I 

113TH CONGRESS 

2D SESSION H. R. 5469 

To prevent future propane shortages, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 15, 2014 

Mr. LATTA introduced the following bill; which was referred to the Committee 

on Energy and Commerce, and in addition to the Committee on Agriculture, 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 

A BILL 

To prevent future propane shortages, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Propane Supply and 

5 Security Act of 2014’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) ADMINISTRATOR.—The term ‘‘Adminis9 trator’’ means the Administrator of the Energy In10 formation Administration. 

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1 (2) COMMISSION.—The term ‘‘Commission’’ 

2 means the Federal Energy Regulatory Commission. 

3 (3) PROPANE PIPELINE.—The term ‘‘propane 

4 pipeline’’ means a pipeline regulated under chapter 

5 601 of title 49, United States Code, that is used to 

6 transport propane. 

7 (4) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of Energy. 

9 SEC. 3. INFORMATION COLLECTION. 

10 (a) IN GENERAL.—The Administrator, in coordina11 tion with other Federal and State officials, as appropriate, 

12 shall publish to the maximum extent practicable and con13 sistent with confidentiality requirements, data on— 

14 (1) propane storage, including— 

15 (A) weekly inventory disaggregated below 

16 the level of the Petroleum Administration for 

17 Defense Districts (PADD) including— 

18 (i) data at the State and local level; 

19 and 

20 (ii) aggregate data at market hubs 

21 around Conway, Kansas, Mont Bellvieu, 

22 Texas, and any other market hubs of sig23 nificant regional scope; and 

24 (B) weekly data to separately account for 

25 non-fuel propylene and propane for PADD 3 

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1 and other regions if the Administrator deter2 mines that inclusion of the nonfuel propylene 

3 supply data significantly distorts propane sup4 ply and pricing data, and the Administrator de5 termines it is feasible to collect separate data 

6 and nonfuel propylene and propane; and 

7 (2) propane markets, including pricing data, for 

8 residential customers in States that voluntarily 

9 choose to participate in the State Heating Oil and 

10 Propane Program (SHOPP) of the Energy Informa11 tion Administration. 

12 (b) BIANNUAL WORKING AND NET AVAILABLE

13 STORAGE CAPACITY REPORT.—The Administrator shall 

14 publish data on storage at— 

15 (1) major market centers, including the regions 

16 around Conway, Kansas and Mont Bellvieu, Texas; 

17 and 

18 (2) to the extent practicable based on existing 

19 surveys and consistent with confidentiality require20 ments, the regions reported in the weekly and 

21 monthly inventory data under subsection (a). 

22 SEC. 4. COORDINATED RESPONSE TO EMERGENCIES. 

23 (a) IN GENERAL.—The Secretary shall lead and co24 ordinate Federal and State emergency response efforts 

25 with respect to propane supply emergencies in any State 

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1 or region of the United States that are characterized, as 

2 determined by the Secretary, by— 

3 (1) sudden increases in consumer prices for 

4 propane; or 

5 (2) propane supply shortages that threaten pub6 lic safety or livestock safety. 

7 (b) DUTIES.—In carrying out subsection (a), the Sec8 retary shall— 

9 (1) establish criteria to determine when an 

10 emergency response action would be triggered; 

11 (2) establish a system for forecasting and track12 ing the availability of propane, with an emphasis on 

13 predicting supply shortages; 

14 (3) establish a system for alerting other Federal 

15 agencies, States, industry groups, and appropriate 

16 stakeholders of the crisis— 

17 (A) before an emergency; and 

18 (B) when the Secretary determines that an 

19 emergency has occurred; 

20 (4) establish a plan for coordinated response to 

21 an emergency by Federal and State agencies using 

22 their existing authorities; and 

23 (5) establish criteria to determine when the 

24 emergency has ended. 

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1 (c) ACTIONS.—An emergency response carried out 

2 under this section may include actions by Federal and 

3 State agencies using their existing authorities— 

4 (1) to protect consumers from unfair pricing; 

5 (2) to expedite the distribution of propane 

6 through available transportation modes, including 

7 provisions— 

8 (A) to exempt motor carriers of propane 

9 from hours-of-service restrictions; 

10 (B) to prioritize propane shipments by rail; 

11 (C) to exempt vessels carrying propane 

12 from United States-flag ship requirements 

13 under the Jones Act; and 

14 (D) for actions by the Commission to 

15 prioritize propane shipments over other ship16 ments in batched pipelines; and 

17 (3) expedited release of energy assistance funds. 

18 (d) EFFECT.—Nothing in this section limits any ex19 isting agency authority of a Federal agency. 

20 SEC. 5. DEFINITION OF CONSUMER PROPANE PRICES. 

21 (a) FUNCTIONS OF PROPANE EDUCATION AND RE22 SEARCH COUNCIL.—Section 5(f) of the Propane Edu23 cation and Research Act of 1996 (15 U.S.C. 6404(f)) is 

24 amended in the first sentence by inserting ‘‘to train pro25 pane distributors and consumers in strategies to mitigate 

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1 negative effects of future propane price spikes,’’ after ‘‘to 

2 enhance consumer and employee safety and training,’’. 

3 (b) MARKET SURVEY AND CONSUMER PROTECTION

4 PRICE ANALYSIS.—Section 9(a) of the Propane Education 

5 and Research Act of 1996 (15 U.S.C. 6408(a)) is amend6 ed in the first sentence by striking ‘‘only data provided 

7 by the Energy Information Administration’’ and inserting 

8 ‘‘the refiner price to end users of consumer grade propane, 

9 as published by the Energy Information Administration’’. 

10 SEC. 6. REGIONAL PROPANE RESERVE STUDY. 

11 (a) STUDY.—Not later than 180 days after the date 

12 of enactment of this Act, the Secretary shall conduct a 

13 study to determine the effectiveness and feasibility of es14 tablishing 1 or more propane storage facilities, to be oper15 ated separately from the Strategic Petroleum Reserve es16 tablished under part B of title I of the Energy Policy and 

17 Conservation Act (42 U.S.C. 6231 et seq.). 

18 (b) PLAN.—Following completion of the study under 

19 subsection (a), the Secretary may submit to Congress and 

20 the President a plan describing— 

21 (1) the proposed acquisition of storage and re22 lated facilities or storage services, including— 

23 (A) the potential use of storage facilities 

24 not currently in use; and 

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1 (B) a determination of the combination of 

2 primary, secondary, and tertiary storage facili3 ties that will be used; 

4 (2) the proposed acquisition of propane for 

5 storage; 

6 (3) the proposed methods of disposition of pro7 pane; 

8 (4) the estimated costs of establishment, main9 tenance, and operation; 

10 (5) the efforts the Secretary will make— 

11 (A) to minimize any potential need for fu12 ture drawdowns; and 

13 (B) to ensure the distributors and import14 ers are not discouraged from maintaining and 

15 increasing supplies of propane; 

16 (6) the proposed actions to ensure the quality 

17 of the propane; and 

18 (7) the proposed accounts and funding struc19 tures required for acquisition of propane and pro20 pane storage facilities. 

21 SEC. 7. STORAGE FACILITY LOANS FOR PROPANE STOR22 AGE. 

23 Section 1614(a) of the Food, Conservation, and En24 ergy Act of 2008 (7 U.S.C. 8789(a)) is amended by insertmstockstill on DSK4VPTVN1PROD with BILLS

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1 ing ‘‘, including facilities for propane that is used for dry2 ing and heating’’ before the period at the end. 

3 SEC. 8. STUDY OF JURISDICTION. 

4 Not later than 1 year after the date of enactment 

5 of this Act, the Comptroller General of the United States 

6 shall complete a study of facilities appurtenant to propane 

7 pipelines (such as terminals and storage facilities) that are 

8 not subject to the jurisdiction of the Commission (as of 

9 the date on which the study commences) to determine— 

10 (1) whether and to what degree the nonjurisdic11 tional nature of the facilities had an impact on the 

12 propane price spike during the winter of 2013 to 

13 2014; or 

14 (2) whether findings described in paragraph (1) 

15 demonstrate whether it would be in the public inter16 est to enact a change in law to place such facilities 

17 under the jurisdiction of the Commission. 

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