S.395 (as passed by Congress and signed by the President into law)
One Hundred Fourth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the fourth day of January, one thousand nine hundred and ninety-five
An Act
To authorize and direct the Secretary of Energy to sell the Alaska
Power Administration, and to authorize the export of Alaska North
Slope crude oil, and for other purposes.
[Italic->] Be it enacted by the Senate and House of
Representatives of the United States of America in Congress
assembled, [<-Italic]
TITLE I--ALASKA POWER ADMINISTRATION ASSET SALE AND TERMINATION
SEC. 101. SHORT TITLE.
This title may be cited as the `Alaska Power Administration Asset
Sale and Termination Act'.
SEC. 102. DEFINITIONS.
For purposes of this title:
(1) The term `Eklutna' means the Eklutna Hydroelectric
Project and related assets as described in section 4 and
Exhibit A of the Eklutna Purchase Agreement.
(2) The term `Eklutna Purchase Agreement' means the August 2,
1989, Eklutna Purchase Agreement between the Alaska Power
Administration of the Department of Energy and the Eklutna
Purchasers, together with any amendments thereto adopted before
the enactment of this section.
(3) The term `Eklutna Purchasers' means the Municipality of
Anchorage doing business as Municipal Light and Power, the
Chugach Electric Association, Inc. and the Matanuska Electric
Association, Inc.
(4) The term `Snettisham' means the Snettisham Hydroelectric
Project and related assets as described in section 4 and
Exhibit A of the Snettisham Purchase Agreement.
(5) The term `Snettisham Purchase Agreement' means the
February 10, 1989, Snettisham Purchase Agreement between the
Alaska Power Administration of the Department of Energy and the
Alaska Power Authority and its successors in interest, together
with any amendments thereto adopted before the enactment of
this section.
(6) The term `Snettisham Purchaser' means the Alaska
Industrial Development and Export Authority or a successor
State agency or authority.
(a) SALE OF EKLUTNA- The Secretary of Energy is authorized and
directed to sell Eklutna to the Eklutna Purchasers in accordance
with the terms of this Act and the Eklutna Purchase Agreement.
(b) SALE OF SNETTISHAM- The Secretary of Energy is authorized and
directed to sell Snettisham to the Snettisham Purchaser in
accordance with the terms of this Act and the Snettisham Purchase
Agreement.
(c) COOPERATION OF OTHER AGENCIES- The heads of other Federal
departments, agencies, and instrumentalities of the United States
shall assist the Secretary of Energy in implementing the sales and
conveyances authorized and directed by this title.
(d) PROCEEDS- Proceeds from the sales required by this title
shall be deposited in the Treasury of the United States to the
credit of miscellaneous receipts.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as may be necessary to prepare, survey, and
acquire Eklutna and Snettisham for sale and conveyance. Such
preparations and acquisitions shall provide sufficient title to
ensure the beneficial use, enjoyment, and occupancy by the
purchasers.
(f) CONTRIBUTED FUNDS- Notwithstanding any other provision of
law, the Alaska Power Administration is authorized to receive,
administer, and expend such contributed funds as may be provided by
the Eklutna Purchasers or customers or the Snettisham Purchaser or
customers for the purposes of upgrading, improving, maintaining, or
administering Eklutna or Snettisham. Upon the termination of the
Alaska Power Administration under section 104(f), the Secretary of
Energy shall administer and expend any remaining balances of such
contributed funds for the purposes intended by the contributors.
SEC. 104. EXEMPTION AND OTHER PROVISIONS.
(a) FEDERAL POWER ACT- (1) After the sales authorized by this Act
occur, Eklutna and Snettisham, including future modifications,
shall continue to be exempt from the requirements of Part I of the
Federal Power Act (16 U.S.C. 791a et seq.), except as provided in
subsection (b).
(2) The exemption provided by paragraph (1) shall not affect the
Memorandum of Agreement entered into among the State of Alaska, the
Eklutna Purchasers, the Alaska Energy Authority, and Federal fish
and wildlife agencies regarding the protection, mitigation of,
damages to, and enhancement of fish and wildlife, dated August 7,
1991, which remains in full force and effect.
(3) Nothing in this title or the Federal Power Act preempts the
State of Alaska from carrying out the responsibilities and
authorities of the Memorandum of Agreement.
(b) SUBSEQUENT TRANSFERS- Except for subsequent assignment of
interest in Eklutna by the Eklutna Purchasers to the Alaska
Electric Generation and Transmission Cooperative Inc. pursuant to
section 19 of the Eklutna Purchase Agreement, upon any subsequent
sale or transfer of any portion of Eklutna or Snettisham from the
Eklutna Purchasers or the Snettisham Purchaser to any other person,
the exemption set forth in paragraph (1) of subsection (a) of this
section shall cease to apply to such portion.
(c) REVIEW- (1) The United States District Court for the District
of Alaska shall have jurisdiction to review decisions made under
the Memorandum of Agreement and to enforce the provisions of the
Memorandum of Agreement, including the remedy of specific
performance.
(2) An action seeking review of a Fish and Wildlife Program
(`Program') of the Governor of Alaska under the Memorandum of
Agreement or challenging actions of any of the parties to the
Memorandum of Agreement prior to the adoption of the Program shall
be brought not later than 90 days after the date on which the
Program is adopted by the Governor of Alaska, or be barred.
(3) An action seeking review of implementation of the Program
shall be brought not later than 90 days after the challenged act
implementing the Program, or be barred.
(d) EKLUTNA LANDS- With respect to Eklutna lands described in
Exhibit A of the Eklutna Purchase Agreement:
(1) The Secretary of the Interior shall issue rights-of-way
to the Alaska Power Administration for subsequent reassignment
to the Eklutna Purchasers--
(A) at no cost to the Eklutna Purchasers;
(B) to remain effective for a period equal to the life of
Eklutna as extended by improvements, repairs, renewals, or
replacements; and
(C) sufficient for the operation of, maintenance of,
repair to, and replacement of, and access to, Eklutna
facilities located on military lands and lands managed by
the Bureau of Land Management, including lands selected by
the State of Alaska.
(2) Fee title to lands at Anchorage Substation shall be
transferred to Eklutna Purchasers at no additional cost if the
Secretary of the Interior determines that pending claims to,
and selections of, those lands are invalid or relinquished.
(3) With respect to the Eklutna lands identified in paragraph
1 of Exhibit A of the Eklutna Purchase Agreement, the State of
Alaska may select, and the Secretary of the Interior shall
convey to the State, improved lands under the selection
entitlements in section 6 of the Act of July 7, 1958 (commonly
referred to as the Alaska Statehood Act, Public Law 85-508; 72
Stat. 339), and the North Anchorage Land Agreement dated
January 31, 1983. This conveyance shall be subject to the
rights-of-way provided to the Eklutna Purchasers under
paragraph (1).
(e) SNETTISHAM LANDS- With respect to the Snettisham lands
identified in paragraph 1 of Exhibit A of the Snettisham Purchase
Agreement and Public Land Order No. 5108, the State of Alaska may
select, and the Secretary of the Interior shall convey to the State
of Alaska, improved lands under the selection entitlements in
section 6 of the Act of July 7, 1958 (commonly referred to as the
Alaska Statehood Act, Public Law 85-508; 72 Stat. 339).
(f) TERMINATION OF ALASKA POWER ADMINISTRATION- Not later than
one year after both of the sales authorized in section 103 have
occurred, as measured by the Transaction Dates stipulated in the
Purchase Agreements, the Secretary of Energy shall--
(1) complete the business of, and close out, the Alaska Power
Administration;
(2) submit to Congress a report documenting the sales; and
(3) return unobligated balances of funds appropriated for the
Alaska Power Administration to the Treasury of the United States.
(g) REPEALS- (1) The Act of July 31, 1950 (64 Stat. 382) is
repealed effective on the date that Eklutna is conveyed to the
Eklutna Purchasers.
(2) Section 204 of the Flood Control Act of 1962 (76 Stat. 1193)
is repealed effective on the date that Snettisham is conveyed to
the Snettisham Purchaser.
(3) The Act of August 9, 1955, concerning water resources
investigation in Alaska (69 Stat. 618), is repealed.
(h) DOE ORGANIZATION ACT- As of the later of the two dates
determined in paragraphs (1) and (2) of subsection (g), section
302(a) of the Department of Energy Organization Act (42 U.S.C.
7152(a)) is amended--
(1) in paragraph (1)--
(A) by striking subparagraph (C); and
(B) by redesignating subparagraphs (D), (E), and (F) as
subparagraphs (C), (D), and (E) respectively; and
(2) in paragraph (2) by striking out `and the Alaska Power
Administration' and by inserting `and' after `Southwestern
Power Administration,'.
(i) DISPOSAL- The sales of Eklutna and Snettisham under this
title are not considered disposal of Federal surplus property under
the Federal Property and Administrative Services Act of 1949 (40
U.S.C. 484) or the Act of October 3, 1944, popularly referred to as
the `Surplus Property Act of 1944' (50 U.S.C. App. 1622).
SEC. 105. OTHER FEDERAL HYDROELECTRIC PROJECTS.
The provisions of this title regarding the sale of the Alaska
Power Administration's hydroelectric projects under section 103 and
the exemption of these projects from Part I of the Federal Power
Act under section 104 do not apply to other Federal hydroelectric
projects.
TITLE II--EXPORTS OF ALASKAN NORTH SLOPE OIL
SEC. 201. EXPORTS OF ALASKAN NORTH SLOPE OIL.
Section 28 of the Mineral Leasing Act (30 U.S.C. 185) is amended
by amending subsection (s) to read as follows:
`EXPORTS OF ALASKAN NORTH SLOPE OIL
`(s)(1) Subject to paragraphs (2) through (6) of this subsection
and notwithstanding any other provision of this Act or any other
provision of law (including any regulation) applicable to the
export of oil transported by pipeline over right-of-way granted
pursuant to section 203 of the Trans-Alaska Pipeline Authorization
Act (43 U.S.C. 1652), such oil may be exported unless the President
finds that exportation of this oil is not in the national interest.
The President shall make his national interest determination within
five months of the date of enactment of this subsection. In
evaluating whether exports of this oil are in the national
interest, the President shall at a minimum consider--
`(A) whether exports of this oil would diminish the total
quantity or quality of petroleum available to the United States;
`(B) the results of an appropriate environmental review,
including consideration of appropriate measures to mitigate any
potential adverse effects of exports of this oil on the
environment, which shall be completed within four months of the
date of the enactment of this subsection; and
`(C) whether exports of this oil are likely to cause
sustained material oil supply shortages or sustained oil prices
significantly above world market levels that would cause
sustained material adverse employment effects in the United
States or that would cause substantial harm to consumers,
including noncontiguous States and Pacific territories.
If the President determines that exports of this oil are in the
national interest, he may impose such terms and conditions (other
than a volume limitation) as are necessary or appropriate to ensure
that such exports are consistent with the national interest.
`(2) Except in the case of oil exported to a country with which
the United States entered into a bilateral international oil supply
agreement before November 26, 1979, or to a country pursuant to the
International Emergency Oil Sharing Plan of the International
Energy Agency, any oil transported by pipeline over right-of-way
granted pursuant to section 203 of the Trans-Alaska Pipeline
Authorization Act (43 U.S.C. 1652) shall, when exported, be
transported by a vessel documented under the laws of the United
States and owned by a citizen of the United States (as determined
in accordance with section 2 of the Shipping Act, 1916 (46 U.S.C.
App. 802)).
`(3) Nothing in this subsection shall restrict the authority of
the President under the Constitution, the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.), the National
Emergencies Act (50 U.S.C. 1601 et seq.), or Part B of title II of
the Energy Policy and Conservation Act (42 U.S.C. 6271-76) to
prohibit exports.
`(4) The Secretary of Commerce shall issue any rules necessary
for implementation of the President's national interest
determination, including any licensing requirements and conditions,
within 30 days of the date of such determination by the President.
The Secretary of Commerce shall consult with the Secretary of
Energy in administering the provisions of this subsection.
`(5) If the Secretary of Commerce finds that exporting oil under
authority of this subsection has caused sustained material oil
supply shortages or sustained oil prices significantly above world
market levels and further finds that these supply shortages or
price increases have caused or are likely to cause sustained
material adverse employment effects in the United States, the
Secretary of Commerce, in consultation with the Secretary of
Energy, shall recommend, and the President may take, appropriate
action concerning exports of this oil, which may include modifying
or revoking authority to export such oil.
`(6) Administrative action under this subsection is not subject
to sections 551 and 553 through 559 of title 5, United States Code.'.
SEC. 202. GAO REPORT.
(a) REVIEW- The Comptroller General of the United States shall
conduct a review of energy production in California and Alaska and
the effects of Alaskan North Slope oil exports, if any, on
consumers, independent refiners, and shipbuilding and ship repair
yards on the West Coast and in Hawaii. The Comptroller General
shall commence this review three years after the date of enactment
of this Act and, within twelve months after commencing the review,
shall provide a report to the Committee on Energy and Natural
Resources of the Senate and the Committee on Resources and the
Committee on Commerce of the House of Representatives.
(b) CONTENTS OF REPORT- The report shall contain a statement of
the principal findings of the review and recommendations for
Congress and the President to address job loss in the shipbuilding
and ship repair industry on the West Coast, as well as adverse
impacts on consumers and refiners on the West Coast and in Hawaii,
that the Comptroller General attributes to Alaska North Slope oil
exports.
SEC. 203. GRANT AUTHORITY.
(a) IN GENERAL- The Secretary of Transportation (`Secretary') may
make grants to the Multnomah County Tax Supervising and
Conservation Commission of Multnomah County, Oregon (`Commission')
in accordance with this section, not to exceed the amount
determined in subsection (b)(2).
(b) FINDING AND DETERMINATION- Before making any grant under this
section not earlier than one year after exports of Alaskan North
Slope oil commence pursuant to section 201, the Secretary shall--
(1) find on the basis of substantial evidence that such
exports are directly or indirectly a substantial contributing
factor to the need to levy port district ad valorem taxes under
Oregon Revised Statutes section 294.381; and
(2) determine the amount of such levy attributable to the
export of Alaskan North Slope oil.
(c) AGREEMENT- Before receiving a grant under this section for
the relief of port district ad valorem taxes which would otherwise
be levied under Oregon Revised Statutes section 294.381, the
Commission shall enter into an agreement with the Secretary to--
(1) establish a segregated account for the receipt of grant
funds;
(2) deposit and keep grant funds in that account;
(3) use the funds solely for the purpose of payments in
accordance with this subsection, as determined pursuant to
Oregon Revised Statutes sections 294.305-565, and computed in
accordance with generally accepted accounting principles; and
(4) terminate such account at the conclusion of payments
subject to this subsection and to transfer any amounts,
including interest, remaining in such account to the Port of
Portland for use in transportation improvements to enhance
freight mobility.
(d) REPORT- Within 60 days of issuing a grant under this section,
the Secretary shall submit any finding and determination made under
subsection (b), including supporting information, to the Committee
on Energy and Natural Resources of the Senate and the Committee on
Transportation and Infrastructure of the House of Representatives.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated to the Secretary of Transportation to carry out
subsection (a), $15,000,000 for fiscal year 1997, to remain
available until October 1, 2003.
TITLE III--OUTER CONTINENTAL SHELF DEEP WATER ROYALTY RELIEF
SEC. 301. SHORT TITLE.
This title may be referred to as the `Outer Continental Shelf
Deep Water Royalty Relief Act'.
Section 8(a) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(a)(3)), is amended--
(1) by designating the provisions of paragraph (3) as
subparagraph (A) of such paragraph (3); and
(2) by inserting after subparagraph (A), as so designated,
the following:
`(B) In the Western and Central Planning Areas of the Gulf of
Mexico and the portion of the Eastern Planning Area of the Gulf of
Mexico encompassing whole lease blocks lying west of 87 degrees, 30
minutes West longitude, the Secretary may, in order to--
`(i) promote development or increased production on producing
or non-producing leases; or
`(ii) encourage production of marginal resources on producing
or non-producing leases;
through primary, secondary, or tertiary recovery means, reduce
or eliminate any royalty or net profit share set forth in the
lease(s). With the lessee's consent, the Secretary may make
other modifications to the royalty or net profit share terms of
the lease in order to achieve these purposes.
`(C)(i) Notwithstanding the provisions of this Act other than
this subparagraph, with respect to any lease or unit in existence
on the date of enactment of the Outer Continental Shelf Deep Water
Royalty Relief Act meeting the requirements of this subparagraph,
no royalty payments shall be due on new production, as defined in
clause (iv) of this subparagraph, from any lease or unit located in
water depths of 200 meters or greater in the Western and Central
Planning Areas of the Gulf of Mexico, including that portion of the
Eastern Planning Area of the Gulf of Mexico encompassing whole
lease blocks lying west of 87 degrees, 30 minutes West longitude,
until such volume of production as determined pursuant to clause
(ii) has been produced by the lessee.
`(ii) Upon submission of a complete application by the lessee,
the Secretary shall determine within 180 days of such application
whether new production from such lease or unit would be economic in
the absence of the relief from the requirement to pay royalties
provided for by clause (i) of this subparagraph. In making such
determination, the Secretary shall consider the increased
technological and financial risk of deep water development and all
costs associated with exploring, developing, and producing from the
lease. The lessee shall provide information required for a complete
application to the Secretary prior to such determination. The
Secretary shall clearly define the information required for a
complete application under this section. Such application may be
made on the basis of an individual lease or unit. If the Secretary
determines that such new production would be economic in the
absence of the relief from the requirement to pay royalties
provided for by clause (i) of this subparagraph, the provisions of
clause (i) shall not apply to such production. If the Secretary
determines that such new production would not be economic in the
absence of the relief from the requirement to pay royalties
provided for by clause (i), the Secretary must determine the volume
of production from the lease or unit on which no royalties would be
due in order to make such new production economically viable;
except that for new production as defined in clause (iv)(I), in no
case will that volume be less than 17.5 million barrels of oil
equivalent in water depths of 200 to 400 meters, 52.5 million
barrels of oil equivalent in 400-800 meters of water, and 87.5
million barrels of oil equivalent in water depths greater than 800
meters. Redetermination of the applicability of clause (i) shall be
undertaken by the Secretary when requested by the lessee prior to
the commencement of the new production and upon significant change
in the factors upon which the original determination was made. The
Secretary shall make such redetermination within 120 days of
submission of a complete application. The Secretary may extend the
time period for making any determination or redetermination under
this clause for 30 days, or longer if agreed to by the applicant,
if circumstances so warrant. The lessee shall be notified in
writing of any determination or redetermination and the reasons for
and assumptions used for such determination. Any determination or
redetermination under this clause shall be a final agency action.
The Secretary's determination or redetermination shall be
judicially reviewable under section 10(a) of the Administrative
Procedures Act (5 U.S.C. 702), only for actions filed within 30
days of the Secretary's determination or redetermination.
`(iii) In the event that the Secretary fails to make the
determination or redetermination called for in clause (ii) upon
application by the lessee within the time period, together with any
extension thereof, provided for by clause (ii), no royalty payments
shall be due on new production as follows:
`(I) For new production, as defined in clause (iv)(I) of this
subparagraph, no royalty shall be due on such production
according to the schedule of minimum volumes specified in
clause (ii) of this subparagraph.
`(II) For new production, as defined in clause (iv)(II) of
this subparagraph, no royalty shall be due on such production
for one year following the start of such production.
`(iv) For purposes of this subparagraph, the term `new
production' is--
`(I) any production from a lease from which no royalties are
due on production, other than test production, prior to the
date of enactment of the Outer Continental Shelf Deep Water
Royalty Relief Act; or
`(II) any production resulting from lease development
activities pursuant to a Development Operations Coordination
Document, or supplement thereto that would expand production
significantly beyond the level anticipated in the Development
Operations Coordination Document, approved by the Secretary
after the date of enactment of the Outer Continental Shelf Deep
Water Royalty Relief Act.
`(v) During the production of volumes determined pursuant to
clauses (ii) or (iii) of this subparagraph, in any year during
which the arithmetic average of the closing prices on the New York
Mercantile Exchange for light sweet crude oil exceeds $28.00 per
barrel, any production of oil will be subject to royalties at the
lease stipulated royalty rate. Any production subject to this
clause shall be counted toward the production volume determined
pursuant to clause (ii) or (iii). Estimated royalty payments will
be made if such average of the closing prices for the previous year
exceeds $28.00. After the end of the calendar year, when the new
average price can be calculated, lessees will pay any royalties
due, with interest but without penalty, or can apply for a refund,
with interest, of any overpayment.
`(vi) During the production of volumes determined pursuant to
clause (ii) or (iii) of this subparagraph, in any year during which
the arithmetic average of the closing prices on the New York
Mercantile Exchange for natural gas exceeds $3.50 per million
British thermal units, any production of natural gas will be
subject to royalties at the lease stipulated royalty rate. Any
production subject to this clause shall be counted toward the
production volume determined pursuant to clauses (ii) or (iii).
Estimated royalty payments will be made if such average of the
closing prices for the previous year exceeds $3.50. After the end
of the calendar year, when the new average price can be calculated,
lessees will pay any royalties due, with interest but without
penalty, or can apply for a refund, with interest, of any
overpayment.
`(vii) The prices referred to in clauses (v) and (vi) of this
subparagraph shall be changed during any calendar year after 1994
by the percentage, if any, by which the implicit price deflator for
the gross domestic product changed during the preceding calendar
year.'.
SEC. 303. NEW LEASES.
Section 8(a)(1) of the Outer Continental Shelf Lands Act, as
amended (43 U.S.C. 1337(a)(1)) is amended--
(1) by redesignating subparagraph (H) as subparagraph (I);
(2) by striking `or' at the end of subparagraph (G); and
(3) by inserting after subparagraph (G) the following new
subparagraph:
`(H) cash bonus bid with royalty at no less than 12 and 1/2
per centum fixed by the Secretary in amount or value of
production saved, removed, or sold, and with suspension of
royalties for a period, volume, or value of production
determined by the Secretary, which suspensions may vary based
on the price of production from the lease; or'.
SEC. 304. LEASE SALES.
For all tracts located in water depths of 200 meters or greater
in the Western and Central Planning Area of the Gulf of Mexico,
including that portion of the Eastern Planning Area of the Gulf of
Mexico encompassing whole lease blocks lying west of 87 degrees, 30
minutes West longitude, any lease sale within five years of the
date of enactment of this title, shall use the bidding system
authorized in section 8(a)(1)(H) of the Outer Continental Shelf
Lands Act, as amended by this title, except that the suspension of
royalties shall be set at a volume of not less than the following:
(1) 17.5 million barrels of oil equivalent for leases in
water depths of 200 to 400 meters;
(2) 52.5 million barrels of oil equivalent for leases in 400
to 800 meters of water; and
(3) 87.5 million barrels of oil equivalent for leases in
water depths greater than 800 meters.
SEC. 305. REGULATIONS.
The Secretary shall promulgate such rules and regulations as are
necessary to implement the provisions of this title within 180 days
after the enactment of this Act.
SEC. 306. SAVINGS CLAUSE.
Nothing in this title shall be construed to affect any offshore
pre-leasing, leasing, or development moratorium, including any
moratorium applicable to the Eastern Planning Area of the Gulf of
Mexico located off the Gulf Coast of Florida.
TITLE IV--MISCELLANEOUS
SEC. 401. EMERGENCY RESPONSE PLAN.
(a) IN GENERAL- Within 15 months after the date of the enactment
of this Act, the Commandant of the Coast Guard shall submit a plan
to Congress on the most cost-effective means of implementing an
international private-sector tug-of-opportunity system, including a
coordinated system of communication, using existing towing vessels
to provide timely emergency response to a vessel in distress
transiting the waters within the boundaries of the Olympic Coast
National Marine Sanctuary or the Strait of Juan de Fuca.
(b) COORDINATION- In carrying out this section, the Commandant,
in consultation with the Secretaries of State and Transportation,
shall coordinate with the Canadian Government and the United States
and Canadian maritime industries.
(c) ACCESS TO INFORMATION- If necessary, the Commandant shall
allow United States nonprofit maritime organizations access to
United States Coast Guard radar imagery and transponder information
to identify and deploy towing vessels for the purpose of
facilitating emergency response.
(d) TOWING VESSEL DEFINED- For the purpose of this section, the
term `towing vessel' has the meaning given that term by section
2101(40) of title 46, United States Code.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.