Community Propane Systems Advanced by House Energy & Commerce Committee

WASHINGTON, DC (April 27, 2016) – The House Energy & Commerce Committee approved an amendment this week to H.R. 5050, the Pipeline Safety Act of 2016, to include a study on the regulations affecting propane jurisdictional systems. The manager’s amendment, offered by Chairman Fred Upton (R-MI) and Ranking Member Frank Pallone (D-NJ), was approved by a voice vote and included in the Committee’s passage of H.R. 5050.

Under the current regulatory framework, propane systems that serve more than 10 customers from a single tank, or more than two if the system crosses a public way, are subject to Pipeline & Hazardous Materials Safety Administration (PHMSA) jurisdiction and regulations. Propane jurisdictional systems are subject to the same federal regulations as much larger gas distribution systems and utilities. These regulations are in addition to the state and local codes, which are typically based on NPFA 58.

Rick Roldan, NPGA’s President and CEO said, “Simplifying the regulations gives all energy customers, not just propane customers, access to more options. Propane jurisdictional systems are safe, ease consumer adoption of propane, and allow our marketers to serve more customers with fewer trips. It has become increasingly clear that the current regulations needed to be reviewed for their effectives and applicability.”

Recognizing the potentially onerous nature of the current arrangement, Representatives Bob Latta (R-OH) and Peter Welch (D-VT) worked on bipartisan language to have the Transportation Research Board examine the current network of federal, state, and local regulations that affect these propane systems. This study will identify duplications and inefficiencies in these regulations and make recommendations on how to “enhance safety, reduce unnecessary costs, and streamline Federal requirements” associated with propane jurisdictional systems that serve 100 or fewer customers. Importantly, the legislation calls for the participation of the industry in conducting the study. Representatives Latta and Welch were successful in including this study into the manager’s amendment for H.R. 5050.

Roldan continued, “I am grateful for the work done by Representatives Latta and Welch, Chairman Upton, Ranking Member Pallone, and their staffs. Providing clarity in the Federal requirements benefits all consumers and we are looking forward to participating in the study.”

H.R. 5050 will now need to be combined with H.R. 4937, the PIPES Act of 2016, which was recently approved by the House Transportation & Infrastructure Committee, for consideration by the full House of Representatives.