[Page S7314]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5118. Mr. DOMENICI (for himself and Mr. Voinovich) submitted an 
amendment intended to be proposed by him to the bill S. 3268, to amend 
the Commodity Exchange Act, to prevent excessive price speculation with 
respect to energy commodities, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. MULTIYEAR CONTRACT AUTHORITY FOR THE DEPARTMENT OF 
                   DEFENSE FOR THE PROCUREMENT OF SYNTHETIC FUELS.

       (a) Multiyear Contracts for the Procurement of Synthetic 
     Fuels Authorized.--
       (1) In general.--Chapter 141 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2410r. Multiyear contract authority: purchase of 
       synthetic fuels

       ``(a) Multiyear Contracts Authorized.--The head of an 
     agency may enter into contracts for a period not to exceed 25 
     years for the purchase of synthetic fuels.
       ``(b) Definitions.--In this section:
       ``(1) The term `head of an agency' has the meaning given 
     that term in section 2302(1) of this title.
       ``(2) The term `synthetic fuel' means any liquid, gas, or 
     combination thereof that--
       ``(A) can be used as a substitute for petroleum or natural 
     gas (or any derivative thereof, including chemical 
     feedstocks); and
       ``(B) is produced by chemical or physical transformation of 
     domestic sources of energy.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 141 of such title is amended by adding 
     at the end the following new item:

``2410r. Multiyear contract authority: purchase of synthetic fuels.''.

       (b) Regulations.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     prescribe regulations providing that the head of an agency 
     may initiate a multiyear contract as authorized by section 
     2410r of title 10, United States Code (as added by subsection 
     (a)), only if the head of the agency has determined in 
     writing that--
       (1) there is a reasonable expectation that throughout the 
     contemplated contract period the head of the agency will 
     request funding for the contract at the level required to 
     avoid contract cancellation;
       (2) the technical risks associated with the technologies 
     for the production of synthetic fuel under the contract are 
     not excessive; and
       (3) the contract will contain appropriate pricing 
     mechanisms to minimize risk to the Government from 
     significant changes in market prices for energy.
       (c) Limitation on Use of Authority.--No contract may be 
     entered into under the authority in section 2410r of title 
     10, United States Code (as so added), until the regulations 
     required by subsection (b) are prescribed.
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