[Congressional Record (Bound Edition), Volume 145 (1999), Part 21]
[Senate]
[Pages 31176-31184]
[From the U.S. Government Publishing Office, www.gpo.gov]



             NATIONAL OILHEAT RESEARCH ALLIANCE ACT OF 1999

  The Senate proceeded to consider the bill (S. 348) to authorize and 
faciliate a program to enhance training, research and development, 
energy conservation and efficiency, and consumer education in the 
oilheat industry for the benefit of oilheat consumers and the public, 
and for other purposes, which had been reported from the Committee on 
Energy and Natural Resources, with amendments; as follows:
  (The parts of the bill intended to be stricken are shown in boldface 
brackets and the parts of the bill intended to be inserted are shown in 
italic.)

                                 S. 348

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Oilheat Research 
     Alliance Act of 1999''.

     SEC. 2. 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. 3. DEFINITIONS.

       In this Act:
       (1) Alliance.--The term ``Alliance'' means a national 
     oilheat research alliance established under section 4.
       (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 5(c)(1)(F).
       (10) Qualified industry organization.--The term ``qualified 
     industry organization'' means the National Association for 
     Oilheat Research and Education or a successor organization.
       (11) Qualified state association.--The term ``qualified 
     State association'' means the industry trade association or 
     other organization that the qualified industry organization 
     or the Alliance determines best represents retail marketers 
     in a State.
       (12) Retail marketer.--The term ``retail marketer'' means a 
     person engaged primarily in the sale of oilheat to ultimate 
     consumers.
       (13) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (14) Wholesale distributor.--The term ``wholesale 
     distributor'' means a person that--
       (A)(i) produces No. 1 distillate or No. 2 dyed distillate;
       (ii) imports No. 1 distillate or No. 2 dyed distillate; or
       (iii) transports No. 1 distillate or No. 2 dyed distillate 
     across State boundaries or among local marketing areas; and
       (B) sells the distillate to another person that does not 
     produce, import, or transport No. 1 distillate or No. 2 dyed 
     distillate across State boundaries or among local marketing 
     areas.

     SEC. 4. 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

[[Page 31177]]

     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 7.
       (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 Act, 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 35 percent of the volume of oilheat 
     or weighted No. 1 distillate and No. 2 dyed distillate in 
     each class, the Alliance shall, at its own expense, hold a 
     referendum, to be conducted by an independent auditing firm 
     selected by the Alliance, to determine whether the 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--
       (A) persons representing more than one-half of the total 
     volume of oilheat voted in the retail marketer class and more 
     than one-half of the total volume of weighted No. 1 
     distillate and No. 2 dyed distillate voted in the wholesale 
     distributor class; or
       (B) persons representing more than two-thirds of the total 
     volume of fuel voted in either such class.
       (d) Calculation of Oilheat Sales.--For the purposes of this 
     section and section 5, 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. 5. 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. 6. 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 Act, 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 
     7.
       (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 Act.
       (2) Solicitation of oilheat industry comment and 
     recommendations.--The Alliance shall establish procedures for 
     the solicitation of oilheat industry comment and 
     recommendations on any significant contracts and other 
     agreements, programs, and projects to be funded by the 
     Alliance.
       (3) Advisory committees.--The Alliance may establish 
     advisory committees consisting of persons other than Alliance 
     members.
       (4) Voting.--Each member of the Alliance shall have 1 vote 
     in matters before the Alliance.

[[Page 31178]]

       (d) Administrative Expenses.--
       (1) In general.--The administrative expenses of operating 
     the Alliance (not including costs incurred in the collection 
     of assessments under section 7) 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 
     7(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 Act.
       (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. 7. 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 Act.
       (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 Act 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 Act.

     SEC. 8. 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. [8.] 9. COMPLIANCE.

       (a) In General.--The Alliance may bring a civil action in 
     United States district court to compel payment of an 
     assessment under section 7.

[[Page 31179]]

       (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. [9.] 10. LOBBYING RESTRICTIONS.

       No funds derived from assessments under section 7 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 Act or other laws that would further the 
     purposes of this Act.

     SEC. [10.] 11. DISCLOSURE.

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

     SEC. [11.] 12. 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 7, 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. [12.] 13. SUNSET.

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


                           amendment no. 2802

                (Purpose: To amend S. 348, as reported)

       On page 2, after line 2, insert the following:

      ``TITLE I--NATIONAL OIL HEAT RESEARCH ALLIANCE ACT OF 1999''

       On page 6, after line 18, insert the following:
       ``(15) State.--The term `State' means the several states, 
     except the State of Alaska.''.
       On page 30, after line 11, insert the following:

           ``TITLE II--SMALL HYDROELECTRIC PROJECTS IN ALASKA

     ``SEC. 201. 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 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

[[Page 31180]]

     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 91) 
     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 regulations 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 III--HYDROELECTRIC PROJECTS IN HAWAII

     `` `SEC. 301. PROJECTS ON FRESH WATERS IN THE STATE OF HAWAII

       `` `Section 4(e) of the Federal Power Act (16 U.S.C. 
     797(e)) is amended in the first sentence by striking 
     ``several States, or upon'' and inserting ``several States 
     (except fresh waters in the State of Hawaii, unless a license 
     would be required under section 23), or upon''.

           `` `TITLE IV--ARROWROCK DAM HYDROELECTRIC PROJECT

     `` `SEC. 501. EXTENSION OF TIME FOR FEDERAL ENERGY REGULATORY 
                   COMMISSION PROJECT.

       `` `Notwithstanding the time period specified in section 13 
     of the Federal Power Act (16 U.S.C. 806) that would otherwise 
     apply to the Federal Energy Regulatory Commission project 
     numbered 4656, the Commission may, at the request of the 
     licensee for the project and after reasonable notice, in 
     accordance with the good faith, due diligence, and public 
     interest requirements of that section and the Commission's 
     procedures under that section, extend until March 26, 2005, 
     the time period during which the licensee is required to 
     commence construction of the project.'.''

  The amendment (No. 2802) was agreed to.
  The committee amendments were agreed to.
  The bill (S. 348), as amended, was passed, as follows:

                                 S. 348

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

        TITLE I--NATIONAL OIL HEAT RESEARCH ALLIANCE ACT OF 1999

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``National Oilheat Research 
     Alliance Act of 1999''.

     SEC. 102. 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. 103. DEFINITIONS.

       In this title:
       (1) Alliance.--The term ``Alliance'' means a national 
     oilheat research alliance established under section 104.
       (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 105(c)(1)(F).
       (10) Qualified industry organization.--The term ``qualified 
     industry organization'' means the National Association for 
     Oilheat Research and Education or a successor organization.
       (11) Qualified state association.--The term ``qualified 
     State association'' means the industry trade association or 
     other organization that the qualified industry organization 
     or the Alliance determines best represents retail marketers 
     in a State.
       (12) Retail marketer.--The term ``retail marketer'' means a 
     person engaged primarily in the sale of oilheat to ultimate 
     consumers.
       (13) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.
       (14) Wholesale distributor.--The term ``wholesale 
     distributor'' means a person that--
       (A)(i) produces No. 1 distillate or No. 2 dyed distillate;
       (ii) imports No. 1 distillate or No. 2 dyed distillate; or
       (iii) transports No. 1 distillate or No. 2 dyed distillate 
     across State boundaries or among local marketing areas; and
       (B) sells the distillate to another person that does not 
     produce, import, or transport No. 1 distillate or No. 2 dyed 
     distillate across State boundaries or among local marketing 
     areas.
       (15) State.--The term ``State'' means the several States, 
     except the State of Alaska.

     SEC. 104. 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 107.

[[Page 31181]]

       (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 35 percent of the volume of oilheat 
     or weighted No. 1 distillate and No. 2 dyed distillate in 
     each class, the Alliance shall, at its own expense, hold a 
     referendum, to be conducted by an independent auditing firm 
     selected by the Alliance, to determine whether the 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--
       (A) persons representing more than one-half of the total 
     volume of oilheat voted in the retail marketer class and more 
     than one-half of the total volume of weighted No. 1 
     distillate and No. 2 dyed distillate voted in the wholesale 
     distributor class; or
       (B) persons representing more than two-thirds of the total 
     volume of fuel voted in either such class.
       (d) Calculation of Oilheat Sales.--For the purposes of this 
     section and section 105, 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. 105. 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. 106. 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 
     107.
       (2) Coordination.--The Alliance shall coordinate its 
     activities with industry trade associations and other persons 
     as appropriate to provide efficient delivery of services and 
     to avoid unnecessary duplication of activities.
       (3) Activities.--
       (A) Exclusions.--Activities under clause (i) or (ii) of 
     paragraph (1)(A) shall not include advertising, promotions, 
     or consumer surveys in support of advertising or promotions.
       (B) Research, development, and demonstration activities.--
       (i) In general.--Research, development, and demonstration 
     activities under paragraph (1)(A)(ii) shall include--

       (I) all activities incidental to research, development, and 
     demonstration of clean and efficient oilheat utilization 
     equipment; and
       (II) the obtaining of patents, including payment of 
     attorney's fees for making and perfecting a patent 
     application.

       (ii) Excluded activities.--Research, development, and 
     demonstration activities under paragraph (1)(A)(ii) shall not 
     include research, development, and demonstration of oilheat 
     utilization equipment with respect to which technically 
     feasible and commercially feasible operations have been 
     verified, except that funds may be provided for improvements 
     to existing equipment until the technical feasibility and 
     commercial feasibility of the operation of those improvements 
     have been verified.
       (b) Priorities.--In the development of programs and 
     projects, the Alliance shall give priority to issues relating 
     to--
       (1) research, development, and demonstration;
       (2) safety;
       (3) consumer education; and
       (4) training.
       (c) Administration.--
       (1) Officers; committees; bylaws.--The Alliance--
       (A) shall select from among its members a chairperson and 
     other officers as necessary;
       (B) may establish and authorize committees and 
     subcommittees of the Alliance to take specific actions that 
     the Alliance is authorized to take; and
       (C) shall adopt bylaws for the conduct of business and the 
     implementation of this title.
       (2) Solicitation of oilheat industry comment and 
     recommendations.--The Alliance shall establish procedures for 
     the solicitation of oilheat industry comment and 
     recommendations on any significant contracts and other 
     agreements, programs, and projects to be funded by the 
     Alliance.
       (3) Advisory committees.--The Alliance may establish 
     advisory committees consisting of persons other than Alliance 
     members.
       (4) Voting.--Each member of the Alliance shall have 1 vote 
     in matters before the Alliance.
       (d) Administrative Expenses.--
       (1) In general.--The administrative expenses of operating 
     the Alliance (not including costs incurred in the collection 
     of assessments under section 107) 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

[[Page 31182]]

     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 
     107(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. 107. 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. 108. 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. 109. COMPLIANCE.

       (a) In General.--The Alliance may bring a civil action in 
     United States district court to compel payment of an 
     assessment under section 107.
       (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. 110. LOBBYING RESTRICTIONS.

       No funds derived from assessments under section 107 
     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. 111. DISCLOSURE.

       Any consumer education activity undertaken with funds 
     provided by the Alliance shall include a statement that the 
     activities

[[Page 31183]]

     were supported, in whole or in part, by the Alliance.

     SEC. 112. 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 107, 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. 113. 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.

            TITLE II--SMALL HYDROELECTRIC PROJECTS IN ALASKA

     SEC. 201. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC 
                   PROJECTS.

       Park 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 Park 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).

[[Page 31184]]



              TITLE III--HYDROELECTRIC PROJECTS IN HAWAII

     SEC. 301. PROJECTS ON FRESH WATERS IN THE STATE OF HAWAII.

       Section 4(e) of the Federal Power Act (16 U.S.C. 797(e)) is 
     amended in the first sentence by striking ``several States, 
     or upon'' and inserting ``several States (except fresh waters 
     in the State of Hawaii, unless a license would be required 
     under section 23), or upon''.

             TITLE IV--ARROWROCK DAM HYDROELECTRIC PROJECT

     SEC. 401. EXTENSION OF TIME FOR FEDERAL ENERGY REGULATORY 
                   COMMISSION PROJECT.

       Notwithstanding the time period specified in section 13 of 
     the Federal Power Act (16 U.S.C. 806) that would otherwise 
     apply to the Federal Energy Regulatory Commission project 
     numbered 4656, the Commission may, at the request of the 
     licensee for the project and after reasonable notice, in 
     accordance with the good faith, due diligence, and public 
     interest requirements of that section and the Commission's 
     procedures under that section, extend until March 26, 2005, 
     the time period during which the licensee is required to 
     commence construction of the project.

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