H.R.776
Energy Policy Act of 1992 (Enrolled Bill (Sent to President))
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TITLE XVIII--OIL PIPELINE REGULATORY REFORM
SEC. 1801. OIL PIPELINE RATEMAKING METHODOLOGY.
(a) ESTABLISHMENT- Not later than 1 year after the date of the enactment of this Act , the Federal Energy Regulatory Commission shall issue a final rule which establishes a simplified and generally applicable ratemaking methodology for oil pipelines in accordance with section 1(5) of part I of the Interstate Commerce Act .
(b) EFFECTIVE DATE- The final rule to be issued under subsection (a) may not take effect before the 365th day following the date of the issuance of the rule.
SEC. 1802. STREAMLINING OF COMMISSION PROCEDURES.
(a) RULEMAKING- Not later than 18 months after the date of the enactment of this Act , the Commission shall issue a final rule to streamline procedures of the Commission relating to oil pipeline rates in order to avoid unnecessary regulatory costs and delays.
(b) SCOPE OF RULEMAKING- Issues to be considered in the rulemaking proceeding to be conducted under subsection (a) shall include the following:
(1) Identification of information to be filed with an oil pipeline tariff and the availability to the public of any analysis of such tariff filing performed by the Commission or its staff.
(2) Qualification for standing (including definitions of economic interest) of parties who protest oil pipeline tariff filings or file complaints thereto.
(3) The level of specificity required for a protest or complaint and guidelines for Commission action on the portion of the tariff or rate filing subject to protest or complaint.
(4) An opportunity for the oil pipeline to file a response for the record to an initial protest or complaint.
(5) Identification of specific circumstances under which Commission staff may initiate a protest.
(c) ADDITIONAL PROCEDURAL CHANGES- In conducting the rulemaking proceeding to carry out subsection (a), the Commission shall identify and transmit to Congress any other procedural changes relating to oil pipeline rates which the Commission determines are necessary to avoid unnecessary regulatory costs and delays and for which additional legislative authority may be necessary.
(d) WITHDRAWAL OF TARIFFS AND COMPLAINTS-
(1) WITHDRAWAL OF TARIFFS- If an oil pipeline tariff which is filed under part I of the Interstate Commerce Act and which is subject to investigation is withdrawn--
(A) any proceeding with respect to such tariff shall be terminated;
(B) the previous tariff rate shall be reinstated; and
(C) any amounts collected under the withdrawn tariff rate which are in excess of the previous tariff rate shall be refunded.
(2) WITHDRAWAL OF COMPLAINTS- If a complaint which is filed under section 13 of the Interstate Commerce Act with respect to an oil pipeline tariff is withdrawn, any proceeding with respect to such complaint shall be terminated.
(e) ALTERNATIVE DISPUTE RESOLUTION- To the maximum extent practicable, the Commission shall establish appropriate alternative dispute resolution procedures, including required negotiations and voluntary arbitration, early in an oil pipeline rate proceeding as a method preferable to adjudication in resolving disputes relating to the rate. Any proposed rates derived from implementation of such procedures shall be considered by the Commission on an expedited basis for approval.
SEC. 1803. PROTECTION OF CERTAIN EXISTING RATES.
(a) RATES DEEMED JUST AND REASONABLE- Except as provided in subsection (b)--
(1) any rate in effect for the 365-day period ending on the date of the enactment of this Act shall be deemed to be just and reasonable (within the meaning of section 1(5) of the Interstate Commerce Act ); and
(2) any rate in effect on the 365th day preceding the date of such enactment shall be deemed to be just and reasonable (within the meaning of such section 1(5)) regardless of whether or not, with respect to such rate, a new rate has been filed with the Commission during such 365-day period;
if the rate in effect, as described in paragraph (1) or (2), has not been subject to protest, investigation, or complaint during such 365-day period.
(b) CHANGED CIRCUMSTANCES- No person may file a complaint under section 13 of the Interstate Commerce Act against a rate deemed to be just and reasonable under subsection (a) unless--
(1) evidence is presented to the Commission which establishes that a substantial change has occurred after the date of the enactment of this Act --
(A) in the economic circumstances of the oil pipeline which were a basis for the rate; or
(B) in the nature of the services provided which were a basis for the rate; or
(2) the person filing the complaint was under a contractual prohibition against the filing of a complaint which was in effect on the date of enactment of this Act and had been in effect prior to January 1, 1991, provided that a complaint by a party bound by such prohibition is brought within 30 days after the expiration of such prohibition.
If the Commission determines pursuant to a proceeding instituted as a result of a complaint under section 13 of the Interstate Commerce Act that the rate is not just and reasonable, the rate shall not be deemed to be just and reasonable. Any tariff reduction or refunds that may result as an outcome of such a complaint shall be prospective from the date of the filing of the complaint.
(c) LIMITATION REGARDING UNDULY DISCRIMINATORY OR PREFERENTIAL TARIFFS- Nothing in this section shall prohibit any aggrieved person from filing a complaint under section 13 or section 15(l) of the Interstate Commerce Act challenging any tariff provision as unduly discriminatory or unduly preferential.
SEC. 1804. DEFINITIONS.
For the purposes of this title, the following definitions apply:
(1) COMMISSION- The term `Commission' means the Federal Energy Regulatory Commission and, unless the context requires otherwise, includes the Oil Pipeline Board and any other office or component of the Commission to which the functions and authority vested in the Commission under section 402(b) of the Department of Energy Organization Act (42 U.S.C. 7172(b)) are delegated.
(A) IN GENERAL- Except as provided in subparagraph (B), the term `oil pipeline' means any common carrier (within the meaning of the Interstate Commerce Act ) which transports oil by pipeline subject to the functions and authority vested in the Commission under section 402(b) of the Department of Energy Organization Act (42 U.S.C. 7172(b)).
(B) EXCEPTION- The term `oil pipeline' does not include the Trans-Alaska Pipeline authorized by the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651 et seq.) or any pipeline delivering oil directly or indirectly to the Trans-Alaska Pipeline.
(3) OIL- The term `oil' has the same meaning as is given such term for purposes of the transfer of functions from the Interstate Commerce Commission to the Federal Energy Regulatory Commission under section 402(b) of the Department of Energy Organization Act (42 U.S.C. 7172(b)).
(4) RATE- The term `rate' means all charges that an oil pipeline requires shippers to pay for transportation services.
TITLE XIX--REVENUE PROVISIONS
SEC. 1901. AMENDMENT OF 1986 CODE.
Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
Subtitle A--Energy Conservation and Production Incentives
SEC. 1911. TREATMENT OF EMPLOYER-PROVIDED TRANSPORTATION BENEFITS.
(a) EXCLUSION- Subsection (a) of section 132 (relating to exclusion of certain fringe benefits) is amended by striking `or' at the end of paragraph (3), by striking the period at the end of paragraph (4) and inserting `, or', and by adding at the end thereof the following new paragraph:
`(5) qualified transportation fringe.'
(b) QUALIFIED TRANSPORTATION FRINGE- Section 132 is amended by redesignating subsections (f), (g), (h), (i), (j), and (k) as subsections (g), (h), (i), (j), (k), and (l), respectively, and by inserting after subsection (e) the following new subsection:
`(f) QUALIFIED TRANSPORTATION FRINGE-
`(1) IN GENERAL- For purposes of this section, the term `qualified transportation fringe' means any of the following provided by an employer to an employee:
`(A) Transportation in a commuter highway vehicle if such transportation is in connection with travel between the employee's residence and place of employment.
`(2) LIMITATION ON EXCLUSION- The amount of the fringe benefits which are provided by an employer to any employee and which may be excluded from gross income under subsection (a)(5) shall not exceed--
`(A) $60 per month in the case of the aggregate of the benefits described in subparagraphs (A) and (B) of paragraph (1), and
`(B) $155 per month in the case of qualified parking.
`(3) CASH REIMBURSEMENTS- For purposes of this subsection, the term `qualified transportation fringe' includes a cash reimbursement by an employer to an employee for a benefit described in paragraph (1). The preceding sentence shall apply to a cash reimbursement for any transit pass only if a voucher or similar item which may be exchanged only for a transit pass is not readily available for direct distribution by the employer to the employee.
`(4) BENEFIT NOT IN LIEU OF COMPENSATION- Subsection (a)(5) shall not apply to any qualified transportation fringe unless such benefit is provided in addition to (and not in lieu of) any compensation otherwise payable to the employee.
`(5) DEFINITIONS- For purposes of this subsection--
`(A) TRANSIT PASS- The term `transit pass' means any pass, token, farecard, voucher, or similar item entitling a person to transportation (or transportation at a reduced price) if such transportation is--
`(i) on mass transit facilities (whether or not publicly owned), or
`(ii) provided by any person in the business of transporting persons for compensation or hire if such transportation is provided in a vehicle meeting the requirements of subparagraph (B)(i).
`(B) COMMUTER HIGHWAY VEHICLE- The term `commuter highway vehicle' means any highway vehicle--
`(i) the seating capacity of which is at least 6 adults (not including the driver), and
`(ii) at least 80 percent of the mileage use of which can reasonably be expected to be--
`(I) for purposes of transporting employees in connection with travel between their residences and their place of employment, and
`(II) on trips during which the number of employees transported for such purposes is at least 1/2 of the adult seating capacity of such vehicle (not including the driver).
`(C) QUALIFIED PARKING- The term `qualified parking' means parking provided to an employee on or near the business premises of the employer or on or near a location from which the employee commutes to work by transportation described in subparagraph (A), in a commuter highway vehicle, or by carpool. Such term shall not include any parking on or near property used by the employee for residential purposes.
`(D) TRANSPORTATION PROVIDED BY EMPLOYER- Transportation referred to in paragraph (1)(A) shall be considered to be provided by an employer if such transportation is furnished in a commuter highway vehicle operated by or for the employer.
`(E) EMPLOYEE- For purposes of this subsection, the term `employee' does not include an individual who is an employee within the meaning of section 401(c)(1).
`(6) INFLATION ADJUSTMENT- In the case of any taxable year beginning in a calendar year after 1993, the dollar amounts contained in paragraph (2) (A) and (B) shall be increased by an amount equal to--
`(A) such dollar amount, multiplied by
`(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting `calendar year 1992' for `calendar year 1989' in subparagraph (B) thereof.
If any increase determined under the preceding sentence is not a multiple of $5, such increase shall be rounded to the next lowest multiple of $5.
`(7) COORDINATION WITH OTHER PROVISIONS- For purposes of this section, the terms `working condition fringe' and `de minimis fringe' shall not include any qualified transportation fringe (determined without regard to paragraph (2)).'
(c) CONFORMING AMENDMENT- Subsection (i) of section 132 (as redesignated by subsection (b)) is amended by striking paragraph (4) and redesignating the following paragraphs accordingly.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to benefits provided after December 31, 1992.
SEC. 1912. EXCLUSION OF ENERGY CONSERVATION SUBSIDIES PROVIDED BY PUBLIC UTILITIES.
(a) GENERAL RULE- Part III of subchapter B of chapter 1 (relating to amounts specifically excluded from gross income) is amended by redesignating section 136 as section 137 and by inserting after section 135 the following new section:
`SEC. 136. ENERGY CONSERVATION SUBSIDIES PROVIDED BY PUBLIC UTILITIES.
`(1) IN GENERAL- Gross income shall not include the value of any subsidy provided (directly or indirectly) by a public utility to a customer for the purchase or installation of any energy conservation measure.
`(2) LIMITATION ON EXCLUSION FOR NONRESIDENTIAL PROPERTY-
`(A) IN GENERAL- In the case of any subsidy provided with respect to any energy conservation measure referred to in subsection (c)(1)(B), only the applicable percentage of such subsidy shall be excluded from gross income under paragraph (1).
`(B) APPLICABLE PERCENTAGE- For purposes of subparagraph (A), the term `applicable percentage' means--
`(i) 40 percent in the case of subsidies provided during 1995,
`(ii) 50 percent in the case of subsidies provided during 1996, and
`(iii) 65 percent in the case of subsidies provided after 1996.
`(b) DENIAL OF DOUBLE BENEFIT- Notwithstanding any other provision of this subtitle, no deduction or credit shall be allowed for, or by reason of, any expenditure to the extent of the amount excluded under subsection (a) for any subsidy which was provided with respect to such expenditure. The adjusted basis of any property shall be reduced by the amount excluded under subsection (a) which was provided with respect to such property.
`(c) ENERGY CONSERVATION MEASURE-
`(1) IN GENERAL- For purposes of this section, the term `energy conservation measure' means any installation or modification primarily designed to reduce consumption of electricity or natural gas or to improve the management of energy demand--
`(A) with respect to a dwelling unit, and
`(B) on or after January 1, 1995, with respect to property other than dwelling units.
The purchase and installation of specially defined energy property shall be treated as an energy conservation measure described in subparagraph (B).
`(2) OTHER DEFINITIONS AND SPECIAL RULES- For purposes of this subsection--
`(A) SPECIALLY DEFINED ENERGY PROPERTY- The term `specially defined energy property' means--
`(v) a waste heat boiler,
`(vii) an automatic energy control system,
`(x) a combustible gas recovery system,
`(xii) modifications to alumina electrolytic cells,
`(xiii) modifications to chlor-alkali electrolytic cells, or
`(xiv) any other property of a kind specified by the Secretary by regulations,
the principal purpose of which is reducing the amount of energy consumed in any existing industrial or commercial process and which is installed in connection with an existing industrial or commercial facility.
`(B) DWELLING UNIT- The term `dwelling unit' has the meaning given such term by section 280A(f)(1).
`(C) PUBLIC UTILITY- The term `public utility' means a person engaged in the sale of electricity or natural gas to residential, commercial, or industrial customers for use by such customers. For purposes of the preceding sentence, the term `person' includes the Federal Government, a State or local government or any political subdivision thereof, or any instrumentality of any of the foregoing.
`(d) EXCEPTION- This section shall not apply to any payment to or from a qualified cogeneration facility or qualifying small power production facility pursuant to section 210 of the Public Utility Regulatory Policy Act of 1978.'
(b) CLERICAL AMENDMENT- The table of sections for part III of subchapter B of chapter 1 is amended by striking the item relating to section 136 and inserting:
`Sec. 136. Energy conservation subsidies provided by public utilities.
`Sec. 137. Cross reference to other Acts.'
(c) EFFECTIVE DATE- The amendments made by this section shall apply to amounts received after December 31, 1992.