Energy Conservation and Oil Policy Act

(Measure passed House, amended, roll call #538 (255-148))

Energy Conservation and Oil Policy Act - =Title I: Findings, Purpose, and Definitions= - Sets forth findings, purposes, and definitions pertaining to this Act. Expands the definition of Federal lands to include park, wildlife refuge, wilderness, national forest, wild and scenic rivers, and military reservations.

=Title II: Standby Energy Authorities and National Civilian Strategic Petroleum Reserve= - Requires the President to transmit to the Congress, within 180 days of enactment, one or more conservation contingency plans and a gasoline rationing contingency plan. Limits the effective period of any such plan to 18 months.

Requires the President to justify such a plan to the Congress; and sets forth procedures by which each House of the Congress must approve any such plan. Permits such a plan to be effectuated during any 7 percent shortfall period to comply with obligations under the international energy program.

Permits the President to put a contingency plan into effect 90 days after enactment of this Act for a period of 60 days if a severe energy supply interruption exists and if the Congress does not disapprove.

Prohibits an energy conservation contingency plan from imposing gasoline rationing or any tax, tariff, user fee, a minimum price on any petroleum product, or from providing for a credit or deduction in any tax.

Requires the President to establish a gasoline rationing contingency plan, which may only be effectuated if all other practicable and authorized methods will not attain the objectives of this Act.

Directs the President to provide for the use of local boards to receive petitions from and make adjustments for classes of and users of gasoline when rationing is in effect.

Sets forth procedures for implementation by the President for a period of 18 months of the obligations arising from the international energy program relating to international allocation.

Authorizes the Federal Energy Administration Administrator to prescribe procedures by which producers, refiners, and marketers, and distributors of petroleum may carry out agreements to implement allocation.

Sets forth provisions providing for public attendance at and opportunity to be heard at meetings held to develop or carry out such agreements. Requires transcripts to be kept of any communication made between parties or potential parties to any such agreement.

Describes the prerogatives of the Attorney General and the Federal Trade Commission in such meetings. Requires their approval before implementation of any such agreement, and requires them to monitor the operation of such agreements to prevent anticompetitive effects.

Requires the FTC to report to the Congress and the President every 6 months on the impact on competition and small business of the operation of such agreements. Requires the Attorney General to prescribe rules with respect to such agreements.

Permits the Administrator to transmit to the Secretary of State and for the Secretary to transmit to the International Energy Agency the information related to the energy industry certified by the Secretary as required to be submitted under the international energy program.

Authorizes the President, during any severe energy supply interruption, to require allocation of supplies of materials and equipment essential to maintain exploration, production, refining, transportation of energy supplies or the construction and maintenance of energy facilities. Requires the President to report to the Congress 30 days after enactment on the manner in which such materials allocation authority has been exercised.

Declares it to be the policy of the United States to create a National Civilian Strategic Petroleum Reserve of 1,000,000,000,000 barrels of petroleum products. Requires the President to submit a plan for such reserve to the Congress within a year of enactment. Details required inclusions for such plan. Requires the President to submit within 60 days of enactment a plan to the Congress for creation of an Early Reserve Storage Reserve. Sets forth procedures for implementation of such plans, including transmittal to the Congress.

Allows the President, in order to implement the strategic reserve plan, to condemn land for the location of storage facilities, and allocate materials and facilities.

Permits the President to drawdown and distribute the reserve, in a severe energy supply interruption, in accordance with the Disposal Plan required to be transmitted to the Congress.

Authorizes appropriations through fiscal year 1978 to carry out the provisions of this title.

=Title III: Oil Pricing Policy and Measures to Maximize Availability of Energy Supplies= - Sets the ceiling price for the first sale of a particular grade of domestic crude oil at: (1) in the case of sales from a property (other than sales from a stripper well lease) in a month in volume amounts equal to or less than the production volume subject to ceiling price, the sum of the field price on May 15, 1973; and a maximum of $1.35 per barrel; (2) in the case of sales from a property (other than sales from a stripper well lease), from which domestic crude oil was produced and sold in one or more of the months of May through December 1972, in a month in volume amounts greater than the production volume subject to ceiling price but less than the base period control volume, the sum of the field price on May 15, 1973; and $3.60 per barrel, plus an inflation adjustment factor; (3) commencing with the third full month after the date of enactment in the case of sales from any stripper well lease or in the case of sales of domestic crude oil to which paragraph (1), (2), or (4) does not apply (A) the lesser of: (1) $7.50 per barrel, plus an inflation adjustment factor; or (2) the sum (a) the field price on January 31, 1975 less $3.82 per barrel; plus (b) an inflation adjustment factor; (B) in the case of such sales from a property located above the Arctic Circle or located in the Outer Continental Shelf, such higher price as the President may, upon his own motion or upon petition, establish for such property, by rule, based upon kind and quality of crude oil produced or the cost of production, but in no case may such price exceed an average of $10.00 per barrel plus an inflation adjustment factor for sales from such properties; and (C) in the case of such sales from a property classified by the President, on a property-by-property basis, as a "high cost property", such higher price as the President may, by rule, establish but in no case may such price exceed an average of $8.50 per barrel, plus an inflation adjustment factor sales from such properties. The classification of a property as a "high cost property" shall be made pursuant to procedures which shall be incorporated in a rule promulgated by the President which takes effect in accordance with the congressional review provisions specified in the Energy Conservation and Oil Policy Act of 1975; (4) in the case of such sales from a property which the President, upon petition certifies on a property-by-property basis, (A) as having made bona fide application of tertiary recovery techniques, and (B) that such application has or will significantly enhance production from such property; such higher price as the President may, by rule, establish, but in no case may such higher price exceed an average of $10.00 per barrel, plus an inflation adjustment factor.

States that if the President determines that the ceiling prime amount should be modified, he shall publish notice of such determination in the Federal Register and afford interested persons an opportunity to present written and oral data, views, and arguments with respect to such modification. Provides that the modification shall become effective if the President transmits to the Congress a proposal to modify such amount in accordance with the Energy Conservation and Oil Policy Act of 1975, accompanied by his findings with respect to the specified matters, and if neither House disapproves (or both Houses approve) such proposal in accordance with the congressional review procedures specified in such Act.

Provides that specified oil and gas produced on the Outer Continental Shelf shall be subject to all of the limitations and licensing requirements of the Export Administration Act of 1969 and, in addition, before any oil or gas subject to these provisions may be exported under the limitations and licensing requirements and penalty and enforcement provisions of the Export-Administration Act of 1969 the President must make and publish an express finding, and submit it to the Congress, that such exports will not increase reliance on imported oil or gas and are in the national interest and are in accord with the provisions of the Export Administration Act.

States that the President shall have no power to prescribe minimum prices for crude oil, residual fuel oil, or any refined petroleum product.

Provides that the specification of (or manner for determining) prices of residual fuel oil and each refined petroleum product which is refined and sold, or distributed in commerce, by a refiner during any month, after the month during which the date of enactment of this title occurs, whose refinery facilities are located in the United States, shall reflect: (1) in the case of a refiner engaged in business during calendar year 1972, the proportionate distribution of costs to such oil and each such product as was customarily maintained by such refiner for comparable months in such year; or (2) in the case of a refiner which was not engaged in business in 1972, the direct proportionate distribution of costs to such oil and each such product, except that, the President may, by order, permit any refiner to deviate from such proportionate distribution of costs if the President finds that the methods of operation of such refiner justify such deviation.

Permits the President to require crude oil or natural gas to be produced from fields designated by him at the maximum efficient rate of production or at the temporary emergency production rate.

Requires agreements granting rights of development of crude oil, natural gas, or coal on Federal lands to include: (1) a requirement that the person granted such right have approved a timetable for the diligent exploration and development of such items; (2) a requirement that such person promptly report in writing the discovery of any new deposits of such items; and (3) a requirement that within 90 days after discovery, or 90 days after being granted a right of development, the person granted the right shall submit a production timetable.

States that in the interests of promoting maximum recovery and eliminating waste, there is hereby created a category of domestic crude oil denominated "marginal wells production", and, for purposes of high cost well production and for purposes of this title, oil produced from those wells shall be treated as high cost property production under this title.

Authorizes the President to restrict exports of supplies of materials or equipment necessary for exploration, production, refining or transportation of energy supplies or for the construction or maintenance of energy facilities.

Authorizes the President to prevent the export of coal, natural gas, crude oil, residual fuel oil, any refined petroleum product, and any petrochemical feedstock.

States that regulations under the Emergency Petroleum Allocation Act which require the purchase of entitlements or other payment of money to reduce disparities in the crude oil acquisition costs of domestic refiners, and which are based upon the number of barrels of crude oil input of any such refiner, shall not apply to the first 50,000 barrels per day of input of any refiner whose total refining capacity did not exceed 100,000 per barrels per day on January 1, 1975 or thereafter.

Directs the Administrator of the Environmental Protection Agency to promulgate rules for performance standards, specification and testing procedures to facilitate comparison of re-refined oil and with new oil; and rules for labeling standards designed to promote the use of recycled oil.

=Title IV: Energy Conservation Measures= - Directs the President to propose changes, as he deems necessary, to the pricing and allocation regulations under the Emergency Petroleum Allocation Act of 1973. Requires any proposed amendment which would exempt crude oil, residual fuel oil, or any refined petroleum product from such pricing and allocation regulations to be submitted to the Congress for its possible disapproval.

Directs the President to prescribe orders as he deems necessary to prevent any increase in the consumption of motor gasoline above the base volume during a three-year period, and to cause a reduction by two percent in the base volume for such period. Requires such Presidential actions to take into account the regional differences in gasoline consumption.

Directs the President to promulgate standards and procedures to promote voluntary agreements among gasoline retailers respecting hours of operation to minimize inconvenience to customers during the three-year period set forth above. Sets forth the role of the Federal Trade Commission and the Attorney General in the oversight of such agreements.

Permits the President to require adjustments in the processing operations of any refinery to assure the production of residual fuel oil or any refined petroleum product.

Authorizes the President to require adjustments in the amounts of crude oil, residual fuel oil or any refined petroleum products which are held in inventory by persons who are engaged in the business of importing, producing, refining, marketing, or distributing. Prohibits such persons from accumulating inventories which are in excess of such person's reasonable needs.

Provides that, in order to promote the free flow of oil in foreign and interstate commerce at lowest possible prices, the President may act as the exclusive agent of the United States in purchasing crude oil, residual fuel oil and refined petroleum products produced or refined for importation into the United States, and may purchase crude oil produced outside the United States for sale to refiners outside the United States. Requires the President to sell such products to qualified purchasers, and prohibits him from engaging in the business of producing, transporting, or refining such products.

Requires the President to report to the Congress annually on such purchases and sales of such products. Requires the General Accounting Office to audit such transactions and report semiannually to the President and the Congress.

Authorizes the President to allocate and regulate the price of asphalt.

Requires the Civil Aeronautics Board, Interstate Commerce Commission, Federal Maritime Commission, Federal Power Commission, Environmental Protection Agency, and the Federal Aviation Administration to report to the Congress with respect to energy conservation policies and practices instituted by such agencies after October 1973, and to propose programs to save an additional 10 percent in energy consumption within a year, over the 1972 consumption rate. Requires such agencies to report on their programs and practices which promote the inefficient use of petroleum products, coal, natural gas, electricity, and other forms of energy.

Authorizes appropriations for three fiscal years for State programs of dissemination to consumers and businesses of information respecting energy conservation and improvement of energy efficiency.

Directs each State to transmit to the Secretary of Transportation a National Speed Limit Enforcement Report, and to transmit such a report semiannually thereafter.

Directs the Federal Energy Administration Administrator to establish a program to encourage employers to provide for van pooling arrangements for their employees, and to develop a van pooling arrangement for use by executive agencies. Requires the Secretary of Transportation to encourage the creation and expansion of the use of carpools, and to establish the Office of Carpool Promotion within the Department. Directs him to report to the Congress within 12 months on his activities respecting carpool promotion.

Prohibits a Government agency from purchasing, hiring, leasing, operating, or maintaining any limousine; from employing or procuring the services of any person as a driver for a single officer or employee of a Government agency; or from purchasing, hiring, leasing, operating, or maintaining passenger automobiles for the transportation of any officer of employee of a Government agency between his dwelling and his place of employment, with specified exceptions, except, in designated circumstances, a vehicle regularly used by a Government agency in the performance of investigative, law enforcement, or intelligence duties.

Provides that the Administrator shall conduct continuing evaluations of potential loss or shifts of employment which may result from the Administrator's action under this title.

=Title V: Improving Energy Efficiency of Consumer Products= - Sets forth mandatory miles per gallon rates for passenger automobiles manufactured by any manufactuer in any model year after 1977, as follows: model year 1978 - 18.5 miles per gallon; model year 1985 - 28 miles per gallon.

Requires the Administrator to transmit to each House of Congress by January 15 each year a review of fuel economy standards which shall take effect in that year, together with an evaluation of the manufacturers' abilities to meet such standards.

Allows the Secretary of Transportation, if he determines that in any model year there will be an emission standards penalty which exceeds .5 miles per gallon, to adjust the average fuel economy standard applicable under this title.

Sets forth the method by which the Environmental Protection Agency Administrator shall determine average fuel economy for purposes of this title. Permits judicial review of rules promulgated under this title where a person claims an adverse effect.

Requires manufacturers to submit annual reports to the Secretary on their plans to comply with the appropriate fuel economy standards. Permits the Secretary, in order to carry out such reporting requirements, to subpena testimony and records.

Requires new cars to be labeled with information indicating the fuel economy of the car, the representative average annual fuel costs of the car, and the range of fuel economy of cars of similar size and weight, as determined in accordance with rules of the Environmental Protection Agency.

Sets forth civil penalties for failure of manufacturers to meet the average fuel economy standards, consisting of $5 for each tenth of a mile per gallon by which the average fuel economy of the passenger automobiles manufactured by such manufacturer during such model year is exceeded by the applicable average fuel economy standard, multiplied by the total number of such automobiles manufactured by such manufacturer during such model year.

Sets a penalty of $10,000 per day of continuing violation for violations of other provisions of this title.

Requires the President to direct the executive branch to purchase, or lease, as the case may be, cars that meet the applicable fuel economy standards of this title.

Directs the Administrator of the Federal Trade Commission to prescribe test procedures for determining energy use and/or energy efficiency for each class of consumer products which is included in this title (consisting of specified home appliances).

Prohibits manufacturers, distributors, retailers, or private labelers from making any representation in writing or in any broadcast advertisement respecting the energy use or energy efficiency of a consumer product unless such product has been tested in accordance with rules promulgated under this title and such representation fairly discloses the test results.

Permits the Administrator to promulgate rules requiring energy-efficiency labeling of specified consumer products, if labeling is economically and technologically feasible and he determines that labeling would assist purchasers in assessing the energy efficiency of such a product.

Directs the Administrator to prescribe an energy efficiency improvement target for such products (other than furnaces and central air conditioners) that will result in a 25 percent improvement in energy efficiency of such products sold in 1980 over those sold in 1972. Sets forth procedures for setting alternative targets where the target cannot be met. Requires that such target apply only where it is economically and technologically feasible.

Prohibits distribution in commerce of products specified in this title unless they are labeled according to rules promulgated under this title.

Sets forth injunctive remedies for violations of this title and administrative and judicial review of rules promulgated under this title.

=Title VI: Conversion From Oil or Gas to Other Fuels= - Extends through June 30, 1977, the authority of the FEA, under the Energy Supply and Environmental Coordination Act, to issue orders prohibiting power plants and other major fuel-burning installations from using petroleum products and natural gas. Subjects major fuel-burning installations to such orders, at the FEA Administrator's discretion.

States that the Administrator shall not issue any order prohibiting the use of natural gas as boiler fuel which applies to any power plant which was in existence on June 30, 1975, which during the 12-month period preceding such date did not burn petroleum products, and which the Administrator determines will be operated on natural gas only for the purpose of providing specified emergency electric power.

Authorizes the FEA to: (1) prohibit any power plant from using natural gas as boiler fuel if it is capable of using petroleum, if it cannot be converted to coal, if oil can be used consistent with the Clean Air Act; and (2) to guarantee up to 80 percent of loans made to small coal operators for the purpose of opening up new low sulphur underground coal mines (40 percent in other cases).

Provides that not more than 20 percent of the amount of such guarantees issued in any fiscal year may be issued with respect to loans for the purpose of opening new underground coal mines which produce coal which is not low sulfur coal.

=Title VII: General Provisions= - Sets forth provisions of general applicability relating to procedural requirements which are to attend administrative rulemaking or the issuance of orders, judicial review of administrative actions and enforcement mechanisms.

Provides for judicial review similar to that contained in the Economic Stabilization Act. Disallows stay orders to delay agency action pending judicial review.

Sets forth provisions relating to civil penalties and injunctive relief. Extends the reporting requirements of the Supply and Environmental Coordination Act of December 31, 1979.

Terminates the authority under titles II and III on June 30, 1985.

Requires any employee of the FEA Administrator, or of the Secretary of the Interior, who performs any function or duty under this Act, and who has a direct or indirect financial interest in any corporation, company, association, firm, partnership, or other private entity engaged in the business of exploring, developing, producing, refining, transporting by pipeline, or selling (other than at the retail level) coal, natural gas, or petroleum products, or has any interest in property from which coal, natural gas, or petroleum is commercially produced, to, beginning on February 1, 1977, annually file a written statement concerning all such interests held by such employee during the preceding calendar year.

Provides a 15-day review procedure in the Congress of actions taken pursuant to this Act. Subjects any such actions to Congressional disapproval.

Contains the congressional review mechanism applicable to contingency plans for the exercise of energy conservation plans and gasoline rationing authorities.

=Title VIII: Energy Conservation Through Prohibition of Unnecessary Transportation= - Prohibits any vehicle from using gasoline or diesel fuel to transport any public school student to a school farther than the public school which is closest to his home offering educational courses for the grade level and course of study of the student and which is within the boundaries of the school attendance district wherein the student resides.

Subjects any person who violates this title to a civil penalty of not more than $5,000, for each violation.

Excepts a parent using gasoline or diesel fuel to transport his child to a public school.

States that no person may sell gasoline or diesel fuel for a vehicle which the seller of such gasoline or diesel fuel knows or has reason to know will use such gasoline or diesel fuel in violation of this title.

=Title IX: Energy Data Base= - Permits the Comptroller General to conduct verification audits with respect to the books and records of: (1) any person who is required to submit energy information to the Federal Energy Administration, the Department of the Interior, or the Federal Power Commission pursuant to any rule, regulation, order, or other legal process of such Administration, Department, or Commission; or (2) any person who is engaged in the production, processing, refining, transportation by pipeline, or distribution (at other than the retail level) of energy resources.

Permits the Comptroller General to conduct oversight audits with respect to the financial statements which any vertically integrated petroleum company has filed with the Securities and Exchange Commission.

Directs the Comptroller General to prepare and submit to the Congress an annual report with respect to the exercise of its authorities under this title, which report shall specifically identify any deficiencies in energy information or financial statements reviewed by the Comptroller General and include a discussion of action taken, if any, to correct any such deficiencies.

Requires the Securities and Exchange Commission, after consultation with the Financial Accounting Standards Board, to prescribe accounting practices to be followed in the preparation of accounts by persons engaged, in whole or in part, in the production of crude oil or natural gas in the United States.

=Title X: Limitation on Passthroughs of Petroleum Cost Increases= - Provides, under the Emergency Petroleum Allocation Act, that no passthrough specified net increases in petroleum costs which are incurred after the date of enactment of this Act may be permitted more than 60 days after the date on which such increases were incurred.

=Title XI: Penalties Under the Allocation Act= - Sets forth changes in penalties for violations of regulations and orders of specified provisions of the Emergency Petroleum Allocation Act, including a $20,000 civil penalty for each violation with respect to activities relating to the production of or refining or crude oil, and up to one year of imprisonment or a $40,000 fine for each such willful violation.

Imposes individual penalties on willful violations by corporate officers.

=Title XII: Prohibition on Certain Leasing Arrangements= - Directs the Secretary of Interior to prohibit the granting of any right to develop crude oil, natural gas, coal, or oil shale on Federal lands to any person if more than one major oil company, more than one affiliate of a major oil company, or a major oil company or any affiliate of a major oil company has or have a significant ownership interest in such person.

Excepts from such prohibition any agreement, pertaining to crude oil, natural gas, or coal development on Federal lands, entered into prior to the date of enactment of this Act.

=Title XIII: Independent Producer Exemption= - Provides that a ceiling price equal to the sum of $11.50 per barrel plus an amount equal to $0.05 per barrel for each month beginning on the expiration of the first full month after the date of enactment of this section shall apply to the first 3,000 barrels per day of first sales of new crude oil by an independent producer, and first sales by an independent producer of domestic crude oil produced from a stripper well lease.

=Title XIV: Effective Date of Amendments to the Allocation Act= - Provides that the amendments made by this Act to the Emergency Petroleum Allocation Act of 1973 shall take effect on September 1, 1975.