text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Windfall Oil Profits For Heating 
  Assistance Act of 2000''.
  
  SEC. 2. FINDINGS AND PURPOSE.
  
      (a) Findings.--Congress finds the following:
              (1) The overall net income for the 14 major petroleum 
          companies more than doubled in the second quarter of 2000 
          relative to the second quarter of 1999, to $10,300,000,000.
              (2) In the second quarter of 2000, BP Amoco reported 
          profits of $2,870,000,000, Chevron Corporation reported profits 
          of $1,140,000,000, Conoco reported profits of $460,000,000, 
          Exxon Mobil Corporation reported profits of $4,530,000,000, 
          Marathon Oil Company reported profits of $367,000,000, Phillips 
          Petroleum Company reported profits of $439,000,000, Royal 
          Dutch/Shell Group reported profits of $3,150,000,000, and 
          Texaco, Inc. reported profits of $641,000,000.
              (3) When compared to the second quarter of 1999, the 
          profits in the second quarter of 2000 increased 133 percent for 
          BP Amoco, 136 percent for Chevron, 205 percent for Conoco, 123 
          percent for Exxon Mobil, 208 percent for Marathon, 275 percent 
          for Phillips, 96 percent for Shell, and 124 percent for Texaco.
              (4) The profits in the second quarter of 2000 for BP Amoco, 
          Chevron, Conoco, Exxon Mobil, and Shell were record quarterly 
          profits for these oil companies.
              (5) In the first quarter of 2000, ARCO reported profits of 
          $333,000,000, BP Amoco reported profits of $2,680,000,000, 
          Chevron reported profits of $1,100,000,000, Conoco reported 
          profits of $391,000,000, Exxon Mobil reported profits of 
          $3,350,000,000, Phillips reported profits of $250,000,000, 
          Shell reported profits of $3,130,000,000, and Texaco reported 
          profits of $602,000,000.
              (6) When compared to the first quarter of 1999, the profits 
          in the first quarter of 2000 increased 136 percent for ARCO, 
          296 percent for BP Amoco, 291 percent for Chevron, 371 percent 
          for Conoco, 108 percent for Exxon Mobil, 257 percent for 
          Phillips, 117 percent for Shell, and 473 percent for Texaco.
              (7) The profits in the first quarter of 2000 for BP Amoco, 
          Conoco, Exxon Mobil, and Shell were record quarterly profits.
              (8) On June 19, 2000, gasoline prices hit all-time highs 
          across the United States, with a national average of $1.68 per 
          gallon, according to the Energy Information Administration.
              (9) On September 22, 2000, the Department of Energy 
          estimated that heating oil inventories nationwide are 36 
          percent lower than in 1999, in the East such inventories are 40 
          percent lower than in 1999, and in New England such inventories 
          are 65 percent lower than in 1999.
              (10) American consumers continue to pay sky-high gasoline 
          prices and home heating oil prices are expected to hit an all-
          time high in the winter of 2000-2001 while the oil industry 
          continues to reap record profits.
      (b) Purpose.--The purpose of this Act is to transfer windfall 
  profits from the oil industry to fund heating assistance for consumers 
  and small business owners.
  
  SEC. 3. WINDFALL PROFITS ADJUSTMENT.
  
      (a) In General.--Subtitle E of the Internal Revenue Code of 1986 
  (relating to alcohol, tobacco, and certain other excise taxes) is 
  amended by adding at the end the following new chapter:
  
      ``CHAPTER 55--WINDFALL PROFITS ON CRUDE OIL AND PRODUCTS THEREOF
  
                                ``Sec. 5886. Imposition of tax.
  
  ``SEC. 5886. IMPOSITION OF TAX.
  
      ``(a) In General.--An excise tax is hereby imposed on the windfall 
  profit from any domestic crude oil or other taxable product removed 
  from the premises during the taxable year at a rate equal to 100 
  percent of such windfall profit.
      ``(b) Definitions.--For purposes of this section--
              ``(1) Premises.--The term `premises' has the same meaning 
          as when used for purposes of determining gross income from 
          property under section 613.
              ``(2) Producer.--The term `producer' means the holder of 
          the economic interest with respect to the crude oil or taxable 
          product.
              ``(3) Reasonable profit.--The term `reasonable profit' 
          means the amount determined by the Chairman of the Federal 
          Trade Commission to be a reasonable profit on the crude oil or 
          taxable product.
              ``(4) Taxable product.--The term `taxable product' means 
          any fuel which is a product of crude oil.
              ``(5) Windfall profit.--The term `windfall profit' means, 
          with respect to any removal of crude oil or taxable product, so 
          much of the profit on such removal as exceeds a reasonable 
          profit.
      ``(c) Liability for Payment of Tax.--The tax imposed by subsection 
  (a) shall be paid by the producer of the crude oil or taxable product.
      ``(d) Regulations.--The Secretary shall prescribe such regulations 
  as may be necessary or appropriate to carry out the purposes of this 
  section.''.
      (b) Clerical Amendment.--The table of chapters for subtitle E of 
  such Code is amended by adding at the end the following new item:
  
                                ``Chapter 55. Windfall profits on crude 
                                          oil and products thereof.''
      (c) Effective Date.--The amendments made by this section shall 
  apply to crude oil or other products removed from the premises on or 
  after January 1, 2000.
  
  SEC. 4. FEDERAL TRADE COMMISSION INVESTIGATION AND DETERMINATION OF 
                REASONABLE PROFITS.
  
      (a) Investigation of Oil Industry Profits.--The Chairman of the 
  Federal Trade Commission shall investigate the profits of the oil 
  industry, including the 14 major petroleum companies, on the sale in 
  the United States of any crude oil or other taxable product (as defined 
  in section 5886(b) of the Internal Revenue Code of 1986) made after 
  January 1, 1999.
      (b) Determination of Reasonable Oil Industry Profits.--The Federal 
  Trade Commission shall make reasonable profit determinations for 
  purposes of applying section 5886 of the Internal Revenue Code of 1986 
  (relating to windfall profit on crude oil and products thereof).
      (c) Funding.--There are authorized to be appropriated to the 
  Federal Trade Commission such funds as are necessary to carry out this 
  section.
  
  SEC. 5. ALLOCATION OF REVENUES FROM WINDFALL OIL PROFITS ADJUSTMENT TO 
                HEATING ASSISTANCE.
  
      (a) Establishment of Trust Fund.--Subchapter A of chapter 98 of 
  subtitle I of the Internal Revenue Code of 1986 (relating to 
  establishment of trust funds) is amended by adding at the end the 
  following new section:
  
  ``SEC. 9511. WINDFALL OIL PROFITS TRUST FUND.
  
      ``(a) Creation of Trust Fund.--There is established in the Treasury 
  of the United States a trust fund to be known as the `Windfall Oil 
  Profits Trust Fund', consisting of such amounts as may be appropriated 
  or credited to the Windfall Oil Profits Trust Fund as provided in this 
  section.
      ``(b) Transfers to Windfall Oil Profits Trust Fund.--There are 
  hereby appropriated to the Windfall Oil Profits Trust Fund amounts 
  equivalent to the taxes received in the Treasury under section 5886.
      ``(c) Expenditures From Windfall Oil Profits Trust Fund.--Amounts 
  in the Windfall Oil Profits Trust Fund shall be available, as provided 
  by appropriations Acts, for making expenditures--
              ``(1) in an amount not to exceed 75 percent of amounts 
          transferred under subsection (b), for heating assistance for 
          consumers, and
              ``(2) in an amount not to exceed 25 percent of amounts 
          transferred under subsection (b), for heating assistance for 
          small businesses.''.
      (b) Clerical Amendment.--The table of sections for subchapter A of 
  chapter 98 of subtitle I of the Internal Revenue Code of 1986 is 
  amended by adding at the end the following new item:
  
          ``Sec. 9511. Windfall oil profits trust fund.''
target: Directs the Federal Trade Commission to investigate the profits of the oil industry and make reasonable profit determinations. Authorizes appropriations.
  Establishes the Windfall Oil Profits Trust Fund consisting amounts equivalent to the taxes received pursuant to the excise tax established by this Act. Provides for expenditures from the Fund for heating assistance to consumers and small businesses.
feat_title: Windfall Oil Profits for Heating Assistance Act of 2000