Page 5 - nov-dec 2019

2019 Q4 90-Day Criticals

fY 2020 aPProPriations requests Hours of service ProPosal
ISSUE ISSUE
Appropriations requests for research, development, In response to significant stakeholder outreach, the Federal
and demonstration projects through the Department Motor Carrier Safety Administration (FMCSA) proposed several
of Energy provide a legislative opportunity to drive modifications to drivers’ hours of service requirements. Among
innovation and growth for the propane industry for the modifications, FMCSA proposed expanding the Short-
years to come. This year, NPGA staff collaborated Haul Operation maximum radius from 100 to 150 air-miles,
with association members and Congressional and extending the maximum on-duty time from 12 to 14 hours.
stakeholders to draft and submit requests for vehicle NPGA has strongly encouraged FMCSA to update the short-haul
engine technology and combined heat and power operation regulation based on the modern highway infrastructure
systems. system and vehicle improvements. FMCSA also proposed other
ACTION modifications including changes to the adverse driving conditions
NPGA submitted requests with more than a dozen provision; when long-haul drivers must take a 30 minute rest break;
House and Senate Appropriations Members for the how long-haul drivers split off-duty time; and the creation of a new
FY 2020 Energy and Water Bill. Both the House and split duty provision to permit a ‘pause’ in on-duty time.
Senate Energy and Water versions include language ACTION
for propane. Although there is just a mention of NPGA is soliciting feedback from members on the impact of the
propane in House report language, the Energy & proposal to operational efficiency as well as drivers’ opinions and
Water appropriations bill, which passed the Senate concerns. NPGA is strongly advocating in support of the short-haul
Appropriations Committee, includes specific report operation modification because it presents significant advantages
language in support of advancing propane R&D at to improve local and regional deliveries.
the Department of Energy. OUTLOOK
OUTLOOK FMCSA is actively engaging stakeholders to collect data and
FY 2020 Appropriations negotiations between the information on the benefits and potential challenges presented
House and Senate will come to a close in the coming by the proposed modifications. The agency intends to expedite
weeks. NPGA continues to support the Senate finalization of the rulemaking with some or all the proposed
report language and is currently working with House modifications. NPGA is participating in the rulemaking process to
appropriators to recede to the Senate position in a emphasize the advantages of the proposal to the propane industry
final spending bill. without jeopardizing the industry’s commitment to safety.

Winter PreParations

ISSUE
With a potentially complicated harvest and crop drying season and ever more difficulty in predicting winter forecasts,
the propane industry is preparing for uncertainty in supply and demand this winter. Since 2014, NPGA has improved
information sharing within the industry to prepare for consumer demand. We are also improving engagement with
policymakers at the state and federal level to respond to disruptions in infrastructure.
ACTION
NPGA continues to build on relationships with the U.S. Department of Transportation (DOT) and the National
Association of State Energy Officials (NASEO), which last year issued revised guidance on emergency declarations
and waivers (available at www.npga.org). We continue to grow relationships with state DOT and energy officials to
facilitate regular communication and coordination to prepare for weather events ahead of emergencies throughout the
year. Further, NPGA has deployed the Propane Logistics Analysis Network tool for marketers to maximize hours of
service, available to all industry members via the NPGAction app or https://plan.npga.org.
OUTLOOK
Consistent warm weather in the Midwest is helping corn and soybean crops to reach full growth despite the wet spring.
The trending warm weather increases the likelihood of a late harvest, but the crop volume at harvest and the volume
of propane needed to dry it are still unclear. NPGA is partnering with PERC and state/regional associations to
distribute a new crop drying tool PERC is developing to anticipate drying needs by crop in each state. NPGA’s Supply
and Logistics Response Team will continue its efforts using an “Early Warning Network” of marketers, transportation
providers, propane wholesalers, state/regional associations, and industry experts to communicate logistical issues as
they develop so NPGA staff can respond accordingly, including requesting assistance from government entities.

5 Alabama Propane Gas Association | November / December 2019