The U.S. Department of Energy is in the final stages of implementing the Emergency Petroleum Supply Act, a bill authored by U.S. Senator Daniel K. Akaka (D-Hawaii), and enacted into law last November, that guarantees Hawaii a supply of oil during an energy disruption.

During an Energy Research, Development, Production and Regulation Subcommittee hearing today chaired by Senator Akaka, Robert Gee, Assistant Secretary for Fossil Energy, stated that the Energy Department is in the final stages of completing a memorandum of understanding with the State of Hawaii to implement the Act. The parties expect to sign the MOU in October, 1999.

In December, the Department plans a limited test drawdown of oil to evaluate the process they have instituted for Hawaii and to ensure that all parties become familiar with the drawdown process in general, and, more the special Hawaii rules. Assistant Secretary Gee assured Senator Akaka that in the event that a full-scale drawdown is ordered, Hawaii would be guaranteed SPR oil regardless of whether the new procedures have formally been instituted.

"Now that the Emergency Petroleum Supply Act is law and close to implementation, we have an important tool to safeguard Hawaii from economic harm in the event of a serious oil supply disruption," Akaka noted.