5. Energy Policy and Conservation Act

Partial text of Public Law 94-163 [S. 622], 89 Stat. 871, approved December 22, 1975; as amended by Public Law 95-619 [H.R. 5037], 92 Stat. 3206, approved November 9, 1978; Public Law 96-30 [S. 1371], 93 Stat. 80, approved June 30, 1979; Public Law 96-94 [H.R. 5506], 93 Stat. 720, approved October 31, 1979; Public Law 96-102 [S. 1030], 93 Stat. 749, approved November 5, 1979; Public Law 96-133 [S. 1871], 93 Stat. 1053, approved November 30, 1979; Public Law 97-5 [H.R. 2166], 95 Stat. 7, approved March 13, 1981; Public Law 97-50 [S. 1475], 95 Stat. 957, approved September 30, 1981; Public Law 97-163 [S. 1937], 96 Stat. 24, approved April 1, 1982; Pub. lic Law 97-190 [S. 2575], 96 Stat. 106, approved June 1, 1982; Public Law 97-217 [S. 2651], 96 Stat. 196, approved July 19, 1982; Public Law 97-229 [S. 2332], 96 Stat. 248, approved August 3, 1982; Public Law 98-239 [H.R. 4194], 98 Stat. 93, approved March 20, 1984; Public Law 98–370 [H.R. 3169], 98 Stat. 1211, approved July 18, 1984; Public Law 98-454 [H.R. 5561], 98 Stat. 1732 at 1736, approved October 5, 1984; Public Law 99-58 [H.R. 1699], 99 Stat. 102, approved July 2, 1985; Public Law 101-218 [Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989; S. 488], 103 Stat. 1859, approved December 11, 1989; Public Law 101-383 [Energy Policy and Conservation Act Amendments of 1990; S. 2088], 104 Stat. 727, approved September 15, 1990; and by Public Law 102-486 [Energy Policy Act of 1992; H.R. 776], 106 Stat. 2776, approved October 24, 1992

AN ACT To increase domestic energy supplies and availability; to restrain energy demand; to prepare for energy emergencies; and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Energy Policy and Conservation Act".

STATEMENT OF PURPOSES

SEC. 2.1 The purposes of this Act are

(1) to grant specific standby authority to the President, subject to congressional review, to impose rationing, to reduce demand for energy through the implementation of energy conservation plans, and to fulfill obligations of the United States under the international energy program;

(2) to provide for the creation of a Strategic Petroleum Reserve capable of reducing the impact of severe energy supply interruptions;

(3) to increase the supply of fossil fuels in the United States, through price incentives and production requirements;

(4) to conserve energy supplies through energy conservation programs, and, where necessary, the regulation of certain energy uses;

(5) to provide for improved energy efficiency of motor vehicles, major appliances, and certain other consumer products;

142 U.S.C. 6201.

(6) to reduce the demand for petroleum products and natura gas through programs designed to provide greater availabilit and use of this Nation's abundant coal resources;2

(7) to provide a means for verification of energy data to as sure the reliability of energy data; and

(8)2 to conserve water by improving the water efficiency: certain plumbing products and appliances.

DEFINITIONS

SEC. 3.3 As used in this Act:

(1) The term "Secretary" means the Secretary of Energy. (2) The term "person" includes (A) any individual, (B) ar corporation, company, association, firm, partnership, society trust, joint venture, or joint stock company and (C) the gover ment and any agency of the United States or any State or pe litical subdivision thereof.

(3) The term "petroleum product" means crude oil residua fuel oil, or any refined petroleum product (including any natu ral liquid and any natural gas liquid product).

(4) The term "State" means a State, the District of Columbia Puerto Rico, the Trust Territory of the Pacific Islands,5 or any territory or possession of the United States.

(5) The term "United States" when used in the geographica sense means all of the States and the Outer Continental She (6) The term "Outer Continental Shelf" has the same meaning as such term has under section 2 of the Outer Continenta Shelf Lands Act (43 U.S.C. 1331).

(7) The term "international energy program" means the Agreement on an International Energy Program, signed by the United States on November 18, 1974, including (A) the annex entitled "Emergency Reserves",6 (B) any amendment to such Agreement which includes another nation as a party to such Agreement, and (C) any technical or clerical amendment t such Agreement.

(8) The term "severe energy supply interruption" means a national energy supply shortage which the President determines

(A) is, or is likely to be, of significant scope and duration, and of an emergency nature;

(B) may cause major adverse impact on national safety or the national economy; and

(C) results, or is likely to result, from (i) an interruption in the supply of imported petroleum products, (ii) an

2 Sec. 123(a) of the Energy Policy Act of 1992 (Public Law 102-486; 106 Stat. 2817) struck "and" at the end of par. (6), struck a period at the end of par. (7) and inserted “; and", and added new par. (8).

342 U.S.Č. 6202.

The reference to the Secretary of Energy was substituted in lieu of a reference to the Admar istrator of the Federal Energy Administration by sec. 691(a) of Public Law 95-619 (92 Stat 3288).

Sec. 601(f) of Public Law 98-454 (98 Stat. 1736) added the reference to the Trust Terntory of the Pacific Islands to the definition of "State".

For text, see Legislation on Foreign Relations, vol. V, sec. L.

7 Sec. 3(a) of Public Law 101-383 (104 Stat. 727) added clause designations in paragraph (C), and added text of clause (ii).

interruption in the supply of domestic petroleum products, or (iii) sabotage or an act of God.

TITLE I-MATTERS RELATED TO DOMESTIC SUPPLY
AVAILABILITY

PART A-DOMESTIC SUPPLY

I DOMESTIC USE OF ENERGY SUPPLIES AND RELATED MATERIALS AND EQUIPMENT

SEC. 103. (a) The President may, by rule, under such terms and conditions as he determines to be appropriate and necessary to carry out the purposes of this Act, restrict exports of

(1) coal, petroleum products, natural gas, or petrochemical feedstocks, and

(2) supplies of materials of equipment which he determines to be necessary (A) to maintain or further exploration, production, refining, or transportation of energy supplies, or (B) for the construction or maintenance of energy facilities within the United States.

(b)(1) The President shall exercise the authority provided for in subsection (a) to promulgate a rule prohibiting the export of crude oil and natural gas produced in the United States, except that the President may, pursuant to paragraph (2), exempt from such prohibition such crude oil or natural gas exports which he determines to be consistent with the national interest and purposes of this Act. (2) Exemptions from any rule prohibiting crude oil or natural gas exports shall be included in such rule or provided for in an amendment thereto and may be based on the purpose for export, class of seller or purchaser, country or destination, or any other reasonable classification or basis as the President determines to be appropriate and consistent with the national interest and the purposes of this Act.

(c) In order to implement any rule promulgated under subsection (a) of this section, the President may request and, if so, the Secretary of Commerce shall, pursuant to the procedures established by the Export Administration Act of 19799 (but without regard to the phrase "and to reduce the serious inflationary impact of foreign demand" in section 3(2)(C) of such Act), impose such restrictions as specified in any rule under subsection (a) on exports of coal, petroleum products, natural gas, or petrochemical feedstocks, and such supplies of materials and equipment.

(d) Any finding by the President pursuant to subsection (a) or (b) and any action taken by the Secretary of Commerce pursuant thereto shall take into account the national interest as related to the need to leave uninterrupted or unimpaired

842 U.S.C. 6212.

50 U.S.C. App. 2401 note. This reference to the 1979 Act was changed from a reference to the Export Administration Act of 1969 (which expired on Sept. 30, 1979) by sec. 22(b) of Publie Law 96-72 (93 Stat. 535).

(1) exchanges in similar quantity for convenience or i creased efficiency or transportation with persons or the goverment of a foreign state,

(2) temporary exports for convenience or increased efficiers of transportation across parts of an adjacent foreign state which exports reenter the United States, and

(3) the historical trading relations of the United States with Canada and Mexico.

(e)(1) The provisions of subchapter II of chapter 5 of title 5, Unt ed States Code, shall apply with respect to the promulgation of any rule pursuant to this section, except that the President may ware the requirement pertaining to the notice of proposed rule-making or period for comment only if he finds that compliance with suc requirements may seriously impair his ability to impose effective and timely prohibitions on exports.

(2) In the event such notice and comment period are waived with respect to a rule promulgated under this section, the Presider: shall afford interested persons an opportunity to comment on any such rule at the earliest practicable date thereafter.

(3) If the President determines to request the Secretary of Com merce to impose specified restrictions as provided for in subsection (c), the enforcement and penalty provisions of the Export Adminis tration Act of 1969 shall apply, in lieu of this Act, to any violation of such restrictions.

(f) The President shall submit quarterly reports to the Congress concerning the administration of this section and any findings made pursuant to subsection (a) or (b).

TITLE II-STANDBY ENERGY AUTHORITIES

*

PART B-AUTHORITIES WITH RESPECT TO INTERNATIONAL ENERGY

PROGRAM

INTERNATIONAL OIL ALLOCATION

SEC. 251.10 (a) The President may, by rule, require that persons engaged in producing, transporting, refining, distributing, or stor ing petroleum products, take such action as he determines to be necessary for implementation of the obligations of the United States under chapters III and IV of the international energy program insofar as such obligations relate to the international alloca tion of petroleum products. Allocation under such rule shall be in such amounts and at such prices as are specified in (or determined in a manner prescribed by) such rule. Such rule may apply to any petroleum product owned or controlled by any person described in the first sentence of this subsection who is subject to the jurisdic tion of the United States, including any petroleum product destined, directly or indirectly, for import into the United States or any foreign country, or produced in the United States. Subject to

10 42 U.S.C. 6271.

subsection (b)(2), such a rule shall remain in effect until amended or rescinded by the President.

(b)(1) No rule under subsection (a) may take effect unless the President

(A) has transmitted such rule to the Congress;

(B) has found that putting such rule into effect is required in order to fulfill obligations of the United States under the international energy program; and

(C) has transmitted such finding to the Congress, together with a statement of the effective date and manner for exercise of such rule.

(2) No rule under subsection (b) may be put into effect or remain in effect after the expiration of 12 months after the date such rule was transmitted to Congress under paragraph (1)(A).

(c)(1) Any rule under this section shall be consistent with the attainment, to the maximum extent practicable, of the objectives specified in section 4(b)(1) of the Emergency Petroleum Allocation Act of 1973.11

(2) No officer or agency of the United States shall have any authority, other than authority under this section, to require that petroleum products be allocated to other countries for the purpose of implementation of the obligations of the United States under the international energy program.

(d) Neither section 103 of this Act nor section 28(u) of the Mineral Leasing Act of 1920 12 shall preclude the allocation and export, to other countries in accordance with this section, of petroleum products produced in the United States.

(e) 13 No rule under this section may be put into effect unless(1) an international energy supply emergency, as defined in the first sentence of section 252(1)(1), is in effect; and

(2) the allocation of available oil referred to in chapter III of the international energy program has been activated pursuant to chapter IV of such program.

INTERNATIONAL VOLUNTARY AGREEMENTS 14

SEC. 252.15 (a) Effective 90 days after the date of enactment of this Act, the requirements of this section shall be the sole procedures applicable to

(1) the development or carrying out of voluntary agreements and plans of action to implement the allocation and information provisions of the international energy program, and

(2) the availability of immunity from the antitrust laws with respect to the development or carrying out of such voluntary agreements and plans of action.

11 15 U.S.C. 753.

12 30 U.S.C. 185.

13 Subsec. (e) was added by sec. 2(b)(1) of the Energy Emergency Preparedness Act of 1982 (Public Law 97-229; 96 Stat. 248).

14 Sec. 3 of Public Law 96-133 (93 Stat. 1053) required the Secretary of Energy to submit a report to the appropriate committees of Congress by Apr. 2, 1980, concerning the actions taken by the Secretary of Energy, Secretary of State, the Attorney General, and the Chairman of the Federal Trade Commission to carry out the provisions of this section.

18 42 U.S.C. 6272.