AMENDMENT TO TITLE I OF THE ENERGY POLICY AND CONSERVATION ACT.

SEC. 103. AMENDMENT TO TITLE I OF THE ENERGY POLICY AND CONSERVATION ACT. Title I of the Energy Policy and Conservation Act (42 U.S.C. 6211-6251) is amended— (1) by striking section 102 (42 U.S.C. 6211) and its heading; (2) by striking section 104(b)(1); (3) by striking section 106 (42 U.S.C. 6214) and its heading; (4) by amending section 151(b) (42 U.S.C. 6231) to read as follows: “(b) It is the policy of the United States to provide for the creation of a Strategic Petroleum Reserve for the storage of up to 1 billion barrels of petroleum products to reduce the impact of disruptions in supplies of petroleum products, to carry out obligations of the United States under the international energy program, and for other purposes as provided for in this Act.”; (5) in section 152 (42 U.S.C. 6232)— (A) by striking paragraphs (1), (3), and (7); and 114 STAT. 2030 (B) in paragraph (11) by striking “; such term includes the Industrial Petroleum Reserve, the Early Storage Reserve, and the Regional Petroleum Reserve”. (6) by striking section 153 (42 U.S.C. 6233) and its heading; (7) in section 154 (42 U.S.C. 6234)— (A) by amending subsection (a) to read as follows: “(a) A Strategic Petroleum Reserve for the storage of up to 1 billion barrels of petroleum products shall be created pursuant to this part.”; (B) by amending subsection (b) to read as follows: “(b) The Secretary, in accordance with this part, shall exercise authority over the development, operation, and maintenance of the Reserve.”; and (C) by striking subsections (c), (d), and (e); (8) by striking section 155 (42 U.S.C. 6235) and its heading; (9) by striking section 156 (42 U.S.C. 6236) and its heading; (10) by striking section 157 (42 U.S.C. 6237) and its heading; (11) by striking section 158 (42 U.S.C. 6238) and its heading; (12) by amending the heading for section 159 (42 U.S.C. 6239) to read, “Development, Operation, and Maintenance of the Reserve"; (13) in section 159 (42 U.S.C. 6239)— (A) by striking subsections (a), (b), (c), (d), and (e); (B) by amending subsection (f) to read as follows: “(f) In order to develop, operate, or maintain the Strategic Petroleum Reserve, the Secretary may— “(1) issue rules, regulations, or orders; “(2) acquire by purchase, condemnation, or otherwise, land or interests in land for the location of storage and related facilities; “(3) construct, purchase, lease, or otherwise acquire storage and related facilities; “(4) use, lease, maintain, sell or otherwise dispose of land or interests in land, or of storage and related facilities acquired under this part, under such terms and conditions as the Secretary considers necessary or appropriate; “(5) acquire, subject to the provisions of section 160, by purchase, exchange, or otherwise, petroleum products for storage in the Strategic Petroleum Reserve; “(6) store petroleum products in storage facilities owned and controlled by the United States or in storage facilities owned by others if those facilities are subject to audit by the United States; “(7) execute any contracts necessary to develop, operate, or maintain the Strategic Petroleum Reserve; “(8) bring an action, when the Secretary considers it necessary, in any court having jurisdiction over the proceedings, to acquire by condemnation any real or personal property, including facilities, temporary use of facilities, or other interests in land, together with any personal property located on or used with the land.”; and (C) in subsection (g)— (i) by striking “implementation” and inserting “development”; and (ii) by striking “Plan”; 114 STAT. 2031 (D) by striking subsections (h) and (i); (E) by amending subsection (j) to read as follows: “(j) If the Secretary determines expansion beyond 700,000,000 barrels of petroleum product inventory is appropriate, the Secretary shall submit a plan for expansion to the Congress.”; and (F) by amending subsection (l) to read as follows: “(l) During a drawdown and sale of Strategic Petroleum Reserve petroleum products, the Secretary may issue implementing rules, regulations, or orders in accordance with section 553 of title 5, United States Code, without regard to rulemaking requirements in section 523 of this Act, and section 501 of the Department of Energy Organization Act (42 U.S.C. 7191).”; (14) in section 160 (42 U.S.C. 6240)— (A) in subsection (a), by striking all before the dash and inserting the following— “(a) The Secretary may acquire, place in storage, transport, or exchange”; (B) in subsection (a)(1) by striking all after “Federal lands”; (C) in subsection (b), by striking “, including the Early Storage Reserve and the Regional Petroleum Reserve” and by striking paragraph (2); and (D) by striking subsections (c), (d), (e), and (g); (15) in section 161 (42 U.S.C. 6241)— (A) by striking “Distribution of the Reserve” in the title of this section and inserting “Sale of Petroleum Products”; (B) in subsection (a), by striking “drawdown and distribute” and inserting “drawdown and sell petroleum products in”; (C) by striking subsections (b), (c), and (f); (D) by amending subsection (d)(1) to read as follows: “(d)(1) Drawdown and sale of petroleum products from the Strategic Petroleum Reserve may not be made unless the President has found drawdown and sale are required by a severe energy supply interruption or by obligations of the United States under the international energy program”; (E) by amending subsection (e) to read as follows: “(e)(1) The Secretary shall sell petroleum products withdrawn from the Strategic Petroleum Reserve at public sale to the highest qualified bidder in the amounts, for the period, and after a notice of sale considered appropriate by the Secretary, and without regard to Federal, State, or local regulations controlling sales of petroleum products. “(2) The Secretary may cancel in whole or in part any offer to sell petroleum products as part of any drawdown and sale under this section.”; and (F) in subsection (g)— (i) by amending paragraph (1) to read as follows: “(g)(1) The Secretary shall conduct a continuing evaluation of the drawdown and sales procedures. In the conduct of an evaluation, the Secretary is authorized to carry out a test drawdown and sale or exchange of petroleum products from the Reserve. Such a test drawdown and sale or exchange may not exceed 5,000,000 barrels of petroleum products.”; (ii) by striking paragraph (2); 114 STAT. 2032 (iii) in paragraph. (4), by striking “90” and inserting “95”; (iv) in paragraph (5), by striking “drawdown and distribution” and inserting “test”; (v) by amending paragraph (6) to read as follows: “(6) In the case of a sale of any petroleum products under this subsection, the Secretary shall, to the extent funds are available in the SPR Petroleum Account as a result of such sale, acquire petroleum products for the Reserve within the 12-month period beginning after completion of the sale.”; and (vi) in paragraph (8), by striking “drawdown and distribution” and inserting “test”; (G) in subsection (h)— (i) in paragraph (1) by striking “distribute” and inserting “sell petroleum products from”; (ii) by striking “and” at the end of paragraph (1)(A) and by striking “shortage,” at the end of paragraph (1)(B) and inserting “shortage; and “(C) the Secretary of Defense has found that action taken under this subsection will not impair national security,”; (iii) in paragraph (2) by striking “In no case may the Reserve” and inserting “Petroleum products from the Reserve may not”; and (iv) in paragraph (3) by striking “distribution” each time it appears and inserting “sale”; (16) by striking section 164 (42 U.S.C. 6244) and its heading; (17) by amending section 165 (42 U.S.C. 6245) and its heading to read as follows: “annual report “Sec. 165. The Secretary shall report annually to the President and the Congress on actions taken to implement this part. This report shall include— “(1) the status of the physical capacity of the Reserve and the type and quantity of petroleum products in the Reserve; “(2) an estimate of the schedule and cost to complete planned equipment upgrade or capital investment in the Reserve, including upgrades and investments carried out as part of operational maintenance or extension of life activities; “(3) an identification of any life-limiting conditions or operational problems at any Reserve facility, and proposed remedial actions including an estimate of the schedule ana cost of implementing those remedial actions; “(4) a description of current withdrawal and distribution rates and capabilities, and an identification of any operational or other limitations on those rates and capabilities; “(5) a listing of petroleum product acquisitions made in the preceding year and planned in the following year, including quantity, price, and type of petroleum; “(6) a summary of the actions taken to develop, operate, and maintain the Reserve; “(7) a summary of the financial status and financial transactions of the Strategic Petroleum Reserve and Strategic Petroleum Reserve Petroleum Accounts for the year; 114 STAT. 2033 “(8) a summary of expenses for the year, and the number of Federal and contractor employees; “(9) the status of contracts for development, operation, maintenance, distribution, and other activities related to the implementation of this part; “(10) a summary of foreign oil storage agreements and their implementation status; “(11) any recommendations for supplemental legislation or policy or operational changes the Secretary considers necessary or appropriate to implement this part.”; (18) in section 166 (42 U.S.C. 6246) by striking “for fiscal year 1997.”; (19) in section 167 (42 U.S.C. 6247)— (A) in subsection (b)— (i) by striking “and the drawdown” and inserting “for test sales of petroleum products from the Reserve, and for the drawdown, sale,”; (ii) by striking paragraph (1); and (iii) in paragraph (2), by striking “after fiscal year 1982”; and (B) by striking subsection (e); (20) in section 171 (42 U.S.C. 6249)— (A) by amending subsection (b)(2)(B) to read as follows: “(B) the Secretary notifies each House of the Congress of the determination and identifies in the notification the location, type, and ownership of storage and related facilities proposed to be included, or the volume, type, and ownership of petroleum products proposed to be stored, in the Reserve, and an estimate of the proposed benefits.”; (B) in subsection (b)(3), by striking “distribution of” and inserting “sale of petroleum products from”; (21) in section 172 (42 U.S.C. 6249a), by striking subsections (a) and (b); (22) by striking section 173 (42 U.S.C. 6249b) and its heading; and (23) in section 181 (42 U.S.C. 6251), by striking “March 31, 2000” each time it appears and inserting “September 30, 2003”.