[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3610 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3610

To authorize and facilitate a program to enhance training, research and 
development, energy conservation and efficiency, and consumer education 
 in the oilheat industry for the benefit of oilheat consumers and the 
                    public, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 31, 1998

   Mr. Greenwood (for himself, Mr. Manton, Mr. Paxon, Mr. Engel, Mr. 
Oxley, Mr. Norwood, Mr. Shimkus, Mr. Stupak, Mr. Boehlert, Mr. Solomon, 
   Mr. King, Mrs. McCarthy of New York, Mr. Holden, Mr. McDade, Mr. 
  Andrews, Mrs. Roukema, Mr. Gekas, Mrs. Kennelly of Connecticut, Mr. 
   McHale, Mr. Frelinghuysen, Mr. Ehrlich, Mr. Pappas, Mr. Weldon of 
    Pennsylvania, Mr. Ackerman, Mr. Cardin, Mr. Hoyer, Mr. Neal of 
      Massachusetts, Mr. Olver, Mr. Goode, Mr. Roemer, Mr. Fox of 
   Pennsylvania, Mr. Meeks of New York, Mr. Bass, and Mr. Baldacci) 
 introduced the following bill; which was referred to the Committee on 
                                Commerce

_______________________________________________________________________

                                 A BILL


 
To authorize and facilitate a program to enhance training, research and 
development, energy conservation and efficiency, and consumer education 
 in the oilheat industry for the benefit of oilheat consumers and the 
                    public, and for other purposes.

    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 ``National Oilheat Research Alliance 
Act of 1998''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) oilheat is an important commodity relied upon by 
        approximately 30,000,000 Americans annually as an efficient and 
        economical energy source for commercial and residential space 
        and hot water heating;
            (2) oilheat equipment operates at efficiencies among the 
        highest of any space heating energy source, reducing fuel costs 
        and making oilheat an economical means of space heating;
            (3) the production, distribution, and marketing of oilheat 
        and oilheat equipment plays a significant role in the economy 
        of the United States accounting for approximately 
        $12,900,000,000 in expenditures annually and employing millions 
        of Americans in all aspects of the industry;
            (4) only very limited Federal resources have been made 
        available for oilheat research, development, safety, training, 
        and education efforts, to the detriment of both the oilheat 
        industry and its 30,000,000 consumers; and
            (5) the cooperative development, self-financing, and 
        implementation of a coordinated national oilheat industry 
        program of research and development, training, and consumer 
        education is necessary and important for the welfare of the 
        oilheat industry, including wholesale distributors and retail 
        marketers, as well as for the general economy of the United 
        States and the millions of Americans who rely on oilheat for 
        commercial and residential space and hot water heating.

SEC. 3. DEFINITIONS.

    For the purposes of this Act--
            (1) the term ``Alliance'' means a National Oilheat Research 
        Alliance created pursuant to section 4 of this Act;
            (2) the term ``consumer education'' means the provision of 
        information that will assist consumers and other persons in 
        making evaluations and decisions regarding oilheat and other 
        nonindustrial commercial or residential space or hot water 
        heating fuels;
            (3) the term ``exchange'' means an agreement that entitles 
        each party or its customers to receive product from the other 
        party and requires only an insubstantial portion of the volumes 
        involved in the exchange to be settled in cash or property 
        other than the product;
            (4) the term ``industry'' means those persons involved in 
        the production, transportation, and sale of oilheat, and in the 
        manufacture and distribution of oilheat utilization equipment, 
        in the United States, but such term does not include the 
        ultimate consumers of oilheat;
            (5) the term ``industry trade association'' means an 
        organization exempt from tax, under section 501(c) (3) or (6) 
        of the Internal Revenue Code of 1986, representing participants 
        in the industry;
            (6) the term ``No. 1 distillate'' means fuel oil classified 
        as No. 1 distillate by the American Society for Testing and 
        Materials;
            (7) the term ``No. 2 dyed distillate'' means fuel oil 
        classified as No. 2 distillate by the American Society for 
        Testing and Materials which is indelibly dyed in accordance 
        with regulations prescribed by the Secretary of the Treasury 
        pursuant to section 4082(a)(2) of the Internal Revenue Code of 
        1986;
            (8) the term ``oilheat'' means--
                    (A) No. 1 distillate; or
                    (B) No. 2 dyed distillate,
        which is used as a fuel for nonindustrial commercial or 
        residential space or hot water heating;
            (9) the term ``public member'' means a member of the 
        Alliance described in section 5(c)(6);
            (10) the term ``qualified industry organization'' means the 
        National Association for Oilheat Research and Education or a 
        successor organization;
            (11) the term ``qualified State association'' means the 
        industry trade association or other organization that the 
        qualified industry organization, or, after its establishment 
        under this Act, the Alliance, determines best represents retail 
        marketers in a State;
            (12) the term ``retail marketer'' means a person engaged 
        primarily in the sale of oilheat to the ultimate consumer;
            (13) the term ``Secretary'' means the Secretary of Energy; 
        and
            (14) the term ``wholesale distributor'' means a person 
        who--
                    (A) produces;
                    (B) imports; or
                    (C) transports across State boundaries and among 
                local marketing areas, and
        No. 1 distillate or No. 2 dyed distillate, and sells such 
        distillate to another person who does not produce, import, or 
        transport distillates as described in this paragraph.

SEC. 4. REFERENDA.

    (a) Creation of Program.--The industry, through the qualified 
industry organization, may conduct, at its own expense, a referendum 
among retail marketers and wholesale distributors for the creation of a 
National Oilheat Research Alliance. The Alliance, if established, shall 
reimburse the qualified industry organization for the cost of 
referendum accounting and documentation. Such referendum shall be 
conducted by an independent auditing firm. Voting rights of a retail 
marketer in such referendum shall be based on the volume of oilheat 
sold in a State by the retail marketer in the previous calendar year or 
other representative period. Voting rights of a wholesale distributor 
in such referendum shall be based on the volume of No. 1 distillate and 
No. 2 dyed distillate sold in a State by the wholesale distributor in 
the previous calendar year or other representative period, weighted by 
the ratio of the total volume of No. 1 distillate and No. 2 dyed 
distillate sold for nonindustrial commercial and residential space and 
hot water heating in that State to the total volume of No. 1 distillate 
and No. 2 dyed distillate sold in that State. Upon approval of those 
persons representing two-thirds of the total volume of oilheat voted in 
the retail marketer class and two-thirds of the total weighted volume 
of No. 1 distillate and No. 2 dyed distillate voted in the wholesale 
distributor class, the Alliance shall be established, and shall be 
authorized to levy assessments in accordance with section 6. All 
persons voting in the referendum shall certify to the independent 
auditing firm the volume of oilheat, No. 1 distillate, or No. 2 dyed 
distillate represented by their vote. Except as provided in subsection 
(b), a State shall not participate in the Alliance if less than 50 
percent of the retail marketer vote in that State, subject to the 
volumetric voting rules established by this subsection, is in favor of 
the creation of the Alliance. A qualified State association may notify 
the qualified industry organization within 90 days after the date of 
the enactment of this Act in writing that a referendum under this 
subsection will not be conducted in that State.
    (b) Subsequent State Participation.--A State that has not 
participated initially in the Alliance may subsequently elect to 
participate by conducting a referendum in accordance with subsection 
(a).
    (c) Termination or Suspension.--On the Alliance's own initiative, 
or on petition to the Alliance by retail marketers and wholesale 
distributors representing 35 percent of the volume of oilheat or 
weighted No. 1 distillate and No. 2 dyed distillate in each class, the 
Alliance shall, at its own expense, hold a referendum, to be conducted 
by an independent auditing firm selected by the Alliance, to determine 
whether the industry favors termination or suspension of the Alliance. 
Termination or suspension shall not take effect unless it is approved 
by persons representing more than one-half of the total volume of 
oilheat voted in the retail marketer class and more than one-half of 
the total volume of weighted No. 1 distillate and No. 2 dyed distillate 
voted in the wholesale distributor class, or is approved by persons 
representing more than two-thirds of the total volume of fuel voted in 
either such class.

SEC. 5. NATIONAL OILHEAT RESEARCH ALLIANCE.

    (a) Selection of Members.--Except as otherwise provided in 
subsection (c)(3), the qualified industry organization shall select all 
members of the Alliance. The qualified industry organization shall 
select a member representing a State from a list of nominees submitted 
by that State's qualified State association. Vacancies in unfinished 
terms of Alliance members shall be filled in the same manner as were 
the original appointments.
    (b) Representation.--In selecting members of the Alliance, the 
qualified industry organization shall give due regard to selecting a 
Alliance that is representative of the industry, including 
representation of--
            (1) interstate and intrastate operators among retail 
        marketers;
            (2) wholesale distributors of No. 1 distillate and No. 2 
        dyed distillate;
            (3) large and small companies among wholesale distributors 
        and retail marketers; and
            (4) diverse geographic regions of the country.
    (c) Membership.--The membership of the Alliance shall be as 
follows:
            (1) One member representing each State with oilheat sales 
        in excess of 32,000,000 gallons per year.
            (2) If less than 24 States are represented under paragraph 
        (1), one member representing each of the States with the 
        highest volume of annual oilheat sales as necessary to cause 
        the total number of States represented under paragraph (1) and 
        this paragraph combined to equal 24.
            (3) 5 representatives of retail marketers, one each to be 
        selected by the qualified State associations of the 5 States 
        with the highest volume of annual oilheat sales.
            (4) 5 additional representatives of retail marketers.
            (5) 21 representatives of wholesale distributors.
            (6) 6 public members, who shall be representatives of 
        significant users of oilheat, the oilheat research community, 
        or other groups knowledgeable about oilheat.
Other than the public members, Alliance members shall be full-time 
employees or owners of businesses in the industry, except that members 
described in paragraphs (3), (4), and (5) may be employees of the 
qualified industry organization or an industry trade association.
    (d) Compensation.--Alliance members shall receive no compensation 
for their services, nor shall Alliance members be reimbursed for 
expenses relating to their service, except that public members, upon 
request, may be reimbursed for reasonable expenses directly related to 
their participation in Alliance meetings.
    (e) Terms.--Alliance members shall serve terms of 3 years and may 
serve not more than 2 full consecutive terms. Members filling unexpired 
terms may serve not more than a total of 7 consecutive years. Former 
members of the Alliance may be returned to the Alliance if they have 
not been members for a period of 2 years. Initial appointments to the 
Alliance shall be for terms of 1, 2, and 3 years, as determined by the 
qualified industry organization, staggered to provide for the 
subsequent selection of one-third of the members each year.
    (f) Functions.--The Alliance shall develop programs and projects 
and enter into contracts or agreements for implementing this Act, 
including programs to enhance consumer and employee safety and 
training, to provide for research and development of clean and 
efficient oilheat utilization equipment, to inform and educate the 
public about safety and other issues associated with the use of 
oilheat, and to provide for the payment of the costs thereof with funds 
collected pursuant to this Act. The Alliance shall coordinate its 
activities with industry trade associations and others as appropriate 
to provide efficient delivery of services and to avoid unnecessary 
duplication of activities.
    (g) Priorities.--Issues related to research and development, 
safety, consumer education, and training shall be given priority by the 
Alliance in the development of its programs and projects.
    (h) Administration.--The Alliance shall select from among its 
members a Chairman and other officers as necessary, may establish and 
authorize committees and subcommittees of the Alliance to take specific 
actions the Alliance is authorized to take, and shall adopt rules and 
bylaws for the conduct of business and the implementation of this Act. 
The Alliance shall establish procedures for the solicitation of 
industry comment and recommendations on any significant plans, 
programs, and projects to be funded by the Alliance. The Alliance may 
establish advisory committees of persons other than Alliance members. 
Each member of the Alliance shall have 1 vote in matters before the 
Alliance.
    (i) Administrative Expenses.--(1) The administrative expenses of 
operating the Alliance (not including costs incurred in the collection 
of the assessment pursuant to section 6) plus amounts paid under 
paragraph (2) shall not exceed 7 percent of the funds collected in any 
fiscal year, except that during the first year of its operation such 
expenses and amounts shall not exceed 10 percent of such funds.
    (2) The Alliance shall annually reimburse the Secretary for costs 
incurred by the Federal Government relating to the Alliance. Such 
reimbursement for any fiscal year shall not exceed the amount that the 
Secretary determines is 2 times the average annual salary of 1 employee 
of the Department of Energy.
    (j) Budget.--Before August 1 each year, the Alliance shall publish 
for public review and comment a budget plan for the next calendar year, 
including the probable costs of all programs, projects, and contracts 
and a recommended rate of assessment sufficient to cover such costs. 
Following this review and comment, the Alliance shall submit the 
proposed budget to the Secretary and to the Congress. The Secretary may 
recommend programs and activities the Secretary considers appropriate. 
The Alliance shall not implement a proposed budget until after 
receiving the Secretary's recommendations, or after the expiration of 
60 days after submitting the proposed budget, whichever occurs first.
    (k) Records; Audits.--The Alliance shall keep books and records 
that clearly reflect all of the acts and transactions of the Alliance 
and make public such information. The books of the Alliance, including 
fee assessment reports and applications for refunds, shall be audited 
by a certified public accountant at least once each fiscal year and at 
such other times as the Alliance may designate. Copies of such audit 
shall be provided to all members of the Alliance, the qualified 
industry organization, and to other members of the industry upon 
request. The Alliance shall establish policies and procedures for 
auditing compliance with this Act. The Secretary shall make available 
to the Alliance any information the Alliance requests for auditing 
compliance, except for information the Secretary is prohibited by law 
from releasing.
    (l) Public Access to Alliance Proceedings.--(1) All meetings of the 
Alliance shall be open to the public after at least 30 days advance 
public notice.
    (2) The minutes of all meetings of the Alliance shall be made 
available to and readily accessible by the public.
    (m) Annual Report.--Each year the Alliance shall prepare and make 
publicly available a report which includes an identification and 
description of all programs and projects undertaken by the Alliance 
during the previous year as well as those planned for the coming year. 
Such report shall also detail the allocation or planned allocation of 
Alliance resources for each such program and project.
    (n) Calculation of Oilheat Sales.--For purposes of this section, 
the volume of oilheat sold annually in a State shall be determined on 
the basis of information provided by the Energy Information 
Administration with respect to the preceding calendar year or other 
equivalent period.

SEC. 6. ASSESSMENTS.

    (a) Amount.--The Alliance shall set the initial assessment at no 
greater than two tenths of 1 cent per gallon of No. 1 distillate and 
No. 2 dyed distillate. Thereafter, annual assessments shall be 
sufficient to cover the costs of the plans and programs developed by 
the Alliance, except that under no circumstances shall the assessment 
be greater than one-half cent per gallon of No. 1 distillate and No. 2 
dyed distillate unless approved by a majority of those voting in a 
referendum in both the retail marketer class and the wholesale 
distributor class. In no case may the assessment be raised by more than 
one tenth of 1 cent per gallon of No. 1 distillate and No. 2 dyed 
distillate annually, and no increases may occur unless approved by a 
two-thirds vote of the Alliance.
    (b) Collection Rules.--The assessment shall be collected upon the 
sale of No. 1 distillate and No. 2 dyed distillate by a wholesale 
distributor to a person other than a wholesale distributor, including a 
sale made pursuant to an exchange. The wholesale distributor shall be 
responsible for payment of the assessment to the Alliance and shall 
provide to the Alliance certification of the volume of fuel sold. A 
person who has no ownership interest in No. 1 distillate or No. 2 dyed 
distillate shall not be responsible for payment of an assessment under 
this section. Assessments shall be made on all No. 1 distillate and No. 
2 dyed distillate sold in a State that is participating in the 
Alliance, and are payable to the Alliance on a quarterly basis. Any No. 
1 distillate or No. 2 dyed distillate previously assessed shall not be 
subject to further assessment. A wholesale distributor who fails within 
one year of sale to receive payments from a purchaser for No. 1 
distillate or No. 2 dyed distillate sold may apply for a refund 
directly from the Alliance. Such refund may not exceed the amount of 
the assessments levied upon the No. 1 distillate and No. 2 dyed 
distillate for which payment was not received. The owner of No. 1 
distillate and No. 2 dyed distillate imported after the point of sale 
described in the first sentence of this subsection shall be responsible 
for payment of the assessment to the Alliance at the point at which the 
product enters the United States, and shall provide to the Alliance 
certification of the volume of fuel so imported.
    (c) Exclusions.--No. 1 distillate and No. 2 dyed distillate sold 
for uses other than oilheat are excluded from the assessment. The 
Alliance shall establish rules and procedures for refunding to 
wholesale distributors, and to retail marketers or other end users who 
purchase from a wholesale distributor, assessments collected on 
excluded gallons.
    (d) Alternative Collection Rules.--The Alliance may establish, or 
approve a State's request for, an alternative means of collecting the 
assessment if another means is found to be more efficient and 
effective. The Alliance may establish a late payment charge and rate of 
interest to be imposed on any person who fails to remit or pay to the 
Alliance any amount due under this Act.
    (e) Investment of Funds.--Pending disbursement pursuant to a 
program, plan, or project, the Alliance may invest funds collected 
through assessments, and any other funds received by the Alliance, only 
in obligations of the United States or any agency thereof, in general 
obligations of any State or any political subdivision thereof, in any 
interest-bearing account or certificate of deposit of a bank that is a 
member of the Federal Reserve System, or in obligations fully 
guaranteed as to principal and interest by the United States.
    (f) State Programs.--
            (1) Coordination.--The Alliance shall establish a program 
        coordinating the operation of the Alliance with those of any 
        similar State, local, or regional program created by State law 
        or regulation, or similar entity.
            (2) Funds made available to qualified state associations.--
        Not less than 85 percent of the funds raised in a State 
        pursuant to the assessment under this section shall be made 
        available to that State's qualified State association. In order 
        to ensure that qualified State associations will comply with 
        this Act, such associations shall be required to submit a 
        proposal to the Alliance before receiving funding under this 
        paragraph. No funding shall be made available under this 
        paragraph unless the Alliance determines that the funding will 
        directly benefit the oilheat industry.

SEC. 7. COMPLIANCE.

    The Alliance may bring suit in Federal court to compel compliance 
with an assessment levied by the Alliance under this Act. A successful 
action for compliance under this section may also require payment by 
the defendant of the costs incurred by the Alliance in bringing such 
action.

SEC. 8. LOBBYING RESTRICTIONS.

    No funds collected by the Alliance shall be used in any manner for 
influencing legislation or elections, except that the Alliance may 
recommend to the Secretary changes in this Act or other statutes that 
would further the purposes of this Act.
                                 <all>