Despite Fewer Resources, NPGA Sees Opportunity in 2018

(December 15, 2017) — With the dearth of degree days over the past few years, it is a challenging time in the propane industry. Marketers are hopeful for some cold weather in the coming months to help make up for recent shortfalls. The National Propane Gas Association (NPGA) and state propane associations are affected as well, especially with the compounding of these challenges by the recent, and hopefully temporary, departure of Suburban Propane and Ferrellgas from membership rosters.

When BPN spoke with Rick Roldan, NPGA president and CEO, recently, he observed that the industry is experiencing some significant tailwinds as well. “With the right effort at the right time, we will be able to bring about some benefits that will dramatically impact industry members in a positive way in the years ahead,” he said.

“We have the most business-friendly White House and Congress in years,” Roldan explained. “We have to act fast to get agencies and legislators to make changes critical to lighten our load.” Further, it is refreshing for once to have government officials, such as some in the Department of Transportation (DOT), not only be receptive to NPGA proposals but also offer ideas that benefit members rather than imposing more regulatory burden.

“We’re working hard to expand the short-haul miles to as much as a 300-mile radius, and that would be a lynchpin reducing a lot of regulations. We’re going full bore on the Hill for a full exemption on the OSHA crane rule. It is a very fair argument that our crane operators don’t need the same training as workers operating large cranes on top of New York City buildings.” Roldan envisions a grass-roots campaign, similar to the one a little over a decade ago that eliminated the EPA Risk Management requirements. Another may be needed. However, he said he believes that the propane industry can be successful in getting what it asks for in the current federal environment.

As most in the propane industry are aware, Volkswagen is required to pay a $2.8 billion criminal fine for rigging diesel-powered vehicles to defraud government emissions tests. The Volkswagen Environmental Mitigation Trust Fund has been established to support actions that reduce NOx emissions. The amount of funds distributed will vary by state or territory, depending on the number of non-compliant Volkswagen vehicles registered there.

“What a great chance to tell our story,” Roldan exclaimed. “Propane has the best story on reduction of emissions.” Most state associations and state PERCs have been working with NPGA and the national PERC to seek a large share of the settlement dollars in order to put more propane-fueled buses on the road. “This should benefit the propane industry for many years.” For more details on the industry’s strategy for the Volkswagen settlement, visit http://bit.ly/2h0freb.

Roldan provided an NPGA update during the early-November PERC meeting in Florida. Shortly before the gathering, officers of NPGA and PERC had a three-hour joint meeting. Roldan described the forum as the best meeting of officers from the two organizations since PERC began 20 years ago. When asked what made this meeting stand out, he told BPN, “Every officer from both organizations was present, and there was slam-dunk consensus on the direction our organizations need to go.” Staff leaders of NPGA and PERC have also been meeting regularly to deliberate areas of common concern.

In the past, the two organizations recognized that with PERC authorized by statute, there was certain justification to keep the organizations separate because of their different missions. “But the better approach, especially when resources begin to shrink, is for NPGA, PERC, state associations, and state PERCs to integrate more and together put in a better performance for the overall industry.” Roldan added, PERC and NPGA have laid their strategic plans over each other and developed a plan for integrating the strategies. “There is a lot we can do better together.”

Roldan cited the Volkswagen settlement as one area where NPGA, PERC, and the states can work jointly for maximum benefit and to bring positive attention to propane. “You will be hearing a lot more about full-fuel cycle. That is the centerpiece of the differentiation between propane from other fuels. A redoubled effort from PERC, NPGA and state leaders [to ensure] this message penetrates the energy conversation will be a huge deal for propane.” —Pat Thornton