Fuel Supply Improvement Act of 2005 - Prescribes guidelines to expedite federal permitting procedures for construction or expansion of a domestic petroleum refining facility.
Applies such expedited permit procedures exclusively to permits under specified environmental protection statutes.
Directs the Secretary of Energy, upon applicant request, to provide direct legal representation to a refining facility applicant to defend against a lawsuit regarding the permit approval procedure, or facility construction or expansion, if the Secretary believes the lawsuit is without merit, is brought solely to delay facility completion, or will have the effect of delaying facility completion in a period when U.S. domestic refining capability is insufficient.
Instructs the Secretary to establish an office of regulatory assistance whose sole purpose is to assist applicants with permit applications, planning, and otherwise pursuing the construction or expansion of a domestic petroleum refining facility.
Grants the Secretary contracting authority with sponsors of new large-sized petroleum refining facilities.
Establishes in the Department of Energy the Refinery Standby Support Program Account and the Refinery Standby Support Grant Account to cover loan costs and costs resulting from certain construction delays.
Amends the Clean Air Act to direct the Administrator of the Environmental Protection Agency to provide within new source review regulations that equipment replacement shall be considered routine maintenance and repair if it: (1) does not increase actual emissions of any air pollutant by more than 5%; and (2) does not increase actual emissions of any air pollutant by more than 40 tons per year.
Directs the Secretary of the Interior to charge a discounted price in any sale to a qualified small refinery of crude oil obtained by the United States as royalty-in-kind.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3836 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3836
To expedite the construction of new refining capacity in the United
States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 20, 2005
Mr. Shadegg (for himself, Mr. Barrett of South Carolina, Mr. Bishop of
Utah, Mrs. Blackburn, Mr. Brown of South Carolina, Mr. Cantor, Mr.
Chabot, Mr. Chocola, Mr. Doolittle, Mr. Feeney, Mr. Flake, Ms. Foxx,
Mr. Franks of Arizona, Mr. Garrett of New Jersey, Mr. Gingrey, Mr.
Gohmert, Mr. Goode, Ms. Hart, Mr. Hensarling, Mr. Istook, Mr. Sam
Johnson of Texas, Mr. Kennedy of Minnesota, Mr. Kirk, Mr. McHenry, Mrs.
Musgrave, Mr. Pence, Mr. Pitts, Mr. Sensenbrenner, Mr. Sullivan, Mr.
Wamp, Mr. Westmoreland, Mr. Wicker, and Mr. Wilson of South Carolina)
introduced the following bill; which was referred to the Committee on
Energy and Commerce, and in addition to the Committees on Resources,
and Transportation and Infrastructure, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To expedite the construction of new refining capacity in the United
States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fuel Supply Improvement Act of
2005''.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Hurricane Katrina, which struck the Gulf Coast and New
Orleans, Louisiana, on August 29, 2005, substantially disrupted
petroleum production, refining, and pipeline systems in the
region, impacting energy prices and supply nationwide.
(2) In the immediate aftermath of Katrina, United States
refining capacity was reduced by more than 2,000,000 barrels
per day. While some capacity was restored within several days,
4 refineries with a total capacity of 879,000 barrels per day,
roughly 5 percent of pre-Katrina capacity, remain offline.
These refineries sustained major damage and will not reopen for
an extended period of time.
(3) Within a week of the hurricane's landfall, the national
average retail price for motor vehicle gasoline rose by 46
cents to $3.069 per gallon. Prices of other refined fuels also
rose quickly in response to the hurricane.
(4) Before Katrina, United States refining capacity was
already significantly strained, with industry average
utilization rates of 95 percent of capacity or higher.
(5) No new refinery has been constructed in the United
States since 1976. There are 148 operating refineries in the
United States, down from 324 in 1981. Total capacity at
operating refineries is 17,000,000 barrels per day, while total
United States demand averages nearly 21,000,000 barrels per
day. This growing gap is met by an increasing amount of imports
of refined products from foreign sources.
(6) A growing reliance on foreign sources of refined
petroleum products impairs our national security interests.
(7) It serves the national interest to increase refinery
capacity for gasoline, heating oil, diesel fuel, and jet fuel
wherever located within the United States, to bring more supply
to the markets for use by the American people. Production and
use of refined petroleum products has a significant impact on
interstate commerce.
(8) Refiners are subject to significant environmental and
other regulations and face several new Clean Air Act
requirements over the next decade. New Clean Air Act
requirements may benefit the environment but will also require
substantial capital investment and additional government
permits.
(9) More regulatory certainty for refinery owners is needed
to stimulate investment in increased refinery capacity.
Required procedures for regulatory approvals need to be
streamlined to ensure that increased refinery capacity can be
developed and operated in a safe, timely, and cost-effective
manner.
SEC. 3. EXPEDITED FEDERAL PERMITTING.
(a) In General.--Except as provided in subsection (b), an
application for a permit under a law described in subsection (c) to
construct or expand a petroleum refining facility in the United States
shall be approved not later than 90 days after a complete application
is received. If such permit is not approved within 90 days, the
Secretary of Energy, in consultation with the Office of Regulatory
Assistance, shall issue the permit. The Secretary of Energy shall
coordinate Federal implementation of this subsection.
(b) Presidential Determination.--A permit shall not be approved
under subsection (a) if the President determines that the benefits to
the United States of increased refinery capacity that would be provided
by the proposed construction or expansion are outweighed by the costs
of approving the permit. A decision by the President to not make a
determination under this subsection shall not be subject to judicial
review.
(c) Covered Laws.--This section applies only to permits under the
Clean Air Act, the Federal Water Pollution Control Act, the Safe
Drinking Water Act, the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, the Solid Waste Disposal Act,
the Toxic Substances Control Act, the National Historic Preservation
Act, and the National Environmental Policy Act of 1969.
(d) Applicability.--This section shall apply to any refinery repair
or reconstruction at an existing refinery undertaken in the area
affected by Hurricane Katrina and undertaken as a result of Hurricane
Katrina. This section shall not apply during a period with respect to
which the Secretary of Energy has certified to Congress in writing that
United States domestic petroleum refining capacity is sufficient to
serve the needs of the United States, accounting for the possibility of
natural disasters, terrorist attacks, fires, routine maintenance, the
effects of unique fuel blends, or other potential events.
SEC. 4. LITIGATION.
(a) Direct Legal Representation.--At the request of the applicant,
the Secretary of Energy shall provide direct legal representation for a
person who has filed an application described in section 3(a) for any
lawsuit brought against such person or the Federal Government under
such a law with respect to the permit approval procedure or
construction or expansion of the facility to which the application
relates, if the Secretary believes the lawsuit lacks merit, is brought
solely to delay the completion of the facility, or will have the effect
of delaying the completion of the facility in a period when United
States domestic refining capacity is insufficient.
(b) Attorneys' Fees.--Any party in an action with respect to the
approval of an application described in section 3(a), or the
construction or expansion of the facility to which the application
relates, shall be awarded attorneys' fees in proportion to the amount
of the original claim that is awarded or denied by the court.
SEC. 5. OFFICE OF REGULATORY ASSISTANCE.
The Secretary of Energy shall establish an office whose sole
purpose is to assist applicants in developing permit applications,
planning, and otherwise pursuing the construction or expansion of a
petroleum refining facility in the United States. This assistance shall
include--
(1) serving as an advocate for the applicant to the
permitting agencies;
(2) ensuring that permitting agencies are responsive to
applicants;
(3) ensuring that permits are issued by statutory
deadlines; and
(4) consulting with the Secretary of Energy to offer advice
relating to issuing a permit for an agency that has not met
deadlines contained in section 3(a).
SEC. 6. STANDBY SUPPORT FOR CERTAIN PETROLEUM REFINING FACILITY DELAYS.
(a) Contract Authority.--
(1) In general.--The Secretary of Energy may enter into
contracts under this section with sponsors of 6 new petroleum
refining facilities, each with an output of at least 150,000
barrels per day, in accordance with paragraph (2). The
Secretary shall give preference to new refineries that will
increase the geographic diversity of existing United States
domestic refining capacity.
(2) Requirement for contracts.--
(A) Definition of loan cost.--In this paragraph,
the term ``loan cost'' has the meaning given the term
``cost of a loan guarantee'' under section 502(5)(C) of
the Federal Credit Reform Act of 1990 (2 U.S.C.
661a(5)(C)).
(B) Establishment of accounts.--There is
established in the Department of Energy 2 separate
accounts, which shall be known as the--
(i) ``Refinery Standby Support Program
Account''; and
(ii) ``Refinery Standby Support Grant
Account''.
(C) Requirement.--The Secretary shall not enter
into a contract under this section unless the Secretary
deposits--
(i) in the Refinery Standby Support Program
Account established under subparagraph (B),
funds appropriated to the Secretary in advance
of the contract or a combination of
appropriated funds and loan guarantee fees that
are in an amount sufficient to cover the loan
costs described in subsection (c)(5)(A); and
(ii) in the Refinery Standby Support Grant
Account established under subparagraph (B),
funds appropriated to the Secretary in advance
of the contract, paid to the Secretary by the
sponsor of the petroleum refining facility, or
a combination of appropriations and payments
that are in an amount sufficient cover the
costs described in subsection (c)(5)(B).
(b) Covered Delays.--
(1) Inclusions.--Under each contract authorized by this
section, the Secretary shall pay the costs specified in
subsection (c), using funds appropriated or collected for the
covered costs, if full operation of the petroleum refining
facility is delayed by--
(A) the failure of the appropriate Federal agency
to comply with schedules for review and approval of
inspections, tests, analyses, and acceptance criteria;
or
(B) litigation that delays the commencement of full
operations of the petroleum refining facility.
(2) Exclusions.--The Secretary may not enter into any
contract under this section that would obligate the Secretary
to pay any costs resulting from--
(A) the failure of the sponsor to take any action
required by law or regulation;
(B) events within the control of the sponsor; or
(C) normal business risks.
(c) Covered Costs.--
(1) In general.--Subject to paragraphs (2), (3), and (4),
the costs that shall be paid by the Secretary pursuant to a
contract entered into under this section are the costs that
result from a delay covered by the contract.
(2) Initial 2 facilities.--In the case of the first 2
facilities on which construction is commenced, the Secretary
shall pay--
(A) 100 percent of the covered costs of delay; but
(B) not more than $500,000,000 per contract.
(3) Subsequent 4 facilities.--In the case of the next 4
facilities on which construction is commenced, the Secretary
shall pay--
(A) 50 percent of the covered costs of delay that
occur after the initial 180-day period of covered
delay; but
(B) not more than $250,000,000 per contract.
(4) Conditions on payment of certain covered costs.--
(A) In general.--The obligation of the Secretary to
pay the covered costs described in subparagraph (B) of
paragraph (5) is subject to the Secretary receiving
from appropriations or payments from other non-Federal
sources amounts sufficient to pay the covered costs.
(B) Non-federal sources.--The Secretary may receive
and accept payments from any non-Federal source, which
shall be made available without further appropriation
for the payment of the covered costs.
(5) Types of covered costs.--Subject to paragraphs (2),
(3), and (4), the contract entered into under this section for
a petroleum refining facility shall include as covered costs
those costs that result from a delay during construction and in
gaining approval for full operation, including--
(A) principal or interest on any debt obligation of
a petroleum refining facility owned by a non-Federal
entity; and
(B) the incremental difference between--
(i) the fair market price of refined
petroleum products purchased to meet the
contractual supply agreements that would have
been met by the petroleum refining facility but
for the delay; and
(ii) the contractual price of refined
petroleum products from the petroleum refining
facility subject to the delay.
(d) Requirements.--Any contract between a sponsor and the Secretary
covering a petroleum refining facility under this section shall require
the sponsor to use due diligence to shorten, and to end, the delay
covered by the contract.
(e) Reports.--For each petroleum refining facility that is covered
by a contract under this section, the Secretary shall submit to
Congress quarterly reports summarizing the status of regulatory and
other actions associated with the petroleum refining facility.
(f) Regulations.--
(1) In general.--Subject to paragraphs (2) and (3), the
Secretary shall issue such regulations as are necessary to
carry out this section.
(2) Interim final rulemaking.--Not later than 270 days
after the date of enactment of this Act, the Secretary shall
issue for public comment an interim final rule regulating
contracts authorized by this section.
(3) Notice of final rulemaking.--Not later than 1 year
after the date of enactment of this Act, the Secretary shall
issue a notice of final rulemaking regulating the contracts.
(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 7. NEW SOURCE REVIEW UNDER THE CLEAN AIR ACT.
Part A of title I of the Clean Air Act (42 U.S.C. 7401 and
following) is amended by adding the following new section at the end
thereof:
``SEC. 132 NEW SOURCE REVIEW.
``In promulgating regulations respecting new source review under
this Act, the Administrator shall include in such regulations
provisions providing that routine maintenance and repair shall not
constitute a modification of an existing source requiring compliance
with new source review requirements. Such provisions shall provide that
equipment replacement shall be considered routine maintenance and
repair if it meets each of the following requirements:
``(1) It does not increase actual emissions of any air
pollutant by more than 5 percent.
``(2) It does not increase actual emissions of any air
pollutant by more than 40 tons per year.
Notwithstanding any other provision of this Act, no State may include
in any State implementation plan any provisions regarding new source
review that are more stringent than those contained in the regulations
of the Administrator under this section.''.
SEC. 8. DISCOUNTED SALES OF ROYALTY-IN-KIND OIL TO QUALIFIED SMALL
REFINERIES.
(a) Requirement.--The Secretary of the Interior shall issue and
begin implementing regulations by not later than 60 days after the date
of the enactment of this Act, under which the Secretary shall charge a
discounted price in any sale to a qualified small refinery of crude oil
obtained by the United States as royalty-in-kind.
(b) Amount of Discount.--The regulations shall provide that the
amount of any discount applied pursuant to this section in any sale of
crude oil to a qualified small refinery--
(1) shall reflect the actual costs of transporting such oil
from the point of origin to the qualified small refinery; and
(2) shall not exceed $4.50 per barrel of oil sold.
(c) Termination of Discount.--This section and any regulations
issued under this section shall not apply on and after any date on
which the Secretary of Energy determines that United States domestic
refining capacity is sufficient.
(d) Qualified Small Refinery.--In this section the term ``qualified
small refinery'' means a refinery of a small business refiner (as that
term is defined in section 45H(c)(1) of the Internal Revenue Code of
1986) that demonstrates to the Secretary of the Interior that it had
unused crude oil processing capacity in 2004.
SEC. 9. CONSTITUTIONAL AUTHORITY.
The Constitutional authority on which this Act rests is the power
of Congress to regulate Commerce among the several States as enumerated
in Article I, Section 8, Clause 3 of the United States Constitution.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Resources, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Resources, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Resources, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Resources, and Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Water Resources and Environment.
Referred to the Subcommittee on Energy and Air Quality.
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