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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.
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 Legislative Report by State
Page 2
NDPGA
Executive Committee
President
Dave Walth
Gray Oil
Vice-President
Scholarship Coordinator
Dale Beck
Dakota Ag Coop
Secretary/Treasurer
Lyle Stevens
Horizon Resources
State Director
Ken Kraft
NDPGA
Board of Directors
Darin Adolphsen
LPG & NH3 Inc.
Dan Marler
Ferrell North America
Lee Fitterer
Fitterer Oil & Gas
Darrin Johnson
Northdale Oil, Inc.
Jim Renke
Southwest Grain
Steve Ketterling
Farmland Coop
Dan Erbes
FEI Inc
Kevin Schroeder
Northern Fuel Partners
Joe Fouhy
Farmers Union - Beulah
Staff Executive Director
Mike Rud
Office Manager
Mary Nagel
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
Page 6 Propane Exceptional Energy
Employee Propane Training Schedule 2016
Feb 29 March 1 Basic Principles & Practices Book 1
March 2 & 3 Bobtail Delivery Operations Book 2.2
March 4 DOT Hazardous Material
March 4 Basic & Delivery Refresher Training
Expressway Suites – 4303 17th Ave S - Fargo, ND 1-877-239-4303
April 4 & 5 Basic Principles & Practices Book 1
April 6-7-8 Designing & Installing Exterior Vapor Distribution Systems Book 4.1
Sleep Inn & Suites - 2400 10th Street SW, Minot, ND Phone 701-837-3100
May 2-3-4 Plant Operations Book 3.1 - 3.5
May 5 DOT Hazardous Material
May 5 Propane Cylinder Filling
May 6 Office Personnel
Expressway Suites – 4303 17th Ave S - Fargo, ND 1-877-239-4303
August 1-2-3-4 Appliance Installation Book 4.3
Ramada Bismarck Hotel - 1400 East Interchange Ave – Bismarck, ND 701-258-7000
August 22 & 23
Basic Principles & Practices
August 24 & 02
Bobtail Delivery Operations
August 26 DOT Hazardous Material
August 26 Propane Cylinder Filling
Seven Seas – Mandan, ND
August 29-30-31 September 1
Appliance Service Book 4.4 Ramada Bismarck Hotel – Bismarck
September 12-13-14
Placing Vapor Distribution Systems &
Appliances into Operation Book 4.2
September 15
Basic & Delivery Refresher Training
September 15
Propane Cylinder Filling
Ramada Grand Dakota Lodge
Dickinson
OSHA Label Requirements: What You Need to Know
Page 8 Propane Exceptional Energy
OSHA's revised label requirements went into effect on December 1, 2015. Distributors must ship containers bearing
labels that are compliant with the new HCS requirements.
NPGA has received several inquiries regarding the company identification component of the labeling
requirement. Specifically, OSHA requires the Name, Address and Telephone Number of the "chemical manufacturer,
importer or other responsible party."
OSHA defines responsible party to be "someone who can provide additional information on the hazardous chemical and
appropriate emergency procedures, if necessary." While a propane marketer can be considered the responsible party, the
Name, Address and Telephone Number of another entity may also be used instead to satisfy the requirement such as an
emergency response company hired by the marketer to provide such information.
NPGA's Director of Regulatory Affairs briefed the Distributors Section on the updated OSHA labeling
requirements. Sarah Reboli answered lingering questions regarding how the new labeling regulations are being
implemented. A major takeaway from this discussion is that labels must have the following six components:
1. Product Name - "Liquefied Petroleum Gas or Propane"
2. Signal Word - "Danger"
3. Hazard Statement - "Extremely Flammable Gas"
4. Precautionary Statement
5. Pictograms
6. Contact Information
Additionally, NPGA developed "5 Things to Know
About the OSHA HCS 2012 Regulation" to
provide further clarification:
1. The Hazard Communication Standard
(HCS) 2012 updates four elements of
OSHA's HCS requirements, including
written hazard communication programs at
the workplace, employee training, safety
data sheets and labels.
2. HCS 2012 does not expand the scope of
containers that must be labeled. If it had an
OSHA label prior to HCS 2012 regulation,
it must have a HCS 2012 label today.
3. HCS 2012 requires more specific
information on labels than previously
required and changes how that information
is displayed.
4. HCS 2012 is an OSHA regulation
applicable to the workplace environment
and is enforceable by OSHA only. It does
not regulate transportation or involve DOT
regulations.
5. The compliance deadline for HCS 2012
labels was Dec. 1, 2015.
While there is likely to be ongoing confusion as
these are regulations take effect, Sarah is available
to explain many of the compliance
requirements. Please contact her at:
Page 9 February 2016
EMC has a wide variety of safety resources that are
offered to both policy holders and non-policy holders
alike. Our loss control team provides a broad array of
technical expertise, industry specific resources, and
practical solutions. A preview of the loss control
resources provided are listed below or at our website at
http://www.emcins.com/LossControl/index.aspx.
Newsletter – Check out our Loss Control Insights
newsletter for general loss control information, or try
one of our newsletters tailored for schools, local
governments, and petroleum marketers. http://
www.emcins.com/losscontrol/insights-d/
newsletters.aspx
Tech Sheets – Get short to-the-point documents that
provide detailed information on industry specific topics
and individual hazards. Great for safety meetings or
annual newsletters.
Loss Prevention Information Manual – Need help
developing a written or formal program? Our collection
of in-depth documents fully outlines a variety of topics
such as hot work, fleet safety, and many more.
EMC’s Loss Control Resources
Loss Control Forms – Download our fillable PDF forms,
which include accident investigation, leak checks, Pre/Post
Inspection forms, and many more.
Planning and Protection – EMC offers an assortment of
tools for planning and protection including employment
practices liability tools, disaster planning tools, and
ergonomics.
Policy Holder’s Advantage – Current Policy holder’s gain
additional access to our online library of which contains
interactive training and safety videos! More specifically,
this library holds 300 training videos, over 50 training
modules, and interactive quizzes. This is in addition to
onsite visits and direct communications with a loss control
representative.
For additional information, contact
Page 10 Propane Exceptional Energy
2015 Sales of Propane Survey
The Sales of Propane survey is
conducted annually. Retail
marketers are eligible to
participate in this survey. A
retail marketer is a person
engaged primarily in the sale of odorized propane
to the ultimate consumer or to retail dispensers.
You will receive, in the mail, a 2015 sales of
propane survey from the American Petroleum
Institute. The results of this survey are used to
calculate the rebates dollars for North Dakota.
These rebates are administered by the Propane
Education & Research Council (PERC). Your
association has been using rebate dollars to
reduce Certified Employee and Training
Program, Hazardous Materials and Refresher
registration fees to $125 per class.
Return your survey promptly to help keep your
earned dollars in the state of North Dakota.
Hi, propane professionals — we've got a handful of questions for you:
1. Have you ever had trouble attracting or retaining quality staff?
2. Could you or your team benefit from proven sales training and techniques?
3. Are you tired of having your sales figures tied to the weather?
If you said yes, take a minute to sign up for PERC's Marketer Momentum newsletter — and start strengthening your business
today.
Recently, we've seen what happens when winter
weather is less than cooperative for propane retailers.
Having well-trained sales staff can give you a leg up
when times are tough.
And you can think of Marketer Momentum, our
quarterly Marketer Technology & Sales Training
newsletter, as a cheat sheet for growing your gallons.
Signing up is a first step toward stronger sales
performance — and understanding how your business
can branch out into new markets.
That sound like something you're interested in? Then sign up to get the Marketer Momentum newsletter today.
Thanks,
Pat Hyland
Director of Industry Programs