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Water Heater Rule Delayed These Proclamations raised the duty on
On Thursday, February 20th, the Department aluminum and certain aluminum-derivative products
of Energy (DOE) issued a Final Rule delaying the effec- to 25%; eliminated the negotiated country-specific
tive date for its Final Rule raising efficiency standards exceptions, effective March 12, 2025; eliminated the
for gas fired tankless water heaters. The DOE’s prior process through which businesses could seek exclu-
Final Rule, issued on December 26th, 2024, is now sions from the tariffs for certain products, and provid-
delayed until March 21st, 2025. NPGA, along with ed for the phase-out of previously-granted exclusions;
coalition partners, filed suit against the prior Final and provided for an expansion of the scope of covered
Rule in January 2025. NPGA will take appropriate legal steel-derivative and aluminum-derivative products,
action in light of the postponement of this rule, and including but not limited to “containers for compressed
will continue to engage with the DOE to improve and or liquefied gas, of iron or steel.”
reform its regulatory program with respect to consum- Please see the fact sheet from NPGA’s tariffs
er appliances. counsel for more information. NPGA’s manufacturing

For questions or further information, please section is having ongoing conversations related to
contact NPGA General Counsel Benjamin Nussdorf.■ these tariffs and their impact. For more information
about steel, aluminum, and derivative products tariffs,
GRAIN DRY Act Reintroduced please contact NPGA President & CEO, Steve Kamins-
On Thursday, February 13, 2025, U.S. Repre- ki.■
sentatives Brad Finstad (R-MN-1) and Jim Costa (D-CA- Remember: Target Commercial Fuel Oil Customers
21) reintroduced the Growing Rural Ag Infrastructure
Needs to Deliver Rising Yields (GRAIN DRY) Act. This Similar to residential buildings, space heating
legislation would expand farmers’ access to low-inter- is the most energy intensive application in the majority
est loans through the U.S. Department of Agriculture’s of commercial structures too. In the U.S., space heating
Farm Storage Facility Loan Program for the purposes accounts for 32% of all energy consumed by commer-
of additional propane storage. As farmers face lower cial buildings. However, too many commercial buildings
commodity prices and higher costs, it is critical that still rely on antiquated residual fuel oil systems for
they have another investment pathway for addressing space heating purposes. Across the country, commer-
their energy storage needs. cial structures consumed 428,000 barrels of residual
fuel oil (e.g., No. 5, No. 6) in 2023. Consumption was
To read the legislation, click here. To read highest among states located in the Northeast, with
Congressman Finstad’s press release, including NPGA’s New York, New Hampshire, Maine, Connecticut, and
comments, click HERE. To read Congressman Costa’s Massachusetts the top five states for residual fuel oil
press release, click HERE. If you have any questions consumption in commercial buildings.
about this legislation, please reach out to Rhett John-
son, NPGA’s Senior Manager of Legislative Affairs.■ Propane marketers should engage these cus-
tomers and explain the many environmental and eco-
Steel, Aluminum, and Derivative Products Tariffs nomic benefits of switching to propane, which include
Since the first Trump administration, the lower fuel costs, higher efficiency heating systems, and
United States has maintained duties on imported steel a reduction in emissions of criteria air pollutants and
and aluminum, and certain imported steel-derivative greenhouse gases.
and aluminum-derivative products, under section 232 Commercial propane accounts represent the
of the Trade Expansion Act of 1962. Prior to February second most important end-use sector in terms of
2025, section 232 duties were 25% for imported steel gallons sold, representing 22% of fuel sold in 2023. For
and certain steel-derivative products, and 10% for additional materials on commercial propane applica-
imported aluminum and certain aluminum-derivative tions, visit the Commercial Buildings & Construction
products. In late February, President Trump issued section on PERC’s website. For more information, con-
Proclamations 10895 and 10896 related to aluminum tact NPGA’s Director of State Affairs, Jacob Peterson.■
and steel tariffs, respectively.

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