[Senate Report 105-25]
[From the U.S. Government Publishing Office]



                                                        Calendar No. 77
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-25
_______________________________________________________________________


 
             ENERGY POLICY AND CONSERVATION ACT AMENDMENTS

                                _______
                                

                  June 11, 1997.--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. 417]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 417) to extend energy conservation 
programs under the Energy Policy and Conservation Act through 
September 30, 2002, 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 :

SECTION 1. ENERGY POLICY AND CONSERVATION ACT AMENDMENTS

    The Energy Policy and Conservation Act is amended--
          (1) at the end of section 154 by adding the following new 
        subsection:
    ``(f) No later than October 1, 1997, the Secretary shall prepare a 
statement of policy on Strategic Petroleum Reserve development, 
maintenance and drawdown. The statement of policy shall evaluate the 
effect of sales of petroleum from the Strategic Petroleum Reserve under 
authorities other than those provided by this Act on the ability of the 
United States to fulfill its obligations under the international energy 
program. The statement of policy shall evaluate the effectiveness of 
the Strategic Petroleum Reserve at reducing the impact of severe energy 
supply interruptions, in light of existing quantities of petroleum in 
the Strategic Petroleum Reserve, and the likelihood of purchases of 
additional petroleum for storage. The statement of policy shall set 
forth alternative strategies for drawdown and the criteria to be 
employed at the time of drawdown to select among such strategies. The 
statement of policy shall be published in the Federal Register and be 
subject to public comment, and may be prepared without regard to the 
requirements of section 553 of title 5, United States Code, section 501 
of the Department of Energy Organization Act (42 U.S.C. 7191), and 
section 523 of this Act.'';
          (2) by amending section 166 (42 U.S.C. 6246) to read as 
        follows:
                   ``authorization of appropriations
    ``Sec. 166. There are authorized to be appropriated for each of 
fiscal years 1998 through 2000 such sums as may be necessary to 
implement this part.'';
          (3) at the end of Part B of title I by adding the following 
        new section:
                   ``use of underutilized facilities
    ``Sec. 168. (a) Notwithstanding section 649(b) of the Department of 
Energy Organization Act (42 U.S.C. 7259(b)), the Secretary is 
authorized to store in underutilized Strategic Petroleum Reserve 
facilities, by lease or otherwise, petroleum product owned by a foreign 
government or its representative. Petroleum product stored under this 
section is not part of the Strategic Petroleum Reserve, is not subject 
to part C of this title, and notwithstanding any provision of this Act, 
may be exported from the United States.
    ``(b) Beginning on October 1, 2002, funds resulting from the 
leasing or other use of a Reserve facility under subsection (a) shall 
be available to the Secretary, without further appropriation, for the 
purchase of petroleum product for the Reserve.'';
          (4) in section 181 (42 U.S.C. 6251) by striking ``1997'' both 
        places it appears and inserting in lieu thereof ``2000'';
          (5) by striking ``section 252(l)(1)'' in section 251(e)(1) 
        (42 U.S.C. 6271(e)(1)) and inserting ``section 252(k)(1)'';
          (6) in section 252 (42 U.S.C. 6272)--
                  (A) in subsections (a)(1) and (b), by striking 
                ``allocation and information provisions of the 
                international energy program'' and inserting 
                ``international emergency response provisions'';
                  (B) in subsection (d)(3), by striking ``known'' and 
                inserting after ``circumstance'' ``known as the time of 
                approval'';
                  (C) in subsection (e)(2) by striking ``shall'' and 
                inserting ``may'';
                  (D) in subsection (f)(2) by inserting ``voluntary 
                agreement or'' after ``approved'';
                  (E) by amending subsection (h) to read as follows--
    ``(h) Section 708 of the Defense Production Act of 1950 shall not 
apply to any agreement or action undertaken for the purpose of 
developing or carrying out--
          ``(1) the international energy program, or
          ``(2) any allocation, price control, or similar program with 
        respect to petroleum products under this Act.'';
                  (F) in subsection (k) by amending paragraph (2), to 
                read as follows--
          ``(2) The term `international emergency response provisions' 
        means--
                  ``(A) the provisions of the international energy 
                program which relate to international allocation of 
                petroleum products and to the information system 
                provided in the program, and
                  ``(B) the emergency response measures adopted by the 
                Governing Board of the International Energy Agency 
                (including the July 11, 1984, decision by the Governing 
                Board on (Stocks and Supply Disruptions) for--
                          ``(i) the coordinated drawdown of stocks of 
                        petroleum products held or controlled by 
                        governments; and
                          ``(ii) complementary actions taken by 
                        governments during an existing or impending 
                        international oil supply disruption''; and
                  (G) by amending subsection (l) to read as follows--
    ``(l) The antitrust defense under subsection (f) shall not extend 
to the international allocation of petroleum products unless allocation 
is required by chapters III and IV of the international energy program 
during an international energy supply emergency.'';
          (7) by amending the last sentence of section 256(h) (42 
        U.S.C. 6276(h)) to read as follows: ``There are authorized to 
        be appropriated for each of fiscal years 1998 through 2002 such 
        sums as may be necessary to carry out this part.'';
          (8) in section 281 (42 U.S.C. 6285) by striking ``1997'' both 
        places it appears and inserting in lieu thereof ``2002'';
          (9) in section 365(f)(1) (42 U.S.C. 6325(f)(1)) by striking 
        ``not to exceed'' and all that follows through ``fiscal year 
        1993'' and inserting in lieu thereof ``for each of fiscal years 
        1998 through 2002 such sums as may be necessary'';
          (10) by amending section 397 (42 U.S.C. 6371f) to read as 
        follows:
                   ``authorization of appropriations
    ``Sec. 397. For the purpose of carrying out this part, there are 
authorized to be appropriated for each of fiscal years 1998 through 
2002 such sums as may be necessary.''; and
          (11) in section 400BB(b) (42 U.S.C. 6374a(b)) by amending 
        paragraph (1) to read as follows:
          ``(1) there are authorized to be appropriated to the 
        Secretary for carrying out this section such sums as may be 
        necessary for each of fiscal years 1998 through 2002, to remain 
        available until expended.''.

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

    (a) Section 161 of the Energy Policy and Conservation Act (42 
U.S.C. 6241) is amended by adding at the end the following:
    ``(j) Purchases From Strategic Petroleum Reserve by Entities in 
Insular Areas of United States and Freely Associated States--
          ``(1) Definitions.--In this subsection:
                  ``(A) Binding offer.--The term `binding offer' means 
                a bid submitted by the State of Hawaii for an assured 
                award of a specific quantity of petroleum product, with 
                a price to be calculated pursuant to paragraph (2) of 
                this subsection, that obligates the offeror to take 
                title to the petroleum product without further 
                negotiation or recourse to withdraw the offer.
                  ``(B) Category of petroleum product.--the term 
                `category of petroleum product' means a master line 
                item within a notice of sale.
                  ``(C) Eligible entity.--The term `eligible entity' 
                means an entity that owns or controls a refinery that 
                is located within the State of Hawaii.
                  ``(D) Full tanker load.--The term `full tanker load' 
                means a tanker of approximately 700,000 barrels of 
                capacity, or such lesser tanker capacity as may be 
                designated by the State of Hawaii.
                  ``(E) Insular area.--The term `insular area' means 
                the Commonwealth of Puerto Rico, the Commonwealth of 
                the Northern Mariana Islands, the United States Virgin 
                Islands, Guam, American Samoa, and the Freely 
                Associated States of the Republic of the Marshall 
                Islands, the Federated States of Micronesia, and the 
                Republic of Palau.
                  ``(F) Offering.--The term `offering' means a 
                solicitation for bids for a quantity or quantities of 
                petroleum product from the Strategic Petroleum Reserve 
                as specified in the notice of sale.
                  ``(G) Notice of sale.--the term `notice of sale' 
                means the document that announces--
                          ``(i) the sale of Strategic Petroleum Reserve 
                        products;
                          ``(ii) the quantity, characteristics, and 
                        location of the petroleum product being sold;
                          ``(iii) the delivery period for the sale; and
                          ``(iv) the procedures for submitting offers.
          ``(2) In general.--In the case of an offering of a quantity 
        of petroleum product during a drawdown of the Strategic 
        Petroleum Reserve--
                  ``(A) the State of Hawaii, in addition to having the 
                opportunity to submit a competitive bid, may--
                          ``(i) submit a binding offer, and shall on 
                        submission of the offer, be entitled to 
                        purchase a category of a petroleum product 
                        specified in a notice of sale at a price equal 
                        to the volumetrically weighted average of the 
                        successful bids made for the remaining quantity 
                        of the petroleum product within the category 
                        that is the subject of the offering; and
                          ``(ii) submit 1 or more alternative offers, 
                        for other categories of the petroleum product, 
                        that will be binding if no price competitive 
                        contract is awarded for the category of 
                        petroleum product on which a binding offer is 
                        submitted under clause (i); and
                  ``(B) at the request of the Governor of the State of 
                Hawaii, a petroleum product purchased by the State of 
                Hawaii at a competitive sale or through a binding offer 
                shall have first preference in scheduling for lifting.
          ``(3) Limitation on quantity.--
                  ``(A) In general.--In administering this subsection, 
                in the case of each offering, the Secretary may impose 
                the limitation described in subparagraph (B) or (C) 
                that results in the purchase of the lesser quantity of 
                petroleum product.
                  ``(B) Portion of quantity of previous imports.--The 
                Secretary may limit the quantity of a petroleum product 
                that the State of Hawaii may purchase through a binding 
                offer at any offering to \1/12\ of the total quantity 
                of imports of the petroleum product brought into the 
                State during the previous year (or other period 
                determined by the Secretary to be representative).
                  ``(C) Percentage of offering.--The Secretary may 
                limit the quantity that may be purchased through 
                binding offers at any offering to 3 percent of the 
                offering.
          ``(4) Adjustments.--
                  ``(A) In general.--Notwithstanding any limitation 
                imposed under paragraph (3), in administering this 
                subsection, in the case of each offering, the Secretary 
                shall, at the request of the Governor of the State of 
                Hawaii, or an eligible entity certified under paragraph 
                (7), adjust the quantity to be sold to the State of 
                Hawaii in accordance with this paragraph.
                  ``(B) Upward adjustment.--The Secretary shall adjust 
                upward to the next whole number increment of a full 
                tanker load if the quantity to be sold is--
                          ``(i) less than 1 full tanker load; or
                          ``(ii) greater than or equal to 50 percent of 
                        a full tanker load more than a whole number 
                        increment of a full tanker load.
                  ``(C) Downward adjustment.--The Secretary shall 
                adjust downward to the next whole number increment of a 
                full tanker load if the quantity to be sold is less 
                than 50 percent of a full tanker load more than a whole 
                number increment of a full tanker load.
          ``(5) Delivery to other locations.--The State of Hawaii may 
        enter into an exchange or a processing agreement that requires 
        delivery to other locations, if a petroleum product of similar 
        value or quantity is delivered to the State of Hawaii.
          ``(6) Standard sales provisions.--Except as otherwise 
        provided in this Act, the Secretary may require the State of 
        Hawaii to comply with the standard sales provisions applicable 
        to purchasers of petroleum product at competitive sales.
          ``(7) Eligible entities.--
                  ``(A) In general.--Subject to subparagraphs (B) and 
                (C) and notwithstanding any other provision of this 
                paragraph, if the Governor of the State of Hawaii 
                certifies to the Secretary that the State has entered 
                into an agreement with an eligible entity to carry out 
                this Act, the eligible entity may act on behalf of the 
                State of Hawaii to carry out this subsection.
                  ``(B) Limitation.--The Governor of the State of 
                Hawaii shall not certify more than 1 eligible entity 
                under this paragraph for each notice of sale.
                  ``(C) Barred company.--If the Secretary has notified 
                the Governor of the State of Hawaii that a company has 
                been barred from bidding (either prior to, or at the 
                time that a notice of sale is issued), the Governor 
                shall not certify the company under this paragraph.
          ``(8) Supplies of petroleum products.--At the request of the 
        governor of an insular area or President of a freely associated 
        State the Secretary shall, for a period not to exceed 180 days 
        following a drawdown of the Strategic Petroleum Reserve, assist 
        the insular area in its efforts to maintain adequate supplies 
        of petroleum products from traditional and non-traditional 
        suppliers.''.
    (b) Regulations.--
          (1) In general.--The Secretary of Energy shall issue such 
        regulations as are necessary to carry out the amendment made by 
        subsection (a).
          (2) Administrative procedure.--Regulations issued to carry 
        out the amendment made by subsection (a) shall not be subject 
        to--
                  (A) section 523 of the Energy Policy and Conservation 
                Act (42 U.S.C. 6393); or
                  (B) section 501 of the Department of Energy 
                Organization Act (42 U.S.C. 7191).
    (c) Effective Date.--The amendment made by subsection (a) takes 
effect on the earlier of--
          (1) the date that is 180 days after the date of enactment of 
        this Act; or
          (2) the date that final regulations are issued under 
        subsection (b).

SEC. 3. ENERGY POLICY ACT OF 1992 AMENDMENT.

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

SEC. 4 ENERGY CONSERVATION AND PRODUCTION ACT AMENDMENT.

    Section 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) is amended to read as follows:
                   ``authorization of appropriations
    ``Sec. 422. For the purpose of carrying out the weatherization 
program under this part, there are authorized to be appropriated for 
each of fiscal years 1998 through 2002 such sums as may be 
necessary.''.

                         Purpose of the Measure

    The purpose of S. 417 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 [IEP]. Authorizations for the SPR and 
U.S. participation in the International Energy Agency [IEA] 
expire on September 30, 1997.

                          Background and Need

                      strategic petroleum reserve

    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 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 total storage capacity of 750 million barrels 
of oil with a maximum drawdown capability of 3.7 million 
barrels per day. The capacity will be reduced to 680 million 
barrels by the decommissioning of the Weeks Island, Louisiana 
storage site. The SPR currently contains approximately 564 
million barrels of oil. At its peak, the SPR contained 592 
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. Two 
years ago, the Department began degassifying the oil and has 
installed heat exchangers to cool the oil. The stabilization 
program is expected to take a total of three to four years to 
complete at an estimated cost of $60 million.
    In addition, the Weeks Island storage facility developed a 
geologic fissure, which required the removal and relocation of 
the oil to the Big Hill and Bayou Choctaw sites. This operation 
started in November 1995. The decommissioning of the Weeks 
Island facility is expected to take three to four years. The 
total estimated cost of moving the oil and decommissioning 
Weeks Island is $91 million. To pay for these activities, DOE 
requested, and received, authority to sell 5.1 million barrels 
of SPR oil for a total of $96 million in the fiscal year 1996 
``Balanced Budget Downpayment Act.'' Of the funds generated, 
$35 million was spent on Weeks Island in fiscal year 1996, with 
the other $61 million used for life extension activities and 
degassing at other SPR facilities.
    In addition to the Weeks Island sale, the fiscal year 1996 
budget agreement required the sale of 12.8 million barrels of 
SPR oil, for a total of $227 million, and the 1997 Omnibus 
Appropriations bill authorized the sale of up to 15 million 
barrels for $220 million. The funds raised by these sales were 
used to offset spending. The President's fiscal year 1998 
budget contained a proposal to raise $1.1 billion through the 
sale of SPR oil. This measure would require the sale of 50 
million barrels of oil at the Energy Information Administration 
price of $22.39 per barrel.
    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. In the past, the 
Department of Energy has recommended that further plans to 
expand the reserve should be linked to formation of a plan for 
completion of fill of the existing 750 million barrel capacity. 
This recommendation is based on the fact that 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. The current cost estimate to fill the existing 
capacity is $3.7-4.7 billion. Expanding the capacity another 
250 million barrels would require $10 billion additional 
investment in facilities and oil. S. 417 contains language that 
would clarify the authority of the Secretary to lease storage 
capacity in underutilized SPR facilities to foreign 
governments.
    On April 30, 1997, in preparation for the issuance of an 
Administration Statement of Policy concerning the capacity, 
size, use and financing, among other issues, of the SPR, DOE 
issued a notice of Opportunity for Public Comment on these 
issues. DOE plans to issue the Statement of Policy in the fall 
of 1997.

                      international energy program

    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 IEA implements 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 days commitment; and
          Legal authority to participate in the system by the 
        Government and private companies.
    At this time, the SPR contains approximately a 70-day 
supply, based on 7.9 million barrel per day net imports. The 
last time the EIA completed a stocks report, in October of 
1995, total U.S. stocks, including those privately held, 
contained approximately 171 days of net imports. This was down 
from a 203-day supply in October of 1993.
    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 
provision 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 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 the accepted policy within the 
IEA.
    During the Persian Gulf crises, 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 energy response actions 
agreed upon at the IEA. The Committee 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.

                           corect and coeect

    Title II of EPCA also 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.

                           title iii of epca

    The authorization for the State Energy Conservation 
programs, the Energy Conservation Program for Schools and 
Hospitals, expired after fiscal year 1993. The Alternative 
Fuels Truck Commercial Application Program expired after fiscal 
year 1995.

                         weatherization program

    Section 422 of the energy Conservation and Production Act, 
which is the weatherization program for low-income homeowners, 
expired after fiscal year 1994.

PURCHASES FROM STRATEGIC PETROLEUM RESERVE BY ENTITIES IN INSULAR AREAS 
                          OF THE UNITED STATES

    Hawaii is the most oil dependent State in the nation. Oil 
comprises 92 percent of the States'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 for the U.S. 
        Pacific territories of American Samoa, the Commonwealth 
        of the Northern Mariana Islands (CNMI) and Guam were 
        also address 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. 417 was introduced on March 10, 1997, by Senator 
Murkowski. A hearing was held on S. 417, S. 186, and S. 698 on 
May 13, 1997.

            Committee Recommendation and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business session on May 21, 1997, by majority vote of a 
quorum present recommends that the Senate pass S. 417, 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. Domenici \1\
Mr. Nickles \1\
Mr. Craig
Mr. Campbell \1\
Mr. Thomas
Mr. Kyl \1\
Mr. Grams
Mr. Smith
Mr. Gorton
Mr. Burns \1\
Mr. Bumpers
Mr. Ford \1\
Mr. Bingaman \1\
Mr. Akaka
Mr. Dorgan
Mr. Wyden
Mr. Johnson \1\
Ms. Landrieu

    \1\ Indicates vote by proxy.

                          Committee Amendments

    The Committee adopted an amendment in the nature of a 
substitute to S. 417. The amendment would extend the 
authorizations for the SPR through September 30, 2000 and the 
IEA authorities through September 30, 2002. S. 417, as 
introduced, would have authorized both authorities through 
September 30, 2002. The Committee amendment imposes a deadline 
of October 1, 1997, for the Secretary to prepare a statement of 
policy on SPR development, maintenance and drawdown, and 
specifies the issues the Secretary shall evaluate. Unlike S. 
417, as introduced, the amendment does not include language 
that would eliminate the provision of EPCA that links authority 
to sell oil from the United States' share of crude oil at the 
Naval Petroleum Reserve Number 1 to specified fill levels or 
rates for the SPR. Other EPCA authorizations extended through 
2002 by the amendment are the State Energy Conservation 
Program, the Energy Conservation Program for Schools and 
Hospitals, and the Alternative Fuels Truck Commercial 
Application Program. 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) would be authorized through 2002. The 
committee amendment would also reauthorize the low-income 
weatherization programs of the Energy Conservation and 
Production Act through 2002; and the Renewable Indian Energy 
Resources Program of EPCA through fiscal year 2000. The 
amendment also 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. 
The substitute amendment will also incorporate a portion of S. 
698, the ``Strategic Petroleum Reserve Replenishment Act,'' 
which requires that the revenue from leasing underutilized 
portions of the Strategic Petroleum Reserve be used to purchase 
petroleum products for the Reserve after October 1, 2002.

                      Section-by-Section Analysis

        section 1. energy policy and conservation act amendments

    Paragraph (1) would amend section 154 by adding a new 
subsection requiring the Department of Energy (DOE) to complete 
a statement of policy on the future of the Strategic Petroleum 
Reserve (SPR), including an evaluation of the effect of sales 
of oil from the SPR for budgetary purposes on the ability of 
the United States to meet its obligations under the 
international energy program. DOE has already issued a notice 
for comment on such a statement of policy and expects to 
complete it by the paragraph's deadline on October 1, 1997.
    Paragraph (2) would amend section 166 of EPCA to authorize 
appropriations necessary to implement the Strategic Petroleum 
Reserve for fiscal year 1998 through 2000.
    Paragraph (3) would add a new section 168 that would 
authorize the Secretary to lease underutilized Strategic 
Petroleum Reserve facilities for the storage of petroleum owned 
by a foreign government or its representatives. If necessary or 
appropriate, lease terms could exceed the five-year limitation 
of section 649(b) of the Department of Energy Organization Act.
    Subparagraph (b) would provide that, after October 1, 2002, 
funds resulting from the leasing of SPR facilities shall be 
available to the Secretary, without further appropriation, to 
purchase petroleum products for storage in the SPR.
    Paragraph (4) would amend section 181 of EPCA by extending 
the expiration date of title I from September 30, 1997, to 
September 30, 2000.
    Paragraph (5) is a technical correction which would amend 
section 251(e)(1) by striking section ``252(l)(1)'' and 
inserting in lieu thereof ``252(k)(1).''
    Paragraph (6) would amend section 252 of EPCA, which makes 
available to United States oil companies a limited antitrust 
defense and breach of contract defense for actions taken to 
carry out a voluntary agreement or plan of action to implement 
the ``allocation and information provisions'' of the Agreement 
on an International Energy Program. 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 contact defense) to U.S. companies when they assist 
the 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.
    Subparagraph (A) 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.
    Subparagraph (B) 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.''
    Subparagraph (C) 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.
    Subparagraph (D) 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.
    Subparagraph (E) 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.
    Subparagraph (F) 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.
    Subparagraph (G) would amend subsection 252(l) of EPCA to 
delete the reference to Chapter V of the IEP, and to specify 
that the antitrust defenses of EPCA section 252(f) shall extend 
only to those allocations required by the IEP during an 
international energy supply emergency, as specified in Chapters 
III and IV of the IEP.
    Paragraph (7) would amend subsection 256(h) of EPCA to 
authorize appropriations for fiscal years 1998 through 2002 for 
the activities of the interagency working group and interagency 
working subgroups (CORECT and COEECT) established by section 
256 of EPCA to promote exports of renewable energy and energy 
efficiency products and services.
    Paragraph (8) would amend section 281 of EPCA by extending 
the expiration date of title II from September 30, 1997 to 
September 30, 2002.
    Paragraph (9) would amend section 365 of EPCA to extend the 
authorization for appropriations for fiscal years 1998 through 
2002 for State Energy Conservation programs.
    Paragraph (10) would amend section 397 of EPCA to extend 
the authorization for appropriations for fiscal years 1998 
through 2002 for the Energy Conservation Program for Schools 
and Hospitals.
    Paragraph (11) would amend section 400BB of EPCA to extend 
the authorization for appropriation of the Alternative Fuels 
Truck Commercial Application Program to fiscal year 2002.

 section 2. purchases from strategic petroleum reserve by entities in 
                   insular areas of the united states

    Section 2 would add a new subsection 161(j) to EPCA to 
ensure that Hawaii has guaranteed access to the Strategic 
Petroleum Reserve during an oil supply disruption. To address 
Hawaii's vulnerability to supply disruption, the bill provides 
a mechanism to guarantee an award of SPR oil in the event of a 
drawdown. The section provides a mechanism whereby companies 
serving Hawaii would be able to submit binding offers for a 
fixed quantity of oil at a price equal to the average of all 
successful bids. The section also grants ships delivering 
petroleum to Hawaii expedited access to SPR loading docks.

             section 3. energy policy act of 1992 amendment

    Section 3 would amend section 2603 of the Energy Policy Act 
of 1992 (25 U.S.C. 3503) to extend the authorization of the 
Indian Energy Resources Program through 2000. The program was 
established in the Energy Policy Act of 1992 to assist Indian 
tribes in pursuing energy self-sufficiency.

      section 4. energy conservation and production act amendment

    Section 4 would amend section 422 of the Energy 
Conservation and Production Act to provide authorization for 
appropriations for the weatherization program in fiscal years 
1998-2002.

    Cost and Budgetary Considerations and Federal Mandate Evaluation

    The following estimate of costs of this measure and Federal 
mandate evaluation has been provided by the Congressional 
Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 22, 1997.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 417, a bill to 
extend energy conservation programs under the Energy Policy and 
Conservation Act through September 30, 2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Kathleen 
Gramp (for federal costs) and Marjorie Miller (for the state 
and local impact).
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

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

    Summary: S. 417 would reauthorize certain activities and 
programs of the Department of Energy (DOE) through 2002. It 
would authorize the appropriation of such sums as may be 
necessary for selected energy conservation programs for fiscal 
years 1998 through 2002 and for the Strategic Petroleum Reserve 
(SPR) for 1998 through 2000. The annual authorization of $30 
million for the Renewable Indian Energy Resources program would 
be extended through 2000. The bill also would revise the terms 
under which DOE could lease excess SPR capacity to foreign 
governments and would authorize the department to spend any 
income derived from leasing to purchase oil for the reserve 
without further appropriation beginning in fiscal year 2003. 
Other provisions in the bill would modify and extend federal 
authorities and requirements related to energy emergencies, and 
enable the state of Hawaii to purchase oil from the SPR under 
certain conditions.
    Assuming the appropriation of the necessary amounts, CBO 
estimates that enacting S. 417 would result in additional 
discretionary spending totaling between $1.4 billion and $1.5 
billion over the 1998-2002 period. For the purposes of this 
estimate, CBO assumes that some of the excess capacity of the 
SPR would be leased to foreign governments beginning in 1999, 
yielding an estimated $13 million in offsetting receipts over 
the 1999-2002 period. Because the increase in offsetting 
receipts is not expected until after 1998 and the bill would 
have no other effect on direct spending or receipts, pay-as-
you-go procedures would not apply. S. 417 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act of 1995 (UMRA) and would impose no 
costs on state, local, or tribal governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 417 is shown in the following table. For 
the purposes of this estimate, CBO assumes that the amounts 
authorized by the bill will be appropriated by the start of 
each fiscal year and that outlays will follow the historical 
spending trends for these activities.

                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                              1997     1998     1999     2000     2001     2002 
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION                                       
Spending under current law:                                                                                     
    Estimated budget authority \1\........................      167        0        0        0        0        0
    Estimated outlays.....................................      231      240       55        8        0        0
``Such Sums'' authorizations projected at the 1997 level:                                                       
    Proposed changes:                                                                                           
        Estimated authorization level.....................        0      415      415      415      165      165
        Estimated outlays.................................        0      176      354      407      281      193
    Spending under S. 417:                                                                                      
        Estimated authorization level \1\.................      167      415      415      415      165      165
        Estimated outlays.................................      231      417      409      415      281      193
``Such Sums'' authorizations adjusted for inflation:                                                            
    Proposed changes:                                                                                           
        Estimated authorization level.....................        0      425      436      447      184      189
        Estimated outlays.................................        0      180      367      431      302      214
    Spending under S. 417:                                                                                      
        Estimated authorization level \1\.................      167      425      436      447      184      189
        Estimated outlays.................................      231      421      422      439      302      214
                                                                                                                
                                           CHANGES IN DIRECT SPENDING                                           
                                                                                                                
Estimated budget authority................................        0        0       -1       -2       -4       -6
Estimated outlays.........................................        0        0       -1       -2       -4       -6
----------------------------------------------------------------------------------------------------------------
\1\ The 1997 level is the net amount appropriated for that year.                                                

    The costs of this legislation fall within budget function 
270 (energy).

                           basis of estimate

Spending subject to appropriation

    For programs for which authorizations are not specified by 
the bill, CBO generally projected spending based on the amounts 
appropriated for the current year. In the two cases in which 
programs did not receive new budget authority in 1997, the 
projections are based on the expected level of funding 
available for the activities this year. For example, the SPR 
facilities and operation account received a net appropriation 
of zero because the 1997 spending authority of $220 million was 
offset by an equal amount of receipts generated by the sale of 
oil from the reserve. For the purposes of this estimate, we 
have based our projects for the SPR on the $220 million in 
spending authority provided for 1997. Likewise, no funds were 
appropriated for 1997 for the Committee on Renewable Energy 
Commerce and Trade, under the assumption that the activities 
would be funded at about $2 million using previously 
appropriated balances. Hence, the estimated authorization for 
these activities was based on the 1997 program level of $2 
million. In total, the gross program level in 1997 for the 
activities affected by S. 417 is $389 million: $220 million for 
the SPR, $165 million for the conservation programs being 
reauthorized, and $4 million for the Renewable Indian Energy 
Resources program.
    The table shows two alternative sets of authorization 
levels for fiscal years 1998 through 2002: one without 
adjustment for anticipated inflation, and a second that 
includes an adjustment for inflation for programs for which 
authorizations are not specified by the bill. The estimates 
drop significantly in 2001 because the bill would reauthorize 
funding for the SPR and the Renewable Indian Energy Resources 
program for only the next three years. Other provisions of the 
bill would not have a significant effect on discretionary 
spending.

Direct spending

    S. 417 would remove some of the statutory impediments to 
leasing the excess capacity of the SPR to foreign governments. 
For example, products stored on behalf of foreign governments 
would not be considered part of the U.S. reserve and could be 
exported. Estimates of how much of the 110 million barrels of 
excess capacity would be leased are speculative, because the 
decision to lease resides with foreign governments, not DOE. At 
this time, most nations needing capacity either have plans for 
domestic storage or face regulatory barriers to using U.S. 
facilities. For the purposes of this estimate, CBO assumes that 
one or more nations would chose to store small quantities of 
oil in the SPR over the 1999-2002 period toaccommodate growth 
in their storage requirements or to satisfy other strategic objectives. 
We estimate that such leasing activity would generate offsetting 
receipts totaling about $13 million over the 1999-2002 period, assuming 
a storage fee of about $1.20 per barrel (in 1997 dollars). Beginning in 
2003, this provision would no longer generate net receipts, because DOE 
would be authorized to spend the proceeds from leasing to purchase oil 
for the reserve without further appropriation.
    Pay-as-you-go considerations: None.
    Estimated impact on State, local, and tribal governments: 
S. 417 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments.
    The bill would extend the authorization of appropriations 
for grants to states, tribes, and localities for low-income 
weatherization and other energy conservation programs through 
fiscal year 2002. Fiscal year 1997 appropriations are about 
$121 million for weatherization grants to states and about $29 
million for a consolidated energy conservation grant program. 
The bill would authorize appropriations for these programs at 
an unspecified level. The existing law authorizing the energy 
conservation grants requires states and localities to provide 
matching funds equaling at least 20 percent of program costs.
    S. 417 also would extend the authorization for grants to 
tribes under the Renewable Indian Energy Resources program 
through fiscal year 2000 at the current level of $30 million 
each year. Fiscal year 1997 appropriations for this program are 
only $4 million.
    The state of Hawaii could benefit from another provision in 
the bill that would guarantee that the state would be allowed 
to purchase oil from the SPR during a drawdown of the reserve.
    Estimated impact on the private sector: This bill would 
impose no new private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal cost: Kathleen Gramp; impact 
on State, local, and tribal governments: Marjorie Miller.
    Estimate approved by: Robert A. Sunshine, Deputy Assistant 
Director for Budget Analysis.

                      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. 417. 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. 417, 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

          * * * * * * *

        TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY

                        Part A--Domestic Supply

          * * * * * * *

                  Part B--Strategic Petroleum Reserve

                         declaration of policy

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

                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.
          * * * * * * *
    (j) Purchases From Strategic Petroleum Reserve by Entities 
in Insular Areas of United States and Freely Associated 
States.--
          (1) Definitions.--In this subsection.
                  (A) Binding offer.--The term ``binding 
                offer'' means a bid submitted by the State of 
                Hawaii for an assured award of a specific 
                quantity of petroleum product, with a price to 
                be calculated pursuant to paragraph (2) of this 
                subsection, that obligates the offeror to take 
                title to the petroleum product without further 
                negotiation or recourse to withdraw the offer.
                  (B) Category of petroleum product.--The term 
                ``category of petroleum product'' means a 
                master line item within a notice of sale.
                  (C) Eligible entity.--The term ``eligible 
                entity'' means an entity that owns or controls 
                a refinery that is located within the State of 
                Hawaii.
                  (D) Full tanker load.--The term ``full tanker 
                load'' means a tanker of approximately 700,000 
                barrels of capacity, or such lesser tanker 
                capacity as may be designated by the State of 
                Hawaii.
                  (E) Insular area.--The term ``insular area'' 
                means the Commonwealth of Puerto Rico, the 
                Commonwealth of the Northern Mariana Islands, 
                the United States Virgin Islands, Guam, 
                American Samoa, and the Freely Associated 
                States of the Republic of the Marshall Islands, 
                the Federated States of Micronesia, and the 
                Republic of Palau.
                  (F) Offering.--The term ``offering'' means a 
                solicitation for bids for a quantity or 
                quantities of petroleum product from the 
                Strategic Petroleum Reserve as specified in the 
                notice of sale.
                  (G) Notice of sale.--The term ``notice of 
                sale'' means the document that announces--
                          (i) the sale of Strategic Petroleum 
                        Reserve products;
                          (ii) the quantity, characteristics, 
                        and location of the petroleum product 
                        being sold;
                          (iii) the delivery period for the 
                        sale; and
                          (iv) the procedures for submitting 
                        offers.
          (2) In general.--In the case of an offering of a 
        quantity of petroleum product during a drawdown of the 
        Strategic Petroleum Reserve--
                  (A) the State of Hawaii, in addition to 
                having the opportunity to submit a competitive 
                bid, may--
                          (i) submit a binding offer, and shall 
                        on submission of the offer, be entitled 
                        to purchase a category of a petroleum 
                        product specified in a notice of sale 
                        at a price equal to the volumetrically 
                        weighted average of the successful bids 
                        made for the remaining quantity of the 
                        petroleum product within the category 
                        that is the subject of the offering; 
                        and
                          (ii) submit 1 or more alternative 
                        offers, for other categories of the 
                        petroleum product, that will be binding 
                        if no price competitive contract is 
                        awarded for the category of petroleum 
                        product on which a binding offer is 
                        submitted under clause (i); and
                  (B) at the request of the Governor of the 
                State of Hawaii, a petroleum product purchased 
                by the State of Hawaii at a competitive sale or 
                through a binding offer shall have first 
                preference in scheduling for lifting.
          (3) Limitation on quantity.--
                  (A) In general.--In administering this 
                subsection, in the case of each offering, the 
                Secretary may impose the limitation described 
                in subparagraph (B) or (C) that results in the 
                purchase of the lesser quantity of petroleum 
                product.
                  (B) Portion of quantity of previous 
                imports.--The Secretary may limit the quantity 
                of a petroleum product that the State of Hawaii 
                may purchase through a binding offer at any 
                offering to \1/12\ of the total quantity of 
                imports of the petroleum product brought into 
                the State during the previous (or other period 
                determined by the Secretary to be 
                representative).
                  (C) Percentage of offering.--The Secretary 
                may limit the quantity that may be purchased 
                through binding offers at any offering to 3 
                percent of the offering.
          (4) Adjustments.--
                  (A) In general.--Notwithstanding any 
                limitation imposed under paragraph (3), in 
                administering this subsection, in the case of 
                each offering, the Secretary shall, at the 
                request of the Governor of the State of Hawaii, 
                or an eligible entity certified under paragraph 
                (7), adjust the quantity to be sold to the 
                State of Hawaii in accordance with this 
                paragraph.
                  (B) Upward adjustment.--The Secretary shall 
                adjust upward to the next whole number 
                increment of a full tanker load if the quantity 
                to be sold is--
                          (i) less than 1 full tanker load; or
                          (ii) greater than or equal to 50 
                        percent of a full tanker load more than 
                        a whole number increment of a full 
                        tanker load.
                  (C) Downward adjustment.--The Secretary shall 
                adjust downward to the next whole number 
                increment of a full tanker load if the quantity 
                to be sold is less than 50 percent of a full 
                tanker load more than a whole number increment 
                of a full tanker load.
          (5) Delivery to other locations.--The State of Hawaii 
        may enter into an exchange or a processing agreement 
        that requires delivery to other locations, if a 
        petroleum product of similar value or quantity is 
        delivered to the State of Hawaii.
          (6) Standard sales provisions.--Except as otherwise 
        provided in this Act, the Secretary may require the 
        State of Hawaii to comply with the standard sales 
        provisions applicable to purchasers of petroleum 
        product at competitive sales.
          (7) Eligible entities.--
                  (A) In general.--Subject to the subparagraphs 
                (B) and (C) and notwithstanding any other 
                provisions of this paragraph, if the Governor 
                of the State of Hawaii certifies to the 
                Secretary that the State has entered into an 
                agreementwith an eligibility entity to carry 
out this Act, the eligible entity may act on behalf of the State of 
Hawaii to carry out this subsection.
                  (B) Limitation.--The Governor of the State of 
                Hawaii shall not certify more than 1 eligible 
                entity under this paragraph for each notice of 
                sale.
                  (C) Barred company.--If the Secretary has 
                notified the Governor of the State of Hawaii 
                that a company has been barred from bidding 
                (either prior to, or at the time that a notice 
                of sale is issued), the Governor shall not 
                certify the company under this paragraph.
          (8) Supplies of petroleum products.--At the request 
        of the governor of an insular or President of a freely 
        Associated State, the Secretary shall, for a period not 
        to exceed 180 days following a drawdown of the 
        Strategic Petroleum Reserve, assist the insular area in 
        its efforts to maintain adequate supplies of petroleum 
        products from traditional and non-traditional 
        suppliers.
          * * * * * * *

                    [authorization of appropriations

    [Sec. 166. There are authorized to be appropriated for 
fiscal year 1997 such sums as may be necessary to implement 
this part.]


                    authorization of appropriations


    Sec. 166. There are authorized to be appropriated for each 
of fiscal years 1998 through 2000 such sums as may be necessary 
to implement this part.
          * * * * * * *


                    use of underutilized facilities


    Sec. 168. (a) Notwithstanding section 649(b) of the 
Department of Energy Organization Act (42 U.S.C. 7259(b)), the 
Secretary is authorized to store in underutilized Strategic 
Petroleum Reserve facilities, by lease or otherwise, petroleum 
product owned by a foreign government or its representative. 
Petroleum product stored under this section is not part of the 
Strategic Petroleum Reserve, is not subject to part C of this 
title, and notwithstanding any provision of this Act, may be 
exported from the United States.
    (b) Beginning on October 1, 2002, funds resulting from the 
leasing or other use of a Reserve facility under subsection (a) 
shall be available to the Secretary, without further 
appropriation, for the purchase of petroleum products for the 
Reserve.
          * * * * * * *

                           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, September 30, [1997] 2000, 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, September 30, [1997] 2000.
          * * * * * * *

    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(l)(1)] 
        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] international 
        emergency response provisions of the international 
        energy program, 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] international emergency response provisions of the 
international energy program.
          * * * * * * *
    (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) There shall be available as a defense to any civil 
or criminal action brought under the antitrust laws (or any 
similar State law) in respect to actions taken to develop or 
carry out a voluntary agreement or plan of action by persons 
engaged in the business of producing, transporting, refining, 
distributing, or storing petroleum products (provided that such 
actions were not taken for the purpose of injuring competition) 
that--
          (A) such actions were taken--
                  (i) in the course of developing a voluntary 
                agreement or plan of action pursuant to this 
                section, or
                  (ii) to carry out a voluntary agreement or 
                plan of action authorized and approved in 
                accordance with this section, and
          (B) such persons complied with the requirements of 
        this section and the rules promulgated hereunder.
    (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.
    (3) Persons interposing the defense provided by this 
subsection shall have the burden of proof, except that the 
burden shall be on the person against whom the defense is 
asserted with respect to whether the actions were taken for the 
purpose of injuring competition.
    (g) No provision of this section shall be construed as 
granting immunity for, or as limiting or in any way affecting 
any remedy or penalty which may result from any legal action or 
proceeding arising from, any act or practice which occurred 
prior to the date of enactment of this Act or subsequent to its 
expiration or repeal.
    [(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) 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.]
    (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.
          * * * * * * *
    (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 
                        impending 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 program.]
    (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.
          * * * * * * *
    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 for fiscal year 1997 such 
sums as may be necessary to carry out this part. There are 
authorized to be appropriated for each fiscal years 1998 
through 2002 such sums as may be necessary to carry out this 
part.
          * * * * * * *

                           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, September 30, [1997] 2002, 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, September 30, [1997] 2002.
[42 u.s.c. 6285]
          * * * * * * *

                           general provisions

    Sec. 365. (a) The Secretary may prescribe such rules as may 
be necessary or appropriate to carry out his authority under 
this part.
          * * * * * * *
    (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.] for each of fiscal years 1998 through 2002 such 
sums as may be necessary.
          * * * * * * *

                    [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.]


                    authorization of appropriations


    Sec. 397. For the purpose of carrying out this part, there 
are authorized to be appropriated for each of fiscal years 1998 
through 2002 such sums as may be necessary.
          * * * * * * *

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 each of fiscal years 1998 
through 2002, to remain available until expended.''.

                  TITLE XXVI--INDIAN ENERGY RESOURCES

SEC. 2601. DEFINITIONS.

    For purposes of this title--
          * * * * * * *

SEC. 2603. PROMOTING ENERGY RESOURCE DEVELOPMENT AND ENERGY VERTICAL 
                    INTEGRATION ON INDIAN RESERVATIONS.

    (a) Demonstration Programs.--The Secretary of Energy, in 
consultation with the Secretary of the Interior, shall 
establish and implement a demonstration program to assist 
Indian tribes in pursuing energy self-sufficiency and to 
promote the development of a vertically integrated energy 
industry on Indian reservations, in order to increase 
development of the substantial energy resources located on such 
Indian reservations. Such program shall include, but not be 
limited to, the following components:
          (1) The Secretary shall provide development grants to 
        Indian tribes or to joint ventures which are 51 percent 
        or more controlled by an Indian tribe to assist Indian 
        tribes in obtaining the managerial and technical 
        capability needed to develop the energy resources on 
        Indian reservations. Such grants shall include 
        provisions for management training for tribal or 
        village members, improving the technical capacity of 
        the Indian tribe, and the reduction of tribal 
        unemployment. Each grant shall be for a period of 3 
        years.
          (2) The Secretary shall provide grants, not to exceed 
        50 percent of the project costs, for vertical 
        integration projects. For purposes of this paragraph, 
        the term ``vertical integration project'' means a 
        project that promotes the vertical integration of the 
        energy resources on an Indian reservation, so that the 
        energy resources are used or processed on such Indian 
        reservation. Such term includes, but is not limited to, 
        projects involving solar and wind energy, oil 
        refineries, the generation and transmission of 
        electricity, hydroelectricity, cogeneration, natural 
        gas distribution, and clean, innovative uses of coal.
          (3) The Secretary shall provide technical assistance 
        (and such other assistance as is appropriate) to Indian 
        tribes for energy resource development and to promote 
        the vertical integration of energy resources on Indian 
        reservations.
    (b) Low Interest Loans.--
          (1) In general.--The Secretary shall establish a 
        program for making low interest loans to Indian tribes. 
        Such loans shall be used exclusively by Indian tribes 
        in the promotion of energy resource development and 
        vertical integration on Indian reservations.
          (2) Terms.--The Secretary shall establish reasonable 
        terms for loans made under this section which are to be 
        used to carry out the purposes of this section.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated--
          (1) $10,000,000 for each of the fiscal years 1994, 
        1995, 1996, [and 1997] 1997, 1998, 1999, and 2000 to 
        carry out the purposes of subsection (a)(1);
          (2) $10,000,000 for each of the fiscal years 1994, 
        1995, 1996, [and 1997] 1997, 1998, 1999, and 2000 to 
        carry out the purposes of subsection (a)(2); and
          (3) $10,000,000 for each of the fiscal years 1994, 
        1995, 1996, [and 1997] 1997, 1998, 1999, and 2000 to 
        carry out the purposes of subsection (b).

                 ENERGY CONSERVATION AND PRODUCTION ACT

                     Public Law 94-385, as Amended

          * * * * * * *

                    [authorization of appropriations

    [Sec. 422. (a) There are authorized to be appropriated for 
purposes of carrying out the weatherization program under this 
part, other than under subsections (d) and (e) of section 415, 
not to exceed $200,000,000 for fiscal year 1991 and such sums 
as may be necessary for fiscal years 1992, 1993, and 1994.
    [(b) There are authorized to be appropriated for purposes 
of carrying out the weatherization program under subsections 
(d) and (e) of section 415, not to exceed $20,000,000 for 
fiscal year 1992 and such sums as may be necessary for fiscal 
years 1993 and 1994.]


                    authorization of appropriations


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