Summary: S.1503 — 97th Congress (1981-1982)All Information (Except Text)

Bill summaries are authored by CRS.

Shown Here:
Conference report filed in House (02/22/1982)

(Conference report filed in House, H. Rept. 97-432)

Standby Petroleum Allocation Act of 1982 - Amends the Energy Policy and Conservation Act to direct the President to promulgate and transmit to Congress a standby regulation (the regulation) for the mandatory allocation of petroleum products. Requires the President in promulgating the regulation to provide for: (1) public hearings in various regions of the United States; and (2) participation by the executive departments of the Government. Allows the President to amend the regulation after its promulgation.

Permits the regulation to include price limitations on petroleum products only if the President finds such limitations are necessary to ensure effective implementation of the regulation. Permits such limitations to include provisions restricting discriminatory pricing. Prohibits judicial review of such a Presidential finding.

Requires 30 days to elapse after the standby regulation, or an amendment to such regulation, is transmitted to Congress before it becomes effective, unless there is a severe petroleum supply shortage.

Authorizes the President to implement the regulation if: (1) the President determines there is a severe petroleum supply shortage in effect; and (2) the President's intention to implement the regulation and a copy of the regulation have been transmitted to Congress, and neither House disapproves the regulation. Prohibits any regulation so implemented from remaining in effect for more than 90 days, except that there may be a 60-day extension if the President finds that: (1) the shortage continues; and (2) the extension is necessary to meet the purposes of this Act. Provides that after the 60-day extension the President must make a new determination of a severe shortage.

Authorizes congressional review of an amendment to the regulation only in specified circumstances.

Provides for a State set-aside of residual fuel oil or any refined petroleum product if such residual fuel oil or petroleum product is allocated in such State pursuant to the Federal program.

Requires the administration of the regulation, to the maximum extent practicable, to: (1) protect public health, safety, and welfare; (2) maintain all public services (including utilities); (3) maintain agricultural operations; (4) preserve an economically sound and competitive petroleum industry; (5) allocate suitable types of crude oil to refineries for operation at full capacity; (6) distribute petroleum and refined petroleum products equitably, at equitable prices; (7) allocate residual fuel oil and refined petroleum products necessary for the exploration for and the development, production, and storage of fuels and essential minerals; and (8) minimize economic distortion.

Requires the regulation to include an optional standby crude oil sharing program which, if implemented, would require the sharing of crude oil among refiners. Requires any notice of intent to implement a crude-sharing program to be accompanied by a declaration by the President that such program is likely to result in a significant reduction in anticipated adverse impacts of a severe petroleum supply shortage and thereby benefit consumers as a whole.

Requires the crude-sharing program to: (1) minimize price increases in petroleum products; (2) fairly distribute the burdens of a shortage; (3) minimize adverse impacts on consumers; (4) aid in the equitable distribution of crude oil among refiners; (5) encourage refineries to maintain inventories; (6) result in the availability of needed products to consumers; and (7) have minimum interference with market mechanisms. Requires the program to: (1) identify those refiners which will be required to sell, and those which will be offered an opportunity to buy, crude oil; (2) determine the extent to which the program will offset the disproportionate impact of reduced supplies of crude oil on the ability of a refiner to provide needed refined petroleum products; (3) specify the amount of, and terms and conditions and an equitable price for, crude oil sold under the program; (4) decide whether any requirement that a refiner sell crude oil under the program should be reduced because such requirement is likely to create an unreasonable burden on such refiner or be otherwise inconsistent with the purposes of this Act; and (5) assure that any benefits or burdens of the program are passed on to customers.

Prohibits the President from: (1) imposing any tax, tariff, or user fee; (2) prescribing minimum prices for any petroleum product; or (3) establishing or implementing a program for the assignment of rights for end-user purchases of gasoline or diesel fuel.

Prohibits the President from: (1) providing for the allocation of consumer petroleum inventories; (2) imposing restrictions on the consumption of such inventories; or (3) considering the size of such inventories in determining the amount of petroleum products to be allocated to any such consumer. Allows the President to take into account the size of the petroleum inventories held by a consumer in determining whether or not to increase the otherwise applicable allocation under this Act to that consumer, if the consumer petitions for such increase.

Provides for the preemption of any State or local program for the allocation or pricing of any petroleum product. Authorizes the President to exempt from preemption certain classes of state laws or regulations if: (1) a significant State interest would be preserved; (2) interstate commerce would not be burdened; and (3) the achievement of the purposes of this Act would not be impeded. Permits a State's Governor to request a State set-aside program. Directs the President to act upon such request within ten days. Defines a "State set aside program" as one which: (1) is necessary to prevent the impairment of essential activities; (2) is of limited duration; and (3) does not require any State prime supplier to set aside more than five percent of the supplier's monthly supply to the State.

Permits as a defense to any action for breach of contract relating to any petroleum product that the breach was caused by compliance with this Act.

States that nothing in this Act shall be construed to require that any action taken under this Act be taken in a manner which would have been required under the Emergency Petroleum Allocation Act of 1973 had that Act not expired.

Sets forth enforcement and administrative provisions. Restricts the civil penalty for violation of the regulation to $40,000.

Authorizes the President or his delegate to collect information on the pricing, supply, and distribution of petroleum products on a State-by-State basis.

States that nothing in this Act affects any authority under any other provision of Federal law to provide for the allocation or pricing of any petroleum product.

Authorizes the President to delegate to any State all authority to administer any regulation promulgated. Prohibits the President from delegating authority to: (1) any Federal agency except the Department of Energy; (2) determine any serve petroleum shortage; (3) make a declaration respecting a crude-sharing program; or (4) approve or disapprove a disapprove a request for a State set-aside program.

Sets the expiration date of this Act at December 31, 1984.

Directs the President to report to Congress on: (1) the impact of market allocation and pricing during a severe oil supply shortage; (2) the impact of the standby program; (3) reducing the tax liability of persons who draw down oil reserves during oil supply disruption; (4) providing incentives for the construction of private-sector oil storage facilities; and (5) the manner in which oil stockpile and demand restraint measures have been and may be coordinated among some or all allies and trading partners.

Extends until July 1, 1983, Presidential authorities with respect to the International Energy Program.