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(3) A resolution once mtroduced with respect to an energy action shall immediately be referred to a committee (and all resolutions with respect to the same plan shall be referred to the same committee) by the President of the Senate or the Speaker of the House of Representatives, as the case may be.

(+)(4) If the committee to which a resolution with respect to an energy action has been referred has not reported it at the end of 5 calendar days after its referral, it shall be in order to move either to discharge the committee from further consideration of such resolution or to discharge the committee from further consideration of any other resolution with respect to such energy action which has been referred to the committee.

(B) A motion to discharge may be made only by an individual favoring the resolution, shall be highly privileged (except that it may not be made after the committee has reported a resolution with respect to the same energy action), and debate thereon shall be limited to not more than one hour, to be divided equally between those favoring and those opposing the resolution. An amendment to the motion shall not be in oriler, and it shall not be in order to move to reconsider the vote by which the motion was agreed to or disagreed to.

(C) If the motion to discharge is agreed to or disagreed to, the motion may not be renewed, nor may another motion to discharge the committee be made with respect to any other resolution with respect to the same energy action.

(5)(A) When the committee has reported, or has been discharged from further consideration of, a resolution, it shall be at any time thereafter in order (even though a previous motion to the same effect has been disagreed to) to move to proceed to the consideration of the resolution. The motion shall be highly privileged and shall not be debatable. An amendment to the motion shall not be in order, and it shall not be in order to move to reconsider the vote by which the motion was agreed to or disagreed to.

(B) Debato on the resolution referred to in subparagraph (A) of this paragraph shall be limited to not more than 10 hours, which shall be divided equally between those favoring and those opposing such resolution. A motion further to limit debate shall not be debatable. An amendment to, or motion to recommit, the resolution shall not be in order, and it shall not be in order to move to reconsider the vote by which such resolution was agreed to or disagreed to; except that it shall be in order

(i) to offer an amendment in the nature of a substitute, consisting of the text of a resolution described in paragraph (2) (A). of this subsection with respect to an energy action, for a resolution described in paragraph (2) (B) of this subsection with respect to the same such action, or

(ii) to offer an amendment in the nature of a substitute, consisting of the text of a resolution described in paragraph (2) (B), of this subsection with respect to an energy action, for a resolution described in paragraph (2) (A) of this subsection with respect to

the same such action. The amendments described in clauses (i) and (ii) of this subparagraph shall not be amendable.

(6)(A) Motions to postpone, made with respect to the discharge from committee, or the consideration of a resolution and motions to proceed to the consideration of other business, shall be decided without debate.

(B) Appeals from the decision of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to a resolution shall be decided without debate.

(7) Notwithstanding any of the provisions of this subsection, if a House has approved a resolution with respect to an energy action, then it shall not be in order to consider in that House any other resolution with respect to the same such action.

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TRANSMITTAL RELATING TO ENERGY ACTION NUMBERED 3,

JUNE 15, 1976

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On April 21, 1976, the Federal Energy Administration gave notice of a proposal to exempt No. 2 heating oil, No. 2-D diesel fuel and other middle distillates from the Mandatory Petroleum Allocation and Price Regulations and to revoke Part 215 (Low Sulphur Petroleum Products Regulation). Written comments from interested persons were invited through May 11, 1976, and a public hearing regarding the proposal was held on May 12 and 13, 1976.

FEA has now completed its consideration of all the information available in this proceeding and has determined that the proposal to exempt middle distillates should be adopted and that Part 215 should be revoked. As required by section 455 of the Energy Policy and Conservation Act, Pub. L. 94-163 (EPCA), which added section 12 to the Emergency Petroleum Allocation Act of 1973, as amended (EPAA), each amendment exempting a refined product category from regulation must be submitted separately to each House of the Congress for review pursuant to section 551 of the EPCA.

FEA is, therefore, herewith submitting the amendment revoking Part 215 and exempting No. 2 heating oil and No. 2-D diesel fuel, which are defined in the EPCA as a single refined product category, to the Senate, and is also concurrently submitting the amendment to the House of Representatives for Congressional review. By Energy Action No. 4, FEA is separately submitting to each House of Congress an amendment exempting

(5)

the other middle distillates (No. 1 heating oil, No. 1-D diesel fuel and kerosene), which are defined in the EPCA as another refined product category, for review pursuant to section 551 of the EPCA.

The findings and views supporting this amendment, which are required by section 455 of the EPCA, are set forth in the enclosed document entitled "Findings and Views Concerning the Exemption of Middle Distillates from the Mandatory Petroleum Allocation and Price Regulations".

The Administrator of the Federal Energy Administration has been delegated by the President all the authority granted to him by the EPAA (E.0. 11790, 39 F.R. 23185, June 27, 1974).

Unless disapproved by the Congress as provided by section 551 of the EPCA, the enclosed amendment will be effective July 1, 1976 or on the first day following expiration of the review period provided for by Section 551 of the EPCA, whichever is later.

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TITLE 10 - ENERGY

CHAPTER II

FEDERAL ENERGY ADMINISTRATION

PART 210 GENERAL ALLOCATION AND PRICE RULES
PART 211 MANDATORY PETROLEUM ALLOCATION REGULATIONS

PART 212 MANDATORY PETROLEUM PRICE REGULATIONS
PART 215 LOW SULFUR PETROLEUM PRODUCTS REGULATION

Exemption of No. 2 Heating Oil and No. 2-D Diesel Fuel from the Mandatory Petroleum Allocation and Price Regulations

Introduction

On April 21, 1976, the Federal Energy Administration

issued a notice of proposed rulemaking and public hearing

(41 FR 17512, April 26, 1976) to amend 10 CFR Parts 210, 211

and 212 to exempt middle distillate, including No. 2 heating

oil and No. 2-0 diesel fuel, from the Mandatory Petroleum

Price and Allocation Regulations and to revoke 10 CFR Part

215 which regulates the use of low sulfur petroleum products. The proposal was based on tentative conclusions set forth in

a document dated April 21, 1976, entitled "Preliminary

Findings and Views Concerning the Exemption of Middle Distillates

from the Mandatory Petroleum Allocation and Price Regulations"

("Preliminary Findings"). Written comments

on the exemption

proposal and on the Preliminary Findings were invited through May 11, 1976, and the public hearing was held May 12 and May

13, 1976.

In the April 21 notice, FEA noted that its conclusion

that market conditions might be appropriate for an end to

price and allocation controls was shared by many members of

Congress *ho had urged FEA to commence the process of exempting

products from regulation.

As an example, FEA specifically cited a letter to the

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Administrator of FEA dated November 4, 1975, from Senators

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Kennedy, Durkin, Stafford, Muskie, Pastore, McIntyre, Brooke,

Pell and Ribicoff which stated:

As supplies of fuel oil and other petroleum products
have returned to normal levels, fuel dealers are reporting
to us that the price and allocation controls may be
preventing the free play of competitive forces and
thereby raising consumer prices.

Since there is conflicting and complex evidence on this
issue, we believe it is the best interest of all parties
to air fully the options for action and the possible
consequences of changing the allocation and price
control system. We therefore feel that public hearings
should be held by the Federal Energy Administration as
provided by section 4 (g) (2) of the Allocation Act of
1973 and the similar provision of S. 622-H.R. 7014, now
in Conference.

As the hearing process is a lengthy one and must, of course, be followed by careful congressional review of the FEA's findings, the FEA should begin this process soon so that the Congress and the public will have full opportunity to consider this vital issue.

We therefore strongly urge that you issue the public
notice necessary to the commencement of public hearings
on the removal of allocation and price controls from
retailers and wholesalers of fuel oil and other petroleum
products.

Section 12 (c) (2) of the Emergency Petroleum Allocation Act

of 1973 (EPAA) requires that an exemption amendment apply to

only one oil or one refined product category, and specifies

that No. 2 heating oil and No. 2-0 diesel fuel constitute a

single product category.

FEA proposed the exemption of No.

2 heating oil, No. 2-D diesel fuel and other middle distillate

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