[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2884 Enrolled Bill (ENR)]

        H.R.2884

                       One Hundred Sixth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
             the twenty-fourth day of January, two thousand


                                 An Act


 
   To extend energy conservation programs under the Energy Policy and 
               Conservation Act through fiscal year 2003.

    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 ``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 striking ``and'' at the end of paragraph (1)(A) 
            and by striking ``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 5 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 No. 2 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 
    the 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 the 
    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 1 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 6 
months of the date of the 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 2 years after the 
date of the 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 the 
    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), 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 
        subparagraph (A) and this subparagraph to equal 24.
            (C) Five representatives of retail marketers, one each to 
        be selected by the qualified State associations of the five 
        States with the highest volume of annual oilheat sales.
            (D) Five additional representatives of retail marketers.
            (E) Twenty-one representatives of wholesale distributors.
            (F) Six 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 two 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 one 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 one 
        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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.