I
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 consum-
ers 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 Okla-
homa, 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 Representa-
tives 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 sec-
tion 501(c)(3) or (6) of the Internal Revenue Code
of 1986, representing the propane industry;
(4) the term ‘‘odorized propane’’ means pro-
pane 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 manu-
facturing facility;
(6) the term ‘‘propane’’ means a hydrocarbon
whose chemical composition is predominantly C3H8,
whether recovered from natural gas or crude oil;
(7) the term ‘‘public member’’ means a member
of the Council, other than a representative of pro-
ducers 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 dispens-
ers;
(10) the term ‘‘retail propane dispenser’’ means
a person who sells odorized propane to the ultimate
consumer but is not engaged primarily in the busi-
ness 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 produc-
ers 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 rep-
resenting 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 initia-
tive, or on petition of the Council or of producers and re-
tail marketers representing 35 percent of the volume of
propane in each class, the Secretary shall hold a referen-
dum 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 mar-
keter 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 Sec-
retary shall select all retail marketer and producer mem-
bers 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 Sec-
retary. 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 organi-
zations 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 pro-
ducers;
(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 indus-
try. 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 mem-
bers be reimbursed for expenses relating to their service,
except that public members, upon request, may be reim-
bursed 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. Mem-
bers 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 pro-
vide 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 in-
form and educate the public, to develop and preserve mar-
kets 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 effi-
cient delivery of services and to avoid unnecessary duplica-
tion of activities.
(g) ADMINISTRATION.—The Council shall select from
among its members a Chairman and other officers as nec-
essary, may establish committees and subcommittees of
the Council, and shall adopt rules and bylaws for the con-
duct of business and the implementation of this Act. The
Council shall establish procedures for the solicitation of
industry comment and recommendations on any signifi-
cant 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 nec-
essary. The Council shall determine the compensation and
duties of each employee, and shall protect the handling
of Council funds through fidelity bonds. The administra-
tive 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 Coun-
cil 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 rec-
ommended 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 con-
siders appropriate to the budget after an opportunity for
public comment.
(j) RECORDS; AUDITS.—The Council shall keep min-
utes, 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 infor-
mation 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 no-
tice 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 re-
imburse the Secretary for costs incurred in holding the
referendum establishing the Council, making appoint-
ments 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 as-
sessment 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 referen-
dum 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. As-
sessments 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 coun-
try is not subject to the assessment.
(c) ALTERNATIVE COLLECTION RULES.—The Sec-
retary 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