To provide standby authority to deal with petroleum supply disruptions, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 11 (legislative day, JUNE 1), 1981 Mr. BRADLEY (for himself and Mr. PERCY) introduced the following bill; which was read twice and referred to the Committee on Finance II 1 A BILL To provide standby authority to deal with petroleum supply disruptions, and for other purposes. Be it enacted by the Senate and House of Representa 2 tives of the United States of America in Congress assembled, 3 SECTION 1. (a) SHORT TITLE.-This Act may be cited as 4 the "Emergency Preparedness Act of 1981". 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Sec. 103. Implementation of the approved standby plan. Sec. 104. Reimbursement to States. Sec. 105. Expiration. TITLE II-USE OF THE STRATEGIC PETROLEUM RESERVE Sec. 201. Crude oil access. Sec. 202. Amendments to the Strategic Petroleum Reserve Plan. TITLE III-INVESTIGATIONS AND REPORTS Sec. 301. Oil storage tax incentives. Sec. 302. International cooperation. STATEMENT OF FINDINGS AND PURPOSES SEC. 2. (a) Congress finds and declares that (1) disruptions in the supply of imported oil are likely during the next decade; (2) such emergencies will disrupt normal petroleum market operations; standby sources of supply of crude oil, such as strategic stockpiles, should be used to mitigate the potential for market turmoil; (3) if oil stockpiles are unavailable or insufficient to fully offset the reduction in oil available to the world oil market, oil prices will rise, possibly rapidly and to high levels; (4) without compensating action, such high prices will create severe economic dislocations and individual hardships; (5) if Federal action is not taken to ameliorate these economic consequences of disruptions, individual states may be compelled to implement differing, perhaps less efficient emergency programs; 1 2 3 4 5 6 7 8 9 10 11 12 13 3 (6) severe oil supply disruptions constitute a threat to public health, safety, and welfare which can most effectively, efficiently, and equitably be dealt with through prompt fiscal action by the executive branch of Government; and (7) no emergency program will be able to avoid entirely the market disruptions and personal hardships that will accompany a petroleum supply disruption; however, prompt fiscal action by the executive branch of Government will reduce individual hardships and economic dislocations more effectively than other mechanisms used in the past. (b) The purpose of this Act is to grant the President of 14 the United States authority during severe supply disruptions 15 of crude oil to recycle Federal tax revenues to United States 16 residents and State Governors for further distribution. The 17 authority granted under this Act shall be exercised only for 18 the purpose of minimizing the adverse effects of such supply 19 disruptions on the Nation. DEFINITIONS SEC. 3. As used in this Act: (1) The term "United States" means the several States, the Commonwealth of Puerto Rico, the District of Columbia, and the trusts and territories of the United States. 4 (2) The term "State" means the 50 States, the Commonwealth of Puerto Rico, the District of Colum bia, or the trusts and territories of the United States. (3) The term "severe petroleum supply disruption" means a reduction in the volume of oil available to the world oil market which the President determines (A) is the primary cause or is likely to be the primary cause of a 20-percent increase in the world price of petroleum products over a 3-month period; and (B) is having or can reasonably be expected to have a major adverse effect on public health, safety, or welfare, or the national economy. A severe petroleum supply disruption exists only as long as either the world price of petroleum prod ucts remains above the predisruption level or the volume of oil available to the world oil market remains below the predisruption level. (4) The term "to recycle Federal tax revenues" means to rapidly return to the economy the increased revenues of the Federal crude oil windfall profit tax (Public Law 96-223), or other disruption-related, in creased Federal revenues, that the President deter 5 14 mines have resulted or are likely to result from a severe petroleum disruption. (5) The term "refined petroleum products" means gasoline, kerosene, distillates (including Number 2 fuel oil), liquid petroleum gases, refined lubricating oils, diesel fuel, and residual fuel. (6) The term "world price of petroleum products" means a weighted average of spot and contract prices as reported in several world marketing centers as determined by the President. TITLE I-STANDBY REVENUE RECYCLING AUTHORITY STANDBY RECYCLING AUTHORITY SEC. 101. (a) Not later than 180 calendar days after the 15 date of the enactment of this title, the President shall submit 16 a proposed standby plan to Congress which when implement17 ed will permit the President to recycle Federal tax revenues 18 both to State Governors for further distribution and to resi19 dents of the United States. 20 (b) The proposed standby plan under subsection (a), to 21 the maximum extent practicable, shall provide for 22 23 24 25 my; (1) economic efficiency in all sectors of the econo (2) the mitigation of extreme personal hardship caused by the severe petroleum supply disruption; |