[Congressional Record Volume 142, Number 137 (Saturday, September 28, 1996)]
[Senate]
[Pages S11666-S11667]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               PROPANE EDUCATION AND RESEARCH ACT OF 1996

  The bill (H.R. 1514) 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, was considered, ordered to be a third 
reading, read the third time, and passed.
  Mr. BUMPERS. Mr. President, Senator Thompson and I would like to 
enter into a brief colloquy with the sponsor of this bill, Senator 
Domenici. Some concerns were raised in the last Congress, with respect 
to a similar bill, that such legislation might adversely affect users 
of propane by interfering with propane markets or artificially 
stimulating the demand for propane. Does the bill before us address 
these concerns?
  Mr. DOMENICI. I thank my colleague from Arkansas for his question. He 
is correct that such concerns were raised, but the bill before the 
Senate today addresses these concerns. This bill includes changes that 
make clear that the Propane Research and Education Council [PERC], 
which is created by this bill, is not a marketing and promotion agency, 
but rather a research and educational one. It also caps the level of 
funding that can be committed to motor fuel uses of propane, which is

[[Page S11667]]

arguably the application that might have the greatest impact on propane 
usage in this country. These changes were agreed to by parties 
representing propane producers and propane consumers.
  Mr. THOMPSON. Does this bill allow funds to be used for any marketing 
and promotional activities.
  Mr. DOMENICI. The bill stipulates that the PERC may engage in 
education of consumers regarding propane. In fact, a specific provision 
of the bill, section 5(h), requires the PERC to give priority to 
research and development, safety, education, and training in the 
development of programs and projects.
  Mr. BUMPERS. How will the PERC distinguish between education and 
market promotion? What might be some examples, of activities that are 
intended to be permitted under this bill, and activities that are not?
  Mr. DOMENICI. Activities not intended under this bill would include 
efforts by the PERC, or efforts supported by PERC-provided funding but 
carried out by other organizations, that solicit individuals to switch 
from other fuels to propane, or that subsidize such fuel switching. 
Such activities would certainly not qualify as education under any 
definition. Another example of an activity not contemplated by this 
bill would be a general media campaign of 30-second television 
commercials to the effect that propane is a good fuel choice. This 
would not be considered education, since the amount of substantive 
information likely to be contained in such a commercial would not 
qualify it as a legitimate educational tool. However, builder/architect 
outreach efforts that disseminate information about propane home 
heating devices, so that consumers likely to consider propane heating 
could make informed choices, would be permitted under this bill. 
Similarly, efforts to educate propane consumers about new advances in 
technology, such as the development of a propane heat pump or the 
development of new flaming technologies for weed control in 
agriculture, would be permitted. While these types of activities could 
be considered marketing or promotion, they education consumers by 
making them aware of more efficient and therefore less costly 
appliances and practices, and thus are beneficial to consumers. 
Similarly, efforts to disseminate safety-related educational materials 
which will benefit consumers, are also contemplated, even though it 
might be argued that such materials are promotional. During our hearing 
on this bill earlier this year the Propane Consumers Coalition readily 
acknowledged that these types of activities were contemplated under 
this bill and I believe this strikes an appropriate balance.

  Mr. THOMPSON. Are there other consumer protection provisions included 
in the bill.
  Mr. DOMENICI. Yes. The bill provides that if, in any year, the 5-year 
rolling prices index of propane exceeds by a specified level the 5-year 
rolling average price of a composite index of other home heating fuels, 
the activities of the PERC will be restricted to research and 
development, training, and safety programs. In addition, the bill 
requires certain studies and reports to ensure that the bill is having 
no adverse effect on consumers. Finally, three seats on the PERC are 
reserved for members representing the public. I firmly believe, and the 
Propane Consumers Coalition has testified before the Senate Energy 
Committee, that these provisions will ensure that this legislation will 
not have a negative effect on consumers.
  Mr. THOMPSON. I thank the Senator.
  Mr. BUMPERS. I thank the Senator.

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