Bill S151-2011

Implements the empire propane education and research act

Implements the empire propane education and research act; authorizes the creation of certain propane education programs; requires the creation of an empire propane education and research council; enumerates the duties and purposes of the empire propane education and research council.

Details

Actions

  • Feb 14, 2012: REPORTED AND COMMITTED TO FINANCE
  • Jan 4, 2012: REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • Jan 4, 2012: returned to senate
  • Jan 4, 2012: died in assembly
  • Jun 13, 2011: referred to codes
  • Jun 13, 2011: DELIVERED TO ASSEMBLY
  • Jun 13, 2011: PASSED SENATE
  • Jun 7, 2011: ADVANCED TO THIRD READING
  • Jun 6, 2011: 2ND REPORT CAL.
  • Jun 2, 2011: 1ST REPORT CAL.952
  • Mar 1, 2011: REPORTED AND COMMITTED TO FINANCE
  • Jan 5, 2011: REFERRED TO ENERGY AND TELECOMMUNICATIONS

Votes

VOTE: COMMITTEE VOTE: - Energy and Telecommunications - Mar 1, 2011
Ayes (10): Maziarz, Alesi, Fuschillo, Griffo, O'Mara, Ritchie, Robach, Parker, Gianaris, Kennedy
Ayes W/R (2): Adams, Kruger
VOTE: COMMITTEE VOTE: - Energy and Telecommunications - Feb 14, 2012
Ayes (12): Maziarz, Alesi, Fuschillo, Griffo, O'Mara, Ritchie, Robach, Parker, Adams, Gianaris, Kennedy, Dilan

Memo

BILL NUMBER:S151

TITLE OF BILL: An act to amend the energy law, in relation to implementing the empire propane education and research act

PURPOSE: This legislation would establish the Empire Propane Education and Research Act (PERC) funded through a voluntary fee of 1/10th of one cent assessed on companies which odorize propane with Ethyl Mercaptan intended for sale in New York State.

SUMMARY OF PROVISIONS: Section one of the bill adds a new Article 14 to the Energy Law to establish the Empire Propane Education and Research Act (PERC).

JUSTIFICATION: Under the Federal Propane Education and Research Act (Federal PERC), in 1599 New York State received one-fifth or about $40,000 for purposes specified in the Federal Act--education, safety training, consumer awareness and research and development. Empire PERC would make more money available for instate projects, including increased training of industry, fire personnel and local code officials, distributed power such as fuel cells, turbines and alternate fuel automotive demonstrations. Empire PERC will cost the state nothing -NYSERDA will receive a fee to defray the costs associated with their public member. A certified survey must be conducted among industry members in New York to accept or reject Empire PERC. If approved, the fee must be paid each month, but the company to which it is charged may apply for a refund. NYSERDA would receive a report on the proposed budget and would be entitled to review each program under Empire PERC.

LEGISLATIVE HISTORY: 2009-2010: S.7883/A.7797 Reported and Committed to Finance 2007-2008: S.4813 (Nozzolio) Referred to Ways and Means 2005-2006: S.1973D (Nozzolio) Referred to Energy 2003-2004: S.4255B (Nozzolio) Referred to Energy 2001-2002: S.7664 (Nozzolio) Referred to Energy

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 151 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________
Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations AN ACT to amend the energy law, in relation to implementing the empire propane education and research act THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The energy law is amended by adding a new article 14 to read as follows: ARTICLE 14 EMPIRE PROPANE EDUCATION AND RESEARCH ACT SECTION 14-101. SHORT TITLE. 14-102. DEFINITIONS. 14-103. REFERENDUM; CREATION AND TERMINATION OF A PROGRAM. 14-104. EMPIRE PROPANE EDUCATION AND RESEARCH COUNCIL. 14-105. ASSESSMENTS. 14-106. COMPLIANCE. 14-107. LOBBYING RESTRICTIONS. 14-108. PRICING. 14-109. RELATION TO OTHER PROGRAMS. S 14-101. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE EMPIRE PROPANE EDUCATION AND RESEARCH ACT. S 14-102. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES: 1. "COUNCIL" MEANS AN EMPIRE PROPANE EDUCATION AND RESEARCH COUNCIL CREATED PURSUANT TO SECTION 14-104 OF THIS ARTICLE; 2. "PRESIDENT" MEANS THE CHAIRMAN OF NYSERDA OR HIS OR HER DESIGNEE; 3. "EDUCATION" MEANS ANY ACTION TO PROVIDE INFORMATION REGARDING PROPANE, PROPANE EQUIPMENT, MECHANICAL AND TECHNICAL PRACTICES, AND PROPANE USES TO CONSUMERS, AND MEMBERS OF THE PROPANE INDUSTRY;
4. "INDUSTRY" MEANS THOSE PERSONS INVOLVED IN THE PRODUCTION, TRANS- PORTATION, AND SALE OF PROPANE, AND THE MANUFACTURE AND DISTRIBUTION OF PROPANE UTILIZATION EQUIPMENT; 5. "INDUSTRY TRADE ASSOCIATION" MEANS AN ORGANIZATION EXEMPT FROM TAX, UNDER SECTION 501(C)(3) OR 501(C)(6) OF THE INTERNAL REVENUE CODE OF 1986, REPRESENTING THE PROPANE INDUSTRY; 6. "NYSERDA" MEANS THE NEW YORK STATE ENERGY AND RESEARCH DEVELOPMENT AUTHORITY; 7. "ODORIZED PROPANE" MEANS PROPANE WHICH HAS AN ODORANT ADDED TO IT; 8. "PRODUCER" MEANS THE OWNER OF PROPANE AT THE TIME IT IS RECOVERED AT A GAS PROCESSING PLANT OR REFINERY; IRRESPECTIVE OF THE STATE WHERE PRODUCTION OCCURS; 9. "PROPANE" MEANS A HYDROCARBON WHOSE CHEMICAL COMPOSITION IS PREDO- MINATELY C3H8, WHETHER RECOVERED FROM NATURAL GAS OR CRUDE OIL, AND INCLUDES LIQUIFIED PETROLEUM GASES AND MIXTURES THEREOF; 10. "PUBLIC MEMBER" MEANS A DESIGNEE OF THE PRESIDENT OF THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY; 11. "QUALIFIED INDUSTRY ORGANIZATION" MEANS THE NEW YORK PROPANE GAS ASSOCIATION, THE NATIONAL PROPANE GAS ASSOCIATION, A SUCCESSOR ASSOCI- ATION OF THESE ASSOCIATIONS, OR ANY OTHER PROPANE INDUSTRY ORGANIZATION; 12. "RESEARCH" MEANS ANY TYPE OF STUDY, INVESTIGATION OR OTHER ACTIV- ITIES DESIGNED TO ADVANCE THE IMAGE, DESIRABILITY, USAGE, MARKETABILITY, EFFICIENCY, AND SAFETY OF PROPANE AND TO FURTHER THE DEVELOPMENT OF SUCH INFORMATION; 13. "RETAIL MARKETER" MEANS A PERSON ENGAGED PRIMARILY IN THE SALE OF ODORIZED PROPANE TO THE ULTIMATE CONSUMER OR TO RETAIL PROPANE DISPEN- SERS; AND 14. "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. S 14-103. REFERENDUM; CREATION AND TERMINATION OF A PROGRAM. 1. QUAL- IFIED INDUSTRY ORGANIZATIONS SHALL CONDUCT AT THEIR OWN EXPENSE, A REFERENDUM AMONG PRODUCERS AND RETAIL MARKETERS FOR THE CREATION OF AN EMPIRE PROPANE EDUCATION AND RESEARCH COUNCIL. THE COUNCIL, IF ESTAB- LISHED, SHALL REIMBURSE THE QUALIFIED INDUSTRY ORGANIZATIONS FOR THE COST OF THE REFERENDUM ACCOUNTING AND DOCUMENTATION. THE REFERENDUM SHALL BE CONDUCTED BY AN INDEPENDENT AUDITING FIRM AGREED TO BY THE QUALIFIED INDUSTRY ORGANIZATIONS. THE RESULTS, AS CERTIFIED BY AN INDE- PENDENT AUDITING FIRM, SHALL BE SUBMITTED TO THE PRESIDENT WITHIN THIRTY DAYS OF CERTIFICATION. VOTING RIGHTS IN THE REFERENDUM SHALL BE BASED ON THE VOLUME OF PROPANE PRODUCED OR ODORIZED PROPANE SOLD IN THE PREVIOUS CALENDAR YEAR. UPON APPROVAL OF THOSE PERSONS REPRESENTING TWO-THIRDS OF THE TOTAL VALUE OF PROPANE VOTED IN THE RETAIL MARKETER CLASS AND TWO-THIRDS OF ALL PROPANE VOTED IN THE PRODUCER CLASS, THE COUNCIL SHALL BE ESTABLISHED, AND SHALL BE AUTHORIZED TO LEVY AN ASSESSMENT ON ODOR- IZED PROPANE IN ACCORDANCE WITH SECTION 14-105 OF THIS ARTICLE. ALL PERSONS VOTING IN THE REFERENDUM SHALL CERTIFY TO THE INDEPENDENT AUDIT- ING FIRM THE VOLUME OF PROPANE REPRESENTED BY THEIR VOTE. 2. ON THE COUNCIL'S OWN INITIATIVE, OR ON PETITION TO THE COUNCIL BY PRODUCERS AND RETAIL MARKETERS REPRESENTING THIRTY-FIVE PERCENT OF THE VOLUME OF PROPANE IN EACH CLASS, THE COUNCIL SHALL, AT ITS OWN EXPENSE, HOLD A REFERENDUM TO BE CONDUCTED BY AN INDEPENDENT AUDITING FIRM SELECTED BY THE COUNCIL, TO DETERMINE WHETHER THE INDUSTRY FAVORS TERMI- NATION OR SUSPENSION OF THE COUNCIL. 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 THE TOTAL VOLUME OF PROPANE IN THE PRODUCER CLASS. S 14-104. EMPIRE PROPANE EDUCATION AND RESEARCH COUNCIL. 1. THE QUALI- FIED INDUSTRY ORGANIZATIONS SHALL SELECT ALL RETAIL MARKETERS MEMBERS AND PRODUCER MEMBERS OF THE COUNCIL. THE PRESIDENT SHALL DESIGNATE ONE PUBLIC MEMBER. VACANCIES IN THE UNFINISHED TERMS OF COUNCIL MEMBERS SHALL BE FILLED IN THE SAME MANNER AS WERE THE ORIGINAL APPOINTMENTS. 2. IN SELECTING MEMBERS OF THE COUNCIL, THE QUALIFIED INDUSTRY ORGAN- IZATIONS SHALL GIVE DUE REGARD TO SELECTING A COUNCIL THAT IS REPRESEN- TATIVE OF THE INDUSTRY, INCLUDING REPRESENTATION OF: (A) GAS PROCESSORS AND OIL REFINERS AMONG PRODUCERS; (B) INTERSTATE AND INTRASTATE OPERATORS AMONG RETAIL MARKETERS; (C) LARGE AND SMALL COMPANIES AMONG PRODUCERS AND RETAIL MARKETERS, INCLUDING AGRICULTURAL COOPERATIVES; AND (D) DIVERSE GEOGRAPHIC REGIONS OF THE STATE. 3. THE COUNCIL SHALL CONSIST OF NO LESS THAN FIVE AND UP TO SEVEN MEMBERS, WITH NO LESS THAN FOUR AND UP TO SIX MEMBERS REPRESENTING RETAIL MARKETERS AND PRODUCERS, AND ONE PUBLIC MEMBER. OTHER THAN THE PUBLIC MEMBER, COUNCIL MEMBERS SHALL BE FULL-TIME EMPLOYEES OR OWNERS OF BUSINESSES IN THE INDUSTRY OR REPRESENTATIVES OF AGRICULTURAL COOPER- ATIVES. NO EMPLOYEE OF A QUALIFIED INDUSTRY ORGANIZATION SHALL SERVE AS A MEMBER OF THE COUNCIL, AND NO MEMBER OF THE COUNCIL MAY SERVE CONCUR- RENTLY AS AN OFFICER OF THE BOARD OF DIRECTORS OF A QUALIFIED INDUSTRY ORGANIZATION OR OTHER TRADE ASSOCIATION. ONLY ONE PERSON AT A TIME FROM ANY COMPANY OR ITS AFFILIATE MAY SERVE ON THE COUNCIL. THE PRESIDENT MAY SERVE AS AN EX-OFFICIO NON-VOTING MEMBER OF THE COUNCIL. 4. 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. 5. COUNCIL MEMBERS SHALL SERVE TERMS OF THREE YEARS AND MAY NOT SERVE MORE THAN TWO FULL CONSECUTIVE TERMS. MEMBERS FILLING UNEXPIRED TERMS MAY SERVE NOT MORE THAN A TOTAL OF SEVEN CONSECUTIVE YEARS. FORMER MEMBERS OF THE COUNCIL MAY BE RETURNED TO THE COUNCIL IF THEY HAVE NOT BEEN MEMBERS FOR A PERIOD OF TWO YEARS. INITIAL APPOINTMENTS TO THE COUNCIL SHALL BE FOR TERMS OF ONE, TWO, AND THREE YEARS STAGGERED TO PROVIDE FOR THE SELECTION OF FOUR MEMBERS EACH YEAR. THE COUNCIL SHALL NOTIFY THE PRESIDENT OF THE NAME, ADDRESS, AND PROPANE-RELATED AFFIL- IATION, IF ANY, OF A COUNCIL MEMBER WITHIN THIRTY DAYS AFTER THE APPOINTMENT OF THE MEMBER TO THE COUNCIL. 6. THE COUNCIL SHALL DEVELOP PROGRAMS AND PROJECTS AND ENTER INTO CONTRACTS OR AGREEMENTS FOR IMPLEMENTING THIS ARTICLE, INCLUDING PROGRAMS TO ENHANCE CONSUMER AND EMPLOYEE SAFETY AND TRAINING, TO PROVIDE FOR RESEARCH AND DEVELOPMENT OF CLEAN AND EFFICIENT PROPANE UTILIZATION EQUIPMENT, TO INFORM AND EDUCATE THE PUBLIC ABOUT SAFETY AND OTHER ISSUES ASSOCIATED WITH THE USE OF PROPANE, AND TO PROVIDE FOR THE PAYMENT OF THE COSTS THEREOF WITH FUNDS COLLECTED PURSUANT TO THIS ARTI- CLE. THE COUNCIL SHALL COORDINATE ITS ACTIVITIES WITH INDUSTRY TRADE ASSOCIATIONS, HUDSON VALLEY COMMUNITY COLLEGE, OTHER COMMUNITY COLLEGES AND OTHERS AS APPROPRIATE TO PROVIDE EFFICIENT DELIVERY OF SERVICES AND TO AVOID UNNECESSARY DUPLICATION OF ACTIVITIES. 7. ISSUES RELATED TO RESEARCH AND DEVELOPMENT, SAFETY, EDUCATION, AND TRAINING SHALL BE GIVEN PRIORITY BY THE COUNCIL IN THE DEVELOPMENT OF ITS PROGRAMS AND PROJECTS.
8. THE COUNCIL SHALL SELECT FROM AMONG ITS MEMBERS A CHAIRPERSON 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 ARTICLE. THE COUNCIL SHALL ESTABLISH PROCEDURES FOR THE SOLICITATION OF INDUSTRY COMMENT AND RECOM- MENDATIONS 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. 9. AT THE BEGINNING OF EACH FISCAL PERIOD, THE COUNCIL SHALL PREPARE A BUDGET PLAN FOR THE NEXT FISCAL PERIOD, INCLUDING THE PROBABLE COST OF ALL PROGRAMS, PROJECTS, AND CONTRACTS AND A RECOMMENDED RATE OF ASSESS- MENT SUFFICIENT TO COVER SUCH COSTS. THE COUNCIL SHALL SUBMIT THE PROPOSED BUDGET TO THE PRESIDENT FOR REVIEW AND COMMENT. THE PRESIDENT MAY RECOMMEND PROGRAMS AND ACTIVITIES CONSIDERED APPROPRIATE. 10. THE COUNCIL SHALL KEEP MINUTES, BOOKS, AND RECORDS THAT CLEARLY REFLECT ALL OF THE ACTS AND TRANSACTIONS OF THE COUNCIL AND MAKE PUBLIC SUCH INFORMATION. THE BOOKS OF THE COUNCIL SHALL BE AUDITED BY A CERTI- FIED PUBLIC ACCOUNTANT AT LEAST ONCE EACH FISCAL YEAR AND AT SUCH OTHER TIMES AS THE COUNCIL MAY DESIGNATE. THE EXPENSE OF THE AUDIT SHALL BE THE RESPONSIBILITY OF THE COUNCIL. COPIES OF SUCH AUDIT SHALL BE PROVIDED TO ALL MEMBERS OF THE COUNCIL, ALL QUALIFIED INDUSTRY ORGANIZA- TIONS, AND TO OTHER MEMBERS OF THE INDUSTRY UPON REQUEST. S 14-105. ASSESSMENTS. 1. THE COUNCIL SHALL SET THE ASSESSMENT AT NO GREATER THAN ONE-TENTH OF ONE CENT PER GALLON OF ODORIZED PROPANE. 2. THE OWNER OF ODORIZED PROPANE AT THE TIME OF ODORIZATION, OR THE TIME OF IMPORT OF ODORIZED PROPANE SHALL MAKE THE ASSESSMENT BASED ON THE VOLUME OF ODORIZED PROPANE SOLD. THE ASSESSMENT, WHEN MADE, SHALL BE LISTED AS A SEPARATE LINE ITEM ON THE BILL LABELED "EMPIRE PROPANE EDUCATION AND RESEARCH ASSESSMENT". ASSESSMENTS COLLECTED FROM PURCHAS- ERS OF PROPANE ARE PAYABLE TO THE COUNCIL ON A MONTHLY BASIS BY THE TWENTY-FIFTH OF THE MONTH FOLLOWING THE MONTH OF COLLECTION. IF PAYMENT IS NOT MADE TO THE COUNCIL BY THE DUE DATE UNDER THIS SUBDIVISION, AN INTEREST PENALTY OF ONE PERCENT OF ANY AMOUNT UNPAID SHALL BE ADDED FOR EACH MONTH OR FRACTION OF A MONTH AFTER THE DUE DATE, UNTIL FINAL PAYMENT IS MADE. 3. THE COUNCIL MAY ESTABLISH AN ALTERNATIVE MEANS OF COLLECTING THE ASSESSMENT IF ANOTHER MEANS IS FOUND TO BE MORE EFFICIENT AND EFFECTIVE. THE COUNCIL MAY ESTABLISH A LATE PAYMENT CHARGE AND RATE OF INTEREST TO BE IMPOSED ON ANY PERSON WHO FAILS TO REMIT OR PAY TO THE COUNCIL ANY AMOUNT DUE UNDER THIS ARTICLE. 4. PENDING DISBURSEMENT PURSUANT TO A PROGRAM, PLAN, OR PROJECT, THE COUNCIL SHALL 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 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. S 14-106. COMPLIANCE. THE SUPREME COURT IS VESTED WITH THE JURISDIC- TION SPECIFICALLY TO ENFORCE THE PROVISIONS OF THIS ARTICLE, AND PREVENT OR RESTRAIN ANY PERSON FROM VIOLATING ANY SUCH PROVISION. A SUCCESSFUL ACTION FOR COMPLIANCE UNDER THIS SECTION MAY ALSO REQUIRE PAYMENT BY THE DEFENDANT OF THE COSTS INCURRED BY THE COUNCIL IN BRINGING THE ACTION. S 14-107. 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 PRESIDENT CHANGES IN THIS
ARTICLE OR OTHER STATUTES THAT WOULD FURTHER THE PURPOSE OF THIS ARTI- CLE. S 14-108. PRICING. IN ALL CASES, THE PRICE OF PROPANE SHALL BE DETER- MINED BY MARKET FORCES. CONSISTENT WITH THE ANTITRUST LAWS, THE COUNCIL MAY TAKE NO ACTION, NOR MAY ANY PROVISION OF THIS ARTICLE BE INTERPRETED AS ESTABLISHING AN AGREEMENT TO PASS ALONG TO CONSUMERS THE COST OF THE ASSESSMENT PROVIDED FOR IN SECTION 14-105 OF THIS ARTICLE. S 14-109. RELATION TO OTHER PROGRAMS. NOTHING IN THIS ARTICLE MAY BE CONSTRUED TO PREEMPT OR SUPERSEDE ANY OTHER PROGRAM RELATING TO PROPANE EDUCATION AND RESEARCH ORGANIZED AND OPERATED UNDER THE LAWS OF THE STATE OF NEW YORK. S 2. This act shall take effect immediately.

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