Propane Education and Research Enhancement Act of 2014

Floor Speech

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Mr. LATTA. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today in support of H.R. 5705, the Propane
Education and Research Enhancement Act of 2014, which I introduced
along with Congressman Walz. This important, bipartisan legislation
directs the U.S. Department of Commerce to more accurately calculate
consumer propane costs. It also enables the propane industry to use its
resources to mitigate price spikes.

Last winter in my home State of Ohio, as well as across 26 other
States across the country, the lives and livelihoods of many Americans
were threatened due to the propane shortages that were being
experienced. Access to heat is a requirement for survival and
employment, and we want to make sure that Americans do not face the
same hardships again this winter or in future winters.

This bill would take the necessary steps to allow the propane
industry to adequately address propane supply in pricing issues so
consumers are not negatively impacted this coming winter.

In 1996, Congress enacted the Propane Education and Research Act,
PERA, authorizing the propane to collect and use its own resources for
safety, training, research and development, and education for the
benefit of propane consumers and the public. The law also established
the Propane Education and Research Council, PERC, to accomplish these
goals.

To prevent this program from creating a disproportionate demand for
propane, the Department of Commerce is required to annually calculate
the price for consumer grade propane and compare it with an index of
prices of specified competing fuels. If the price of propane exceeds a
certain threshold, PERC is restricted from conducting its educational
outreach activities.

In 2009, due to a misinterpretation of the law by the Department of
Commerce, the restriction was triggered and all educational outreach by
PERC ceased. While the Department of Commerce believes Congress
intended PERA to focus only on residential-only propane, the text of
the law does not limit it to the residential market.

To correct this discrepancy, the Propane Education and Research
Enhancement Act of 2014 would clarify the language in the law to
require the Department of Commerce to use the proper data and bring the
application of the law back in line with Congress' intent. It would
also amend the existing functions of PERC to include training
distributors and consumers in strategies to mitigate the negative
effects of propane price spikes.

Over the past year, I have been working on this legislation with
stakeholders and with Congressman Walz to help mitigate having another
propane shortage. This legislation is an important step in helping to
achieve this, and I urge full support by my colleagues for H.R. 5705.

I reserve the balance of my time.

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Mr. LATTA. Mr. Speaker, I yield myself the balance of my time.

Again, as the gentleman from Minnesota pointed out, we had a great
shortage last winter that affected small family farms and large farms
across the country. We had situations where businesses were being
affected and having to shut down. So this is a very important bill that
will help folks make sure that hopefully we don't have that situation
occur again.

Mr. Speaker, I urge passage of H.R. 5705.

I yield back the balance of my time.

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