[Congressional Record Volume 141, Number 65 (Friday, April 7, 1995)]
[Extensions of Remarks]
[Pages E857-E858]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


            INDUSTRY-FUNDED CHECKOFF PROGRAM FOR PROPANE GAS

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                        HON. W.J. (BILLY) TAUZIN

                              of louisiana

                    in the house of representatives

                          Friday, April 7, 1995
  Mr. TAUZIN. Mr. Speaker, today I am introducing legislation that 
would allow the propane industry to establish an industry-funded 
checkoff program for propane gas, an environmentally sound and 
economical energy source relied on each year by some 60 million 
Americans.
  Last Congress, I introduced similar legislation; H.R. 3546, that was 
cosponsored by 124 members and formally acted upon the Energy and Power 
Subcommittee of the Commerce. Final action on the measure could not be 
completed before the 103d Congress adjourned.
  The legislation I am introducing today has been modified to address 
issues raised during consideration of the bill last Congress. These 
changes have made the bill better and as I introduced the measure 
today, I am not aware of any likely opposition.
  Propane is one of this Nation's most versatile energy sources, 
supplying 3 to 4 percent of our total need for energy. Since it is 
distributed in liquefied form by trucks, not carried in pipelines, 
propane is the fuel of choice in residential areas outside of the 
natural gas distribution system. Propane is also used by farmers to dry 
crops, power tractors, or warm greenhouses, by millions of recreational 
vehicle owners and camping enthusiasts, and by the construction and 
other industries as a source of heat and power.
  [[Page E858]] In a checkoff program, a small fraction of the 
wholesale price of a product is set aside and forwarded to a specially 
created checkoff board. The propane board, which would be known as the 
Propane Education and Research Council, would use those pooled funds 
for a variety of activities that would benefit the propane consumer, 
the propane industry, and the public. The Propane Education and 
Research Council would undertake specific activities including: First, 
research and development of more efficient, cleaner burning appliances; 
second, research and training in safety for both the industry and the 
public; third, education in regulatory compliance and cooperative 
activities with States; and fourth, cooperative activities with State 
associations and builder outreach efforts. All of these activities will 
provide substantial benefits to propane consumers and the public.
  There are currently more than 150 Federal and State checkoff 
programs. They operate primarily in agricultural industries, which 
benefit from checkoffs for beef, eggs, cotton, milk, and soybeans.
  There are some similar programs in energy industries, however, such 
as the Gas Research Institute, the Electric Power Research Institute, 
the Texas Railroad Commission propane checkoff and similar State 
programs in Louisiana, Missouri, and Alabama. Oil producers in Oklahoma 
have recently created the Oklahoma Energy Resource Board.
  The Gas Research Institute [GRI], for example, boasts a 400-percent 
return for each dollar collected and invested. While GRI's work 
primarily benefits urban and suburban natural gas consumers, the 
propane checkoff would benefit rural and agricultural users of propane, 
as well as urban and suburban propane consumers.
  The agricultural industry, for example, which accounts for 7 to 8 
percent of all propane consumed in the United States, will see 
substantial benefits from the propane checkoff. Much of the large 
industrial and agricultural equipment now in use is not as efficient as 
residential and commercial equipment. The propane checkoff will permit 
research and development into better, more efficient equipment for the 
industry. With even marginal increases in equipment efficiency, the 
agriculture industry would reap great returns. Obviously, better and 
more efficient utilization of propane would benefit other industries, 
such as construction, in still other ways, further increasing the value 
of the return.
  A checkoff program is particularly needed for propane because, unlike 
all other major forms of energy and many minor energy sources, propane 
receives virtually no Federal support for research, development, 
education, or other activities. Rather than turn to the Federal 
Government for support in a period of deficit spending and tight 
funding restrictions, the propane industry has developed this self-help 
proposal to help ensure that propane is most effectively and 
efficiently utilized. While this program is paid for by the propane 
industry, propane consumers and the public will be primary 
beneficiaries.
  This legislation only provides the propane industry with the 
opportunity to establish this program. The legislation I am proposing 
would not actually establish the propane checkoff. Instead, it calls 
upon the propane industry, propane producers, and retail marketers, to 
hold a referendum among themselves to authorize establishment of the 
checkoff before it can go into effect. If the experience with the 
program is not as positive as the industry projects and experience with 
checkoff programs suggests, it could be terminated by a majority vote 
of both classes, or a two-thirds vote by a single one. It is the 
propane industry's own request that we would help provide it with this 
coordinated opportunity to voluntarily pool its resources.
  This bill is an important self-help measure for the propane industry 
based on a proven legislative precedent from other industries. 
Moreover, as a self-help measure, rather than a request for direct 
Government funding, this measure may well become a model for future 
legislation in many fields. I encourage my colleagues to join me in 
cosponsoring this legislation.


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