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The annual consideration of appropriations bills (regular,
continuing, and supplemental) by Congress is part of a complex set
of budget processes that also encompasses the consideration of
budget resolutions, revenue and debt-limit legislation, other
spending measures, and reconciliation bills. In addition, the
operation of programs and the spending of appropriated funds are
subject to constraints established in authorising statutes.
Congressional action on the budget for a fiscal year usually begins
following the submission of the President's budget at the beginning
of the session. Congressional practices governing the consideration
of appropriations and other budgetary measures are rooted in the
Constitution, the standing rules of the House and Senate, and
statutes, such as the Congressional Budget and Impoundment Control
Act of 1974.This book is a guide to one of the regular
appropriations bills that Congress considers each year. It is
designed to supplement the information provided by the House and
Senate Subcommittees on Interior, Environment, and Related
Agencies. It summarises the status of the Interior, Environment,
and Related Agencies appropriations bill, its scope, major issues,
funding levels, and related congressional activity, and is updated
as events warrant.
To help prevent a repetition of the economic dislocation caused by
the 1973-74 Arab oil embargo, Congress authorised the Strategic
Petroleum Reserve (SPR) in the Energy Policy and Conservation Act
(EPCA, P.L. 94-163). Physically, the SPR comprises five underground
storage facilities, hollowed out from naturally occurring salt
domes, located in Texas and Louisiana. Oil stored at one of the
sites, Weeks Island, was transferred after problems with the
structural integrity of the cavern were discovered in the
mid-1990s. Hurricane Katrina made landfall early in the morning of
August 29, 2005 inflicting severe damage and shutting down oil and
gas production and refining activities in the Gulf of Mexico.
Damage assessments continue. By September 2, three requests for
loans totalling 8.5 million barrels had been approved; a few others
are pending. The Administration also announced it was making 30
million barrels available. However, as a policy tool to respond to
the crisis, the SPR has limitations because a barrel of crude
contributes to product supply only if there is refining capacity to
turn the crude into gasoline or diesel fuel. Consequently, recovery
from the hurricane's effects will depend upon resumption of
production and refining operations in the Gulf, and the ability to
transport petroleum products. On August 8, 2005, the President
signed the Energy Policy Act of 2005 (H.R. 6). The bill as enacted
permanently authorises the SPR and requires, "as expeditiously as
practicable," expansion of the SPR to its authorised maximum of 1
billion barrels. The Secretary is required to develop procedures
for achieving the fill objective without "incurring excessive
cost," or placing upward pressure on prices. Any fill policy is
also to take into consideration minimising income foregone to the
Treasury by filling the SPR with additional royalty-in-kind (RIK)
oil.
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