Congressional Record, Volume 146 Issue 134 (Tuesday, October 24, 2000)

[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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