[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3546 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3546

To provide for the establishment of a program for safety, development, 
 and education in the propane gas industry for the benefit of propane 
           consumers and the public, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 19, 1993

    Mr. Tauzin (for himself, Mr. Oxley, Mrs. Fowler, Mr. English of 
Oklahoma, Mr. Jefferson, Mr. Smith of New Jersey, Mr. Upton, Mr. Jacob, 
Mr. Barcia of Michigan, Mr. Bachus of Alabama, Mr. Bevill, Mr. Gilman, 
Mr. Stump, Mr. Dickey, Mr. Hancock, Mr. McCrery, Mr. Inhoff, Mr. Payne 
 of Virginia, Mr. Emerson, Mr. Skelton, Mr. Lancaster, Mr. Bryant, and 
 Mr. Bishop) introduced the following bill; which was referred jointly 
   to the Committees on Energy and Commerce and Science, Space, and 
                               Technology

_______________________________________________________________________

                                 A BILL


 
To provide for the establishment of a program for safety, development, 
 and education in the propane gas industry for the benefit of propane 
           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 ``Propane Education and Research Act 
of 1993''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) propane gas, or liquefied petroleum gas, is an 
        essential energy commodity providing heat, hot water, cooking 
        fuel, and motor fuel among its many uses to millions of 
        Americans;
            (2) the use of propane is especially important to rural 
        citizens and farmers, offering an efficient and economical 
        source of gas energy;
            (3) propane has been recognized as a clean fuel and can 
        contribute in many ways to reducing the pollution in our cities 
        and towns; and
            (4) propane is primarily domestically produced and its use 
        provides energy security and jobs for Americans.

SEC. 3. DEFINITIONS.

    For the purposes of this Act--
            (1) the term ``Council'' means the Propane Education and 
        Research Council created pursuant to section 4 of this Act;
            (2) the term ``industry'' means those persons involved in 
        the production, transportation, and sale of propane, and in the 
        manufacture and distribution of propane utilization equipment, 
        in the United States;
            (3) 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 the propane 
        industry;
            (4) the term ``odorized propane'' means propane which has 
        had odorant added to it;
            (5) the term ``producer'' means the owner of the propane at 
        the time it is recovered at a manufacturing facility;
            (6) the term ``propane'' means a hydrocarbon whose chemical 
        composition is predominantly C<SUP>3H<SUP>8, whether recovered 
        from natural gas or crude oil;
            (7) the term ``public member'' means a member of the 
        Council, other than a representative of producers or retail 
        marketers, representing significant users of propane, public 
        safety officials, academia, the propane research community, or 
        other groups knowledgeable about propane;
            (8) the term ``qualified industry organization'' means the 
        National Propane Gas Association, the Gas Processors 
        Association, a successor association of such associations, or a 
        group of retail marketers or producers who collectively 
        represent 25 percent of the volume of propane sold or produced 
        in the United States;
            (9) the term ``retail marketer'' means a person engaged 
        primarily in the sale of odorized propane to the ultimate 
        consumer or to retail propane dispensers;
            (10) the term ``retail propane dispenser'' means a person 
        who sells odorized propane to the ultimate consumer but is not 
        engaged primarily in the business of such sales; and
            (11) the term ``Secretary'' means the Secretary of Energy.

SEC. 4. REFERENDA.

    (a) Creation of Program.--The Secretary shall conduct a referendum 
as soon as possible among producers and retail marketers to authorize 
the creation of the Propane Education and Research Council and the 
levying of an assessment on odorized propane. Voting rights in such 
referendum shall be based on the volume of propane sold or produced in 
the previous calendar year or other representative period. Upon 
approval of those persons representing two-thirds of the total volume 
of propane voted in the retail marketer class and two-thirds of all 
propane voted in the producer class, the Secretary shall issue an order 
establishing the Council. All persons voting in the referendum shall 
certify to the Secretary the volume of propane represented by their 
vote.
    (b) Termination.--On the Secretary's own initiative, or on petition 
of the Council or of producers and retail marketers representing 35 
percent of the volume of propane in each class, the Secretary shall 
hold a referendum to determine whether the industry favors termination 
or suspension of the order issued under subsection (a). Termination or 
suspension shall not take effect unless it is approved by persons 
representing more than one-half of the total volume of odorized propane 
in the retail marketer class and more than one-half of the total volume 
of propane in the producer class.

SEC. 5. PROPANE EDUCATION AND RESEARCH COUNCIL.

    (a) Appointment of Members.--Upon issuance of an order by the 
Secretary under section 4(a) establishing the Propane Education and 
Research Council, the Secretary shall select all retail marketer and 
producer members of the Council from a list of nominees submitted by 
qualified industry organizations. Nominees need not be members of a 
qualified industry organization. The public members of the Council 
shall be appointed by the Secretary. Vacancies in unfinished terms of 
Council members shall be filled in the same manner as were the original 
appointments.
    (b) Representation.--In making nominations and appointments to the 
Council, the qualified industry organizations and the Secretary shall 
give due regard to selecting a Council that is representative of the 
industry, including representation of--
            (1) gas processors and oil refiners among producers;
            (2) interstate and intrastate operators among retail 
        marketers;
            (3) large and small companies among producers and retail 
        marketers; and
            (4) diverse geographic regions of the country.
    (c) Membership.--The Council shall consist of 21 members, with 9 
members representing retail marketers, 9 members representing 
producers, and 3 public members. Other than the public members, Council 
members shall be full-time employees or owners of businesses in the 
industry. No employee of a qualified industry organization or other 
industry trade association shall serve as a member of the Council, and 
no member of the Council may serve concurrently as an officer of the 
Board of Directors of a qualified industry organization or other 
industry trade association. Only one person at a time from any company 
or its affiliate may serve on the Council.
    (d) Compensation.--Council members shall receive no compensation 
for their services, nor shall Council members be reimbursed for 
expenses relating to their service, except that public members, upon 
request, may be reimbursed for reasonable expenses directly related to 
their participation in Council meetings.
    (e) Terms.--Council members shall serve terms of 3 years and may 
serve not more than 2 full terms. Members filling unexpired terms may 
serve not more than a total of 7 years. Former members of the Council 
may be returned to the Council if they have not been members for a 
period of 2 years. Initial appointments to the Council shall be for 
terms of 1, 2, and 3 years, staggered to provide for the election of 7 
members each year.
    (f) Functions.--The Council shall develop programs and projects and 
enter into contracts or agreements for implementing this Act, including 
programs to enhance consumer safety, to provide for research and 
development of clean and efficient propane utilization equipment, to 
inform and educate the public, to develop and preserve markets for 
propane, and to provide for the payment of the costs thereof with funds 
collected pursuant to this Act. The Council shall coordinate its 
activities with industry trade association and others as appropriate to 
provide efficient delivery of services and to avoid unnecessary 
duplication of activities.
    (g) Administration.--The Council shall select from among its 
members a Chairman and other officers as necessary, may establish 
committees and subcommittees of the Council, and shall adopt rules and 
bylaws for the conduct of business and the implementation of this Act. 
The Council shall establish procedures for the solicitation of industry 
comment and recommendations on any significant plans, programs, and 
projects to be funded by the Council. The Council may establish 
advisory committees of persons other than Council members.
    (h) Employees; Administrative Expenses.--The Council may employ a 
person to serve as Chief Executive Officer and such other employees as 
it considers necessary. The Council shall determine the compensation 
and duties of each employee, and shall protect the handling of Council 
funds through fidelity bonds. The administrative expenses of operating 
the Council shall not exceed 10 percent of the funds collected in any 
fiscal year.
    (i) Budget.--Before August 1 each year, the Council shall publish 
for industry review and comment a budget plan for the next calendar 
year, including the probable costs of all programs, projects, and 
contracts and a recommended rate of assessment sufficient to cover such 
costs. Following this review and comment, the Council shall submit the 
proposed budget to the Secretary. The Secretary shall recommend any 
changes the Secretary considers appropriate to the budget after an 
opportunity for public comment.
    (j) Records; Audits.--The Council shall keep minutes, books, and 
records that clearly reflect all of the acts and transactions of the 
Council and regularly report such information to the Secretary, along 
with such other information as the Secretary may require. The books of 
the Council shall be audited by a certified public accountant at least 
once each fiscal year and at such other times as the Council may 
designate. Copies of such audit shall be provided to the Secretary, all 
members of the Council, all qualified industry organizations, and to 
other members of the industry upon request. The Secretary shall receive 
notice of meetings and may require reports on the activities of the 
Council, as well as reports on compliance, violations, and complaints 
regarding the implementation of this Act.
    (k) Reimbursement of Federal Expenses.--From assessments collected, 
the Council shall annually reimburse the Secretary for costs incurred 
in holding the referendum establishing the Council, making appointments 
to the Council, and other expenses directly related to the Council, not 
in excess of the cost of three employee years, as determined by the 
Secretary.

SEC. 6. ASSESSMENTS.

    (a) Amount.--The Council shall set the initial assessment at no 
greater than one tenth of 1 cent per gallon of odorized propane. 
Thereafter, annual assessments shall be sufficient to cover the costs 
of the plans and programs developed by the Council. The assessment 
shall not be greater than one-half cent per gallon of odorized propane, 
unless approved by a majority of those voting in a referendum in both 
the producer and the retail marketer class. The assessment may not be 
raised by more than one tenth of 1 cent per gallon of odorized propane 
annually.
    (b) Ownership.--The owner of odorized propane at the time of 
odorization, or the time of import of odorized propane, shall pay the 
assessment based on the volume of odorized propane sold and placed into 
commerce. Assessments are payable to the Council on a monthly basis by 
the 25th of the month following the month of such sale. Propane 
exported from the United States to another country is not subject to 
the assessment.
    (c) Alternative Collection Rules.--The Secretary may by regulation, 
with the concurrence of the Council, establish an alternative means of 
collecting the assessment if another means is found to be more 
efficient and effective. The Secretary may by regulation establish a 
late payment charge and rate of interest to be imposed on any person 
who fails to remit, collect, or pay to the Council any amount due under 
this Act.
    (d) Investment of Funds.--Pending disbursement pursuant to a 
program, plan, or project, the Council may invest funds collected 
through assessments, and any other funds received by the Council, only 
in obligations of the United States or any agency thereof, in general 
obligations of any State or any political subdivision thereof, in any 
interest-bearing account or certificate of deposit of a bank that is a 
member of the Federal Reserve System, or in obligations fully 
guaranteed as to principal and interest by the United States.
    (e) State Programs.--After consultation with the Council, the 
Secretary may by regulation establish a program coordinating the 
operation of the Council with those of any State propane education and 
research council or similar entity created by State law. This may 
include a joint or coordinated assessment collection process, a reduced 
assessment, or an assessment rebate. If adopted, the reduction in 
assessment or rebate may be in an amount not to exceed 20 percent of 
the regular assessment collected in that State under this section. 
Assessment rebates shall be paid only to a State propane education and 
research council or similar entity that meets the requirements 
established by the Council, and only for specific projects approved by 
the Council.

SEC. 7. ENFORCEMENT.

    (a) Cease and Desist Orders; Civil Penalties.--The Secretary, after 
providing notice and an opportunity for hearing, may, with respect to 
any person who violates any provision of this Act or any plan, 
regulation, or order issued under this Act--
            (1) issue an order requiring that person to cease and 
        desist from continuing such violation; and
            (2) assess a civil penalty not to exceed $5,000 for each 
        such violation.
Each day during which a violation continues shall be considered a 
separate violation.
    (b) Investigatory Powers.--In order to carry out this Act, the 
Secretary may administer oaths and affirmations, subpoena witnesses, 
compel their attendance, take evidence, and require the production of 
any books, papers, and documents which are relevant to the inquiry. 
Such attendance of witnesses and the production of any such records may 
be required from any place in the United States. The district courts of 
the United States may punish a failure to comply with a subpoena issued 
under this subsection as a contempt of the court.

SEC. 8. LOBBYING RESTRICTIONS.

    No funds collected by the Council shall be used in any manner for 
influencing legislation or elections, except that the Council may 
recommend to the Secretary changes in this Act or other statutes that 
would further the purposes of this Act.

SEC. 9. ADMINISTRATIVE PROVISIONS.

    Nothing in this Act may be construed to preempt or supersede any 
other program relating to propane education and research organized and 
operated under the laws of the United States or any State.

SEC. 10. ISSUANCE OF REGULATIONS.

    Within 9 months after the date of enactment of this Act, the 
Secretary shall issue regulations for the implementation of this Act. 
The Secretary may require such reports or documentation as is necessary 
to document the referendum process and the nomination process for 
members of the Council and shall protect the confidentiality of all 
such documentation provided by industry members.

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