SEC. 503. For purposes of this title, the following terms shall have the following meanings:

(a) "Propane" means propane derived from natural gas streams or crude oil, and mixtures containing propane.

(b) "United States" means the States, the District of Columbia, Puerto Rico, and the territories and possessions of the United States.

SEC. 504. Upon finding that shortages of natural gas exist or are imminent and upon finding that such shortages or potential shortages constitute a threat to the public health, safety or welfare, the President is authorized to issue orders and regulations as he deems appropriate to provide, consistent with section 507 of this ttile, for the establishment of priorities of use and for systematic allocation and pricing of propane in order to meet the essential needs of various sections of the United States and to lessen anticompetitive effects resulting from shortages of natural gas.

SEC. 505. (a) Whoever willfully violates any order or regulation under this title shall be fined not more than $5,000 for each violation.

(b) Whoever violates any order or regulation under this title shall be subject to a civil penalty of not more than $2,500 for each violation.

(c) Any person or agency to whom the President has delegated his authority pursuant to section 513 of this title may issue such orders and notices as are deemed necessary to insure compliance with any order or regulation issued pursuant to section 504 of this title, or to remedy the effects of violations of any such orders or regulations.

SEC. 506. There shall be available as a defense to any action brought under the antitrust laws, or for breach of contract in any Federal or State court arising out of delay or failure to provide, sell, or offer for sale or exchange any product covered by this title that such delay or failure was caused solely by compliance with the provisions of this title or with any regulations or any orders issued pursuant to this title.

SEC. 507. (a) Subject to subsections (b), (c), and (d) of this section, which shall apply to any rule or regulation, or any order having the applicability and effect of a rule as defined in section 551 (4) of title 5, United States Code, and issued pursuant to this title the functions exercised under this title are excluded from the operation of subchapter II of chapter 5, and chapter 7 of title 5, United States Code, except as to the requirements of sections 552, 553, and 555 (e) of title 5, United States Code.

(b) Notice of any proposed rule, regulation, or order described in subsection (a) shall be given by publication of such proposed rule, regulation, or order in the Federal Register. In each case, a minimum of ten days following such publication shall be provided for opportunity to comment; except that the requirements of this paragraph as to time of notice and opportunity to comment may be waived where strict compliance is found to cause serious harm or injury to the public health, safety, or welfare, and such finding is set out in detail in such rule, regulation, or order.

(c) In addition to the requirements of subsection (b), if any rule, regulation. or order described in subsection (a) is likely to have a substantial impact on the Nation's economy or large numbers of individuals or businesses, an opportunity for oral presentation of views, data, and arguments shall be afforded. To the maximum extent practicable, such opportunity shall be afforded prior to the issuance of such rule, regulation, or order, but in all cases such opportunity shall be afforded no later than forty-five days after the issuance of any such rule, regulation, or order. A transcript shall be kept of any oral presentation.

(d) The President or any officer or agency authorized to issue the rules, regulations, or orders described in subsection (a) shall provide for the making of such adjustments, consistent with the other purposes of this title, as may be necessary to prevent special hardship, inequity, or unfair distribution of burdens shall, by rule, establish procedures which are available to any person for the purpose of seeking an interpretation, modification, rescission of, exception to, or exemption from such rules, regulations, and orders. If such person is aggrieved or adversely affected by the denial of a request for such action under the preceding sentence, he may request a review of such denial by the President or the officer or agency to whom he has delegated his authority pursuant to section 513 of this title and may obtain judicial review in accordance with section 508 of this title when such denial becomes final. The President or the officer or agency shall, by rule, establish appropriate procedures, including a hearing where deemed advisable, for considering such requests for action under this paragraph.

SEC. 508. (a) The district courts of the United States shall have exclusive original jurisdiction of cases or controversies arising under this title or under regulations or orders issued thereunder, notwithstanding the amount in controversy; except that nothing in this subsection or in subsection (h) of this section affects the power of any court of competent jurisdiction to consider, hear, and determine any issue by way of defense (other than a defense based on the constitutionality of this title or the validity of action taken by any agency under this title) raised in any proceeding before such court. If in any such proceeding an issue by way of defense is raised based on the constitutionality of this title of the validity of actions under this title, the case shall be subject to removal by either party to a district court of the United States in accordance with the applicable provisions of chapter 89 of title 28, United States Code.

(b) Except as otherwise provided in this section, exclusive appellate jurisdiction is vested in the temporary emergency court of appeals, a court which is currently in existence, but which is independently authorized by this section. The court, a court of the United States, shall consist of three or more judges to be designated by the Chief Justice of the United States from judges of the United States district courts and circuit courts of appeals. The Chief Justice of the United States shall designate one of such judges as chief of the temporary emergency court of appeals, and may, from time to time, designate additional judges for such court and revoke previous designations. The chief judge may, from time to time, divide the court into divisions of three or more members, and any such division may render judgment as the judgment of the court. Except as provided in subsection (e) (2) of this section, the court shall not have power to issue any interlocutory decree staying or restraining in whole or in part any provision of this title, or the effectiveness of any regulation or order issued thereunder. In all other respects, the court shall have the powers of a circuit court of appeals with respect to the jurisdiction conferred on it by this title. The court shall exercise its powers and prescribe rules governing its procedure in such manner as to expedite the determination of cases over which it has jurisdiction under this title. The court shall have a seal, hold sessions at such places as it may specify, and appoint a clerk and such other employees as it deems necessary or proper.

(c) Appeals from the district courts of the United States in cases and controversies arising under regulations or orders issued under this title shall be taken by the filing of a notice of appeal with the temporary emergency court of appeals within thirty days of the entry of judgment by the district court.

(d) In any action commenced under this title in any district court of the United States in which the court determines that a substantial constitutional issue exists, the court shall certify such issue to the temporary emergency court of appeals. Upon such certification, the temporary emergency court of appeals shall determine the appropriate manner of disposition which may include a determination that the entire action be sent to it for consideration or it may, on the issues certified, give binding instructions and remand the action to the certifying court for further disposition.

(e) (1) Subject to paragraph (2) no regulation of any agency exercising authority under this title shall be enjoined or set aside, in whole or in part, unless a final judgment determines that the issuance of such regulation was in excess of the agency's authority, was arbitrary or capricious, or was otherwise unlawful under the criteria set forth in section 706 (2) of title 5, United States Code, and no order of such agency shall be enjoined or set aside, in whole or in part, unless a final judgment determines that such order is in excess of the agency's authority, or is based upon findings which are not supported by substantial evidence.

(2) A district court of the United States or the temporary emergency court of appeals may enjoin temporarily or permanently the application of a particular regulation or order issued under this title to a person who is a party to litigation before it. Except as provided in this subsection, no interlocutory or permanent injunction restraining the enforcement, operation, or execution of this title, or any regulation or order issued thereunder, shall be granted by any district court of the United States or judge thereof. Any such court shall have jurisdiction to declare (i) that a regulation of an agency exercising authority under this title is in excess of the agency's authority, is arbitrary or capricious, or is otherwise unlawful under the criteria set forth in section 706 (2) of title 5, United States Code, or (ii) that an order or such agency is invalid upon a determination that the order is in excess of the agency's authority, or is based upon findings which are not supported by substantial evidence. Appeals from interlocutory decisions

by a district court of the United States under this paragraph may be taken in accordance with the provisions of section 1292 of title 28, United States Code; except that reference in such section to the courts of appeals shall be deemed to refer to the temporary emergency courts of appeals.

(f) The effectiveness of a final judgment of the temporary emergency court of appeals enjoining or setting aside in whole or in part any provision of this title, or any regulations or order issued thereunder shall be postponed until the expiration of time for filing a writ of certiorari with the Supreme Court under subsection (g). If such petition is filed, the effectiveness of such judgment shall be postponed until an order of the Supreme Court denying such petition becomes final, or until other final disposition of the action by the Supreme Court.

(g) Within thirty days after entry of any judgment or order by the temporary emergency court of appeals, a petition for a writ of certiorari may be filed in the Supreme Court of the United States, and thereupon the judgment or order shall be subject to review by the Supreme Court in the same manner as a judgment of a United States court of appeals as provided in section 1254 of title 28, United States Code. The temporary emergency court of appeals, and the Supreme Court upon review of judgments and orders of the temporary emergency court of appeals, shall have exclusive jurisdiction to determine the constitutional validity of any provision of this title or of any regulation or order issued under this title. Except as provided in this section, no court, Federal or State, shall have jurisdiction or power to consider the constitutional validity of any provision of this title or of any such regulation or order, or to stay, restrain, enjoin, or set aside, in whole or in part, any provision of this title authorizing the issuance of such regulations or orders, or any provision of any such regulation or order, or to restrain or enjoin the enforcement of any such provision.

SEC. 509. Whenever it appears to any person or agency authorized by the President pursuant to section 513 of this title that any individual or organization has engaged, is engaged, or is about to engage in any acts or practices constituting a violation of any order or regulation under this title, such person or agency may request the Attorney General to bring an action in the appropriate district court of the United States to enjoin such acts or practices, and upon a proper showing, a temporary restraining order or a preliminary or permanent injunction shall be granted without bond. Any such court may also issue mandatory injunctions commanding any person to comply with any such order or regulation. In addition to such injunctive relief, the court may also order restitution of moneys received in violation of any such order or regulation.

SEC. 510. (a) An agency or person exercising authority pursuant to section 513 of this title shall have authority, for any purpose related to this title, to sign and issue subpenas for the attendance and testimony of witnesses and the production of relevant books, papers, and other documents, and to administer oaths.

(b) Upon presenting appropriate credentials and a written notice to the owner, operator, or agency in charge, any agency or person exercising authority pursuant to section 513 of this title may enter, at reasonable times, any business premise or facility and inspect at reasonable times and in a reasonable manner, any such premise or facility, inventory and sample any stock of energy resources therein, and examine and copy books, records, papers, or other documents, in order to obtain information as necessary or appropriate for the proper exercise of functions under this title and to verify the accuracy of any such information. (c) Witnesses summoned under the provisions of this section shall be paid the same fees and mileage as are paid to witnesses in the courts of the United States. In case of refusal to obey a subpena served upon any person under the provisions of this section, the agency or person authorizing such subpena may request the Attorney General to seek the aid of the district court of the United States for any district in which such person is found to compel such person, after notice, to appear and give testimony, or to appear and produce documents before the agency or person.

SEC. 511. Any person suffering legal wrong because of any act or practice arising out of this title, or any order or regulation issued pursuant thereto, may bring an action in a district court of the United States, without regard to the amount in controversy, for appropriate relief, including an action for a declaratory judgment, writ of injunction (subject to the limitations in section 508 of this title), and/or damages.

SEC. 512. Section 5 of the Federal Energy Administration Act of 1974 (15 U.S.C. 761) is amended in subsection (b) by adding the word "and" after the semicolon in paragraph 10; by deleting paragraph 11; and by redesignating paragraph 12 as paragraph 11.

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SEC. 513. The President may delegate the performance of any function under this title to such offices, departments, and agencies of the United States as he deems appropriate.

SEC. 514. (a) No law, rule, regulation, order or ordinance of any State or municipality in effect on the date of enactment of this title, or which may become effective thereafter, shall be superseded by any provision of this title or any rule, regulation or order issued pursuant to this title except insofar as such law, rule, regulation, order or ordinance is inconsistent with the provisions of this title or any rule, regulation or order issued thereunder.

TITLE VI

SEC. 601. Termination of this Act or the authorities granted under this Act 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 such date.

SEC. 602. If any provision of this Act, or the application of any such provision to any person or circumstance, shall be held invalid, the remainder of this Act, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

Senator HOLLINGS. I am pleased Senator Glenn is here with us today, representing the Interior Committee, along with another distinguished Member, Senator Hansen.

We have as our witness, of course, the distinguished Administrator of the FEA, Mr. Frank Zarb and the Chairman of the FPC.

OPENING STATEMENT BY SENATOR GLENN

Senator GLENN. Mr. Chairman, I thank you very much, and I am glad to welcome the expert witnesses back today.

Mr. Chairman, it has been a pleasure working with you in developing the provisions of S. 2310, and I am grateful to you and your committee for holding these hearings on the bill and other competing proposals.

It is my belief that S. 2310 offers the best possible hope for alleviating projected gas supply shortages for the coming winter. Without emergency action on the part of Congress, widespread industrial and agricultural unemployment in areas supplied by the interstate pipeline system is inevitable.

In my State of Ohio, which experienced the largest firm curtailments in the country in the first quarter of 1975, as many as 40,000 to 100,000 jobs may be lost.

S. 2310 is directed solely at this winter's problem and does not address long-term pricing policies for natural gas.

This is an emergency act to cover a specific emergency period, effective only from enactment through June 1976.

It does recognize, however, that present pricing disparities between the interstate and intrastate markets are largely responsible for the current shortages within the interstate system.

After FPC determination that cutbacks in a particular area will create an emergency situation this winter, pipelines servicing that area will be authorized to purchase new onshore gas and gas made available as a result of expiring contracts at the price now prevailing in the intrastate market.

That price, in turn, would constitute a ceiling price for all purchases of such gas, interstate and intrastate.

It should be emphasized that S. 2310 is not an allocation bill. Sellers of onshore gas would still be permitted to choose among competing purchasers.

Price considerations, however, would no longer pressure this gas to flow intrastate.

Under the conditions of price parity created by the bill, spokesmen for the Interstate Natural Gas Association believe that a significant amount of the available natural gas could be bought by the interstate lines.

S. 2310 would also provide the Federal Energy Administration with the authority to require conversion of gas-burning powerplants to coal and oil wherever practicable when such conversions can be carried out consistent with environmental standards.

In addition, the bill would require production of certain designated gas-producing fields at the maximum efficient rate of production and, under certain conditions, at higher rates.

Finally, the bill would give a higher priority to the natural gas needs of the agricultural community where the gas is essential to production of the Nation's food supply.

The administration and the Federal Power Commission have offered similar proposals which would also permit distressed interstate consumers to buy intrastate onshore

gas.

Under those proposals, however, no price ceilings would be established, and gas would simply flow to the highest bidder.

Given the emergency conditions prevailing this winter, I can foresee this approach resulting in price auctions and drastic price increases at a time when we can least afford them.

Administration spokesmen I have talked to have not argued that these prices will get us more gas or dispense it more equitably than S. 2310.

Rather, they contend that their approach is easier to administer.

While conceding that, I strongly believe that the administrative requirements of S. 2310 are workable and more than justified by the benefits which would result from the bill's enactment, particularly at a time of budding economic recovery.

Thank you, Mr. Chairman.

Senator HOLLINGS. Senator Hansen?

Senator HANSEN. I have no statement to make now.

I appreciate the invitation to be here, and to listen to the testimony. I will perhaps ask questions later.

OPENING STATEMENT BY SENATOR TUNNEY

Senator TUNNEY. Mr. Chairman, I am interested in the testimony of the witnesses. I have not had opportunity to read the legislation. I might point out that we would not be in the position of discussing the allocation of shortages if we adopted a natural gas policy that would increase supply. Namely, if we had deregulation of new gas. I am very deeply concerned about the States that have this prospective shortage this winter. I think there are many of us here in favor of deregulating new gas at the wellhead that have been saying precisely that, that we would have shortages this winter and in future years if we don't adopt a policy encouraging the finding of more gas so we would have an adequate supply.

The thing that deeply concerns me about what we are considering today and what we will be considering on the floor is the fact that the shortages will not go away this winter nor next summer.