H.R. 5469 — Introduced in House

I 113th CONGRESS 2d Session H. R. 5469 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. Short title This Act may be cited as the Propane Supply and Security Act of 2014. 2. Definitions In this Act: (1) Administrator The term Administrator means the Administrator of the Energy Information Administration. (2) Commission The term Commission means the Federal Energy Regulatory Commission. (3) Propane pipeline The term propane pipeline means a pipeline regulated under chapter 601 of title 49, United States Code, that is used to transport propane. (4) Secretary The term Secretary means the Secretary of Energy. 3. Information collection (a) In general The Administrator, in coordination with other Federal and State officials, as appropriate, shall publish to the maximum extent practicable and consistent with confidentiality requirements, data on— (1) propane storage, including— (A) weekly inventory disaggregated below the level of the Petroleum Administration for Defense Districts (PADD) including— (i) data at the State and local level; and (ii) aggregate data at market hubs around Conway, Kansas, Mont Bellvieu, Texas, and any other market hubs of significant regional scope; and (B) weekly data to separately account for non-fuel propylene and propane for PADD 3 and other regions if the Administrator determines that inclusion of the nonfuel propylene supply data significantly distorts propane supply and pricing data, and the Administrator determines it is feasible to collect separate data and nonfuel propylene and propane; and (2) propane markets, including pricing data, for residential customers in States that voluntarily choose to participate in the State Heating Oil and Propane Program (SHOPP) of the Energy Information Administration. (b) Biannual working and net available storage capacity report The Administrator shall publish data on storage at— (1) major market centers, including the regions around Conway, Kansas and Mont Bellvieu, Texas; and (2) to the extent practicable based on existing surveys and consistent with confidentiality requirements, the regions reported in the weekly and monthly inventory data under subsection (a). 4. Coordinated response to emergencies (a) In general The Secretary shall lead and coordinate Federal and State emergency response efforts with respect to propane supply emergencies in any State or region of the United States that are characterized, as determined by the Secretary, by— (1) sudden increases in consumer prices for propane; or (2) propane supply shortages that threaten public safety or livestock safety. (b) Duties In carrying out subsection (a), the Secretary shall— (1) establish criteria to determine when an emergency response action would be triggered; (2) establish a system for forecasting and tracking the availability of propane, with an emphasis on predicting supply shortages; (3) establish a system for alerting other Federal agencies, States, industry groups, and appropriate stakeholders of the crisis— (A) before an emergency; and (B) when the Secretary determines that an emergency has occurred; (4) establish a plan for coordinated response to an emergency by Federal and State agencies using their existing authorities; and (5) establish criteria to determine when the emergency has ended. (c) Actions An emergency response carried out under this section may include actions by Federal and State agencies using their existing authorities— (1) to protect consumers from unfair pricing; (2) to expedite the distribution of propane through available transportation modes, including provisions— (A) to exempt motor carriers of propane from hours-of-service restrictions; (B) to prioritize propane shipments by rail; (C) to exempt vessels carrying propane from United States-flag ship requirements under the Jones Act; and (D) for actions by the Commission to prioritize propane shipments over other shipments in batched pipelines; and (3) expedited release of energy assistance funds. (d) Effect Nothing in this section limits any existing agency authority of a Federal agency. 5. Definition of consumer propane prices (a) Functions of propane education and research council Section 5(f) of the Propane Education and Research Act of 1996 (15 U.S.C. 6404(f)) is amended in the first sentence by inserting to train propane distributors and consumers in strategies to mitigate negative effects of future propane price spikes, after to enhance consumer and employee safety and training,. (b) Market survey and consumer protection price analysis Section 9(a) of the Propane Education and Research Act of 1996 (15 U.S.C. 6408(a)) is amended in the first sentence by striking only data provided by the Energy Information Administration and inserting the refiner price to end users of consumer grade propane, as published by the Energy Information Administration. 6. Regional propane reserve study (a) Study Not later than 180 days after the date of enactment of this Act, the Secretary shall conduct a study to determine the effectiveness and feasibility of establishing 1 or more propane storage facilities, to be operated separately from the Strategic Petroleum Reserve established under part B of title I of the Energy Policy and Conservation Act (42 U.S.C. 6231 et seq.). (b) Plan Following completion of the study under subsection (a), the Secretary may submit to Congress and the President a plan describing— (1) the proposed acquisition of storage and related facilities or storage services, including— (A) the potential use of storage facilities not currently in use; and (B) a determination of the combination of primary, secondary, and tertiary storage facilities that will be used; (2) the proposed acquisition of propane for storage; (3) the proposed methods of disposition of propane; (4) the estimated costs of establishment, maintenance, and operation; (5) the efforts the Secretary will make— (A) to minimize any potential need for future drawdowns; and (B) to ensure the distributors and importers are not discouraged from maintaining and increasing supplies of propane; (6) the proposed actions to ensure the quality of the propane; and (7) the proposed accounts and funding structures required for acquisition of propane and propane storage facilities. 7. Storage facility loans for propane storage Section 1614(a) of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8789(a)) is amended by inserting , including facilities for propane that is used for drying and heating before the period at the end. 8. Study of jurisdiction Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall complete a study of facilities appurtenant to propane pipelines (such as terminals and storage facilities) that are not subject to the jurisdiction of the Commission (as of the date on which the study commences) to determine— (1) whether and to what degree the nonjurisdictional nature of the facilities had an impact on the propane price spike during the winter of 2013 to 2014; or (2) whether findings described in paragraph (1) demonstrate whether it would be in the public interest to enact a change in law to place such facilities under the jurisdiction of the Commission.