text: 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.
target: 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.
feat_title: Propane Education and Research Act of 1993