To amend the Energy Policy and Conservation Act.

Amends the Energy Policy and Conservation Act to direct the Secretary of Energy to: (1) establish a program for the filling of the Strategic Petroleum Reserve at a specified rate for FY 1990 and thereafter until the quantity of crude oil in storage in the Reserve is at least 750,000,000 barrels; and (2) provide for storage in the Reserve of petroleum product equal to a percentage which the Secretary determines periodically to be sufficient to produce such fill rate if the percentage is applied uniformly to all importers. Prescribes implementation procedures.

Directs the Secretary to assess and collect charges from each person who has petroleum product stored in the Reserve.

Increases from 75,000 barrels to 100,000 barrels the average daily fill rate which must be attained for the Strategic Petroleum Reserve before crude oil in the Elk Hills Naval Petroleum Reserve may be sold to an entity other than the Strategic Petroleum Reserve.

Extends authorities relating to the Strategic Petroleum Reserve until September 30, 1995.

 
HR 2047 IH
101st CONGRESS
1st Session
 H. R. 2047
To amend the Energy Policy and Conservation Act.
IN THE HOUSE OF REPRESENTATIVES
April 18, 1989
Mr. LELAND introduced the following bill; which was referred to the Committee
on Energy and Commerce
A BILL
To amend the Energy Policy and Conservation Act.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. FILL OF THE STRATEGIC PETROLEUM RESERVE.
  (a) IN GENERAL- Part B of title I of the Energy Policy and Conservation
  Act (42 U.S.C. 6231 et seq.) is amended by adding at the end the following
  new section:
`FILL OF THE RESERVE AFTER FISCAL YEAR 1989
  `SEC. 168. (a) The Secretary of Energy shall establish and implement during
  fiscal year 1990 a program for the filling of the Reserve at an average rate
  of at least 100,000 barrels per day during such fiscal year, and each fiscal
  year thereafter, in the manner provided in this section until the quantity
  of crude oil in storage within the Reserve is at least 750,000,000 barrels.
  `(b)(1) In establishing and implementing such program, the Secretary shall
  provide, through regulations and orders (including regulations and orders
  to minimize administrative and operating costs of the Reserve) issued under
  this section, that each importer (as defined in section 152(2)) shall provide
  for the storage in the Reserve of an amount of petroleum product equal to a
  percentage, described in paragraph (2), of the amount of petroleum product--
  `(A) which is entered into the United States during any fiscal year after
  fiscal year 1989 for consumption, use, or warehousing; and
  `(B) which is owned first by such importer at the first place of storage
  in the United States.
  `(2) The percentage referred to in paragraph (1) is a percentage which the
  Secretary determines periodically to be sufficient, if applied uniformly
  to all importers, to produce the fill rate for the Reserve required under
  subsection (a).
  `(c) Through regulations and orders issued under this section, the Secretary
  shall provide each importer a credit toward the importer's requirement
  under subsection (b)(1) by reducing the amount of petroleum product owned
  by an importer for purposes of subsection (b)(1)(B) by an amount equal to
  the amount of petroleum product which is entered into the United States
  for consumption, use, or warehousing and which is owned first by such
  importer at the first place of storage in the United States and then is
  refined into another petroleum product and exported from the United States.
  `(d) Through regulations and orders issued under this section, the
  Secretary may provide that the petroleum product stored in the Reserve
  under this section be limited to crude oil determined to be appropriate by
  the Secretary, and may make and require arrangements necessary to assure
  that each importer provide for the storage in the Reserve of an amount of
  such crude oil, in lieu of other petroleum product, that is equivalent to
  the amount of petroleum product required to be stored in the Reserve by
  such importer under this section.
  `(e)(1) When the petroleum product stored in the Reserve under this section
  is distributed as a result of a drawdown under section 161, the Secretary
  shall provide for the payment to each importer, or the importer's assignee,
  of the amount received for the sale of the petroleum product stored in
  the Reseve as a result of actions taken by such importer.
  `(2) In carrying out paragraph (1), the Secretary shall--
  `(A) in determining which petroleum product in the Reserve has been stored
  there under this section, consider the first amount of petroleum product
  withdrawn from the Reserve (to the extent of the amount of the petroleum
  product stored in the Reserve under this section) to be the petroleum
  product stored in the Reserve under this section; and
  `(B) provide for the payments to importers to be made on the basis of the
  order in which the importers provided for the storage of petroleum product
  in the Reserve.'.
SEC. 2. ASSESSMENT AND COLLECTION OF CHARGES.
  Part B of title I of the Energy Policy and Conservation Act (42 U.S.C. 6321
  et seq.) is amended by adding at the end the following new section:
`ASSESSMENT AND COLLECTION OF CHARGES
  `SEC. 169. (a) The Secretary shall, through regulations and orders issued
  under this section, assess and collect charges, beginning in fiscal year
  1990, from each person who has petroleum product stored in the Reserve
  pursuant to the program established under section 168.
  `(b) The amount of such charges assessed for each person during any fiscal
  year shall be an amount equal to--
  `(1) an amount which bears the same proportion to the total amount, as
  estimated by the Secretary, needed to construct, maintain, and administer
  facilities necessary for the storage, during such fiscal year, of petroleum
  product in the Reserve as a result of the program established under section
  168, as
  `(2) the amount of petroleum product that will be stored in the Reserve by
  such person during such fiscal year as a result of the program established
  under section 168, as estimated by the Secretary, bears to the total amount
  of petroleum product that will be stored in the Reserve under such program
  during such fiscal year.
  `(c) An amount equal to the amount of charges received under this section
  shall be used, to the extent provided in appropriations Acts, for the
  construction, maintenance, and administration of storage facilities of
  the Reserve.
  `(d) The Secretary shall provide that the charges assessed under this section
  shall be paid by the end of the fiscal year for which they were assessed.
  `(e) The Secretary shall, after the completion of a fiscal year, make
  adjustments in the assessments made under this section for such fiscal
  year. Such adjustments shall be made on the basis of the complete data
  applicable to the fiscal year concerned, as determined by the Secretary,
  and shall be used for making adjustments in assessments made under this
  section for the following fiscal year.'.
SEC. 3. OTHER PROVISIONS.
  (a) NAVAL PETROLEUM RESERVES- Section 160(d)(1)(B) of the Energy Policy
  and Conservation Act (42 U.S.C. 6240(d)) is amended by striking out
  `75,000 barrels' and inserting in lieu thereof `100,000 barrels'.
  (b) EXTENSION- Part B of title II of such Act (42 U.S.C. 6231 et seq.) is
  amended by adding the following new section at the end:
`DURATION OF AUTHORITY
  `SEC. 170. The provisions of this part shall expire on September 30, 1995.'.
  (c) CONFORMING AMENDMENTS- (1) Section 159(f) of such Act (42 U.S.C. 6239(f))
  is amended--
  (A) by striking out `and' at the end of paragraph (4); and
  (B) by striking out the comma at the end of paragraph (5) and inserting
  in lieu thereof `, and';
  (C) by inserting after paragraph (5) the following:
  `(6) sections 168 and 169,';
  (D) by striking out `and' at the end of subparagraph (K);
  (E) by striking out the period at the end of subparagraph (L) and inserting
  in lieu thereof `; and'; and
  (F) by inserting after subparagraph (L) the following:
  `(M) require any person to comply with regulations or orders issued under
  section 168 or 169.'.
  (2) Section 160(a) of such Act (42 U.S.C. 6240(a)) is amended by inserting
  before the period at the end of paragraph (3) the following: `, including
  petroleum product provided under the program established under section 168.'.
  (3) Section 160(c)(3) of such Act (42 U.S.C. 6240(c)) is amended to read
  as follows:
  `(3) Notwithstanding paragraph (2) and until the quantity of crude oil in
  storage within the Reserve is at least 750,000,000 barrels, the President
  shall, through the Secretary of Energy's implementation of section 168,
  provide for the fill of the Reserve at the rate required under such
  section.'.
  (4) The table of contents of such Act is amended by adding at the end of
  the items for part B of title I of such Act the following:
`Sec. 168. Fill of the Reserve after fiscal year 1989.
`Sec. 169. Assessment and collection of charges.
`Sec. 170. Duration of authority.'.
SEC. 4. EFFECTIVE DATE.
  The amendments made by this Act shall take effect on October 1, 1989.