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Feature Articles

In-depth feature stories examining the trends, challenges and innovations shaping the propane and LPG industry.

  • Ferrellgas Acquires Companies, Expands Tennessee Footprint

    August 17, 2017 — Ferrellgas Partners LP (Overland Park, Kan.) recently announced the acquisition of two Tennessee propane retailers, Lindsey Propane and Sevier County Propane. The transactions are expected to be immediately accretive and will allow Ferrellgas to better serve customers in central and eastern Tennessee. Terms of the transactions were not disclosed. Located in Williamsport, Lindsey Propane offers commercial, industrial, agricultural, and residential propane services to customers in nine middle Tennessee counties. The company has been in business for more than 20 years. Sevier County Propane, in business for 25 years, is located in Sevierville and serves customers in the Knoxville area and eastern Tennessee. “For decades, Lindsey Propane and Sevier County Propane have been known for their commitment to home-town service, and we…
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  • PERC Seeks Comment on 2018 Budget, Approves Assessment Rate Increase

    At its meeting in Denver, July 11-12, 2017, the Propane Education & Research Council (PERC) approved an increase in the assessment to $0.005 per gallon of odorized propane, a hike of half of one-tenth of a cent per gallon from the current rate of $0.0045 per gallon, effective Oct. 1, 2017. The additional revenue is projected to be about $3.3 million for programs. The move to increase the assessment brings it to a maximum level allowed by the Propane Education and Research Act of 1996. The PERC assessment has been $.005 per gallon previously but was lowered to $.004 per gallon in 2010 when PERC had to halt spending on consumer education activities after the U.S. Department of Commerce determined that propane prices had exceeded…
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  • Propane Days 2017 Opened Lines of Communication with Lawmakers

    Can retail propane marketers have an effect on legislation that impacts the propane industry by visiting congressional offices in Washington, D.C.? It’s not a cheap trip, but for a number of marketers and other industry leaders who went to Propane Days June 19-21, 2017, it’s a mission they believe makes a difference and an investment they are willing to make for the good of the industry. The National Propane Gas Association (NPGA), which moved to Washington 15 years ago in order to focus more on legislative matters, has been inviting marketers to the capital since 2005 for days of visiting legislators and promoting the industry’s agenda. After years of holding “fly-ins” to try to stop legislation that would damage the industry, Propane Days was built…
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  • Ask Congress to Exempt the Propane Industry from OSHA’s Crane Rule, Deadline Aug. 18

    (Washington, DC) August 14, 2017 — The National Propane Gas Association (NPGA) today issued a Legislative Alert stating that a rule from the Occupational Safety and Health Administration (OSHA) would require the operators of cranes for propane tank deliveries to undergo a third-party certification every five years. This onerous rule has been delayed repeatedly since 2010; however, the NPGA is requesting a permanent exemption. Action Requested: The NPGA, along with grassroots efforts from propane industry members, can gather a bipartisan coalition of U.S. House Members to send a letter to OSHA urging for a complete exemption. Click http://bit.ly/2i0rPus to contact your Member of Congress. This request will take less than two minutes to complete. The deadline for Members of Congress to sign on to the…
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  • Propane Buses: Safely Bringing Students to School

    School buses fueled by propane autogas offer a wide range of benefits and are a gallon-growing opportunity for propane retailers. The top American school bus manufacturers—Blue Bird, IC, and Thomas Built—all sell propane autogas school buses. The Propane Education & Research Council (PERC) reports there are nearly 13,000 propane school buses operating in 700 school districts. These buses transport more than 700,000 students across North America. Propane now makes up about 45% of all non-diesel school buses used for pupil transportation. That’s about 675 million gallons of propane being consumed over the lifetime of the existing buses on the road. With more school districts looking to stretch budgets and make “greener” choices, opportunities for the propane bus market expansion are abundant. Highlighting the environmental and…
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  • Senate Committee Funds Clean Cities FY2018

    (Washington, DC) On July 20, 2017, the Senate Appropriations Committee included $28 million for the Department of Energy (DOE) Clean Cities program for FY 2018. While this represents a modest cut from the $34 million allocated to the program in FY 2016 and FY 2017, it is much better than the House bill, which only includes language supporting Clean Cities, but not a specific level of funding for the program. It also shows that the Senate has rejected the Trump Administration’s proposal to eliminate the program. Special thanks to Senators Lamar Alexander (R-TN) and Dianne Feinstein (D-CA), the leaders of the Senate Energy and Water Appropriations Subcommittee, who crafted the legislation, and for their ongoing support of Clean Cities initiatives. And special thanks to the…
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  • Rinnai Corp. To Build U.S. Manufacturing Facility For Tankless Water Heaters

    (Peachtree City, Ga.) August 4, 2017 – Rinnai Corporation, manufacturer of one of the top-selling brands of tankless gas water heaters in North America, announces it will be the first to manufacture tankless gas water heaters in North America. Rinnai America Corporation, a subsidiary of Rinnai Corporation, plans to build its first North American manufacturing facility in Griffin, Ga. The company intends to start its manufacturing and assembly operations in an existing factory in Griffin in April 2018 and then move these operations to a new 300,000 square foot facility that Rinnai will construct. Rinnai will produce both residential and commercial products in Griffin. TANKLESS LEADERSHIP AND SUPERIOR QUALITY “Rinnai America is bullish about building a factory in America and is exceptionally proud to show…
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  • Missouri School Bus Funding Opportunity

    (August 8, 2017) The Missouri Department of Natural Resources’ Air Pollution Control Program is expecting to receive a grant from the U.S. Environmental Protection Agency (EPA). The grant funding comes from a federal program called the Diesel Emission Reduction Act (DERA). The funding for this program is not part of the Volkswagen Settlement. Details about the process for awarding Volkswagen funds are still forthcoming. During the past nine years in Missouri, the Department of Natural Resources has conducted numerous DERA grant programs. This year, like the past two years, the Department plans to use the grant to fund a clean diesel early school bus replacement program. Owners of diesel school buses stationed and operating in Missouri are eligible to apply for funding. If selected, awardees…
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  • Missouri Taxation of Propane As Motor Fuel Amended

    (Jefferson City, Mo.) June 28, 2017 — The Missouri legislature has established a five-cent per gallon motor fuel tax on propane autogas used to propel motor vehicles, with an increase to seventeen cents per gallon by January 1, 2025. The bill was signed into law June 28, 2017, by Missouri Governor Eric Greitens. Owners and operators of propane-fueled vehicles may continue to apply for and use alternative fuel decals in lieu of paying the motor fuel tax. If the owner or operator of a propane-fueled vehicle bearing an alternative fuel decal refuels at an unattended propane refueling station at which the motor fuel tax is collected at the point of sale, such owner or operator shall not be eligible for a refund of such tax…
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  • Enterprise, Navigator to Jointly Develop Ethylene Export Facility

    As reported in the July 31, 2017 issue of BPN’s Weekly Propane Newsletter (WPN), Enterprise Products Partners LP (Houston) and Navigator Holdings Ltd. (London) have signed an agreement to jointly develop an ethylene marine export terminal on the Houston Ship Channel. Enterprise would manage construction, operations, and commercial activities of the proposed terminal, which would be located at Enterprise’s Morgan’s Point complex. Morgan’s Point has a 45-ft draft and includes Enterprise’s ethane marine export terminal. Navigator has extensive experience with ethylene shipping through its fleet of 14, that provide a virtual pipeline to deliver product to consumers. Formation of a 50-50 joint venture to build, own, and operate the terminal is subject to the negotiation and execution of definitive agreements and approval by the respective…
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  • Energy Distribution Partners (EDP) Acquires Ohio Propane Company

    (Chicago, Ill.) August 2, 2017 — CC Propane Company, a privately owned company based in Wapakoneta, Ohio, has been purchased by Chicago, Illinois-based Energy Distribution Partners (EDP). CC Propane provides propane and propane equipment to residential, commercial, and agricultural customers across West Central Ohio. Tom Knauff, Energy Distribution Partners CEO, stated, “We are pleased to
welcome CC Propane to the EDP family of companies. The addition of CC Propane brings the number of EDP-owned operations in Ohio to five, expanding our presence in the state. The company will retain its name and local decision-making for customers, a strategy EDP follows with each transaction.” Jay and Shelli Sweede have owned CC Propane since 2005. With a combined 58 years’ experience in the propane industry, the Sweedes have…
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  • Alternative Fuel Tax Extender Legislation Introduced in House

    Washington, DC (July 27, 2017) — The National Propane Gas Association (NPGA) reports that a bipartisan group of U.S. representatives has introduced H.R. 3264, a bill that would extend several of the expired tax extenders. For the propane industry, the bill includes a five-year extension of the alternative fuel tax credit. The legislative effort to retain the credit is being led by Reps. Diane Black (R-Tenn.), Ron Kind (D-Wis.), David Valadao (R-Calif.), and Jim Costa (D-Calif.).
The credit expired at the end of 2016 and has not been renewed. Under H.R. 3264, the credit would be $0.50/ gasoline gallon equivalent (GGE) of propane for 2017 and 2018, the same amount as 2016. In 2019, the alternative fuel tax credit would decline to $0.37/GGE, which is 75%…
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