article: 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 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 the propane at the time it is recovered at a manufacturing facility; (6) the term ``propane'' means a hydrocarbon whose chemical composition is predominantly C&lt;SUP&gt;3H&lt;SUP&gt;8, whether recovered from natural gas or crude oil; (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 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 Secretary shall conduct a referendum as soon as possible among producers 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 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 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 initiative, or on petition of the Council or of producers and retail marketers representing 35 percent of the volume of propane in each class, the Secretary shall hold a referendum 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 marketer 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 Secretary shall select all retail marketer and producer members 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 Secretary. 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 organizations 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 producers; (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 industry. 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 terms. Members 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 provide 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 inform and educate the public, to develop and preserve markets 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 efficient delivery of services and to avoid unnecessary duplication of activities. (g) 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. (h) Employees; Administrative Expenses.--The Council may employ a person to serve as Chief Executive Officer and such other employees as it considers necessary. The Council shall determine the compensation and duties of each employee, and shall protect the handling of Council funds through fidelity bonds. The administrative 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 Council 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 recommended 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 considers appropriate to the budget after an opportunity for public comment. (j) Records; Audits.--The Council shall keep minutes, 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 information 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 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. (k) Reimbursement of Federal Expenses.--From assessments collected, the Council shall annually reimburse the Secretary for costs incurred in holding the referendum establishing the Council, making appointments 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 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. 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. Assessments 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 country is not subject to the assessment. (c) Alternative Collection Rules.--The Secretary 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 on any person who fails to remit, collect, 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.--After consultation with the Council, the Secretary may by regulation establish a program coordinating the operation of the Council with those of any State propane education and research council or similar entity created by State law. This may include a joint or coordinated assessment collection process, a reduced assessment, or an assessment rebate. If adopted, the reduction in assessment or rebate may be in an amount not to exceed 20 percent of the regular assessment collected in that State under this section. Assessment rebates shall be paid only to a State propane education and research council or similar entity that meets the requirements established by the Council, and only for specific projects approved by the Council. SEC. 7. ENFORCEMENT. (a) Cease and Desist Orders; Civil Penalties.--The Secretary, after providing notice and an opportunity for hearing, may, with respect to any person who violates any provision of this Act or any plan, regulation, or order issued under this Act-- (1) issue an order requiring that person to cease and desist from continuing such violation; and (2) assess a civil penalty not to exceed $5,000 for each such violation. Each day during which a violation continues shall be considered a separate violation. (b) Investigatory Powers.--In order to carry out this Act, the Secretary may administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, and documents which are relevant to the inquiry. Such attendance of witnesses and the production of any such records may be required from any place in the United States. The district courts of the United States may punish a failure to comply with a subpoena issued under this subsection as a contempt of the court. 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. ADMINISTRATIVE PROVISIONS. 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. 10. ISSUANCE OF REGULATIONS. Within 9 months after the date of enactment of this Act, the Secretary shall issue regulations for the implementation of this Act. The Secretary may require such reports or documentation as is necessary to document the referendum process and the nomination process for members of the Council and shall protect the confidentiality of all such documentation provided by industry members.
summary: Propane Education and Research Act of 1993 - Directs the Secretary of Energy (the Secretary) to conduct a referendum among producers and retail marketers to authorize the creation of the Propane Education and Research Council and the levying of an assessment on odorized propane. Makes it the Council's mission to develop programs and enter into contracts for: (1) propane research and development; (2) consumer education; (3) propane market development; and (4) payment for program costs with funds collected under this Act. Prescribes guidelines under which the Council shall set annual assessments to cover program costs. Authorizes the Secretary to establish a program to coordinate Council operations with any State propane education and research council. Proscribes the use of Council funds for lobbying activities. Directs the Secretary to issue implementation regulations.