Such analysis shall include projections of the effect of the petroleum supply reduction on the price of motor gasoline, home heating, oil, and diesel fuel, and on Federal tax revenues, Federal royalty receipts, and State and local tax revenues.

(2) Within one year after the date of the enactment of this Act, the Secretary of Energy shall submit a report to the Congress and the President containing the analysis required by this subsection, including a detailed step-by-step description of the procedures by which the policies specified in paragraph (1)(C) would be accomplished in an emergency, along with such recommendations as the Secretary of Energy deems appropriate.

(b) STRATEGIC PETROLEUM RESERVE DRAWDOWN AND DISTRIBUTION REPORT.-The President shall prepare and transmit to the Congress, at the time he transmits the drawdown plan pursuant to section 4(c), a report 2 containing

(1) a description of the foreseeable situations (including selective and general embargoes, sabotage, war, act of God, or accident) which could result in a severe energy supply interruption or obligations of the United States arising under the international energy program necessitating distributions from the Strategic Petroleum Reserve, and

(2) a description of the strategy or alternative strategies of distribution which could reasonably be used to respond to each situation described under paragraph (1), together with the theory and justification underlying each such strategy. The description of each strategy under paragraph (2) shall include an explanation of the methods which would likely be used to determine the price and distribution of petroleum products from the Reserve in any such distribution, and an explanation of the disposition of revenues arising from sales of any such petroleum products under the strategy.

(c) REGIONAL RESERVE REPORT.-The President or his delegate shall submit to the Congress no later than December 31, 1982, a report regarding the actions taken to comply with the provisions of section 157 of the Energy Policy and Conservation Act (42 U.S.C. 6237). Such report shall include an analysis of the economic benefits and costs of establishing Regional Petroleum Reserves, including

(1) an assessment of the ability to transport petroleum products to refiners, distributors, and end users within the regions specified in section 157(a) of such Act;

(2) the comparative costs of creating and operating Regional Petroleum Reserves for such regions as compared to the costs of continuing current plans for the Strategic Petroleum Reserve; and

(3) a list of potential sites for Regional Petroleum Reserves. (d) STRATEGIC ALCOHOL FUEL RESERVE REPORT.-The Secretary of Energy shall, in consultation with the Secretary of Agriculture, prepare and transmit to the Congress no later than December 31, 1982, a study of the potential for establishing a Strategic Alcohol Fuel Reserve.

(e) MEANING OF TERMS.-As used in this section, the terms "international emergency program", "petroleum product", "Reserve", "severe energy supply interruption", and "Strategic Petroleum Reserve" have the meanings given such terms in sections 3 and 152 of the Energy Policy and Conservation Act (42 U.S.C. 6202 and 6232).3

3 For text of sec. 3, see page 346.

4. 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 96133 [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; Public 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; and by Public Law 99-58 [H.R. 1699], 99 Stat. 102, approved July 2, 1985

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;

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

1 42 U.S.C. 6201.

(7) to provide a means for verification of energy data to assure the reliability of energy data.

DEFINITIONS

SEC. 3.2 As used in this Act:

(1) The term "Secretary" means the Secretary of Energy. 3 (2) The term "person" includes (A) any individual, (B) any corporation, company, association, firm, partnership, society, trust, joint venture, or joint stock company and (C) the government and any agency of the United States or any State or political subdivision thereof.

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

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

(5) The term “United States" when used in the geographical sense means all of the States and the Outer Continental Shelf. (6) The term "Outer Continental Shelf" has the same meaning as such term has under section 2 of the Outer Continental 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",5 (B) any amendment to such Agreement which includes another nation as a party to such Agreement, and (C) any technical or clerical amendment to 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 an interruption in the supply of imported petroleum products, or from sabotage or an act of God.

2 42 U.S.C. 6202.

3 The reference to the Secretary of Energy was substituted in lieu of a reference to the Administrator 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 Territory of the Pacific Islands to the definition of "State".

5 For text, see Legislation on Foreign Relations Through 1988, vol. V, sec. L.

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 19797 (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

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

(2) temporary exports for convenience or increased efficiency 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, United States Code, shall apply with respect to the promulgation of any rule pursuant to this section, except that the President may

642 U.S.C. 6212.

750 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 Public Law 96-72 (93 Stat. 535).