1. Short title
This Act may be cited as the “Propane Supply and Security Act of 2014”.
Propane Supply and Security Act of 2014
A BILL
To prevent future propane shortages, and for other purposes.
2. Definitions
In this Act:
Administrator— The term “Administrator” means the Administrator of the Energy Information Administration.
Commission— The term “Commission” means the Federal Energy Regulatory Commission.
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.
Secretary— The term “Secretary” means the Secretary of Energy.
3. Information collection
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—
propane storage, including—
weekly inventory disaggregated below the level of the Petroleum Administration for Defense Districts (PADD) including—
data at the State and local level; and
aggregate data at market hubs around Conway, Kansas, Mont Bellvieu, Texas, and any other market hubs of significant regional scope; and
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
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.
Biannual working and net available storage capacity report— The Administrator shall publish data on storage at—
major market centers, including the regions around Conway, Kansas and Mont Bellvieu, Texas; and
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
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—
sudden increases in consumer prices for propane; or
propane supply shortages that threaten public safety or livestock safety.
Duties— In carrying out subsection (a), the Secretary shall—
establish criteria to determine when an emergency response action would be triggered;
establish a system for forecasting and tracking the availability of propane, with an emphasis on predicting supply shortages;
establish a system for alerting other Federal agencies, States, industry groups, and appropriate stakeholders of the crisis—
before an emergency; and
when the Secretary determines that an emergency has occurred;
establish a plan for coordinated response to an emergency by Federal and State agencies using their existing authorities; and
establish criteria to determine when the emergency has ended.
Actions— An emergency response carried out under this section may include actions by Federal and State agencies using their existing authorities—
to protect consumers from unfair pricing;
to expedite the distribution of propane through available transportation modes, including provisions—
to exempt motor carriers of propane from hours-of-service restrictions;
to prioritize propane shipments by rail;
to exempt vessels carrying propane from United States-flag ship requirements under the Jones Act; and
for actions by the Commission to prioritize propane shipments over other shipments in batched pipelines; and
expedited release of energy assistance funds.
Effect— Nothing in this section limits any existing agency authority of a Federal agency.
5. Definition of consumer propane prices
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,”.
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
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.).
Plan— Following completion of the study under subsection (a), the Secretary may submit to Congress and the President a plan describing—
the proposed acquisition of storage and related facilities or storage services, including—
the potential use of storage facilities not currently in use; and
a determination of the combination of primary, secondary, and tertiary storage facilities that will be used;
the proposed acquisition of propane for storage;
the proposed methods of disposition of propane;
the estimated costs of establishment, maintenance, and operation;
the efforts the Secretary will make—
to minimize any potential need for future drawdowns; and
to ensure the distributors and importers are not discouraged from maintaining and increasing supplies of propane;
the proposed actions to ensure the quality of the propane; and
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—
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
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.