NATIONAL FUELS AND ENERGY POLICY STUDY

(SENATE RESOLUTION 45, 92D CONGRESS)

This publication is printed for the use of Senators participating in the National Fuels and Energy Policy Study, authorized by Senate Resolution 45 of the 92d Congress.

Senate Resolution 45, introduced by Senators Jennings Randolph and Henry M. Jackson, was amended and agreed to by the Senate on May 3, 1971. The resolution authorized the Senate Committee on Interior and Insular Affairs and exofficio members of the Committees on Commerce and Public Works and the Joint Committee on Atomic Energy to make a comprehensive study of programs and policies required to meet national energy needs.

Subsequently, the Senate approved the addition of ex-officio members from the Committees on Aeronautical and Space Sciences, on Finance, on Foreign Relations, on Government Operations, and on Labor and Public Welfare.

COMMITTEE ON INTERIOR AND INSULAR AFFAIRS

HENRY M. JACKSON, Washington, Chairman

FRANK CHURCH, Idaho

LEE METCALF, Montana

J. BENNETT JOHNSTON, Louisiana

JAMES ABOUREZK, South Dakota

FLOYD K. HASKELL, Colorado

JOHN F. GLENN, Ohio

RICHARD STONE, Florida
DALE BUMPERS, Arkansas

PAUL J. FANNIN, Arizona
CLIFFORD P. HANSEN, Wyoming
MARK O. HATFIELD, Oregon
JAMES A. MCCLURE, Idaho
DEWEY F. BARTLETT, Oklahoma

GRENVILLE GARSIDE, Special Counsel and Staff Director
DANIEL A. DREYFUS, Deputy Staff Director for Legislation
WILLIAM J. VAN NESS, Chief Counsel

D. MICHAEL HARVEY, Deputy Chief Counsel
OWEN J. MALONE, Senior Counsel

W. O. (FRED) CRAFT, Jr., Minority Counsel

EX-OFFICIO MEMBERS FOR NATIONAL FUELS AND ENERGY POLICY STUDY

RICHARD D. GRUNDY, Executive Secretary and Professional Staff
DAVID STANG, Deputy Director for Minority

(II)

MEMORANDUM OF THE CHAIRMAN

To Members and ex-officio members of the National Fuels and Energy Policy Study (S. Res. 45, 92d Cong.), Committee on Interior and Insular Affairs:

Mandatory price and allocation regulations governing sales of crude oil, residual fuel oil and refined petroleum products have been in existence since the enactment, during the Arab embargo, of the Emergency Petroleum Allocation Act of 1973. Congress has repeatedly determined that the continued existence of features of these price and allocation regulations is desirable and essential to protect both consumers and independent segments of the petroleum industry from dislocations caused by the arbitrary, precipitous increases in world oil prices which have been imposed by the Organization of Petroleum Exporting Countries cartel. The Energy Policy and Conservation Act (Public Law 94-163) which the President signed on December 22, 1975, establishes a policy and a procedure for executive branch proposals for the modification of the price and allocation regulations. The conference committee which reported the EPCA recognized that a procedure to modify the regulation would be necessary to take account of changing circumstances in the domestic petroleum supply and demand situation since the 1973-74 "crisis" period.

The procedures adopted in sections 455 and 551 of EPCA involve the submission to the Congress by the President of a proposed "energy action" modifying the regulation as the President finds necessary. Each action is to be accompanied by detailed backup information outlining the issues and presenting the findings of the Administration with respect to these issues. The modification of the regulation would take effect unless disapproved by one House of Congress within 15 legislative days.

On June 15, 1976, the President proposed the removal of all price and allocation controls from home heating oil, diesel fuel and other middle distillate refined petroleum products. These proposals, energy actions No. 3 and 4, will become effective on midnight, June 30, 1976, unless a majority of either House adopts a resolution of disapproval. Middle distillate price increases and supply dislocations have a substantial impact on homeowners and small businesses relying on oil for heating and on anyone who depends on commodities delivered by truck or diesel-powered railroad. Therefore, to assist in analyzing the administration's justification for removal of controls on these vital petroleum products, I have asked the staff of the Senate Interior Committee to assemble the key technical documents relating to these proposals and to reprint them for the use and information of Members of the Senate.

HENRY M. JACKSON, Chairman.

(III)