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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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