ENERGY EMERGENCY PREPAREDNESS: THURSDAY, MAY 6, 1982 U.S. SENATE, COMMITTEE ON ENERGY AND NATURAL RESOURCES, Washington, D.C. The committee met, pursuant to notice, at 10:12 a.m., in room 3110, Dirksen Office Building, Hon. James A. McClure, chairman, presiding. Present: Senators McClure, Warner, Nickles, Bumpers, Melcher, and Bradley. Also present: Charles A. Trabandt, chief counsel; Richard D. Grudy, professional staff member; E. David Doane, counsel; Elizabeth Moler, counsel for the minority; Benjamin S. Cooper, professional staff member for the minority; and James T. Bruce, counsel for the minority. OPENING STATEMENT OF HON. JOHN W. WARNER, A U.S. Senator WARNER. My apologies for the delay. We were tied up in a special budget session. Immediately following my statement, the record will reflect the statement by Chairman McClure and the ranking minority member, Senator Jackson. Before we begin, I wish to state that I think this is a very important subject. I will be chairing for a while, but because the defense bill is on the floor, someone else will come and relieve me. Today the Committee on Energy and Natural Resources will convene a hearing on S. 2332, bill to extend the expiration date of section 252 of the Energy Policy and Conservation Act. The hearing will include testimony on three printed amendments, to S. 2332 that have been submitted by Senator Jackson and Senator Durenberger. Amendment No. 1352 by Senator Durenberger requires the President to prepare and send to the Congress a drawdown plan for the SPR. Amendment No. 1353 by Senator Durenberger denies the availability of the IEA antitrust immunity to oil companies participating in "subcrisis management" activities of the IEA. Amendment No. 1354 by Senator Jackson requires the President to submit to Congress, first, a memorandum of law on the nature and extent of his energy contingency authorities, and second, comprehensive contingency plans to carry out those authorities. It also (1) requires the SPR to be filled at a minimum of 300,000 barrels per day until 500 million barrels are in storage and to amend existing law to facilitate the achievement of that fill rate through the leasing of interim private storage facilities. In addition, it requires the President to submit a report to Congress on various aspects of an oil supply distribution including likely prices of petroleum products, effects on the market of unpreempted State and local laws, and the potential for recycling rev enues. The committee is seriously concerned about the U.S. energy emergency preparedness. The United States is now embarked on a policy of reliance on the marketplace for the allocation of energy supply shortages. Consistent with this policy we understand the administration has initiated a series of new initiatives to deal with the domestic and international aspects of energy emergency preparedness. This hearing is part of the committee's continuing inquiry into the status of our country's energy emergency preparedness. Today we are proceeding forward in our continuing effort to fashion a program that is fully acceptable to the administration, the Congress, and the American people. [The prepared statements of Senators Warner, McClure, and Jackson, and the texts of S. 2332, and Amendments Nos. 1352, 1353, and 1354 follow:] OPENING STATEMENT SENATOR JOHN W. WARNER S. 2532, A BILL THAT WOULD AMEND THE ENERGY POLICY AND COMMITTEE ON ENERGY AND NATURAL RESOURCES UNITED STATES SENATE THURSDAY, MAY 6, 1982 (10:00 A.M.) GOOD MORNING. BEFORE WE BEGIN I WISH TO INSERT IN THE RECORD THE OPENING STATEMENT OF CHAIRMAN MCCLURE. TODAY THE COMMITTEE ON ENERGY AND NATURAL RESOURCES WILL CONVENE A HEARING ON S. 2332, A BILL TO EXTEND THE EXPIRATION DATE OF SECTION 252 OF THE ENERGY POLICY AND CONSERVATION ACT. THE HEARING WILL INCLUDE TESTIMONY ON THREE PRINTED AMENDMENTS TO S. 2332 THAT HAVE BEEN SUBMITTED BY SENATOR JACKSON AND SENATOR DURENBERGER. AMENDMENT NO. 1352 (BY SENATOR DURENBERGER) REQUIRES THE PRESIDENT TO PREPARE AND SEND TO THE CONGRESS (FOR CONGRESSIONAL REVIEW UNDER EXISTING LAW) A DRAWDOWN PLAN FOR THE SPR. AMENDMENT NO 1555 (BY SENATOR DURENBERGER) DENIES THE AVAILABILITY OF THE IEA ANTITRUST IMMUNITY TO OIL COMPANIES PARTICIPATING IN "SUB-CRISIS MANAGEMENT" ACTIVITIES OF THE IEA. AMENDMENT NO. 1354 (BY SENATOR JASCKSON) REQUIRES THE PRESIDENT TO SUBMIT TO CONGRESS (A) A MEMORANDUM OF LAW ON THE NATURE AND UNPREEMPTED STATE AND LOCAL LAWS, AND THE POTENTIAL FOR RECYCLING REVENUES, IN (OVER) PAGE TWO THE COMMITTEE IS SERIOUSLY CONCERNED ABOUT THE UNITED STATES ENERGY EMERGENCY PREPAREDNESS. THE UNITED STATES IS NOW EMBARKED ON A POLICY OF RELIANCE ON THE MARKETPLACE FOR THE ALLOCATION OF ENERGY SUPPLY SHORTAGES. CONSISTENT WITH THIS POLICY WE UNDERSTAND THE ADMINISTRATION HAS INITIATED A SERIES OF NEW INITIATIVES TO DEAL WITH THE DOMESTIC AND INTERNATIONAL ASPECTS OF ENERGY EMERGENCY PREPAREDNESS. THIS HEARING IS PART OF THE COMMITTEE'S CONTINUING INQUIRY INTO THE STATUS OF OUR COUNTRY'S ENERGY EMERGENCY PREPAREDNESS. TODAY WE ARE PROCEEDING FORWARD IN OUR CONTINUING EFFORT TO FASHION A PROGRAM THAT IS FULLY ACCEPTABLE TO THE ADMINISTRATION, THE CONGRESS, AND THE AMERICAN PEOPLE. |