is consistent with the requirements specified in clause (ii) (II) (bb). "(ii) shall not permit the passthrough in any month of— "(I) any net crude oil cost increases incurred by a refiner not later than the last day of the calendar month which begins two months prior to the effective date of this paragraph and not passed through by the end of the last calendar month prior to the effective date of this paragraph unless such passthrough is not in excess of 10 percent of the total amount of such increased crude oil costs not passed through as of the last day of the last calendar month prior to the effective date of the amendment promulgated under section 8(a); and "(II) any net crude oil cost increases incurred by a refiner after the effective date of this paragraph, which net crude oil cost increases were not passed through within the 2 calendar months following the calendar month in which such crude oil cost increases were incurred, unless "(aa) the President finds, and reports to the Congress with respect to such finding, that a passthrough of such crude oil cost increases is necessary to alleviate the impact on refiners, marketers, or consumers of significant increases in costs, to provide for equitable cost recovery consistent with the attainment, to the maximum extent practicable, of the objectives specified in paragraph (1), or to avoid competitive disadvantage; and "(bb) such passthrough in any month of such crude oil cost increases is not in excess of 10 percent of the total amount of such crude oil cost increases as of the end of the calendar month in which the effective date of this paragraph occurs or any month thereafter; "(C) shall provide for the use of the same date in the computation of markup, margin, and posted price for all marketers or distributors of crude oil, residual fuel, and refined petroleum products at all levels of marketing and distribution; and' "(D) shall not permit more than a direct proportionate distribution (by volume) to Number 2 oils (Number 2 heating oil and Number 2-D diesel fuel), aviation fuel of a kerosene or naphtha type, and propane produced from crude oil, of any increased costs of crude oil incurred by a refiner; except that the President may, by amendment to the regulation under subsection (a) or by order, permit deviation from such proportionate distribution of costs, if the President finds that refinery operations justify such deviation and further finds that to permit such deviation is consistent with the attainment of the objectives in paragraph (1) and would not result in inequitable prices for any class of users of such product. As used in this paragraph, the term 'effective date of this paragraph' means the effective date specified in section 402 (b) of the Energy Policy and Conservation Act.". (b) The amendment made by this section, to the Emergency Petro- Effective date. leum Allocation Act of 1973, shall take effect on the effective date of 15 USC 753 the amendment to the regulation under section 4(a), required by section 8(a) of such Act. (c) The Emergency Petroleum Allocation Act of 1973, as amended by this Act, is further amended by adding at the end thereof the following new section: note. 15 USC 751 note. 15 USC 759. Ante, p. 871. 15 USC 753. 15 USC 752. 15 USC 753 note. 15 USC 754. "LIMITATIONS ON PRICING AUTHORITY "SEC. 10. The President shall have no authority, under this Act, or under the Energy Policy and Conservation Act, to prescribe minimum prices for crude oil (or any classification thereof), residual fuel oil, or any refined petroleum product.". SEC. 403. (a) Section 4 of the Emergency Petroleum Allocation Act of 1973, as amended by this Act, is further amended by adding at the end thereof the following: "(e) Any provision of the regulation under subsection (a) of this section "(1) which requires the purchase of entitlements, or the payment of money through any other similar cash transfer arrangement, the purpose of which is to reduce disparities in the crude oil acquisition costs of domestic refiners, and "(2) which is based upon the number of barrels of crude oil input, or receipts, or both, of any refiner, shall not apply to the first 50,000 barrels per day of input, or receipts, or both, of any refiner whose total refining capacity (including the refining capacity of any person who controls, is controlled by, or is under common control with such refiner) did not exceed on January 1, 1975, and does not thereafter exceed 100,000 barrels per day. The preceding sentence shall not affect any provisions of the regulation under subsection (a) of this section with respect to the receipt by any small refiner as defined in section 3(4) of payments for entitlements or any other similar cash transfer arrangement.". (b) Subsection (a) of this section shall apply with respect to payments due on or after the last day of the month during which the date of enactment of this Act occurs. PART B-OTHER AMENDMENTS TO THE ALLOCATION ACT AMENDMENTS TO THE OBJECTIVES OF THE ALLOCATION ACT SEC. 451. (a) Section 4(b) (1) (A) of the Emergency Petroleum Allocation Act of 1973 is amended to read as follows: "(A) protection of public health (including the production of pharmaceuticals), safety and welfare (including maintenance of residential heating, such as individual homes, apartments and similar occupied dwelling units), and the national defense;". (b) Section 4(b) (1) (G) of the Emergency Petroleum Allocation Act of 1973 is amended to read as follows: "(G) allocation of residual fuel oil and refined petroleum products in such amounts and in such manner as may be necessary for the maintenance of, exploration for, and production or extraction of "(i) fuels, and "(ii) minerals essential to the requirements of the United States, and for required transportation related thereto;". PENALTIES UNDER THE ALLOCATION ACT SEC. 452. Section 5 of the Emergency Petroleum Allocation Act of 1973 is amended: E E (1) by striking out "sections 205 through 211" in subsection (a) (1) of such section and inserting in lieu thereof "sections 205 through 207 and sections 209 through 211"; and (2) by adding at the end of subsection (a) of such section the following: "(3) (A) Whoever violates any provision of the regulation under section 4(a) of this Act, or any order under this Act shall be subject to a civil penalty (i) with respect to activities relating to the production, distribution, or refining of crude oil, of not more than $20,000 for each violation; "(ii) with respect to activities relating to the distribution of residual fuel oil or any refined petroleum product (other than activities entirely at the retail level), of not more than $10,000 for each violation; and "(iii) with respect to activities (I) entirely relating to the distribution of residual fuel oil or any refined petroleum product at the retail level, or (II) activities not referred to in clause (i) or (ii) of subclause (I) of this clause, of not more than $2,500 for each violation. "(B) Whoever willfully violates any provision of such regulation, or any such order shall be imprisoned not more than 1 year, or "(i) with respect to activities relating to the production or refining of crude oil, shall be fined not more than $40,000 for each violation; "(ii) with respect to activities relating to the distribution of residual fuel oil or any refined petroleum product (other than at the retail level), shall be fined not more than $20,000 for each violation; "(iii) with respect to activities relating to the distribution of residual fuel oil or any refined petroleum product at the retail level or any other person shall be fined not more than $10,000 for each violation; or both. "(4) Any individual director, officer, or agent of a corporation who knowingly and willfully authorizes, orders, or performs any of the acts or practices constituting in whole or in part a violation of paragraph (3), shall be subject to penalties under this subsection without regard to any penalties to which that corporation may be subject under paragraph (3) except that no such individual director, officer, or agent shall be subject to imprisonment under paragraph (3), unless he also has knowledge, or reasonably should have known, of notice of noncompliance received by the corporation from the President.". ANTITRUST PROVISION IN ALLOCATION ACT SEC. 453. Section 6(c) of the Emergency Petroleum Allocation Act of 1973 is amended to read as follows: "(c) There shall be available as a defense to any action brought 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 crude oil, residual fuel oil, or any refined petroleum product, that such delay or failure was caused solely by compliance with the provisions of this Act or with the regulation or any order under this Act.". 15 USC 755. 15 USC 751 note. 15 USC 760. 15 USC 753. Infra. 15 USC 760a. Ante, p. 942. EVALUATION OF REGULATION UNDER THE ALLOCATION ACT SEC. 454. The Emergency Petroleum Allocation Act of 1973, as amended by this Act, is further amended by adding at the end thereof the following new section: "REEVALUATION OF SECTION 4(a) REGULATION "SEC. 11. (a) Not later than 60 days after the date of enactment of this section, the President shall give appropriate notice and afford interested persons an opportunity to present written and oral data, views, and arguments respecting the appropriateness of, or the continuing need for, the application of any provision of the regulation promulgated under section 4 (a) as such provision relates to the attainment of the objectives specified in section 4(b) (1) of section 4. A transcript shall be kept of any such oral presentations of data, views, and argument. "(b) The President shall, after consideration of such written and oral presentations and such other information as may be available to him "(1) analyze such presentations and report thereon to the Congress within 120 days after the date of enactment of this section; and "(2) shall promulgate, pursuant to the limitations and authority under section 12, such amendment, or amendments, to the regulation promulgated under section 4 (a) as he determines are necessary or appropriate "(A) to modify any provisions of such regulation in a manner which is consistent with the attainment, to the maximum extent practicable, of objectives specified in section 4 (b) (1); or "(B) to eliminate any provisions of such regulation no longer necessary to provide for the attainment of such objectives.". CONVERSION TO STANDBY AUTHORITIES SEC. 455. The Emergency Petroleum Allocation Act of 1973, as amended by this Act, is further amended by adding at the end thereof the following new section: "CONVERSION MECHANISM TO STANDBY AUTHORITIES "SEC. 12. (a) The President may not amend the regulation under section 4(a) in any manner which "(1) exempts crude oil produced in the United States from any provision of such regulation required to be made a part of such regulation by section 8; or (2) results in making such regulation, as so amended, inconsistent with any limitation or other requirement specified in sec tion 8. "(b) Except as provided in subsection (a), the President may amend the regulation under section 4(a) if he determines that such amendment is consistent with the attainment, to the maximum extent practicable, of the objectives specified in section 4 (b) (1) and that the regulation, as amended, provides for the attainment, to the maximum extent practicable, of such objectives. "(c) (1) Any such amendment which, with respect to a class of persons or class of transactions (including transactions with respect to any market level), exempts crude oil, residual fuel oil, or any refined petroleum product or refined product category from the provisions of the regulation under section 4(a) as such provisions pertain to either 15 USC 753. (A) the allocation of amounts of any such oil or product, or (B) the specification of price or the manner for determining the price of any such oil or product, or both of the matters described in subparagraphs (A) and (B), may take effect only pursuant to the provisions of this subsection. "(2) The President shall submit any amendment referred to in paragraph (1) to the Congress in accordance with the procedures specified in section 551 of the Energy Policy and Conservation Act. Any such Post amendment shall be accompanied by a specific statement of the President's rationale for such amendment and the matter described in subsection (d) of this section. Such an amendment (A) may apply only to one oil or one refined product category; "(B) may apply to the matters specified in either subparagraph (A) or (B) of paragraph (1) of this subsection, or both; and "(C) may provide for scheduled or phased implementation. "(3) As used in this section the term 'refined product category' means "(A) motor gasoline; "(B) Number 2 oils (Number 2 heating oil and Number 2-D diesel fuel); "(C) propane; or "(D) all or any portion of other refined petroleum products as a class (including natural gas liquids and natural gas liquid products, other than propane). "(4) Such an amendment shall not take effect if either House of Congress disapproves such amendment in accordance with the procedures specified in section 551 of the Energy Policy and Conservation Act. "(d) (1) The President shall support any amendment described in subsection (b) which is transmitted to the Congress under subsection (c) of this section with a finding that such amendment is consistent with the attainment of the objectives specified in subsection 4(b) (1) and in the case of "(A) any exemption described in subsection (c) (1) (A), with a finding that such oil or refined product category is no longer in short supply and that exempting such oil or refined product category will not have an adverse impact on the supply of any other oil or refined petroleum product subject to this Act; and "(B) any exemption described in subsection (c) (1) (B), with a finding that competition and market forces are adequate to protect consumers and that exempting such oil or refined product category will not result in inequitable prices for any class of users of such oil or product. "(2) Any amendment which the President submits to the Congress under subsection (c) of this section shall be accompanied "(A) by a statement of the President's views as to the potential economic impacts (if any) of such amendment which, where practicable, shall include his views as to "(i) the State and regional impacts of such amendment (including effects on governmental units); "(ii) the effects of such amendment on the availability of consumer goods and services; the gross national product; competition; small business; and the supply and availability p. 965. "Refined product category." |