article: 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.''
summary: 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.