| Home > 106th Congressional Bills > S. 348 (rs) 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...
S. 348 (rs) 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...
106th CONGRESS 2d Session S. 348 _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES January 27, 2000 Referred to the Committee on Commerce _______________________________________________________________________ AN ACT 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, TITLE I--NATIONAL OIL HEAT RESEARCH ALLIANCE ACT OF 1999 SEC. 101. SHORT TITLE. This title may be cited as the ``National Oilheat Research Alliance Act of 1999''. SEC. 102. FINDINGS. Congress finds that-- (1) oilheat is an important commodity relied on by approximately 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 millions 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 program 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 commercial and residential space and hot water heating. SEC. 103. DEFINITIONS. In this title: (1) Alliance.--The term ``Alliance'' means a national oilheat research alliance established under section 104. (2) Consumer education.--The term ``consumer education'' means the provision of information to 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) 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 settled 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 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 distillate'' 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 distribution 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 105(c)(1)(F). (10) Qualified industry organization.--The term ``qualified 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 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 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. 104. 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 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 marketers 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 representative period. (B) Wholesale distributors.--Voting rights of wholesale 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 authorized to levy assessments under section 107. (B) Requirement of majority of retail marketers.-- 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 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 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 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 oilheat industry favors termination or suspension of the Alliance. (2) Volume percentages required to terminate or suspend.-- Termination or suspension shall not take effect unless termination or suspension is approved by-- (A) 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 (B) persons representing more than two-thirds of the total volume of fuel voted in either such class. (d) Calculation of Oilheat Sales.--For the purposes of this section and section 105, 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 calendar year or other representative period. SEC. 105. 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 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 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), 1 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 subparagraph (A) and this subparagraph to equal 24. (C) 5 representatives of retail marketers, 1 each to be selected by the qualified State associations of the 5 States with the highest volume of annual oilheat sales. (D) 5 additional representatives of retail marketers. (E) 21 representatives of wholesale distributors. (F) 6 public members, who shall be representatives of significant users of oilheat, the oilheat research community, 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 paragraph (1) may be employees of the qualified industry organization or an industry trade association. (d) Compensation.--Alliance members shall receive no compensation 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 2 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. 106. FUNCTIONS. (a) In General.-- (1) Programs, projects; contracts and other agreements.-- The Alliance--
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