H. R. 2884
One Hundred Sixth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the twenty-fourth day of January, two thousand
An Act
To extend energy conservation programs under the Energy Policy and Conservation
Act through fiscal year 2003.
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 ‘‘Energy Act of 2000’’.
TITLE I—STRATEGIC PETROLEUM
RESERVE
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Energy Policy and Conservation
Act Amendments of 2000’’.
SEC. 102. AMENDMENT TO SECTION 2 OF THE ENERGY POLICY AND
CONSERVATION ACT.
Section 2 of the Energy Policy and Conservation Act (42 U.S.C.
6201) is amended—
(1) in paragraph (1) by striking ‘‘standby’’ and ‘‘, subject
to congressional review, to impose rationing, to reduce demand
for energy through the implementation of energy conservation
plans, and’’; and
(2) by striking paragraphs (3) and (6).
SEC. 103. AMENDMENT TO TITLE I OF THE ENERGY POLICY AND CON-
SERVATION ACT.
Title I of the Energy Policy and Conservation Act (42 U.S.C.
6211–6251) is amended—
(1) by striking section 102 (42 U.S.C. 6211) and its heading;
(2) by striking section 104(b)(1);
(3) by striking section 106 (42 U.S.C. 6214) and its heading;
(4) by amending section 151(b) (42 U.S.C. 6231) to read
as follows:
‘‘(b) It is the policy of the United States to provide for the
creation of a Strategic Petroleum Reserve for the storage of up
to 1 billion barrels of petroleum products to reduce the impact
of disruptions in supplies of petroleum products, to carry out obliga-
tions of the United States under the international energy program,
and for other purposes as provided for in this Act.’’;
(5) in section 152 (42 U.S.C. 6232)—
(A) by striking paragraphs (1), (3), and (7); and
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(B) in paragraph (11) by striking ‘‘; such term includes
the Industrial Petroleum Reserve, the Early Storage
Reserve, and the Regional Petroleum Reserve’’.
(6) by striking section 153 (42 U.S.C. 6233) and its heading;
(7) in section 154 (42 U.S.C. 6234)—
(A) by amending subsection (a) to read as follows:
‘‘(a) A Strategic Petroleum Reserve for the storage of up to
1 billion barrels of petroleum products shall be created pursuant
to this part.’’;
(B) by amending subsection (b) to read as follows:
‘‘(b) The Secretary, in accordance with this part, shall exercise
authority over the development, operation, and maintenance of
the Reserve.’’; and
(C) by striking subsections (c), (d), and (e);
(8) by striking section 155 (42 U.S.C. 6235) and its heading;
(9) by striking section 156 (42 U.S.C. 6236) and its heading;
(10) by striking section 157 (42 U.S.C. 6237) and its
heading;
(11) by striking section 158 (42 U.S.C. 6238) and its
heading;
(12) by amending the heading for section 159 (42 U.S.C.
6239) to read, ‘‘Development, Operation, and Maintenance of
the Reserve’’;
(13) in section 159 (42 U.S.C. 6239)—
(A) by striking subsections (a), (b), (c), (d), and (e);
(B) by amending subsection (f ) to read as follows:
‘‘(f ) In order to develop, operate, or maintain the Strategic
Petroleum Reserve, the Secretary may—
‘‘(1) issue rules, regulations, or orders;
‘‘(2) acquire by purchase, condemnation, or otherwise, land
or interests in land for the location of storage and related
facilities;
‘‘(3) construct, purchase, lease, or otherwise acquire storage
and related facilities;
‘‘(4) use, lease, maintain, sell or otherwise dispose of land
or interests in land, or of storage and related facilities acquired
under this part, under such terms and conditions as the Sec-
retary considers necessary or appropriate;
‘‘(5) acquire, subject to the provisions of section 160, by
purchase, exchange, or otherwise, petroleum products for stor-
age in the Strategic Petroleum Reserve;
‘‘(6) store petroleum products in storage facilities owned
and controlled by the United States or in storage facilities
owned by others if those facilities are subject to audit by the
United States;
‘‘(7) execute any contracts necessary to develop, operate,
or maintain the Strategic Petroleum Reserve;
‘‘(8) bring an action, when the Secretary considers it nec-
essary, in any court having jurisdiction over the proceedings,
to acquire by condemnation any real or personal property,
including facilities, temporary use of facilities, or other interests
in land, together with any personal property located on or
used with the land.’’; and
(C) in subsection (g)—
(i) by striking ‘‘implementation’’ and inserting
‘‘development’’; and
(ii) by striking ‘‘Plan’’;
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(D) by striking subsections (h) and (i);
(E) by amending subsection ( j) to read as follows:
‘‘( j) If the Secretary determines expansion beyond 700,000,000
barrels of petroleum product inventory is appropriate, the Secretary
shall submit a plan for expansion to the Congress.’’; and
(F) by amending subsection (l) to read as follows:
‘‘(l) During a drawdown and sale of Strategic Petroleum Reserve
petroleum products, the Secretary may issue implementing rules,
regulations, or orders in accordance with section 553 of title 5,
United States Code, without regard to rulemaking requirements
in section 523 of this Act, and section 501 of the Department
of Energy Organization Act (42 U.S.C. 7191).’’;
(14) in section 160 (42 U.S.C. 6240)—
(A) in subsection (a), by striking all before the dash
and inserting the following—
‘‘(a) The Secretary may acquire, place in storage, transport,
or exchange’’;
(B) in subsection (a)(1) by striking all after ‘‘Federal
lands’’;
(C) in subsection (b), by striking ‘‘, including the Early
Storage Reserve and the Regional Petroleum Reserve’’ and
by striking paragraph (2); and
(D) by striking subsections (c), (d), (e), and (g);
(15) in section 161 (42 U.S.C. 6241)—
(A) by striking ‘‘Distribution of the Reserve’’ in the
title of this section and inserting ‘‘Sale of Petroleum Prod-
ucts’’;
(B) in subsection (a), by striking ‘‘drawdown and dis-
tribute’’ and inserting ‘‘drawdown and sell petroleum prod-
ucts in’’;
(C) by striking subsections (b), (c), and (f );
(D) by amending subsection (d)(1) to read as follows:
‘‘(d)(1) Drawdown and sale of petroleum products from the
Strategic Petroleum Reserve may not be made unless the President
has found drawdown and sale are required by a severe energy
supply interruption or by obligations of the United States under
the international energy program.’’;
(E) by amending subsection (e) to read as follows:
‘‘(e)(1) The Secretary shall sell petroleum products withdrawn
from the Strategic Petroleum Reserve at public sale to the highest
qualified bidder in the amounts, for the period, and after a notice
of sale considered appropriate by the Secretary, and without regard
to Federal, State, or local regulations controlling sales of petroleum
products.
‘‘(2) The Secretary may cancel in whole or in part any offer
to sell petroleum products as part of any drawdown and sale under
this section.’’; and
(F) in subsection (g)—
(i) by amending paragraph (1) to read as follows:
‘‘(g)(1) The Secretary shall conduct a continuing evaluation
of the drawdown and sales procedures. In the conduct of an evalua-
tion, the Secretary is authorized to carry out a test drawdown
and sale or exchange of petroleum products from the Reserve.
Such a test drawdown and sale or exchange may not exceed
5,000,000 barrels of petroleum products.’’;
(ii) by striking paragraph (2);
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(iii) in paragraph (4), by striking ‘‘90’’ and inserting
‘‘95’’;
(iv) in paragraph (5), by striking ‘‘drawdown and
distribution’’ and inserting ‘‘test’’;
(v) by amending paragraph (6) to read as follows:
‘‘(6) In the case of a sale of any petroleum products under
this subsection, the Secretary shall, to the extent funds are
available in the SPR Petroleum Account as a result of such
sale, acquire petroleum products for the Reserve within the
12-month period beginning after completion of the sale.’’; and
(vi) in paragraph (8), by striking ‘‘drawdown and
distribution’’ and inserting ‘‘test’’;
(G) in subsection (h)—
(i) in paragraph (1) by striking ‘‘distribute’’ and
inserting ‘‘sell petroleum products from’’;
(ii) by striking ‘‘and’’ at the end of paragraph (1)(A)
and by striking ‘‘shortage,’’ at the end of paragraph
(1)(B) and inserting ‘‘shortage; and
‘‘(C) the Secretary of Defense has found that action
taken under this subsection will not impair national secu-
rity,’’;
(iii) in paragraph (2) by striking ‘‘In no case may
the Reserve’’ and inserting ‘‘Petroleum products from
the Reserve may not’’; and
(iv) in paragraph (3) by striking ‘‘distribution’’ each
time it appears and inserting ‘‘sale’’;
(16) by striking section 164 (42 U.S.C. 6244) and its
heading;
(17) by amending section 165 (42 U.S.C. 6245) and its
heading to read as follows:
‘‘ANNUAL REPORT
‘‘SEC. 165. The Secretary shall report annually to the President
and the Congress on actions taken to implement this part. This
report shall include—
‘‘(1) the status of the physical capacity of the Reserve
and the type and quantity of petroleum products in the Reserve;
‘‘(2) an estimate of the schedule and cost to complete
planned equipment upgrade or capital investment in the
Reserve, including upgrades and investments carried out as
part of operational maintenance or extension of life activities;
‘‘(3) an identification of any life-limiting conditions or oper-
ational problems at any Reserve facility, and proposed remedial
actions including an estimate of the schedule and cost of imple-
menting those remedial actions;
‘‘(4) a description of current withdrawal and distribution
rates and capabilities, and an identification of any operational
or other limitations on those rates and capabilities;
‘‘(5) a listing of petroleum product acquisitions made in
the preceding year and planned in the following year, including
quantity, price, and type of petroleum;
‘‘(6) a summary of the actions taken to develop, operate,
and maintain the Reserve;
‘‘(7) a summary of the financial status and financial trans-
actions of the Strategic Petroleum Reserve and Strategic Petro-
leum Reserve Petroleum Accounts for the year;
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‘‘(8) a summary of expenses for the year, and the number
of Federal and contractor employees;
‘‘(9) the status of contracts for development, operation,
maintenance, distribution, and other activities related to the
implementation of this part;
‘‘(10) a summary of foreign oil storage agreements and
their implementation status;
‘‘(11) any recommendations for supplemental legislation or
policy or operational changes the Secretary considers necessary
or appropriate to implement this part.’’;
(18) in section 166 (42 U.S.C. 6246) by striking ‘‘for fiscal
year 1997.’’;
(19) in section 167 (42 U.S.C. 6247)—
(A) in subsection (b)—
(i) by striking ‘‘and the drawdown’’ and inserting
‘‘for test sales of petroleum products from the Reserve,
and for the drawdown, sale,’’;
(ii) by striking paragraph (1); and
(iii) in paragraph (2), by striking ‘‘after fiscal year
1982’’; and
(B) by striking subsection (e);
(20) in section 171 (42 U.S.C. 6249)—
(A) by amending subsection (b)(2)(B) to read as follows:
‘‘(B) the Secretary notifies each House of the Congress
of the determination and identifies in the notification the
location, type, and ownership of storage and related facili-
ties proposed to be included, or the volume, type, and
ownership of petroleum products proposed to be stored,
in the Reserve, and an estimate of the proposed benefits.’’;
(B) in subsection (b)(3), by striking ‘‘distribution of’’
and inserting ‘‘sale of petroleum products from’’;
(21) in section 172 (42 U.S.C. 6249a), by striking sub-
sections (a) and (b);
(22) by striking section 173 (42 U.S.C. 6249b) and its
heading; and
(23) in section 181 (42 U.S.C. 6251), by striking ‘‘March
31, 2000’’ each time it appears and inserting ‘‘September 30,
2003’’.
SEC. 104. AMENDMENT TO TITLE II OF THE ENERGY POLICY AND CON-
SERVATION ACT.
Title II of the Energy Policy and Conservation Act (42 U.S.C.
6211–6251) is amended—
(1) by striking part A (42 U.S.C. 6261 through 6264) and
its heading;
(2) by adding at the end of section 256(h), ‘‘There are
authorized to be appropriated for fiscal years 2000 through
2003, such sums as may be necessary.’’.
(3) by striking part C (42 U.S.C. 6281 through 6282) and
its heading; and
(4) in section 281 (42 U.S.C. 6285), by striking ‘‘March
31, 2000’’ each time it appears and inserting ‘‘September 30,
2003’’.
SEC. 105. CLERICAL AMENDMENTS.
The table of contents for the Energy Policy and Conservation
Act is amended—
H. R. 2884—6
(1) by striking the items relating to sections 102, 106,
153, 155, 156, 157, 158, and 164;
(2) by amending the item relating to section 159 to read
as follows: ‘‘Development, Operation, and Maintenance of the
Reserve.’’;
(3) by amending the item relating to section 161 to read
as follows: ‘‘Drawdown and Sale of Petroleum Products’’; and
(4) by amending the item relating to section 165 to read
as follows: ‘‘Annual Report’’.
TITLE II—HEATING OIL RESERVE
SEC. 201. NORTHEAST HOME HEATING OIL RESERVE.
(a) Title I of the Energy Policy and Conservation Act is amended
by—
(1) redesignating part D as part E;
(2) redesignating section 181 as section 191; and
(3) inserting after part C the following new part D:
‘‘PART D—NORTHEAST HOME HEATING OIL RESERVE
‘‘ESTABLISHMENT
‘‘SEC. 181. (a) Notwithstanding any other provision of this Act,
the Secretary may establish, maintain, and operate in the Northeast
a Northeast Home Heating Oil Reserve. A Reserve established
under this part is not a component of the Strategic Petroleum
Reserve established under part B of this title. A Reserve established
under this part shall contain no more than 2 million barrels of
petroleum distillate.
‘‘(b) For the purposes of this part—
‘‘(1) the term ‘Northeast’ means the States of Maine, New
Hampshire, Vermont, Massachusetts, Connecticut, Rhode
Island, New York, Pennsylvania, and New Jersey;
‘‘(2) the term ‘petroleum distillate’ includes heating oil and
diesel fuel; and
‘‘(3) the term ‘Reserve’ means the Northeast Home Heating
Oil Reserve established under this part.
‘‘AUTHORITY
‘‘SEC. 182. To the extent necessary or appropriate to carry
out this part, the Secretary may—
‘‘(1) purchase, contract for, lease, or otherwise acquire,
in whole or in part, storage and related facilities, and storage
services;
‘‘(2) use, lease, maintain, sell, or otherwise dispose of stor-
age and related facilities acquired under this part;
‘‘(3) acquire by purchase, exchange (including exchange
of petroleum products from the Strategic Petroleum Reserve
or received as royalty from Federal lands), lease, or otherwise,
petroleum distillate for storage in the Northeast Home Heating
Oil Reserve;
‘‘(4) store petroleum distillate in facilities not owned by
the United States; and
‘‘(5) sell, exchange, or otherwise dispose of petroleum dis-
tillate from the Reserve established under this part, including
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to maintain the quality or quantity of the petroleum distillate
in the Reserve or to maintain the operational capability of
the Reserve.
‘‘CONDITIONS FOR RELEASE; PLAN
‘‘SEC. 183. (a) FINDING.—The Secretary may sell products from
the Reserve only upon a finding by the President that there is
a severe energy supply interruption. Such a finding may be made
only if he determines that—
‘‘(1) a dislocation in the heating oil market has resulted
from such interruption; or
‘‘(2) a circumstance, other than that described in paragraph
(1), exists that constitutes a regional supply shortage of signifi-
cant scope and duration and that action taken under this
section would assist directly and significantly in reducing the
adverse impact of such shortage.
‘‘(b) DEFINITION.—For purposes of this section a ‘dislocation
in the heating oil market’ shall be deemed to occur only when—
‘‘(1) The price differential between crude oil, as reflected
in an industry daily publication such as ‘Platt’s Oilgram Price
Report’ or ‘Oil Daily’ and No. 2 heating oil, as reported in
the Energy Information Administration’s retail price data for
the Northeast, increases by more tan 60 percent over its 5
year rolling average for the months of mid-October through
March, and continues for 7 consecutive days; and
‘‘(2) The price differential continues to increase during the
most recent week for which price information is available.
‘‘(c) CONTINUING EVALUATION.—The Secretary shall conduct a
continuing evaluation of the residential price data supplied by the
Energy Information Administration for the Northeast and data
on crude oil prices from published sources.
‘‘(d) RELEASE OF PETROLEUM DISTILLATE.—After consultation
with the heating oil industry, the Secretary shall determine proce-
dures governing the release of petroleum distillate from the Reserve.
The procedures shall provide that—
‘‘(1) the Secretary may—
‘‘(A) sell petroleum distillate from the Reserve through
a competitive process, or
‘‘(B) enter into exchange agreements for the petroleum
distillate that results in the Secretary receiving a greater
volume of petroleum distillate as repayment than the
volume provided to the acquirer;
‘‘(2) in all such sales or exchanges, the Secretary shall
receive revenue or its equivalent in petroleum distillate that
provides the Department with fair market value. At no time
may the oil be sold or exchanged resulting in a loss of revenue
or value to the United States; and
‘‘(3) the Secretary shall only sell or dispose of the oil in
the Reserve to entities customarily engaged in the sale and
distribution of petroleum distillate.
‘‘(e) PLAN.—Within 45 days of the date of the enactment of
this section, the Secretary shall transmit to the President and,
if the President approves, to the Congress a plan describing—
‘‘(1) the acquisition of storage and related facilities or stor-
age services for the Reserve, including the potential use of
storage facilities not currently in use;
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‘‘(2) the acquisition of petroleum distillate for storage in
the Reserve;
‘‘(3) the anticipated methods of disposition of petroleum
distillate from the Reserve;
‘‘(4) the estimated costs of establishment, maintenance,
and operation of the Reserve;
‘‘(5) efforts the Department will take to minimize any poten-
tial need for future drawdowns and ensure that distributors
and importers are not discouraged from maintaining and
increasing supplies to the Northeast; and
‘‘(6) actions to ensure quality of the petroleum distillate
in the Reserve.
‘‘NORTHEAST HOME HEATING OIL RESERVE ACCOUNT
‘‘SEC. 184. (a) Upon a decision of the Secretary of Energy
to establish a Reserve under this part, the Secretary of the Treasury
shall establish in the Treasury of the United States an account
known as the ‘Northeast Home Heating Oil Reserve Account’
(referred to in this section as the ‘Account’).
‘‘(b) the Secretary of the Treasury shall deposit in the Account
any amounts appropriated to the Account and any receipts from
the sale, exchange, or other disposition of petroleum distillate from
the Reserve.
‘‘(c) The Secretary of Energy may obligate amounts in the
Account to carry out activities under this part without the need
for further appropriation, and amounts available to the Secretary
of Energy for obligation under this section shall remain available
without fiscal year limitation.
‘‘EXEMPTIONS
‘‘SEC. 185. An action taken under this part is not subject
to the rulemaking requirements of section 523 of this Act, section
501 of the Department of Energy Organization Act, or section
553 of title 5, United States Code.
‘‘AUTHORIZATION OF APPROPRIATIONS
‘‘SEC. 186. There are authorized to be appropriated for fiscal
years 2001, 2002, and 2003 such sums as may be necessary to
implement this part.’’.
SEC. 202. USE OF ENERGY FUTURES FOR FUEL PURCHASES.
(a) HEATING OIL STUDY.—The Secretary shall conduct a study
on—
(1) the use of energy futures and options contracts to pro-
vide cost-effective protection from sudden surges in the price
of heating oil (including No. 2 fuel oil, propane, and kerosene)
for State and local government agencies, consumer cooperatives,
and other organizations that purchase heating oil in bulk to
market to end use consumers in the Northeast (as defined
in section 201); and
(2) how to most effectively inform organizations identified
in paragraph (1) about the benefits and risks of using energy
futures and options contracts.
(b) REPORT.—The Secretary shall transmit the study required
in this section to the Committee on Commerce of the House of
Representatives and the Committee on Energy and Natural
H. R. 2884—9
Resources of the Senate not later than 180 days after the enactment
of this section. The report shall contain a review of prior studies
conducted on the subjects described in subsection (a).
TITLE III—MARGINAL WELL
PURCHASES
SEC. 301. PURCHASE OF OIL FROM MARGINAL WELLS.
(a) PURCHASE OF OIL FROM MARGINAL WELLS.—Part B of title
I of the Energy Policy and Conservation Act (42 U.S.C. 6232 et
seq.) is amended by adding the following new section after section
168:
‘‘PURCHASE OF OIL FROM MARGINAL WELLS
‘‘SEC. 169. (a) IN GENERAL.—From amounts authorized under
section 166, in any case in which the price of oil decreases to
an amount less than $15.00 per barrel (an amount equal to the
annual average well head price per barrel for all domestic crude
oil), adjusted for inflation, the Secretary may purchase oil from
a marginal well at $15.00 per barrel, adjusted for inflation.
‘‘(b) DEFINITION OF MARGINAL WELL.—The term ‘marginal well’
has the same meaning as the definition of ‘stripper well property’
in section 613A(c)(6)(E) of the Internal Revenue Code (26 U.S.C.
613A(c)(6)(E)).’’.
(b) CONFORMING AMENDMENT.—The table of contents for the
Energy Policy and Conservation Act is amended by inserting after
the item relating to section 168 the following:
‘‘Sec. 169. Purchase of oil from marginal wells.’’.
TITLE IV—FEDERAL ENERGY
MANAGEMENT
SEC. 401. FEMP.
Section 801 of the National Energy Conservation Policy Act
(42 U.S.C. 8287(a)(2)(D)(iii), is amended by striking ‘‘$750,000’’ and
inserting ‘‘$10,000,000’’.
TITLE V—ALASKA STATE JURISDICTION
OVER 
SMALL 
HYDROELECTRIC
PROJECTS
SEC. 501. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC
PROJECTS.
Part I of the Federal Power Act (16 U.S.C. 792 et seq.) is
amended by adding at the end the following:
‘‘SEC. 32. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC
PROJECTS.
‘‘(a) DISCONTINUANCE OF REGULATION BY THE COMMISSION.—
Notwithstanding sections 4(e) and 23(b), the Commission shall dis-
continue exercising licensing and regulatory authority under this
H. R. 2884—10
part over qualifying project works in the State of Alaska, effective
on the date on which the Commission certifies that the State
of Alaska has in place a regulatory program for water-power
development that—
‘‘(1) protects the public interest, the purposes listed in
paragraph (2), and the environment to the same extent provided
by licensing and regulation by the Commission under this part
and other applicable Federal laws, including the Endangered
Species Act (16 U.S.C. 1531 et seq.) and the Fish and Wildlife
Coordination Act (16 U.S.C. 661 et seq.);
‘‘(2) gives equal consideration to the purposes of—
‘‘(A) energy conservation;
‘‘(B) the protection, mitigation of damage to, and
enhancement of, fish and wildlife (including related
spawning grounds and habitat);
‘‘(C) the protection of recreational opportunities;
‘‘(D) the preservation of other aspects of environmental
quality;
‘‘(E) the interests of Alaska Natives; and
‘‘(F) other beneficial public uses, including irrigation,
flood control, water supply, and navigation; and
‘‘(3) requires, as a condition of a license for any project
works—
‘‘(A) the construction, maintenance, and operation by
a licensee at its own expense of such lights and signals
as may be directed by the Secretary of the Department
in which the Coast Guard is operating, and such fishways
as may be prescribed by the Secretary of the Interior or
the Secretary of Commerce, as appropriate;
‘‘(B) the operation of any navigation facilities which
may be constructed as part of any project to be controlled
at all times by such reasonable rules and regulations as
may be made by the Secretary of the Army; and
‘‘(C) conditions for the protection, mitigation, and
enhancement of fish and wildlife based on recommenda-
tions received pursuant to the Fish and Wildlife Coordina-
tion 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 pur-
poses 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 the 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 the 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
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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 nonquali-
fying 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 Commis-
sion 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.—Notwith-
standing 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 regu-
latory 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 1 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).’’.
H. R. 2884—12
TITLE VI—WEATHERIZATION, SUMMER
FILL, 
HYDROELECTRIC 
LICENSING
PROCEDURES, AND INVENTORY OF
OIL AND GAS RESERVES
SEC. 601. CHANGES IN WEATHERIZATION PROGRAM TO PROTECT LOW-
INCOME PERSONS.
(a) The matter under the heading, ‘‘ENERGY CONSERVATION
(INCLUDING TRANSFER OF FUNDS)’’ in title II of the Department
of the Interior and Related Agencies Appropriations Act, 2000 (113
Stat. 1535, 1501A–180), is amended by striking ‘‘grants:’’ and all
that follows and inserting ‘‘grants.’’.
(b) Section 415 of the Energy Conservation and Production
Act (42 U.S.C. 6865) is amended—
(1) in subsection (a)(1) by striking the first sentence;
(2) in subsection (a)(2) by—
(A) striking ‘‘(A)’’;
(B) striking ‘‘approve a State’s application to waive
the 40 percent requirement established in paragraph (1)
if the State includes in its plan’’ and inserting ‘‘establish’’;
and
(C) striking subparagraph (B);
(3) in subsection (c)(1) by—
(A) striking ‘‘paragraphs (3) and (4)’’ and inserting
‘‘paragraph (3)’’;
(B) striking ‘‘$1,600’’ and inserting ‘‘$2,500’’;
(C) striking ‘‘and’’ at the end of subparagraph (C);
(D) striking the period and inserting ‘‘, and’’ in subpara-
graph (D); and
(E) inserting after subparagraph (D) the following new
subparagraph:
‘‘(E) the cost of making heating and cooling modifica-
tions, including replacement’’;
(4) in subsection (c)(3) by—
(A) striking ‘‘1991, the $1,600 per dwelling unit limita-
tion’’ and inserting ‘‘2000, the $2,500 per dwelling unit
average’’;
(B) striking ‘‘limitation’’ and inserting ‘‘average’’ each
time it appears; and
(C) inserting ‘‘the’’ after ‘‘beginning of’’ in subparagraph
(B); and
(5) by striking subsection (c)(4).
SEC. 602. SUMMER FILL AND FUEL BUDGETING PROGRAMS.
(a) Part C of title II of the Energy Policy and Conservation
Act (42 U.S.C. 6211 et seq.) is amended by adding at the end
the following:
‘‘SEC. 273. SUMMER FILL AND FUEL BUDGETING PROGRAMS.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) BUDGET CONTRACT.—The term ‘budget contract’ means
a contract between a retailer and a consumer under which
the heating expenses of the consumer are spread evenly over
a period of months.
H. R. 2884—13
‘‘(2) FIXED-PRICE CONTRACT.—The term ‘fixed-price contract’
means a contract between a retailer and a consumer under
which the retailer charges the consumer a set price for propane,
kerosene, or heating oil without regard to market price fluctua-
tions.
‘‘(3) PRICE CAP CONTRACT.—The term ‘price cap contract’
means a contract between a retailer and a consumer under
which the retailer charges the consumer the market price for
propane, kerosene, or heating oil, but the cost of the propane,
kerosene, or heating oil may exceed a maximum amount stated
in the contract.
‘‘(b) ASSISTANCE.—At the request of the chief executive officer
of a State, the Secretary shall provide information, technical assist-
ance, and funding—
‘‘(1) to develop education and outreach programs to encour-
age consumers to fill their storage facilities for propane, ker-
osene, and heating oil during the summer months; and
‘‘(2) to promote the use of budget contracts, price cap con-
tracts, fixed-price contracts, and other advantageous financial
arrangements,
to avoid severe seasonal price increases for and supply shortages
of those products.
‘‘(c) PREFERENCE.—In implementing this section, the Secretary
shall give preference to States that contribute public funds or
leverage private funds to develop State summer fill and fuel budg-
eting programs.
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section—
‘‘(1) $25,000,000 for fiscal year 2001; and
‘‘(2) such sums as are necessary for each fiscal year there-
after.
‘‘(e) INAPPLICABILITY OF EXPIRATION PROVISION.—Section 281
does not apply to this section.’’.
(b) The table of contents in the first section of the Energy
Policy and Conservation Act (42 U.S.C. prec. 6201) is amended
by inserting after the item relating to section 272 the following:
‘‘Sec. 273. Summer fill and fuel budgeting programs.’’.
SEC. 603. EXPEDITED FERC HYDROELECTRIC LICENSING PROCE-
DURES.
The Federal Energy Regulatory Commission shall, in consulta-
tion with other appropriate agencies, immediately undertake a com-
prehensive review of policies, procedures, and regulations for the
licensing of hydroelectric projects to determine how to reduce the
cost and time of obtaining a license. The Commission shall report
its findings within 6 months of the date of the enactment of this
section to the Congress, including any recommendations for legisla-
tive changes.
SEC. 604. SCIENTIFIC INVENTORY OF OIL AND GAS RESERVES.
(a) IN GENERAL.—The Secretary of the Interior, in consultation
with the Secretaries of Agriculture and Energy, shall conduct an
inventory of all onshore Federal lands. The inventory shall
identify—
(1) the United States Geological Survey reserve estimates
of the oil and gas resources underlying these lands; and
H. R. 2884—14
(2) the extent and nature of any restrictions or impediments
to the development of such resources.
(b) REGULAR UPDATE.—Once completed, the USGS reserve esti-
mates and the surface availability data as provided in subsection
(a)(2) shall be regularly updated and made publically available.
(c) INVENTORY.—The inventory shall be provided to the Com-
mittee on Resources of the House of Representatives and to the
Committee on Energy and Natural Resources of the Senate within
2 years after the date of the enactment of this section.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated such sums as may be necessary to implement
this section.
SEC. 605. ANNUAL HOME HEATING READINESS REPORTS.
(a) IN GENERAL.—Part A of title I of the Energy Policy and
Conservation Act (42 U.S.C. 6211 et seq.) is amended by adding
at the end the following:
‘‘SEC. 108. ANNUAL HOME HEATING READINESS REPORTS.
‘‘(a) IN GENERAL.—On or before September 1 of each year,
the Secretary, acting through the Administrator of the Energy
Information Agency, shall submit to Congress a Home Heating
Readiness Report on the readiness of the natural gas, heating
oil and propane industries to supply fuel under various weather
conditions, including rapid decreases in temperature.
‘‘(b) CONTENTS.—The Home Heating Readiness Report shall
include—
‘‘(1) estimates of the consumption, expenditures, and aver-
age price per gallon of heating oil and propane and thousand
cubic feet of natural gas for the upcoming period of October
through March for various weather conditions, with special
attention to extreme weather, and various regions of the
country;
‘‘(2) an evaluation of—
‘‘(A) global and regional crude oil and refined product
supplies;
‘‘(B) the adequacy and utilization of refinery capacity;
‘‘(C) the adequacy, utilization, and distribution of
regional refined product storage capacity;
‘‘(D) weather conditions;
‘‘(E) the refined product transportation system;
‘‘(F) market inefficiencies; and
‘‘(G) any other factor affecting the functional capability
of the heating oil industry and propane industry that has
the potential to affect national or regional supplies and
prices;
‘‘(3) recommendations on steps that the Federal, State,
and local governments can take to prevent or alleviate the
impact of sharp and sustained increases in the price of natural
gas, heating oil, and propane; and
‘‘(4) recommendations on steps that companies engaged
in the production, refining, storage, transportation of heating
oil or propane, or any other activity related to the heating
oil industry or propane industry, can take to prevent or alleviate
the impact of sharp and sustained increases in the price of
heating oil and propane.
H. R. 2884—15
‘‘(c) INFORMATION
REQUESTS.—The Secretary may request
information necessary to prepare the Home Heating Readiness
Report from companies described in subsection (b)(4).’’.
(b) CONFORMING AND TECHNICAL AMENDMENTS.—The Energy
Policy and Conservation Act is amended—
(1) in the table of contents in the first section (42 U.S.C.
prec. 6201), by inserting after the item relating to section
106 the following:
‘‘Sec. 107. Major fuel burning stationary source.
‘‘Sec. 108. Annual home heating readiness reports.’’;
and
(2) in section 107 (42 U.S.C. 6215), by striking ‘‘SEC. 107.
(a) No Governor’’ and inserting the following:
‘‘SEC. 107. MAJOR FUEL BURNING STATIONARY SOURCE.
‘‘(a) No Governor’’.
TITLE VII—NATIONAL OIL HEAT
RESEARCH ALLIANCE ACT OF 2000
SEC. 701. SHORT TITLE.
This title may be cited as the ‘‘National Oilheat Research
Alliance Act of 2000’’.
SEC. 702. FINDINGS.
Congress finds that—
(1) oilheat is an important commodity relied on by approxi-
mately 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 mil-
lions 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 pro-
gram 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 commer-
cial and residential space and hot water heating.
SEC. 703. DEFINITIONS.
In this title:
(1) ALLIANCE.—The term ‘‘Alliance’’ means a national
oilheat research alliance established under section 704.
H. R. 2884—16
(2) CONSUMER
EDUCATION.—The term ‘‘consumer edu-
cation’’ means the provision of information to assist consumers
and other persons in making evaluations and decisions
regarding oilheat and other nonindustrial commercial or resi-
dential 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 vol-
umes 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 para-
graph (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 dis-
tillate’’ 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 dis-
tribution of oilheat utilization equipment.
(B) EXCLUSION.—The term ‘‘oilheat industry’’ does not
include ultimate consumers of oilheat.
(9) PUBLIC MEMBER.—The term ‘‘public member’’ means
a member of the Alliance described in section 705(c)(1)(F).
(10) QUALIFIED INDUSTRY ORGANIZATION.—The term ‘‘quali-
fied 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 Sec-
retary of Energy.
(14) WHOLESALE DISTRIBUTOR.—The term ‘‘wholesale dis-
tributor’’ means a person that—
(A)(i) produces No. 1 distillate or No. 2 dyed distillate;
H. R. 2884—17
(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. 704. REFERENDA.
(a) CREATION OF PROGRAM.—
(1) IN GENERAL.—The oilheat industry, through the quali-
fied industry organization, may conduct, at its own expense,
a referendum among retail marketers and wholesale distribu-
tors for the establishment of a national oilheat research alli-
ance.
(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 market-
ers 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 represent-
ative period.
(B) WHOLESALE DISTRIBUTORS.—Voting rights of whole-
sale 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 author-
ized to levy assessments under section 707.
(B) REQUIREMENT
OF
MAJORITY
OF
RETAIL
MARKET-
ERS.—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
H. R. 2884—18
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 the enactment of this title, a qualified State association
may notify the qualified industry organization in writing that
a referendum under paragraph (1) will not be conducted in
the State.
(b) SUBSEQUENT STATE PARTICIPATION.—The oilheat industry
in a State that has not participated initially in the Alliance may
subsequently elect to participate by conducting a referendum under
subsection (a).
(c) TERMINATION OR SUSPENSION.—
(1) IN GENERAL.—On the initiative of the Alliance or on
petition to the Alliance by retail marketers and wholesale
distributors representing 25 percent of the volume of oilheat
or weighted No. 1 distillate and No. 2 dyed distillate in each
class, the Alliance shall, at its own expense, hold a referendum,
to be conducted by an independent auditing firm selected by
the Alliance, to determine whether the oilheat industry favors
termination or suspension of the Alliance.
(2) VOLUME PERCENTAGES REQUIRED TO TERMINATE OR SUS-
PEND.—Termination or suspension shall not take effect unless
termination or suspension is approved by persons representing
more than one-half of the total volume of oilheat voted in
the retail marketer class or more than one-half of the total
volume of weighted No. 1 distillate and No. 2 dyed distillate
voted in the wholesale distributor class.
(3) TERMINATION BY A STATE.—A State may elect to termi-
nate participation by notifying the Alliance that 50 percent
of the oilheat volume in the State has voted in a referendum
to withdraw.
(d) CALCULATION OF OILHEAT SALES.—For the purposes of this
section and section 705, the volume of oilheat sold annually in
a State shall be determined on the basis of information provided
by the Energy Information Administration with respect to a cal-
endar year or other representative period.
SEC. 705. MEMBERSHIP.
(a) SELECTION.—
(1) IN GENERAL.—Except as provided in subsection (c)(1)(C),
the qualified industry organization shall select members of
the Alliance representing the oilheat industry in a State from
a list of nominees submitted by the qualified State association
in the State.
(2) VACANCIES.—A vacancy in the Alliance shall be filled
in the same manner as the original selection.
(b) REPRESENTATION.—In selecting members of the Alliance,
the qualified industry organization shall make best efforts to select
members that are representative of the oilheat industry, including
representation of—
(1) interstate and intrastate operators among retail market-
ers;
(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.
H. R. 2884—19
(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), one member representing each of the
States with the highest volume of annual oilheat sales,
as necessary to cause the total number of States rep-
resented under subparagraph (A) and this subparagraph
to equal 24.
(C) Five representatives of retail marketers, one each
to be selected by the qualified State associations of the
five States with the highest volume of annual oilheat sales.
(D) Five additional representatives of retail marketers.
(E) Twenty-one representatives of wholesale distribu-
tors.
(F) Six public members, who shall be representatives
of significant users of oilheat, the oilheat research commu-
nity, 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 para-
graph (1) may be employees of the qualified industry organiza-
tion or an industry trade association.
(d) COMPENSATION.—Alliance members shall receive no com-
pensation 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 two
full consecutive terms.
(3) FORMER MEMBERS.—A former member of the Alliance
may be returned to the Alliance if the member has not been
a member for a period of 2 years.
(4) INITIAL
APPOINTMENTS.—Initial appointments to the
Alliance shall be for terms of 1, 2, and 3 years, as determined
by the qualified industry organization, staggered to provide
for the subsequent selection of one-third of the members each
year.
SEC. 706. FUNCTIONS.
(a) IN GENERAL.—
(1) PROGRAMS, PROJECTS; CONTRACTS AND OTHER AGREE-
MENTS.—The Alliance—
(A) shall develop programs and projects and enter into
contracts or other agreements with other persons and enti-
ties for implementing this title, including programs—
(i) to enhance consumer and employee safety and
training;