Category: Propane News

NPGA Joins Lawsuit Against Washington State’s Heat Pump Mandate

In a united effort, NPGA has joined forces with other trade associations and companies to file a federal lawsuit against the state of Washington. The legal action comes in response to the Washington State Building Code Council (SBCC) implementing amendments to the state code that would require using heat pumps for space and water heating starting from July 1, 2023.

The journey to this lawsuit began when the Washington Governor introduced bills in 2021 and 2022 to eliminate gas infrastructure for heating in new construction. Although these bills did not pass, the SBCC took matters into its own hands and made backdoor amendments to the state code, effectively mandating the use of heat pumps.

Recognizing the similarity between the Washington SBCC’s changes and the recent Ninth Circuit decision in Berkeley, California, a coalition comprising NPGA, PPGA member Blue Star Gas, and other supporting parties filed a state court action in late February 2023. Building on this momentum, a parallel lawsuit was filed in Federal court, with NPGA named a plaintiff.

The legal challenges aim to protect the rights of consumers and businesses in Washington, ensuring they can choose their preferred heating options without being forced into a specific technology. NPGA remains committed to advocating for the propane industry and fighting against unjust mandates that limit choice and hinder progress.

Vermont Legislature Overrides Veto, Propane Industry Continues Battle for Fairness

Recently, the Vermont Legislature achieved a significant milestone by overriding Governor Scott’s veto of S.5, also known as the Affordable Heat Act. This bill, aimed at promoting affordable and clean heating solutions, tasks the public utility commission with developing a clean heat standard. The objective is to discourage traditional fossil fuel-based heating sources, such as propane, and encourage customers to adopt alternative thermal options like heat pumps, wood stoves, and renewable molecules.

Leslie Anderson, the Executive Director of the Propane Gas Association of New England (PGANE), has been at the forefront of the battle against this bill throughout multiple legislative sessions. Anderson expressed her concerns and intentions, stating, “PGANE is collaborating with the Vermont Fuel Dealers Association to assess potential legal avenues we can pursue, particularly in light of the recent ruling by the Ninth Circuit in the Berkeley case. We are profoundly disappointed by the misinformation campaign orchestrated by Vermont’s majority leadership, especially considering the overwhelming response from Vermont citizens who voiced their apprehension regarding the passage of this Act. It was undoubtedly a challenging advocacy fight, and while our success was limited, we managed to secure the inclusion of a relatively weak call-back provision in the Senate bill. Additionally, two of our ten requests were added to the House bill.”

Despite the disappointments, Anderson’s determination remains steadfast as she and PGANE continue to protect the interests of the propane industry and its customers in Vermont. The journey ahead may be arduous, but their commitment to advocating for fair and informed decision-making remains unwavering.

United Energy Trading and Superior Fuel Collaborate to Fuel Northern Minnesota and Wisconsin

Exciting news is brewing in the propane industry as United Energy Trading and Superior Fuel join forces in a groundbreaking throughput agreement. The partnership centers around a cutting-edge terminal constructed in 2021, catering to customers in northern Minnesota and northern Wisconsin. Boasting four colossal 80,000-gallon propane storage tanks and ample track capacity, this state-of-the-art facility can effortlessly accommodate surges in volumes during peak demand periods. Its strategic location near a major interchange allows for cost-effective rail supply sourced from multiple Class 1 carriers, a feature that truly sets it apart, according to UET.

Superior Fuel Co.’s President, Ryan Gunderson, couldn’t contain his excitement about the collaboration, stating, “Superior Fuel is thrilled to join forces with United Energy at our esteemed rail terminal in Duluth. Initially, we built this terminal to address our supply needs while providing an additional supply location for fellow propane marketers in northern Minnesota and northern Wisconsin. After two successful years of operation, we felt confident expanding volumes by partnering with a wholesaler. Meeting with Wade and Shane from United Energy Trading showed that we shared common values and visions, making them an ideal fit for our market.”

United Energy Trading, renowned for its innovative approaches, pledges to provide a wide range of supply options and flexible pricing structures to accommodate the diverse needs of customers. With a shared belief that this terminal will emerge as an enticing new supply point for numerous potential customers in the region, the UET team is thrilled to embark on this strategic partnership with Ryan and the Superior Fuel crew.

Founded in 2002, United Energy Trading has cemented itself as a fully integrated energy marketing and logistics organization with an extensive footprint spanning the continental United States and Canada. Their expertise and commitment to excellence make them the perfect collaborators for Superior Fuel, elevating the region’s propane market to new heights.

NPGA Explores Alternatives Following FMCSA’s Denial of Hours-of-Service Exemption

The Federal Motor Carrier Safety Administration (FMCSA) recently rejected the National Propane Gas Association’s (NPGA) request for a five-year special exemption to federal hours-of-service (HOS) regulations, which resulted in a setback. This denial, received in September 2022, prompted NPGA to reassess its approach and explore alternative solutions.

The discussions between FMCSA and NPGA revolved around a proposal that aimed to streamline operations during periods of peak consumer demand. The proposal sought an automatic waiver of specific regulations, allowing companies to exercise discretion on a per-vehicle or per-driver basis without requiring state or federal intervention. Key components of the proposal included extending the daily driving maximum from 11 hours to 14 hours and extending the daily on-duty max from 14 hours to 17 hours for up to six consecutive days.

Steve Kaminski, President and CEO of NPGA, expressed disappointment at the denial but highlighted the FMCSA’s primary concern—safety. The regulatory body expressed reservations about granting companies the autonomy to determine when waivers were appropriate, ultimately prioritizing safety considerations over operational flexibility.

However, it’s worth noting that the propane industry did receive a broader HOS waiver in December, encompassing 47 states for 15 days. Kaminski acknowledged that while the Biden administration’s stance on granting such waivers may be less lenient than in the past, the winter waiver somewhat alleviated the industry’s concerns. This reprieve provided some relief and demonstrated a level of responsiveness from the authorities.

As NPGA moves forward, they are actively evaluating alternative options and strategies. While the special exemption was not granted, the association remains committed to finding practical solutions that balance operational efficiency with safety standards. The goal is to ensure propane industry players can navigate the challenges of peak consumer demand without compromising safety protocols.

As NPGA explores new avenues, its focus remains steadfast on fostering a secure and sustainable environment within the propane industry. Adapting to changing regulations and seeking innovative solutions will be vital to maintaining efficient operations while upholding the highest safety standards.