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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2820 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Fuel Emergency 
Relief Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
              TITLE I--FUEL ASSISTANCE BLOCK GRANT PROGRAM

Sec. 101. Purpose.
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.

              TITLE I--FUEL ASSISTANCE BLOCK GRANT PROGRAM

SEC. 101. PURPOSE.

    The purpose of this title is to establish a fuel assistance block 
grant program to provide the maximum flexibility to each State to 
provide needs-based assistance to households of consumers of high-
priced fuel residing in the State.

SEC. 102. DEFINITIONS.

    Except as otherwise specifically provided, in this title:
            (1) Fuel cost burden.--The term ``fuel cost burden'' means 
        the expenditures of the household for fuel divided by the 
        income of the household.
            (2) Household.--The term ``household'' means any individual 
        or group of individuals who are living together as 1 economic 
        unit.
            (3) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (4) Lead agency.--The term ``lead agency'' means the agency 
        designated under section 106(a).
            (5) Motor vehicle.--The term ``motor vehicle'' has the 
        meaning given the term in section 201 of the Petroleum 
        Marketing Practices Act (15 U.S.C. 2821).
            (6) Poverty line.--The term ``poverty line'' has the 
        meaning given such term in section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)), including any 
        revision required by such section, that is applicable to a 
        household of the size involved.
            (7) Reservation.--The term ``reservation'' has the meaning 
        given the term in section 3 of the Indian Financing Act of 1974 
        (25 U.S.C. 1452).
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (9) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico;
                    (D) any other territory or possession of the United 
                States; and
                    (E) each tribal organization that is determined by 
                the Secretary to be capable of effectively 
                administering the fuel assistance block grant program 
                on a reservation.
            (10) Tribal organization.--The term ``tribal organization'' 
        has the meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).

SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this title 
$2,500,000,000 for each of fiscal years 2007 and 2008.

SEC. 104. ESTABLISHMENT OF FUEL ASSISTANCE BLOCK GRANT PROGRAM.

    Not later than 60 days after the date of enactment of this Act, the 
Secretary shall establish a program to make grants to States in 
accordance with this title to provide--
            (1) fuel assistance to eligible households in the State; 
        and
            (2) funds for administrative costs incurred in providing 
        the assistance.

SEC. 105. REPORTS.

    (a) In General.--To be eligible to receive and expend payments for 
a fiscal year under this title, a State shall prepare and submit to the 
Secretary a report describing the activities that the State intends to 
carry out using amounts received under this title, including 
information on the types of activities and the categories or 
characteristics of eligible households to be served.
    (b) Availability and Comment.--A report under subsection (a) shall 
be made public within the State in such a manner as to facilitate 
comment by any person (including any Federal or other public agency) 
during the development of the report and after the completion of the 
report.
    (c) Revision.--
            (1) In general.--The report shall be revised throughout the 
        year as may be necessary to reflect substantial changes in the 
        activities assisted using amounts provided under this title.
            (2) Availability and comment.--Any revision in the report 
        shall be subject to subsection (b).
    (d) No Additional Reports.--The Secretary may not impose any 
reporting requirements on States to carry out this title that are in 
addition to the reports specifically required under this title.

SEC. 106. LEAD AGENCY.

    (a) Designation.--The chief executive officer of a State desiring 
to receive a grant under this title shall designate, in an application 
submitted to the Secretary under section 107, an appropriate State 
agency that complies with subsection (b) to act as the lead agency for 
the State.
    (b) Duties.--
            (1) In general.--The lead agency shall--
                    (A) administer, directly or through other State 
                agencies, the financial assistance received under this 
                title by the State;
                    (B) develop the State plan to be submitted to the 
                Secretary under section 107(a);
                    (C) in conjunction with the development of the 
                State plan, hold at least 1 hearing in the State to 
                provide to the public an opportunity to comment on the 
                provision of fuel assistance under the State plan; and
                    (D) coordinate the provision of fuel assistance 
                under this title with other Federal, State, and local 
                fuel assistance programs.
            (2) Development of plan.--In the development of the State 
        plan described in paragraph (1)(B), the lead agency shall 
        consult with appropriate representatives of units of general 
        purpose local government on issues relating to the State plan, 
        including consideration of--
                    (A) local fuel assistance needs and resources;
                    (B) the effectiveness of existing fuel assistance; 
                and
                    (C) the methods by which funds made available under 
                this title may be used to effectively provided 
                assistance to consumers for high fuel costs.

SEC. 107. APPLICATION AND PLAN.

    (a) Application.--To be eligible to receive assistance under this 
title, a State shall prepare and submit to the Secretary an application 
at such time, in such manner, and containing such information as the 
Secretary shall by rule require, including--
            (1) an assurance that the State will comply with the 
        requirements of this title; and
            (2) a State plan that meets the requirements of subsection 
        (c).
    (b) Period Covered by Plan.--A State plan contained in the 
application under subsection (a) shall be designed to be carried out 
during a 2-year period.
    (c) Requirements of a Plan.--
            (1) Lead agency.--The State plan shall identify the lead 
        agency.
            (2) Use of block grant funds.--
                    (A) In general.--The State plan shall provide that 
                the State shall use the amounts provided to the State 
                for each fiscal year under this title--
                            (i) to provide fuel assistance to eligible 
                        households residing in the State; and
                            (ii) to cover administrative costs incurred 
                        in providing the assistance.
                    (B) Eligibility standards.--The State plan shall 
                include--
                            (i) the State household eligibility 
                        standards for receiving fuel assistance under 
                        this section, which standards shall meet the 
                        requirements of section 108;
                            (ii) the form and dollar amount of such 
                        fuel assistance; and
                            (iii) the methods of providing such fuel 
                        assistance to the eligible households.
                    (C) Maintenance of effort.--The State plan shall 
                provide assurances that funds received under this title 
                by the State will be used only to supplement, not to 
                supplant, the amount of Federal, State, and local funds 
                otherwise expended for fuel assistance in the State.
                    (D) Sectarian purposes and activities.--No 
                financial assistance provided under this title shall be 
                expended to promote any sectarian purpose or activity, 
                including sectarian worship or instruction.
    (d) Approval of Application.--The Secretary shall approve an 
application that satisfies the requirements of this section.

SEC. 108. DETERMINATION OF ELIGIBILITY AND PRIORITY.

    (a) Determination of Eligibility Standards.--
            (1) In general.--In determining the household eligibility 
        standards included in the State plan under section 
        107(c)(2)(B), a State receiving assistance under this title--
                    (A) shall determine which households that meet the 
                requirements of paragraph (2) shall be eligible for 
                fuel assistance under this title, except that a 
                household shall not be ineligible solely on the basis 
                of household income if such income is less than 110 
                percent of the poverty line; and
                    (B) may use additional criteria to determine 
                household eligibility.
            (2) Household eligibility criteria.--A household that may 
        be eligible for fuel assistance under this title is a 
        household--
                    (A) in which not less than 1 individual can 
                demonstrate that the individual owns, or has entered 
                into a long-term lease agreement for, a motor vehicle; 
                and
                    (B)(i) with a total income that does not exceed the 
                greater of--
                            (I) an amount equal to 250 percent of the 
                        poverty line; or
                            (II) an amount equal to 70 percent of the 
                        State median income; or
                    (ii) in which 1 or more individuals are receiving--
                            (I) assistance under the State program 
                        funded under part A of title IV of the Social 
                        Security Act (42 U.S.C. 601 et seq.);
                            (II) food stamps under the Food Stamp Act 
                        of 1977 (7 U.S.C. 2011 et seq.);
                            (III) supplemental security income payments 
                        under title XVI of the Social Security Act (42 
                        U.S.C. 1381 et seq.); or
                            (IV) payments under section 1315, 1521, 
                        1541, or 1542 of title 38, United States Code, 
                        or under section 306 of the Veterans' and 
                        Survivors' Pension Improvement Act of 1978 (30 
                        U.S.C. 1521 note).
    (b) Priority.--In providing fuel assistance to eligible households, 
a State receiving assistance under this title shall give priority to 
eligible households with the greatest fuel cost burdens and, in 
particular, such households that do not have a viable alternative to 
motor vehicle transportation.

SEC. 109. LIMITATIONS ON STATE ALLOTMENTS.

    (a) No Individual or Family Entitlement to Contract, Grant, or 
Assistance.--Except as otherwise specifically provided in this title, 
nothing in this title--
            (1) entitles any household to assistance or a contract or 
        grant; or
            (2) limits the right of a State to impose additional 
        limitations or conditions on assistance or a contract or grant 
        under this title.
    (b) Construction of Facilities.--No funds made available under this 
title shall be expended for the purchase or improvement of land, or for 
the purchase, construction, or permanent improvement (other than minor 
remodeling) of any building or facility.

SEC. 110. ADMINISTRATION AND ENFORCEMENT.

    (a) Administration.--The Secretary shall--
            (1) coordinate all activities of the Department of Energy 
        relating to fuel assistance, and, to the maximum extent 
        practicable, coordinate the activities with similar activities 
        of other Federal entities; and
            (2) provide technical assistance to assist States in 
        carrying out this title, including assistance on a reimbursable 
        basis.
    (b) Enforcement.--
            (1) Review of compliance with state plan.--The Secretary 
        shall--
                    (A) review and monitor State compliance with--
                            (i) this title; and
                            (ii) the plan approved under section 107(d) 
                        for the State; and
                    (B) have the power to terminate payments to the 
                State in accordance with paragraph (2).
            (2) Noncompliance.--
                    (A) In general.--
                            (i) Application.--This subparagraph applies 
                        if the Secretary, after reasonable notice to a 
                        State and opportunity for a hearing, finds 
                        that--
                                    (I) there has been a failure by the 
                                State to comply substantially with any 
                                provision or requirement set forth in 
                                the plan approved under section 107(d) 
                                for the State; or
                                    (II) in the operation of any 
                                program or activity for which 
                                assistance is provided under this 
                                title, there is a failure by the State 
                                to comply substantially with any 
                                provision of this title.
                            (ii) Notice.--If the Secretary makes the 
                        finding described in subclause (I) or (II) of 
                        clause (i), the Secretary shall notify the 
                        State of the finding and that no further 
                        payments will be made to the State under this 
                        title (or, in the case of noncompliance in the 
                        operation of a program or activity, that no 
                        further payments to the State will be made with 
                        respect to the program or activity) until the 
                        Secretary is satisfied that there is no longer 
                        any such failure to comply or that the 
                        noncompliance will be promptly corrected.
                    (B) Additional sanctions.--In the case of a finding 
                of noncompliance made pursuant to subparagraph (A), the 
                Secretary may, in addition to imposing the sanctions 
                described in subparagraph (A), impose other appropriate 
                sanctions, including recoupment of money improperly 
                expended for purposes prohibited or not authorized by 
                this title, and disqualification from the receipt of 
                financial assistance under this title.
                    (C) Notice.--The notice required under subparagraph 
                (A) shall include a specific identification of any 
                additional sanction being imposed under subparagraph 
                (B).
            (3) Procedures.--The Secretary shall establish by 
        regulation procedures for--
                    (A) receiving, processing, and determining the 
                validity of complaints concerning any failure of a 
                State to comply with the State plan or any requirement 
                of this title; and
                    (B) imposing sanctions under this section.

SEC. 111. PAYMENTS.

    (a) In General.--
            (1) Payments.--A State that has an application approved by 
        the Secretary under section 107(d) shall be entitled to a 
        payment under this section for each fiscal year in an amount 
        that is equal to the allotment of the State under section 115 
        for the fiscal year.
            (2) State entitlement.--Subject to the availability of 
        funds under section 103, this title--
                    (A) constitutes budget authority in advance of 
                appropriations Acts; and
                    (B) represents the obligation of the Federal 
                Government to provide for the payment to States of the 
                amount described in paragraph (1).
    (b) Method of Payment.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        may make payments to a State in installments, or in advance or 
        by way of reimbursement, with necessary adjustments on account 
        of overpayments or underpayments, as the Secretary may 
        determine.
            (2) Limitation.--The Secretary may not make the payments in 
        a manner that prevents the State from complying with section 
        107(c)(2).
    (c) Spending of Funds by State.--Payments to a State from an 
allotment under section 115 for a fiscal year may be expended by the 
State in the fiscal year or in the succeeding fiscal year.

SEC. 112. AUDITS.

    (a) Requirement.--After the close of each program period covered by 
an application approved under section 107(d), a State shall audit the 
expenditures of the State during the program period from amounts 
received under this title.
    (b) Independent Auditor.--An audit under this section shall be 
conducted--
            (1) by an entity that is independent of any agency 
        administering activities that receive assistance under this 
        title; and
            (2) in accordance with generally accepted auditing 
        principles.
    (c) Submission.--Not later than 30 days after the completion of an 
audit under this section, the State shall submit a copy of the audit to 
the legislature of the State and to the Secretary.
    (d) Repayment of Amounts.--Each State shall repay to the United 
States any amounts determined through an audit under this section to 
have not been expended in accordance with this title, or the Secretary 
may offset the amounts against any other amount to which the State is 
or may be entitled under this title.

SEC. 113. REPORT BY SECRETARY.

    Not later than July 31, 2007, and annually thereafter, the 
Secretary shall submit to the Committee on Energy and Natural Resources 
of the Senate and the Committee on Energy and Commerce of the House of 
Representatives a report that contains--
            (1) a summary and analysis of the data and information 
        provided to the Secretary in the State audits submitted under 
        section 112; and
            (2) an assessment, and if appropriate, recommendations for 
        Congress concerning efforts that should be undertaken to 
        improve fuel assistance in the United States.

SEC. 114. NONDISCRIMINATION.

    (a) In General.--The Secretary shall not provide financial 
assistance for any program, project, or activity under this title 
unless the grant or contract with respect to the program, project, or 
activity specifically provides that no person with responsibilities for 
the operation of the program, project, or activity will discriminate 
with respect to the program, project, or activity because of race, 
religion, color, national origin, sex, or disability.
    (b) Enforcement.--The powers, remedies, and procedures set forth in 
title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) 
shall be the powers, remedies, and procedures this section provides to 
the Secretary concerning a violation of subsection (a).

SEC. 115. AMOUNTS RESERVED; ALLOTMENTS.

    (a) Definition of State.--In this section, the term ``State'' 
means--
            (1) each of the 50 States;
            (2) the District of Columbia; and
            (3) the Commonwealth of Puerto Rico.
    (b) Amounts Reserved.--
            (1) Virgin islands.--The Secretary shall reserve not to 
        exceed \1/2\ of 1 percent of the amount appropriated under 
        section 103 for each fiscal year for payments to the Virgin 
        Islands of the United States.
            (2) Indian tribes.--The Secretary shall reserve not more 
        than 3 percent of the amount appropriated under section 103 for 
        each fiscal year for payments to Indian tribes and tribal 
        organizations.
    (c) State Allotment.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), from the amounts appropriated under section 103 for each 
        fiscal year remaining after the reservations required under 
        subsection (b) (referred to in this paragraph as the 
        ``remainder''), the Secretary shall allot to each State an 
        amount that is equal to an amount that bears the same ratio to 
        the remainder as the population of the State bears to the 
        population of all States, based on the latest available Federal 
        census conducted under section 141(a) of title 13, United 
        States Code.
            (2) Adjustment.--Except as provided in paragraph (3), the 
        Secretary may adjust the allotment required under paragraph (1) 
        to take into account the number of eligible households under 
        this title that reside in a State.
            (3) Insufficient funds.--If the Secretary finds that the 
        total amount of allotments to which States would otherwise be 
        entitled for a fiscal year under paragraphs (1) and (2) will 
        exceed the amount of funds that will be made available to 
        provide the allotments for the fiscal year, the Secretary shall 
        reduce the allotments made to States under this subsection, on 
        a pro rata basis, to the extent necessary to allot under this 
        subsection a total amount that is equal to the funds that will 
        be made available.
    (d) Data and Information.--The Secretary shall obtain from each 
appropriate Federal agency, the most recent data and information 
necessary to determine the allotments required under subsection (c).
    (e) Reallotments.--
            (1) In general.--Any portion of an allotment under 
        subsection (c) to a State that the Secretary determines is not 
        required to carry out a State plan approved under section 
        107(d) and any amounts repaid to the Secretary under this 
        title, during the period for which the allotment is made 
        available, shall be reallotted by the Secretary to other States 
        in proportion to the original allotments to the other States.
            (2) Limitations.--
                    (A) Reduction.--The amount of any reallotment to 
                which a State is entitled under paragraph (1) shall be 
                reduced to the extent that the allotment exceeds the 
                amount that the Secretary estimates will be used in the 
                State to carry out a State plan approved under section 
                107(d).
                    (B) Reallotments.--The amount of the reduction 
                shall be similarly reallotted among States for which no 
                reduction in an allotment or reallotment is required by 
                this paragraph.
            (3) Amounts reallotted.--For purposes of any other section 
        of this title, any amount reallotted to a State under this 
        subsection shall be considered to be part of the allotment made 
        under subsection (c) to the State.

              TITLE II--TRUST FUND AND REVENUE PROVISIONS

SEC. 201. ESTABLISHMENT OF FUEL ASSISTANCE BLOCK GRANT TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to trust fund code) is amended by adding at the 
end the following:

``SEC. 9511. FUEL ASSISTANCE BLOCK GRANT TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Fuel Assistance 
Block Grant Trust Fund' (referred to in this section as the `Trust 
Fund'), consisting of such amounts as may be appropriated or credited 
to the Trust Fund as provided in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There is hereby appropriated to the 
Trust Fund for each fiscal year an amount equivalent to the increase in 
revenues received in the Treasury during such fiscal year as the result 
of the amendments made by sections 202 and 203 of the Fuel Emergency 
Relief Act.
    ``(c) Distribution of Amounts in Trust Fund.--Amounts in the Trust 
Fund shall be available, as provided by appropriation Acts, to provide 
for the fuel assistance block grant program established under title I 
of the Fuel Emergency Relief Act.
    ``(d) Termination of Trust Fund.--
            ``(1) In general.--Subsection (b) shall not apply with 
        respect to any fiscal year beginning after September 30, 2008.
            ``(2) Transfer of remaining funds.--On October 1, 2008, the 
        Secretary shall transfer any remaining funds in the Trust Fund 
        to the general fund to the extent such funds are not needed to 
        meet any outstanding obligations of the fuel assistance block 
        grant program established under title I of the Fuel Emergency 
        Relief Act.''.
    (b) Conforming Amendment.--The table of sections for subchapter A 
of chapter 98 of such Code is amended by adding at the end the 
following:

``Sec. 9511. Fuel Assistance Block Grant Trust Fund.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 202. REVALUATION OF LIFO INVENTORIES OF LARGE INTEGRATED OIL 
              COMPANIES.

    (a) General Rule.--Notwithstanding any other provision of law, if a 
taxpayer is an applicable integrated oil company for its last taxable 
year ending in calendar year 2005, the taxpayer shall--
            (1) increase, effective as of the close of such taxable 
        year, the value of each historic LIFO layer of inventories of 
        crude oil, natural gas, or any other petroleum product (within 
        the meaning of section 4611) by the layer adjustment amount, 
        and
            (2) decrease its cost of goods sold for such taxable year 
        by the aggregate amount of the increases under paragraph (1).
If the aggregate amount of the increases under paragraph (1) exceed the 
taxpayer's cost of goods sold for such taxable year, the taxpayer's 
gross income for such taxable year shall be increased by the amount of 
such excess.
    (b) Layer Adjustment Amount.--For purposes of this section--
            (1) In general.--The term ``layer adjustment amount'' 
        means, with respect to any historic LIFO layer, the product 
        of--
                    (A) $18.75, and
                    (B) the number of barrels of crude oil (or in the 
                case of natural gas or other petroleum products, the 
                number of barrel-of-oil equivalents) represented by the 
                layer.
            (2) Barrel-of-oil equivalent.--The term ``barrel-of-oil 
        equivalent'' has the meaning given such term by section 
        29(d)(5) (as in effect before its redesignation by the Energy 
        Tax Incentives Act of 2005).
    (c) Application of Requirement.--
            (1) No change in method of accounting.--Any adjustment 
        required by this section shall not be treated as a change in 
        method of accounting.
            (2) Underpayments of estimated tax.--No addition to the tax 
        shall be made under section 6655 of the Internal Revenue Code 
        of 1986 (relating to failure by corporation to pay estimated 
        tax) with respect to any underpayment of an installment 
        required to be paid with respect to the taxable year described 
        in subsection (a) to the extent such underpayment was created 
        or increased by this section.
    (d) Applicable Integrated Oil Company.--For purposes of this 
section, the term ``applicable integrated oil company'' means an 
integrated oil company (as defined in section 291(b)(4) of the Internal 
Revenue Code of 1986) which has an average daily worldwide production 
of crude oil of at least 500,000 barrels for the taxable year and which 
had gross receipts in excess of $1,000,000,000 for its last taxable 
year ending during calendar year 2005. For purposes of this subsection 
all persons treated as a single employer under subsections (a) and (b) 
of section 52 of the Internal Revenue Code of 1986 shall be treated as 
1 person and, in the case of a short taxable year, the rule under 
section 448(c)(3)(B) shall apply.
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