President Obama has signed into law a bill making it easier for Americans to use propane autogas. Included in the extension of the U.S. highway bill is an excise tax equalization provision that permanently reduces the tax rate on autogas and levels the playing field for all alternative fuels, notes the National Propane Gas Association (NPGA). Highway use propane produces 72% of the energy output of gasoline, but was taxed at the same 18.3 cents per gallon rate.
U.S. propane stocks the week ended Aug. 7 jumped 2.4 MMbbl to reach 92.8 MMbbl, according to the Energy Information Administration’s (EIA) Aug. 12 “This Week in Petroleum” report. As of the last reporting period, volumes stood 22.5 MMbbl, or 32%, higher than a year ago. Nearly all of the overall inventory gain was in the Gulf Coast, which saw a 2.5-MMbbl increase. The Rocky Mountain/West Coast region stepped up just 0.2 MMbbl, while the East Coast declined 0.2 MMbbl and the Midwest remained unchanged.
U.S. propane stocks gained another 1.8 MMbbl the week ended July 24 to rise to 89.4 MMbbl, according to the Energy Information Administration (EIA) in its July 29 “This Week in Petroleum” report. As of
…AGA Systems LLC (Kaysville, Utah) is offering a new bi-fuel/propane conversion system for the General Motors direct-injection 5.3-liter engine. The DuraDrive DI-LPG uses the same technology that AGA Systems developed for its Environmental Protection Agency-certified CNG system for the 5.3-liter power plant. The propane system is designed to operate on the 2014 and 2015 Chevrolet Silverado and GMC Sierra pickup trucks, as well as Tahoe, Suburban, and Yukon sport utility vehicles…
Southcross Energy Partners LP (Dallas, Texas) has completed a 60,000-bbld Y-grade pipeline connecting its Woodsboro, Texas processing facility to Southcross Holdings LP’s 63,000-bbld Robstown fractionator near Corpus Christi, Texas. The company has also completed a 20,000-bbld propane pipeline from its Bonnie View fractionator to the Corpus Christi area for delivery to end-use customers.

 

Meeting for the first time since the end of a restriction on its consumer education activities, the Propane Education & Research Council (PERC) has formed a task force to develop a comprehensive communications strategy designed “to inform and educate the public about safety and other issues associated with the use of propane,” a priority of the Propane Education and Research Act of 1996, the legislation that created PERC.
Combined energy legislation introduced in the U.S. Senate, the Offshore Production and Energizing National Security Act (OPENS Act), would lift the ban on crude oil exports, provide for revenue sharing in the Alaska Outer Continental Shelf (OCS), and increase access to additional resources by requiring a minimum of three lease sales in each of the Beaufort, Chukchi, and Cook Inlet planning areas during any five-year period.
Total housing starts expanded 9.8% month over month in June, reaching a 1.174 million annual starts pace, which was led by a surge in multifamily development, the National Association of Builders (NAHB) reports. Single-family starts were effectively flat, recording a 0.9% monthly decline to a 685,000 seasonally adjusted annual rate, but were up 14.7% year over year.
Enterprise Products Partners LP said in July that it had executed a long-term agreement for incremental ethane transportation capacity on its Aegis pipeline. With the agreement, total capacity commitments for Aegis will ramp up over the next four years to more than 300,000 bbld.
The Independent Petroleum Association of America (IPAA) is challenging the Obama administration’s deal with the Iranian government over its nuclear program, noting the agreement includes provisions that will soon lift global sanctions on Iranian oil sales. Reports, confirmed by Iranian officials, have surfaced that Iran intends to double its crude oil exports soon after sanctions are lifted, which could lead to about 1 MMbbld of additional crude entering the world market.
Enterprise Products Partners LP (Houston) said in July 9 had launched a series of projects to convert and expand segments of its petrochemical pipeline network to increase throughput for polymer-grade propylene (PGP) and enhance system flexibility and reliability. The company’s North Dean pipeline will be converted from refinery-grade propylene (RGP) service to PGP service. The conversion is scheduled for completion in January 2017.
West Virginia Gov. Earl Ray Tomblin has formed the West Virginia Commission on Oil and Natural Gas Industry Safety through an executive order. The commission will be chaired by the governor or his designee and includes secretaries of the departments of Environmental Protection, Commerce, Transportation, and Military Affairs and Public Safety. The commission also includes 10 industry and labor representatives and four legislators.
Driven in part by production from the Marcellus and other shale plays, natural gas has surpassed coal as the leading fuel source for U.S. electricity generation. And now a West Virginia University-led study suggests there’s more to come underneath the Marcellus.
School districts across the nation are analyzing how they purchase, service, and fuel their bus fleets to make the best economic decisions for their communities, reports Blue Bird Corp. (Fort Valley, Ga.). By studying total ownership costs—for the life of the bus—school districts can make a more informed decision on how to manage their lifetime fleet expenses.
Canadian underground propane inventories in June climbed 6.8% to post a month-over-month increase of 87.0 Mcm, according to the National Energy Board (NEB). As of July 1, stocks stood at 1368.6 Mcm, the equivalent of 8.6 MMbbl. Compared to a year earlier, volumes were higher by a sharp 30.7%, advancing 321.2 Mcm.
Westport Innovations Inc. (Vancouver, B.C.) said July 7 it will begin offering dedicated, liquid propane fuel systems for 2016 Ford 5.0-liter F-150 pickup trucks. The new system will be in addition to Westport’s CNG package for the Ford F-150. Both fuel option packages are part of the company’s WiNG Power System and are expected to be certified by the Environmental Protection Agency and the California Air Resources Board.
Forty-five U.S. Senate Democrats have released a letter to all 50 state governors requesting their comments on national energy policy. The senators outlined their priorities for a national energy policy as investing in clean energy, empowering consumers, modernizing infrastructure, cutting carbon pollution and waste, and investing in research and development.
Virginia Clean Cities is commending Virginia Gov. Terry McAuliffe for increasing access to funds to help accelerate the conversion of public-sector fleets to alternative fuel vehicles in areas with some of the highest air quality issues in the state. At its June meeting, the Commonwealth Transportation Board (CTB) approved expanding access to the Virginia Alternative Fuel Vehicles Program to local governments.
Independent Petroleum Association of America (IPAA) president and CEO Barry Russell has sent a letter to President Obama in support of efforts to lift the 1970s-era restrictions on exporting surpluses of U.S. crude oil to the global marketplace. In the letter, Russell outlined how repealing the 40-year-old crude exports ban would benefit American consumers, businesses, and national security.
Delaware Gov. Jack Markell and the state’s Department of Natural Resources and Environmental Control have introduced the Clean Transportation Incentive Program. With $2.7 million in funding initially available, the program includes three rebate programs for purchasing passenger vehicles, tractor trailer trucks, and electric vehicle charging equipment, as well as two competitive grant programs that provide financial incentives for the development of alternative fueling infrastructure.
The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) has filed comments in response to the U.S. Department of Energy’s (DOE) notice of proposed rulemaking on energy conservation standards for residential furnaces (80 Fed. Reg. 13,120). AHRI is objecting to a proposed revised minimum 92% AFUE standard for non-weatherized and mobile home gas furnaces.
A provision sponsored by U.S. Rep. Todd Young (R-Ind.) that would provide excise tax parity for on-highway propane and liquefied natural gas has been passed in the U.S. House of Representatives. The provision is included in H.R. 3038, a five-month extension of the highway bill. The bipartisan provision ensures that excise taxes are levied at a rate consistent with propane and LNG’s energy output relative to gasoline and diesel.