10 Questions with Stephen Kaminski, President & CEO, National Propane Gas Association
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Roughly 75% of NPGA’s members have fewer than 100 employees and are considered small businesses. How does the association view the challenges ahead for both propane companies and consumers? How does the association engage on critical issues such as Energy Choice Laws and forced electrification? How is Cap-and-Trade impacting the propane industry and what are some of the industry’s biggest opportunities? Is renewable propane really a viable pathway into energy transition and what about offsetting fossil propane’s carbon footprint by utilizing credits?
In this interview we explore these issues and more.
Q&A Interview
AvocaDoe's original produce stand, c. 1958
Tell us about the NPGA’s view on energy transition and the place propane has in the move toward clearer burning fuels.
NPGA and its members share the goal of reducing emissions from propane, but propane plays an important role in the decarbonization of the economy, such as displacing diesel fuel in fleets such as school buses and as fuel for equipment at ports. Propane is a clean, methane-free fuel with zero ozone depletion potential, and which has been approved as a clean fuel by the Clean Air Act. Further, according to the EPA, propane has a source-site rate of 1.01, equivalent to electricity produced by solar and wind power. NPGA member companies are committing millions of dollars annually on research and development of technologies in these efforts to reduce emissions and provide a low-carbon future for our industry. Working together, we are determined to support sound public policies that advance rapid decarbonization while ensuring a safe, reliable, and resilient energy supply that provides the affordable energy so many of our families and businesses need.
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In a world that is rapidly pushing toward energy transition and where fossil fuels are increasingly coming under legislative pressure and public scrutiny, the National Propane Gas Association (NPGA) is the US’s national trade association for the propane industry with a membership of about 2,500 companies, and 36 state and regional associations that represent members in all 50 states. Membership in NPGA includes retail marketers of propane who deliver fuel to the end user, propane producers, transporters and wholesalers, manufacturers, and distributors of equipment, containers, and appliances. Propane fuels millions of installations nationwide for home and commercial space and water heating, cooking, outdoor living, and is used in agriculture, industrial processing, and as a clean air alternative engine fuel for both over-the-road vehicles and industrial lift trucks.
by Diane Miller, Global Director,
NGLs/LPG/Feedstocks, Business Development
1.
Stephen Kaminski:
The NPGA actively engages on initiatives affecting the propane industry and consumers of propane. From protecting propane furnaces from unreasonable regulations, to protecting American manufacturing of gas water heaters and boilers from misguided policies, NPGA actively engages with Congress, the US Department of Energy (DOE) numerous codes-making councils, and dozens of other policy-setting bodies. Frequently, NPGA will work in coalition with like-minded industries to amplify its positions and present a united front to ensure that consumers have broad access to reliable, resilient, and environmentally-and economically-friendly propane.
Stephen Kaminski:
On what type of industry initiatives does NPGA seek to engage?
2.
NPGA is leading the industry in regulatory agency engagement. NPGA comments extensively on regulatory priorities advanced by the DOE, the US Department of Transportations (DOT), the Environmental Protection Agency (EPA) and a dozen other federal regulator agencies as needed. With respect to the DOE and EPA, in just the past 18 months the NPGA has led and participated in coalitions designed to ensure continued consumer choice for furnaces, water heaters, cooktops, residential boilers, and commercial water heaters along with proposed sunsetting of the Energy Star labels on gas water heaters and boilers. NPGA supports enhanced efficiency, but the DOE and EPA have recently engaged in selective data mining, questionable analysis, and unreasonable regulations aimed at achieving a political objective rather than what is in the public’s best interest.
Stephen Kaminski:
How is NPGA engaged in regulatory action?
3.
We are. The propane industry – through NPGA and its allied 36 state and regional propane gas associations which cover all 50 states – supports energy choice laws to safeguard energy freedom and consumer choice. Energy choice laws are state preemption statutes that prevent local governments such as municipalities and counties from restricting access to an energy source simply based on the type of energy to be provided. In addition to local jurisdictions, energy choice laws can also be extended to states themselves, which provides another level of protection. Some states are now expanding energy choice protections to the end-use appliances, such as cooktops and furnaces, and equipment, such as engines, that use propane. The following 25 states have enacted energy choice laws: Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Missouri, Mississippi, Montana, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, West Virginia, and Wyoming. These 25 states represent 44% of propane gallons sold in the US.
Stephen Kaminski:
Are you continuing to see states adopt Energy Choice Laws?
4.
Yes. Over the past year, NPGA has worked with numerous congressional stakeholders to introduce and pass energy choice-related legislation. In March, with the help of NPGA, Ranking Member of the Senate Energy and Natural Resources Committee John Barrasso (R-WY) introduced the Natural Gas Appliances Standards Act of 2023 (S. 1043) which would prohibit the DOE from promulgating any rulemaking that could have the effect of outlawing the sale of a range of natural gas appliances.
In June, the House of Representatives voted on two bills that protect consumer choice for gas stoves. Congressman Kelly Armstrong’s (R-ND) Gas Stove Protection and Freedom Act (H.R. 1615) passed, with a bi-partisan vote 248-180, that if signed into law would prohibit the Consumer Protection Safety Commission from regulating gas stoves as a banned hazardous product. Congresswoman Debbie Lesko (R-AZ 08) led the second bill, Save Our Gas Stoves Act (H.R. 1640) which would limit the DOE’s ability to finalize their February 2023 supplemental notice of proposed rulemaking related to gas stoves as well as limit Doe’s ability to introduce similar regulations.
More recently, NPGA worked with Congressman Nick Langworthy (R-NY 23) to introduce the Energy Choice Act (H.R. 6089), that if signed into law would act as a national comprehensive energy choice preemption law prohibiting all state and local governments from limiting a consumer’s energy choice. The Energy Choice Act was introduced on October 27, 2023 and referred to the House Energy and Commerce Committee for consideration.
These pieces of legislation would be subject to a 60-vote threshold in the US Senate, so they will likely face stiff opposition given the current Democratic majority. Regardless, NPGA’s work shows Congress continues to have concerns with this Administration’s efforts to limit consumer’s ability to choose which energy fuel works best for their needs. This is amplified when an objective observer looks at the facts:
Stephen Kaminski:
Are you seeing Energy Choice legislation at the national level?
5.
Yes. Some groups advocate for electrification as the sole means of energy conservation and emissions reduction, despite substantial evidence supporting conventional combustibles and renewable fuels. For instance, National Renewable Energy Laboratory (NREL) and DOE data reveal that, when considering marginal emissions and broader emission scopes, conventional gas usage in many regions produces fewer GHG emissions than electricity for residential heating. Unfortunately, some code bodies like International Energy Conservation Code (IECC) and American Society of Heating Refrigerating and Air Conditioning Engineers (ASHRAE) allow cost analysis to only account for direct GHG emissions which are limited to on-site emissions, leading to misleading calculations in states with heavily coal-dependent electric grids like West Virginia, Missouri, Wyoming, and Kentucky. NPGA actively researches full scope emissions – which is the only fair means of assessment and is supported by the National Academy of Sciences – and submits code proposals to establish a balanced code that genuinely reduces carbon emissions, rather than promoting electrification. NPGA is part of a coalition appealing to the International Code Council (ICC) against anti-energy choice sentiments and actively participates in committees discussing various energy choice options.
Stephen Kaminski:
Is NPGA seeing anti-energy choice sentiments impact the building and residential codes sector and how is NPGA reacting, and are there examples of activities NPGA is tracking at the state level?
6.
Three States, California, Oregon, and Washington State, have active cap-and-trade/cap-and-invest programs. Under these carbon markets, applicable GHG emissions are capped, and covered entities, including fuel suppliers, must acquire allowances for their covered emissions. These policies artificially increase the prices for conventional heating fuels, including propane. It is early in the rulemaking process but New York’s budget for fiscal years 2023-2024 also lays the framework for a cap-and-invest program whereby total state GHG emissions would be capped, and emission allowances would be purchases by covered entities.
Stephen Kaminski:
How is Cap-and-Trade impacting the propane industry?
7.
Combined heat and power (CHP) and Autogas are two great examples of new technologies taking low-carbon propane into the future. Propane and renewable propane microgrids and CHP systems can provide clean, reliable, and affordable backup and primary power generation to individual homes and businesses, and communities of homes and businesses, in rural and urban areas. Where propane generators are used, these technologies can drastically reduce emissions. Pairing these technologies with renewable propane and other renewables sources, such as solar, can further reduce emissions.
There has been significant market growth in propane power generation in recent years, spurred by grid disruptions and resilience concerns. Hurricanes in the southeast, the deep freeze in Texas in 2021, and other natural disasters, such as wildfires, have caused widespread planned and unplanned power outages. The market has adapted to these scenarios with the increased use of diesel generators to meet energy demands during these grid disruptions. Propane can provide a clean and reliable alternative to diesel power generation.
Over the past several years, NPGA has worked with Congress to enact legislation to promote the use of propane-powered CHP and microgrids. Through recent infrastructure legislation – the Infrastructure Investment and Jobs Act and the Inflation Reduction Act – Congress passed legislation incentivizing consumers to adopt these technologies. Additionally, NPGA worked to promote the adoption and advancement of these technologies through the Department of Defense and the DOE.
NPGA and its members are proud of the role that propane and propane Autogas (Propane used as a transportation fuel) can play in reducing emissions now and in the future. Recognizing the role that propane plays in decarbonizing our energy future, various federal government agencies have funded tens of millions of dollars in grants for propane Autogas-powered engines and fueling infrastructure. These grands include the EPA Clean School Bus Program, the Federal Transit Administration (FTA) Grants for Buses and Bus Facilities Program (transit buses and fueling infrastructure) the Federal Housing Administration (FHA) Charging and Fueling Infrastructure Discretionary Grant Program (fueling infrastructure) and the EPA Diesel Emissions Reduction Act (buses, port equipment, and other propane powered engines). For example, in 2023, the FTA announced funding of over $44 million to awardees in Colorado, Minnesota, Mississippi, Oklahoma, South Dakota, Texas, and Ohio to purchase propane buses and install propane fueling infrastructure. The diverse recipients, ranging from major cities to rural communities to tribal nations, demonstrate that propane buses are an effective, reliable, and versatile transit solution in all types of communities throughout the nation.
Stephen Kaminski:
What are some of today’s biggest opportunities for the propane industry?
8.
Conventional propane has fewer CO2 emissions than the electric grid in a majority of states;
The US exports far more propane than it imports so energy choice amplifies America’s energy security;
Access to propane eases the strain on America’s overburdened electrical grid and ensures reliability and resiliency against blackouts (especially for critical infrastructure like hospitals, senior care centers, and military facilities) and;
On average propane is far more cost effective per unit of heat than electricity which is critical during this time of rampant inflation that is hitting American families so hard. The propane industry is committed to alleviating the “heat or eat” crisis faced by socioeconomically disadvantaged communities.
The New York State budget for fiscal year 2023-24, which was signed into law in May 2023, includes a provision that amends the state construction building code and prohibits the installation of conventional fuel equipment like propane in most newly constructed buildings beginning in 2026 for structures less than seven stories in height, and 2029 for all remaining applicable building stock. There are some code exemptions, including for commercial kitchens, laundromats, medical facilities, and manufacturing facilities.
In May 2023, the Affordable Heat Act became law in Vermont. The Affordable Heat Act instructs the state’s public utilities commission to create the framework for implementation of a Clean Heat Standard (CHS). Under CHS, obligated parties are legally required to reduce GHG emissions attributable to Vermont’s thermal sector. This is done by annually retiring certain amounts of clean heat credits. Clean heat credits can be retired through electrification of space and water heating equipment, among other things. The Vermont legislature needs to pass final authorizing legislation in January 2025 for the program to state operating.
In spring 2022, the Washington State Building Codes Council (SBCC) voted to require, with few exceptions, the installation of all-electric space and water heating equipment in new commercial and multi-family construction. In fall 2022, the SBCC voted to mandate the installation of heat pumps for space and water heating in new single-family homes and smaller multi-family buildings. Recently, SBCC amended its proposal, as they still want to achieve building electrification but do not want to run afoul of the Berkeley decision. The new proposal seeks to make gas buildings so expensive, from an energy compliance standpoint, that builders will just default to all-electric structures. Numerous states have adopted state energy and climate plans that recommend the electrification of residential and commercial buildings and many state legislators have introduced bills to advance building electrification efforts.
As for the Berkeley case, NPGA is certainly seeing an impact. The Ninth Circuit was correct in finding that state and municipality gas bans are preempted by, and in direct conflict with, the Federal Energy Policy & Conservation Act (EPCA). Numerous municipalities in the Ninth Circuit’s 9-state jurisdiction have rolled back their gas bans. This legal theory applies not just in California but throughout the country. Indeed, NPGA and our co-plaintiffs recently brought suit against NY State’s gas ban through the same counsel that represented the California Restaurant Association in successfully overturning the Berkeley, CA gas ban.
Renewable propane is not only part of the industry’s future, but it is here today! Renewable propane has the same great features as conventional propane – reliability, portability, power, and a favorable environmental profile – but with even lower carbon emissions when compared with other energy sources. NPGA’s friends at the Propane Education and Research Council (PERC) are working hard to spread the message to both producers and consumers that renewable propane is the fuel of the future. Renewable propane can be made from a variety of renewable feedstocks. The most common form or renewable propane today is a byproduct of renewable diesel and sustainable aviation fuel made primarily from plant and vegetable oils, animal fats, or used cooking oil. But more and more renewable propane is now being generated from the seed oil of the camelina plant, a cover crop that is completely waste-free. US fuel processors are making renewable propane today, and by 2050, renewable propane could meet half the world’s demand for propane, according to the World LPGas Association.
Stephen Kaminski:
Is renewable propane part of the industry’s future?
9.
But in the absence of adequate volumes of renewable propane to meet all downstream demand, producers of propane and others in the supply chain straight through to retailers can purchase carbon credits to offset the carbon footprint of traditional propane, and NPGA supports pricing transparency and is pleased that OPIS has launched its Carbon Offset NGL/LPG Index to better enable the industry to analyze pricing risk mitigation.
NPGA’s Propane Supply and Logistics Committee regularly engaged industry on issues affecting supply and logistics. Armed with the Committee’s broad expertise, NPGA engages with the US Environmental Information Administration (EIA), the Surface Transportation Board (STB), the Federal Motor Carrier Safety Administration (FMCSA), pipelines, Class 1 and short line railways, shippers, and transport trucking companies on supply and logistics matters to ensure sufficient inventories and access to propane across the country every day. The Propane Supply and Logistics Committee is optimistic for the winter of 2023-2024 due to a reduction in logistics risks and uncertainties, and record high supply of propane.
In February 2022 NPGA launched the ACE (Administrative Compliance Experts) program to get CDL drivers on the road quickly under FMCSA’s Entry Level Driver Regulations and 2,800 drivers from 400 propane companies in 45 states have used the ACE program to prepare for CDL or HME (hazardous materials certification) exams in the last 18 months. ACE has facilitated almost 2,000 Entry Level Driver submissions to FMCSA for the propane industry and is now expanding to serve other sectors of the on-road community.
Stephen Kaminski:
How does NPGA prepare and support its membership for challenges such as logistics in winter months, and the shortage of CDL drivers?
10.
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See NGL/LPG Pricing
Tap into OPIS expertise — Global LPG coverage from the trusted benchmark.
OPIS provides spot LPG/NGL pricing for the U.S., Europe and Asia, wholesale rack propane pricing, extensive LPG price history and both real-time and weekly LP market news. OPIS holds the LPG price benchmark for North America including the key Mt. Belvieu trading hub, which impacts global prices and markets.
Combined heat and power (CHP) and Autogas are two great examples of new technologies taking low-carbon propane into the future. Propane and renewable propane microgrids and CHP systems can provide clean, reliable, and affordable backup and primary power generation to individual homes and businesses, and communities of homes and businesses, in rural and urban areas. Where propane generators are used, these technologies can drastically reduce emissions. Pairing these technologies with renewable propane and other renewables sources, such as solar, can further reduce emissions.
There has been significant market growth in propane power generation in recent years, spurred by grid disruptions and resilience concerns. Hurricanes in the southeast, the deep freeze in Texas in 2021, and other natural disasters, such as wildfires, have caused widespread planned and unplanned power outages. The market has adapted to these scenarios with the increased use of diesel generators to meet energy demands during these grid disruptions. Propane can provide a clean and reliable alternative to diesel power generation.
Over the past several years, NPGA has worked with Congress to enact legislation to promote the use of propane-powered CHP and microgrids. Through recent infrastructure legislation – the Infrastructure Investment and Jobs Act and the Inflation Reduction Act – Congress passed legislation incentivizing consumers to adopt these technologies. Additionally, NPGA worked to promote the adoption and advancement of these technologies through the Department of Defense and the DOE.
NPGA and its members are proud of the role that propane and propane Autogas (Propane used as a transportation fuel) can play in reducing emissions now and in the future. Recognizing the role that propane plays in decarbonizing our energy future, various federal government agencies have funded tens of millions of dollars in grants for propane Autogas-powered engines and fueling infrastructure. These grands include the EPA Clean School Bus Program, the Federal Transit Administration (FTA) Grants for Buses and Bus Facilities Program (transit buses and fueling infrastructure) the Federal Housing Administration (FHA) Charging and Fueling Infrastructure Discretionary Grant Program (fueling infrastructure) and the EPA Diesel Emissions Reduction Act (buses, port equipment, and other propane powered engines). For example, in 2023, the FTA announced funding of over $44 million to awardees in Colorado, Minnesota, Mississippi, Oklahoma, South Dakota, Texas, and Ohio to purchase propane buses and install propane fueling infrastructure. The diverse recipients, ranging from major cities to rural communities to tribal nations, demonstrate that propane buses are an effective, reliable, and versatile transit solution in all types of communities throughout the nation.
Stephen Kaminski:
What are some of today’s biggest opportunities for the propane industry?
8.
Renewable propane is not only part of the industry’s future, but it is here today! Renewable propane has the same great features as conventional propane – reliability, portability, power, and a favorable environmental profile – but with even lower carbon emissions when compared with other energy sources. NPGA’s friends at the Propane Education and Research Council (PERC) are working hard to spread the message to both producers and consumers that renewable propane is the fuel of the future. Renewable propane can be made from a variety of renewable feedstocks. The most common form or renewable propane today is a byproduct of renewable diesel and sustainable aviation fuel made primarily from plant and vegetable oils, animal fats, or used cooking oil. But more and more renewable propane is now being generated from the seed oil of the camelina plant, a cover crop that is completely waste-free. US fuel processors are making renewable propane today, and by 2050, renewable propane could meet half the world’s demand for propane, according to the World LPGas Association.
Stephen Kaminski:
Is renewable propane part of the industry’s future?
9.
Three States, California, Oregon, and Washington State, have active cap-and-trade/cap-and-invest programs. Under these carbon markets, applicable GHG emissions are capped, and covered entities, including fuel suppliers, must acquire allowances for their covered emissions. These policies artificially increase the prices for conventional heating fuels, including propane. It is early in the rulemaking process but New York’s budget for fiscal years 2023-2024 also lays the framework for a cap-and-invest program whereby total state GHG emissions would be capped, and emission allowances would be purchases by covered entities.
Stephen Kaminski:
How is Cap-and-Trade impacting the propane industry?
7.
The New York State budget for fiscal year 2023-24, which was signed into law in May 2023, includes a provision that amends the state construction building code and prohibits the installation of conventional fuel equipment like propane in most newly constructed buildings beginning in 2026 for structures less than seven stories in height, and 2029 for all remaining applicable building stock. There are some code exemptions, including for commercial kitchens, laundromats, medical facilities, and manufacturing facilities.
In May 2023, the Affordable Heat Act became law in Vermont. The Affordable Heat Act instructs the state’s public utilities commission to create the framework for implementation of a Clean Heat Standard (CHS). Under CHS, obligated parties are legally required to reduce GHG emissions attributable to Vermont’s thermal sector. This is done by annually retiring certain amounts of clean heat credits. Clean heat credits can be retired through electrification of space and water heating equipment, among other things. The Vermont legislature needs to pass final authorizing legislation in January 2025 for the program to state operating.
Yes. Some groups advocate for electrification as the sole means of energy conservation and emissions reduction, despite substantial evidence supporting conventional combustibles and renewable fuels. For instance, National Renewable Energy Laboratory (NREL) and DOE data reveal that, when considering marginal emissions and broader emission scopes, conventional gas usage in many regions produces fewer GHG emissions than electricity for residential heating. Unfortunately, some code bodies like International Energy Conservation Code (IECC) and American Society of Heating Refrigerating and Air Conditioning Engineers (ASHRAE) allow cost analysis to only account for direct GHG emissions which are limited to on-site emissions, leading to misleading calculations in states with heavily coal-dependent electric grids like West Virginia, Missouri, Wyoming, and Kentucky. NPGA actively researches full scope emissions – which is the only fair means of assessment and is supported by the National Academy of Sciences – and submits code proposals to establish a balanced code that genuinely reduces carbon emissions, rather than promoting electrification. NPGA is part of a coalition appealing to the International Code Council (ICC) against anti-energy choice sentiments and actively participates in committees discussing various energy choice options.
Stephen Kaminski:
Is NPGA seeing anti-energy choice sentiments impact the building and residential codes sector and how is NPGA reacting, and are there examples of activities NPGA is tracking at the state level?
6.
In spring 2022, the Washington State Building Codes Council (SBCC) voted to require, with few exceptions, the installation of all-electric space and water heating equipment in new commercial and multi-family construction. In fall 2022, the SBCC voted to mandate the installation of heat pumps for space and water heating in new single-family homes and smaller multi-family buildings. Recently, SBCC amended its proposal, as they still want to achieve building electrification but do not want to run afoul of the Berkeley decision. The new proposal seeks to make gas buildings so expensive, from an energy compliance standpoint, that builders will just default to all-electric structures. Numerous states have adopted state energy and climate plans that recommend the electrification of residential and commercial buildings and many state legislators have introduced bills to advance building electrification efforts.
As for the Berkeley case, NPGA is certainly seeing an impact. The Ninth Circuit was correct in finding that state and municipality gas bans are preempted by, and in direct conflict with, the Federal Energy Policy & Conservation Act (EPCA). Numerous municipalities in the Ninth Circuit’s 9-state jurisdiction have rolled back their gas bans. This legal theory applies not just in California but throughout the country. Indeed, NPGA and our co-plaintiffs recently brought suit against NY State’s gas ban through the same counsel that represented the California Restaurant Association in successfully overturning the Berkeley, CA gas ban.
On average propane is far more cost effective per unit of heat than electricity which is critical during this time of rampant inflation that is hitting American families so hard. The propane industry is committed to alleviating the “heat or eat” crisis faced by socioeconomically disadvantaged communities.
Access to propane eases the strain on America’s overburdened electrical grid and ensures reliability and resiliency against blackouts (especially for critical infrastructure like hospitals, senior care centers, and military facilities) and;
The US exports far more propane than it imports so energy choice amplifies America’s energy security;
Conventional propane has fewer CO2 emissions than the electric grid in a majority of states;
Yes. Over the past year, NPGA has worked with numerous congressional stakeholders to introduce and pass energy choice-related legislation. In March, with the help of NPGA, Ranking Member of the Senate Energy and Natural Resources Committee John Barrasso (R-WY) introduced the Natural Gas Appliances Standards Act of 2023 (S. 1043) which would prohibit the DOE from promulgating any rulemaking that could have the effect of outlawing the sale of a range of natural gas appliances.
In June, the House of Representatives voted on two bills that protect consumer choice for gas stoves. Congressman Kelly Armstrong’s (R-ND) Gas Stove Protection and Freedom Act (H.R. 1615) passed, with a bi-partisan vote 248-180, that if signed into law would prohibit the Consumer Protection Safety Commission from regulating gas stoves as a banned hazardous product. Congresswoman Debbie Lesko (R-AZ 08) led the second bill, Save Our Gas Stoves Act (H.R. 1640) which would limit the DOE’s ability to finalize their February 2023 supplemental notice of proposed rulemaking related to gas stoves as well as limit Doe’s ability to introduce similar regulations.
More recently, NPGA worked with Congressman Nick Langworthy (R-NY 23) to introduce the Energy Choice Act (H.R. 6089), that if signed into law would act as a national comprehensive energy choice preemption law prohibiting all state and local governments from limiting a consumer’s energy choice. The Energy Choice Act was introduced on October 27, 2023 and referred to the House Energy and Commerce Committee for consideration.
These pieces of legislation would be subject to a 60-vote threshold in the US Senate, so they will likely face stiff opposition given the current Democratic majority. Regardless, NPGA’s work shows Congress continues to have concerns with this Administration’s efforts to limit consumer’s ability to choose which energy fuel works best for their needs. This is amplified when an objective observer looks at the facts:
Stephen Kaminski:
Are you seeing Energy Choice legislation at the national level?
5.
We are. The propane industry – through NPGA and its allied 36 state and regional propane gas associations which cover all 50 states – supports energy choice laws to safeguard energy freedom and consumer choice. Energy choice laws are state preemption statutes that prevent local governments such as municipalities and counties from restricting access to an energy source simply based on the type of energy to be provided. In addition to local jurisdictions, energy choice laws can also be extended to states themselves, which provides another level of protection. Some states are now expanding energy choice protections to the end-use appliances, such as cooktops and furnaces, and equipment, such as engines, that use propane. The following 25 states have enacted energy choice laws: Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Missouri, Mississippi, Montana, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, West Virginia, and Wyoming. These 25 states represent 44% of propane gallons sold in the US.
Stephen Kaminski:
Are you continuing to see states adopt Energy Choice Laws?
4.
NPGA is leading the industry in regulatory agency engagement. NPGA comments extensively on regulatory priorities advanced by the DOE, the US Department of Transportations (DOT), the Environmental Protection Agency (EPA) and a dozen other federal regulator agencies as needed. With respect to the DOE and EPA, in just the past 18 months the NPGA has led and participated in coalitions designed to ensure continued consumer choice for furnaces, water heaters, cooktops, residential boilers, and commercial water heaters along with proposed sunsetting of the Energy Star labels on gas water heaters and boilers. NPGA supports enhanced efficiency, but the DOE and EPA have recently engaged in selective data mining, questionable analysis, and unreasonable regulations aimed at achieving a political objective rather than what is in the public’s best interest.
Stephen Kaminski:
How is NPGA engaged in regulatory action?
3.
The NPGA actively engages on initiatives affecting the propane industry and consumers of propane. From protecting propane furnaces from unreasonable regulations, to protecting American manufacturing of gas water heaters and boilers from misguided policies, NPGA actively engages with Congress, the US Department of Energy (DOE) numerous codes-making councils, and dozens of other policy-setting bodies. Frequently, NPGA will work in coalition with like-minded industries to amplify its positions and present a united front to ensure that consumers have broad access to reliable, resilient, and environmentally-and economically-friendly propane.
Stephen Kaminski:
On what type of industry initiatives does NPGA seek to engage?
2.
NPGA and its members share the goal of reducing emissions from propane, but propane plays an important role in the decarbonization of the economy, such as displacing diesel fuel in fleets such as school buses and as fuel for equipment at ports. Propane is a clean, methane-free fuel with zero ozone depletion potential, and which has been approved as a clean fuel by the Clean Air Act. Further, according to the EPA, propane has a source-site rate of 1.01, equivalent to electricity produced by solar and wind power. NPGA member companies are committing millions of dollars annually on research and development of technologies in these efforts to reduce emissions and provide a low-carbon future for our industry. Working together, we are determined to support sound public policies that advance rapid decarbonization while ensuring a safe, reliable, and resilient energy supply that provides the affordable energy so many of our families and businesses need.
Stephen Kaminski:
Tell us about the NPGA’s view on energy transition and the place propane has in the move toward clearer burning fuels.
1.
NPGA’s Propane Supply and Logistics Committee regularly engaged industry on issues affecting supply and logistics. Armed with the Committee’s broad expertise, NPGA engages with the US Environmental Information Administration (EIA), the Surface Transportation Board (STB), the Federal Motor Carrier Safety Administration (FMCSA), pipelines, Class 1 and short line railways, shippers, and transport trucking companies on supply and logistics matters to ensure sufficient inventories and access to propane across the country every day. The Propane Supply and Logistics Committee is optimistic for the winter of 2023-2024 due to a reduction in logistics risks and uncertainties, and record high supply of propane.
In February 2022 NPGA launched the ACE (Administrative Compliance Experts) program to get CDL drivers on the road quickly under FMCSA’s Entry Level Driver Regulations and 2,800 drivers from 400 propane companies in 45 states have used the ACE program to prepare for CDL or HME (hazardous materials certification) exams in the last 18 months. ACE has facilitated almost 2,000 Entry Level Driver submissions to FMCSA for the propane industry and is now expanding to serve other sectors of the on-road community.
Stephen Kaminski:
How does NPGA prepare and support its membership for challenges such as logistics in winter months, and the shortage of CDL drivers?
10.
Roughly 75% of NPGA’s members have fewer than 100 employees and are considered small businesses. How does the association view the challenges ahead for both propane companies and consumers? How does the association engage on critical issues such as Energy Choice Laws and forced electrification? How is Cap-and-Trade impacting the propane industry and what are some of the industry’s biggest opportunities? Is renewable propane really a viable pathway into energy transition and what about offsetting fossil propane’s carbon footprint by utilizing credits?
In this interview we explore these issues and more.
AvocaDoe's original produce stand, c. 1958
In a world that is rapidly pushing toward energy transition and where fossil fuels are increasingly coming under legislative pressure and public scrutiny, the National Propane Gas Association (NPGA) is the US’s national trade association for the propane industry with a membership of about 2,500 companies, and 36 state and regional associations that represent members in all 50 states. Membership in NPGA includes retail marketers of propane who deliver fuel to the end user, propane producers, transporters and wholesalers, manufacturers, and distributors of equipment, containers, and appliances. Propane fuels millions of installations nationwide for home and commercial space and water heating, cooking, outdoor living, and is used in agriculture, industrial processing, and as a clean air alternative engine fuel for both over-the-road vehicles and industrial lift trucks.
10 Questions with Stephen Kaminski, President & CEO, National Propane Gas Association
by Diane Miller, Global Director,
NGLs/LPG/Feedstocks, Business Development
Q&A Interview
But in the absence of adequate volumes of renewable propane to meet all downstream demand, producers of propane and others in the supply chain straight through to retailers can purchase carbon credits to offset the carbon footprint of traditional propane, and NPGA supports pricing transparency and is pleased that OPIS has launched its Carbon Offset NGL/LPG Index to better enable the industry to analyze pricing risk mitigation.
OPIS, A Dow Jones Company
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10 Questions with Stephen Kaminski, President & CEO, National Propane Gas Association
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Roughly 75% of NPGA’s members have fewer than 100 employees and are considered small businesses. How does the association view the challenges ahead for both propane companies and consumers? How does the association engage on critical issues such as Energy Choice Laws and forced electrification? How is Cap-and-Trade impacting the propane industry and what are some of the industry’s biggest opportunities? Is renewable propane really a viable pathway into energy transition and what about offsetting fossil propane’s carbon footprint by utilizing credits?
In this interview we explore these issues and more.
Q&A Interview
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Tell us about the NPGA’s view on energy transition and the place propane has in the move toward clearer burning fuels.
NPGA and its members share the goal of reducing emissions from propane, but propane plays an important role in the decarbonization of the economy, such as displacing diesel fuel in fleets such as school buses and as fuel for equipment at ports. Propane is a clean, methane-free fuel with zero ozone depletion potential, and which has been approved as a clean fuel by the Clean Air Act. Further, according to the EPA, propane has a source-site rate of 1.01, equivalent to electricity produced by solar and wind power. NPGA member companies are committing millions of dollars annually on research and development of technologies in these efforts to reduce emissions and provide a low-carbon future for our industry. Working together, we are determined to support sound public policies that advance rapid decarbonization while ensuring a safe, reliable, and resilient energy supply that provides the affordable energy so many of our families and businesses need.
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In a world that is rapidly pushing toward energy transition and where fossil fuels are increasingly coming under legislative pressure and public scrutiny, the National Propane Gas Association (NPGA) is the US’s national trade association for the propane industry with a membership of about 2,500 companies, and 36 state and regional associations that represent members in all 50 states. Membership in NPGA includes retail marketers of propane who deliver fuel to the end user, propane producers, transporters and wholesalers, manufacturers, and distributors of equipment, containers, and appliances. Propane fuels millions of installations nationwide for home and commercial space and water heating, cooking, outdoor living, and is used in agriculture, industrial processing, and as a clean air alternative engine fuel for both over-the-road vehicles and industrial lift trucks.
by Diane Miller, Global Director,
NGLs/LPG/Feedstocks, Business Development
1.
Stephen Kaminski:
The NPGA actively engages on initiatives affecting the propane industry and consumers of propane. From protecting propane furnaces from unreasonable regulations, to protecting American manufacturing of gas water heaters and boilers from misguided policies, NPGA actively engages with Congress, the US Department of Energy (DOE) numerous codes-making councils, and dozens of other policy-setting bodies. Frequently, NPGA will work in coalition with like-minded industries to amplify its positions and present a united front to ensure that consumers have broad access to reliable, resilient, and environmentally-and economically-friendly propane.
Stephen Kaminski:
On what type of industry initiatives does NPGA seek to engage?
2.
NPGA is leading the industry in regulatory agency engagement. NPGA comments extensively on regulatory priorities advanced by the DOE, the US Department of Transportations (DOT), the Environmental Protection Agency (EPA) and a dozen other federal regulator agencies as needed. With respect to the DOE and EPA, in just the past 18 months the NPGA has led and participated in coalitions designed to ensure continued consumer choice for furnaces, water heaters, cooktops, residential boilers, and commercial water heaters along with proposed sunsetting of the Energy Star labels on gas water heaters and boilers. NPGA supports enhanced efficiency, but the DOE and EPA have recently engaged in selective data mining, questionable analysis, and unreasonable regulations aimed at achieving a political objective rather than what is in the public’s best interest.
Stephen Kaminski:
How is NPGA engaged in regulatory action?
3.
We are. The propane industry – through NPGA and its allied 36 state and regional propane gas associations which cover all 50 states – supports energy choice laws to safeguard energy freedom and consumer choice. Energy choice laws are state preemption statutes that prevent local governments such as municipalities and counties from restricting access to an energy source simply based on the type of energy to be provided. In addition to local jurisdictions, energy choice laws can also be extended to states themselves, which provides another level of protection. Some states are now expanding energy choice protections to the end-use appliances, such as cooktops and furnaces, and equipment, such as engines, that use propane. The following 25 states have enacted energy choice laws: Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Missouri, Mississippi, Montana, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, West Virginia, and Wyoming. These 25 states represent 44% of propane gallons sold in the US.
Stephen Kaminski:
Are you continuing to see states adopt Energy Choice Laws?
4.
Yes. Over the past year, NPGA has worked with numerous congressional stakeholders to introduce and pass energy choice-related legislation. In March, with the help of NPGA, Ranking Member of the Senate Energy and Natural Resources Committee John Barrasso (R-WY) introduced the Natural Gas Appliances Standards Act of 2023 (S. 1043) which would prohibit the DOE from promulgating any rulemaking that could have the effect of outlawing the sale of a range of natural gas appliances.
In June, the House of Representatives voted on two bills that protect consumer choice for gas stoves. Congressman Kelly Armstrong’s (R-ND) Gas Stove Protection and Freedom Act (H.R. 1615) passed, with a bi-partisan vote 248-180, that if signed into law would prohibit the Consumer Protection Safety Commission from regulating gas stoves as a banned hazardous product. Congresswoman Debbie Lesko (R-AZ 08) led the second bill, Save Our Gas Stoves Act (H.R. 1640) which would limit the DOE’s ability to finalize their February 2023 supplemental notice of proposed rulemaking related to gas stoves as well as limit Doe’s ability to introduce similar regulations.
More recently, NPGA worked with Congressman Nick Langworthy (R-NY 23) to introduce the Energy Choice Act (H.R. 6089), that if signed into law would act as a national comprehensive energy choice preemption law prohibiting all state and local governments from limiting a consumer’s energy choice. The Energy Choice Act was introduced on October 27, 2023 and referred to the House Energy and Commerce Committee for consideration.
These pieces of legislation would be subject to a 60-vote threshold in the US Senate, so they will likely face stiff opposition given the current Democratic majority. Regardless, NPGA’s work shows Congress continues to have concerns with this Administration’s efforts to limit consumer’s ability to choose which energy fuel works best for their needs. This is amplified when an objective observer looks at the facts:
Conventional propane has fewer CO2 emissions than the electric grid in a majority of states;
The US exports far more propane than it imports so energy choice amplifies America’s energy security;
Access to propane eases the strain on America’s overburdened electrical grid and ensures reliability and resiliency against blackouts (especially for critical infrastructure like hospitals, senior care centers, and military facilities) and;
On average propane is far more cost effective per unit of hear than electricity which is critical during these times of rampant inflation that is hitting American families so hard. The propane industry is committed to alleviating the “heat or eat” crisis faced by socioeconomically disadvantaged communities.
Stephen Kaminski:
Are you seeing Energy Choice legislation at the national level?
5.
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