A bill to repeal and amend certain sections of the Powerplant and Industrial Fuel Use Act of 1978.

(Measure passed House, amended)

Title I: Fuel Use - Amends the Powerplant and Industrial Fuel Use Act of 1978 to repeal prohibitions against the use of natural gas or petroleum as a primary energy source in new and existing electric powerplants and major fuel-burning installations.

Title II: Incremental Pricing - Amends the National Gas Policy Act fo 1978 to repeal the incremental pricing requirements for natural gas.

Title III: LNG Importation - Revokes orders which were issued before the date of enactment of this Act under the Natural Gas Act authorizing the importation of natural gas for processing or transportation by facilities affected by this Act.

Prohibits the Federal Energy Regulatory Commission from: (1) approving the recovery in rates by any natural gas company of costs related to liquid natural gas (LNG) volumes which have been authorized for importation through facilities affected by this Act, but which have not actually been imported; or (2) permitting recovery of any equity investment on such facilities.

Prohibits the issuance of any order authorizing the importation of LNG under the Natural Gas Act unless the Secretary of Energy determines that: (1) the delivered price of the LNG is competitive with the delivered price of alternate supplies of natural gas; and (2) the contract terms covering the sale of such LNG are responsible to changes in the natural gas market.

Makes this Act applicable to: (1) certain certificated facilities which commenced deliveries of LNG before the date of enactment of this Act; and (2) certain tankers constructed for the ocean transportation of LNG to such facilities.

Title IV: Exemption from Federal Regulation - Exempts from the rate regulation jurisdiction of the Federal Energy Regulatory Commission a certain interstate natural gas pipeline which was the subject of such Commission's declaratory order issued July 24, 1986 (thus making such pipeline subject only to the jurisdiction of two State regulatory commissions).

Title V: Expedited Decision - Directs the Federal Energy Regulatory Commission to issue a final order by January 31, 1987, in Central Illinois Light Company v. Panhandle Eastern Pipe Line Company.