February 2016 ND Propane Gas Association Propane vs. Natural Gas The battle of propane vs. natural gas isn’t going away in the United States. Below is an initial sampling of natural gas ANTI-Propane pieces of legislation many states are facing in 2016. While NDPGA won a big legislative victory over the natural gas industry in 2015, the battle is far from over. NDPGA is currently working with marketer members in several ND towns to inform community leaders in rural areas about the need to keep propane as a primary heating source as natural gas companies have opted to hide behind the veil of economic development in attempting to move its government and consumer subsidized expansion plans forward. State Engagement Program NPGA's Executive Committee approved two State Engagement Initiative programs at its January meeting: a second year of support to the Michigan Propane Gas Association to fight a legislative proposal to subsidize natural gas expansion and a new commitment to the Illinois Propane Gas Association to assist in its legislative and regulatory challenges against subsidized natural gas expansion. On January 31, NPGA concluded its program with the Minnesota Propane Association which resulted in the development of a toolkit for state associations and marketers to fight subsidized natural gas expansion. The toolkit includes four customizable pieces - a three-panel brochure, a postcard, a bill stuffer, and an action card. This toolkit is already being used in Wisconsin and Illinois. Over the past few months, NPGA has developed a list of targeted bills to help you monitor trends in other states that could impact propane marketers. The targeted bills are broken down into categories, linked to a legislative report that lists the flagged bills. The categories include: NATURAL GAS EXPANSION PROPANE INDUSTRY ISSUES Overregulation State PERCs Residential issues AUTOGAS CARBON REGULATION EPA’s Clean Power Plan Cap and trade Carbon taxes NPGA Legislave Report by State
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February 2016
ND Propane Gas Association
Propane vs. Natural Gas The battle of propane vs. natural gas isn’t going away in the United
States. Below is an initial sampling of natural gas ANTI-Propane pieces of
legislation many states are facing in 2016.
While NDPGA won a big legislative victory over the natural gas industry in
2015, the battle is far from over. NDPGA is currently working with marketer
members in several ND towns to inform community leaders in rural areas about
the need to keep propane as a primary heating source as natural gas companies
have opted to hide behind the veil of economic development in attempting to
move its government and consumer subsidized expansion plans forward.
State Engagement Program NPGA's Executive Committee approved two State Engagement Initiative programs at its January meeting: a second
year of support to the Michigan Propane Gas Association to fight a legislative proposal to subsidize natural gas
expansion and a new commitment to the Illinois Propane Gas Association to assist in its legislative and regulatory
challenges against subsidized natural gas expansion.
On January 31, NPGA concluded its program with the Minnesota Propane Association which resulted in the
development of a toolkit for state associations and marketers to fight subsidized natural gas expansion. The toolkit
includes four customizable pieces - a three-panel brochure, a postcard, a bill stuffer, and an action card. This toolkit
is already being used in Wisconsin and Illinois.
Over the past few months, NPGA has developed a list of targeted
bills to help you monitor trends in other states that could impact
propane marketers. The targeted bills are broken down into
categories, linked to a legislative report that lists the flagged bills.
ND Propane Gas Association 1014 E Central Avenue Bismarck, ND 58501
Phone:701-223-3370
Propane Exceptional Energy
Valued NDPGA Members:
The winter of 2015-2016 is one most propane marketers would just as soon forget. The warm temperatures and lack of snow have made for a rather slow year of sales. In fact, many marketers across the nation are turning their thoughts towards next winter. U.S. inventories of propane remain high even at this point in the heating season. But they do not on their own justify complacency among U.S. marketers. Here’s why.
Propane inventories in the U.S. are much higher than domestic demand requires, which is a major reason why exports are growing. High production levels will need to continue, because if they don't, propane prices would ultimately rise and deter exports.
High U.S. exports are reshuffling the deck in international trade flows and displacing more traditional propane suppliers from Africa and the Middle East. According to reports, Japan has made a conscious decision to import less from the Middle East because of political turmoil there. And higher U.S. exports have all but eliminated imports into Latin America from Africa. Exports are typically contracted for relatively long terms, many of which will extend beyond 2020. Because of this, there will be demand for continued high propane production that should also keep U.S. inventories high.
Even with high production levels, high U.S. demand during a cold winter next year could draw down inventories faster than anticipated. NPGA will be initiating early meetings with DOE and other policymakers to renew contact and inform them we are closely watching inventories as we approach next winter.
While the winter of 2015 didn’t produce much for propane sales, legislatively, 2015 was very successful for the propane industry. Here are a few of the highpoints:
50 cent per gallon alternative fuel tax credit for vehicles and forklifts was extended retroactively for 2015.
The alternative fuel refueling infrastructure tax credit was also extended retroactively for 2015.
NPGA is also thrilled that the alternative fuel tax credit and refueling infrastructure tax credit were extended for 2016 as well. However, the fuel tax credit will be calculated on an energy content basis also, and the IRS will be issuing guidance on the new tax credit amount in the coming days.
On the regulatory front, NPGA arguments persuaded the Federal Motor Carrier Safety Administration (FMCSA) to withdraw a proposed regulation that would burden motor carriers to ensure all commercial motor vehicles (CMVs) had clearly displayed Federal Motor Vehicle Safety Standards (FMVSS) certification labels.
Mike Rud
Executive Director
February 2016 Page 3
Under the proposal, CMVs without proper FMVSS certification labels would be removed from service.
Debate in the House of Representatives and the Senate on legislation to prevent FMCSA from increasing the minimum levels of financial responsibility for hazardous material motor carriers pressured FMCSA to postpone any action to increase the minimums.
In another dual, legislative-regulatory accomplishment, Congress precluded FMCSA from changing the mandatory 34-hour restart break with a new requirement to include two periods from 1:00 am through 5:00 am during the 34-hour restart break. Congress also prevents FMCSA from pursuing the change unless the agency produces statistically significant research demonstrating the additional requirement would improve driver safety and work schedules.
2016 is a presidential election year, so it’s not likely a lot will be getting done legislatively in Washington, DC. NDPGA will continue to work with NPGA to build awareness of our industry on the Hill, such as plant tours, Propane Days, and in-state meetings with Representatives and Senators. In this way we will be in a better position to raise our issues when the new Congress and new Administration come to Washington in 2017.
Keep the Flame lit!!
Mike Rud
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Employee Propane Training Schedule 2016
Feb 29 March 1 Basic Principles & Practices Book 1