In the Senate of the United States,
October 19 (legislative day, September 22), 2000.
Resolved, That the bill from the House of Representa-
tives (H.R. 2884) entitled ‘‘An Act to extend energy con-
servation programs under the Energy Policy and Conserva-
tion Act through fiscal year 2003.’’, do pass with the fol-
lowing
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION. 1. SHORT TITLE.
This Act may be cited as the Energy Act of 2000.
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TITLE I—STRATEGIC
PETROLEUM RESERVE
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Energy Policy and Con-
servation Act Amendments of 2000’’.
SEC. 102. AMENDMENT TO SECTION 2 OF THE ENERGY POL-
ICY 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 ration-
ing, to reduce demand for energy through the imple-
mentation of energy conservation plans, and’’; and
(2) by striking paragraphs (3) and (6).
SEC. 103. AMENDMENT TO TITLE I OF THE ENERGY POLICY
AND CONSERVATION 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:
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‘‘(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 obligations of the United States
under the international energy program, and for other pur-
poses as provided for in this Act.’’;
(5) in section 152 (42 U.S.C. 6232)—
(A) by striking paragraphs (1), (3) and (7),
and
(B) in paragraph (11) by striking ‘‘; such
term includes the Industrial Petroleum Reserve,
the Early Storage Reserve, and the Regional Pe-
troleum 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:
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‘‘(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 Stra-
tegic Petroleum Reserve, the Secretary may—
‘‘(1) issue rules, regulations, or orders;
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‘‘(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 ‘‘, includ-
ing 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 Re-
serve’’ in the title of this section and inserting
‘‘Sale of Petroleum Products’’;
(B) in subsection (a), by striking ‘‘draw-
down and distribute’’ and inserting ‘‘drawdown
and sell petroleum products 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 un-
less the President has found drawdown and sale are re-
quired by a severe energy supply interruption or by obliga-
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tions 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 draw-
down 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 eval-
uation of the drawdown and sales procedures. In the con-
duct of an evaluation, 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 prod-
ucts under this subsection, the Secretary shall, to the
extent funds are available in the SPR Petroleum Ac-
count as a result of such sale, acquire petroleum prod-
ucts for the Reserve within the 12-month period be-
ginning 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 ‘‘dis-
tribute’’ and inserting ‘‘sell petroleum prod-
ucts from’’;
(ii) by deleting ‘‘and’’ at the end of
paragraph (1)(A) and by deleting ‘‘short-
age,’’ at the end of paragraph (1)(B) and
inserting ‘‘shortage; and
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‘‘(C) the Secretary of Defense has found that
action taken under this subsection will not im-
pair national security,’’;
(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 ‘‘dis-
tribution’’ each time it appears and insert-
ing ‘‘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 Re-
serve and the type and quantity of petroleum prod-
ucts in the Reserve;
‘‘(2) an estimate of the schedule and cost to com-
plete planned equipment upgrade or capital invest-
ment in the Reserve, including upgrades and invest-
ments carried out as part of operational maintenance
or extension of life activities;
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‘‘(3) an identification of any life-limiting condi-
tions or operational problems at any Reserve facility,
and proposed remedial actions including an estimate
of the schedule and cost of implementing those reme-
dial actions;
‘‘(4) a description of current withdrawal and
distribution rates and capabilities, and an identifica-
tion 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 fol-
lowing 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 fi-
nancial transactions of the Strategic Petroleum Re-
serve and Strategic Petroleum Reserve Petroleum Ac-
counts for the year;
‘‘(8) a summary of expenses for the year, and the
number of Federal and contractor employees;
‘‘(9) the status of contracts for development, op-
eration, maintenance, distribution, and other activi-
ties related to the implementation of this part;
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‘‘(10) a summary of foreign oil storage agree-
ments and their implementation status;
‘‘(11) any recommendations for supplemental
legislation or policy or operational changes the Sec-
retary considers necessary or appropriate to imple-
ment 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 owner-
ship of storage and related facilities proposed to
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be included, or the volume, type, and ownership
of petroleum products proposed to be stored, in
the Reserve, and an estimate of the proposed ben-
efits.’’;
(B) in subsection (b)(3), by striking ‘‘dis-
tribution of’’ and inserting ‘‘sale of petroleum
products from’’;
(21) in section 172 (42 U.S.C. 6249a), by strik-
ing subsections (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 CONSERVATION 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 nec-
essary.’’.
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(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 Con-
servation Act is amended—
(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
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(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 op-
erate in the Northeast a Northeast Home Heating Oil Re-
serve. A Reserve established under this part is not a compo-
nent 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 heat-
ing 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—
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‘‘(1) purchase, contract for, lease, or otherwise
acquire, in whole or in part, storage and related fa-
cilities, and storage services;
‘‘(2) use, lease, maintain, sell, or otherwise dis-
pose of storage and related facilities acquired under
this part;
‘‘(3) acquire by purchase, exchange (including
exchange of petroleum products from the Strategic Pe-
troleum 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 petro-
leum distillate from the Reserve established under this
part, including to maintain the quality or quantity
of the petroleum distillate in the Reserve or to main-
tain 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 Presi-
dent 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
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‘‘(2) a circumstance, other than that described in
paragraph (1), exists that constitutes a regional sup-
ply shortage of significant scope and duration and
that action taken under this section would assist di-
rectly and significantly in reducing the adverse im-
pact of such shortage.
‘‘(b) DEFINITION.—For purposes of this section a ‘dis-
location 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 five 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 informa-
tion 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 pub-
lished sources.
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‘‘(d) RELEASE OF PETROLEUM DISTILLATE.—After
consultation with the heating oil industry, the Secretary
shall determine procedures governing the release of petro-
leum distillate from the Reserve. The procedures shall pro-
vide that—
‘‘(1) the Secretary may—
‘‘(A) sell petroleum distillate from the Re-
serve 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 ex-
changed 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 enact-
ment of this section, the Secretary shall transmit to the
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President and, if the President approves, to the Congress
a plan describing—
‘‘(1) the acquisition of storage and related facili-
ties or storage services for the Reserve, including the
potential use of storage facilities not currently in use;
‘‘(2) the acquisition of petroleum distillate for
storage in the Reserve;
‘‘(3) the anticipated methods of disposition of pe-
troleum distillate from the Reserve;
‘‘(4) the estimated costs of establishment, mainte-
nance, and operation of the Reserve;
‘‘(5) efforts the Department will take to mini-
mize any potential need for future drawdowns and
ensure that distributors and importers are not dis-
couraged 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 En-
ergy 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 ‘Ac-
count’).
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‘‘(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 pe-
troleum distillate from the Reserve.
‘‘(c) The Secretary of Energy may obligate amounts
in the Account to carry out activities under this part with-
out the need for further appropriation, and amounts avail-
able to the Secretary of Energy for obligation under this
section shall remain available without fiscal year limita-
tion.
‘‘EXEMPTIONS
‘‘SEC. 185. An action taken under this part is not sub-
ject 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 con-
duct a study on—
(1) the use of energy futures and options con-
tracts to provide cost-effective protection from sudden
surges in the price of heating oil (including number
two fuel oil, propane, and kerosene) for State and
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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 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 fol-
lowing new section after section 168:
‘‘PURCHASE OF OIL FROM MARGINAL WELLS
‘‘SEC. 169. (a) IN GENERAL.—From amounts author-
ized 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
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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 In-
ternal 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 Pol-
icy Act (42 U.S.C. 8287(a)(2)(D)(iii) is amended by strik-
ing ‘‘$750,000’’ and inserting ‘‘$10,000,000’’.
TITLE V—ALASKA STATE JURIS-
DICTION 
OVER 
SMALL 
HY-
DROELECTRIC PROJECTS
SEC. 501. ALASKA STATE JURISDICTION OVER SMALL HY-
DROELECTRIC PROJECTS.
Part I of the Federal Power Act (16 U.S.C. 792 et seq.)
is amended by adding at the end the following:
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‘‘SEC. 32. ALASKA STATE JURISDICTION OVER SMALL HY-
DROELECTRIC PROJECTS.
‘‘(a) DISCONTINUANCE OF REGULATION BY THE COM-
MISSION.—Notwithstanding sections 4(e) and 23(b), the
Commission shall discontinue exercising licensing and reg-
ulatory authority under this part over qualifying project
works in the State of Alaska, effective on the date on which
the Commission certifies that the State of Alaska has in
place a regulatory program for water-power development
that—
‘‘(1) protects the public interest, the purposes
listed in paragraph (2), and the environment to the
same extent provided by licensing and regulation by
the Commission under this part and other applicable
Federal laws, including the Endangered Species Act
(16 U.S.C. 1531 et seq.) and the Fish and Wildlife
Coordination Act (16 U.S.C. 661 et seq.);
‘‘(2) gives equal consideration to the purposes
of—
‘‘(A) energy conservation;
‘‘(B) the protection, mitigation of damage
to, and enhancement of, fish and wildlife (in-
cluding related spawning grounds and habitat);
‘‘(C) the protection of recreational opportu-
nities;
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‘‘(D) the preservation of other aspects of en-
vironmental quality;
‘‘(E) the interests of Alaska Natives; and
‘‘(F) other beneficial public uses, including
irrigation, flood control, water supply, and navi-
gation; and
‘‘(3) requires, as a condition of a license for any
project works—
‘‘(A) the construction, maintenance, and op-
eration by a licensee at its own expense of such
lights and signals as may be directed by the Sec-
retary 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 facili-
ties which may be constructed as part of any
project to be controlled at all times by such rea-
sonable rules and regulations as may be made by
the Secretary of the Army; and
‘‘(C) conditions for the protection, mitiga-
tion, and enhancement of fish and wildlife based
on recommendations received pursuant to the
Fish and Wildlife Coordination Act (16 U.S.C.
661 et seq.) from the National Marine Fisheries
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Service, the United States Fish and Wildlife
Service, and State fish and wildlife agencies.
‘‘(b) 
DEFINITION
OF
‘QUALIFYING
PROJECT
WORKS’.—For purposes of this section, the term ‘qualifying
project works’ means project works—
‘‘(1) that are not part of a project licensed under
this part or exempted from licensing under this part
or section 405 of the Public Utility Regulatory Poli-
cies Act of 1978 prior to the date of enactment of this
section;
‘‘(2) for which a preliminary permit, a license
application, or an application for an exemption from
licensing has not been accepted for filing by the Com-
mission prior to the date of enactment of subsection
(c) (unless such application is withdrawn at the elec-
tion 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 bound-
aries of the State of Alaska; and
‘‘(5) that are not located in whole or in part on
any Indian reservation, a conservation system unit
(as defined in section 102(4) of the Alaska National
Interest 
Lands 
Conservation 
Act 
(16 
U.S.C.
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3102(4))), or segment of a river designated for study
for addition to the Wild and Scenic Rivers System.
‘‘(c) ELECTION OF STATE LICENSING.—In the case of
nonqualifying project works that would be a qualifying
project works but for the fact that the project has been li-
censed (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 re-
spect to projects located in whole or in part on a reserva-
tion, 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 juris-
diction over such lands; and
‘‘(2) such conditions as the Secretary may pre-
scribe.
‘‘(e) CONSULTATION WITH AFFECTED AGENCIES.—
The Commission shall consult with the Secretary of the In-
terior, the Secretary of Agriculture, and the Secretary of
Commerce before certifying the State of Alaska’s regulatory
program.
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‘‘(f) APPLICATION OF FEDERAL LAWS.—Nothing in
this section shall preempt the application of Federal envi-
ronmental, natural resources, or cultural resources protec-
tion 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.—Not-
withstanding 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 com-
plied 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 Com-
mission shall within 30 days commence a review of the
State of Alaska’s regulatory program for water-power devel-
opment to determine whether it complies with the require-
ments of subsection (a).
‘‘(2) The Commission’s review required by paragraph
(1) shall be completed within one year of initiation, and
the Commission shall within 30 days thereafter issue a final
order determining whether or not the State of Alaska’s regu-
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latory 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 regu-
latory program for water-power development shall be
deemed to be in compliance with subsection (a).’’.
TITLE 
VI—WEATHERIZATION,
SUMMER 
FILL, 
HYDRO-
ELECTRIC LICENSING PROCE-
DURES, 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 CON-
SERVATION (INCLUDING TRANSFER OF FUNDS)’’ in title II
of the Department of the Interior and Related Agencies Ap-
propriations Act, 2000 (113 Stat. 1535, 1501A–180), is
amended by striking ‘‘grants:’’ and all that follows and in-
serting ‘‘grants.’’.
(b) Section 415 of the Energy Conservation and Pro-
duction Act (42 U.S.C. 6865) is amended—
(1) in subsection (a)(1) by striking the first sen-
tence;
(2) in subsection (a)(2) by—
(A) striking ‘‘(A)’’;
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(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 subpara-
graph (C),
(D) striking the period and inserting ‘‘,
and’’ in subparagraph (D), and
(E) inserting after subparagraph (D) the
following new subparagraph:
‘‘(E) the cost of making heating and cooling
modifications, including replacement’’;
(4) in subsection (c)(3) by—
(A) striking ‘‘1991, the $1,600 per dwelling
unit limitation’’ and inserting ‘‘2000, the $2,500
per dwelling unit average’’,
(B) striking ‘‘limitation’’ and inserting
‘‘average’’ each time it appears, and
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(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 Con-
servation Act (42 U.S.C. 6211 et seq.) is amended by adding
at the end the following:
‘‘SEC. 273. SUMMER FILL AND FUEL BUDGETING PRO-
GRAMS.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) BUDGET CONTRACT.—The term ‘budget con-
tract’ means a contract between a retailer and a con-
sumer under which the heating expenses of the con-
sumer are spread evenly over a period of months.
‘‘(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 fluctuations.
‘‘(3) PRICE CAP CONTRACT.—The term ‘price cap
contract’ means a contract between a retailer and a
consumer under which the retailer charges the con-
sumer the market price for propane, kerosene, or heat-
ing oil, but the cost of the propane, kerosene, or heat-
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ing 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 assistance, and funding—
‘‘(1) to develop education and outreach programs
to encourage consumers to fill their storage facilities
for propane, kerosene, and heating oil during the
summer months; and
‘‘(2) to promote the use of budget contracts, price
cap contracts, fixed-price contracts, and other advan-
tageous 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 sum-
mer fill and fuel budgeting 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 thereafter.
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‘‘(e) INAPPLICABILITY OF EXPIRATION PROVISION.—
Section 281 does not apply to this section.’’.
(b) The table of contents in the first section of the En-
ergy 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
PROCEDURES.
The Federal Energy Regulatory Commission shall, in
consultation with other appropriate agencies, immediately
undertake a comprehensive 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
six months of the date of enactment of this section to the
Congress, including any recommendations for legislative
changes.
SEC. 604. SCIENTIFIC INVENTORY OF OIL AND GAS RE-
SERVES.
(a) IN GENERAL.—The Secretary of the Interior, in
consultation with the Secretaries of Agriculture and En-
ergy, shall conduct an inventory of all onshore Federal
lands. The inventory shall identify—
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(1) the United States Geological Survey reserve
estimates of the oil and gas resources underlying these
lands; and
(2) the extent and nature of any restrictions or
impediments to the development of such resources.
(b) REGULAR UPDATE.—Once completed, the USGS
reserve estimates and the surface availability data as pro-
vided in subsection (a)(2) shall be regularly updated and
made publically available.
(c) INVENTORY.—The inventory shall be provided to
the Committee on Resources of the House of Representatives
and to the Committee on Energy and Natural Resources
of the Senate within two years after the date of enactment
of this section.
(d) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as may be nec-
essary to implement this section.
SEC. 605. ANNUAL HOME HEATING READINESS REPORTS.
(a) IN GENERAL.—Part A of title I of the Energy Pol-
icy and Conservation Act (42 U.S.C. 6211 et seq.) is amend-
ed 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
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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 de-
creases in temperature.
‘‘(b) CONTENTS.—The Home Heating Readiness Re-
port shall include—
‘‘(1) estimates of the consumption, expenditures,
and average price per gallon of heating oil and pro-
pane and thousand cubic feet of natural gas for the
upcoming period of October through March for var-
ious weather conditions, with special attention to ex-
treme weather, and various regions of the country;
‘‘(2) an evaluation of—
‘‘(A) global and regional crude oil and re-
fined product supplies;
‘‘(B) the adequacy and utilization of refin-
ery capacity;
‘‘(C) the adequacy, utilization, and dis-
tribution of regional refined product storage ca-
pacity;
‘‘(D) weather conditions;
‘‘(E) the refined product transportation sys-
tem;
‘‘(F) market inefficiencies; and
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‘‘(G) any other factor affecting the func-
tional 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, transpor-
tation of heating oil or propane, or any other activity
related to the heating oil industry or propane indus-
try, can take to prevent or alleviate the impact of
sharp and sustained increases in the price of heating
oil and propane.
‘‘(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 re-
lating to section 106 the following:
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‘‘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 fol-
lowing:
‘‘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 Re-
search Alliance Act of 2000’’.
SEC. 702. FINDINGS.
Congress finds that—
(1) oilheat is an important commodity relied on
by approximately 30,000,000 Americans as an effi-
cient 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
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role in the economy of the United States, accounting
for approximately $12,900,000,000 in expenditures
annually and employing millions of Americans in all
aspects of the oilheat industry;
(4) only very limited Federal resources have been
made available for oilheat research, development, safe-
ty, training, and education efforts, to the detriment of
both the oilheat industry and its 30,000,000 con-
sumers; and
(5) the cooperative development, self-financing,
and implementation of a coordinated national oilheat
industry program of research and development, train-
ing, and consumer education is necessary and impor-
tant for the welfare of the oilheat industry, the gen-
eral economy of the United States, and the millions
of Americans that rely on oilheat for commercial 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.
(2) CONSUMER
EDUCATION.—The term ‘‘con-
sumer education’’ means the provision of information
to assist consumers and other persons in making eval-
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uations and decisions regarding oilheat and other
nonindustrial commercial or residential space or hot
water heating fuels.
(3) EXCHANGE.—The term ‘‘exchange’’ means an
agreement that—
(A) entitles each party or its customers to
receive oilheat from the other party; and
(B) requires only an insubstantial portion
of the volumes involved in the exchange to be set-
tled in cash or property other than the oilheat.
(4) INDUSTRY TRADE ASSOCIATION.—The term
‘‘industry trade association’’ means an organization
described in paragraph (3) or (6) of section 501(c) of
the Internal Revenue Code of 1986 that is exempt
from taxation under section 501(a) of that Code and
is organized for the purpose of representing the
oilheat industry.
(5) NO. 1 DISTILLATE.—The term ‘‘No. 1 dis-
tillate’’ means fuel oil classified as No. 1 distillate by
the American Society for Testing and Materials.
(6) NO. 2 DYED DISTILLATE.—The term ‘‘No. 2
dyed distillate’’ means fuel oil classified as No. 2 dis-
tillate by the American Society for Testing and Mate-
rials that is indelibly dyed in accordance with regula-
tions prescribed by the Secretary of the Treasury
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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 indus-
try’’ means—
(i) persons in the production, transpor-
tation, or sale of oilheat; and
(ii) persons engaged in the manufac-
ture or distribution of oilheat utilization
equipment.
(B) EXCLUSION.—The term ‘‘oilheat indus-
try’’ does not include ultimate consumers of
oilheat.
(9) PUBLIC MEMBER.—The term ‘‘public mem-
ber’’ means a member of the Alliance described in sec-
tion 705(c)(1)(F).
(10) QUALIFIED INDUSTRY ORGANIZATION.—The
term ‘‘qualified industry organization’’ means the
National Association for Oilheat Research and Edu-
cation or a successor organization.
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(11) QUALIFIED STATE ASSOCIATION.—The term
‘‘qualified State association’’ means the industry
trade association or other organization that the quali-
fied industry organization or the Alliance determines
best represents retail marketers in a State.
(12) RETAIL MARKETER.—The term ‘‘retail mar-
keter’’ means a person engaged primarily in the sale
of oilheat to ultimate consumers.
(13) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
(14) 
WHOLESALE
DISTRIBUTOR.—The 
term
‘‘wholesale distributor’’ means a person that—
(A)(i) produces No. 1 distillate or No. 2
dyed distillate;
(ii) imports No. 1 distillate or No. 2 dyed
distillate; or
(iii) transports No. 1 distillate or No. 2
dyed distillate across State boundaries or among
local marketing areas; and
(B) sells the distillate to another person that
does not produce, import, or transport No. 1 dis-
tillate or No. 2 dyed distillate across State
boundaries or among local marketing areas.
(15) STATE.—The term ‘‘State’’ means the sev-
eral States, except the State of Alaska.
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SEC. 704. REFERENDA.
(a) CREATION OF PROGRAM.—
(1) IN GENERAL.—The oilheat industry, through
the qualified industry organization, may conduct, at
its own expense, a referendum among retail marketers
and wholesale distributors for the establishment of a
national oilheat research alliance.
(2) REIMBURSEMENT OF COST.—The Alliance, if
established, shall reimburse the qualified industry or-
ganization for the cost of accounting and documenta-
tion for the referendum.
(3) CONDUCT.—A referendum under paragraph
(1) shall be conducted by an independent auditing
firm.
(4) VOTING RIGHTS.—
(A) RETAIL MARKETERS.—Voting rights of
retail marketers in a referendum under para-
graph (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 wholesale distributors in a referendum
under paragraph (1) shall be based on the vol-
ume of No. 1 distillate and No. 2 dyed distillate
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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 rep-
resentative period, weighted by the ratio of the
total volume of No. 1 distillate and No. 2 dyed
distillate sold for nonindustrial commercial and
residential space and hot water heating in the
State to the total volume of No. 1 distillate and
No. 2 dyed distillate sold in that State.
(5) ESTABLISHMENT
BY
APPROVAL
OF
TWO-
THIRDS.—
(A) IN GENERAL.—Subject to subparagraph
(B), on approval of persons representing two-
thirds of the total volume of oilheat voted in the
retail marketer class and two-thirds of the total
weighted volume of No. 1 distillate and No. 2
dyed distillate voted in the wholesale distributor
class, the Alliance shall be established and shall
be authorized to levy assessments under section
707.
(B) REQUIREMENT OF MAJORITY OF RETAIL
MARKETERS.—Except as provided in subsection
(b), the oilheat industry in a State shall not par-
ticipate in the Alliance if less than 50 percent of
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the retail marketer vote in the State approves es-
tablishment of the Alliance.
(6) CERTIFICATION OF VOLUMES.—Each person
voting in the referendum shall certify to the inde-
pendent auditing firm the volume of oilheat, No. 1
distillate, or No. 2 dyed distillate represented by the
vote of the person.
(7) NOTIFICATION.—Not later than 90 days after
the date of enactment of this title, a qualified State
association may notify the qualified industry organi-
zation 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 con-
ducting a referendum under subsection (a).
(c) TERMINATION OR SUSPENSION.—
(1) IN GENERAL.—On the initiative of the Alli-
ance 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 Alli-
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ance, to determine whether the oilheat industry favors
termination or suspension of the Alliance.
(2) VOLUME PERCENTAGES REQUIRED TO TERMI-
NATE OR SUSPEND.—Termination or suspension shall
not take effect unless termination or suspension is ap-
proved 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 terminate participation by notifying the Alli-
ance that 50 percent of the oilheat volume in the
State has voted in a referendum to withdraw.
(d) CALCULATION OF OILHEAT SALES.—For the pur-
poses 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 Admin-
istration with respect to a calendar year or other represent-
ative period.
SEC. 705. MEMBERSHIP.
(a) SELECTION.—
(1) IN GENERAL.—Except as provided in sub-
section (c)(1)(C), the qualified industry organization
shall select members of the Alliance representing the
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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 re-
tail marketers;
(2) wholesale distributors of No. 1 distillate and
No. 2 dyed distillate;
(3) large and small companies among wholesale
distributors and retail marketers; and
(4) diverse geographic regions of the country.
(c) NUMBER OF MEMBERS.—
(1) IN GENERAL.—The membership of the Alli-
ance shall be as follows:
(A) One member representing each State
with oilheat sales in excess of 32,000,000 gallons
per year.
(B) If fewer than 24 States are represented
under subparagraph (A), 1 member representing
each of the States with the highest volume of an-
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nual oilheat sales, as necessary to cause the total
number of States represented under subpara-
graph (A) and this subparagraph to equal 24.
(C) 5 representatives of retail marketers, 1
each to be selected by the qualified State associa-
tions of the 5 States with the highest volume of
annual oilheat sales.
(D) 5 additional representatives of retail
marketers.
(E) 21 representatives of wholesale distribu-
tors.
(F) 6 public members, who shall be rep-
resentatives of significant users of oilheat, the
oilheat research community, State energy offi-
cials, or other groups knowledgeable about
oilheat.
(2) FULL-TIME OWNERS OR EMPLOYEES.—Other
than the public members, Alliance members shall be
full-time owners or employees of members of the
oilheat industry, except that members described in
subparagraphs (C), (D), and (E) of paragraph (1)
may be employees of the qualified industry organiza-
tion or an industry trade association.
(d) COMPENSATION.—Alliance members shall receive
no compensation for their service, nor shall Alliance mem-
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bers be reimbursed for expenses relating to their service, ex-
cept that public members, on request, may be reimbursed
for reasonable expenses directly related to participation in
meetings of the Alliance.
(e) TERMS.—
(1) IN GENERAL.—Subject to paragraph (4), a
member of the Alliance shall serve a term of 3 years,
except that a member filling an unexpired term may
serve a total of 7 consecutive years.
(2) TERM LIMIT.—A member may serve not more
than 2 full consecutive terms.
(3) FORMER MEMBERS.—A former member of the
Alliance may be returned to the Alliance if the mem-
ber has not been a member for a period of 2 years.
(4) INITIAL
APPOINTMENTS.—Initial appoint-
ments to the Alliance shall be for terms of 1, 2, and
3 years, as determined by the qualified industry orga-
nization, staggered to provide for the subsequent selec-
tion of one-third of the members each year.
SEC. 706. FUNCTIONS.
(a) IN GENERAL.—
(1) PROGRAMS, 
PROJECTS; 
CONTRACTS
AND
OTHER AGREEMENTS.—The Alliance—
(A) shall develop programs and projects and
enter into contracts or other agreements with
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other persons and entities for implementing this
title, including programs—
(i) to enhance consumer and employee
safety and training;
(ii) to provide for research, develop-
ment, and demonstration of clean and effi-
cient oilheat utilization equipment; and
(iii) for consumer education; and
(B) may provide for the payment of the
costs of carrying out subparagraph (A) with as-
sessments collected under section 707.
(2) COORDINATION.—The Alliance shall coordi-
nate its activities with industry trade associations
and other persons as appropriate to provide efficient
delivery of services and to avoid unnecessary duplica-
tion of activities.
(3) ACTIVITIES.—
(A) EXCLUSIONS.—Activities under clause
(i) or (ii) of paragraph (1)(A) shall not include
advertising, promotions, or consumer surveys in
support of advertising or promotions.
(B) RESEARCH, DEVELOPMENT, AND DEM-
ONSTRATION ACTIVITIES.—
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(i) IN
GENERAL.—Research, develop-
ment, and demonstration activities under
paragraph (1)(A)(ii) shall include—
(I) all activities incidental to re-
search, development, and demonstra-
tion of clean and efficient oilheat utili-
zation equipment; and
(II) the obtaining of patents, in-
cluding payment of attorney’s fees for
making and perfecting a patent appli-
cation.
(ii) EXCLUDED ACTIVITIES.—Research,
development, and demonstration activities
under paragraph (1)(A)(ii) shall not in-
clude research, development, and demonstra-
tion 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 im-
provements have been verified.
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(b) PRIORITIES.—In the development of programs and
projects, the Alliance shall give priority to issues relating
to—
(1) research, development, and demonstration;
(2) safety;
(3) consumer education; and
(4) training.
(c) ADMINISTRATION.—
(1) 
OFFICERS; 
COMMITTEES; 
BYLAWS.—The
Alliance—
(A) shall select from among its members a
chairperson and other officers as necessary;
(B) may establish and authorize committees
and subcommittees of the Alliance to take specific
actions that the Alliance is authorized to take;
and
(C) shall adopt bylaws for the conduct of
business and the implementation of this title.
(2) SOLICITATION OF OILHEAT INDUSTRY COM-
MENT AND RECOMMENDATIONS.—The Alliance shall
establish procedures for the solicitation of oilheat in-
dustry comment and recommendations on any signifi-
cant contracts and other agreements, programs, and
projects to be funded by the Alliance.
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(3) ADVISORY COMMITTEES.—The Alliance may
establish advisory committees consisting of persons
other than Alliance members.
(4) VOTING.—Each member of the Alliance shall
have 1 vote in matters before the Alliance.
(d) ADMINISTRATIVE EXPENSES.—
(1) IN GENERAL.—The administrative expenses
of operating the Alliance (not including costs incurred
in the collection of assessments under section 707)
plus amounts paid under paragraph (2) shall not ex-
ceed 7 percent of the amount of assessments collected
in any calendar year, except that during the first
year of operation of the Alliance such expenses and
amounts shall not exceed 10 percent of the amount of
assessments.
(2) REIMBURSEMENT OF THE SECRETARY.—
(A) IN GENERAL.—The Alliance shall annu-
ally reimburse the Secretary for costs incurred
by the Federal Government relating to the Alli-
ance.
(B) 
LIMITATION.—Reimbursement 
under
subparagraph (A) for any calendar year shall
not exceed the amount that the Secretary deter-
mines is twice the average annual salary of 1
employee of the Department of Energy.
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(e) BUDGET.—
(1) PUBLICATION OF PROPOSED BUDGET.—Be-
fore August 1 of each year, the Alliance shall publish
for public review and comment a proposed budget for
the next calendar year, including the probable costs of
all programs, projects, and contracts and other agree-
ments.
(2) SUBMISSION TO THE SECRETARY AND CON-
GRESS.—After review and comment under paragraph
(1), the Alliance shall submit the proposed budget to
the Secretary and Congress.
(3) RECOMMENDATIONS BY THE SECRETARY.—
The Secretary may recommend for inclusion in the
budget programs and activities that the Secretary
considers appropriate.
(4) IMPLEMENTATION.—The Alliance shall not
implement a proposed budget until the expiration of
60 days after submitting the proposed budget to the
Secretary.
(f) RECORDS; AUDITS.—
(1) RECORDS.—The Alliance shall—
(A) keep records that clearly reflect all of
the acts and transactions of the Alliance; and
(B) make the records available to the public.
(2) AUDITS.—
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(A) IN GENERAL.—The records of the Alli-
ance (including fee assessment reports and appli-
cations 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 members of the Alliance, and
the qualified industry organization, and, on re-
quest, to other members of the oilheat industry.
(C) POLICIES AND PROCEDURES.—
(i) IN GENERAL.—The Alliance shall
establish policies and procedures for audit-
ing compliance with this title.
(ii) CONFORMITY
WITH
GAAP.—The
policies and procedures established under
clause (i) shall conform with generally ac-
cepted 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 Al-
liance.
(2) MEETINGS
OPEN
TO
THE
PUBLIC.—Each
meeting of the Alliance shall be open to the public.
HR 2884 EAS
(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 under-
taken 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 assess-
ment shall be collected at the point of sale of No. 1
distillate and No. 2 dyed distillate by a wholesale dis-
tributor to a person other than a wholesale dis-
tributor, including a sale made pursuant to an ex-
change.
(2) RESPONSIBILITY FOR PAYMENT.—A wholesale
distributor—
HR 2884 EAS
(A) shall be responsible for payment of an
assessment to the Alliance on a quarterly basis;
and
(B) shall provide to the Alliance certifi-
cation of the volume of fuel sold.
(3) NO OWNERSHIP INTEREST.—A person that
has no ownership interest in No. 1 distillate or No.
2 dyed distillate shall not be responsible for payment
of an assessment under this section.
(4) FAILURE TO RECEIVE PAYMENT.—
(A) REFUND.—A wholesale distributor that
does not receive payments from a purchaser for
No. 1 distillate or No. 2 dyed distillate within 1
year of the date of sale may apply for a refund
from the Alliance of the assessment paid.
(B) AMOUNT.—The amount of a refund
shall not exceed the amount of the assessment lev-
ied 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 im-
ported 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