II 

109TH CONGRESS 

2D SESSION S. 2820 

To require the Secretary of Energy to provide block grants to States to 

provide needs-based assistance to households of consumers of high-priced 

fuel, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 17, 2006 

Mr. COLEMAN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To require the Secretary of Energy to provide block grants 

to States to provide needs-based assistance to households 

of consumers of high-priced fuel, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Fuel Emergency Relief Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—FUEL ASSISTANCE BLOCK GRANT PROGRAM 

Sec. 101. Purpose. 


cchase on PROD1PC60 with BILLS
2 

•S 2820 IS

Sec. 102. Definitions. 

Sec. 103. Authorization of appropriations. 

Sec. 104. Establishment of fuel assistance block grant program. 

Sec. 105. Reports. 

Sec. 106. Lead agency. 

Sec. 107. Application and plan. 

Sec. 108. Determination of eligibility and priority. 

Sec. 109. Limitations on State allotments. 

Sec. 110. Administration and enforcement. 

Sec. 111. Payments. 

Sec. 112. Audits. 

Sec. 113. Report by Secretary. 

Sec. 114. Nondiscrimination. 

Sec. 115. Amounts reserved; allotments. 

TITLE II—TRUST FUND AND REVENUE PROVISIONS 

Sec. 201. Establishment of Fuel Assistance Block Grant Trust Fund. 

Sec. 202. Revaluation of LIFO inventories of large integrated oil companies. 

1 TITLE I—FUEL ASSISTANCE 

2 BLOCK GRANT PROGRAM 

3 SEC. 101. PURPOSE. 

4 The purpose of this title is to establish a fuel assist5 ance block grant program to provide the maximum flexi6 bility to each State to provide needs-based assistance to 

7 households of consumers of high-priced fuel residing in the 

8 State. 

9 SEC. 102. DEFINITIONS. 

10 Except as otherwise specifically provided, in this title: 

11 (1) FUEL COST BURDEN.—The term ‘‘fuel cost 

12 burden’’ means the expenditures of the household 

13 for fuel divided by the income of the household. 

14 (2) HOUSEHOLD.—The term ‘‘household’’ 

15 means any individual or group of individuals who 

16 are living together as 1 economic unit. 


cchase on PROD1PC60 with BILLS
3 

•S 2820 IS

1 (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

2 has the meaning given the term in section 4 of the 

3 Indian Self-Determination and Education Assistance 

4 Act (25 U.S.C. 450b). 

5 (4) LEAD AGENCY.—The term ‘‘lead agency’’ 

6 means the agency designated under section 106(a). 

7 (5) MOTOR VEHICLE.—The term ‘‘motor vehi8 cle’’ has the meaning given the term in section 201 

9 of the Petroleum Marketing Practices Act (15 

10 U.S.C. 2821). 

11 (6) POVERTY LINE.—The term ‘‘poverty line’’ 

12 has the meaning given such term in section 673(2) 

13 of the Community Services Block Grant Act (42 

14 U.S.C. 9902(2)), including any revision required by 

15 such section, that is applicable to a household of the 

16 size involved. 

17 (7) RESERVATION.—The term ‘‘reservation’’ 

18 has the meaning given the term in section 3 of the 

19 Indian Financing Act of 1974 (25 U.S.C. 1452). 

20 (8) SECRETARY.—The term ‘‘Secretary’’ means 

21 the Secretary of Energy. 

22 (9) STATE.—The term ‘‘State’’ means— 

23 (A) a State; 

24 (B) the District of Columbia; 

25 (C) the Commonwealth of Puerto Rico; 


cchase on PROD1PC60 with BILLS
4 

•S 2820 IS

1 (D) any other territory or possession of the 

2 United States; and 

3 (E) each tribal organization that is deter4 mined by the Secretary to be capable of effec5 tively administering the fuel assistance block 

6 grant program on a reservation. 

7 (10) TRIBAL ORGANIZATION.—The term ‘‘tribal 

8 organization’’ has the meaning given the term in 

9 section 4 of the Indian Self-Determination and Edu10 cation Assistance Act (25 U.S.C. 450b). 

11 SEC. 103. AUTHORIZATION OF APPROPRIATIONS. 

12 There are authorized to be appropriated to carry out 

13 this title $2,500,000,000 for each of fiscal years 2007 and 

14 2008. 

15 SEC. 104. ESTABLISHMENT OF FUEL ASSISTANCE BLOCK 

16 GRANT PROGRAM. 

17 Not later than 60 days after the date of enactment 

18 of this Act, the Secretary shall establish a program to 

19 make grants to States in accordance with this title to pro20 vide— 

21 (1) fuel assistance to eligible households in the 

22 State; and 

23 (2) funds for administrative costs incurred in 

24 providing the assistance. 


cchase on PROD1PC60 with BILLS
5 

•S 2820 IS

1 SEC. 105. REPORTS. 

2 (a) IN GENERAL.—To be eligible to receive and ex3 pend payments for a fiscal year under this title, a State 

4 shall prepare and submit to the Secretary a report describ5 ing the activities that the State intends to carry out using 

6 amounts received under this title, including information 

7 on the types of activities and the categories or characteris8 tics of eligible households to be served. 

9 (b) AVAILABILITY AND COMMENT.—A report under 

10 subsection (a) shall be made public within the State in 

11 such a manner as to facilitate comment by any person (in12 cluding any Federal or other public agency) during the 

13 development of the report and after the completion of the 

14 report. 

15 (c) REVISION.— 

16 (1) IN GENERAL.—The report shall be revised 

17 throughout the year as may be necessary to reflect 

18 substantial changes in the activities assisted using 

19 amounts provided under this title. 

20 (2) AVAILABILITY AND COMMENT.—Any revi21 sion in the report shall be subject to subsection (b). 

22 (d) NO ADDITIONAL REPORTS.—The Secretary may 

23 not impose any reporting requirements on States to carry 

24 out this title that are in addition to the reports specifically 

25 required under this title. 


cchase on PROD1PC60 with BILLS
6 

•S 2820 IS

1 SEC. 106. LEAD AGENCY. 

2 (a) DESIGNATION.—The chief executive officer of a 

3 State desiring to receive a grant under this title shall des4 ignate, in an application submitted to the Secretary under 

5 section 107, an appropriate State agency that complies 

6 with subsection (b) to act as the lead agency for the State. 

7 (b) DUTIES.— 

8 (1) IN GENERAL.—The lead agency shall— 

9 (A) administer, directly or through other 

10 State agencies, the financial assistance received 

11 under this title by the State; 

12 (B) develop the State plan to be submitted 

13 to the Secretary under section 107(a); 

14 (C) in conjunction with the development of 

15 the State plan, hold at least 1 hearing in the 

16 State to provide to the public an opportunity to 

17 comment on the provision of fuel assistance 

18 under the State plan; and 

19 (D) coordinate the provision of fuel assist20 ance under this title with other Federal, State, 

21 and local fuel assistance programs. 

22 (2) DEVELOPMENT OF PLAN.—In the develop23 ment of the State plan described in paragraph 

24 (1)(B), the lead agency shall consult with appro25 priate representatives of units of general purpose 


cchase on PROD1PC60 with BILLS
7 

•S 2820 IS

1 local government on issues relating to the State 

2 plan, including consideration of— 

3 (A) local fuel assistance needs and re4 sources; 

5 (B) the effectiveness of existing fuel assist6 ance; and 

7 (C) the methods by which funds made 

8 available under this title may be used to effec9 tively provided assistance to consumers for high 

10 fuel costs. 

11 SEC. 107. APPLICATION AND PLAN. 

12 (a) APPLICATION.—To be eligible to receive assist13 ance under this title, a State shall prepare and submit 

14 to the Secretary an application at such time, in such man15 ner, and containing such information as the Secretary 

16 shall by rule require, including— 

17 (1) an assurance that the State will comply 

18 with the requirements of this title; and 

19 (2) a State plan that meets the requirements of 

20 subsection (c). 

21 (b) PERIOD COVERED BY PLAN.—A State plan con22 tained in the application under subsection (a) shall be de23 signed to be carried out during a 2-year period. 

24 (c) REQUIREMENTS OF A PLAN.— 


cchase on PROD1PC60 with BILLS
8 

•S 2820 IS

1 (1) LEAD AGENCY.—The State plan shall iden2 tify the lead agency. 

3 (2) USE OF BLOCK GRANT FUNDS.— 

4 (A) IN GENERAL.—The State plan shall 

5 provide that the State shall use the amounts 

6 provided to the State for each fiscal year under 

7 this title— 

8 (i) to provide fuel assistance to eligi9 ble households residing in the State; and 

10 (ii) to cover administrative costs in11 curred in providing the assistance. 

12 (B) ELIGIBILITY STANDARDS.—The State 

13 plan shall include— 

14 (i) the State household eligibility 

15 standards for receiving fuel assistance 

16 under this section, which standards shall 

17 meet the requirements of section 108; 

18 (ii) the form and dollar amount of 

19 such fuel assistance; and 

20 (iii) the methods of providing such 

21 fuel assistance to the eligible households. 

22 (C) MAINTENANCE OF EFFORT.—The 

23 State plan shall provide assurances that funds 

24 received under this title by the State will be 

25 used only to supplement, not to supplant, the 


cchase on PROD1PC60 with BILLS
9 

•S 2820 IS

1 amount of Federal, State, and local funds oth2 erwise expended for fuel assistance in the State. 

3 (D) SECTARIAN PURPOSES AND ACTIVI4 TIES.—No financial assistance provided under 

5 this title shall be expended to promote any sec6 tarian purpose or activity, including sectarian 

7 worship or instruction. 

8 (d) APPROVAL OF APPLICATION.—The Secretary 

9 shall approve an application that satisfies the require10 ments of this section. 

11 SEC. 108. DETERMINATION OF ELIGIBILITY AND PRIORITY. 

12 (a) DETERMINATION OF ELIGIBILITY STANDARDS.— 

13 (1) IN GENERAL.—In determining the house14 hold eligibility standards included in the State plan 

15 under section 107(c)(2)(B), a State receiving assist16 ance under this title— 

17 (A) shall determine which households that 

18 meet the requirements of paragraph (2) shall be 

19 eligible for fuel assistance under this title, ex20 cept that a household shall not be ineligible 

21 solely on the basis of household income if such 

22 income is less than 110 percent of the poverty 

23 line; and 

24 (B) may use additional criteria to deter25 mine household eligibility. 


cchase on PROD1PC60 with BILLS
10 

•S 2820 IS

1 (2) HOUSEHOLD ELIGIBILITY CRITERIA.—A 

2 household that may be eligible for fuel assistance 

3 under this title is a household— 

4 (A) in which not less than 1 individual can 

5 demonstrate that the individual owns, or has 

6 entered into a long-term lease agreement for, a 

7 motor vehicle; and 

8 (B)(i) with a total income that does not ex9 ceed the greater of— 

10 (I) an amount equal to 250 percent of 

11 the poverty line; or 

12 (II) an amount equal to 70 percent of 

13 the State median income; or 

14 (ii) in which 1 or more individuals are re15 ceiving— 

16 (I) assistance under the State pro17 gram funded under part A of title IV of 

18 the Social Security Act (42 U.S.C. 601 et 

19 seq.); 

20 (II) food stamps under the Food 

21 Stamp Act of 1977 (7 U.S.C. 2011 et 

22 seq.); 

23 (III) supplemental security income 

24 payments under title XVI of the Social Se25 curity Act (42 U.S.C. 1381 et seq.); or 


cchase on PROD1PC60 with BILLS
11 

•S 2820 IS

1 (IV) payments under section 1315, 

2 1521, 1541, or 1542 of title 38, United 

3 States Code, or under section 306 of the 

4 Veterans’ and Survivors’ Pension Improve5 ment Act of 1978 (30 U.S.C. 1521 note). 

6 (b) PRIORITY.—In providing fuel assistance to eligi7 ble households, a State receiving assistance under this title 

8 shall give priority to eligible households with the greatest 

9 fuel cost burdens and, in particular, such households that 

10 do not have a viable alternative to motor vehicle transpor11 tation. 

12 SEC. 109. LIMITATIONS ON STATE ALLOTMENTS. 

13 (a) NO INDIVIDUAL OR FAMILY ENTITLEMENT TO

14 CONTRACT, GRANT, OR ASSISTANCE.—Except as other15 wise specifically provided in this title, nothing in this 

16 title— 

17 (1) entitles any household to assistance or a 

18 contract or grant; or 

19 (2) limits the right of a State to impose addi20 tional limitations or conditions on assistance or a 

21 contract or grant under this title. 

22 (b) CONSTRUCTION OF FACILITIES.—No funds made 

23 available under this title shall be expended for the pur24 chase or improvement of land, or for the purchase, conVerDate Aug 31 2005 22:25 May 22, 2006 Jkt 049200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S2820.IS S2820

cchase on PROD1PC60 with BILLS
12 

•S 2820 IS

1 struction, or permanent improvement (other than minor 

2 remodeling) of any building or facility. 

3 SEC. 110. ADMINISTRATION AND ENFORCEMENT. 

4 (a) ADMINISTRATION.—The Secretary shall— 

5 (1) coordinate all activities of the Department 

6 of Energy relating to fuel assistance, and, to the 

7 maximum extent practicable, coordinate the activi8 ties with similar activities of other Federal entities; 

9 and 

10 (2) provide technical assistance to assist States 

11 in carrying out this title, including assistance on a 

12 reimbursable basis. 

13 (b) ENFORCEMENT.— 

14 (1) REVIEW OF COMPLIANCE WITH STATE

15 PLAN.—The Secretary shall— 

16 (A) review and monitor State compliance 

17 with— 

18 (i) this title; and 

19 (ii) the plan approved under section 

20 107(d) for the State; and 

21 (B) have the power to terminate payments 

22 to the State in accordance with paragraph (2). 

23 (2) NONCOMPLIANCE.— 

24 (A) IN GENERAL.— 


cchase on PROD1PC60 with BILLS
13 

•S 2820 IS

1 (i) APPLICATION.—This subparagraph 

2 applies if the Secretary, after reasonable 

3 notice to a State and opportunity for a 

4 hearing, finds that— 

5 (I) there has been a failure by 

6 the State to comply substantially with 

7 any provision or requirement set forth 

8 in the plan approved under section 

9 107(d) for the State; or 

10 (II) in the operation of any pro11 gram or activity for which assistance 

12 is provided under this title, there is a 

13 failure by the State to comply sub14 stantially with any provision of this 

15 title. 

16 (ii) NOTICE.—If the Secretary makes 

17 the finding described in subclause (I) or 

18 (II) of clause (i), the Secretary shall notify 

19 the State of the finding and that no fur20 ther payments will be made to the State 

21 under this title (or, in the case of non22 compliance in the operation of a program 

23 or activity, that no further payments to the 

24 State will be made with respect to the pro25 gram or activity) until the Secretary is satVerDate Aug 31 2005 22:25 May 22, 2006 Jkt 049200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S2820.IS S2820

cchase on PROD1PC60 with BILLS
14 

•S 2820 IS

1 isfied that there is no longer any such fail2 ure to comply or that the noncompliance 

3 will be promptly corrected. 

4 (B) ADDITIONAL SANCTIONS.—In the case 

5 of a finding of noncompliance made pursuant to 

6 subparagraph (A), the Secretary may, in addi7 tion to imposing the sanctions described in sub8 paragraph (A), impose other appropriate sanc9 tions, including recoupment of money improp10 erly expended for purposes prohibited or not 

11 authorized by this title, and disqualification 

12 from the receipt of financial assistance under 

13 this title. 

14 (C) NOTICE.—The notice required under 

15 subparagraph (A) shall include a specific identi16 fication of any additional sanction being im17 posed under subparagraph (B). 

18 (3) PROCEDURES.—The Secretary shall estab19 lish by regulation procedures for— 

20 (A) receiving, processing, and determining 

21 the validity of complaints concerning any failure 

22 of a State to comply with the State plan or any 

23 requirement of this title; and 

24 (B) imposing sanctions under this section. 


cchase on PROD1PC60 with BILLS
15 

•S 2820 IS

1 SEC. 111. PAYMENTS. 

2 (a) IN GENERAL.— 

3 (1) PAYMENTS.—A State that has an applica4 tion approved by the Secretary under section 107(d) 

5 shall be entitled to a payment under this section for 

6 each fiscal year in an amount that is equal to the 

7 allotment of the State under section 115 for the fis8 cal year. 

9 (2) STATE ENTITLEMENT.—Subject to the 

10 availability of funds under section 103, this title— 

11 (A) constitutes budget authority in ad12 vance of appropriations Acts; and 

13 (B) represents the obligation of the Fed14 eral Government to provide for the payment to 

15 States of the amount described in paragraph 

16 (1). 

17 (b) METHOD OF PAYMENT.— 

18 (1) IN GENERAL.—Subject to paragraph (2), 

19 the Secretary may make payments to a State in in20 stallments, or in advance or by way of reimburse21 ment, with necessary adjustments on account of 

22 overpayments or underpayments, as the Secretary 

23 may determine. 

24 (2) LIMITATION.—The Secretary may not make 

25 the payments in a manner that prevents the State 

26 from complying with section 107(c)(2). 


cchase on PROD1PC60 with BILLS
16 

•S 2820 IS

1 (c) SPENDING OF FUNDS BY STATE.—Payments to 

2 a State from an allotment under section 115 for a fiscal 

3 year may be expended by the State in the fiscal year or 

4 in the succeeding fiscal year. 

5 SEC. 112. AUDITS. 

6 (a) REQUIREMENT.—After the close of each program 

7 period covered by an application approved under section 

8 107(d), a State shall audit the expenditures of the State 

9 during the program period from amounts received under 

10 this title. 

11 (b) INDEPENDENT AUDITOR.—An audit under this 

12 section shall be conducted— 

13 (1) by an entity that is independent of any 

14 agency administering activities that receive assist15 ance under this title; and 

16 (2) in accordance with generally accepted audit17 ing principles. 

18 (c) SUBMISSION.—Not later than 30 days after the 

19 completion of an audit under this section, the State shall 

20 submit a copy of the audit to the legislature of the State 

21 and to the Secretary. 

22 (d) REPAYMENT OF AMOUNTS.—Each State shall 

23 repay to the United States any amounts determined 

24 through an audit under this section to have not been ex25 pended in accordance with this title, or the Secretary may 


cchase on PROD1PC60 with BILLS
17 

•S 2820 IS

1 offset the amounts against any other amount to which the 

2 State is or may be entitled under this title. 

3 SEC. 113. REPORT BY SECRETARY. 

4 Not later than July 31, 2007, and annually there5 after, the Secretary shall submit to the Committee on En6 ergy and Natural Resources of the Senate and the Com7 mittee on Energy and Commerce of the House of Rep8 resentatives a report that contains— 

9 (1) a summary and analysis of the data and in10 formation provided to the Secretary in the State au11 dits submitted under section 112; and 

12 (2) an assessment, and if appropriate, rec13 ommendations for Congress concerning efforts that 

14 should be undertaken to improve fuel assistance in 

15 the United States. 

16 SEC. 114. NONDISCRIMINATION. 

17 (a) IN GENERAL.—The Secretary shall not provide 

18 financial assistance for any program, project, or activity 

19 under this title unless the grant or contract with respect 

20 to the program, project, or activity specifically provides 

21 that no person with responsibilities for the operation of 

22 the program, project, or activity will discriminate with re23 spect to the program, project, or activity because of race, 

24 religion, color, national origin, sex, or disability. 


cchase on PROD1PC60 with BILLS
18 

•S 2820 IS

1 (b) ENFORCEMENT.—The powers, remedies, and pro2 cedures set forth in title VI of the Civil Rights Act of 1964 

3 (42 U.S.C. 2000d et seq.) shall be the powers, remedies, 

4 and procedures this section provides to the Secretary con5 cerning a violation of subsection (a). 

6 SEC. 115. AMOUNTS RESERVED; ALLOTMENTS. 

7 (a) DEFINITION OF STATE.—In this section, the term 

8 ‘‘State’’ means— 

9 (1) each of the 50 States; 

10 (2) the District of Columbia; and 

11 (3) the Commonwealth of Puerto Rico. 

12 (b) AMOUNTS RESERVED.— 

13 (1) VIRGIN ISLANDS.—The Secretary shall reserve not to exceed 1 14 ⁄2 of 1 percent of the amount 

15 appropriated under section 103 for each fiscal year 

16 for payments to the Virgin Islands of the United 

17 States. 

18 (2) INDIAN TRIBES.—The Secretary shall re19 serve not more than 3 percent of the amount appro20 priated under section 103 for each fiscal year for 

21 payments to Indian tribes and tribal organizations. 

22 (c) STATE ALLOTMENT.— 

23 (1) IN GENERAL.—Except as provided in para24 graphs (2) and (3), from the amounts appropriated 

25 under section 103 for each fiscal year remaining 


cchase on PROD1PC60 with BILLS
19 

•S 2820 IS

1 after the reservations required under subsection (b) 

2 (referred to in this paragraph as the ‘‘remainder’’), 

3 the Secretary shall allot to each State an amount 

4 that is equal to an amount that bears the same ratio 

5 to the remainder as the population of the State 

6 bears to the population of all States, based on the 

7 latest available Federal census conducted under sec8 tion 141(a) of title 13, United States Code. 

9 (2) ADJUSTMENT.—Except as provided in para10 graph (3), the Secretary may adjust the allotment 

11 required under paragraph (1) to take into account 

12 the number of eligible households under this title 

13 that reside in a State. 

14 (3) INSUFFICIENT FUNDS.—If the Secretary 

15 finds that the total amount of allotments to which 

16 States would otherwise be entitled for a fiscal year 

17 under paragraphs (1) and (2) will exceed the 

18 amount of funds that will be made available to pro19 vide the allotments for the fiscal year, the Secretary 

20 shall reduce the allotments made to States under 

21 this subsection, on a pro rata basis, to the extent 

22 necessary to allot under this subsection a total 

23 amount that is equal to the funds that will be made 

24 available. 


cchase on PROD1PC60 with BILLS
20 

•S 2820 IS

1 (d) DATA AND INFORMATION.—The Secretary shall 

2 obtain from each appropriate Federal agency, the most re3 cent data and information necessary to determine the al4 lotments required under subsection (c). 

5 (e) REALLOTMENTS.— 

6 (1) IN GENERAL.—Any portion of an allotment 

7 under subsection (c) to a State that the Secretary 

8 determines is not required to carry out a State plan 

9 approved under section 107(d) and any amounts re10 paid to the Secretary under this title, during the pe11 riod for which the allotment is made available, shall 

12 be reallotted by the Secretary to other States in pro13 portion to the original allotments to the other 

14 States. 

15 (2) LIMITATIONS.— 

16 (A) REDUCTION.—The amount of any re17 allotment to which a State is entitled under 

18 paragraph (1) shall be reduced to the extent 

19 that the allotment exceeds the amount that the 

20 Secretary estimates will be used in the State to 

21 carry out a State plan approved under section 

22 107(d). 

23 (B) REALLOTMENTS.—The amount of the 

24 reduction shall be similarly reallotted among 


cchase on PROD1PC60 with BILLS
21 

•S 2820 IS

1 States for which no reduction in an allotment 

2 or reallotment is required by this paragraph. 

3 (3) AMOUNTS REALLOTTED.—For purposes of 

4 any other section of this title, any amount reallotted 

5 to a State under this subsection shall be considered 

6 to be part of the allotment made under subsection 

7 (c) to the State. 

8 TITLE II—TRUST FUND AND 

9 REVENUE PROVISIONS 

10 SEC. 201. ESTABLISHMENT OF FUEL ASSISTANCE BLOCK 

11 GRANT TRUST FUND. 

12 (a) IN GENERAL.—Subchapter A of chapter 98 of the 

13 Internal Revenue Code of 1986 (relating to trust fund 

14 code) is amended by adding at the end the following: 

15 ‘‘SEC. 9511. FUEL ASSISTANCE BLOCK GRANT TRUST FUND. 

16 ‘‘(a) CREATION OF TRUST FUND.—There is estab17 lished in the Treasury of the United States a trust fund 

18 to be known as the ‘Fuel Assistance Block Grant Trust 

19 Fund’ (referred to in this section as the ‘Trust Fund’), 

20 consisting of such amounts as may be appropriated or 

21 credited to the Trust Fund as provided in this section or 

22 section 9602(b). 

23 ‘‘(b) TRANSFERS TO TRUST FUND.—There is hereby 

24 appropriated to the Trust Fund for each fiscal year an 

25 amount equivalent to the increase in revenues received in 


cchase on PROD1PC60 with BILLS
22 

•S 2820 IS

1 the Treasury during such fiscal year as the result of the 

2 amendments made by sections 202 and 203 of the Fuel 

3 Emergency Relief Act. 

4 ‘‘(c) DISTRIBUTION OF AMOUNTS IN TRUST FUND.— 

5 Amounts in the Trust Fund shall be available, as provided 

6 by appropriation Acts, to provide for the fuel assistance 

7 block grant program established under title I of the Fuel 

8 Emergency Relief Act. 

9 ‘‘(d) TERMINATION OF TRUST FUND.— 

10 ‘‘(1) IN GENERAL.—Subsection (b) shall not 

11 apply with respect to any fiscal year beginning after 

12 September 30, 2008. 

13 ‘‘(2) TRANSFER OF REMAINING FUNDS.—On 

14 October 1, 2008, the Secretary shall transfer any re15 maining funds in the Trust Fund to the general 

16 fund to the extent such funds are not needed to 

17 meet any outstanding obligations of the fuel assist18 ance block grant program established under title I of 

19 the Fuel Emergency Relief Act.’’. 

20 (b) CONFORMING AMENDMENT.—The table of sec21 tions for subchapter A of chapter 98 of such Code is 

22 amended by adding at the end the following: 

‘‘Sec. 9511. Fuel Assistance Block Grant Trust Fund.’’. 

23 (c) EFFECTIVE DATE.—The amendments made by 

24 this section shall take effect on the date of the enactment 

25 of this Act. 


cchase on PROD1PC60 with BILLS
23 

•S 2820 IS

1 SEC. 202. REVALUATION OF LIFO INVENTORIES OF LARGE 

2 INTEGRATED OIL COMPANIES. 

3 (a) GENERAL RULE.—Notwithstanding any other 

4 provision of law, if a taxpayer is an applicable integrated 

5 oil company for its last taxable year ending in calendar 

6 year 2005, the taxpayer shall— 

7 (1) increase, effective as of the close of such 

8 taxable year, the value of each historic LIFO layer 

9 of inventories of crude oil, natural gas, or any other 

10 petroleum product (within the meaning of section 

11 4611) by the layer adjustment amount, and 

12 (2) decrease its cost of goods sold for such tax13 able year by the aggregate amount of the increases 

14 under paragraph (1). 

15 If the aggregate amount of the increases under paragraph 

16 (1) exceed the taxpayer’s cost of goods sold for such tax17 able year, the taxpayer’s gross income for such taxable 

18 year shall be increased by the amount of such excess. 

19 (b) LAYER ADJUSTMENT AMOUNT.—For purposes of 

20 this section— 

21 (1) IN GENERAL.—The term ‘‘layer adjustment 

22 amount’’ means, with respect to any historic LIFO 

23 layer, the product of— 

24 (A) $18.75, and 

25 (B) the number of barrels of crude oil (or 

26 in the case of natural gas or other petroleum 


cchase on PROD1PC60 with BILLS
24 

•S 2820 IS

1 products, the number of barrel-of-oil equiva2 lents) represented by the layer. 

3 (2) BARREL-OF-OIL EQUIVALENT.—The term 

4 ‘‘barrel-of-oil equivalent’’ has the meaning given 

5 such term by section 29(d)(5) (as in effect before its 

6 redesignation by the Energy Tax Incentives Act of 

7 2005). 

8 (c) APPLICATION OF REQUIREMENT.— 

9 (1) NO CHANGE IN METHOD OF ACCOUNTING.— 

10 Any adjustment required by this section shall not be 

11 treated as a change in method of accounting. 

12 (2) UNDERPAYMENTS OF ESTIMATED TAX.—No 

13 addition to the tax shall be made under section 6655 

14 of the Internal Revenue Code of 1986 (relating to 

15 failure by corporation to pay estimated tax) with re16 spect to any underpayment of an installment re17 quired to be paid with respect to the taxable year 

18 described in subsection (a) to the extent such under19 payment was created or increased by this section. 

20 (d) APPLICABLE INTEGRATED OIL COMPANY.—For 

21 purposes of this section, the term ‘‘applicable integrated 

22 oil company’’ means an integrated oil company (as defined 

23 in section 291(b)(4) of the Internal Revenue Code of 

24 1986) which has an average daily worldwide production 

25 of crude oil of at least 500,000 barrels for the taxable 


cchase on PROD1PC60 with BILLS
25 

•S 2820 IS

1 year and which had gross receipts in excess of 

2 $1,000,000,000 for its last taxable year ending during cal3 endar year 2005. For purposes of this subsection all per4 sons treated as a single employer under subsections (a) 

5 and (b) of section 52 of the Internal Revenue Code of 

6 1986 shall be treated as 1 person and, in the case of a 

7 short taxable year, the rule under section 448(c)(3)(B) 

8 shall apply. 

Æ 


cchase on PROD1PC60 with BILLS