House Panel Approves Study Of Community Propane Systems

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The House Energy & Commerce Committee April 27 approved an amendment to H.S. 5050, the Pipeline Safety Act of 2016, to include a study of regulations affecting propane jurisdictional systems, reports the National Propane Gas Association (NPGA). The amendment, offered by committee chairman Fred Upton (R-Mich.) and ranking member Frank Pallone (D-N.J.), was approved by a voice vote and included in the passage of H.R. 5050.

NPGA observes that, 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. Therefore, small propane jurisdictional systems are subject to the same federal regulations as much larger gas distribution systems and utilities. These regulations are in addition to state and local codes, which are typically based on NFPA 58.

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

Recognizing the potentially onerous nature of the current regulations, Reps. Bob Latta (R-Ohio) and Peter Welch (D-Vt.) have worked on bipartisan language to have the Transportation Research Board examine the current network of federal, state, and local regulations that cover propane systems. The study will identify duplication and inefficiencies in 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, NPGA emphasizes, the legislation calls for the participation of the propane industry in conducting the study. Reps. Latta and Welch were successful in including the study in the amendment for H.R. 5050.

“I am grateful for the work done by Reps. Latta and Welch, chairman Upton, ranking member Pallone, and their staffs,” adds Roldan. “Providing clarity in the federal requirements benefits all consumers and we are looking forward to participating in the study.” H.R. 5050 will now be reconciled 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.

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