor of an insular area, during a drawdown of the Strategic 
Petroleum Reserve, the Secretary shall assist the insular area 
in its efforts to maintain adequate supplies of petroleum 
products from traditional and non-traditional suppliers.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the report is available, the 
Chairman will request it to be printed in the Congressional 
Record for the advice of the Senate.

                       Federal Mandate Evaluation

    The Congressional Budget Office federal mandate evaluation 
has been requested but was not received at the time the report 
was filed. When the report is available, the Chairman will 
request that it be printed in the Congressional Record for the 
advice of the Senate.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
implementing S. 1605. The bill is not a regulatory measure in 
the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses above those in existing law.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    There are not likely to be significant paperwork 
requirements for the Department of Energy above those required 
by existing law.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 1605, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                   ENERGY POLICY AND CONSERVATION ACT

                              ----------                              


                     Public Law 94-163, as Amended

   AN ACT To increase domestic energy supplies and availability; to 
  restrain energy demand; to prepare for energy emergencies; and for 
                             other purposes

    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''.

[42 U.S.C. 6201 note]

                            TABLE OF CONTENTS

Sec. 2. Statement of purposes.
Sec. 3. Definitions.

        TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY

                         Part A--Domestic Supply

Sec. 101. Coal conversion.
Sec. 102. Incentives to develop underground coal mines.
Sec. 103. Domestic use of energy supplies and related materials and 
          equipment.
Sec. 104. Materials allocation.
Sec. 105. Prohibition of certain lease bidding arrangements.
[Sec. 106. Production of oil or gas at the maximum efficient rate and 
          temporary emergency production rate.]

                   Part B--Strategic Petroleum Reserve

Sec. 151. Declaration of policy.
Sec. 152. Definitions.
[Sec. 153. Strategic Petroleum Reserve Office.]
Sec. 154. Strategic Petroleum Reserve.
[Sec. 155. Early Storage Reserve.]
Sec. 156. Industrial Petroleum Reserve.
[Sec. 157. Regional Petroleum Reserve.]
[Sec. 158. Other storage reserves.]
Sec. 159. Review by Congress and implementation.
Sec. 160. Petroleum products for storage in the Reserve.
Sec. 161. Drawdown and distribution of the Reserve.
Sec. 162. Coordination with import quota system.
Sec. 163. Disclosure, inspection, investigation.
[Sec. 164. Naval petroleum reserves study.]
Sec. 165. Annual reports.
Sec. 166. Authorization of appropriations.
Sec. 167. SPR Petroleum Account.

  Part C--Authority to Contract for Petroleum Product Not Owned by the 
                              United States

Sec. 171. Contracting for petroleum product and facilities.
Sec. 172. Implementation.
[Sec. 173. Contracts for which no implementing legislation is needed.]
Sec. 174. Contracts for which implementing legislation is needed.

                           Part D--Expiration

Sec. 181. Expiration.

                  TITLE II--STANDBY ENERGY AUTHORITIES

                 [Part A--General Emergency Authorities

[Sec. 201. Conditions of exercise of energy conservation and rationing 
          authorities.
[Sec. 202. Energy conservation contingency plans.
[Sec. 203. Rationing contingency plan.
[Sec. 204. Termination date.]

    Part B--Authorities With Respect to International Energy Program

Sec. 251. International oil allocation.
Sec. 252. International voluntary agreements.
Sec. 253. Advisory committees.
Sec. 254. Exchange of information.
Sec. 255. Relationship of this title to the international energy 
          agreement.
Sec. 256. Domestic renewable energy industry and related service 
          industries.

                 [Part C--Energy Emergency Preparedness

[Sec. 271. Congressional findings, policy, and purpose.
[Sec. 272. Preparation for petroleum supply interruptions.]

                           Part D--Expiration

Sec. 281. Expiration.
     * * * * * * *

                       TITLE V--GENERAL PROVISIONS

             Part A--Energy Data Base and Energy Information

Sec. 501. Verification examinations.
Sec. 502. Powers of the Comptroller General and reports.
Sec. 503. Accounting practices.
Sec. 504. Enforcement.
Sec. 505. Amendment to Energy Supply and Coordination Act of 1974.\1\
---------------------------------------------------------------------------
    \1\ Probably should be ``Amendment to energy Supply and 
Environmental Coordination Act of 1974.''
---------------------------------------------------------------------------
Sec. 506. Extension of energy information gathering authority.
[Sec. 507. Petroleum product information.]

                       Part B--General Provisions

Sec. 521. Prohibition on certain actions.
[Sec. 522. Conflicts of interest.]
Sec. 523. Administrative procedure and judicial review.
Sec. 524. Prohibited acts.
Sec. 525. Enforcement.
Sec. 526. Effect on other laws.
Sec. 527. Transfer of authority.\2\
---------------------------------------------------------------------------
    \2\ Public Law 95-619 repealed sec. 527, but did not amend the 
table of contents.
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Sec. 528. Authorization of appropriations for interim period.
Sec. 529. Intrastate natural gas.
Sec. 530. Limitation on loan guarantees.

                      Part C--Congressional Review

Sec. 551. Procedure for congressional review of Presidential requests to 
          implement certain authorities.
Sec. 552. Expedited procedure for congressional consideration of certain 
          authorities.

                         statement of purposes

    Sec. 2. The purposes of this Act are--
          (1) to grant specific [standby] authority to the 
        President[, subject to congressional review, to impose 
        rationing, to reduce demand for energy through the 
        implementation of energy conservation plans, and] to 
        fulfill obligations of the United States under the 
        international energy program;
          (2) to provide for the creation of a Strategic 
        Petroleum Reserve capable of reducing the impact of 
        severe energy supply interruptions;
          [(3) to increase the supply of fossil fuels in the 
        United States through price incentives and production 
        requirements;]
          (4) to conserve energy supplies through energy 
        conservation programs, and, where necessary, the 
        regulation of certain energy uses;
          (5) to provide for improved energy efficiency of 
        motor vehicles, major appliances, and certain other 
        consumer products;
          (6) to reduce the demand for petroleum products and 
        natural gas through programs designed to provide 
        greater availability and use of this Nation's abundant 
        coal resources;
          (7) to provide a means for verification of energy 
        data to assure the reliability of energy data; and
          (8) to conserve water by improving the water 
        efficiency of certain plumbing products and appliances.

[42 U.S.C. 6201]
          * * * * * * *

        TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY

                        Part A--Domestic Supply

          * * * * * * *

           prohibition of certain lease bidding arrangements

    Sec. 105. [(a) The Secretary of the Interior shall, not 
later than 30 days after the date of enactment of this Act, 
prescribe and make effective a rule which prohibits 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 such person. Such rule shall define 
affiliate relationships and significant ownership interests.]
    (a) The Secretary of the Interior shall permit 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 a person, when 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, unless the 
Secretary determines prior to any lease sale that this bidding 
would adversely affect competition or the receipt of fair 
market value.
          * * * * * * *
    [(c) The Secretary may, in his discretion, consider a 
request from any person described in subsection (a) of this 
section for an exemption from the prohibition of this section. 
In considering any such request, the Secretary may exempt 
bidding for leases for lands in any area only if the Secretary 
finds, on the record after opportunity for an agency hearing, 
that--
          [(1) such lands have extremely high cost exploration 
        or development problems; and
          [(2) exploration and development will not occur on 
        such lands unless such exemption is granted.
Findings of the Secretary under this subsection shall be final, 
and shall not be invalidated unless found to be arbitrary or 
capricious.
    (d) This section shall not be construed to prohibit the 
unitization of producing fields to increase production or 
maximize ultimate recovery of oil or natural gas, or both.
    [(e) The Secretary shall study and report to the Congress, 
not later than 6 months after the date of enactment of this 
Act, with respect to the feasibility and desirability of 
extending the prohibition on joint bidding to--
          [(1) bidding for any right to develop crude oil, 
        natural gas, and natural gas liquids on Federal lands 
        other than those located on the Outer Continental 
        Shelf; and
          [(2) bidding for any right to develop coal and oil 
        shale on such lands.]

[42 U.S.C. 6213]

 [production of oil or gas at the maximum efficient rate and temporary 
                       emergency production rate

    [Sec. 106. (a)(1) The Secretary of the Interior, by rule on 
the record after an opportunity for a hearing, shall, to the 
greatest extent practicable, determine the maximum efficient 
rate of production and, if any, the temporary emergency 
production rate for each field on Federal lands which produces, 
or is determined to be capable of producing, significant 
volumes of crude oil or natural gas, or both.
    [(2) Except as provided in subsection (f), the President 
may, by rule or order, require crude oil or natural gas, or 
both, to be produced from fields on Federal lands designated by 
him--
          [(A) at the maximum efficient rate of production, and
          [(B) during a severe energy supply interruption, at 
        the temporary emergency production rate,
[as determined pursuant to paragraph (1) for such field.
    [(b)(1) Each State or the appropriate agency thereof may, 
for the purposes of this section, pursuant to procedures and 
standards established by the State, determine the maximum 
efficient rate of production and, if any, the temporary 
emergency production rate, for each field (other than a field 
on Federal lands) within such State which produces, or is 
determined to be capable of producing, significant volumes of 
crude oil or natural gas, or both.
    [(2) If a State or the appropriate agency thereof has 
determined the maximum efficient rate of production and, if 
any, the temporary emergency production rate, or both, or their 
equivalents (however characterized), for any field (other than 
a field on Federal lands) within such State, the President may, 
by rule or order, during a severe energy supply interruption, 
require the production of such fields at the rates of 
production established by the State.
    [(c) With respect to any field, which produces, or is 
determined to be capable of producing, significant volumes of 
crude oil, or natural gas, or both, which field is unitized and 
is composed of both Federal lands and lands other than Federal 
lands and there has been no determination of the maximum 
efficient rate of production or the temporary emergency 
production rate of both, the Secretary of the Interior may, 
pursuant to subsection (a)(1), determine a maximum efficient 
rate of production and a temporary emergency production rate, 
if any, for such field. The President may, during a severe 
energy supply interruption by rule or order, require production 
at the maximum efficient rate of production and the temporary 
emergency production rate, if any determined for such field.
    [(d) If loss of ultimate recovery of crude oil or natural 
gas, or both, occurs or will occur as the result of a rule or 
order under the authority of this section to produce at the 
temporary emergency production rate, the owner of any property 
right who considers himself damaged by such order may bring an 
action in a United States district court to recover just 
compensation, which shall be awarded if the court finds that 
such loss constitutes a taking of property compensable under 
the Constitution.
    [(e) As used in this section:
          [(1) The term ``maximum efficient rate of 
        production'' means the maximum rate of production of 
        crude oil or natural gas, or both, which may be 
        sustained without loss of ultimate recovery of crude 
        oil or natural gas, or both, under sound engineering 
        and economic principles.
          [(2) The term ``temporary emergency production rate'' 
        means the maximum rate of production for a field--
                  [(A) which rate is above the maximum 
                efficient rate of production established for 
                such field; and
                  [(B) which may be maintained for a temporary 
                period of less than 90 days without reservoir 
                damage and without significant loss of ultimate 
                recovery of crude oil or natural gas, or both, 
                from such field.
    [(f) Nothing in this section shall be construed to 
authorize the production of crude oil, or natural gas, or both, 
from any Naval Petroleum Reserve subject to the provisions of 
chapter 641 of title 10, United States Code.]

[[42 U.S.C. 6214]]
          * * * * * * *

                Part B \1\--Strategic Petroleum Reserve

                         declaration of policy

    Sec. 151. (a) The Congress finds that the storage of 
substantial quantities of petroleum products will diminish the 
vulnerability of the United States to the effects of a severe 
energy supply interruption, and provide [limited] protection 
from the [short-term] consequences of interruptions in supplies 
of petroleum products.
---------------------------------------------------------------------------
    \1\ Section 805 of the Energy Security Act provided for the 
allocation of lower tier crude oil to the Reserve while the 
entitlements program was effective under the emergency Petroleum 
Allocation Act of 1973. That section also provided for a special 
account for the Reserve, into which proceeds from entitlement and 
Federal royalty oil would be deposited.
---------------------------------------------------------------------------
    [(b) It is hereby declared to be 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, but not less than 150 million barrels of petroleum 
products by the end of the 3-year period which begins on the 
date of enactment of this Act, for the purpose of reducing the 
impact of disruptions in supplies of petroleum products or to 
carry out obligations of the United States under the 
international energy program. It is further declared to be the 
policy of the United States to provide for the creation of an 
Early Storage Reserve, as part of the Reserve, for the purpose 
of providing limited protection from the impact of near-term 
disruptions in supplies of petroleum products or to carry out 
obligations of the United States under the international energy 
program.]
    (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.

                              definitions

    Sec. 152. As used in this part and part C:
          [(1) The term ``Early Storage Reserve'' means that 
        portion of the Strategic Petroleum Reserve which 
        consists of petroleum products stored pursuant to 
        section 155.]
          (2) The term ``importer'' means any person who owns, 
        at the first place of storage, any petroleum product 
        imported into the United States.
          (3) The term ``Industrial Petroleum Reserve'' means 
        that portion of the Strategic Petroleum Reserve which 
        consists of petroleum products owned by importers or 
        refiners and acquired stored, or maintained pursuant to 
        section 156.
          (4) The term ``interest in land'' means any ownership 
        or possessory right with respect to real property, 
        including ownership in fee, an easement, a leasehold, 
        and any subsurface or mineral rights.
          (5) The term ``readily available inventories'' means 
        stocks and supplies of petroleum products which can be 
        distributed or used without affecting the ability of 
        the importer or refiner to operate at normal capacity; 
        such term does not include minimum working inventories 
        or other unavailable stocks.
          (6) The term ``refiner'' means any person who owns, 
        operates, or controls the operation of any refinery.
          [(7) The term ``Regional Petroleum Reserve'' means 
        that portion of the Strategic Petroleum Reserve which 
        consists of petroleum products stored pursuant to 
        section 157.]
          (8) The term ``related facility'' means any necessary 
        appurtenance to a storage facility, including 
        pipelines, roadways, reservoirs, and salt brine lines.
          (9) The term ``Reserve'' means the Strategic 
        Petroleum Reserve.
          (10) The term ``storage facility'' means any facility 
        or geological formation which is capable of storing 
        significant quantities of petroleum products.
          (11) The term ``Strategic Petroleum Reserve'' means 
        petroleum products stored in storage facilities 
        pursuant to this part; such term includes the 
        Industrial Petroleum Reserve[, the Early Storage 
        Reserve, and the Regional Petroleum Reserve].

[15 U.S.C. 6232]

                   strategic petroleum reserve office

    [Sec. 153. There is established, in the Federal Energy 
Administration, a Strategic Petroleum Reserve Office. The 
Secretary, acting through such Office and in accordance with 
this part, shall exercise authority over the establishment, 
management, and maintenance of the Reserve.

[42 U.S.C. 6233]

                      strategic petroleum reserve

    Sec. 154.[(a)(1) A Strategic Petroleum Reserve for the 
storage of up to 1 billion barrels of petroleum products shall 
be created pursuant to this part. By the end of the 3-year 
period which begins on the date of enactment of this Act, the 
Strategic Petroleum Reserve (or the Early Storage Reserve 
authorized by section 155, if no Strategic Petroleum Reserve 
Plan has become effective pursuant to the provisions of section 
159(a)) shall contain not less than 150 million barrels of 
petroleum products.]
          [(2) Beginning on the date of the enactment of the 
        Energy Policy Act of 1992, the President shall take 
        actions to enlarge the Strategic Petroleum Reserve to 
        1,000,000,000 barrels as rapidly as possible. Such 
        actions may include--
                  [(A) petroleum acquisition, transportation, 
                and injection activities at the highest 
                practicable fill rate achievable, subject to 
                the availability of appropriated funds;
                  [(B) contracting for petroleum product not 
                owned by the United States as specified in part 
                C;
                  [(C) contracting for petroleum product for 
                storage in facilities not owned by the United 
                States, except that no such product may be 
                stored in such facilities unless petroleum 
                product stored in facilities owned by the 
                United States on the date such product is 
                delivered for storage is at least 750,000,000 
                barrels;
                  [(D) carrying out the activities described in 
                section 160(h);
                  [(E) the transferring of oil from the Naval 
                Petroleum Reserve; and
                  [(F) other activities specified in this 
                title.]
    (a) A Strategic Petroleum Reserve for the storage of up to 
1 billion barrels of petroleum products shall be created 
pursuant to this part.
    [(b) The Secretary, not later than December 15, 1976, shall 
prepare and transmit to the Congress, in accordance with 
section 551, a Strategic Petroleum Reserve Plan. Such Plan 
shall comply with the provisions of this section and shall 
detail the Secretary's proposals for designing, constructing, 
and filling the storage and related facilities of the Reserve.]
    (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.
    [(c)(1) To the maximum extent practicable and except to the 
extent that any change in the storage schedule is justified 
pursuant to subsection (e)(6), the Strategic Petroleum Reserve 
Plan shall provide that:
          [(A) within 7 years after the date of enactment of 
        this Act, the volume of crude oil stored in the Reserve 
        shall equal the total volume of crude oil which was 
        imported into the United States during the base period 
        specified in paragraph (2);
          [(B) within 18 months after the date of enactment of 
        this Act, the volume of crude oil stored in the Reserve 
        shall equal not less than 10 percent of the goal 
        specified in subparagraph (A);
          [(C) within 3 years after the date of enactment of 
        this Act, the volume of crude oil stored in the Reserve 
        shall equal not less than 25 percent of the goal 
        specified in subparagraph (A); and
          [(D) within 5 years after the date of enactment of 
        this Act, the volume of crude oil stored in the Reserve 
        shall equal not less than 65 percent of the goal 
        specified in subparagraph (A).
Volumes of crude oil initially stored in the Early Storage 
Reserve and volumes of crude oil storage in the Industrial 
Petroleum Reserve, and the Regional Petroleum Reserve shall be 
credited toward attainment of the storage goals specified in 
this subsection.
    [(2) The base period shall be the period of the 3 
consecutive months, during the 24-month period preceding the 
date of enactment of this Act, in which average monthly import 
levels were the highest.]
    (c) 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.
    [(d) The Strategic Petroleum Reserve Plan shall be designed 
to assure, to the maximum extent practicable, that the Reserve 
will minimize the impact of any interruption or reduction in 
imports of refined petroleum products and residual fuel oil in 
any region which the Secretary determines is, or is likely to 
become, dependent upon such imports for a substantial portion 
of the total energy requirements of such region. The Strategic 
Petroleum Reserve Plan shall be designed to assure, to the 
maximum extent practicable, that each noncontiguous area of the 
United States which does not have overland access to domestic 
crude oil production has its conponent of the Strategic 
Petroleum Reserve within its respective territory.
    [(e) The Strategic Petroleum Reserve Plan shall include:
          [(1) a comprehensive environmental assessment;
          [(2) a description of the type and proposed location 
        of each storage facility (other than storage facilities 
        of the Industrial Petroleum Reserve) proposed to be 
        included in the Reserve;
          [(3) a statement as to the proximity of each such 
        storage facility to related facilities;
          [(4) an estimate of the volumes and types of 
        petroleum products proposed to be stored in each such 
        storage facility;
          [(5) a projection as to the aggregate size of the 
        Reserve, including a statement as to the most 
        economically-efficient storage levels for each such 
        storage facility;
          [(6) a justification for any changes, with respect to 
        volumes or dates, proposed in the storage schedule 
        specified in subsection (c), and a program schedule for 
        overall development and completion of the Reserve 
        (taking into account all relevant factors, including 
        cost effectiveness, the need to construct related 
        facilities, and the ability to obtain sufficient 
        quantities of petroleum products to fill the storage 
        facilities to the proposed storage levels);
          [(7) an estimate of the direct cost of the Reserve, 
        including--
                  [(A) the cost of storage facilities;
                  [(B) the cost of the petroleum products to be 
                stored;
                  [(C) the cost of related facilities; and
                  [(D) management and operation costs;
          [(8) an evaluation of the impact of developing the 
        Reserve taking into account--
                  [(A) the availability and the price of 
                supplies and equipment and the effect, if any, 
                upon domestic production of acquiring such 
                supplies and equipment for the Reserve;
                  [(B) any fluctuations in world, and domestic, 
                market prices for petroleum products which may 
                result from the acquisition of substantial 
                quantities of petroleum products for the 
                Reserve;
                  [(C) the extent to which such acquisition may 
                support otherwise declining market prices for 
                such products; and
                  [(D) the extent to which such acquisition 
                will affect competition in the petroleum 
                industry;
          [(9) an identification of the ownership of each 
        storage and related facility proposed to be included in 
        the Reserve (other than storage and related facilities 
        of the Industrial Petroleum Reserve);
          [(10) an identification of the ownership of the 
        petroleum products to be stored in the Reserve in any 
        case where such products are not owned by the United 
        States;
          [(11) a statement of the manner in which the 
        provisions of this part relating to the establishment 
        of the Industrial Petroleum Reserve and the Regional 
        Petroleum Reserve will be implemented; and
          [(12) a Distribution Plan setting forth the method of 
        drawdown and distribution of the Reserve.]

[42 U.S.C. 6234]

                         Early Storage Reserve

    [Sec. 155. (a)(1) The Secretary shall establish an Early 
Storage Reserve as part of the Strategic Petroleum Reserve. The 
Early Storage Reserve shall be designed to store petroleum 
products, to the maximum extent practicable, in existing 
storage capacity. Petroleum products stored in the Early 
Storage Reserve may be owned by the United States or may be 
owned by others and stored pursuant to section 156(b).
    [(2) If the Strategic Petroleum Reserve Plan has not become 
effective under section 159(a), the Early Storage Reserve shall 
contain not less than 150 million barrels of petroleum products 
by the end of the 3-year period which begins on the date of 
enactment of this Act.
    [(b) The Early Storage Reserve shall provide for meeting 
regional needs for residual fuel oil and refined petroleum 
products in any region which the Secretary determines is, or is 
likely to become, dependent upon imports of such oil or 
products for a substantial portion of the total energy 
requirements of such region.
    [(c) Within 90 days the date of enactment of this Act, the 
Secretary shall prepare and transmit to the Congress an Early 
Storage Reserve Plan which shall provide for the storage of not 
less than 150 million barrels of petroleum products by the end 
of 3 years from the date of enactment of this Act. Such plan 
shall detail the Secretary's proposals for implementing the 
Early Storage Reserve requirements of this section. The Early 
Storage Reserve Plan shall, to the maximum extent practicable, 
provide for, and set forth the manner in which, Early Storage 
Reserve facilities will be incorporated into the Strategic 
Petroleum Reserve after the Strategic Petroleum Reserve Plan 
has become effective under section 159(a). The Early Storage 
Reserve Plan shall include, with respect to the Early Storage 
Reserve, the same or similar assessments, statements, 
estimates, evaluations, projections, and other information 
which section 154(e) requires to be included in the Strategic 
Petroleum Reserve Plan, including a Distribution Plan for the 
Early Storage Reserve.]

[42 U.S.C. 6235]

                      industrial petroleum reserve

    Sec. 156. (a) The Secretary may establish an Industrial 
Petroleum Reserve as part of the Strategic Petroleum Reserve.
    (b) [To implement the Early Storage Reserve Plan or the 
Strategic Petroleum Reserve Plan which has taken effect 
pursuant to section 159(a), the] The Secretary may require each 
importer of petroleum products and each refiner to (1) acquire, 
and (2) store and maintain in readily available inventories, 
petroleum products in amounts determined by the Secretary, 
except that the Secretary may not require any such importer or 
refiner to store such petroleum products in an amount greater 
than 3 percent of the amount imported or refined by such 
person, as the case may be, during the previous calendar year. 
Petroleum products imported and stored in the Industrial 
Petroleum Reserve shall be exempt from any tariff or import 
license fee.
    (c) The Secretary shall implement this section in a manner 
which is appropriate to the maintenance of an economically 
sound and competitive petroleum industry. The Secretary shall 
take such steps as are necessary to avoid inequitable economic 
impacts on refiners and importers, and he may grant relief to 
any refiner or importer who would otherwise incur special 
hardship, inequity, or unfair distribution of burdens as the 
result of any rule, regulation, or order promulgated under this 
section. Such relief may include full or partial exemption from 
any such rule, regulation, or order and the issuance of an 
order permitting such an importer or refiner to store petroleum 
products owned by such importer or refiner in surplus storage 
capacity owned by the United States.

[42 U.S.C. 6236]

                       regional petroleum reserve

    [Sec. 157. (a)(1) The Strategic Petroleum Reserve Plan 
shall provide for the establishment and maintenance of a 
Regional Petroleum Reserve in, or readily accessible to, each 
Federal Energy Administration Region, as defined in title 10, 
Code of Federal Regulations in effect on November 1, 1975, in 
which imports of residual fuel oil or any refined petroleum 
product, during the 24-month period preceding the date of 
computation, equal more than 20 percent of demand for such oil 
or product in such regions during such period, as determined by 
the Secretary. Such volume shall be computed annually.
    [(2) For the purpose of carrying out this section--
          [(A) any State that is an island shall be considered 
        to be a separate Federal Energy Administration Region, 
        as defined in title 10, Code of Federal Regulations, as 
        in effect on November 1, 1975;
          [(B) determinations made with respect to Regions, 
        other than States that are islands, shall be made as if 
        the islands were not part of the Regions; and
          [(C) with respect to determinations made for any 
        State that is an island, the term ``refined petroleum 
        product'' shall have the same meaning given the term 
        ``petroleum product'' in section 3(3).
    [(b) To implement the Strategic Petroleum Reserve Plan, the 
Secretary shall accumulate and maintain in or near any such 
Federal Energy Administration Region described in subsection 
(a), a Regional Petroleum Reserve containing volumes of such 
oil or product, described in subsection (a), at a level 
adequate to provide substantial protection against an 
interruption or reduction in imports of such oil or product to 
such region, except that the level of any such Regional 
Petroleum Reserve shall not exceed the aggregate volume of 
imports of such oil or product into such region during the 
period of the 3 consecutive months, during the 24-month period 
specified in subsection (a), in which average monthly import 
levels were the highest, as determined by the Secretary. Such 
volume shall be computed annually.
    [(c) The Secretary may place in storage crude oil, residual 
fuel oil, or any refined petroleum product in substitution for 
all or part of the volume of residual fuel oil or any refined 
petroleum product stored in any Regional Petroleum Reserve 
pursuant to the provisions of this section if he finds that 
such substitution (1) is necessary or desirable for purposes of 
economy, efficiency, or for other reasons, and (2) may be made 
without delaying or otherwise adversely affecting the 
fulfillment of the purpose of the Regional Petroleum Reserve.]

[42 U.S.C. 6237]

                         other storage reserves

    [Sec. 158. Within 6 months after the Strategic Petroleum 
Reserve Plan is transmitted to the Congress, pursuant to the 
requirements of section 154(b), the Secretary shall prepare and 
transmit to the Congress a report setting forth his 
recommendations concerning the necessity for, and feasibility 
of, establishing--
          [(1) Utility Reserves containing coal, residual fuel 
        oil, and refined petroleum products, to be established 
        and maintained by major fossil-fuel-fired baseload 
        electric power generating stations;
          [(2) Coal Reserves to consist of (A) federally-owned 
        coal which is mined by or for the United States from 
        Federal lands, and (B) Federal lands from which coal 
        could be produced with minimum delay; and
          [(3) Remote Crude Oil and Natural Gas Reserves 
        consisting of crude oil and natural gas to be acquired 
        and stored by the United States, in place, pursuant to 
        a contract or other agreement or arrangement entered 
        into between the United States and persons who 
        discovered such oil or gas in remote areas.]

[42 U.S.C. 6238]

  [review by congress and implementation] Development, Operation, and 
                       Maintenance of the Reserve

    Sec. 159. [(a) The Strategic Petroleum Reserve Plan shall 
not become effective and may not be implemented, unless--
          [(1) the Secretary has transmitted such Plan to the 
        Congress pursuant to section 154(b); and
          [(2) neither House of Congress has disapproved (or 
        both Houses have approved) such Plan, in accordance 
        with the procedures specified in section 551.
    [(b) For purposes of congressional review of the Strategic 
Petroleum Reserve Plan under subsection (a), the 5 calendar 
days described in section 551 (c) and (d) shall be lengthened 
to 45 calendar days.
    [(c) The Secretary may, prior to transmittal of the 
Strategic Petroleum Plan, prepare and transmit to the Congress 
proposals for designing, constructing, and filling storage or 
related facilities. Any such proposal shall be accompanied by a 
statement explaining (1) the need for action on such proposals 
prior to completion of such Plan, (2) the anticipated role of 
the proposed storage or related facilities in such Plan, and 
(3) to the maximum extent practicable, the same or similar 
assessments, statements, estimates, evaluations, projections, 
and other information which section 154(e) requires to be 
included in the Strategic Petroleum Reserve Plan.
    [(d) The Secretary may prepare amendments to the Strategic 
Petroleum Reserve Plan or to the Early Storage Reserve Plan. He 
shall transmit any such amendment to the Congress together with 
a statement explaining the need for such amendment and, to the 
maximum extent practicable, the same or similar assessments, 
statements, estimates, evaluations, projections, and other 
information which section 154(e) requires to be included in the 
Strategic Petroleum Reserve Plan.
    [(e) Subject to section 161(g)(2), any amendment 
transmitted pursuant to subsection (d) may not become effective 
until 60 days after the date of such transmittal, except that 
such 60-day period shall not apply if the President determines 
that such amendment is required by a severe energy supply 
interruption or by obligations of the United States under the 
international energy program.
    [(f) To the extent necessary or appropriate to implement--
          [(2) the Early Storage Reserve Plan;
          [(3) any proposal described in subsection (c), or any 
        amendment described in subsection (d), which such 
        proposal or amendment has taken effect pursuant to 
        subsection (e);
          [(4) any technical or clerical amendment or any 
        amendment to the Early Storage Reserve Plan; and
          [(5) the storage of petroleum products in interim 
        storage facilities,
    the Secretary may:
          [(A) promulgate rules, regulations, or orders;
          [(B) acquire by purchase, condemnation, or otherwise, 
        land or interests in land for the location of storage 
        and related facilities;
          [(C) construct, purchase, lease, or otherwise acquire 
        storage and related facilities;
          [(D) use, lease, maintain, sell, or otherwise dispose 
        of storage and related facilities acquired pursuant to 
        this part;
          [(E) acquire, subject to the provisions of section 
        160, by purchase, exchange, or otherwise, petroleum 
        products for storage in the Strategic Petroleum 
        Reserve, including the Early Storage Reserve and the 
        Regional Petroleum Reserve;
          [(F) store petroleum products in storage facilities 
        owned and controlled by the United States or in storage 
        facilities owned by others if such facilities are 
        subject to audit by the United States;
          [(G) execute any contracts necessary to carry out the 
        provisions of such Strategic Petroleum Reserve Plan, 
        Early Storage Reserve Plan, proposal or amendment;
          [(H) require any importer of petroleum products or 
        any refiner to (A) acquire, and (B) store and maintain 
        in readily available inventories, petroleum products in 
        the Industrial Petroleum Reserve, pursuant to section 
        156;
          [(I) require the storage of petroleum products in the 
        Industrial Petroleum Reserve, pursuant to section 156, 
        on such reasonable terms as the Secretary may specify 
        in storage facilities owned and controlled by the 
        United States or in storage facilities other than those 
        owned by the United States if such facilities are 
        subject to audit by the United States;
          [(J) require the maintenance of the Industrial 
        Petroleum Reserve;
          [(K) maintain the Reserve; and
          [(L) bring an action, whenever he deems it necessary 
        to implement the Strategic Petroleum Reserve Plan, in 
        any court having jurisdiction of such 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 thereon or used therewith.]
    (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 interest in land, together with 
        any personal property located on or used within 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 authorized to store in underutilized 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.
    (g) Before any condemnation proceedings are instituted, an 
effort shall be made to acquire the property involved by 
negotiation, unless, the effort to acquire such property by 
negotiation would, in the judgment of the Secretary be futile 
or so time-consuming as to unreasonably delay the 
[implementation] development of the Strategic Petroleum Reserve 
[Plan], because of (1) reasonable doubt as to the identity of 
the owners, (2) the large number of persons with whom it would 
be necessary to negotiate, or (3) other reasons.
    [(h)(1) No amendment to the Strategic Petroleum Reserve 
Plan relating to interim storage facilities shall be required 
prior to the storage of petroleum products in such facilities.
    [(2) Petroleum products stored in interim storage 
facilities pursuant to this part shall be considered to be in 
storage in the Reserve.
    [(3)(A) No action relating to the storage of petroleum 
products in existing interim storage facilities in the Reserve 
shall be deemed to be ``a major Federal action significantly 
affecting the quality of the human environment'' within the 
meaning of that term as it is used in section 102(2)(C) of the 
National Environmental Policy Act of 1969.
    [(B) For purposes of this paragraph, an interim storage 
facility shall be considered to be an existing interim storage 
facility if it--
          [(i) is in existence on July 1, 1982;
          [(ii) was constructed in a manner appropriate for 
        storing petroleum products; and
          [(iii) is not modified after July 1, 1982, in any 
        manner which substantially increases the storage 
        capacity of the facility. Any modification of such 
        facility may not include replacement or reconstruction.
    [(4) The term ``interim storage facilities'', when used in 
this part, may include any vessel which meets the applicable 
requirements under this part.
    [(i) No later than 18 months after the date of the 
enactment of the Energy Policy and Conservation Act Amendments 
of 1990, the Secretary shall transmit to the Committee on 
Energy and Natural Resources of the Senate and the Committee on 
Energy and Commerce of the House of Representatives a report on 
the results of negotiations undertaken pursuant to part C. The 
report shall--
          [(1) describe the terms of any contracts negotiated 
        pursuant to part C and any cost savings that would 
        result from such contracts relative to the costs of 
        acquisition pursuant to part B; and
          [(2) give all available information on any cost 
        savings that would likely result from additional 
        contracts that could be negotiated pursuant to part C 
        for completion of the storage of one billion barrels of 
        petroleum product in the Reserve relative to the costs 
        of acquisition pursuant to part B.
    [(j) No later than 24 months after the date of the 
enactment of the Energy Policy and Conservation Act Amendments 
of 1990, the Secretary shall amend the Strategic Petroleum 
Reserve Plan to prescribe plans for completion of storage of 
one billion barrels of petroleum product in the Reserve. Such 
amendment shall comply with the provisions of this section and 
shall detail the Secretary's plans for the design, 
construction, leasing or other acquisition, and fill or storage 
and related facilities of the Reserve to achieve such one 
billion barrels of storage. Such amendment shall not be subject 
to the congressional review procedures contained in section 
551. In assessing alternatives in the development of such 
plans, the Secretary shall consider leasing privately owned 
storage facilities.]
    (j) When the Secretary determines that a 680,000 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.
    (k) A storage or related facility of the Strategic 
Petroleum Reserve owned by or leased to the United States is 
not subject to the Interstate Commerce Act.
    [(l) Notwithstanding subsection (d), during any period in 
which the Distribution Plan is being implemented, the Secretary 
may amend the plan and promulgate rules, regulations, or orders 
to implement such amendments in accordance with section 523 of 
this Act, without regard to the requirements of section 553 of 
title 5, United States Code, and section 501 of the Department 
of Energy Organization Act (42 U.S.C. 7191). Such amendments 
shall be transmitted to the Congress together with a statement 
explaining the need for such amendments.]
    (1) 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 523 of this Act, without regard to rulemaking 
requirements in section 553 of title 5, United States Code, and 
section 501 of the Department of Energy Organization Act (42 
U.S.C. 7191).

[42 U.S.C. 6239]

             petroleum products for storage in the reserve

    Sec. 160. [(a) The Secretary is authorized, for purposes of 
implementing the Strategic Petroleum Reserve Plan or the Early 
Storage Reserve Plan, to place in storage, transport, or 
exchange]--(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
          (1) crude oil produced from Federal lands, including 
        crude oil produced from the Naval Petroleum Reserves to 
        the extent that such production is authorized by law;
          (2) crude oil which the United States is entitled to 
        receive in kind as royalties from production on Federal 
        lands; and
          (3) petroleum products acquired by purchase, 
        exchange, or otherwise.
    (b) The Secretary shall, to the greatest extent 
practicable, acquire petroleum products for the Reserve, 
[including the Early Storage Reserve and the Regional petroleum 
Reserve] in a manner consonant with the following objectives:
          (1) minimization of the cost of the Reserve;
          [(2) orderly development of the Naval Petroleum 
        Reserves to the extent authorized by law;]
          (3) minimization of the Nation's vulnerability to a 
        severe energy supply interruption;
          (4) minimization of the impact of such acquisition 
        upon supply levels and market forces; and
          (5) encouragement of competition in the petroleum 
        industry.
    [(c)(1)(A) The President shall immediately undertake, and 
thereafter continue, petroleum products acquisition, 
transportation, and injection activities, to the extent funds 
are available pursuant to section 167 (b)(2) and (b)(3), at a 
level sufficient to assure that the petroleum products in the 
Strategic Petroleum Reserve will be increased at an average 
annual rate of at least the minimum required fill rate until 
the quantity of petroleum products stored within the Strategic 
Petroleum Reserve is at least 500,000,000 barrels.
    [(B) Subject to subparagraph (C), the minimum required fill 
rate shall be 300,000 barrels per day for purposes of 
subparagraph (A), unless there is in effect a finding by the 
President in his discretion for good cause that compliance with 
such rate would not be in the national interest. Any finding by 
the President under this subparagraph takes effect on the date 
such finding is transmitted to the Congress and ceases to have 
effect at the end of the fiscal year in which such finding was 
made. Any such finding transmitted to the Congress shall 
include a statement of the facts upon which the findings is 
based. Any such finding shall not be subject to judicial 
review.
    [(C) The minimum required fill rate shall be 220,000 
barrels per day for purposes of subparagraph (A) during the 
period in which any finding by the President under subparagraph 
(B) is in effect.
    [(D)(i) If funds are available in any given fiscal year 
after fiscal year 1982 to achieve an average annual fill rate 
higher than the minimum required fill rate in effect under 
subparagraph (C), the minimum required fill rate shall be the 
highest practicable fill rate achievable, subject to the 
availability of appropriated funds.
    [(ii) The Impoundment Control Act of 1974 (31 U.S.C. 1400 
and following) shall apply to funds made available under 
section 167 (b) and (e).
    [(2) After the Strategic Petroleum Reserve reaches a level 
of 500,000,000 barrels, the President shall immediately seek to 
undertake, and thereafter continue, petroleum products 
acquisition, transportation, and injection activities at a 
level sufficient to assure that the petroleum products in the 
Strategic Petroleum Reserve will be increased at an average 
annual rate of at least 300,000 barrels per day until the 
quantity of petroleum products stored within the Strategic 
Petroleum Reserve is at least 750,000,000 barrels.
    [(3) Notwithstanding paragraph (2), beginning in fiscal 
year 1987 and continuing through fiscal year 1994 until the 
quantity of crude oil in storage within the Reserve is at least 
1,000,000,000 barrels, the President shall carry out petroleum 
acquisition, transportation, and injection activities at the 
highest practicable fill rate achievable, subject to the 
availability of appropriated funds.
    [(d)(1) Notwithstanding any other provision of law, no 
portion of the United States share of crude oil in Naval 
Petroleum Reserve Numbered 1 (Elk Hills) may be sold or 
otherwise disposed of other than to the Strategic Petroleum 
Reserve (either directly or by exchange) during any fiscal 
year, except as provided in paragraph (2), unless--
          [(A) the quantity of crude oil in storage within 
        Government owned facilities of the Strategic the 
        Petroleum Reserve is at least 750,000,000 barrels; or
          [(B) acquisition, transportation, and injection 
        activities for the Reserve are being undertaken for 
        that fiscal year at a level sufficient to assure that 
        crude oil in storage in the Strategic Petroleum Reserve 
        will be increased at an average rate of at least 75,000 
        barrels per day for that fiscal year and the Secretary 
        has amended the Strategic Petroleum Reserve Plan as 
        required by section 159(j).
    [(2) The requirements of paragraph (1) shall not apply to 
the United States share of crude oil in the Naval Petroleum 
Reserve Numbered 1 which is--
          [(A) sold to small refiners under section 7430(d) of 
        title 10, Untied States Code;
          [(B) produced, consistent with sound engineering 
        practices, for the purposes of preventing a reduction 
        in the total quantity of crude oil available for 
        ultimate recovery from the Naval Petroleum Reserve 
        Numbered 1, and the amount produced is the minimum 
        necessary to prevent such reduction; or
          [(C) produced for national defense purposes under 
        section 7422(b)(2) of title 10, United States Code, 
        pursuant to an authorization of Congress under that 
        section during the preceding 9-month period.
    [(3) In determining the number of barrels of crude oil for 
purposes of subparagraph (A) of paragraph (1), any crude oil 
drawdown from the Reserve as a result of any drawdown and 
distribution carried out under section 161(g) and not replaced 
under section 161(g)(6)(B) shall be considered to be within the 
Reserve.
    [(4) For any fiscal year in which purchases of petroleum 
products are suspended, or the sale of petroleum products is 
carried out, under subsection (f), the fill-rate requirements 
of paragraph (1)(B) shall be reduced by--
          [(A) the amount of petroleum products are acquired 
        for such fiscal year as a result of such suspension; 
        plus
          [(B) the amount of petroleum products sold under such 
        subsection during such fiscal year.
    [(e)(1) The provisions of subsections (c) and (d) shall not 
apply (A) if there is in effect an order of the President 
directing drawdown and distribution pursuant to section 161 or 
(B) if--
          [(i) the President has found in his discretion that 
        compliance with such provisions significantly impairs 
        the ability of the United States to respond to a severe 
        energy supply interruption or to meet the obligations 
        of the United States under the international energy 
        program; and
          [(ii) the President has transmitted such finding to 
        the Congress.
    [(2) The suspension of application of subsections (c) and 
(d) under paragraph (1)(B) may become effective on the day the 
finding is transmitted to the Congress and shall terminate nine 
months thereafter or on such date as is specified in such 
finding.
    [(3) The period of any suspension of subsections (c) and 
(d) under this subsection, and the quantity of any petroleum 
product involved, shall be disregarded in applying the 
provisions of such subsections for periods following such 
suspension.]
    (f) If the Secretary finds that a severe energy supply 
interruption may be imminent, the Secretary may suspend the 
acquisition of petroleum product for, and the injection of 
petroleum product into, the Reserve and may sell any petroleum 
product acquired for and in transit to, but not injected into, 
the Reserve.
    [(g)(1) The Secretary shall conduct a test program of 
storage of refined petroleum products within the Reserve. The 
test program shall commence during fiscal year 1992 and 
continue through fiscal year 1994. The test program shall 
demonstrate mechanisms for storage of refined petroleum 
products within the Reserve which may be drawn down in 
accordance with this part.
    [(2) The mechanisms demonstrated under paragraph (1)--
    [(A) shall include the acquisition by lease or purchase, or 
both, of refined petroleum products for storage in the Reserve 
and shall include the acquisition by lease of storage 
facilities; and
          [(B) may include other mechanisms including, but not 
        limited to, industrial petroleum reserves pursuant to 
        section 156 and State set-aside programs, except that 
        such mechanisms must provide equivalent control over 
        the drawdown and distribution of such refined petroleum 
        products as is provided under this part.
      [(3) Any refined petroleum products stored in the Reserve 
under this subsection shall be stored in locations to be 
determined by the Secretary, taking into account the proximity 
of existing distribution systems, the proximity of the area or 
areas of the United States most dependent on imported petroleum 
products or likely to experience shortages of refined petroleum 
products, and the capability for expeditious distribution to 
such area or areas.
    [(4) In the conduct of the test program under paragraph 
(1), the Secretary shall increase the quantity of refined 
petroleum products acquired for storage in the Reserve by an 
amount equal to 10 percent of the fill of the Reserve during 
each of the fiscal years 1992, 1993, and 1994, except that the 
Secretary may not expend more than 10 percent of the funds 
appropriated for the acquisition, transportation and injection 
of petroleum products into the Reserve during each of the 
fiscal years covered by the test program.
    [(5) In the conduct of the test program under paragraph 
(1), the Secretary may not construct or purchase facilities for 
the storage or refined petroleum products.
    [(6) Refined petroleum products stored in the Reserve under 
the test program may be withdrawn from the Reserve before the 
conclusion of the test program--
          [(A) as may be necessary to turn such products over 
        because of changes in the physical characteristics of 
        the product; or
          [(B) on the basis of a finding made under section 
        161.
    [(7) No later than January 31, 1994, the Secretary shall 
transmit to the Congress a report on the test program. The 
report shall evaluate the mechanisms demonstrated under the 
test program, other potential mechanisms, and the purchase of 
facilities. The report shall include an assessment of the costs 
and benefits of the various mechanisms. The report shall also 
make recommendations with regard to future storage of refined 
petroleum products and contain drafts of any legislative 
provision which the Secretary wishes to recommend.]
    (h)(1) If the President finds that declines in the 
production of oil from domestic resources pose a threat to 
national energy security, the President may direct the 
Secretary to acquire oil from domestic production of stripper 
well properties for storage in the Strategic Petroleum Reserve. 
Except as provided in paragraph (2), the Secretary may set such 
terms and conditions as he deems necessary for such 
acquisition.
    (2) Crude oil purchased by the Secretary pursuant to this 
subsection shall be by competitive bid. The price paid by the 
Secretary--
          (A) shall take into account the cost of production 
        including costs of reservoir and well maintenance; and
          (B) shall not exceed the price that would have been 
        paid if the Secretary had acquired petroleum products 
        of a similar quality on the open market under 
        competitive bid procedures without regard to the source 
        of the petroleum products.

[42 U.S.C. 6240]

                drawdown and distribution of the reserve

    Sec. 161. (a) The Secretary may drawdown and distribute the 
Reserve only in accordance with the provisions of this section.
    [(b) Except as provided in subsections (c), (f), and (g), 
no drawdown and distribution of the Reserve may be made except 
in accordance with the provisions of the Distribution Plan 
contained in the Strategic Petroleum Reserve Plan which has 
taken effect pursuant to section 159(a).
    [(c) Drawdown and distribution of the Early Storage Reserve 
may be made in accordance with the provisions of the 
Distribution Plan contained in the Early Storage Reserve Plan 
until the Strategic Petroleum Reserve Plan has taken effect 
pursuant to section 159(a).
    [(d)(1) Neither the distribution Plan contained in the 
Strategic Petroleum Reserve Plan nor the Distribution Plan 
contained in the Early Storage Reserve Plan may be implemented, 
and no drawdown and distribution of the Reserve or the Early 
Storage Reserve may be made, unless the President has found 
that implementation of either such Distribution Plan is 
required by a severe energy supply interruption or by 
obligations of the United States under the international energy 
program.]
    (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.
    (2) For purposes of this section, in addition to the 
circumstances set forth in section 3(8), a severe energy supply 
interruption shall be deemed to exist if the President 
determines that--
          (A) an emergency situation exists and there is a 
        significant reduction in supply which is of significant 
        scope and duration;
          (B) a severe increase in the price of petroleum 
        products has resulted from such emergency situation; 
        and
          (C) such price increase is likely to cause a major 
        adverse impact on the national economy.
    [(e) The Secretary may, by rule, provide for the allocation 
of any petroleum product withdrawn from the Strategic Petroleum 
Reserve in amounts specified in (or determined in a manner 
prescribed by) and at prices specified in (or determined in a 
manner prescribed by) such rules. Such price levels and 
allocation procedures shall be consistent with the attainment, 
to the maximum extent practicable, of the objectives specified 
in section 4(b)(1) of the Emergency Petroleum Allocation Act of 
1973.]
    (e)(1) The Secretary shall sell any petroleum product 
withdrawn from the Strategic Petroleum Reserve at public sale 
of 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.
    (f) The Secretary may permit any importer or refiner who 
owns any petroleum products stored in the Industrial Petroleum 
Reserve pursuant to section 156 to remove or otherwise dispose 
of such products upon such terms and conditions as the 
Secretary may prescribe.
    (g)(1) The Secretary shall conduct a continuing evaluation 
of the [Distribution Plan] distribution procedures. In the 
conduct of such evaluation, the Secretary is authorized to 
carry out test drawdown and distribution of crude oil from the 
Reserve. If any such test drawdown includes the sale or 
exchange of crude oil, then the aggregate quantity of crude oil 
withdrawn from the Reserve may not exceed 5,000,000 barrels 
during any such test drawdown or distribution.
    [(2) The Secretary shall carry out such drawdown and 
distribution in accordance with the Distribution Plan and 
implementing regulations and contract provisions, modified as 
the Secretary considers appropriate taking into consideration 
the artificialities of a test and the absence of a severe 
energy supply interruption. To meet the requirements of 
subsections (d) and (e) of section 159, the Secretary shall 
transmit any such modification of the Plan, along with 
explanatory and supporting material, to both Houses of the 
Congress no later than 15 calendar days prior to the offering 
of any crude oil for sale under this subsection.]
    (3) At least part of the crude oil that is sold or 
exchanged under this subsection shall be sold or exchanged to 
or with entities that are not part of the Federal Government.
    (4) The Secretary may not sell any crude oil under this 
subsection at a price less than that which the Secretary 
determines appropriate and, in no event, at a price less than 
[90] 95 percent of the sales price, as estimated by the 
Secretary, of comparable crude oil being sold in the same area 
at the time the Secretary is offering crude oil for sale in 
such area under this subsection.
    (5) The Secretary may cancel any offer to sell or exchange 
crude oil as part of any drawdown and distribution under this 
subsection if the Secretary determines that there are 
insufficient acceptable offers to obtain such crude oil.
    [(6)(A) The minimum required fill rate in effect for any 
fiscal year shall be reduced by the amount of any crude oil 
drawdown from the Reserve under this subsection during such 
fiscal year.
    [(B) In the case of a sale of any crude oil under this 
subsection, the Secretary shall, to the extent funds are 
available in the SPR Petroleum Account as a result of such 
sale, acquire crude oil for the Reserve within the 12-month 
period beginning after the completion of the sale. Such 
acquisition shall be in addition to any acquisition of crude 
oil for the Reserve required as part of a fill rate established 
by any other provision of law.]
    (7) Rules, regulations, or orders issued in order to carry 
out this subsection which have the applicability and effect of 
a rule as defined in section 551(4) of title 5, United States 
Code, shall not be subject to the requirements of subchapter II 
of chapter 5 of such title or to section 523 of this Act.
    (8) The Secretary shall transmit to both Houses of the 
Congress a detailed explanation of the drawdown and 
distribution carried out under this subsection. Such 
explanation may be a part of any report made to the President 
and the Congress under section 165.
    [(h)(1)] If the President finds that--
          (A) a circumstance, other than those described in 
        subsection (d), exists that constitutes, or is likely 
        to become, a domestic or international energy supply 
        shortage of significant scope or duration; and
          (B) action taken under this subsection would assist 
        directly and significantly in preventing or reducing 
        the adverse impact of such shortage,
then the Secretary may, subject to the limitations of paragraph 
(2), draw down and distribute the Strategic Petroleum Reserve.
    (2) In no case may the Reserve be drawn down under this 
subsection--
          (A) in excess of an aggregate of 30,000,000 barrels 
        with respect to each such shortage;
          (B) for more than 60 days with respect to each such 
        shortage;
          (C) if there are fewer than 500,000,000 barrels of 
        petroleum product stored in the Reserve; or
          (D) below the level of an aggregate of 500,000,000 
        barrels of petroleum product stored in the Reserve.
    (3) During any period in which there is a drawdown and 
distribution of the Reserve in effect under this subsection, 
the Secretary shall transmit a monthly report to the Congress 
containing an account of the drawdown and distribution of 
petroleum products under this subsection and an assessment of 
its effect.
    (4) In no case may the drawdown under this subsection be 
extended between 60 days with respect to any domestic energy 
supply shortage.
    (i) Notwithstanding any other law, the President may permit 
any petroleum products withdrawn from the Strategic Petroleum 
Reserve in accordance with this section to be sold and 
delivered for refining or exchange outside of the United 
States, in connection with an arrangement for the delivery of 
refined petroleum products to the United States.
    (j)(1) With respect to each 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 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 petroleum product within the category that 
                is the subject of the offering; and
                  (ii) submit one or more alternative offers, 
                for other categories of petroleum product, that 
                will be binding in the event that 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, 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.
    (2)(A) In administering this subsection, and with respect 
to 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) The Secretary may limit the quantity of petroleum 
        product that the State of Hawaii may purchase through a 
        binding offer at any one offering to one-twelfth of the 
        total quantity of imports of petroleum product brought 
        into the State during the previous year (or other 
        period determined by the Secretary to be 
        representative).
          (C) The Secretary may limit the quantity that may be 
        purchased through binding offers at any one offering to 
        3 percent of the offering.
    (3) Notwithstanding any limitation imposed under paragraph 
(2), in administering this subsection, and with respect to each 
offering, the Secretary shall, at the request of the Governor 
of the State of Hawaii, or an eligible entity certified under 
paragraph (6), adjust the quantity to be sold to the State of 
Hawaii as follows:
          (A) 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 one 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.
          (B) 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.
    (4) The State of Hawaii may enter into an exchange or a 
processing agreement that requires delivery to other locations, 
so long as petroleum product of similar value or quantity is 
delivered to the State of Hawaii.
    (5) 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.
    (6)(A) Notwithstanding the foregoing, and subject to 
subparagraphs (B) and (C), 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 effectuate the 
purposes of this Act, such eligible entity may act on behalf of 
the State of Hawaii for purposes of this subsection.
          (B) The Governor of the State of Hawaii shall not 
        certify more than one eligible entity under this 
        paragraph for each notice of sale.
          (C) 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 such 
        company under the paragraph.
    (7) 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 in its efforts to maintain adequate supplies of 
petroleum products from traditional and non-traditional 
suppliers.
    (8) As used in this subsection--
          (A) 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 this Act, that obligates the 
        offeror to take title to the petroleum product without 
        further negotiation or recourse to withdraw the offer;
          (B) the term ``category of petroleum product'' means 
        a master line item within a notice of sale;
          (C) the term ``eligible entity'' means an entity that 
        owns or controls a refinery that is located within the 
        State of Hawaii;
          (D) 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) the term ``insular area'' means Guam, American 
        Samoa, the Commonwealth of the Northern Mariana 
        Islands, the Virgin Islands, Puerto Rico, and the 
        freely associated states of the Republic of Palau, 
        Federated States of Micronesia, and Republic of the 
        Marshall Islands;
          (F) 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; and
          (G) 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.
          * * * * * * *

                     Naval Petroleum Reserves Study

    [Sec. 164. the Secretary shall, in cooperation and 
consultation with the Secretary of the Navy and the Secretary 
of the Interior, develop and submit to the Congress within 180 
days after the date of enactment of this Act, a written report 
recommending procedures for the exploration, development, and 
production of Naval Petroleum Reserve Number 4. Such report 
shall include recommendations for protecting the economic, 
social, and environmental interests of Alaska Natives residing 
within the Naval Petroleum Reserve Number 4 and analyses of 
arrangements which provide for (1) participation by private 
industry and private capital, and (2) leasing to private 
industry. The Secretary of the Navy and the Secretary of the 
Interior shall cooperate fully with one another and with the 
Secretary; the Secretary of the Navy shall provide to the 
Secretary and the Secretary of the Interior all relevant data 
on Naval Petroleum Reserve Number 4 in order to assist the 
Secretary in the preparation of such report.]

[[42 U.S.C. 6244]]

                             Annual Reports

    [Sec. 165. (a) The Secretary shall report to the President 
and the Congress, not later than one year after the transmittal 
of the Strategic Petroleum Reserve Plan to the Congress and 
each year thereafter, on all actions taken to implement this 
part. Such report shall include--
          [(1) a detailed statement of the status of the 
        Strategic Petroleum Reserve, including--
                  [(A) an estimate of the final capacity of the 
                Reserve and the scheduled annual fill rate for 
                achieving such capacity;
                  [(B) the scheduled quarterly fill rate for 
                the 12-month period beginning on the date on 
                which such report is transmitted;
                  [(C) the type and quality of crude oil to be 
                acquired for the Reserve pursuant to the 
                schedule described in subparagraph (A);
                  [(D) the schedule of construction of any 
                facilities needed to achieve the final capacity 
                of the Reserve, including a description of the 
                type and location of such facilities and of 
                enhancements and improvements to existing 
                facilities;
                  [(E) an estimate of the cost of acquiring 
                crude oil and constructing facilities necessary 
                to complete the Reserve;
                  [(F) a description of the current 
                distribution plan for using the Reserve, 
                including the method of drawdown and 
                distribution to be utilized; and
                  [(G) an explanation of any changes made in 
                the matters described in subparagraphs (A) 
                through (F) since the transmittal of the 
                previous report under this subsection;
        [(2) a summary of the actions taken to develop and 
        implement the Strategic Petroleum Reserve Plan and the 
        Early Storage Reserve Plan;
        [(3) an analysis of the impact and effectiveness of 
        such actions on the vulnerability of the United States 
        to interruption in supplies of petroleum products;
        [(4) a summary of existing problems with respect to 
        further implementation of the Early Storage Reserve 
        Plan and the Strategic Petroleum Reserve Plan; and
        [(5) any recommendations for supplemental legislation 
        deemed necessary or appropriate by the Secretary to 
        implement the provisions of this part.
    [(b)(1) On or before the fifteenth day of the second 
calendar quarter which begins after the date of the enactment 
of this subsection and every calendar quarter thereafter, the 
Secretary shall report to the Congress on activities undertaken 
with respect to the Strategic Petroleum Reserve under the 
amendments made by the Strategic Petroleum Reserve Amendments 
Act of 1981, including--
        [(A) the amounts of petroleum products stored in the 
        Reserve, under contract and in transit at the end of 
        the previous calendar quarter;
        [(B) the projected fill rate for the Strategic 
        Petroleum Reserve for the then current calendar quarter 
        and the provision calendar quarter;
        [(C) the average price of the petroleum products 
        acquired during the previous calendar quarter;
        [(D) existing and projected Strategic Petroleum Reserve 
        storage capacity and plans to accelerate the 
        acquisition or construction of such capacity;
        [(E) an analysis of any existing or anticipated 
        problems associated with acquisition, transportation, 
        and storage of petroleum products in the Reserve and 
        with the expansion of storage capacity for the Reserve; 
        and
        [(F) the amount of funds obligated by the Secretary 
        from the SPR Petroleum Account, as well as other funds 
        available for the Reserve, during the previous calendar 
        quarter and in total under the amendments made by such 
        Act.
    (2) The first report submitted under paragraph (1) shall 
include--
        [(A) a detailed statement on the planned use of the SPR 
        Petroleum Account as well as other funds available for 
        the Strategic Petroleum Reserve;
        [(B) a description of the current Strategic Petroleum 
        Reserve Plan, including any proposed or anticipated 
        amendments to the Plan; and
        [(C) detailed plans of the Secretary for acquisition or 
        new construction of storage and related facilities.]
    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 recommendations for supplemental legislation or 
policy or operational changes the Secretary considers necessary 
and appropriate to implement this part.

[42 U.S.C. 6245]

                    authorization of appropriations

    Sec. 166. (a) There are authorized to be appropriated the 
funds necessary to implement this part. [--]
          [(1) such funds as are necessary to develop and 
        implement the Early Storage Reserve Plan (including 
        planning, administration, acquisition, and construction 
        of storage and related facilities) and as are necessary 
        to permit the acquisition of petroleum products for 
        storage in the Early Storage Reserve or, if the 
        Strategic Petroleum Reserve Plan has become effective 
        under section 159(a), for storage in the Strategic 
        Petroleum Reserve in the minimum volume specified in 
        section 154(a) or 155(a)(2), whichever is applicable;
          [(2) $1,100,000,000 to remain available until 
        expended to carry out the provisions of this part to 
        develop the Strategic Petroleum Reserve Plan and to 
        implement such plan which has taken effect pursuant to 
        section 159(a), including planning, administration, and 
        acquisition and construction of storage and related 
        facilities, but no funds are authorized to be 
        appropriated under this paragraph for the purchase of 
        petroleum products for storage in the Strategic 
        Petroleum Reserve;
          [(3) such funds for the fiscal year ending September 
        30, 1978, not to exceed $1,210,000,000, as are 
        necessary to permit the acquisition and storage of 
        petroleum products in the Strategic Petroleum Reserve, 
        in accordance with the storage schedule set forth in 
        the Strategic Petroleum Reserve Plan then in effect in 
        excess of the minimum volume specified in section 
        154(a), but not in excess of 500,000,000 barrels; and
          [(4) for the fiscal year ending September 30, 1982, 
        not to exceed $260,000,000 to carry out the provisions 
        of this part, except--
                  [(A) acquisition, transportation, and 
                injection of petroleum products for the 
                Reserve, and
                  [(B) the carrying out of any drawdown and 
                distribution of the Reserve.]

[42 U.S.C. 6246]

                         spr petroleum account

    Sec. 167. (a) The Secretary of the Treasury shall establish 
in the Treasury of the United States an account to be known as 
the ``SPR Petroleum Account'' (hereinafter in this section 
referred to as the ``Account'').
    (b) Amounts in the Account may be obligated by the 
Secretary of Energy for the acquisition, transportation, and 
injection of petroleum products into the Strategic Petroleum 
Reserve, for test sales of petroleum products from the Reserve, 
and for the drawdown and delivery of petroleum products from 
the Reserve--
          [(1) in the case of fiscal year 1982, in an aggregate 
        amount, not to exceed $3,900,000,000, as may be 
        provided in advance in Appropriation Acts;]
          [(2) in the case of any fiscal year [after fiscal 
        year 1982], subject to section 660 of the Department of 
        Energy Organization Act, in such aggregate amounts as 
        may be appropriated in advance in Appropriation Acts; 
        and
          [(3) in the case of any fiscal year, notwithstanding 
        section 660 of the Department of Energy Organization 
        Act, in an aggregate amount equal to the aggregate 
        amount of the receipts to the United States from the 
        sale of petroleum products in any drawdown and 
        distribution of the Strategic Petroleum Reserve under 
        section 161, including a drawdown and distribution 
        carried out under subsection (g) of such section, or 
        from the sale of petroleum products under section 
        160(f).
Funds available to the Secretary of Energy for obligation under 
this subsection may remain available without fiscal year 
limitation.
          * * * * * * *

 Part C--Authority To Contract for Petroleum Product Not Owned by the 
                             United States

            contracting for petroleum product and facilities

    Sec. 171. (a) In General.--Subject to the other provisions 
of this part, the Secretary may contract--
          (1) for storage, in otherwise unused Strategic 
        Petroleum Reserve facilities, of petroleum product not 
        owned by the United States; and
          (2) for storage, in storage facilities other than 
        those of the Reserve, of petroleum product either owned 
        or not owned by the United States.
    (b) Conditions.--(1) Petroleum product stored pursuant to 
such a contract shall, until the expiration, termination, or 
other conclusion of the contract, be a part of the Reserve and 
subject to the Secretary's authority under part B.
    (2) The Secretary may enter into a contract for storage of 
petroleum product under subsection (a) only if--
          (A) the Secretary determines (i) that entering into 
        one or more contracts under such subsection would 
        achieve benefits comparable to the acquisition of an 
        equivalent amount of petroleum product, or an 
        equivalent volume of storage capacity, for the Reserve 
        under part B, and (ii) that, because of budgetary 
        constraints, the acquisition of an equivalent amount of 
        petroleum product or volume of storage space for the 
        Reserve cannot be accomplished under part B; and
          [(B) the Secretary notifies each House of the 
        Congress of such determination and includes in such 
        notification the same information required under 
        section 154(e) with regard to storage and related 
        facilities proposed to be included, or petroleum 
        product proposed to be stored, in the Reserve]
    (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.
          * * * * * * *

                             implementation

    Sec. 172. [(a) Amendment to Plan Not Required.--An 
amendment of the Strategic Petroleum Reserve Plan is not 
required for any action taken under this part.]
    [(b) Fill Rate Requirement.--For purposes of section 
160(d)(1), any petroleum product stored in the Reserve under 
this part that is removed from the Reserve at the expiration, 
termination, or other conclusion of the agreement shall be 
considered to be part of the Reserve until the beginning of the 
fiscal year following the fiscal year in which the petroleum 
product was removed.]
    (c) Legal Status Regarding Other Law.--Petroleum product 
and facilities contracted for under this part have the same 
status as petroleum product and facilities owned by the United 
States for all purposes associated with the exercise of the 
laws of any State or political subdivision thereof.
    (d) Return of Product.--At such time as the petroleum 
product contracted for under this part is withdrawn from the 
Reserve upon the expiration, termination or other conclusion of 
the contract, such petroleum product (or the equivalent 
quantity of petroleum product withdrawn from the Reserve 
pursuant to the contract) shall be deemed, for purposes of 
determining the extent to which such product is thereafter 
subject to any Federal, State or local law or regulation, not 
to have left the place where such petroleum product was located 
at the time it was originally committed to a contract under 
this part.

[42 U.S.C. 6249a]

       contracts for which no implementing legislation is needed

    [Sec. 173. (a) Congressional Review.--In the case of 
contracts entered into under this part, and amendments to such 
contracts, for which no implementing legislation is needed, the 
Secretary shall transmit each such contract and each such 
amendment to the Committee on Appropriations and the Committee 
on Energy and Natural Resources of the Senate and to the 
Committee on Appropriations and the Committee on Energy and 
Commerce of the House of Representatives within 30 days after 
the signing thereof.
    [(b) Effective Date.--(1) Any such contract, and any such 
amendment, shall not become effective until the end of the 30-
day period of continuous session of Congress after the date of 
such transmittal, except that such contract may become 
effective without regard to such period if the President 
determines that such contract is required as a result of a 
severe energy supply interruption or by obligations of the 
United States under the international energy program.
          [(2) For purposes of paragraph (1)--
                  [(A) continuity of session is broken only by 
                an adjournment of Congress sine die; and
                  [(B) the days on which either House is not in 
                session because of an adjournment of more than 
                three days to a day certain are excluded in the 
                computation of the calendar-day period 
                involved.]

[42 U.S.C. 6249b]
          * * * * * * *

                           Part D--Expiration

                               expiration

    Sec. 181. Except as otherwise provided in title I, all 
authority under any provision of title I (other than a 
provision of such title amending another law) and any rule, 
regulation, or order issued pursuant to such authority, shall 
expire at midnight, [June 30, 1996] but such expiration shall 
not affect any action or pending proceedings, civil or 
criminal, not finally determined on such date, nor any action 
or proceeding based upon any act committed prior to midnight, 
[June 30, 1996] September 30, 2001.

[42 U.S.C. 6251]

                  TITLE II--STANDBY ENERGY AUTHORITIES

                 [Part A--General Emergency Authorities

     [conditions of exercise of energy conservation and rationing 
                              authorities

    [Sec. 201. (a)(1) Within 180 days after the date of 
enactment of this Act, the President shall transmit to the 
Congress pursuant to subsection (b)(1) one or more energy 
conservation contingency plans and a rationing contingency 
plan. The President may at any time submit additional 
contingency plans. A contingency plan may become effective only 
as provided in this section. Such plan may remain in effect for 
a period specified in the plan but not more than 9 months, 
unless earlier rescinded by the President.
    [(2) For purposes of this section, the term ``contingency 
plan'' means--
          [(A) an energy conservation contingency plan 
        prescribed under section 202; or
          [(B) a rationing contingency plan prescribed under 
        section 203.
    [(b) Except as otherwise provided in subsection (c), no 
energy conservation contingency plan may become effective 
unless--
          [(1) the President has transmitted such contingency 
        plan to the congress in accordance with section 552(a);
          [(2) such contingency plan has been approved by a 
        resolution by each House of Congress in accordance with 
        the procedures specified in section 552; and
          [(3) after approval of such contingency plan the 
        President--
                  [(A) has found that putting such contingency 
                plan into effect is required by a severe energy 
                supply interruption or in order to fulfill 
                obligations of the United States under the 
                international energy program, and
                  [(B) has transmitted such finding to the 
                Congress, together with a statement of the 
                effective date and manner for exercise of such 
                plan.
    [(c)(1) Except as provided in paragraph (2) and (3), an 
energy conservation contingency plan may not be amended unless 
the President has transmitted such amendment to the Congress in 
accordance with section 552 and each House of Congress has 
approved such amendment in accordance with the procedures 
specified in section 552.
    [(2) An amendment to an energy conservation contingency 
plan which is transmitted to the Congress during any period in 
which such plan is in effect may take effect if the President 
has transmitted such amendment to the Congress in accordance 
with section 551(b) and neither House of Congress has 
disapproved (or both Houses have approved) such amendment in 
accordance with the procedures specified in section 551.
    [(3) The President may prescribe technical or clerical 
amendments to an energy conservation contingency plan in 
accordance with section 523.
    [(d)(1) For purposes of this subsection, any rationing 
contingency plan shall be considered to be approved if--
          [(A) the President has transmitted such rationing 
        contingency plan to the Congress in accordance with 
        section 552, and
          [(B) such rationing contingency plan has not been 
        disapproved by a joint resolution adopted into law 
        after passage by both Houses of the Congress in 
        accordance with section 552.
    [(2)(A) Except to the extent provided under subparagraph 
(B), the President may put into effect a rationing contingency 
plan which is considered approved under the preceding 
provisions of this subsection only if--
          [(i) the President has found, in his discretion, that 
        putting such rationing contingency plan into effect is 
        required by a severe energy supply interruption or is 
        necessary to comply with obligations of the United 
        States under the international energy program, subject 
        to paragraph (3);
          [(ii) the President has transmitted such finding to 
        the Congress in accordance with section 551, together 
        with a request to put such rationing contingency plan 
        into effect; and
          [(iii) neither House of the Congress has disapproved 
        (or both Houses have approved) such request in 
        accordance with the procedures specified in section 
        551.
    [(B)(i) The President may put into effect such an approved 
rationing plan without the finding required under subparagraph 
(A)(i) and without regard to the requirements of subparagraph 
(A)(ii) and (iii)) if--
          [(I) the President has transmitted to the Congress in 
        accordance with section 552 a request to waive such 
        requirements; and
          [(II) such request has been approved by a resolution 
        by each House of the Congress within 30 days of 
        continuous session of Congress after the date of its 
        transmittal, in accordance with the provisions of 
        section 552 applicable thereunder to energy 
        conservation contingency plans.
    [(ii) Any authority to put a rationing contingency plan 
into effect under clause (i) pursuant to a request under such 
clause shall terminate on the 60th calendar day after the date 
on which a resolution approving that request is adopted by the 
second House to have so approved that request.
    [(iii) In applying the provisions of section 552 for 
purposes of this subparagraph--
          [(I) subsections (b), (d)(2)(B), and (d)(7) shall not 
        apply;
          [(II) the references to 60 calendar days and 20 
        calendar days shall be considered to refer to 30 
        calendar days and 10 calendar days, respectively; and
          [(III) the references to an contingency plan shall be 
        considered to refer to a request under this 
        subparagraph.
    [(3) For purposes of paragraph (2)--
          [(A) The term ``severe energy supply interruption'' 
        means a national energy supply shortage which the 
        President determines--
                  [(i) has resulted or is likely to result in a 
                daily shortfall in the United States of 
                gasoline, diesel fuel, and No. 2 heating oil 
                supplies for a period in excess of 30 days 
                (including reductions as a result of an 
                allocation away from the United States under 
                the international energy program) of an amount 
                equal to 20 percent or more of projected daily 
                demand for such supplies;
                  [(ii) is not manageable under other energy 
                emergency authorities, including any energy 
                conservation contingency plans approved under 
                subsection (b) and any emergency conservation 
                authority available under title II of the 
                Emergency Energy Conservation Act of 1979;
                  [(iii) is expected to persist for a period of 
                time sufficient to seriously threaten the 
                adequacy of domestic stocks of gasoline, diesel 
                fuel, and No. 2 hearing oil; and
                  [(iv) is having or can reasonably be expected 
                to have a major adverse impact on national 
                health or safety or the national economy.
          [(B) For purposes of determining the shortfall of 
        supplies under subparagraph (A)(i), the projected daily 
        demand for gasoline, diesel fuel, and No. 2 heating oil 
        supplies shall be the amount of such supplies that were 
        available during any consecutive period of 12 calendar 
        months which the President considers appropriate and 
        which occurred during the 36 calendar month period 
        which immediately precedes the month in which such 
        finding is made, such amount to be adjusted--
                  [(i) to take into account, for the period 
                between the base period and the month in which 
                the determination is made, the normal growth in 
                demand for gasoline, diesel fuel, and No. 2 
                heating oil, as determined by the President on 
                the basis of growth experienced during the 36-
                month period from which the base period was 
                selected; and
                  [(ii) to take into account seasonal 
                variations in demand for such fuels, as 
                determined by the President.
          [(C) The term ``necessary to comply with obligations 
        of the United States under the international energy 
        program'' refers to a necessity which the President 
        determines to have impacts comparable to those provided 
        for in subparagraph (A) of this paragraph.
    [(4)(A) A rationing contingency plan may not be amended 
after it is transmitted to the Congress and before it is 
considered approved under paragraph (1).
    [(B) Except as provided in subparagraphs (C) and (D), a 
rationing contingency plan which is considered approved under 
this subsection may not be amended other than by an amendment 
with respect to which--
          [(i) a period of 15 calendar days of continuous 
        session (within the meaning of section 552(c)) has 
        passed after the receipt of the proposed amendment by 
        the Committee on Interstate and Foreign Commerce of the 
        House of Representatives and the Committee on Energy 
        and Natural Resources of the Senate; or
          [(ii) each such committee before the expiration of 
        such period has transmitted to the President written 
        notice stating in substance that such committee has no 
        objection to the proposed amendment.
    [(C) Except as provided in subparagraph (D), a rationing 
contingency pan may not be amended during any period in which 
such plan is in effect pursuant to paragraph (2) unless the 
President has transmitted such amendment to the Congress in 
accordance with section 551(b), and neither House of Congress 
has disapproved (or both Houses have approved) such amendment 
in accordance with the procedures specified in section 551.
    [(D) The requirements of subparagraphs (B) and (C) shall 
not apply with respect to any amendment which is a technical or 
clerical amendment.
    [(E) Any contingency plan which the President transmits to 
the Congress pursuant to subsection (b)(1) or (d)(1) shall 
contain a specific statement explaining the need for and the 
rationale and operation of such plan and shall be based upon a 
consideration of, and to the extent practicable, be accompanied 
by an evaluation of, the potential economic impacts of such 
plan, including an analysis of--
          [(1) any effects of such plan on--
                  [(A) vital industrial sectors of the economy;
                  [(B) employment (on a national and regional 
                basis);
                  [(C) the economic vitality of states and 
                regional areas;
                  [(D) the availability and price of consumer 
                goods and services; and
                  [(E) the gross national product; and
          [(2) any potential anticompetitive effects.
[Notwithstanding the preceding provisions of this subsection, 
such economic analysis and evaluation is not required to be 
performed, or transmitted to the Congress, under this 
subsection in the case of any rationing contingency plan.

[[42 U.S.C. 6261]

                 [energy conservation contingency plans

    [Sec. 202. (a)(1) The President shall prescribe, in 
accordance with section 523(a), one or more energy conservation 
contingency plans. As used in this section, the term ``energy 
conservation contingency plan'' means a plan which imposes 
reasonable restrictions on the public or private use of energy 
which are necessary to reduce energy consumption. In 
prescribing energy conservation contingency plans, the 
President shall take into consideration the mobility needs of 
the handicapped, as defined in section 203(a)(2)(B).
    [(2) An energy conservation contingency plan prescribed 
under this section may not--
          [(A) impose rationing or any tax, tariff, or user 
        fee;
          [(B) contain any provision respecting the price of 
        petroleum products; or
          [(C) provide for a credit or deduction in computing 
        any tax.
    [(b) An energy conservation contingency plan shall apply in 
each State or political subdivision thereof, except such plan 
may provide for procedures for exempting any State or political 
subdivision thereof from such plan, in whole or part, during a 
period for which (1) the President determines a comparable 
program of such State or political subdivision is in effect, or 
(2) the President finds special circumstances exist in such 
State or political subdivision.
    [(c) Any energy conservation contingency plan shall not 
deal with more than one logically consistent subject matter.
    [(d)(1) In the case of an energy conservation contingency 
plan that regulates building temperatures, any State or 
political subdivision thereof may submit to the President a 
comparable plan, as described in subsection (b)(1), and include 
in such plan procedures permitting any person affected by such 
contingency plan to use alternative means of conserving at 
least as much energy in affected buildings as would be 
conserved by the energy conservation contingency plan that 
regulates building temperatures. Such plan shall include 
effective procedures for the approval and enforcement of such 
alternative plans by such State or such political subdivision 
thereof.
    [(2) The alternative plan under paragraph (1) need not 
conserve energy in the same fashion as the energy conservation 
contingency plan that regulates building temperatures.
    [(3) Nothing in this subsection shall preclude any 
political subdivision of a State from applying directly to the 
President for approval of a comparable plan under paragraph 
(1).]

[[42 U.S.C. 6262]

                      [rationing contingency plan

    [Sec. 203. (a)(1) As soon as practicable after the date of 
the enactment of the Emergency Energy Conservation Act of 1979, 
the President shall prescribe, by rule, a rationing contingency 
plan which shall, for purposes of enforcement under section 5 
of the Emergency Petroleum Allocation Act of 1973, be deemed a 
part of the regulation under section 4(a) of the Emergency 
Petroleum Allocation Act of 1973 and which shall provide, 
consistent with the attainment, to the maximum extent 
practicable, of the objectives specified in section 4(b)(1) of 
such Act--
          [(A) for the establishment of a program for the 
        rationing and ordering of priorities among classes of 
        end-users of gasoline and diesel fuel used in motor 
        vehicles, and
          [(B) for the assignment of rights, and evidence of 
        such rights, to end-users of gasoline and such diesel 
        fuel, entitling such end-users to obtain gasoline or 
        such diesel fuel in precedence to other classes of end-
        users not similarly entitled.
[The President, to the maximum extent practicable, shall 
consult with the Governors of the various States (or the 
representatives of such Governors) during the development of 
any rationing contingency plan under this section.
    [(2)(A) For purposes of paragraph (1), the objectives 
specified in section 4(b)(1) of the Emergency Petroleum 
Allocation Act of 1973 shall be deemed to include consideration 
of the mobility needs of handicapped persons and their 
convenience in obtaining the end-user's rights specified in 
paragraph (1).
    [(B) For purposes of this part, the term ``handicapped 
person'' means any individual who, by reason of disease, injury 
, age, congenital malfunction, or other permanent incapacity or 
disability, is unable without special facilities, planning or 
design to utilize mass transportation vehicles, facilities, and 
services and who has a substantial, permanent impediment to 
mobility.
    [(3) Any rationing contingency plan prescribed under this 
section shall provide that--
          [(A) the end-user rights specified in paragraph (1) 
        shall be distributed on a State-to-State basis that 
        results in the degree of shortfall from the base period 
        use being equally shared among the various States, 
        considering the most recent base period use data 
        available;
          [(B) to the maximum extent practicable, such rights 
        shall be made available to classes of end-users on a 
        basis which takes into account fairly the relative 
        needs of such end-users; and
          [(C) adequate end-user rights are available to carry 
        out paragraph (1) (A) and (B) as required under 
        paragraph (1).
    [(b) Any finding required to be made by the President 
pursuant to section 201(b)(3) and any request to put a 
rationing contingency plan into effect pursuant to section 
201(e) shall be accompanied by a finding of the President that 
such plan is necessary to attain, to the maximum extent 
practicable, the objectives specified in section 4(b)(1) of the 
Emergency Petroleum Allocation Act of 1973 and the purposes of 
this Act.
    [(c) The President shall, by order under section 4 of the 
Emergency Petroleum Allocation Act of 1973, for the purpose of 
carrying out a rationing contingency plan which is in effect, 
cause such adjustments to be made in the allocations made 
pursuant to the regulation under section 4(a) of such Act as 
the President determines to be necessary to carry out the 
purposes of this section and to be consistent with the 
attainment, to the maximum extent practicable, of the 
objectives specified in section 4(b)(1) of such Act and the 
purposes of this Act.
    [(d)(1) The President shall, to the extent practicable, 
provide for the use of local boards described in paragraph (2) 
with authority to--
          [(A) receive petitions from any end-user of gasoline 
        and diesel fuel used in motor vehicles with respect to 
        the priority and entitlement of such user under a 
        rationing contingency plan, and
          [(B) order a reclassification or modification of any 
        determination made under a rationing contingency plan 
        with respect to such end-user's rationing priority or 
        rights specified in subsection (a)(1).
    [Such boards shall operate under the procedure prescribed 
by the President by rule.
    [(2) Any rationing contingency plan under this section 
shall set forth--
          [(A) criteria for delegation of the President's 
        functions, in whole or part, under this Act with 
        respect to such rationing contingency plan to officers 
        or local boards (of balanced composition reflecting the 
        community as a whole) of States or political 
        subdivisions thereof; and
          [(B) procedures for petitioning for the receipt of 
        such delegation.
    [(3)(A) Officers or local boards of States or political 
subdivisions thereof, beginning 30 days (or such earlier date 
as the President considers appropriate) after a rationing 
contingency plan is considered approved under this section, may 
petition the President to receive delegation under such 
paragraph.
    [(B) The President shall, within 30 days after the date of 
the receipt of any such petition which is properly submitted , 
grant or deny such petition.
    [(e) No rationing contingency plan under this section may--
          [(1) impose any tax,
          [(2) provide for a credit or deduction in computing 
        any tax, or
          [(3) impose any user fee, except to the extent 
        necessary to defray the cost of administering the 
        rationing contingency plan or to provide for initial 
        distribution of end-user rights specified in subsection 
        (a)(1).
    [(f) Notwithstanding section 531, all authority to carry 
out any rationing contingency plan shall expire on the same 
data as authority to issue and enforce rules and orders under 
the Emergency Petroleum Allocation Act of 1973.
    [(g) Any authority of the President with respect to a 
rationing contingency plan under this Act which is delegated to 
the Secretary shall be exercised by the Secretary without 
regard to section 404 of the Department of Energy Organization 
Act (42 U.S.C. 7174).
    [(h) Any rationing contingency plan, or any amendment 
thereto, as well as any regulation thereunder, shall be 
prescribed in accordance with section 523(a), except that the 
period for any oral or written comments on any such proposed 
plan, amendment, or regulation may not extend beyond the 45th 
day the date of the publication of the notice of the proposed 
plan, amendment, or regulation.
    [(i) Any ration coupon or any other evidence of right 
prepared by or on behalf of the United States for use in 
connection with a rationing contingency plan shall be 
considered to be an obligation or other security of the United 
States for purposes of title 18, United States Code.]

[[42 U.S.C. 6263]]

                           [termination date

    [Sec. 204. Except as provided in section 203(f), authority 
to carry out the provisions of this part and any rule, 
regulation, or order issued pursuant to such part shall expire 
at midnight, June 30, 1985.]
[[42 U.S.C. 6264]]

          * * * * * * *

    Part B--Authorities With Respect to International Energy Program

                      international oil allocation

    Sec 251. (a) * * *
          * * * * * * *
    (e) No rule under this section may be put into effect 
unless--
          (1) an international energy supply emergency, as 
        defined in the first sentence of [section 252(K)(1)], 
        is in effect; and
          (2) the allocation of available oil referred to in 
        chapter III of the international energy program has 
        been activated pursuant to chapter IV of such program.

[42 U.S.C. 6271]

                   international voluntary agreements

    Sec 252. (a) Effective 90 days after the date of enactment 
of this Act, the requirements of this section shall be the sole 
procedures applicable to--
          (1) the development or carrying out of voluntary 
        agreements and plans of action to implement the 
        [allocation and information provisions of the 
        international energy program] international emergency 
        response provisions, and
          (2) the availability of immunity from the antitrust 
        laws with respect to the development or carrying out of 
        such voluntary agreements and plans of action.
    (b) The Secretary, with the approval of the Attorney 
General, after each of them has consulted with the Federal 
Trade Commission and the Secretary of State, shall prescribe, 
by rule, standards and procedures by which persons engaged in 
the business of producing, transporting, refining, 
distributing, or storing petroleum products may develop and 
carry out voluntary agreements, and plans of action, which are 
required to implement the [allocation and information 
provisions of the international energy program] international 
emergency response provisions.
          * * * * * * *
    (d)(1) * * *
          * * * * * * *
    (3) A plan of action may not be approved by the Attorney 
General under this subsection unless such plan (A) describes 
the types of substantive actions which may be taken under the 
plan, and (B) is as specific in its description of proposed 
substantive actions as is reasonable in light of [known] 
circumstances known at the time of approval.
    (e)(1) The Attorney General and the Federal Trade 
Commission shall monitor the development and carrying out of 
voluntary agreements and plans of action authorized under this 
section in order to promote competition and to prevent 
anticompetitive practices and effects, while achieving 
substantially the purposes of this part.
    (2) In addition to any requirement specified under 
subsections (b) and (c) of this section and in order to carry 
out the purposes of this section, the Attorney General, in 
consultation with the Federal Trade Commission and the 
Secretary, [shall] may promulgate rules concerning the 
maintenance of necessary and appropriate records related to the 
development and carrying out of voluntary agreements and plans 
of action authorized pursuant to this section.
          * * * * * * *
    (f)(1) * * *
    (2) Except in the case of actions taken to develop a 
voluntary agreement or plan of action, the defense provided in 
this subsection shall be available only if the person asserting 
the defense demonstrates that the actions were specified in, or 
within the reasonable contemplation of, an approved voluntary 
agreement or plan of action.
          * * * * * * *
    [(h) Upon the expiration of the 90-day period which begins 
on the date of enactment of this Act, the provisions of 
sections 708 and 708A (other than 708A(o)) 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 or under the Emergency Petroleum 
Allocation Act of 1973. For purposes of section 708(a)(o) \1\ 
of the Defense Production Act of 1950, the effective date of 
the provisions of this Act which relate to international 
voluntary agreements to carry out the International Energy 
Program shall be deemed to be 90 days after the date of 
enactment of this Act.]
---------------------------------------------------------------------------
    \1\ So in original. Probably should have been to section 
``708A(o)''.
---------------------------------------------------------------------------
    (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.
    (i) The Attorney General and the Federal Trade Commission 
shall each submit to the Congress and to the President, at 
least annually, or once every 6 months during an international 
energy supply emergency, a report on the impact on competition 
and on small business of actions authorized by this section.
    (j) In any action in any Federal or State court for breach 
of contract, there shall be available as a defense that the 
alleged breach of contract was caused predominantly by action 
taken during an international energy supply emergency to carry 
out a voluntary agreement or plan of action authorized and 
approved in accordance with this section.
    (k) As used in this section and section 254:
          (1) The term ``international energy supply 
        emergency'' means any period (A) beginning on any date 
        which the President determines allocation of petroleum 
        products to nations participating in the international 
        energy program is required by chapters III and IV of 
        such program, and (B) ending on a date on which he 
        determines that such allocation is no longer required. 
        Such a period may not exceed 90 days, but the President 
        may establish one or more additional 90-day periods by 
        making anew the determination under subparagraph (A) of 
        the preceding sentence. Any determination respecting 
        the beginning or end of any such period shall be 
        published in the Federal Register.
          [(2) The term ``allocation and information provisions 
        of the international energy program'' means the 
        provisions of the international energy program which 
        relate to international allocation of petroleum 
        products and to the information system provided in such 
        program.]
    (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 impeding 
                international oil supply disruption.
    [(l) The authority granted by this section shall apply only 
to the development or carrying out of voluntary agreements and 
plans of action to implement chapters III, IV, and V of the 
international energy programs.]
    (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.
          * * * * * * *

   domestic renewable energy industry and related service industries

    Sec. 256. (a) * * *
          * * * * * * *
    (h) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for purposes of carrying 
out the programs under subsections (d) and (e) $10,000,000, to 
be divided equitably between the interagency working subgroups 
based on program requirements, for each of the fiscal years 
1993 and 1994, and such sums as may be necessary for fiscal 
year 1995 to carry out the purposes of this subtitle. There are 
authorized to be appropriated $5,000,000 for each of the fiscal 
years 1996 through 1999.

[42 U.S.C. 6276]

                 [Part C--Energy Emergency Preparedness

              [congressional findings, policy, and purpose

    [Sec. 271. (a) Findings.--The Congress finds that--
          [(1) a shortage of petroleum products caused by 
        reductions in imports of petroleum products may occur 
        at any time;
          [(2) such a shortage may be sufficiently large to 
        cause severe economic dislocations and hardships, or 
        constitute a serious threat to public health, safety, 
        and welfare; and
          [(3) prior to the occurrence of such a shortage, the 
        Federal Government has a responsibility to be prepared 
        to mitigate the adverse impacts of such a shortage as a 
        supplement to reliance on free market pricing and 
        allocation of available petroleum product supplies.
    [(b) Policy.--The Congress declares that it shall be the 
policy of the United States that the Federal Government shall 
be prepared prior to any shortage of petroleum products to 
respond to energy emergencies, pursuant to authorities under 
provisions of law other than this part, as a supplement to 
reliance on the free market to mitigate the adverse impacts of 
a shortage of petroleum products on
    [(c) Purpose.--The purpose of this part is to carry out the 
policy in subsection (b) by providing for the preparation of 
comprehensive energy emergency response procedures to be 
available for use by the President under authorities contained 
in any provision of law other than this part.]

[[42 U.S.C. 6281]]

            [Preparation for Petroleum Supply Interruptions

    [Sec. 272. (a) Description of Available Legal 
Authorities.--(1) The President shall submit to the Congress no 
later than November 15, 1982, a memorandum of law which 
describes the nature and extent of the authorities available to 
the President under existing law to respond to a severe energy 
supply interruption or other substantial reduction in the 
amount of petroleum products available to the United States.
    [(2) The memorandum of law required by paragraph (1) shall 
be prepared by the Attorney General, in consultation with the 
Secretary of Energy.
    [(3) The memorandum of law submitted to the Congress 
pursuant to this subsection shall--
        [(A) include the following subjects--
                [(i) activities of the United States in support 
                of the international energy program and the 
                December 10, 1981, International Energy Agency 
                agreement entitled ``Decision on Preparation 
                for Future Supply Disruptions'' including--
                        [(I) the National Emergency Sharing 
                        Organization;
                        [(II) emergency sharing systems; and
                        [(III) the supply right project;
                [(ii) activities of the United States pursuant 
                to its energy emergency preparedness 
                obligations to the North Atlantic Treaty 
                Organization;
                [(iii) development and use of the Strategic 
                Petroleum Reserve;
                [(iv) Government incentives to encourage 
                private petroleum product stocks;
                [(v) reactivation of the following Executive 
                Manpower Reserve;
                        [(I) the Emergency Electric Power 
                        Reserve;
                        [(II) the Emergency Petroleum and Gas 
                        Reserve; and
                        [(III) the Emergency Solid Fuels 
                        Reserve;
                [(vi) energy emergency response management in 
                coordination with State and local governments; 
                and
                [(vii) emergency public information activities; 
                and
        [(B) distinguish among--
                [(i) situations involving limited or general 
                war, international tensions that threaten 
                national security, and other Presidentially 
                declared emergencies;
                [(ii) events resulting in activation of the 
                international energy program; and
                [(iii) events or situations less severe than 
                those described in clauses (i) and (ii).
    [(b) Comprehensive Energy Emergency Response Procedures.--
(1) Not later than December 31, 1982, the President shall 
submit to the Congress comprehensive energy emergency response 
procedures for implementation, in whole or in part, of the 
authorities described under subsection (a).
    [(2) The comprehensive energy emergency response procedures 
shall--
        [(A) describe the various options the President would 
        consider using to implement the authorities described 
        in the memorandum of law submitted under subsection (a) 
        to respond to a severe energy supply interruption or 
        other substantial reduction in the amount of petroleum 
        products available to the United States, including a 
        description of the likely sequence in which such 
        options would be taken;
        [(B) specify how appropriate governmental actions in 
        response to international and domestic energy shortages 
        would be selected and implemented under such options, 
        particularly which official or governmental entity 
        would select and implement such actions, and what 
        procedures would be used in doing so; and
        [(C) recommend any additional statutory authority the 
        President considers necessary to respond to a severe 
        energy supply interruption or other substantial 
        reduction in the amount of petroleum products available 
        to the United States.
    [(c) Disclaimers.--(1) Nothing in this part or in the 
comprehensive energy emergency response procedures submitted 
pursuant to subsection (b), shall--
        [(A) limit the authority of the President under any 
        provision of law to respond to a reduction in the 
        amount of petroleum products available to the United 
        States; or
        [(B) grant any authority to the President to respond to 
        a reduction in the amount of petroleum products 
        available to the United States.
    [(2) No State law or State program in effect on the date of 
the enactment of this part, or which may become effective 
thereafter, shall be construed to be superseded by any 
provision of this part.]

[[42 U.S.C. 6282]]

                           Part D--Expiration

                               Expiration

    Sec. 281. Except as otherwise provided in title II, all 
authority under any provision of title II (other than a 
provision of such title amending another law) and any rule, 
regulation, or order issued pursuant to such authority, shall 
expire at midnight, [June 30, 1996], September 30, 2001, but 
such expiration shall not affect any action or pending 
proceedings, civil or criminal, not finally determined on such 
date, nor any action or proceeding based upon any act committed 
prior to midnight, [June 30, 1996], September 30, 2001.

[42 U.S.C. 6285]

                 TITLE III--IMPROVING ENERGY EFFICIENCY

          * * * * * * *

                Part D--State Energy Conservation Plans

          * * * * * * *

                           general provisions

    Sec. 365. (a) * * *
          * * * * * * *
    (f)[(1) Except as provided in paragraph (2), for the 
purpose of carrying out this part, there are authorized to be 
appropriated not to exceed $25,000,000 for fiscal year 1991, 
$35,000,000 for fiscal year 1992, and $45,000,000 for fiscal 
year 1993.]
    (1) Except as provided in paragraph (2), for the purpose of 
carrying out this part, there are authorized to be appropriated 
$26,500,000 for fiscal year 1996 and for fiscal year 1997 
through 2001, such sums as may be necessary.
          * * * * * * *

     Part G--Energy Conservation Program for Schools and Hospitals

          * * * * * * *

                    authorization of appropriations

    Sec. 397. [For the purpose of carrying out this part, there 
are authorized to be appropriated not to exceed $40,000,000 for 
fiscal year 1991, $50,000,000 for fiscal year 1992, and 
$60,000,000 for fiscal year 1993.] For the purpose of carrying 
out this part, there are authorized $29,000,000 to be 
appropriated for fiscal year 1996 and for fiscal year 1997 
through 2001, such sums as may be necessary.
          * * * * * * *

            PART J--ENCOURAGING THE USE OF ALTERNATIVE FUELS

          * * * * * * *

SEC. 400BB. ALTERNATIVE FUELS TRUCK COMMERCIAL APPLICATION PROGRAM.

    (a) Establishment.--The Secretary, in cooperation with 
manufacturers of heavy duty engines and with other Federal 
agencies, shall establish a commercial application program to 
study the use of alternative fuels in heavy duty trucks and, if 
appropriate, other heavy duty applications.
    (b) Funding.--[(1) There are authorized to be appropriated 
to the Secretary for carrying out this section such sums as may 
be necessary for fiscal years 1993 through 1995, to remain 
available until expended.]
    (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.
          * * * * * * *

                      TITLE V--GENERAL PROVISIONS

            Part A--Energy Data Base and Energy Information

          * * * * * * *

                     [petroleum product information

    [Sec. 507. The President or his delegate shall, pursuant to 
authority otherwise available to the President or his delegate 
under any other provision of law, collect information on the 
pricing, supply, and distribution of petroleum products by 
product category at the wholesale and retail levels, on a 
State-by-State basis, which was collected as of September 1, 
1981, by the Energy Information Administration.]

                       Part B--General Provisions

          * * * * * * *

                         [conflicts of interest

    [Sec. 522. (a) Each officer or employee of the Federal 
Energy Administration or of the Department of the Interior 
who--
          [(1) performs any function or duty under this Act; 
        and
          [(2) has any known financial interest--
                  [(A) in any person engaged in the business of 
                exploring, developing, producing, refining, 
                transporting by pipeline, or distributing 
                (other than at the retail level) coal, natural 
                gas, or petroleum products, or
                  [(B) in property from which coal, natural 
                gas, or crude oil is commercially produced;
[shall, beginning on February 1, 1977, annually file with the 
Administrator or the Secretary of the Interior, as the case may 
be, a written statement disclosing all such interests held by 
such officer or employee during the preceding calendar year. 
Such statement shall be subject to examination, and available 
for copying, by the public upon request.
    [(b) The Secretary and the Secretary of the Interior shall 
each--
          [(1) act, within 90 days after the date of enactment 
        of this Act, in accordance with section 553 of title 5, 
        United States Code--
                  [(A) to define the term ``known financial 
                interest'' for purposes of subsection (a); and
                  [(B) to establish the methods by which the 
                requirement to file written statements 
                specified in subsection (a) will be monitored 
                and enforced, including appropriate provisions 
                for the filing by such officers and employees 
                of such statements and the review by the 
                Secretary or the Secretary of the Interior, as 
                the case may be, of such statements; and
          [(2) report to the Congress on June 1 of each 
        calendar year with respect to such disclosures and the 
        actions taken in regard thereto during the preceding 
        calendar year.
    [(c) In the rules prescribed in subsection (b), the 
Secretary and the Secretary of the Interior each may identify 
specific positions, or classes thereof within the Federal 
Energy Administration or Department of the Interior, as the 
case may be, which are of a nonregulatory and nonpolicymaking 
nature and provide that officers or employees occupying such 
positions shall be exempt from the requirements of this 
section.
    [(d) Any officer or employee who is subject to, and 
knowingly violates, subsection (a) shall be fined not more than 
$2,500 or imprisoned not more than one year, or both.]

[[42 U.S.C. 6392]]