H. R. 2884—20
(ii) to provide for research, development, and dem-
onstration of clean and efficient oilheat utilization
equipment; and
(iii) for consumer education; and
(B) may provide for the payment of the costs of carrying
out subparagraph (A) with assessments collected under
section 707.
(2) COORDINATION.—The Alliance shall coordinate its activi-
ties with industry trade associations and other persons as
appropriate to provide efficient delivery of services and to avoid
unnecessary duplication of activities.
(3) ACTIVITIES.—
(A) EXCLUSIONS.—Activities under clause (i) or (ii) of
paragraph (1)(A) shall not include advertising, promotions,
or consumer surveys in support of advertising or pro-
motions.
(B) RESEARCH, DEVELOPMENT, AND
DEMONSTRATION
ACTIVITIES.—
(i) IN GENERAL.—Research, development, and dem-
onstration activities under paragraph (1)(A)(ii) shall
include—
(I) all activities incidental to research, develop-
ment, and demonstration of clean and efficient
oilheat utilization equipment; and
(II) the obtaining of patents, including pay-
ment of attorney’s fees for making and perfecting
a patent application.
(ii) EXCLUDED
ACTIVITIES.—Research, develop-
ment, and demonstration activities under paragraph
(1)(A)(ii) shall not include research, development, and
demonstration of oilheat utilization equipment with
respect to which technically feasible and commercially
feasible operations have been verified, except that
funds may be provided for improvements to existing
equipment until the technical feasibility and commer-
cial feasibility of the operation of those improvements
have been verified.
(b) PRIORITIES.—In the development of programs and projects,
the Alliance shall give priority to issues relating to—
(1) research, development, and demonstration;
(2) safety;
(3) consumer education; and
(4) training.
(c) ADMINISTRATION.—
(1) OFFICERS; COMMITTEES; BYLAWS.—The Alliance—
(A) shall select from among its members a chairperson
and other officers as necessary;
(B) may establish and authorize committees and sub-
committees of the Alliance to take specific actions that
the Alliance is authorized to take; and
(C) shall adopt bylaws for the conduct of business
and the implementation of this title.
(2) SOLICITATION OF OILHEAT INDUSTRY COMMENT AND REC-
OMMENDATIONS.—The Alliance shall establish procedures for
the solicitation of oilheat industry comment and recommenda-
tions on any significant contracts and other agreements, pro-
grams, and projects to be funded by the Alliance.
H. R. 2884—21
(3) ADVISORY
COMMITTEES.—The Alliance may establish
advisory committees consisting of persons other than Alliance
members.
(4) VOTING.—Each member of the Alliance shall have one
vote in matters before the Alliance.
(d) ADMINISTRATIVE EXPENSES.—
(1) IN GENERAL.—The administrative expenses of operating
the Alliance (not including costs incurred in the collection of
assessments under section 707) plus amounts paid under para-
graph (2) shall not exceed 7 percent of the amount of assess-
ments collected in any calendar year, except that during the
first year of operation of the Alliance such expenses and
amounts shall not exceed 10 percent of the amount of assess-
ments.
(2) REIMBURSEMENT OF THE SECRETARY.—
(A) 
IN
GENERAL.—The 
Alliance 
shall 
annually
reimburse the Secretary for costs incurred by the Federal
Government relating to the Alliance.
(B) LIMITATION.—Reimbursement under subparagraph
(A) for any calendar year shall not exceed the amount
that the Secretary determines is twice the average annual
salary of one employee of the Department of Energy.
(e) BUDGET.—
(1) PUBLICATION OF PROPOSED BUDGET.—Before August 1
of each year, the Alliance shall publish for public review and
comment a proposed budget for the next calendar year,
including the probable costs of all programs, projects, and con-
tracts and other agreements.
(2) SUBMISSION TO THE SECRETARY AND CONGRESS.—After
review and comment under paragraph (1), the Alliance shall
submit the proposed budget to the Secretary and Congress.
(3) RECOMMENDATIONS BY THE SECRETARY.—The Secretary
may recommend for inclusion in the budget programs and
activities that the Secretary considers appropriate.
(4) IMPLEMENTATION.—The Alliance shall not implement
a proposed budget until the expiration of 60 days after submit-
ting the proposed budget to the Secretary.
(f ) RECORDS; AUDITS.—
(1) RECORDS.—The Alliance shall—
(A) keep records that clearly reflect all of the acts
and transactions of the Alliance; and
(B) make the records available to the public.
(2) AUDITS.—
(A) IN GENERAL.—The records of the Alliance (including
fee assessment reports and applications for refunds under
section 707(b)(4)) shall be audited by a certified public
accountant at least once each year and at such other times
as the Alliance may designate.
(B) AVAILABILITY OF AUDIT REPORTS.—Copies of each
audit report shall be provided to the Secretary, the mem-
bers of the Alliance, and the qualified industry organiza-
tion, and, on request, to other members of the oilheat
industry.
(C) POLICIES AND PROCEDURES.—
(i) IN GENERAL.—The Alliance shall establish poli-
cies and procedures for auditing compliance with this
title.
H. R. 2884—22
(ii) CONFORMITY
WITH
GAAP.—The policies and
procedures established under clause (i) shall conform
with generally accepted accounting principles.
(g) PUBLIC ACCESS TO ALLIANCE PROCEEDINGS.—
(1) PUBLIC NOTICE.—The Alliance shall give at least 30
days’ public notice of each meeting of the Alliance.
(2) MEETINGS OPEN TO THE PUBLIC.—Each meeting of the
Alliance shall be open to the public.
(3) MINUTES.—The minutes of each meeting of the Alliance
shall be made available to and readily accessible by the public.
(h) ANNUAL REPORT.—Each year the Alliance shall prepare
and make publicly available a report that—
(1) includes a description of all programs, projects, and
contracts and other agreements undertaken by the Alliance
during the previous year and those planned for the current
year; and
(2) details the allocation of Alliance resources for each
such program and project.
SEC. 707. ASSESSMENTS.
(a) RATE.—The assessment rate shall be equal to two-tenths-
cent per gallon of No. 1 distillate and No. 2 dyed distillate.
(b) COLLECTION RULES.—
(1) COLLECTION AT POINT OF SALE.—The assessment shall
be collected at the point of sale of No. 1 distillate and No.
2 dyed distillate by a wholesale distributor to a person other
than a wholesale distributor, including a sale made pursuant
to an exchange.
(2) 
RESPONSIBILITY
FOR
PAYMENT.—A 
wholesale
distributor—
(A) shall be responsible for payment of an assessment
to the Alliance on a quarterly basis; and
(B) shall provide to the Alliance certification of the
volume of fuel sold.
(3) NO OWNERSHIP INTEREST.—A person that has no owner-
ship interest in No. 1 distillate or No. 2 dyed distillate shall
not be responsible for payment of an assessment under this
section.
(4) FAILURE TO RECEIVE PAYMENT.—
(A) REFUND.—A wholesale distributor that does not
receive payments from a purchaser for No. 1 distillate
or No. 2 dyed distillate within 1 year of the date of sale
may apply for a refund from the Alliance of the assessment
paid.
(B) AMOUNT.—The amount of a refund shall not exceed
the amount of the assessment levied on the No. 1 distillate
or No. 2 dyed distillate for which payment was not received.
(5) IMPORTATION AFTER POINT OF SALE.—The owner of No.
1 distillate or No. 2 dyed distillate imported after the point
of sale—
(A) shall be responsible for payment of the assessment
to the Alliance at the point at which the product enters
the United States; and
(B) shall provide to the Alliance certification of the
volume of fuel imported.
(6) LATE PAYMENT CHARGE.—The Alliance may establish
a late payment charge and rate of interest to be imposed
H. R. 2884—23
on any person who fails to remit or pay to the Alliance any
amount due under this title.
(7) ALTERNATIVE
COLLECTION
RULES.—The Alliance may
establish, or approve a request of the oilheat industry in a
State for, an alternative means of collecting the assessment
if another means is determined to be more efficient or more
effective.
(c) SALE FOR USE OTHER THAN AS OILHEAT.—No. 1 distillate
and No. 2 dyed distillate sold for uses other than as oilheat are
excluded from the assessment.
(d) INVESTMENT
OF FUNDS.—Pending disbursement under a
program, project or contract or other agreement the Alliance may
invest funds collected through assessments, and any other funds
received by the Alliance, only—
(1) in obligations of the United States or any agency of
the United States;
(2) in general obligations of any State or any political
subdivision of a State;
(3) in any interest-bearing account or certificate of deposit
of a bank that is a member of the Federal Reserve System;
or
(4) in obligations fully guaranteed as to principal and
interest by the United States.
(e) STATE, LOCAL, AND REGIONAL PROGRAMS.—
(1) COORDINATION.—The Alliance shall establish a program
coordinating the operation of the Alliance with the operator
of any similar State, local, or regional program created under
State law (including a regulation), or similar entity.
(2) FUNDS MADE AVAILABLE TO QUALIFIED STATE ASSOCIA-
TIONS.—
(A) IN GENERAL.—
(i) BASE AMOUNT.—The Alliance shall make avail-
able to the qualified State association of each State
an amount equal to 15 percent of the amount of assess-
ments collected in the State.
(ii) ADDITIONAL AMOUNT.—
(I) IN GENERAL.—A qualified State association
may request that the Alliance provide to the
association any portion of the remaining 85 percent
of the amount of assessments collected in the
State.
(II) 
REQUEST
REQUIREMENTS.—A 
request
under this clause shall—
(aa) 
specify 
the 
amount 
of 
funds
requested;
(bb) describe in detail the specific uses
for which the requested funds are sought;
(cc) include a commitment to comply with
this title in using the requested funds; and
(dd) be made publicly available.
(III) DIRECT BENEFIT.—The Alliance shall not
provide any funds in response to a request under
this clause unless the Alliance determines that
the funds will be used to directly benefit the oilheat
industry.
(IV) MONITORING; TERMS, CONDITIONS, AND
REPORTING REQUIREMENTS.—The Alliance shall—