[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2884 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                      October 19 (legislative day, September 22), 2000.
    Resolved, That the bill from the House of Representatives (H.R. 
2884) entitled ``An Act to extend energy conservation programs under 
the Energy Policy and Conservation Act through fiscal year 2003.'', do 
pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION. 1. SHORT TITLE.

    This Act may be cited as the Energy Act of 2000.

                  TITLE I--STRATEGIC PETROLEUM RESERVE

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Energy Policy and Conservation Act 
Amendments of 2000''.

SEC. 102. AMENDMENT TO SECTION 2 OF THE ENERGY POLICY AND CONSERVATION 
              ACT

    Section 2 of the Energy Policy and Conservation Act (42 U.S.C. 
6201) is amended--
            (1) in paragraph (1) by striking ``standby'' and ``, 
        subject to congressional review, to impose rationing, to reduce 
        demand for energy through the implementation of energy 
        conservation plans, and''; and
            (2) by striking paragraphs (3) and (6).

SEC. 103. AMENDMENT TO TITLE I OF THE ENERGY POLICY AND CONSERVATION 
              ACT

    Title I of the Energy Policy and Conservation Act (42 U.S.C. 6211-
6251) is amended--
            (1) by striking section 102 (42 U.S.C. 6211) and its 
        heading;
            (2) by striking section 104(b)(1);
            (3) by striking section 106 (42 U.S.C. 6214) and its 
        heading;
            (4) by amending section 151(b) (42 U.S.C. 6231) to read as 
        follows:
    ``(b) It is the policy of the United States to provide for the 
creation of a Strategic Petroleum Reserve for the storage of up to 1 
billion barrels of petroleum products to reduce the impact of 
disruptions in supplies of petroleum products, to carry out obligations 
of the United States under the international energy program, and for 
other purposes as provided for in this Act.'';
            (5) in section 152 (42 U.S.C. 6232)--
                    (A) by striking paragraphs (1), (3) and (7), and
                    (B) in paragraph (11) by striking ``; such term 
                includes the Industrial Petroleum Reserve, the Early 
                Storage Reserve, and the Regional Petroleum Reserve''.
            (6) by striking section 153 (42 U.S.C. 6233) and its 
        heading;
            (7) in section 154 (42 U.S.C. 6234)--
                    (A) by amending subsection (a) to read as follows:
    ``(a) A Strategic Petroleum Reserve for the storage of up to 1 
billion barrels of petroleum products shall be created pursuant to this 
part.'';
                    (B) by amending subsection (b) to read as follows:
    ``(b) The Secretary, in accordance with this part, shall exercise 
authority over the development, operation, and maintenance of the 
Reserve.''; and
                    (C) by striking subsections (c), (d), and (e);
            (8) by striking section 155 (42 U.S.C. 6235) and its 
        heading;
            (9) by striking section 156 (42 U.S.C. 6236) and its 
        heading;
            (10) by striking section 157 (42 U.S.C. 6237) and its 
        heading;
            (11) by striking section 158 (42 U.S.C. 6238) and its 
        heading;
            (12) by amending the heading for section 159 (42 U.S.C. 
        6239) to read, ``Development, Operation, and Maintenance of the 
        Reserve'';
            (13) in section 159 (42 U.S.C. 6239)--
                    (A) by striking subsections (a), (b), (c), (d), and 
                (e);
                    (B) by amending subsection (f) to read as follows:
    ``(f) In order to develop, operate, or maintain the Strategic 
Petroleum Reserve, the Secretary may--
            ``(1) issue rules, regulations, or orders;
            ``(2) acquire by purchase, condemnation, or otherwise, land 
        or interests in land for the location of storage and related 
        facilities;
            ``(3) construct, purchase, lease, or otherwise acquire 
        storage and related facilities;
            ``(4) use, lease, maintain, sell or otherwise dispose of 
        land or interests in land, or of storage and related facilities 
        acquired under this part, under such terms and conditions as 
        the Secretary considers necessary or appropriate;
            ``(5) acquire, subject to the provisions of section 160, by 
        purchase, exchange, or otherwise, petroleum products for 
        storage in the Strategic Petroleum Reserve;
            ``(6) store petroleum products in storage facilities owned 
        and controlled by the United States or in storage facilities 
        owned by others if those facilities are subject to audit by the 
        United States;
            ``(7) execute any contracts necessary to develop, operate, 
        or maintain the Strategic Petroleum Reserve;
            ``(8) bring an action, when the Secretary considers it 
        necessary, in any court having jurisdiction over the 
        proceedings, to acquire by condemnation any real or personal 
        property, including facilities, temporary use of facilities, or 
        other interests in land, together with any personal property 
        located on or used with the land.''; and
                    (C) in subsection (g)--
                            (i) by striking ``implementation'' and 
                        inserting ``development''; and
                            (ii) by striking ``Plan'';
                    (D) by striking subsections (h) and (i);
                    (E) by amending subsection (j) to read as follows:
    ``(j) If the Secretary determines expansion beyond 700,000,000 
barrels of petroleum product inventory is appropriate, the Secretary 
shall submit a plan for expansion to the Congress.''; and
                    (F) by amending subsection (l) to read as follows:
    ``(l) During a drawdown and sale of Strategic Petroleum Reserve 
petroleum products, the Secretary may issue implementing rules, 
regulations, or orders in accordance with section 553 of title 5, 
United States Code, without regard to rulemaking requirements in 
section 523 of this Act, and section 501 of the Department of Energy 
Organization Act (42 U.S.C. 7191).'';
            (14) in section 160 (42 U.S.C. 6240)--
                    (A) in subsection (a), by striking all before the 
                dash and inserting the following--
    ``(a) The Secretary may acquire, place in storage, transport, or 
exchange'';
                    (B) in subsection (a)(1) by striking all after 
                ``Federal lands'';
                    (C) in subsection (b), by striking ``, including 
                the Early Storage Reserve and the Regional Petroleum 
                Reserve'' and by striking paragraph (2); and
                    (D) by striking subsections (c), (d), (e), and (g);
            (15) in section 161 (42 U.S.C. 6241)--
                    (A) by striking ``Distribution of the Reserve'' in 
                the title of this section and inserting ``Sale of 
                Petroleum Products'';
                    (B) in subsection (a), by striking ``drawdown and 
                distribute'' and inserting ``drawdown and sell 
                petroleum products in'';
                    (C) by striking subsections (b), (c), and (f);
                    (D) by amending subsection (d)(1) to read as 
                follows:
    ``(d)(1) Drawdown and sale of petroleum products from the Strategic 
Petroleum Reserve may not be made unless the President has found 
drawdown and sale are required by a severe energy supply interruption 
or by obligations of the United States under the international energy 
program.'';
                    (E) by amending subsection (e) to read as follows:
    ``(e)(1) The Secretary shall sell petroleum products withdrawn from 
the Strategic Petroleum Reserve at public sale to the highest qualified 
bidder in the amounts, for the period, and after a notice of sale 
considered appropriate by the Secretary, and without regard to Federal, 
State, or local regulations controlling sales of petroleum products.
    ``(2) The Secretary may cancel in whole or in part any offer to 
sell petroleum products as part of any drawdown and sale under this 
section.''; and
                    (F) in subsection (g)--
                            (i) by amending paragraph (1) to read as 
                        follows:
    ``(g)(1) The Secretary shall conduct a continuing evaluation of the 
drawdown and sales procedures. In the conduct of an evaluation, the 
Secretary is authorized to carry out a test drawdown and sale or 
exchange of petroleum products from the Reserve. Such a test drawdown 
and sale or exchange may not exceed 5,000,000 barrels of petroleum 
products.'';
                            (ii) by striking paragraph (2);
                            (iii) in paragraph (4), by striking ``90'' 
                        and inserting ``95'';
                            (iv) in paragraph (5), by striking 
                        ``drawdown and distribution'' and inserting 
                        ``test'';
                            (v) by amending paragraph (6) to read as 
                        follows:
            ``(6) In the case of a sale of any petroleum products under 
        this subsection, the Secretary shall, to the extent funds are 
        available in the SPR Petroleum Account as a result of such 
        sale, acquire petroleum products for the Reserve within the 12-
        month period beginning after completion of the sale.''; and
                            (vi) in paragraph (8), by striking 
                        ``drawdown and distribution'' and inserting 
                        ``test'';
                    (G) in subsection (h)--
                            (i) in paragraph (1) by striking 
                        ``distribute'' and inserting ``sell petroleum 
                        products from'';
                            (ii) by deleting ``and'' at the end of 
                        paragraph (1)(A) and by deleting ``shortage,'' 
                        at the end of paragraph (1)(B) and inserting 
                        ``shortage; and
                    ``(C) the Secretary of Defense has found that 
                action taken under this subsection will not impair 
                national security,'';
                            (iii) in paragraph (2) by striking ``In no 
                        case may the Reserve'' and inserting 
                        ``Petroleum products from the Reserve may 
                        not''; and
                            (iv) in paragraph (3) by striking 
                        ``distribution'' each time it appears and 
                        inserting ``sale'';
            (16) by striking section 164 (42 U.S.C. 6244) and its 
        heading;
            (17) by amending section 165 (42 U.S.C. 6245) and its 
        heading to read as follows:

                            ``annual report

    ``Sec. 165. The Secretary shall report annually to the President 
and the Congress on actions taken to implement this part. This report 
shall include--
            ``(1) the status of the physical capacity of the Reserve 
        and the type and quantity of petroleum products in the Reserve;
            ``(2) an estimate of the schedule and cost to complete 
        planned equipment upgrade or capital investment in the Reserve, 
        including upgrades and investments carried out as part of 
        operational maintenance or extension of life activities;
            ``(3) an identification of any life-limiting conditions or 
        operational problems at any Reserve facility, and proposed 
        remedial actions including an estimate of the schedule and cost 
        of implementing those remedial actions;
            ``(4) a description of current withdrawal and distribution 
        rates and capabilities, and an identification of any 
        operational or other limitations on those rates and 
        capabilities;
            ``(5) a listing of petroleum product acquisitions made in 
        the preceding year and planned in the following year, including 
        quantity, price, and type of petroleum;
            ``(6) a summary of the actions taken to develop, operate, 
        and maintain the Reserve;
            ``(7) a summary of the financial status and financial 
        transactions of the Strategic Petroleum Reserve and Strategic 
        Petroleum Reserve Petroleum Accounts for the year;
            ``(8) a summary of expenses for the year, and the number of 
        Federal and contractor employees;
            ``(9) the status of contracts for development, operation, 
        maintenance, distribution, and other activities related to the 
        implementation of this part;
            ``(10) a summary of foreign oil storage agreements and 
        their implementation status;
            ``(11) any recommendations for supplemental legislation or 
        policy or operational changes the Secretary considers necessary 
        or appropriate to implement this part.'';
            (18) in section 166 (42 U.S.C. 6246) by striking ``for 
        fiscal year 1997.'';
            (19) in section 167 (42 U.S.C. 6247)--
                    (A) in subsection (b)--
                            (i) by striking ``and the drawdown'' and 
                        inserting ``for test sales of petroleum 
                        products from the Reserve, and for the 
                        drawdown, sale,'';
                            (ii) by striking paragraph (1); and
                            (iii) in paragraph (2), by striking ``after 
                        fiscal year 1982''; and
                    (B) by striking subsection (e);
            (20) in section 171 (42 U.S.C. 6249)--
                    (A) by amending subsection (b)(2)(B) to read as 
                follows:
                    ``(B) the Secretary notifies each House of the 
                Congress of the determination and identifies in the 
                notification the location, type, and ownership of 
                storage and related facilities proposed to be included, 
                or the volume, type, and ownership of petroleum 
                products proposed to be stored, in the Reserve, and an 
                estimate of the proposed benefits.'';
                    (B) in subsection (b)(3), by striking 
                ``distribution of'' and inserting ``sale of petroleum 
                products from'';
            (21) in section 172 (42 U.S.C. 6249a), by striking 
        subsections (a) and (b);
            (22) by striking section 173 (42 U.S.C. 6249b) and its 
        heading; and
            (23) in section 181 (42 U.S.C. 6251), by striking ``March 
        31, 2000'' each time it appears and inserting ``September 30, 
        2003''.

SEC. 104. AMENDMENT TO TITLE II OF THE ENERGY POLICY AND CONSERVATION 
              ACT

    Title II of the Energy Policy and Conservation Act (42 U.S.C. 6211-
6251) is amended--
            (1) by striking part A (42 U.S.C. 6261 through 6264) and 
        its heading;
            (2) by adding at the end of section 256(h), ``There are 
        authorized to be appropriated for fiscal years 2000 through 
        2003, such sums as may be necessary.''.
            (3) by striking part C (42 U.S.C. 6281 through 6282) and 
        its heading; and
            (4) in section 281 (42 U.S.C. 6285), by striking ``March 
        31, 2000'' each time it appears and inserting ``September 30, 
        2003''.

SEC. 105. CLERICAL AMENDMENTS.

    The Table of contents for the Energy Policy and Conservation Act is 
amended--
            (1) by striking the items relating to sections 102, 106, 
        153, 155, 156, 157, 158, and 164;
            (2) by amending the item relating to section 159 to read as 
        follows: ``Development, Operation, and Maintenance of the 
        Reserve.'';
            (3) by amending the item relating to section 161 to read as 
        follows: ``Drawdown and Sale of Petroleum Products''; and
            (4) by amending the item relating to section 165 to read as 
        follows: ``Annual Report''.

                     TITLE II--HEATING OIL RESERVE

SEC. 201. NORTHEAST HOME HEATING OIL RESERVE.

    (a) Title I of the Energy Policy and Conservation Act is amended 
by--
            (1) redesignating part D as part E;
            (2) redesignating section 181 as section 191; and
            (3) inserting after part C the following new part D:

              ``Part D--Northeast Home Heating Oil Reserve

                            ``establishment

    ``Sec. 181. (a) Notwithstanding any other provision of this Act, 
the Secretary may establish, maintain, and operate in the Northeast a 
Northeast Home Heating Oil Reserve. A Reserve established under this 
part is not a component of the Strategic Petroleum Reserve established 
under part B of this title. A Reserve established under this part shall 
contain no more than 2 million barrels of petroleum distillate.
    ``(b) For the purposes of this part--
            ``(1) the term `Northeast' means the States of Maine, New 
        Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, 
        New York, Pennsylvania, and New Jersey;
            ``(2) the term `petroleum distillate' includes heating oil 
        and diesel fuel; and
            ``(3) the term `Reserve' means the Northeast Home Heating 
        Oil Reserve established under this part.

                              ``authority

    ``Sec. 182. To the extent necessary or appropriate to carry out 
this part, the Secretary may--
            ``(1) purchase, contract for, lease, or otherwise acquire, 
        in whole or in part, storage and related facilities, and 
        storage services;
            ``(2) use, lease, maintain, sell, or otherwise dispose of 
        storage and related facilities acquired under this part;
            ``(3) acquire by purchase, exchange (including exchange of 
        petroleum products from the Strategic Petroleum Reserve or 
        received as royalty from Federal lands), lease, or otherwise, 
        petroleum distillate for storage in the Northeast Home Heating 
        Oil Reserve;
            ``(4) store petroleum distillate in facilities not owned by 
        the United States; and
            ``(5) sell, exchange, or otherwise dispose of petroleum 
        distillate from the Reserve established under this part, 
        including to maintain the quality or quantity of the petroleum 
        distillate in the Reserve or to maintain the operational 
        capability of the Reserve.

                     ``conditions for release; plan

    ``Sec. 183. (a) Finding.--The Secretary may sell products from the 
Reserve only upon a finding by the President that there is a severe 
energy supply interruption. Such a finding may be made only if he 
determines that--
            ``(1) a dislocation in the heating oil market has resulted 
        from such interruption; or
            ``(2) a circumstance, other than that described in 
        paragraph (1), exists that constitutes a regional supply 
        shortage of significant scope and duration and that action 
        taken under this section would assist directly and 
        significantly in reducing the adverse impact of such shortage.
    ``(b) Definition.--For purposes of this section a `dislocation in 
the heating oil market' shall be deemed to occur only when--
            ``(1) The price differential between crude oil, as 
        reflected in an industry daily publication such as `Platt's 
        Oilgram Price Report' or `Oil Daily' and No. 2 heating oil, as 
        reported in the Energy Information Administration's retail 
        price data for the Northeast, increases by more tan 60 percent 
        over its five year rolling average for the months of mid-
        October through March, and continues for 7 consecutive days; 
        and
            ``(2) The price differential continues to increase during 
        the most recent week for which price information is available.
    ``(c) Continuing Evaluation.--The Secretary shall conduct a 
continuing evaluation of the residential price data supplied by the 
Energy Information Administration for the Northeast and data on crude 
oil prices from published sources.
    ``(d) Release of Petroleum Distillate.--After consultation with the 
heating oil industry, the Secretary shall determine procedures 
governing the release of petroleum distillate from the Reserve. The 
procedures shall provide that--
            ``(1) the Secretary may--
                    ``(A) sell petroleum distillate from the Reserve 
                through a competitive process, or
                    ``(B) enter into exchange agreements for the 
                petroleum distillate that results in the Secretary 
                receiving a greater volume of petroleum distillate as 
                repayment than the volume provided to the acquirer;
            ``(2) in all such sales or exchanges, the Secretary shall 
        receive revenue or its equivalent in petroleum distillate that 
        provides the Department with fair market value. At no time may 
        the oil be sold or exchanged resulting in a loss of revenue or 
        value to the United States; and
            ``(3) the Secretary shall only sell or dispose of the oil 
        in the Reserve to entities customarily engaged in the sale and 
        distribution of petroleum distillate.
    ``(e) Plan.--Within 45 days of the date of the enactment of this 
section, the Secretary shall transmit to the President and, if the 
President approves, to the Congress a plan describing--
            ``(1) the acquisition of storage and related facilities or 
        storage services for the Reserve, including the potential use 
        of storage facilities not currently in use;
            ``(2) the acquisition of petroleum distillate for storage 
        in the Reserve;
            ``(3) the anticipated methods of disposition of petroleum 
        distillate from the Reserve;
            ``(4) the estimated costs of establishment, maintenance, 
        and operation of the Reserve;
            ``(5) efforts the Department will take to minimize any 
        potential need for future drawdowns and ensure that 
        distributors and importers are not discouraged from maintaining 
        and increasing supplies to the Northeast; and
            ``(6) actions to ensure quality of the petroleum distillate 
        in the Reserve.

              ``northeast home heating oil reserve account

    ``Sec. 184. (a) Upon a decision of the Secretary of Energy to 
establish a Reserve under this part, the Secretary of the Treasury 
shall establish in the Treasury of the United States an account known 
as the `Northeast Home Heating Oil Reserve Account' (referred to in 
this section as the `Account').
    ``(b) the Secretary of the Treasury shall deposit in the Account 
any amounts appropriated to the Account and any receipts from the sale, 
exchange, or other disposition of petroleum distillate from the 
Reserve.
    ``(c) The Secretary of Energy may obligate amounts in the Account 
to carry out activities under this part without the need for further 
appropriation, and amounts available to the Secretary of Energy for 
obligation under this section shall remain available without fiscal 
year limitation.

                              ``exemptions

    ``Sec. 185. An action taken under this part is not subject to the 
rulemaking requirements of section 523 of this Act, section 501 of the 
Department of Energy Organization Act, or section 553 of title 5, 
United States Code.

                   ``authorization of appropriations

    ``Sec. 186. There are authorized to be appropriated for fiscal 
years 2001, 2002, and 2003 such sums as may be necessary to implement 
this part.''.

SEC. 202. USE OF ENERGY FUTURES FOR FUEL PURCHASES.

    (a) Heating Oil Study.--The Secretary shall conduct a study on--
            (1) the use of energy futures and options contracts to 
        provide cost-effective protection from sudden surges in the 
        price of heating oil (including number two fuel oil, propane, 
        and kerosene) for State and local government agencies, consumer 
        cooperatives, and other organizations that purchase heating oil 
        in bulk to market to end use consumers in the Northeast (as 
        defined in section 201); and
            (2) how to most effectively inform organizations identified 
        in paragraph (1) about the benefits and risks of using energy 
        futures and options contracts.
    (b) Report.--The Secretary shall transmit the study required in 
this section to the Committee on Commerce of the House of 
Representatives and the Committee on Energy and Natural Resources of 
the Senate not later than 180 days after the enactment of this section. 
The report shall contain a review of prior studies conducted on the 
subjects described in subsection (a).

                   TITLE III--MARGINAL WELL PURCHASES

SEC. 301. PURCHASE OF OIL FROM MARGINAL WELLS.

    (a) Purchase of Oil From Marginal Wells.--Part B of title I of the 
Energy Policy and Conservation Act (42 U.S.C. 6232 et seq.) is amended 
by adding the following new section after section 168:

                 ``purchase of oil from marginal wells

    ``Sec. 169. (a) In General.--From amounts authorized under section 
166, in any case in which the price of oil decreases to an amount less 
than $15.00 per barrel (an amount equal to the annual average well head 
price per barrel for all domestic crude oil), adjusted for inflation, 
the Secretary may purchase oil from a marginal well at $15.00 per 
barrel, adjusted for inflation.
    ``(b) Definition of Marginal Well.--The term `marginal well' has 
the same meaning as the definition of `stripper well property' in 
section 613A(c)(6)(E) of the Internal Revenue Code (26 U.S.C. 
613A(c)(6)(E)).''.
    (b) Conforming Amendment.--The table of contents for the Energy 
Policy and Conservation Act is amended by inserting after the item 
relating to section 168 the following:

``Sec. 169. Purchase of oil from marginal wells.''.

                  TITLE IV--FEDERAL ENERGY MANAGEMENT

SEC. 401. FEMP.

    Section 801 of the National Energy Conservation Policy Act (42 
U.S.C. 8287(a)(2)(D)(iii) is amended by striking ``$750,000'' and 
inserting ``$10,000,000''.

  TITLE V--ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS

SEC. 501. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS.

    Part I of the Federal Power Act (16 U.S.C. 792 et seq.) is amended 
by adding at the end the following:

``SEC. 32. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS.

    ``(a) Discontinuance of Regulation by the Commission.--
Notwithstanding sections 4(e) and 23(b), the Commission shall 
discontinue exercising licensing and regulatory authority under this 
part over qualifying project works in the State of Alaska, effective on 
the date on which the Commission certifies that the State of Alaska has 
in place a regulatory program for water-power development that--
            ``(1) protects the public interest, the purposes listed in 
        paragraph (2), and the environment to the same extent provided 
        by licensing and regulation by the Commission under this part 
        and other applicable Federal laws, including the Endangered 
        Species Act (16 U.S.C. 1531 et seq.) and the Fish and Wildlife 
        Coordination Act (16 U.S.C. 661 et seq.);
            ``(2) gives equal consideration to the purposes of--
                    ``(A) energy conservation;
                    ``(B) the protection, mitigation of damage to, and 
                enhancement of, fish and wildlife (including related 
                spawning grounds and habitat);
                    ``(C) the protection of recreational opportunities;
                    ``(D) the preservation of other aspects of 
                environmental quality;
                    ``(E) the interests of Alaska Natives; and
                    ``(F) other beneficial public uses, including 
                irrigation, flood control, water supply, and 
                navigation; and
            ``(3) requires, as a condition of a license for any project 
        works--
                    ``(A) the construction, maintenance, and operation 
                by a licensee at its own expense of such lights and 
                signals as may be directed by the Secretary of the 
                Department in which the Coast Guard is operating, and 
                such fishways as may be prescribed by the Secretary of 
                the Interior or the Secretary of Commerce, as 
                appropriate;
                    ``(B) the operation of any navigation facilities 
                which may be constructed as part of any project to be 
                controlled at all times by such reasonable rules and 
                regulations as may be made by the Secretary of the 
                Army; and
                    ``(C) conditions for the protection, mitigation, 
                and enhancement of fish and wildlife based on 
                recommendations received pursuant to the Fish and 
                Wildlife Coordination Act (16 U.S.C. 661 et seq.) from 
                the National Marine Fisheries Service, the United 
                States Fish and Wildlife Service, and State fish and 
                wildlife agencies.
    ``(b) Definition of `Qualifying Project Works'.--For purposes of 
this section, the term `qualifying project works' means project works--
            ``(1) that are not part of a project licensed under this 
        part or exempted from licensing under this part or section 405 
        of the Public Utility Regulatory Policies Act of 1978 prior to 
        the date of enactment of this section;
            ``(2) for which a preliminary permit, a license 
        application, or an application for an exemption from licensing 
        has not been accepted for filing by the Commission prior to the 
        date of enactment of subsection (c) (unless such application is 
        withdrawn at the election of the applicant);
            ``(3) that are part of a project that has a power 
        production capacity of 5,000 kilowatts or less;
            ``(4) that are located entirely within the boundaries of 
        the State of Alaska; and
            ``(5) that are not located in whole or in part on any 
        Indian reservation, a conservation system unit (as defined in 
        section 102(4) of the Alaska National Interest Lands 
        Conservation Act (16 U.S.C. 3102(4))), or segment of a river 
        designated for study for addition to the Wild and Scenic Rivers 
        System.
    ``(c) Election of State Licensing.--In the case of nonqualifying 
project works that would be a qualifying project works but for the fact 
that the project has been licensed (or exempted from licensing) by the 
Commission prior to the enactment of this section, the licensee of such 
project may in its discretion elect to make the project subject to 
licensing and regulation by the State of Alaska under this section.
    ``(d) Project Works on Federal Lands.--With respect to projects 
located in whole or in part on a reservation, a conservation system 
unit, or the public lands, a State license or exemption from licensing 
shall be subject to--
            ``(1) the approval of the Secretary having jurisdiction 
        over such lands; and
            ``(2) such conditions as the Secretary may prescribe.
    ``(e) Consultation With Affected Agencies.--The Commission shall 
consult with the Secretary of the Interior, the Secretary of 
Agriculture, and the Secretary of Commerce before certifying the State 
of Alaska's regulatory program.
    ``(f) Application of Federal Laws.--Nothing in this section shall 
preempt the application of Federal environmental, natural resources, or 
cultural resources protection laws according to their terms.
    ``(g) Oversight by the Commission.--The State of Alaska shall 
notify the Commission not later than 30 days after making any 
significant modification to its regulatory program. The Commission 
shall periodically review the State's program to ensure compliance with 
the provisions of this section.
    ``(h) Resumption of Commission Authority.--Notwithstanding 
subsection (a), the Commission shall reassert its licensing and 
regulatory authority under this part if the Commission finds that the 
State of Alaska has not complied with one or more of the requirements 
of this section.
    ``(i) Determination by the Commission.--(1) Upon application by the 
Governor of the State of Alaska, the Commission shall within 30 days 
commence a review of the State of Alaska's regulatory program for 
water-power development to determine whether it complies with the 
requirements of subsection (a).
    ``(2) The Commission's review required by paragraph (1) shall be 
completed within one year of initiation, and the Commission shall 
within 30 days thereafter issue a final order determining whether or 
not the State of Alaska's regulatory program for water-power 
development complies with the requirements of subsection (a).
    ``(3) If the Commission fails to issue a final order in accordance 
with paragraph (2) the State of Alaska's regulatory program for water-
power development shall be deemed to be in compliance with subsection 
(a).''.

    TITLE VI--WEATHERIZATION, SUMMER FILL, HYDROELECTRIC LICENSING 
           PROCEDURES, AND INVENTORY OF OIL AND GAS RESERVES

SEC. 601. CHANGES IN WEATHERIZATION PROGRAM TO PROTECT LOW-INCOME 
              PERSONS.

    (a) The matter under the heading ``Energy Conservation (including 
transfer of funds)'' in title II of the Department of the Interior and 
Related Agencies Appropriations Act, 2000 (113 Stat. 1535, 1501A-180), 
is amended by striking ``grants:'' and all that follows and inserting 
``grants.''.
    (b) Section 415 of the Energy Conservation and Production Act (42 
U.S.C. 6865) is amended--
            (1) in subsection (a)(1) by striking the first sentence;
            (2) in subsection (a)(2) by--
                    (A) striking ``(A)'';
                    (B) striking ``approve a State's application to 
                waive the 40 percent requirement established in 
                paragraph (1) if the State includes in its plan'' and 
                inserting ``establish''; and
                    (C) striking subparagraph (B);
            (3) in subsection (c)(1) by--
                    (A) striking ``paragraphs (3) and (4)'' and 
                inserting ``paragraph (3)'',
                    (B) striking ``$1,600'' and inserting ``$2,500'',
                    (C) striking ``and'' at the end of subparagraph 
                (C),
                    (D) striking the period and inserting ``, and'' in 
                subparagraph (D), and
                    (E) inserting after subparagraph (D) the following 
                new subparagraph:
                    ``(E) the cost of making heating and cooling 
                modifications, including replacement'';
            (4) in subsection (c)(3) by--
                    (A) striking ``1991, the $1,600 per dwelling unit 
                limitation'' and inserting ``2000, the $2,500 per 
                dwelling unit average'',
                    (B) striking ``limitation'' and inserting 
                ``average'' each time it appears, and
                    (C) inserting ``the'' after ``beginning of'' in 
                subparagraph (B); and
            (5) by striking subsection (c)(4).

SEC. 602. SUMMER FILL AND FUEL BUDGETING PROGRAMS.

    (a) Part C of title II of the Energy Policy and Conservation Act 
(42 U.S.C. 6211 et seq.) is amended by adding at the end the following:

``SEC. 273. SUMMER FILL AND FUEL BUDGETING PROGRAMS.

    ``(a) Definitions.--In this section:
            ``(1) Budget contract.--The term `budget contract' means a 
        contract between a retailer and a consumer under which the 
        heating expenses of the consumer are spread evenly over a 
        period of months.
            ``(2) Fixed-price contract.--The term `fixed-price 
        contract' means a contract between a retailer and a consumer 
        under which the retailer charges the consumer a set price for 
        propane, kerosene, or heating oil without regard to market 
        price fluctuations.
            ``(3) Price cap contract.--The term `price cap contract' 
        means a contract between a retailer and a consumer under which 
        the retailer charges the consumer the market price for propane, 
        kerosene, or heating oil, but the cost of the propane, 
        kerosene, or heating oil may exceed a maximum amount stated in 
        the contract.
    ``(b) Assistance.--At the request of the chief executive officer of 
a State, the Secretary shall provide information, technical assistance, 
and funding--
            ``(1) to develop education and outreach programs to 
        encourage consumers to fill their storage facilities for 
        propane, kerosene, and heating oil during the summer months; 
        and
            ``(2) to promote the use of budget contracts, price cap 
        contracts, fixed-price contracts, and other advantageous 
        financial arrangements;
to avoid severe seasonal price increases for and supply shortages of 
those products.
    ``(c) Preference.--In implementing this section, the Secretary 
shall give preference to States that contribute public funds or 
leverage private funds to develop State summer fill and fuel budgeting 
programs.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $25,000,000 for fiscal year 2001; and
            ``(2) such sums as are necessary for each fiscal year 
        thereafter.
    ``(e) Inapplicability of Expiration Provision.--Section 281 does 
not apply to this section.''.
    (b) The table of contents in the first section of the Energy Policy 
and Conservation Act (42 U.S.C. prec. 6201) is amended by inserting 
after the item relating to section 272 the following:

``Sec. 273. Summer fill and fuel budgeting programs.''.

SEC. 603. EXPEDITED FERC HYDROELECTRIC LICENSING PROCEDURES.

    The Federal Energy Regulatory Commission shall, in consultation 
with other appropriate agencies, immediately undertake a comprehensive 
review of policies, procedures and regulations for the licensing of 
hydroelectric projects to determine how to reduce the cost and time of 
obtaining a license. The Commission shall report its findings within 
six months of the date of enactment of this section to the Congress, 
including any recommendations for legislative changes.

SEC. 604. SCIENTIFIC INVENTORY OF OIL AND GAS RESERVES.

    (a) In General.--The Secretary of the Interior, in consultation 
with the Secretaries of Agriculture and Energy, shall conduct an 
inventory of all onshore Federal lands. The inventory shall identify--
            (1) the United States Geological Survey reserve estimates 
        of the oil and gas resources underlying these lands; and
            (2) the extent and nature of any restrictions or 
        impediments to the development of such resources.
    (b) Regular Update.--Once completed, the USGS reserve estimates and 
the surface availability data as provided in subsection (a)(2) shall be 
regularly updated and made publically available.
    (c) Inventory.--The inventory shall be provided to the Committee on 
Resources of the House of Representatives and to the Committee on 
Energy and Natural Resources of the Senate within two years after the 
date of enactment of this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to implement this section.

SEC. 605. ANNUAL HOME HEATING READINESS REPORTS.

    (a) In General.--Part A of title I of the Energy Policy and 
Conservation Act (42 U.S.C. 6211 et seq.) is amended by adding at the 
end the following:

``SEC. 108. ANNUAL HOME HEATING READINESS REPORTS.

    ``(a) In General.--On or before September 1 of each year, the 
Secretary, acting through the Administrator of the Energy Information 
Agency, shall submit to Congress a Home Heating Readiness Report on the 
readiness of the natural gas, heating oil and propane industries to 
supply fuel under various weather conditions, including rapid decreases 
in temperature.
    ``(b) Contents.--The Home Heating Readiness Report shall include--
            ``(1) estimates of the consumption, expenditures, and 
        average price per gallon of heating oil and propane and 
        thousand cubic feet of natural gas for the upcoming period of 
        October through March for various weather conditions, with 
        special attention to extreme weather, and various regions of 
        the country;
            ``(2) an evaluation of--
                    ``(A) global and regional crude oil and refined 
                product supplies;
                    ``(B) the adequacy and utilization of refinery 
                capacity;
                    ``(C) the adequacy, utilization, and distribution 
                of regional refined product storage capacity;
                    ``(D) weather conditions;
                    ``(E) the refined product transportation system;
                    ``(F) market inefficiencies; and
                    ``(G) any other factor affecting the functional 
                capability of the heating oil industry and propane 
                industry that has the potential to affect national or 
                regional supplies and prices;
            ``(3) recommendations on steps that the Federal, State, and 
        local governments can take to prevent or alleviate the impact 
        of sharp and sustained increases in the price of natural gas, 
        heating oil and propane; and
            ``(4) recommendations on steps that companies engaged in 
        the production, refining, storage, transportation of heating 
        oil or propane, or any other activity related to the heating 
        oil industry or propane industry, can take to prevent or 
        alleviate the impact of sharp and sustained increases in the 
        price of heating oil and propane.
    ``(c) Information Requests.--The Secretary may request information 
necessary to prepare the Home Heating Readiness Report from companies 
described in subsection (b)(4).''.
    (b) Conforming and Technical Amendments.--The Energy Policy and 
Conservation Act is amended--
            (1) in the table of contents in the first section (42 
        U.S.C. prec. 6201), by inserting after the item relating to 
        section 106 the following:

``Sec. 107. Major fuel burning stationary source.
``Sec. 108. Annual home heating readiness reports.'';
        and
            (2) in section 107 (42 U.S.C. 6215), by striking ``Sec. 
        107. (a) No Governor'' and inserting the following:

``SEC. 107. MAJOR FUEL BURNING STATIONARY SOURCE.

    ``(a) No Governor''.

       TITLE VII--NATIONAL OIL HEAT RESEARCH ALLIANCE ACT OF 2000

SEC. 701. SHORT TITLE.

    This title may be cited as the ``National Oilheat Research Alliance 
Act of 2000''.

SEC. 702. FINDINGS.

    Congress finds that--
            (1) oilheat is an important commodity relied on by 
        approximately 30,000,000 Americans 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 oilheat 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, the general economy of the United States, and 
        the millions of Americans that rely on oilheat for commercial 
        and residential space and hot water heating.

SEC. 703. DEFINITIONS.

    In this title:
            (1) Alliance.--The term ``Alliance'' means a national 
        oilheat research alliance established under section 704.
            (2) Consumer education.--The term ``consumer education'' 
        means the provision of information to 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) Exchange.--The term ``exchange'' means an agreement 
        that--
                    (A) entitles each party or its customers to receive 
                oilheat from the other party; and
                    (B) requires only an insubstantial portion of the 
                volumes involved in the exchange to be settled in cash 
                or property other than the oilheat.
            (4) Industry trade association.--The term ``industry trade 
        association'' means an organization described in paragraph (3) 
        or (6) of section 501(c) of the Internal Revenue Code of 1986 
        that is exempt from taxation under section 501(a) of that Code 
        and is organized for the purpose of representing the oilheat 
        industry.
            (5) No. 1 distillate.--The term ``No. 1 distillate'' means 
        fuel oil classified as No. 1 distillate by the American Society 
        for Testing and Materials.
            (6) No. 2 dyed distillate.--The term ``No. 2 dyed 
        distillate'' means fuel oil classified as No. 2 distillate by 
        the American Society for Testing and Materials that is 
        indelibly dyed in accordance with regulations prescribed by the 
        Secretary of the Treasury under section 4082(a)(2) of the 
        Internal Revenue Code of 1986.
            (7) Oilheat.--The term ``oilheat'' means--
                    (A) No. 1 distillate; and
                    (B) No. 2 dyed distillate;
        that is used as a fuel for nonindustrial commercial or 
        residential space or hot water heating.
            (8) Oilheat industry.--
                    (A) In general.--The term ``oilheat industry'' 
                means--
                            (i) persons in the production, 
                        transportation, or sale of oilheat; and
                            (ii) persons engaged in the manufacture or 
                        distribution of oilheat utilization equipment.
                    (B) Exclusion.--The term ``oilheat industry'' does 
                not include ultimate consumers of oilheat.
            (9) Public member.--The term ``public member'' means a 
        member of the Alliance described in section 705(c)(1)(F).
            (10) Qualified industry organization.--The term ``qualified 
        industry organization'' means the National Association for 
        Oilheat Research and Education or a successor organization.
            (11) Qualified state association.--The term ``qualified 
        State association'' means the industry trade association or 
        other organization that the qualified industry organization or 
        the Alliance determines best represents retail marketers in a 
        State.
            (12) Retail marketer.--The term ``retail marketer'' means a 
        person engaged primarily in the sale of oilheat to ultimate 
        consumers.
            (13) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (14) Wholesale distributor.--The term ``wholesale 
        distributor'' means a person that--
                    (A)(i) produces No. 1 distillate or No. 2 dyed 
                distillate;
                    (ii) imports No. 1 distillate or No. 2 dyed 
                distillate; or
                    (iii) transports No. 1 distillate or No. 2 dyed 
                distillate across State boundaries or among local 
                marketing areas; and
                    (B) sells the distillate to another person that 
                does not produce, import, or transport No. 1 distillate 
                or No. 2 dyed distillate across State boundaries or 
                among local marketing areas.
            (15) State.--The term ``State'' means the several States, 
        except the State of Alaska.

SEC. 704. REFERENDA.

    (a) Creation of Program.--
            (1) In general.--The oilheat industry, through the 
        qualified industry organization, may conduct, at its own 
        expense, a referendum among retail marketers and wholesale 
        distributors for the establishment of a national oilheat 
        research alliance.
            (2) Reimbursement of cost.--The Alliance, if established, 
        shall reimburse the qualified industry organization for the 
        cost of accounting and documentation for the referendum.
            (3) Conduct.--A referendum under paragraph (1) shall be 
        conducted by an independent auditing firm.
            (4) Voting rights.--
                    (A) Retail marketers.--Voting rights of retail 
                marketers in a referendum under paragraph (1) shall be 
                based on the volume of oilheat sold in a State by each 
                retail marketer in the calendar year previous to the 
                year in which the referendum is conducted or in another 
                representative period.
                    (B) Wholesale distributors.--Voting rights of 
                wholesale distributors in a referendum under paragraph 
                (1) shall be based on the volume of No. 1 distillate 
                and No. 2 dyed distillate sold in a State by each 
                wholesale distributor in the calendar year previous to 
                the year in which the referendum is conducted or in 
                another 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 the State to 
                the total volume of No. 1 distillate and No. 2 dyed 
                distillate sold in that State.
            (5) Establishment by approval of two-thirds.--
                    (A) In general.--Subject to subparagraph (B), on 
                approval of 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 
                under section 707.
                    (B) Requirement of majority of retail marketers.--
                Except as provided in subsection (b), the oilheat 
                industry in a State shall not participate in the 
                Alliance if less than 50 percent of the retail marketer 
                vote in the State approves establishment of the 
                Alliance.
            (6) Certification of volumes.--Each person 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 the vote of the person.
            (7) Notification.--Not later than 90 days after the date of 
        enactment of this title, a qualified State association may 
        notify the qualified industry organization in writing that a 
        referendum under paragraph (1) will not be conducted in the 
        State.
    (b) Subsequent State Participation.--The oilheat industry in a 
State that has not participated initially in the Alliance may 
subsequently elect to participate by conducting a referendum under 
subsection (a).
    (c) Termination or Suspension.--
            (1) In general.--On the initiative of the Alliance or on 
        petition to the Alliance by retail marketers and wholesale 
        distributors representing 25 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 oilheat 
        industry favors termination or suspension of the Alliance.
            (2) Volume percentages required to terminate or suspend.--
        Termination or suspension shall not take effect unless 
        termination or suspension is approved by persons representing 
        more than one-half of the total volume of oilheat voted in the 
        retail marketer class or more than one-half of the total volume 
        of weighted No. 1 distillate and No. 2 dyed distillate voted in 
        the wholesale distributor class.
            (3) Termination by a state.--A State may elect to terminate 
        participation by notifying the Alliance that 50 percent of the 
        oilheat volume in the State has voted in a referendum to 
        withdraw.
    (d) Calculation of Oilheat Sales.--For the purposes of this section 
and section 705, 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 a calendar year or other 
representative period.

SEC. 705. MEMBERSHIP.

    (a) Selection.--
            (1) In general.--Except as provided in subsection 
        (c)(1)(C), the qualified industry organization shall select 
        members of the Alliance representing the oilheat industry in a 
        State from a list of nominees submitted by the qualified State 
        association in the State.
            (2) Vacancies.--A vacancy in the Alliance shall be filled 
        in the same manner as the original selection.
    (b) Representation.--In selecting members of the Alliance, the 
qualified industry organization shall make best efforts to select 
members that are representative of the oilheat 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) Number of Members.--
            (1) In general.--The membership of the Alliance shall be as 
        follows:
                    (A) One member representing each State with oilheat 
                sales in excess of 32,000,000 gallons per year.
                    (B) If fewer than 24 States are represented under 
                subparagraph (A), 1 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 subparagraph (A) and this 
                subparagraph to equal 24.
                    (C) 5 representatives of retail marketers, 1 each 
                to be selected by the qualified State associations of 
                the 5 States with the highest volume of annual oilheat 
                sales.
                    (D) 5 additional representatives of retail 
                marketers.
                    (E) 21 representatives of wholesale distributors.
                    (F) 6 public members, who shall be representatives 
                of significant users of oilheat, the oilheat research 
                community, State energy officials, or other groups 
                knowledgeable about oilheat.
            (2) Full-time owners or employees.--Other than the public 
        members, Alliance members shall be full-time owners or 
        employees of members of the oilheat industry, except that 
        members described in subparagraphs (C), (D), and (E) of 
        paragraph (1) may be employees of the qualified industry 
        organization or an industry trade association.
    (d) Compensation.--Alliance members shall receive no compensation 
for their service, nor shall Alliance members be reimbursed for 
expenses relating to their service, except that public members, on 
request, may be reimbursed for reasonable expenses directly related to 
participation in meetings of the Alliance.
    (e) Terms.--
            (1) In general.--Subject to paragraph (4), a member of the 
        Alliance shall serve a term of 3 years, except that a member 
        filling an unexpired term may serve a total of 7 consecutive 
        years.
            (2) Term limit.--A member may serve not more than 2 full 
        consecutive terms.
            (3) Former members.--A former member of the Alliance may be 
        returned to the Alliance if the member has not been a member 
        for a period of 2 years.
            (4) Initial appointments.--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.

SEC. 706. FUNCTIONS.

    (a) In General.--
            (1) Programs, projects; contracts and other agreements.--
        The Alliance--
                    (A) shall develop programs and projects and enter 
                into contracts or other agreements with other persons 
                and entities for implementing this title, including 
                programs--
                            (i) to enhance consumer and employee safety 
                        and training;
                            (ii) to provide for research, development, 
                        and demonstration of clean and efficient 
                        oilheat utilization equipment; and
                            (iii) for consumer education; and
                    (B) may provide for the payment of the costs of 
                carrying out subparagraph (A) with assessments 
                collected under section 707.
            (2) Coordination.--The Alliance shall coordinate its 
        activities with industry trade associations and other persons 
        as appropriate to provide efficient delivery of services and to 
        avoid unnecessary duplication of activities.
            (3) Activities.--
                    (A) Exclusions.--Activities under clause (i) or 
                (ii) of paragraph (1)(A) shall not include advertising, 
                promotions, or consumer surveys in support of 
                advertising or promotions.
                    (B) Research, development, and demonstration 
                activities.--
                            (i) In general.--Research, development, and 
                        demonstration activities under paragraph 
                        (1)(A)(ii) shall include--
                                    (I) all activities incidental to 
                                research, development, and 
                                demonstration of clean and efficient 
                                oilheat utilization equipment; and
                                    (II) the obtaining of patents, 
                                including payment of attorney's fees 
                                for making and perfecting a patent 
                                application.
                            (ii) Excluded activities.--Research, 
                        development, and demonstration activities under 
                        paragraph (1)(A)(ii) shall not include 
                        research, development, and demonstration of 
                        oilheat utilization equipment with respect to 
                        which technically feasible and commercially 
                        feasible operations have been verified, except 
                        that funds may be provided for improvements to 
                        existing equipment until the technical 
                        feasibility and commercial feasibility of the 
                        operation of those improvements have been 
                        verified.
    (b) Priorities.--In the development of programs and projects, the 
Alliance shall give priority to issues relating to--
            (1) research, development, and demonstration;
            (2) safety;
            (3) consumer education; and
            (4) training.
    (c) Administration.--
            (1) Officers; committees; bylaws.--The Alliance--
                    (A) shall select from among its members a 
                chairperson and other officers as necessary;
                    (B) may establish and authorize committees and 
                subcommittees of the Alliance to take specific actions 
                that the Alliance is authorized to take; and
                    (C) shall adopt bylaws for the conduct of business 
                and the implementation of this title.
            (2) Solicitation of oilheat industry comment and 
        recommendations.--The Alliance shall establish procedures for 
        the solicitation of oilheat industry comment and 
        recommendations on any significant contracts and other 
        agreements, programs, and projects to be funded by the 
        Alliance.
            (3) Advisory committees.--The Alliance may establish 
        advisory committees consisting of persons other than Alliance 
        members.
            (4) Voting.--Each member of the Alliance shall have 1 vote 
        in matters before the Alliance.
    (d) Administrative Expenses.--
            (1) In general.--The administrative expenses of operating 
        the Alliance (not including costs incurred in the collection of 
        assessments under section 707) plus amounts paid under 
        paragraph (2) shall not exceed 7 percent of the amount of 
        assessments collected in any calendar year, except that during 
        the first year of operation of the Alliance such expenses and 
        amounts shall not exceed 10 percent of the amount of 
        assessments.
            (2) Reimbursement of the secretary.--
                    (A) In general.--The Alliance shall annually 
                reimburse the Secretary for costs incurred by the 
                Federal Government relating to the Alliance.
                    (B) Limitation.--Reimbursement under subparagraph 
                (A) for any calendar year shall not exceed the amount 
                that the Secretary determines is twice the average 
                annual salary of 1 employee of the Department of 
                Energy.
    (e) Budget.--
            (1) Publication of proposed budget.--Before August 1 of 
        each year, the Alliance shall publish for public review and 
        comment a proposed budget for the next calendar year, including 
        the probable costs of all programs, projects, and contracts and 
        other agreements.
            (2) Submission to the secretary and congress.--After review 
        and comment under paragraph (1), the Alliance shall submit the 
        proposed budget to the Secretary and Congress.
            (3) Recommendations by the secretary.--The Secretary may 
        recommend for inclusion in the budget programs and activities 
        that the Secretary considers appropriate.
            (4) Implementation.--The Alliance shall not implement a 
        proposed budget until the expiration of 60 days after 
        submitting the proposed budget to the Secretary.
    (f) Records; Audits.--
            (1) Records.--The Alliance shall--
                    (A) keep records that clearly reflect all of the 
                acts and transactions of the Alliance; and
                    (B) make the records available to the public.
            (2) Audits.--
                    (A) In general.--The records of the Alliance 
                (including fee assessment reports and applications for 
                refunds under section 707(b)(4)) shall be audited by a 
                certified public accountant at least once each year and 
                at such other times as the Alliance may designate.
                    (B) Availability of audit reports.--Copies of each 
                audit report shall be provided to the Secretary, the 
                members of the Alliance, and the qualified industry 
                organization, and, on request, to other members of the 
                oilheat industry.
                    (C) Policies and procedures.--
                            (i) In general.--The Alliance shall 
                        establish policies and procedures for auditing 
                        compliance with this title.
                            (ii) Conformity with gaap.--The policies 
                        and procedures established under clause (i) 
                        shall conform with generally accepted 
                        accounting principles.
    (g) Public Access to Alliance Proceedings.--
            (1) Public notice.--The Alliance shall give at least 30 
        days' public notice of each meeting of the Alliance.
            (2) Meetings open to the public.--Each meeting of the 
        Alliance shall be open to the public.
            (3) Minutes.--The minutes of each meeting of the Alliance 
        shall be made available to and readily accessible by the 
        public.
    (h) Annual Report.--Each year the Alliance shall prepare and make 
publicly available a report that--
            (1) includes a description of all programs, projects, and 
        contracts and other agreements undertaken by the Alliance 
        during the previous year and those planned for the current 
        year; and
            (2) details the allocation of Alliance resources for each 
        such program and project.

SEC. 707. ASSESSMENTS.

    (a) Rate.--The assessment rate shall be equal to two-tenths-cent 
per gallon of No. 1 distillate and No. 2 dyed distillate.
    (b) Collection Rules.--
            (1) Collection at point of sale.--The assessment shall be 
        collected at the point of 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.
            (2) Responsibility for payment.--A wholesale distributor--
                    (A) shall be responsible for payment of an 
                assessment to the Alliance on a quarterly basis; and
                    (B) shall provide to the Alliance certification of 
                the volume of fuel sold.
            (3) No ownership interest.--A person that 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.
            (4) Failure to receive payment.--
                    (A) Refund.--A wholesale distributor that does not 
                receive payments from a purchaser for No. 1 distillate 
                or No. 2 dyed distillate within 1 year of the date of 
                sale may apply for a refund from the Alliance of the 
                assessment paid.
                    (B) Amount.--The amount of a refund shall not 
                exceed the amount of the assessment levied on the No. 1 
                distillate or No. 2 dyed distillate for which payment 
                was not received.
            (5) Importation after point of sale.--The owner of No. 1 
        distillate or No. 2 dyed distillate imported after the point of 
        sale--
                    (A) shall be responsible for payment of the 
                assessment to the Alliance at the point at which the 
                product enters the United States; and
                    (B) shall provide to the Alliance certification of 
                the volume of fuel imported.
            (6) Late payment charge.--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 title.
            (7) Alternative collection rules.--The Alliance may 
        establish, or approve a request of the oilheat industry in a 
        State for, an alternative means of collecting the assessment if 
        another means is determined to be more efficient or more 
        effective.
    (c) Sale for Use Other Than as Oilheat.--No. 1 distillate and No. 2 
dyed distillate sold for uses other than as oilheat are excluded from 
the assessment.
    (d) Investment of Funds.--Pending disbursement under a program, 
project or contract or other agreement the Alliance may invest funds 
collected through assessments, and any other funds received by the 
Alliance, only--
            (1) in obligations of the United States or any agency of 
        the United States;
            (2) in general obligations of any State or any political 
        subdivision of a State;
            (3) in any interest-bearing account or certificate of 
        deposit of a bank that is a member of the Federal Reserve 
        System; or
            (4) in obligations fully guaranteed as to principal and 
        interest by the United States.
    (e) State, Local, and Regional Programs.--
            (1) Coordination.--The Alliance shall establish a program 
        coordinating the operation of the Alliance with the operator of 
        any similar State, local, or regional program created under 
        State law (including a regulation), or similar entity.
            (2) Funds made available to qualified state associations.--
                    (A) In general.--
                            (i) Base amount.--The Alliance shall make 
                        available to the qualified State association of 
                        each State an amount equal to 15 percent of the 
                        amount of assessments collected in the State.
                            (ii) Additional amount.--
                                    (I) In general.--A qualified State 
                                association may request that the 
                                Alliance provide to the association any 
                                portion of the remaining 85 percent of 
                                the amount of assessments collected in 
                                the State.
                                    (II) Request requirements.--A 
                                request under this clause shall--
                                            (aa) specify the amount of 
                                        funds requested;
                                            (bb) describe in detail the 
                                        specific uses for which the 
                                        requested funds are sought;
                                            (cc) include a commitment 
                                        to comply with this title in 
                                        using the requested funds; and
                                            (dd) be made publicly 
                                        available.
                                    (III) Direct benefit.--The Alliance 
                                shall not provide any funds in response 
                                to a request under this clause unless 
                                the Alliance determines that the funds 
                                will be used to directly benefit the 
                                oilheat industry.
                                    (IV) Monitoring; terms, conditions, 
                                and reporting requirements.--The 
                                Alliance shall--
                                            (aa) monitor the use of 
                                        funds provided under this 
                                        clause; and
                                            (bb) impose whatever terms, 
                                        conditions, and reporting 
                                        requirements that the Alliance 
                                        considers necessary to ensure 
                                        compliance with this title.

SEC. 708. MARKET SURVEY AND CONSUMER PROTECTION.

    (a) Price Analysis.--Beginning 2 years after establishment of the 
Alliance and annually thereafter, the Secretary of Commerce, using only 
data provided by the Energy Information Administration and other public 
sources, shall prepare and make available to the Congress, the 
Alliance, the Secretary of Energy, and the public, an analysis of 
changes in the price of oilheat relative to other energy sources. The 
oilheat price analysis shall compare indexed changes in the price of 
consumer grade oilheat to a composite of indexed changes in the price 
of residential electricity, residential natural gas, and propane on an 
annual national average basis. For purposes of indexing changes in 
oilheat, residential electricity, residential natural gas, and propane 
prices, the Secretary of Commerce shall use a 5-year rolling average 
price beginning with the year 4 years prior to the establishment of the 
Alliance.
    (b) Authority To Restrict Activities.--If in any year the 5-year 
average price composite index of consumer grade oilheat exceeds the 5-
year rolling average price composite index of residential electricity, 
residential natural gas, and propane in an amount greater than 10.1 
percent, the activities of the Alliance shall be restricted to research 
and development, training, and safety matters. The Alliance shall 
inform the Secretary of Energy and the Congress of any restriction of 
activities under this subsection. Upon expiration of 180 days after the 
beginning of any such restriction of activities, the Secretary of 
Commerce shall again conduct the oilheat price analysis described in 
subsection (a). Activities of the Alliance shall continue to be 
restricted under this subsection until the price index excess is 10.1 
percent or less.

SEC. 709. COMPLIANCE.

    (a) In General.--The Alliance may bring a civil action in United 
States district court to compel payment of an assessment under section 
707.
    (b) Costs.--A successful action for compliance under this section 
may also require payment by the defendant of the costs incurred by the 
Alliance in bringing the action.

SEC. 710. LOBBYING RESTRICTIONS.

    No funds derived from assessments under section 707 collected by 
the Alliance shall be used to influence legislation or elections, 
except that the Alliance may use such funds to formulate and submit to 
the Secretary recommendations for amendments to this title or other 
laws that would further the purposes of this title.

SEC. 711. DISCLOSURE.

    Any consumer education activity undertaken with funds provided by 
the Alliance shall include a statement that the activities were 
supported, in whole or in part, by the Alliance.

SEC. 712. VIOLATIONS.

    (a) Prohibition.--It shall be unlawful for any person to conduct a 
consumer education activity, undertaken with funds derived from 
assessments collected by the Alliance under section 707, that 
includes--
            (1) a reference to a private brand name;
            (2) a false or unwarranted claim on behalf of oilheat or 
        related products; or
            (3) a reference with respect to the attributes or use of 
        any competing product.
    (b) Complaints.--
            (1) In general.--A public utility that is aggrieved by a 
        violation described in subsection (a) may file a complaint with 
        the Alliance.
            (2) Transmittal to qualified state association.--A 
        complaint shall be transmitted concurrently to any qualified 
        State association undertaking the consumer education activity 
        with respect to which the complaint is made.
            (3) Cessation of activities.--On receipt of a complaint 
        under this subsection, the Alliance, and any qualified State 
        association undertaking the consumer education activity with 
        respect to which the complaint is made, shall cease that 
        consumer education activity until--
                    (A) the complaint is withdrawn; or
                    (B) a court determines that the conduct of the 
                activity complained of does not constitute a violation 
                of subsection (a).
    (c) Resolution by Parties.--
            (1) In general.--Not later than 10 days after a complaint 
        is filed and transmitted under subsection (b), the complaining 
        party, the Alliance, and any qualified State association 
        undertaking the consumer education activity with respect to 
        which the complaint is made shall meet to attempt to resolve 
        the complaint.
            (2) Withdrawal of complaint.--If the issues in dispute are 
        resolved in those discussions, the complaining party shall 
        withdraw its complaint.
    (d) Judicial Review.--
            (1) In general.--A public utility filing a complaint under 
        this section, the Alliance, a qualified State association 
        undertaking the consumer education activity with respect to 
        which a complaint under this section is made, or any person 
        aggrieved by a violation of subsection (a) may seek appropriate 
        relief in United States district court.
            (2) Relief.--A public utility filing a complaint under this 
        section shall be entitled to temporary and injunctive relief 
        enjoining the consumer education activity with respect to which 
        a complaint under this section is made until--
                    (A) the complaint is withdrawn; or
                    (B) the court has determined that the consumer 
                education activity complained of does not constitute a 
                violation of subsection (a).
    (e) Attorney's Fees.--
            (1) Meritorious case.--In a case in Federal court in which 
        the court grants a public utility injunctive relief under 
        subsection (d), the public utility shall be entitled to recover 
        an attorney's fee from the Alliance and any qualified State 
        association undertaking the consumer education activity with 
        respect to which a complaint under this section is made.
            (2) Nonmeritorious case.--In any case under subsection (d) 
        in which the court determines a complaint under subsection (b) 
        to be frivolous and without merit, the prevailing party shall 
        be entitled to recover an attorney's fee.
    (f) Savings Clause.--Nothing in this section shall limit causes of 
action brought under any other law.

SEC. 713. SUNSET.

    This title shall cease to be effective as of the date that is 4 
years after the date on which the Alliance is established.

            Attest:

                                                             Secretary.
106th CONGRESS

  2d Session

                               H. R. 2884

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