[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1514 Reported in House (RH)]
Union Calendar No. 340
104th CONGRESS
2d Session
H. R. 1514
[Report No. 104-655, Part 1]
_______________________________________________________________________
A BILL
To authorize and facilitate a program to enhance safety, training,
research and development, and safety education in the propane gas
industry for the benefit of propane consumers and the public, and for
other purposes.
_______________________________________________________________________
July 10, 1996
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. 340
104th CONGRESS
2d Session
H. R. 1514
[Report No. 104-655, Part 1]
To authorize and facilitate a program to enhance safety, training,
research and development, and safety education in the propane gas
industry for the benefit of propane consumers and the public, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 7, 1995
Mr. Tauzin (for himself, Mr. Hall of Texas, Mr. Cramer, Mr. Roemer, Mr.
Blute, Mr. Gillmor, Mr. Stump, Mr. Emerson, Mr. Hancock, Mr. Gejdenson,
Mr. Minge, Mr. Callahan, Mr. Gene Green of Texas, Mr. Baesler, Mr.
Collins of Georgia, Mr. Bishop, Mr. Everett, Mr. Bevill, Mr. Taylor of
North Carolina, Mr. Bachus, Mr. Klug, Mr. Hilliard, Mr. Parker, Mr.
Jefferson, Mr. Lewis of Kentucky, Mr. Paxon, Mr. Bonilla, Mr. McIntosh,
Mr. Traficant, Mr. Oxley, Mr. Talent, Mr. Browder, and Mr. Jacobs)
introduced the following bill; which was referred to the Committee on
Commerce, and in addition to the Committee on Science, for a period to
be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
June 27, 1996
Reported from the Committee on Commerce with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
Referral to the Committee on Science extended for a period ending not
later than July 26, 1996
July 10, 1996
Additional sponsors: Mr. Hamilton, Mr. Montgomery, Mrs. Fowler, Mrs.
Meek of Florida, Ms. Kaptur, Mr. Duncan, Mr. Bryant of Tennessee, Mr.
Myers of Indiana, Mr. Foley, Mr. Gilman, Mr. Cunningham, Mr. Hoekstra,
Mr. Rogers, Mrs. Lincoln, Mr. Solomon, Ms. Danner, Mr. Hefner, Mr.
Johnson of South Dakota, Mr. Bryant of Texas, Mr. Burr, Mr. Largent,
Mr. Gordon, Mr. Lipinski, Mr. Martinez, Mr. Sensenbrenner, Mr.
Richardson, Mr. Quillen, Mr. Payne of Virginia, Mr. Wolf, Mr.
Funderburk, Mr. Skelton, Mr. Sisisky, Mr. Oberstar, Mr. Tanner, Mr.
Volkmer, Mr. Rose, Ms. Lofgren, Mr. Spence, Mr. McCrery, Mr. Bartlett
of Maryland, Ms. Pryce, Mr. Spratt, Mr. Stenholm, Mr. Bunning of
Kentucky, Mr. Peterson of Minnesota, Mr. Hobson, Mr. Smith of New
Jersey, Mr. Stearns, Mr. McCollum, Mr. Crapo, Mrs. Meyers of Kansas,
Mr. Frelinghuysen, Mr. Bentsen, Mr. Fields of Texas, Mrs. Myrick, Mr.
Pomeroy, Mr. Chambliss, Mr. Lucas, Mr. Pickett, Mr. Petri, Mr.
Whitfield, Mr. Ward, Mr. Stupak, Mr. Franks of Connecticut, Mr. Scott,
Mr. LaHood, Mr. Lazio of New York, Mr. Manzullo, Mr. Pastor, Mr. Leach,
Mr. Burton of Indiana, Mr. Wicker, Mr. Hall of Ohio, Mr. Barcia, Ms.
Eddie Bernice Johnson of Texas, Mr. Brewster, Mr. Klink, Mr. Hinchey,
Mr. Moorhead, Mr. Taylor of Mississippi, Ms. Furse, Mr. Linder, Mr.
Franks of New Jersey, Mr. Greenwood, Mr. Deutsch, Mrs. Vucanovich, Mr.
Gephardt, Mr. Skeen, Mr. Boehlert, Mr. Hastert, Mr. Hutchinson, Mr.
Thornberry, Mr. Hayworth, Mrs. Kelly, Mr. Graham, Mr. Wamp, Mr. Dooley
of California, Mr. LoBiondo, Mr. Dickey, Mr. Abercrombie, Mr. Norwood,
Mr. Johnston of Florida, Mr. Kildee, Ms. McCarthy, Mr. Martini, Mr.
Zeliff, Mrs. Lowey, Mr. Wilson, Mr. Andrews, Mr. Baker of Louisiana,
Mr. Goodlatte, Mr. Clay, Ms. McKinney, Mr. Weldon of Pennsylvania, Mr.
Kingston, Mr. Barr of Georgia, Mr. Watt of North Carolina, Mr. Watts of
Oklahoma, Mr. Lightfoot, Mr. Fazio of California, Mr. Young of Alaska,
Mr. Hayes, Mr. Pallone, Mr. Jones, Mr. Calvert, Mr. Tejeda, Mr. McHugh,
Mr. Weller, Mr. Boehner, Mr. Clement, Mr. Olver, Mr. Deal of Georgia,
Mr. Evans, Mr. Coble, Mr. Durbin, Mr. Packard, Mr. Pete Geren of Texas,
Ms. Woolsey, Mr. Laughlin, Mr. Fawell, Mr. Murtha, Mr. Chrysler, Mr.
Heineman, Mrs. Seastrand, Mr. Towns, Ms. DeLauro, Mr. Schiff, Mr. Farr
of California, Mr. Ehlers, Mr. Ballenger, Mr. Rahall, Mr. Saxton, Mr.
Hastings of Florida, Mr. Bilbray, Mr. Inglis of South Carolina, Mr.
Clyburn, Mrs. Clayton, Mrs. Cubin, Mr. Bass, Mr. Brown of Ohio, Mr.
Thornton, Mr. Castle, Mr. Studds, Ms. Molinari, Mr. Stockman, Mr.
Hastings of Washington, Mr. Gutknecht, Mr. Goodling, Mr. Gekas, Mrs.
Morella, Mr. Frazer, Mr. Edwards, Mr. Brownback, Mr. Latham, Mr. Walsh,
Mr. Tiahrt, Mr. Bilirakis, Mr. Davis, Mr. Salmon, Mr. Poshard, Mr.
Roberts, Mr. Bateman, Mr. Costello, Mr. Smith of Texas, Mr. McDade, Mr.
Porter, Mr. Barrett of Nebraska, Mr. Lewis of Georgia, Mr. Torres, Mr.
Allard, Mr. Frost, Mr. Camp, Mr. Shays, Mr. Gunderson, Mr. Hoyer, Mr.
Cooley of Oregon, Mr. Luther, and Mr. Matsui
July 10, 1996
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 April
7, 1995]
_______________________________________________________________________
A BILL
To authorize and facilitate a program to enhance safety, training,
research and development, and safety 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 1996''.
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 a 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 propane at the
time it is recovered at a gas processing plant or refinery;
(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, and includes liquefied petroleum
gases and mixtures thereof;
(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 at least 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 qualified industry organizations may
conduct, at their own expense, a referendum among producers and retail
marketers for the creation of a Propane Education and Research Council.
The Council, if established, shall reimburse the qualified industry
organizations for the cost of the referendum accounting and
documentation. Such referendum shall be conducted by an independent
auditing firm agreed to by the qualified industry organizations. Voting
rights in such referendum shall be based on the volume of propane
produced or odorized propane sold 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 Council shall be established, and shall be
authorized to levy an assessment on odorized propane in accordance with
section 6. All persons voting in the referendum shall certify to the
independent auditing firm the volume of propane represented by their
vote.
(b) Termination.--On the Council's own initiative, or on petition
to the Council by producers and retail marketers representing 35
percent of the volume of propane in each class, the Council shall, at
its own expense, hold a referendum, to be conducted by an independent
auditing firm selected by the Council, to determine whether the
industry favors termination or suspension of the Council. 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, or is approved by persons
representing more than two-thirds of the total volume of propane in
either such class.
SEC. 5. PROPANE EDUCATION AND RESEARCH COUNCIL.
(a) Selection of Members.--The qualified industry organizations
shall select all retail marketer, public, and producer members of the
Council. The producer organizations shall select the producer members
of the Council, the retail marketer organizations shall select retail
marketer members, and all qualified industry organizations shall
jointly select the public members. Vacancies in unfinished terms of
Council members shall be filled in the same manner as were the original
appointments.
(b) Representation.--In selecting members of the Council, the
qualified industry organizations 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, including agricultural cooperatives; 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 or representatives of agricultural cooperatives. 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 consecutive terms. Members filling unexpired
terms may serve not more than a total of 7 consecutive 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 selection 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 and employee safety and training, to
provide for research and development of clean and efficient propane
utilization equipment, to inform and educate the public about safety
and other issues associated with the use of 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) Use of Funds.--Not less than 5 percent of the funds collected
through assessments pursuant to this Act shall be used for programs and
projects intended to benefit the agriculture industry in the United
States. The Council shall coordinate its activities in this regard with
agriculture industry trade associations and other organizations
representing the agriculture industry. The percentage of funds
collected through assessments pursuant to this Act to be used for
projects relating to the use of propane as an over-the-road motor fuel
shall not exceed the percentage of the total market for odorized
propane that is used as a motor vehicle fuel, based on the historical
average of such use over the previous 3-year period.
(h) Priorities.--Issues related to research and development,
safety, education, and training shall be given priority by the Council
in the development of its programs and projects.
(i) 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.
(j) Administrative Expenses.--(1) The administrative expenses of
operating the Council (not including costs incurred in the collection
of the assessment pursuant to section 7) plus amounts paid under
paragraph (2) shall not exceed 10 percent of the funds collected in any
fiscal year.
(2) The Council shall annually reimburse the Secretary for costs
incurred by the Federal Government relating to the Council, except that
such reimbursement for any fiscal year shall not exceed the amount that
the Secretary determines is the average annual salary of two employees
of the Department of Energy.
(k) Budget.--Before August 1 each year, the Council shall publish
for public 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 and to the Congress. The Secretary may
recommend programs and activities the Secretary considers appropriate.
(l) Records; Audits.--The Council shall keep minutes, books, and
records that clearly reflect all of the acts and transactions of the
Council and make public such information. 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 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.
(m) Public Access To Council Proceedings.--(1) All meetings of the
Council shall be open to the public after at least 30 days advance
public notice.
(2) The minutes of all meetings of the Council shall be made
available to and readily accessible by the public.
(n) Annual Report.--Each year the Council shall prepare and make
publicly available a report which includes an identification and
description of all programs and projects undertaken by the Council
during the previous year as well as those planned for the coming year.
Such report shall also detail the allocation or planned allocation of
Council resources for each such program and project.
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. In no case may the
assessment 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 make the
assessment based on the volume of odorized propane sold and placed into
commerce. Assessments collected are payable to the Council on a monthly
basis by the 25th of the month following the month of such collection.
Propane exported from the United States to another country is not
subject to the assessment.
(c) Alternative Collection Rules.--The Council may establish an
alternative means of collecting the assessment if another means is
found to be more efficient and effective. The Council may establish a
late payment charge and rate of interest to be imposed on any person
who fails to remit 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.--The Council shall establish a program
coordinating the operation of the Council with those of any State
propane education and research council created by State law or
regulation, or similar entity. Such coordination shall include a joint
or coordinated assessment collection process, a reduced assessment, or
an assessment rebate. A reduced assessment or rebate shall be 20
percent of the regular assessment collected in that State under this
section. Assessment rebates shall be paid only to--
(1) a State propane education and research council created
by State law or regulation that meets requirements established
by the Council for specific programs approved by the Council;
or
(2) a similar entity, such as a foundation established by
the retail propane gas industry in that State, that meets
requirements established by the Council for specific programs
approved by the Council.
SEC. 7. COMPLIANCE.
The Council may bring suit in Federal court to compel compliance
with an assessment levied by the Council under this Act. A successful
action for compliance under this section may also require payment by
the defendant of the costs incurred by the Council in bringing such
action.
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. MARKET SURVEY AND CONSUMER PROTECTION.
(a) Price Analysis.--Beginning 2 years after establishment of the
Council and annually thereafter, the Secretary of Commerce, using only
data provided by the Energy Information Administration and other public
sources, shall prepare and make available to the Council, the Secretary
of Energy, and the public an analysis of changes in the price of
propane relative to other energy sources. The propane price analysis
shall compare indexed changes in the price of consumer grade propane to
a composite of indexed changes in the price of residential electricity,
residential natural gas, and refiner price to end users of No. 2 fuel
oil on an annual national average basis. For purposes of indexing
changes in consumer grade propane, residential electricity, residential
natural gas, and end user No. 2 fuel oil prices, the Secretary of
Commerce shall use a 5-year rolling average price beginning with the
year 4 years prior to the establishment of the Council.
(b) Authority To Restrict Activities.--If in any year the 5-year
average rolling price index of consumer grade propane exceeds the 5-
year rolling average price composite index of residential electricity,
residential natural gas, and refiner price to end users of No. 2 fuel
oil in an amount greater than 10.1 percent, the activities of the
Council shall be restricted to research and development, training, and
safety matters. The Council shall inform the Secretary of Energy and
the Congress of any restriction of activities under this subsection.
Upon expiration of 180 days after the beginning of any such restriction
of activities, the Secretary of Commerce shall again conduct the
propane price analysis described in subsection (a). Activities of the
Council shall continue to be restricted under this subsection until the
price index excess is 10.1 percent or less.
SEC. 10. PRICING.
In all cases, the price of propane shall be determined by market
forces. Consistent with the antitrust laws, the Council may take no
action, nor may any provision of this Act be interpreted as
establishing an agreement to pass along to consumers the cost of the
assessment provided for in section 6.
SEC. 11. RELATION TO OTHER PROGRAMS.
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. 12. REPORTS.
Within 2 years after the date of enactment of this Act, and at
least once every 2 years thereafter, the Secretary of Commerce shall
prepare and submit to the Congress and the Secretary a report examining
whether operation of the Council, in conjunction with the cumulative
effects of market changes and Federal programs, has had an effect on
propane consumers, including residential, agriculture, process, and
nonfuel users of propane. The Secretary of Commerce shall consider and,
to the extent practicable, shall include in the report submissions by
propane consumers, and shall consider whether there have been long-term
and short-term effects on propane prices as a result of Council
activities and Federal programs, and whether there have been changes in
the proportion of propane demand attributable to various market
segments. To the extent that the report demonstrates that there has
been an adverse effect, the Secretary of Commerce shall include
recommendations for correcting the situation. Upon petition by affected
parties or upon request by the Secretary of Energy, the Secretary of
Commerce may prepare and submit the report required by this section at
less than 2-year intervals.