[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2032 Introduced in Senate (IS)]
103d CONGRESS
2d Session
S. 2032
To amend the Energy Policy and Conservation Act with respect to
purchases from the Strategic Petroleum Reserve by entities in the
insular areas of the United States, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 20 (legislative day, April 11), 1994
Mr. Akaka (for himself and Mr. Inouye) introduced the following bill;
which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To amend the Energy Policy and Conservation Act with respect to
purchases from the Strategic Petroleum Reserve by entities in the
insular areas of the United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Emergency Petroleum Supply Act''.
SEC. 2. PURCHASES FROM THE STRATEGIC PETROLEUM RESERVE BY ENTITIES IN
THE INSULAR AREAS OF THE UNITED STATES.
(a) General Provisions.--Section 161 of the Energy Policy and
Conservation Act (42 U.S.C. 6241) is amended by adding at the end the
following new subsection:
``(j)(1) With respect to each offering of a quantity of petroleum
product during a drawdown of the Strategic Petroleum Reserve:
``(A) A purchaser located in an eligible insular area of
the United States, in addition to having the opportunity to
submit a competitive bid, may submit (at the time bids are due)
a binding offer, and shall on submission of the bid be entitled
to purchase a category of a petroleum product specified in a
notice of sale at a price equal to the average of the
successful bids made for the remaining quantity of petroleum
product within the category that is the subject of the
offering.
``(B) A vessel that arrives at a delivery line of the
Strategic Petroleum Reserve to take on a petroleum product for
delivery to a purchaser located in an eligible insular area of
the United States shall be loaded ahead of other vessels
waiting for delivery if the Governor or other chief executive
officer of the eligible insular area of the United States
certifies that delivery must be expedited to avert a critical
supply shortage in the eligible insular area of the United
States.
``(2)(A) In administering this subsection, and with regard to each
offering, the Secretary may impose the limitation described in
subparagraph (B) or (C) that results in the purchase of the lesser
quantity of petroleum product.
``(B) The Secretary may limit the quantity that any one purchaser
may purchase through a binding offer at any one offering to \1/12\ of
the total quantity of petroleum products that the purchaser imported
during the previous year.
``(C)(i) Subject to clause (ii), the Secretary may limit the
quantity that may be purchased through binding offers at any one
offering to 3 percent of the offering.
``(ii) If the Secretary imposes the limitation stated in clause
(i), the Secretary shall prorate the quantity among the purchasers who
submitted binding offers.
``(3) In administering this subsection, and with regard to each
offering, the Secretary shall, at the request of a purchaser--
``(A) if the quantity is less than 50 percent of 1 full
tanker load less than a whole-number increment of a full tanker
load of a petroleum product, adjust upward, to the next whole-
number increment of a full tanker load, the quantity to be sold
to the purchaser; or
``(B) if the quantity is 50 percent of 1 full tanker load
more than a whole-number increment of a full tanker load of a
petroleum product, adjust downward, to the next whole-number
increment of a full tanker load, the quantity to be sold to the
purchaser.
``(4)(A) Except as provided in subparagraph (B), petroleum products
purchased through binding offers pursuant to this subsection shall be
delivered to the eligible insular area of the United States.
``(B) Purchasers may enter into exchange or processing agreements
that require delivery to other locations.
``(5) As used in this subsection:
``(A) The term `eligible insular area of the United States'
means the State of Hawaii, the Commonwealth of Puerto Rico, the
Virgin Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
``(B) The term `offering' means a solicitation for bids to
be submitted not later than any specified day for a quantity or
quantities of crude oil or petroleum product from a delivery
line of the Strategic Petroleum Reserve.''.
(b) Effective Dates.--The amendments made by subsection (a) shall
remain in effect until such time as the Secretary promulgates and
implements regulations pursuant to section 3.
SEC. 3. REGULATIONS.
(a) Definitions.--For the purposes of this section--
(1) the term ``insular area'' means the State of Hawaii,
the Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern Mariana
Islands; and
(2) the term ``eligible purchaser'' means--
(A) an insular area government; or
(B) a person who owns a refinery that--
(i) is located in an insular area; or
(ii) has supplied refined petroleum product
to an insular area within the year immediately
preceding the sale, or within another period
the Secretary determines to be representative
of recent imports to the insular area.
(b) In General.--The Secretary shall issue regulations that provide
benefits for insular areas during the sale of petroleum product
withdrawn from the Strategic Petroleum Reserve.
(c) Content.--The regulations issued under subsection (a)--
(1) shall permit an eligible purchaser to purchase
petroleum product--
(A) at a price equal to the average price of
comparable quality petroleum product sold at the
contemporaneous competitive sale of petroleum product
withdrawn from the Strategic Petroleum Reserve; or
(B) if no comparable quality petroleum product sold
at the contemporaneous competitive sale, at a price
estimated by the Secretary to be equivalent to the
price described in subparagraph (A);
(2) shall provide for priority cargo lifting of petroleum
product purchased by an eligible purchaser at a competitive
sale or under paragraph (1);
(3) may limit the amount of petroleum product that may be
purchased under paragraph (1) during a sales period--
(A) by an eligible purchaser, to no less than \1/
12\ of the total amount of petroleum product that the
purchaser brought into an insular area during the year
immediately preceding the sale or during another period
the Secretary determines to be representative of recent
imports to the insular area; or
(B) by all eligible purchasers, to no less than 3
percent of the amount of petroleum product offered for
sale during the sales period prorated among the
eligible purchasers;
(4) may provide that, at the request of a purchaser, the
quantity of petroleum product to be sold to the purchaser may
be adjusted upward or downward, to the next whole-number
increment of a full tanker load, if the quantity that otherwise
would be sold is less than a whole-number increment;
(5) may establish procedures for qualifying an entity as an
eligible person before a sale of petroleum product withdrawn
from the Strategic Petroleum Reserve;
(6) may require an eligible purchaser to comply with
financial and performance responsibility requirements applied
to offerors in competitive sale;
(7) except as otherwise provided by this subsection, may
require an eligible purchaser who purchases petroleum product
under paragraph (1) to comply with standard contract provisions
applied to purchasers at competitive sales;
(8) may ensure, to the extent practicable, that an eligible
purchaser who receives benefits under paragraph (1) or (2)
passes on the benefits to an insular area;
(9) may require an eligible purchaser who receives benefits
under paragraph (1) or (2) to furnish the Secretary with
documents and other appropriate information to determine
compliance with this subsection; and
(10) may establish procedures for imposing sanctions on an
eligible purchaser who receives benefits under paragraph (1) or
(2) and who does not comply with the requirements of this
subsection.
(d) Plan Amendments.--No amendment of the Strategic Petroleum
Reserve Plan or the Distribution Plan contained in the Strategic
Petroleum Reserve Plan is required for any action taken under this
subsection if the Secretary determines that an amendment to the plan is
necessary to carry out this section.
(e) Administrative Procedure.--Regulations issued to carry out this
subsection shall not be subject to the requirements of section 523 of
the Energy Policy and Conservation Act (42 U.S.C. 6393) or of section
501 of the Department of Energy Organization Act (42 U.S.C. 7191).
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