APPENDIX 3 TITLE XIII OF H.R. 2650, A BILL TO INCREASE DOMESTIC ENERGY SUPPLIES AND AVAILABILITY; TO RETRAIN ENERGY DEMAND; AND TO PREPARE FOR ENERGY EMERGENCIES AND FOR OTHER PURPOSESINTRODUCED BY MR. RHODES ON FEBRUARY 4, 1975 PART C-EMERGENCY PREPAREDNESS TITLE XIII-STANDBY ENERGY AUTHORIZATION ACT OF 1975 Sec. 1301. Short title. Sec. 1302. Findings and purposes. Sec. 1303. Definitions. Sec. 1304. Control over stocks. Sec. 1305. Federal actions to increase available domestic petroleum supplies. Sec. 1307. Energy conservation plans. Sec. 1308. Materials allocation. Sec. 1309. Prohibitions on unreasonable actions. Sec. 1310. Regulated carriers. Sec. 1311. International oil allocation. Sec. 1312. Voluntary agreements. Sec. 1313. Immunities. Sec. 1314. International cooperation. Sec. 1315. Exchange of information. Sec. 1316. Exports. Sec. 1317. Administrative procedure and judicial review. Sec. 1319. Enforcement. Sec. 1320. Delegation of authority and effect on State law. Sec. 1322. Contingency plans. Sec. 1323. Expiration. Sec. 1324. Authorization of appropriations. Sec. 1325. Severability. Sec. 1326. Transfer of authority. Sec. 1327. Effect on other laws. PART C-EMERGENCY PREPAREDNESS Title XIII SHORT TITLE SEC. 1301. This title may be cited as the "Standby Energy Authorities Act of 1975". FINDINGS AND PURPOSES SEC. 1302. (a) The Congress hereby finds that- (1) disruptions in the availability of imported or domestic energy supplies, particularly petroleum, pose a serious risk to national security, and the health and welfare of the American people; (2) such energy shortages cause unemployment, inflation, and other severe economic dislocations and hardships and jeopardize the normal flow of interstate and foreign commerce; (3) disruptions in the availability of imported petroleum supplies also have serious adverse effects upon other major oil consuming nations upon whose national security and economic well-being of the United States in some measure depends, by virtue of mutual security arrangements and international trade and monetary relationships; (4) because of the diversity of conditions, climate, and available fuel mix in different areas of the Nation, governmental responsibility for developing and enforcing appropriate authorities lies not only with the Federal Government, but with the States and with local government; (70) (5) the protection and fostering of competition and the prevention of anticompetitive practices and effects are vital during periods of energy shortages; (6) existing legal authority and reliance upon voluntary programs to deal with shortage conditions on an emergency basis are inadequate to protect the public interests; (7) new long-term standby legislative authority is needed to deal with conditions that may be created by disruptions in energy supplies and thereby to protect the American people and the economy from serious disruption and dislocation; and (8) development of cooperative international programs to manage energy shortages will combat economic hardships and contribute to the national security of the United States and other oil-consuming nations. (b) The purposes of this title are to grant specific standby authority to impose end-use rationing and to reduce demand by regulating public and private consumption of energy, and to authorize certain other specific temporary emergency actions to be exercised,, to assure that the essential energy needs of the United States will be met in a manner which, to the fullest extent practicable: (1) enables the Federal Government to fulfill its responsibilities under the Agreement or an International Energy program. (2) is consistent with existing national commitments to protect and improve the environment; (3) minimizes any adverse impact on employment; (4) provides for equitable treatment of all regions of the country and sectors of the economy; (5) maintains vital services necessary to health, safety, and public welfare; and (6) insures against anticompetitve practices and effects and preserves, enhances, and facilitates competition in the development, production, transportation, distribution, and marketing of energy resources. (c) Prior to exercising any of the authorities contained in any of the following provisions of this title: (1) Section 1304, Control Over Stocks; (2) Section 1305, Federal Action to Increase Available Domestic Petroleum Supplies; (3) Section 1306, Allocation and Rationing; (4) Section 1307, Energy Conservation Plans; (5) Section 1308, Materials Allocation; (6) Section 1311, International Oil Allocation; the President is required to make a finding (i) that because of interruption in the supply of imported petroleum or as a result of acts of God or sabotage national energy shortage conditions exist or are impending which threaten United States national security so as to require the exercise of the standby energy authorities provided for in this title, or (ii) that their exercise is required to fulfill obligations of the United States under an international agreement. The President's finding shall be transmitted to the Congress. For purposes of this section the term "national security" shall include the needs of, and planning and preparedness to meet essential civilian or military energy requirements relative to the national safety or economy. For purposes of this section, the term "national energy shortage" means a shortage of significant scope and duration and of an emergency nature causing major adverse impact on the United States. (d) Any finding made under subsection (c) of this section shall not remain in effect for a period of more than eighteen months. The President may make a new finding under subsection (c) if he finds that the exercise of authorities pursuant to his initial finding is required beyond eighteen months. DEFINITIONS SEC. 1303. For purposes of this title: (1) The term "State" means a State, the District of Columbia, Puerto Rico, or any territory or possession of the United States. (2) The term "petroleum" means (A) Crude oil, (B) Natural gas liquids, and (C) Refined petroleum products, including but not limited to gasoline, naphtha, kerosene, distillates, residual fuel oil, refined lubricating oils, diesel fuel, unfinished oils, and liquefied petroleum gases. (3) The term "United States" when used in the geographical sense means the States, the District of Columbia, Puerto Rico, and the territories and possessions of the United States. (4) The term "Administrator" means the Administrator of the Federal Energy Administration. (5) The term "international agreement" means the Agreement on an International Energy Program, signed by the United States on November 18, 1974. including related annexes and protocols, as those documents may be amended from time to time in accordance with their terms; (6) The term "antitrust law" includes (A) the act entitled "An Act to protect trade and commerce against unlawful restraints and monopolies," approved July 2, 1890 (15 U.S.C. 1, et seq.); (B) the Act entitled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes," approved October 15, 1914 (15 U.S.C. 12, et seq.); (C) the Federal Trade Commission Act. (15 U.S.C. 41, et seq.); (D) sections 73 and 74 of the Act entitled "An Act to reduce taxation, to provide revenue for the Government, and for other purposes," approved August 27, 1894, (15 U.S.C. 8 and 9); and (E) the Act of June 19, 1936, chapter 592 (15 U.S.C. 13, 13a, 13b and 21A). CONTROL OVER STOCKS Sec. 1304. (a) The President may require by regulation, rule, or order, as a condition to any person engaging in commerce, and in the business of importing, producing, refining, marketing, or distributing petroleum, that such person maintain inventories of petroleum in excess of his normal business or operating requirements. (b) (1) Any inventories of petroleum required to be maintained by any person pursuant to subsection (a) of this section may be disposed of only pursuant to regulation, rule or order promulgated by the President. (2) The President may order the use, sale, disposal, and allocation of all or any part of inventories held pursuant to subsection (a) of this section in order to alleviate domestic shortages, to meet the international petroleum allocation obligations of an international agreement, or for other purposes consistent with this title. (c) To the extent that the United States institutes a program of Governmentowned strategic petroleum reserves, consistent with other law, the President shall take such reserves into account in determining the levels of petroleum required to be acquired or retained pursuant to subsection (a) of this section. FEDERAL ACTIONS TO INCREASE AVAILABLE DOMESTIC PETROLEUM SUPPLIES SEC. 1305. (a) The President may, by regulation, rule or order, require the following measures to supplement domestic energy supplies: (1) production of certain designated existing domestic oil and gas fields at maximum practicable rates of production if necessary to meet the objectives of this title: Provided, That production shall not be in excess of the currently assigned maximum efficient rate of production unless the President determines that the types and quality of reservoirs are such as to permit production at rates in excess of the currently assigned maximum efficient rate for periods of ninety days or more without excessive risk of losses in ultimate recovery; (2) The unitization of production on any oil and gas producing properties on Federal lands; (3) The adjustment of processing operations of domestic refineries to produce particular refined products commensurate with national needs. (b) Nothing in subsection (a) of this section shall affect any Naval Petroleum Reserve subject to the provisions of chapter 641 of title 10, United States Code, as amended. ALLOCATION AND RATIONING SEC. 1306. (a) (1) The President is authorized, by rule, regulation, or order to provide for the allocation of petroleum for such purposes, and in such amounts, as he may specify. (2) The President is authorized, by rule, regulation, or order, to control the prices of petroleum which is allocated pursuant to the authority of this section. (b) The President is authorized, by rule, regulation, or order, to establish a program for the rationing and ordering of priorities among classes of end-users of such products of rights, and evidences of such rights, entitling them to obtain such products in precedence to other classes of end-users not similarly entitled. (c) A rule, regulation, or order under subsections (a) and (b) of this section shall take effect only if the President finds that it is necessary to achieve the purposes of section 1302(b) of this title. (d) In issuing rules, regulations, or orders pursuant to the authority of this section, the President, to the extent he deems practicable, shall take into account the need for: (1) protection of public health, safety, welfare, environment, and the national defense; (2) maintenance of public services and United States industry; (3) preservation of an economically sound and competitive petroleum industry, including the independent sector; (4) equitable distribution of petroleum at equitable prices; and (5) minimization of economic distortion, inflexibility, and unnecessary interference with market mechanisms. (e) In exercising his authority pursuant to this section, the President shall provide for the marking of such adjustments as are practicable to prevent special hardship, inequity, or unfair distribution of burdens, and shall establish procedures which are available to any person for the purpose of seeking an interpretation, modifications, rescission of, exception to, or exemption from, such rules, regulations, and orders. Such procedures may include procedures with respect to such local boards as may be authorized to carry out functions under this subsection pusuant to section 1317 of this title. (f) No rule, regulation, or order under this section may impose any tax or provide for a credit or deduction in computing any tax. ENERGY CONSERVATION PLANS SEC. 1307. (a) (1) (A) Pursuant to the provisions of this section, the President may promulgate by regulation, one or more energy conservation plans in accord with this section which shall be designed (together with actions taken and proposed to be taken under other authority of this or other Acts) to result in a reduction of energy consumption. For purposes of this section, the term “energy conservation plan" means a plan which imposes restrictions on the public or private use of energy which are necessary to reduce energy consumption. (B) No energy conservation plan promulgated under this section may impose rationing or any tax or user fee, or provide for a credit or deduction in computing any tax. (2) An energy conservation plan shall apply in each State, except as otherwise provided in an exemption granted pursuant to such plan in cases where a comparable State or local program is in effect, or where the President finds special circumstances exist. (3) An energy conservation plan may not deal with more than one logically consistent subject matter. (4) An energy conservation plan shall remain in effect for a period specified in the plan unless earlier rescinded by the President, but shall terminate in any event no later than eighteen months after such plan first takes effect unless renewed in accordance with this section. (b) The President shall transmit any energy conservation plan to each House of Congress on the date on which it is promulgated. (c) In promulgating any energy conservation plan or rationing rule, regulation, or order, under the authority of this title, the President shall, to the extent practicable, take into account the factors enumerated in section 1302 (b) of this title, as well as the potential economic impacts, if any, on (A) the fiscal integrity of State and local government; (B) vital industrial sectors of the economy; (C) employment; (D) the economic vitality of regional, State, and local areas; (E) the availability and price of consumer goods and services; (F) the gross national product; (G) competition in all sectors of industry; (H) small business; and (1) the supply and availability of energy resources for use as fuel or as feedstock for industry. MATERIAL ALLOCATION SEC. 1308. (a) The President is hereby authorized (1) to require that performance under contracts or orders (other than contracts of employment) which he deems necessary or appropriate to promote essential domestic energy research, development and production shall take priority over performance under any other contract or order, and, for the purpose of assuring such priority, to require acceptance and performance of such contracts or orders in preference to other contracts or orders by any person he finds to be capable of their performance, and (2) to allocate materials and facilities in such manner, upon such conditions, and to such extent as he shall deem necessary or appropriate to increase domestic energy supplies. (b) Upon exercise of authority under subsection (a) hereof, the President shall report to the Congress with respect to the manner in which the authorities contained in subsection (a) will be administered. This report shall include but not be limited to the manner in which allocations will be made, the procedure for requests and appeals, the criteria for determining priorities as between competing requests, the office or agency which will administer such authorities and the effect of such allocations on allocation programs authorized by other law. (c) The authority granted in this section may not be used to control the distribution of any supplies of materials and equipment in the marketplace unless the President finds that (1) such supplies are scarce, critical, and essential to maintain or further exploration, production, refining, transportation, and conservation of energy supplies or for the construction and maintenance of energy facilities; and (2) maintenance or furtherance of exploration, production, refining, transportation, and conservation of energy supplies and the construction and maintenance of energy facilities during the energy shortage cannot reasonably be accomplished without exercising the authority specified in subsection (a) of this section. PROHIBITIONS ON UNREASONABLE ACTIONS SEC. 1309. (a) Action taken under authority of this title resulting in the allocation of petroleum and electrical energy among classes of users or resulting in restrictions on use of petroleum and electrical energy among classes of users or resulting in restrictions on use of petroleum and electrical energy, shall be equitable, shall not be arbitrary or capricious, and shall not unreasonably discriminate among classes of users, unless the President determines that such a policy would be inconsistent with the purposes of this title or other Federal laws and publishes his findings in the Federal Register. Allocations shall contain provisions designed to foster reciprocal and nondiscriminatory treatment by foreign countries of United States persons engaged in commerce. (b) To the maximum extent practicable, any restriction on the use of energy shall be designed to be carried out in such manner so as to be fair and to create a reasonable distribution of the burden of such restriction on all sectors of the economy, without imposing an unreasonably disproportionate share of such burden of any specific industry, business, or commercial enterprise, or on any individual segment thereof and shall give due consideration to the needs of commercial, retail, and service establishments whose normal function is to supply goods and service of an essential convenience nature during times of day other than conventional daytime working hours. REGULATED CARRIERS SEC. 1310. Within twenty days after the date of the exercise of any of the authorities cited in section 1302 (c) of this title, the Civil Aeronautics Board, |