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                                                 Union Calendar No. 447

105th CONGRESS

  2d Session

                               H. R. 3610

                      [Report No. 105-787, Part I]

_______________________________________________________________________

                                 A BILL

To authorize and facilitate a program to enhance training, research and 
development, energy conservation and efficiency, and consumer education 
 in the oilheat industry for the benefit of oilheat consumers and the 
                    public, and for other purposes.

_______________________________________________________________________

                            October 7, 1998

  Committee on Science discharged; committed to the Committee of the 
    Whole House on the State of the Union and ordered to be printed





                                                 Union Calendar No. 447
105th CONGRESS
  2d Session
                                H. R. 3610

                      [Report No. 105-787, Part I]

To authorize and facilitate a program to enhance training, research and 
development, energy conservation and efficiency, and consumer education 
 in the oilheat industry for the benefit of oilheat consumers and the 
                    public, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 31, 1998

   Mr. Greenwood (for himself, Mr. Manton, Mr. Paxon, Mr. Engel, Mr. 
Oxley, Mr. Norwood, Mr. Shimkus, Mr. Stupak, Mr. Boehlert, Mr. Solomon, 
   Mr. King, Mrs. McCarthy of New York, Mr. Holden, Mr. McDade, Mr. 
  Andrews, Mrs. Roukema, Mr. Gekas, Mrs. Kennelly of Connecticut, Mr. 
   McHale, Mr. Frelinghuysen, Mr. Ehrlich, Mr. Pappas, Mr. Weldon of 
    Pennsylvania, Mr. Ackerman, Mr. Cardin, Mr. Hoyer, Mr. Neal of 
      Massachusetts, Mr. Olver, Mr. Goode, Mr. Roemer, Mr. Fox of 
   Pennsylvania, Mr. Meeks of New York, Mr. Bass, and Mr. Baldacci) 
 introduced the following bill; which was referred to the Committee on 
                                Commerce

                            October 6, 1998

Reported with an amendment and referred to the Committee on Science for 
 a period ending not later than October 7, 1998, for consideration of 
     such provisions of the bill and amendment as fall within the 
     jurisdiction of that committee pursuant to clause 1(n), rule X
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                            October 7, 1998

Additional sponsors: Mr. Forbes, Ms. Furse, Mr. Weygand, Mr. English of 
     Pennsylvania, Mrs. Morella, Mr. Kennedy of Massachusetts, Mr. 
 Gilchrest, Mr. Davis of Virginia, Mr. McGovern, Mr. Ney, Mr. McNulty, 
Mr. Kennedy of Rhode Island, Mr. Peterson of Pennsylvania, Mr. Coburn, 
 Ms. DeLauro, Mr. Pickett, Mr. Saxton, Mr. Burr of North Carolina, Mr. 
    Menendez, Mr. Hefner, Mr. Hobson, Mr. Tierney, Mr. Metcalf, Mr. 
   Delahunt, Mr. Traficant, Mr. Sawyer, Mrs. Myrick, Mr. Klink, Mr. 
 Gejdenson, Mr. Manzullo, Mr. Etheridge, Mr. Franks of New Jersey, Mr. 
Pitts, Mr. Wolf, Mr. Bunning, Mr. Maloney of Connecticut, Mr. Boucher, 
 Mr. Whitfield, Mr. Shays, Mr. Wynn, Mr. Goodling, Mr. Kanjorski, Ms. 
     Pryce of Ohio, Mr. LaTourette, Mr. Pallone, Mr. Portman, Mr. 
 Nethercutt, Mrs. Johnson of Connecticut, Mr. Sisisky, Mr. Meehan, Mr. 
 Rangel, Mr. Klug, Mr. Ballenger, Mr. Doyle, Mr. Schumer, Ms. Carson, 
   Mr. Camp, Mr. Lazio of New York, Mr. Rothman, Mr. Goodlatte, Mr. 
 Hulshof, Mr. Gibbons, Mr. Upton, Mr. Allen, Mr. Payne, Mr. Pascrell, 
Mr. Smith of New Jersey, Mr. Price of North Carolina, Mr. Cummings, Mr. 
 Baesler, Mr. Jones, Mr. Kind, Mr. Ehlers, Mr. Lewis of Kentucky, Mr. 
  Johnson of Wisconsin, Mr. Hinchey, Mr. Talent, Mr. Strickland, Mrs. 
Clayton, Mr. Rogers, Mr. Shuster, Mr. Mica, Ms. Stabenow, Mr. Brown of 
Ohio, Ms. Hooley of Oregon, Mr. Scott, Mr. Gordon, Mr. Deal of Georgia, 
 Mr. Bartlett of Maryland, Mr. Hastert, Mr. Deutsch, Mr. McIntyre, Mr. 
   Bateman, Mr. Gilman, Mr. Ensign, Mr. Hall of Ohio, and Mrs. Lowey

                            October 7, 1998

  Committee on Science discharged; committed to the Committee of the 
    Whole House on the State of the Union and ordered to be printed
 [For text of introduced bill, see copy of bill as introduced on March 
                               31, 1998]

_______________________________________________________________________

                                 A BILL


 
To authorize and facilitate a program to enhance training, research and 
development, energy conservation and efficiency, and consumer education 
 in the oilheat industry for the benefit of oilheat consumers and the 
                    public, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Oilheat Research Alliance 
Act of 1998''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) oilheat is an important commodity relied upon by 
        approximately 30,000,000 Americans annually 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 millions 
        of Americans in all aspects of the 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 
        program of research and development, training, and consumer 
        education is necessary and important for the welfare of the 
        oilheat industry, including wholesale distributors and retail 
        marketers, as well as for the general economy of the United 
        States and the millions of Americans who rely on oilheat for 
        commercial and residential space and hot water heating.

SEC. 3. DEFINITIONS.

    For the purposes of this Act--
            (1) the term ``Alliance'' means a National Oilheat Research 
        Alliance created pursuant to section 4 of this Act;
            (2) the term ``consumer education'' means the provision of 
        information that will assist consumers and other persons in 
        making evaluations and decisions regarding oilheat and other 
        nonindustrial commercial or residential space or hot water 
        heating fuels;
            (3) the term ``exchange'' means an agreement that entitles 
        each party or its customers to receive product from the other 
        party and requires only an insubstantial portion of the volumes 
        involved in the exchange to be settled in cash or property 
        other than the product;
            (4) the term ``industry'' means those persons involved in 
        the production, transportation, and sale of oilheat, and in the 
        manufacture and distribution of oilheat utilization equipment, 
        in the United States, but such term does not include the 
        ultimate consumers of oilheat;
            (5) the term ``industry trade association'' means an 
        organization exempt from tax, under section 501(c) (3) or (6) 
        of the Internal Revenue Code of 1986, representing participants 
        in the industry;
            (6) the term ``No. 1 distillate'' means fuel oil classified 
        as No. 1 distillate by the American Society for Testing and 
        Materials;
            (7) the term ``No. 2 dyed distillate'' means fuel oil 
        classified as No. 2 distillate by the American Society for 
        Testing and Materials which is indelibly dyed in accordance 
        with regulations prescribed by the Secretary of the Treasury 
        pursuant to section 4082(a)(2) of the Internal Revenue Code of 
        1986;
            (8) the term ``oilheat'' means--
                    (A) No. 1 distillate; or
                    (B) No. 2 dyed distillate,
        which is used as a fuel for nonindustrial commercial or 
        residential space or hot water heating;
            (9) the term ``public member'' means a member of the 
        Alliance described in section 5(c)(6);
            (10) the term ``qualified industry organization'' means the 
        National Association for Oilheat Research and Education or a 
        successor organization;
            (11) the term ``qualified State association'' means the 
        industry trade association or other organization that the 
        qualified industry organization, or, after its establishment 
        under this Act, the Alliance, determines best represents retail 
        marketers in a State;
            (12) the term ``retail marketer'' means a person engaged 
        primarily in the sale of oilheat to the ultimate consumer;
            (13) the term ``Secretary'' means the Secretary of Energy; 
        and
            (14) the term ``wholesale distributor'' means a person 
        who--
                    (A) produces;
                    (B) imports; or
                    (C) transports across State boundaries and among 
                local marketing areas, and
        No. 1 distillate or No. 2 dyed distillate, and sells such 
        distillate to another person who does not produce, import, or 
        transport distillates as described in this paragraph.

SEC. 4. REFERENDA.

    (a) Creation of Program.--The industry, through the qualified 
industry organization, may conduct, at its own expense, a referendum 
among retail marketers and wholesale distributors for the creation of a 
National Oilheat Research Alliance. The Alliance, if established, shall 
reimburse the qualified industry organization for the cost of 
referendum accounting and documentation. Such referendum shall be 
conducted by an independent auditing firm. Voting rights of a retail 
marketer in such referendum shall be based on the volume of oilheat 
sold in a State by the retail marketer in the previous calendar year or 
other representative period. Voting rights of a wholesale distributor 
in such referendum shall be based on the volume of No. 1 distillate and 
No. 2 dyed distillate sold in a State by the wholesale distributor in 
the previous calendar year or other 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 that State to the total volume of No. 1 distillate 
and No. 2 dyed distillate sold in that State. Upon approval of those 
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 in accordance with section 6. All 
persons voting in the referendum shall certify to the independent 
auditing firm the volume of oilheat, No. 1 distillate, or No. 2 dyed 
distillate represented by their vote. Except as provided in subsection 
(b), a State shall not participate in the Alliance if less than 50 
percent of the retail marketer vote in that State, subject to the 
volumetric voting rules established by this subsection, is in favor of 
the creation of the Alliance. A qualified State association may notify 
the qualified industry organization within 90 days after the date of 
the enactment of this Act in writing that a referendum under this 
subsection will not be conducted in that State.
    (b) Subsequent State Participation.--A State that has not 
participated initially in the Alliance may subsequently elect to 
participate by conducting a referendum in accordance with subsection 
(a).
    (c) Termination or Suspension.--On the Alliance's own initiative, 
or on petition to the Alliance by retail marketers and wholesale 
distributors representing 35 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 industry favors termination or suspension of the Alliance. 
Termination or suspension shall not take effect unless it is approved 
by persons representing more than one-half of the total volume of 
oilheat voted in the retail marketer class and more than one-half of 
the total volume of weighted No. 1 distillate and No. 2 dyed distillate 
voted in the wholesale distributor class, or is approved by persons 
representing more than two-thirds of the total volume of fuel voted in 
either such class.

SEC. 5. NATIONAL OILHEAT RESEARCH ALLIANCE.

    (a) Selection of Members.--Except as otherwise provided in 
subsection (c)(3), the qualified industry organization shall select all 
members of the Alliance. The qualified industry organization shall 
select a member representing a State from a list of nominees submitted 
by that State's qualified State association. Vacancies in unfinished 
terms of Alliance members shall be filled in the same manner as were 
the original appointments.
    (b) Representation.--In selecting members of the Alliance, the 
qualified industry organization shall give due regard to selecting a 
Alliance that is representative of the industry, including 
representation of--
            (1) interstate and intrastate operators among retail 
        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) Membership.--The membership of the Alliance shall be as 
follows:
            (1) One member representing each State with oilheat sales 
        in excess of 32,000,000 gallons per year.
            (2) If less than 24 States are represented under paragraph 
        (1), one member representing each of the States with the 
        highest volume of annual oilheat sales as necessary to cause 
        the total number of States represented under paragraph (1) and 
        this paragraph combined to equal 24.
            (3) 5 representatives of retail marketers, one each to be 
        selected by the qualified State associations of the 5 States 

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