[Congressional Record Volume 146, Number 134 (Tuesday, October 24, 2000)]
[House]
[Pages H10554-H10565]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           ENERGY ACT OF 2000

  Mr. GREENWOOD. Mr. Speaker, I move to suspend the rules and concur in 
the Senate amendment to the bill (H.R. 2884) to extend energy 
conservation programs under the Energy Policy

[[Page H10555]]

and Conservation Act through fiscal year 2003.
  The Clerk read as follows:

       Senate 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;

[[Page H10556]]

       ``(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

[[Page H10557]]

     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

[[Page H10558]]

     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

[[Page H10559]]

       (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.

[[Page H10560]]

       (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.

[[Page H10561]]

     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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Pennsylvania (Mr. Greenwood) and the gentleman from Massachusetts (Mr. 
Markey) each will control 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania (Mr. Greenwood).


                             General Leave

  Mr. GREENWOOD. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks and include extraneous material on H.R. 2884.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Pennsylvania?
  There was no objection.
  Mr. GREENWOOD. Mr. Speaker, I yield myself 5 minutes.
  Mr. Speaker, I rise in support of H.R. 2884, a bill to reauthorize 
portions of the Energy Policy and Conservation Act (EPCA) through 
September 30, 2003.
  EPCA authorizes the Strategic Petroleum Reserve and U.S. 
participation in the International Energy Agency. These programs are a 
crucial component of our energy security and are our first line of 
defense in a real energy emergency.
  The U.S. is now well over 50 percent dependent upon foreign oil. 
Americans have been reminded again and again this year why energy 
security is so important. Reauthorizing these programs is an important 
piece of business we must accomplish before we adjourn this year.
  H.R. 2884 also contains other important provisions which will enhance 
our energy security and reduce the vulnerability of the Northeast, 
where I come from, to heating oil shortages.
  In addition to reauthorizing the Reserve, it creates a Home Heating 
Oil Reserve in the Northeast and establishes a trigger for when it can 
be drawn down.
  The bill also requires annual home heating readiness reports and 
encourages education on the benefits of filling heating oil tanks in 
the summer. H.R. 2884 also contains provisions that will help reduce 
our dependence on foreign oil. It allows for the Reserve to be filled 
with domestic oil when oil prices are low. It requires the U.S. 
Geological Survey to conduct an inventory of oil and gas reserves on 
Federal lands.
  The bill also makes important changes to the Federal Energy 
Management Program, making it easier for Federal managers to enter into 
energy savings performance contracts.
  H.R. 2884 also updates the low-income weatherization program. In 
addition, H.R. 2884 contains provisions allowing small hydroelectric 
projects in Alaska to be licensed faster.
  Finally, H.R. 2884 includes a provision that is of particular 
interest to me because it is based on legislation I introduced in the 
105th Congress and the beginning of this Congress, H.R. 380. This bill 
establishes the National Oilheat Research Alliance Act, allowing for 
the creation of an organization to do research on increasing heating 
oil's efficiency.
  Mr. Speaker, I ask that all Members of the House join with me in 
support of this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this is a very, very important piece of legislation. The 
bill that we are considering today in fact authorizes several very 
important discrete provisions which are collectively going to really 
give tremendous amount of protection to the American people.
  First of all, this legislation reauthorizes the Strategic Petroleum 
Reserve. It reauthorizes it all the way to September 30, 2003. The 
authorization for the Strategic Petroleum Reserve expired back in March 
of this year, and we have been operating without that specific 
authorization.
  Now, why is the Strategic Petroleum Reserve important? Well, as we 
saw only a few weeks ago, when the President of the United States 
announced that he was going to deploy the Strategic Petroleum Reserve, 
engage in a swap of about 30 million barrels of oil, the price of crude 
oil dropped from $38 a barrel to down to $32 a barrel.
  Now, that shows up in tremendous benefits for consumers all across 
the country, not only in home heating oil, but also in gasoline long 
term. In fact, analysts predicted that if the Strategic Petroleum 
Reserve had not been deployed, in other words, if the President had not 
made it clear that he was going to pare down the OPEC nations by 
deploying the weapon that we have in our country, this 570 million-
barrel Strategic Petroleum Reserve, then the price of a barrel of crude 
oil would have gone up to $42 to $44 a barrel.
  So, without question, this is a critical weapon to be used on behalf 
of American consumers all across the country and it has been 
successful.
  In fact, without question, in the absence of that Strategic Petroleum 
Reserve, we would have been held hostage over the last month to the 
whims of OPEC nations. But because we have it, Saudi Arabia and others 
have now said quite clearly that they will increase production as a way 
of ensuring that the extra oil is in the marketplace because they 
understand that if we do deploy the Strategic Petroleum Reserve then 
their oil becomes that much less valuable.
  Secondly, there is a provision built into the bill which creates a 
regional Home Heating Oil Reserve. Now, this is the language which 
originated in the House language which I authored earlier this year. It 
is language which will for the first time legally authorize the 
construction of a Home Heating Oil Reserve. I am very glad that we have 
been able to reach a workable consensus with the Senate that will allow 
this to be put in place on a permanent basis.
  Now, let me tell my colleagues briefly why this is so important to 
families in the Northeast. Last winter was one of the mildest winters 
in the history of the Northeast, but despite that we saw dramatic price 
bites in home heating

[[Page H10562]]

oil prices during a very brief cold snap in the end of January and the 
beginning of February. So that makes it very, very difficult if it is a 
mild winter for an ordinary family up in the Northeast to be able to 
project what their home heating oil bills might be during a more 
difficult winter.
  This year we are on the verge of another crisis. The National Weather 
Service predicts a colder winter than last year, a return to the 
Northeastern winters that make Texas an attractive place to be during 
the winter.
  On top of that, stocks of home heating oil in New England are more 
than 70 percent below last year's levels, and that adds up to high 
prices for consumers throughout the Northeast. In fact, in 
Massachusetts, winter heating bills will be $900 for an average 
customer in the Northeast. That is $140 more than last year. The 
families in the Northeast should not have to choose between heating and 
eating.
  To help address those supply shortfalls and price spikes, the 
Secretary established a 2 million-barrel Home Heating Oil Reserve in 
the Northeast under the existing EPCA provisions. The issue, however, 
traces its roots all the way back to 1990 when Congressman Carlos 
Moorhead from California and Norman Lent from New York and I authored 
an amendment to EPCA which created on an interim basis a federally 
sponsored regional Home Heating Oil Reserve.
  Today we put this reserve on a permanent basis. Specifically, we 
first authorized the establishment of a Northeast Home Heating Oil 
Reserve of up to 2 million barrels. Two, we authorized the Secretary of 
Energy to purchase, contract for, or lease storage facilities for the 
Reserve. Three, we established conditions under which a release from 
the Reserve would be triggered. Four, we required the Secretary to 
submit a report to the President and Congress describing DOE's plans 
for setting up the Reserve and acquiring petroleum distillate for the 
Reserve. Five, we establish an account in the Treasury into which funds 
appropriated to fund the Reserve would be deposited, which could then 
be withdrawn from the account by DOE to operate the Reserve. And six, 
we authorize appropriations for the operation of the Reserve through 
2003.
  So it is a great provision.
  Finally, the third EPCA-related provision involves the classic 
Austin-Boston piece of legislation that the gentleman from Texas (Mr. 
Barton) included as an amendment along with my home heating oil 
language in the House version of the bill.
  This provision says that when the price of stripper well goes below 
$15 a barrel, the Department of Energy has the authority to purchase 
this oil to fill the Strategic Petroleum Reserve. This helps to keep 
the price of stripper well oil high enough so that there is an 
incentive for that industry to continue to make the proper investment 
in maintaining these wells as viable sources of energy for our country.
  Finally, the bill would also include several extraneous matters: 
changes to the Federal Energy Management Program, changes to the 
weatherization grants program, establishing a heating oil research 
checkoff program, and giving the Federal Energy Regulatory Commission 
the authority to delegate regulatory authority over small hydroelectric 
projects to the State of Alaska.
  Of these additional provisions, only the last one is controversial. 
Senator Murkowski has added the Alaska hydroelectric provisions to the 
bill that the administration and the environmental community have 
concerns about. It exempts hydropower projects of five megawatts or 
less from FERC hydropower licensing requirements, including 
environmental mitigation conditions imposed on licenses.
  I believe it is unfortunate that this unrelated provision should be 
included in a bill dealing with a potential crisis that could affect 
families in the Northeast and across our entire country.
  However, the bill generally deals with the Strategic Petroleum 
Reserve and the regional Home Heating Oil Reserve. Both of these 
provisions are critical to the long-term economic and national security 
interests of our country.
  I urge a very strong yes vote from every Member of this body.
  Mr. GREENWOOD. Mr. Speaker, I reserve the balance of my time.
  Mr. MARKEY. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Texas (Mr. Hall).

                              {time}  1230

  Mr. HALL of Texas. Mr. Speaker, I thank the gentleman from 
Massachusetts (Mr. Markey) for yielding me this time.
  Mr. Speaker, I, of course, am pleased to support H.R. 2884, which has 
been pointed out to be an Energy Policy and Conservation Act and gives 
the Department of Energy some authority to continue operating the 
Strategic Petroleum Reserve that we call SPR. Given current tensions in 
the Middle East, it is not surprising to me that Congress feels that 
they must enact legislation to give the President authority to draw 
down and deploy the SPR. This bill authorizes some other provisions 
that the gentleman from Massachusetts (Mr. Markey) has pointed out that 
are very good.
  Actually, the gentleman from Massachusetts (Mr. Markey) has problems 
in the North and the East with heating oil, and I certainly subscribe 
to those. He and I have tried to work together to come up with a 
solution to where we would be fair with those that produced energy and 
fair with those who desperately need it in the North and East. We are 
still working on that, but this bill authorizes a northeast heating oil 
reserve and permits DOE to fill SPR with stripper wells in Texas and in 
other areas when the prices fall below $15 a barrel.
  That is the amendment of the gentleman from Texas (Mr. Barton) that I 
certainly support. That helps those that produce it and also helps 
those that need it. Similar provisions were included in the bill 
previously as reported by the Committee on Commerce and it is a good 
thing that the Senate bill retained these beneficial amendments to the 
current law.
  The bill also includes and addresses several other energy issues. It 
will improve energy conservation in Federal buildings; aid in the 
development of small hydroelectric projects in Alaska; update and 
improve the weatherization program and establish a heating oil checkoff 
program for consumer education and safety. It is a good bill, and this 
bill helps. The President's order to use some of the SPR, maybe if it 
was only for 6 or 8 days even helped the spirit of Americans who were 
faced with $2 gas and gas that could go on up from there, but really it 
is my feeling that the real answer lies on the North Slope and other 
shut-in areas in the lower 48 States and the ocean floor where they 
tell us we cannot drill; where if we could drill we might solve this 
and those gasoline prices might go to the left and drop back down below 
a dollar. Energy is national asset. Ten States produce it. My State is 
one of them. The other 40 use it. It is hard to get good energy 
legislation.
  So how important is energy in the every day activities of this 
Congress? Energy is very important. It is a national asset. Countries 
have fought for energy. Our kids would have to fight for energy if we 
do not address it ourselves. Hitler went east into the Ploesti oil 
fields for energy. Japan went south into Malaysia for energy. We sent 
400,000 kids to the desert over there for energy. So energy is 
important, and I do not believe that it hurts to get it off of the 
ocean floor. I myself do not think that an offshore rig looks nearly as 
bad to people as a troop ship loaded with American boys and girls going 
off to some far away country to fight for energy.
  Mr. Speaker, it is a good bill, and I support it.
  Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.
  The gentleman from Texas (Mr. Hall) has spent so much time explaining 
to me the value of stripper wells that at least for the purpose of 
discussing that issue I become a member of the Texas delegation because 
of the excellent educational work that he has done on me over the last 
20 years and the gentleman from Texas (Mr. Barton), whose amendment it 
was, that ultimately was included in that legislation.
  In turn, Mr. Speaker, the gentleman from Maine (Mr. Baldacci), by the 
way, formerly a part of Massachusetts, has been the most articulate 
advocate for the creation of a regional home heating oil reserve.

[[Page H10563]]

  Mr. Speaker, I yield such time as he may consume to the gentleman 
from Maine (Mr. Baldacci).
  Mr. BALDACCI. Mr. Speaker, I do not know where to begin. I am afraid 
to begin anywhere at this point, but I want to thank the gentleman from 
Massachusetts (Mr. Markey) for yielding me this time. It is not that we 
have not enjoyed the relationship we had with Massachusetts in the past 
but we found being off on our own we have been able to grow and we do 
appreciate that.
  He has done a great job and has been a real leader on this issue and 
someone who I have been able to lean on and gain information and 
background and expertise from as we are dealing with these energy 
issues, and his experience has been very helpful. To be able to have 
him as a neighbor in Massachusetts to work on these issues has been 
very beneficial to the State of Maine, and we thank him for that.
  I also want to thank the membership on the other side of the aisle 
for being able to come together to at least put together the beginning 
of a comprehensive energy policy, which I think balances the interests 
of both what is needed in the Northeast and at the same time to 
recognize the difficulties that have been happening in the South in 
terms of when oil was below $15 a barrel or was $10 a barrel and oil 
wells were being capped in the lower 48 and oil workers were being laid 
off.
  I think we are beginning to establish that relationship and 
understanding what has taken place here nationally so we are not just 
responding at one time and not at another. I compliment the people who 
have been able to work together, as I have been working on this 
legislation and other efforts to bring this to this floor. In the State 
of Maine, people are looking at facing higher heating bills that are 
increasing about $75 a month more than they did last year, and it is 
not even November yet and it has already snowed twice in Maine. That 
does not bode well for people scraping by to heat their homes and to be 
able to feed their families.
  We dealt with this in this House 6 months ago, in the Senate less 
than 6 days ago; and it is about time that we have been able to pass 
this step up and finish the work to get this bill reauthorized so that 
we could put this on a permanent basis and not have to confront it on 
an annual basis or on a temporary basis. The framework in this bill, 
with its weatherization improvements and flexibilities, in eliminating 
the State share, in terms of its program and being able to help out and 
establish a northeast heating oil reserve so we can have an insurance 
policy against this happening again, whereas the gentleman from 
Massachusetts (Mr. Markey) was talking about we were so dangerously low 
that had we had a northeaster followed by the cold weather that we got 
that first week we would have actually run out of oil, to be able to 
have this insurance policy, be able to have the two million barrels 
there of refined home heating oil to be able to respond in an emergency 
will be a great sense of relief and insurance policy to the people in 
the northeast.
  The steps taken by this administration in the release of the 
Strategic Petroleum Reserve, when oil was getting dangerously close to 
$40 a barrel, when the President announced that he was authorizing the 
release of the SPR, it immediately had an impact where it brought that 
price down to $31 a barrel. And now with this going out and the 
contracts being bidded on, we are looking at oil around $31, $32 a 
barrel and a much more reasonable situation at this particular point; 
and we are hopeful for further diminishment of that to a much more 
reasonable level where people can afford it better, but it has had an 
impact.
  For Congress to finally give the President the legal authority to be 
able to release from the Strategic Petroleum Reserve in order to 
protect our country's economy and our national security, I think we are 
also to be commended in a very bipartisan way. So I want to thank all 
of those Members for working together to fashion this legislation. I 
look at this as a beginning of our energy policy and look forward to 
the Members working together to build on this energy policy for the 
future.
  Mr. MARKEY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I would complete the debate by thanking the majority for 
their patient consideration of this legislation. It is very important 
that it pass this year; and I want to compliment them for reaching this 
conclusion, which I think is ultimately going to benefit our country 
greatly in protecting us against the per se antitrust violations which 
the OPEC nations engage in but because we have no legal authority to do 
anything about it. Only by the establishment and ultimate deployment of 
a Strategic Petroleum Reserve or a regional home heating oil reserve 
are we able to protect the American consumers.
  The gentleman from Maine (Mr. Baldacci), the gentleman from Texas 
(Mr. Hall), all the members who worked on it, especially the gentleman 
from Pennsylvania (Mr. Greenwood) and the gentleman from Texas (Mr. 
Barton) and the gentleman from Virginia (Mr. Bliley), deserve all the 
credit in the world for the successful conclusion.
  Mrs. MALONEY of New York. Mr. Speaker, I support this legislation 
which will reauthorize the Strategic Petroleum Reserve and will finally 
authorize the desperately needed Northeast Home Heating Oil Reserve. I 
do not need to remind my colleagues how important the Strategic 
Petroleum Reserve and the new Northeast Home Heating Oil Reserve are to 
the people in this Nation, and especially to my constituents and others 
in the northeast. Last month's swap of oil from the Strategic Reserve 
has kept gas and heating oil rates down even as turmoil in the Middle 
East has prompted market uncertainty. Consumers have benefited from 
this swap and they will likely continue to do so.
  The need for this legislation is clear. What is not so clear is why 
we are considering this bill, which passed the House in April, during 
the last week of this session. Apparently, some of our colleagues in 
the other body thought it would be a good idea to attach an amendment 
to this legislation that would have created a huge loophole for the oil 
industry to avoid paying the appropriate amount of royalties for oil 
taken from Federal lands. The rider would have authorized and expanded 
the controversial Royalty-in-Kind Program which would give the oil 
companies the ability to pay their royalties in kind, not in cash as 
they do now. It would have encouraged the Interior Department to take 
substantially more royalties in kind. That means that the Federal 
Government would suddenly find itself in the oil business. The Interior 
Department would be forced to transport, market, and sell massive 
quantities of oil and natural gas.
  Mr. Speaker, I honestly thought that state-run industry had been 
discredited after the fall of the Soviet Union. Now, it seems some of 
our friends on the other side of the aisle want to give it a try. I 
should also point out that in 1998, the GAO specifically said that 
royalty in kind was unlikely to be profitable for the taxpayers. Now, 
after running the pilot programs for less than 2 years, the Interior 
Department admits they still do not have a revenue analysis of the 
program. We have no data available to determine if this program is 
breaking even. I would like to enter into the Record a letter I sent to 
Interior Secretary Babbitt on this issue which further describes the 
many problems with the Royalty-in-Kind Program and urges him to resist 
efforts to expand this program.
  So--why was this issue even on the table? I will tell you why--
because the oil industry, which has already seen skyrocketing profits, 
decided to try and shortchange the Federal Government yet again. I am 
frankly astonished that anyone would consider attaching a giveaway to 
the oil industry in the midst of a bill designed to help consumers deal 
with rising oil prices.
  Mr. Speaker, this year we have seen consumers and businesses continue 
to absorb higher energy prices. At the same time, industry profits have 
continued to soar and OPEC nations have failed to adequately increase 
supplies. Even if heating oil prices remain stagnant, the outlook for 
the winter is grim. Now is the time to focus on long-term energy 
strategies that will help consumers and businesses, not pad the pockets 
of wealthy oil companies. I urge my colleagues to support this 
legislation and other sensible energy strategies and to avoid many of 
the oil-industry giveaways that are being circulated as false solutions 
to our Nation's energy problems.

                                    Congress of the United States,


                                     House of Representatives,

                               Washington, DC, September 13, 2000.
     Hon. Bruce Babbitt,
     Secretary of the Interior,
     Washington, DC.
       Dear Secretary Babbitt: It has recently come to my 
     attention that Senator Murkowski, without any committee 
     consideration, will offer an amendment to drastically expand 
     the Royalty-in-Kind program. As a Member who has worked for 
     years to make sure that taxpayers receive the fair amount of 
     oil royalty payments, I am extremely concerned that this 
     proposed amendment could

[[Page H10564]]

     seriously affect the ability of the Federal government to 
     collect the appropriate amount of royalties from oil taken 
     from Federal lands.
       Specifically, I am concerned that this amendment would 
     replace the existing standard for ``fair market value'' of 
     oil sold from Federal lands with one that is vaguely worded 
     and potentially designed to benefit the oil industry's legal 
     challenges to the recently enacted oil valuation rule. 
     Earlier this year, after years of industry resistance, your 
     Department was finally able to implement a new oil and gas 
     valuation rule to ensure that the Federal government is 
     properly reimbursed for oil taken from Federal lands. The new 
     rule requires oil companies to value oil based on market-
     based spot pricing (i.e., fair market value) instead of so-
     called ``posted prices'' which companies determine on their 
     own. As a result of these changes, the Federal government 
     will finally end an industry scam that was costing taxpayers 
     more than $66 million each year. Language to fundamentally 
     redefine the ``fair market value'' of oil in statute could 
     effectively undermine the new valuation regulations. This is 
     completely unacceptable. This issue is too important to be 
     rushed through Congress in the waning hours of this session.
       In addition, I am extremely concerned that Congress is on 
     the verge of fully authorizing a program which has never been 
     considered in committee and which the General Accounting 
     Office (GAO) expressed concern about as recently as August 
     1998. The GAO is currently reexamining the Royalty-in-Kind 
     program to see if any progress has been made. I strongly urge 
     you to oppose this legislation until we have the opportunity 
     to hear from the GAO and the appropriate committees on this 
     critically important issue.
       Instead of this unnecessary amendment, I ask that you urge 
     the Senate to recede to the House on the FY 2001 Interior 
     Appropriations bill and allow the Royalty-in-Kind pilot 
     program to deduct transportation processing costs for one 
     year. In that way, we can learn more about the viability of 
     the concept and also allow Congress the time to more 
     carefully and collegially consider this proposal.
       I look forward to hearing your views on this legislation 
     and hope you will join me in publicly opposing it. Thanks in 
     advance for your consideration.
           Sincerely,
                                               Carolyn B. Maloney,
     Member of Congress.
                                  ____

                                    Congress of the United States,


                                     House of Representatives,

                               Washington, DC, September 28, 2000.
     Hon. Bruce Babbitt,
     Secretary of the Interior,
     Washington, DC.
       Dear Secretary Babbitt: I write to express my continued 
     opposition to a recently proposed amendment sponsored by 
     Senator Murkowski concerning the Royalty-in-Kind program 
     which I am increasingly convinced will fundamentally affect 
     the ability of the Federal Government to collect the 
     appropriate amount of royalties from oil taken from Federal 
     lands.
       I recently contacted Walter Rosenbusch, Director of the 
     Minerals Management Service, to voice my concern that the 
     language authorizing the Royalty-in-Kind program could 
     potentially undermine the new regulations governing royalties 
     taken in value. Mr. Rosenbusch informed me that they were 
     assured by the Interior Department Solicitor's office that 
     the language would not harm the new regulations. I requested 
     a copy of the Solicitor's opinion. Mr. Rosenbusch informed me 
     that they had not done a written analysis of the language and 
     so a written opinion was not available. I requested a written 
     version immediately. We received the memo two days later 
     (attached).
       I am extremely disturbed that the memo was not contemplated 
     until after my request, ten days after the language was made 
     public and weeks since it had been in Interior's possession. 
     Given the highly controversial nature and complexity of the 
     oil valuation rules and the fact that the regulations add $66 
     million to the Treasury each year, I believe this proposed 
     legislation warrants more thorough consideration. The fact 
     that oil industry representatives were intimately involved in 
     the drafting of the amendment further increases my suspicion 
     and alarm about this language.
       Alarmed about the lack of concern and analysis from your 
     solicitor's office, I have asked an outside attorney and 
     expert on the oil industry litigation to examine the proposed 
     language to determine the potential damage this legislation 
     could do to current oil valuation rules. I have attached a 
     copy of this memorandum which elucidates numerous problems 
     with this amendment and clearly explains that ``the failure 
     of the amendment to preclude the Secretary from conducting 
     in-kind sales when his own regulations would mandate a higher 
     price clearly undermines those regulations.'' The memo goes 
     on to explain that ``the introduction of a second definition 
     of `fair market value' could be interpreted as an 
     acknowledgment that leasing activities are subject to a 
     standard of something less than a price that a willing buyer 
     would pay to a willing seller, with opposing economic 
     interests in an open and competitive market. This 
     interpretation threatens not only Interior's regulations but 
     also litigation over past royalties.'' I believe these 
     specific concerns and the others listed in the memorandum 
     clearly show the numerous flaws with this bill and why it 
     demands the Administration's opposition.
       Finally, I am alarmed to discover that we are considering 
     an expansion of the RIK program without the benefit of a 
     complete revenue analysis. Moreover, the language being 
     considered fails to include common-sense performance measures 
     to ensure that the program RIK program is revenue positive.
       For all of these reasons, I remain opposed to this 
     legislation and I ask that you urge the Senate to recede to 
     the House on the FY 2001 Interior Appropriations bill and 
     allow the Royalty-in-Kind pilot program to deduct 
     transportation and processing costs for one year. I am 
     certain that when you have the opportunity to closely examine 
     the potential problems created by this ill-conceived 
     amendment you will join me in asking the Senate to postpone 
     the passage of this expansive and complicated legislation 
     until we are able to resolve some of these concerns.
           Sincerely,
                                               Carolyn B. Maloney,
                                               Member of Congress.
  Mrs. McCARTHY of New York. Mr. Speaker, I rise in strong support of 
the Senate Amendments to (H.R. 2884), the Energy Policy and 
Conservation Act.
  Energy consumers on Long Island and throughout this Northeast have 
been waiting for this important legislation. With home heating oil 
prices moving upward in New York state, it is imperative that the 
Congress acts now.
  This legislation authorizes the establishment of a two million-barrel 
regional Home Heating Oil Reserve in the Northeast. It specifies that 
oil can only be released from the Reserve if the President finds there 
is a severe energy supply interruption and permits the release of the 
oil on specific market conditions. These safeguards make sense.
  The legislation also expands the weatherization program to help 
homeowners make their residences more energy efficient.
  The Energy Information Administration is currently projecting home 
heating oil price increases of 19 cents per gallon over the average 
levels paid last year.
  Mr. Speaker, last winter's energy crisis demonstrated the Congress 
and the President must do more to stabilize energy price spikes. This 
legislation is a positive step in that direction.
  I urge my colleagues to support the Senate Amendments to H.R. 2884.
  Mr. GILMAN. Mr. Speaker, I rise in strong support of H.R. 2884, which 
amends the Energy Policy and Conservation Act through FY 2003. H.R. 
2884 reauthorizes the authority of the Department of Energy to lease 
oil or buy for, operate, and draw down from the Strategic Petroleum 
Reserve (SPR) through 2003. The SPR was authorized in 1975 to protect 
our Nation against the recurrence of the Arab oil embargo of 1973-74, 
which nearly crippled our Nation. When the U.S. Congress initially 
authorized the SPR in the Energy Policy and Conservation Act, our 
intent was to create a large reserve of crude oil that would prevent 
future disruptions in supply, and would deter the use of oil as a 
weapon.
  Mr. Speaker, our country is under siege on two fronts, one from OPEC 
where just a few weeks ago the prices of crude oil rose to Gulf War 
record levels of nearly $40 per barrel, and on the other front, as a 
result of this Administration's failure to enact a strategic, short and 
long term energy policy. Despite OPEC's promise to increase oil 
production to levels that would stabilize the price of crude oil, the 
price continued to shoot up. As the price of oil was climbing and our 
constituents were paying upwards of $2 for a gallon of gas, this 
Congress, in bipartisan support, called on the President to release oil 
from the Strategic Petroleum Reserve. The prices continued to rise, and 
finally, after this Congress through heatings and a great deal of 
pressure, the President did authorize the release of oil from the SPR. 
On the speculation alone, that oil would be released from the SPR, 
prices of crude oil began to drop.
  Mr. Speaker, this legislation contains narrow trigger language for 
the President limiting the usage of the SPR and the newly created 
heating oil reserve. The trigger language mandates that the Department 
of Energy will have to certify that any draw-down from the reserve will 
not impair the national security of the United States. What H.R. 2884 
does for the people of the Northeast is to create a permanent home 
heating oil reserve, a necessary measure for which I have been a strong 
advocate, because it will ensure that my constituents will not have to 
suffer as a result of any supply shortages of significant scope and 
duration; and if the price differential between heating oil and crude 
oil increases sixty percent plus over its five-year rolling average.
  Moreover, H.R. 2884 requires the Secretary of the Interior with input 
from the Secretaries of Agriculture and Energy to begin a national 
inventory of natural gas and oil reserves on federal lands, and to set 
forth any restrictions to the development of these resources. H.R. 2884 
also directs the Department of Energy to strengthen its winterization 
program, along with mandating that the Federal Energy Regulatory 
Commission conduct a complete review

[[Page H10565]]

of its policies, practices, and procedures to ascertain how to reduce 
the time and costs associated with the licensing of hydroelectric 
projects.
  Mr. Speaker, it is our responsibility to take whatever measures we 
can to ensure that our constituents will not suffer as a result of any 
breakdown in the supply of, or shortages of heating oil. The American 
people deserve no less than that. And that is why I support this 
measure.
  Mr. WAXMAN. Mr. Speaker, I am supporting H.R. 2884 because it 
contains provisions of vital interest to the American people, such as 
reauthorizing the Strategic Petroleum Reserve. However, I am concerned 
about the inclusion in this legislation of the National Oilheat 
Research Alliance Act of 2000.
  This legislation essentially creates a new tax in order to increase 
the power of the Washington D.C.-based trade association, the National 
Association for Oilheat Research and Education. This legislation 
authorizes this trade association to hold a referendum on the 
establishment of the National Oilheat Research Alliance. Voting rights 
are based on volume of sales, and the Alliance is established upon an 
approval of the industry representing two-thirds of sales by volume. 
This has the effect of giving the biggest interests in the oilheat 
industry the most voting power.
  Once the Alliance is established, an ``assessment,'' which is 
essentially a tax, is levied on the sale of fuel oil. The Congressional 
Budget Office (CBO) has estimated that this would amount to $16-$17 
million annually. The legislation authorizes the Alliance to bring 
suits in Federal court to ensure all distributors and retailers comply 
with the assessments. The use of these funds would be directed by 
industry towards programs (1) to enhance consumer and employee safety 
and training, (2) to provide for research, development, and 
demonstration of clean and efficient oilheat utilization equipment, and 
(3) for consumer education.
  The legislation contains explicit language stating that funds cannot 
be used for advertising, promotions, or consumer surveys in support of 
advertising or promotions. However, there is no precise line between 
advertising and consumer education. For example, television and radio 
spots educating consumers about the benefits of oilheat might not 
appear to violate the prohibition on advertising.
  Under this legislation, the National Association for Oilheat Research 
and Education is designated by name as the sole organization who 
designates at least 56 of the 61 members to the Alliance. The Alliance 
would determine the use of all of the $16-$17 million in assessments. 
By levying a tax on fuel oil sales which is enforceable in Federal 
courts, the oilheat industry is assured that all sectors of the 
industry--from small retail marketers to large wholesale distributors--
will contribute to their national efforts--whatever they decide them to 
be. It is a virtual certainty that these costs will be passed onto 
consumers.
  The National Oilheat Research Alliance Act of 2000 is an anti-
consumer mandate that consolidates power in an entity controlled by the 
biggest interests and will favor their concerns over those of consumers 
and small businesses. It levies a new tax on consumers for which they 
will receive little or no benefit and give those funds to a trade 
association controlled D.C.-based entity to do with as they see fit. 
This is an inappropriate use of congressional authority. I hope we can 
correct this mistake in the future.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in strong support of 
H.R. 2884, titled the Extend Energy Conservation Programs Under the 
Energy Policy and Conservation Act. The 1975 Energy Policy and 
Conservation Act (EPCA) was one of several measures enacted during the 
1970s to deal with chronic U.S. energy supply disruptions and 
shortages. Among other things, the law authorized the creation of the 
Strategic Petroleum Reserve (SPR) to be available to reduce the impact 
of oil import disruptions. The reserve includes 575 million barrels of 
crude oil stored in five salt caverns in Louisiana and Texas. EPCA also 
authorized U.S. participation in an international agreement to 
coordinate the responses of oil consuming nations to oil supply 
disruptions in order to minimize their global impact. EPCA's 
authorization expired on March 31, 2000.
  The measures includes provisions that permit the Energy Department to 
purchase oil from certain marginal wells if the price of oil falls 
below $15 per barrel. (Marginal wells are generally defined as those 
producing fewer than 15 barrels per day. The provisions are intended to 
ensure that marginal wells are not closed down during periods of 
extraordinarily low oil prices.)
  The bill authorizes, President Clinton's request for the, 
establishment of a two million-barrel regional home-heating-oil reserve 
in the Northeast. It specifies that oil could be released from the 
reserve only if the president finds that there is a severe energy 
supply interruption, and specifies certain other conditions under which 
oil may be released from the reserve. I would hope that the conditions 
for release of oil in the future from the national reserve will not 
just be based on hindsight because often conditions that created a past 
crisis are not repeated.
  The measure also includes the following other provisions that were 
not included in the bill as passed by the House in April. This bill 
would also expand the existing federal weatherization program of the 
Energy Department. In addition permits the state of Alaska, rather than 
the federal government, to regulate certain small (under five 
megawatts) hydroelectric power projects in Alaska. Further this bill 
establishes an oil-heat research program to be funded by assessments of 
two-tenths of one cent per gallon on distillate heating oil.
  I would encourage my colleagues to vote in support of this 
conservation effort although it is being addressed seven months after 
the original legislation expired.
  Mr. MARKEY. Mr. Speaker, I yield back the balance of my time.
  Mr. GREENWOOD. Mr. Speaker, I have no further requests for time, and 
I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Pease). The question is on the motion 
offered by the gentleman from Pennsylvania (Mr. Greenwood) that the 
House suspend the rules and concur in the Senate amendment to the bill, 
H.R. 2884.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the Senate amendment was 
concurred in.
  A motion to reconsider was laid on the table.

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