July 2020 Texas Propane magazine

TexasPropane Texas Propane July 2020

Volume 76 No. 7

T H E M AG A Z I N E F O R T H E T E X A S P R O PA N E G A S A S S O C I AT I O N

Propane Industry’s Economic Impact Report Results Marketers Cash In on Texas Light Duty Vehicle Incentive Program PERC’s New Weather Safety Collections

Maintaining the Legacy You’ve Built

You have worked hard to build your business. Pinnacle Propane is committed to preserving your legacy.

Have you considered selling your propane business but concerns for your customers and employees are holding you back?

At Pinnacle Propane, our values of Customer Service, Integrity, and Safety emphasize providing the best possible experience for our customers and employees. We focus on providing local service to our customers and empowering our employees via competitive pay, a robust benefits package, and advancement opportunities.

As you think about next steps, let us work with you to develop a fair purchase plan and a seamless transition so that you can relax and enjoy the results of your efforts.

Bill Webb Senior Vice President Business Development 936-329-1440

Matt Terry Director Business Development 210-560-5418

Call us today for more information and a confidential assessment of your business.

About Pinnacle Propane: Pinnacle Propane is a leading propane distributor in the U.S. and is part of a global group of

LPG companies owned by SHV Energy, the largest dedicated global LPG distributor. Pinnacle Propaneʼs operations include bulk gas storage and delivery, cylinder filling and distribution, and community gas systems. Learn more at www.pinnaclepropane.com.

TexasPropane July 2020

8408 North IH 35 Austin, TX 78753 512-836-8620 or 800-325-7427 512-834-0758 fax E-mail: info@txpropane.com www.txpropane.com

T H E M AG A Z I N E F O R T H E T E X A S P R O PA N E G A S A S S O C I AT I O N

TPGA staff Bill Van Hoy Executive Director bvanhoy@txpropane.com Jackie Mason Education & Marketing Regulatory & Legislative Affairs jmason@txpropane.com Debbie Simpson Executive Assistant Membership Meeting Planner Publication Coordinator dsimpson@txpropane.com Propane Service Corporation

Debbie Simpson 800-392-0023 dsimpson@txpropane.com Publisher

Kim Scheberle Account Manager/Managing Editor Sail House Publishing 512-346-0892 kscheberle@austin.rr.com Joanne Pantaze Advertising Sales 512-273-2639 jpantaze@pvco.net Kiki Pantaze Art Director 512-924-7566 kpantaze@pvco.net

Features Propane Industry’s Economic Impact Report. . . . . . . . . . . . . . . . . . . . . . . . 6 Impact of the U.S. Propane Industry on the U.S. and Texas Economies Marketers Cashing in on No Destruction. . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Texas Light Duty Vehicle Incentive Program Walking the Walk: Texas Propane Marketers Converts Entire Fleet to Propane Autogas. . . 18 PERC’s New Weather Safety Collections Educate Consumers, Community & Media. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 5 Steps to Success with Nextdoor Business Posts. . . . . . . . . . . . . . . . . . 24

Departments Highlights from Headquarters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 TPGA Board of Directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Safety Talk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Fleet Safety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 People in Propane. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Inside the Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Classified Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Calendar of Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Index to Advertisers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Propane with Purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Highlights from Headquarters

Texas Plays Large Role in Economic Impact

AFFINITY PARTNERS

LEnergy ONE ST R Group NEW SUPPLIER MEMBER Alliance Energy Services Kansas City, MO

Bill Van Hoy TPGA Executive Director Every three years PERC releases an Impact of the US Consumer Propane Industry on U.S. and State Economics Report. Part of the latest Texas-specific data is included in this issue, which I think you will find very interesting.

The full report (138 pages) is available on the NPGA website under the Industry Impact tab.

Don’t forget to ask for assistance from ProCOT with the Texas Light Duty Vehicle Incentive Program, which is administered by TCEQ. This program is

not restricted to non-attainment or near non-attainment areas. The program is set to close on January 7, 2021, so don’t hesitate to reserve your incentive now before funds run out.

In this issue you will also find the story of a Texas marketer who has converted their entire fleet to propane autogas. Turn to page 18 to read Green’s Blue Flame Gas Company’s story and the benefits the company is reaping.

Now that it is summer and hurricane season has begun, PERC has new weather safety collections available to educate consumers, communities and the media. On their website (www.propane.com) you will find pertinent weather safety resources for staying safe before, during, and after floods, hurricanes, tornadoes and wildfires. These items are highlighted in this month’s issue.

2019-2020 TPGA Board of Directors President: Mark Peterson, Buster Brown Propane, 281-689-3946 President Elect: Josh McAdams, McAdams Propane, 936-598-7444 Secretary: Harris Baker, HBH Systems, 512-587-8347 Treasurer/Finance Chair: Allen Wells, Baygas, 281-332-2630 District 1 Director: David Collett, Gas and Supply, 903-780-2488 District 1 Alternate: Open District 2 Director: Josh McAdams, McAdams Propane, 936-598-7444 District 2 Alternate: Open District 3 Director: Jeremy Gentile, Hill Butane, 409-296-2001 District 3 Alternate: Open District 4 Director: Danny Meyers, Bellville Butane 979-865-2698 District 4 Alternate: Matt Peterson, Buster Brown Propane, 281-689-3946 District 5 Director: Ryan Tudyk, Howdy Propane Services, 361-771-1900 District 5 Alternate: Open District 6 Director: Omar Garcia, Mr. G Propane, 956-581-1063 District 6 Alternate: Open District 7 Director: Steve Smith, Smith Gas, 830-393-2533 District 7 Alternate: Sharon Seal, Bell Hydrogas, 210-533-7103 District 8 Director: Rodney Sladek, Fayetteville Propane, 979-836-7044 District 8 Alternate: Open District 9 Director: Bill McCullough, Butane Gas, 800-242-69010 District 9 Alternate: Brad Quisenberry, Gene Harris Petroleum, 888-336-4474 District 10 Director: Josh Nowlin, McCraw Propane, 9003-583-7481 District 10 Alternate: Chad Gregg, Enderby Gas, 940-482-3225 District 11 Director: Steve Adams, Hardwick LPG, 254-647-3402 District 11 Alternate: Open District 12 Director: Laci Jo Stone, Schneider Distributing, 800-901-9109 District 12 Alternate: Open District 13 Director: Open

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Texas Propane • www.txpropane.com

District 13 Alternate: Open District 14 Director: Terry Perez, Perez Propane, 512-318-9780 District 14 Alternate: Open District 15 Director: Don Heinrich, Slaton Gas, 806-828-6501 District 15 Alternate: Open District 16 Director: Open District 16 Alternate: Open Past President: Jack Walzel, Tri-Co Propane, 254-642-3885 Past President: John Walter, Schneider Distributing, 800-901-9109 Past President: Ben Wood, Northwest Propane, 972-247-6121 Past President: John Kelly, Kelly Propane, 940-586-1208 Vice President: Jeremy Gentile, Hill Butane, 409-296-2001 Vice President: Matt Terry, SHV-Pinnacle Propane, 210-560-5418 Vice President: Larry Baty, Cadenhead Servis Gas, 800-722-8654 Sr. Vice President: Don Heinrich, Slaton Gas, 806-828-6501 Sr. Vice President: Bill Collins, Collins Propane, 972-442-1078 Sr. Vice President: Joe Green, Green’s Blue Flame Gas, 713-462-5414 Assoc. Supplier Service Director: Rusty Walker, Marshall Young Insurance, 817-645-9155 Assoc. Supplier Service Alternate: Steve Johnson, Midstream Transportation, 512-787-3777 Assoc. Producer/Marketing Gas Director: Anna May Etheredge, Bishop Energy, 940-665-4672 Assoc. Producer/Marketing Gas Alternate: Jimmie Grant, Martin Gas Sales, 713-851-6155 Assoc. Manufacturer/Distributor Director: Jim Diehl, Squibb Taylor, 214-357-4591 Assoc. Manufacturer/Distributor Alternate: Joe Ezernack, Meeder Equipment, 903-877-9401 Assoc. At Large Director: J.R. Anderson, Gas Equipment Company, 972-406-3817 Assoc. At Large Alternate: John Becraft, Targa Resources, 817-416-7757 Nominating Chair: John Kelly, Kelly Propane 940-586-1208 NPGA Director: Chad Gray, Dixie LP Gas, 254-582-5359

HAS BEEN CANCELLED BY THE CITY OF AUSTIN TPGA has received final word from the City of Austin notifying us that the Austin Convention Center will not be allowed to host our 2020 Crossroads Expo due to the current COVID-19 restrictions.

The TPGA staff and I recognize this unprecedented situation affects the association and its member companies in many ways. The annual expo and conference brings together hundreds of passionate professionals and exhibitors every year to celebrate our industry. We look forward to planning a future event for our industry and will keep you posted.

Our team will be reaching out directly to exhibitors who have already purchased their exhibit space, golf, onsite program ads, any conference sponsorships, and to attendees who have pre-registered about providing full refunds for your fees.

If you have already made your hotel reservations with the Fairmont Hotel, contact them directly at 800-441-1414 to cancel your reservation at least 30 days prior to arrival to avoid charges.

We thank everyone who has supported this event and the Texas Propane Gas Association. We look forward to seeing you in the not so distant future.

Mark Peterson TPGA President

Bill Van Hoy TPGA Executive Director

For more information call us at 800-325-7427 or email us at info@txpropane.com

Feature

Propane Industry’s Economic Impact Report

Impact of the U.S. Consumer Propane Industry on U.S. and Texas Economies The Propane Education and Research Council (PERC) has commissioned ICF to perform what is now the fifth analysis of the impact of the odorized propane industry on the national and state economies. Every three years, PERC releases an Impact of the U.S. Consumer Propane Industry on U.S. and State Economies Report. This spring 2020, it released 2018 propane data as it takes a while to compile and analyze.

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Texas Propane • www.txpropane.com

and irrigation engines also accounted for year-on-year growth from the sector. Compared to 2015, which was one of the warmest years on record for the continental U.S., temperatures in 2018 were somewhat Featurecloser to the 20-year average. Temperatures in 20188 were 0.7 percent colder than the 20-year average, while in 2015 they were 5.8 percent warmer.

Table 1. Propane Production Consumption Propane Production andand Consumption

Million Gallons Domestic Propane/Propylene Production Propane Imports Propane Exports Propane Consumption Residential Commercial Industrial Agricultural Internal Combustion Cylinder Markets (Resell) Heating Degree Days (Annual) Mont Belvieu Propane Price (¢/gallon)

2009

2012

2015

2018

16,607 2,254 1,299 9,600 5,565 1,499 501 1,188 484 361 4,488

19,447 1,783 2,625 7,739 4,074 1,482 508 809 615 251 3,792

26,111 1,896 9,426 8,451 4,579 1,619 469 866 623 284 4,111

30,585 2,403 14,553 9,600 5,565 1,499 501 1,188 484 361 4,333

Change from 2015 to 2018 17.1% 26.8% 54.4% 10.4% 13.2% 18.9% -12.2% 37.2% -21.3% 25.0% 5.4%

84.06

100.15

45.70

87.80

92.1%

Source: ICF, EIA, API, ICF, Bloomberg, NOAA

Since 2015, the majority ofofthe generated the propane the national sector As with past releases, the focus thisadded report isvalue to estimate The by prevalence of propaneindustry demand intothe transportation the aggregatehas GDPshifted impacts further due to propane industry activity, highlights the mass appeal of this burning andadded cheap altereconomy downstream, with as the retail sector increasing theclean direct value well as the contribution of the odorized propane industry to emnative to traditional transportation fuels like gasoline and diesel. from $9.6 in 2015 $11.3 billion in 2018. wholesale sector experienced an fuel globployment andbillion wages both on the to national level and from a state- ThePropane is the third mostalso widely used transportation increase in the direct valueofadded to also the includes national though one was by-state perspective.

This iteration the study a economy, ally and ICF estimates thatthat in the U.S.proportionally nearly 155,000 vehicles supplemental assessment of capital spending the retail pro-value usedadded propaneinas2015 fuel in to 2018. smaller, with its increase from $1.6for billion direct $1.9 billion in 2018. pane sector and purchases of propane appliances by consumers.

The ICF reported odorized propane sales increased 13.6 perPropane supply remained the largest contributor of direct value by the propane sector, accounting Here we excerpt highlights of the study, along with Texas-specent between 2015 and 2018, from 8.3 billion gallons to 9.3 bilfor of thewhich sector’s direct added value similar 2015 oflevels.

In 2018, addedto cific 51 data.percent The full report, runs 138 pages, is available on in 2018, lion gallons.

Theto majority the increase can bethe attributed www.npga.orgvalue under the “Industry Impact” increases residential and commercial consumption, primarily economic attributed to the tab. retail propane industry wasin concentrated in the downstream – or Propane is third most widely used fuel in the U.S. by the numdriven by colder weather, with some growth in the number of retail – sector, where 42 percent of all direct value was created.

ber of households, second to propane heated households. electricity and natural gas. All The number of propane heated told, propane is used in roughly households increased by 4% Propane by the Numbers 50 million American homes, during this period, from 5.57 with 11.9 million households million in 2015 to 5.79 milFor state specific data, please consult the lion in 2018. Demand in other 7using propane for either space There are minor methodology and demand issues of sectoral propane demand from 2015 to CFcategorization study on www.npga.org or water heating, 5.8 million sectors increased by 73 million 2018 that may impact annual comparisons. of which depend on propane gallons.

8 defined byspace the National Atmospheric Administration degree day (HDD) is • Inand 2019, the U.S. exported more than(NOAA), a heating asAs their primary heating Oceanic Relative to 2015, the odor“a quantitative index demonstrated to reflect demand for energy to heat… houses and businesses.

Heating 16 billion gallons of propane. fuel. In addition, over 42 milized propane industry’s direct degree days are summations of negative differences between mean daily the 65°F base; lion homes use propane for outeconomicandimpact increased, • In 2018, the industry’s directthe contribution temperature ….

For more information, see NOAA’s explanation page at door grilling activities. from $40.5 billion in 2015 to to America’s GDP was $46.4 billion. http://www.cpc.ncep.noaa.gov/products/analysis_monitoring/cdus/degree_days/ddayexp.shtml In addition to the significant $46.4 billion in 2018 – a 14.7 • As of 2018, roughly 50 million American role propane plays in the resipercent increase in nominal homes use propane, with 11.9 million dential sector, the propane interms. Total employee count households using propane for either 3|P a g e dustry directly serves 1.1 million attributed to the odorized prospace or water heating. commercial accounts, 184,700 pane industry increased 5.8 • The retail propane industry is responsible industrial accounts, and 504,700 percent, while growth in confor nearly 57,000 jobs. agricultural accounts. Propane sumption and propane prices also continues to be the most supported increased sales for common internal combustion the retail propane sector. fuel for forklifts and has rapidly The increases were primarbecome the third most common ily attributable to growth in the fuel for school buses behind gasoline and diesel fuels. domestic component of the odorized propane market, a sector Transportation demand accounts for 9 percent of global prowhose value increased from $45.4 billion in 2015 to $54.6 billion pane consumption, while in the U.S. internal combustion dein 2018. These gains were supported by a 13.4 percent increase mand accounts for 10 percent of domestic retail consumption. in domestic propane/propylene production and a 13.6 percent July 2020 •

Texas Propane

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Impact of the U.S. Consumer Propane Industry on U.S. and State Economies in 2018

Odorized ImpactPropane’s on Total U.S. Economy A.1 Propane’s Odorized Impact 2018 Odorized Propane Sales Breakout (1,000 Gal.)

Residential Commercial Cylinder Internal Combustion Industrial Agricultural Total United States Odorized Propane Demand

2018 Contribution to the U.S. Economy

(% of Total)

($1,000)

5,184,478 1,924,122 354,431 479,288 411,700 965,883

55.6% 20.6% 3.8% 5.1% 4.4% 10.4%

9,319,900

100.0%

Total Propane-Heated 5,785,087 Households Propane Share of United States Home Heating

on Total U.S. Economy

4.76%

Total Market Value of Odorized Propane Sold in the United States Value in Imported Product and Feedstock Total Market Value of Odorized Propane of Domestic Origin Sold in the United States Supply Transportation, Storage, and Wholesale Retail

Direct United States Employment Related to Odorized Propane Indirect and Induced Labor

36,596,829

Total United States Employment Related to Odorized Propane

Indirect and Induced Labor

($1,000)

$4,208,083 $5,260,103

Total Labor Income in the United States Related to Odorized Propane

97,087

$53,618,610

$1,255,950 $176,114 $2,776,019

Direct Labor Income in United States Odorized Propane Industry

39,977

$4,551,461 $1,165,542 $11,304,778

Indirect and Induced Value Added Total Odorized Propane Industry Contribution to United States GDP

Production Transportation, Storage, and Wholesale Retail

57,110

$16,869,529

$17,021,781

2018 Labor Income 11,174 2,072 43,864

-$862,367

Total Direct Value Added in United States

2018 Employment Production Transportation, Storage, and Wholesale Retail

$17,731,896

$9,468,186

2018 Odorized Propane Supply (1,000 Gal.) Domestic Odorized Propane from Crude Odorized Propane from Natural Gas Total Odorized Propane Produced in the United States

Canadian

804,202

270,555

7,142,768

231,993

7,946,970

502,548 434,412

Odorized Propane Imports Inventory Changes Total Supply of Odorized Propane in the United States

From Outside N. America 408,443

1,483,204

8.63%

11.53%

7,374,765

76.64%

79.13%

408,443

8,857,969

85.27%

90.66%

45,351

479,763

0.00%

4.66%

(17,817)

-0.19%

-0.19%

85.08%

95.13%

-

(17,817) 7,929,153

936,960

Total

Share of Supply (%) From N. America From U.S.

453,794

9,319,915

Source: Total Home Heating Market Share for Propane includes Single and Multi-Family Housing, as well as Boats, RVs, and other Full-time Residences

increase in retail consumption, from 8.32 billion gallons in 2015 to 9.3 billion gallons in 2018.

From 2015 to 2018, Mont Belvieu propane prices increased by 92 percent, from 45.70 ¢/gallon in 2015 to 87.80¢/gallon in 2018, due to both increased crude oil prices and a higher relative propane price to global oil prices. This increased price in wholesale propane supplies was not directly passed on to consumers, however, the average national residential price for propane increased 16

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percent, increasing by 35 ¢/gallon to average 249 ¢/gallon in 2018.

Improvements in energy efficiency and fuel switching technologies continue to impact the propane market, resulting in an increase in the average fuel efficiency for in-home appliances.

However, weather remains the dominant factor influencing annual per-household consumption and accounts for the majority of the 911 million gallon increase in residential and commercial propane consumption between 2015 and 2018.

Texas Propane • www.txpropane.com 73 | P a g e

Impact of the U.S. Consumer Propane Industry on U.S. and State Economies in 2018

A.46 Propane’s Odorized Impact Odorized ImpactPropane’s on Texas Economy 2018 Odorized Propane Sales Breakout (Gallons)

Residential Commercial Cylinder Internal Combustion Industrial Agricultural Total Texas Odorized Propane Demand

(% of State)

147,100,865 104,058,395 35,306,266 42,384,000 42,649,000 14,946,000

38.1% 26.9% 9.1% 11.0% 11.0% 3.9%

386,444,526

100.0%

Total Propane-Heated Households Propane Share of Texas Home Heating

276,111

on Texas Economy

2018 Contribution to State Economy ($1,000)

Total Market Value of Odorized Propane Sold in Texas ($1,000) Supply Transportation, Storage, and Wholesale Retail

$738,276 $2,114,003 $98,349 $376,838

Total Direct Value Added in Texas

$2,589,189

Indirect and Induced Total Odorized Propane Industry Contribution to Texas GDP

$4,046,925 $6,636,114

2.82%

2018 Employment

2018 Labor Income

Production Transportation, Storage, and Wholesale Retail Direct Texas Employment Related to Odorized Propane

2018 Odorized Propane Production

($1,000)

5,106 285 2,443

Production Transportation, Storage, and Wholesale Retail

$573,255 $26,254 $170,168

7,833

Direct Labor Income in Texas Odorized Propane Industry

$769,677

Texas Leads the Charge

From 2013 to 2018, Texas’s economy had an average growth rate of 2.92%. This rate is higher than the regional average of 2.22% growth and higher than the national Refineries 560,199,000 37.77% average of 2.14% growth.

Texas’s total energy consumption by sector grew Gas Processing Plants 3,022,628,000 42.32% by 1,425,849 Btu from 2012 to 2017, with the largest Total Texas Odorized Propane growth seen in the industrial and transportation sectors.

3,582,827,000 41.54% Production Texas’s industrial sector is the largest energy consumer in the state followed by transportation consumption.

Petroleum products, which accounted for 48.6% of the product mix in 2017, has seen the largest absolute growth from Production 2012 to 2017 as coal saw the largest decline while nuclear energy Since 2015, the majority of the added value generated by the saw the smallest gains. propane industry to the national economy has shifted further Agricultural downstream, with the retail sector increasing the direct value Agricultural demand experienced an increase of 10.5 percent added from $9.6 billion in 2015 to $11.3 billion in 2018. The from 2017 to 2018, to reach a total of 965.9 million gallons in wholesale sector also experienced an increase in the direct value 2018. This estimate is well above the 2015 agricultural demand added to the national economy, though one that was proporlevels of 866 million gallons. Wet weather and spring flooding tionally smaller, with its increase from $1.6 billion direct value delayed crop plantings in 2018 and resulted in larger than noradded in 2015 to $1.9 billion in 2018. Propane supply remained mal agricultural demand in the Midwest while new propane apthe largest contributor of direct value by the propane sector, plications and irrigation engines also accounted for year-on-year accounting for 51 percent of the sector’s direct added value in growth from the sector. Compared to 2015, which was one of the 2018, similar to 2015 levels. In 2018, the added economic value warmest years on record for the U.S., temperatures in 2018 were attributed to the retail propane industry was concentrated in the somewhat closer to the 20-year average. Temperatures in 2018 downstream – or retail – sector, where 42 percent of all direct were 0.7 percent colder than the 20-year average, while in 2015 value was created.

(Gallons)

(% of U.S. Total)

July 2020 •

Texas Propane 118 | P a g e

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In 2018, ICF estimates that there was a nearly 780,000 propane appliance installations consisting of 333,650 appliances installed in newly built households, 375,400 replacement appliances in Impact of the U.S. Consumer Propane Industry on U.S. and State Economies in 2018 existing households, and 20,240 appliances installed in new manufactured households, and 50,420 appliances in households that converted from another fuel to propane.

Residential Appliance Installations bybynearly Type Construction Status ICF estimates that in 2018, there were 24,000 new propane heated households that ICF Figure 19. Residential Appliance Installations Typeand and Construction Status estimates were added in 2018. These conversions occur in areas where there is a large residential Water Heaters - Tank Water Heaters - Tankless Ranges Fuel OilCooktops usage, such as the Northeast and Midwest.

Fireplaces Ovens Clothes Dryers

Primary Space Heaters

Replacements of Propane Appliances in Existing Households: 400,000

Sencondary Space Heaters

Appliance Units

In 2018, there were roughly 5.8 million households that used propane as a primary space heating fuel300,000 and another 5.1 million households that use propane for water heating or as a back-up space heating fuel. ICF estimates that nearly 250,000 households that were already using propane appliances, 200,000 replaced 375,000 propane appliances. This figure indicates that roughly 4.3 percent of existing residential propane customers replaced an appliance in 2018.

100,000

State-Level Households Appliance Installations In 2018, -ICF estimates that a total of 354,000 new and existing households replaced nearly 777,000 New Construction Manufactured Replacements Other propane appliances.

The below figureNew shows the numberAppliance of households in eachConversions of the fourfrom market Households Fuels installation categories by state. This figure does not include propane fired BBQs. Source: ICF Figure 20. Number of Households New Propane Appliances

by State Number of Households withwith New Propane Appliances

by State 30,000

Households

25,000

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New Construction

Fuel Oil Conversions

Replacements

Manufactured Households

20,000 15,000 10,000

-

California New York Michigan Wisconsin Ohio North Carolina Pennsylvania Texas Illinois Minnesota Massachuse…

Indiana Missouri New… Virginia Georgia Iowa Maine Connecticut Colorado Mississippi Washington Kentucky Oklahoma Arizona Alabama Maryland Kansas Vermont Tennessee Arkansas New Jersey New Mexico Montana South Carolina Florida Nebraska South Dakota Delaware North Dakota Idaho West Virginia Nevada Oregon Louisiana Wyoming Utah Rhode Island Hawaii Alaska District of…

5,000

Source: they wereICF 5.8 percent warmer.

total of 1.5 million newly constructed households in 2018. Of As of 2017, Texas had 248,416 farms with an average farm these, 71,600 households used propane as the primary space Propane Fired Home Barbeques size of 511 acres and a median farm size of 65 acres. Texas has heating fuel.

261,232 square miles of land and utilized 76% for farmland in In 2018, estimates that there werethat nearly According the EIA’s Residential Energy Consumption Appliances.

Survey, there areICF over 42 million homes 2018. Farmers in the state planted 20,716,000 acres of field crops 780,000 propane appliance 23 installations consisting of 333,650 represented 64 percent use propane for outdoor grilling activities. BBQs thatappliances use a gaseous in 2019. installed infuels newly built households, 375,400 replaceof Fuel all outdoor used in sector the U.S. to thement Hearth, Patioin&existing Barbeque Association, which indemand ingrills the agriculture grew according by 37% between appliances households, 20,240 appliances 2013 and 2018.

Diesel demand 37.1% while propane de- andstalled in new manufactured households, and 50,420 appliances provides information on grew totalbyownership of BBQs annual manufacturer shipments. mand grew by 69% between 2013 and 2018. Electricity demand in households that converted from another fuel to propane. grew by on 110.8% between 2013 2018 and gasoline demand In 2018, there were there roughlywere 5.8 million households that used Based estimated BBQand shipment data, ICF estimates that in 2018 nearly 6.5 million fell by 30.6%. propane as a primary space heating fuel and another 5.1 million new propane-fired BBQs purchased by consumers. The cost of BBQs can range significantly, from households that use propane for water heating or as a back-up Residential space heating fuel. ICF estimates that nearly 250,000 households According to the Survey of Construction data, there were a that were already using propane appliances replaced 375,000 23

fuels include propane, butane, and natural gas 10Gaseous Texas Propane • www.txpropane.com

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Impact of the U.S. Consumer Propane Industry on U.S. and State Economies in 2018

5.2. Retail Propane Employment by State Figure 27. Retail Propane Employment

by Stateby (Section 3) Retail Propane Employment State 9,000 8,000 7,000

Employees

6,000 5,000 4,000 3,000 2,000

0

Texas New York California North Carolina Pennsylvania Oklahoma Florida Virginia Michigan Ohio Colorado Georgia Wisconsin New Mexico Indiana Minnesota North Dakota New Hampshire Connecticut Maine Illinois Missouri Tennessee Maryland South Carolina Massachusetts Washington Alabama Mississippi Louisiana New Jersey West Virginia Vermont Kansas Kentucky Delaware Arizona Iowa Arkansas Alaska Wyoming Utah Oregon Montana Rhode Island Nebraska Nevada South Dakota Idaho Hawaii District of…

1,000

propane appliances.

In 2018, ICF estimates that a total of 354,000 new and existing households replaced nearly 777,000 propane appliances.

Propane Fired Home Barbeques. According the EIA’s Residential Energy Consumption Survey, there are over 42 million homes that use propane for outdoor grilling activities. BBQs that use a gaseous fuel represented 64 percent of all outdoor grills used in the U.S., according to the Hearth, Patio & Barbeque Association, which provides information on total ownership of BBQs and annual manufacturer shipments.

Based on estimated BBQ shipment data, ICF estimates that in 2018 there were nearly 6.5 million new propane-fired BBQs purchased by consumers.

Residential demand, as defined in the annual Retail Propane Sales Report, accounted for 38% of total 2018 propane demand in Texas. The Houston-Woodlands-Sugar Land area has the highest Residential Opportunity Index composite value in the state, followed by the Dallas-Fort Worth-Arlington region.

Texas is making a strong push to advance the number of Zero Net Energy homes in the state, and propane appliances can be an effective tool in this effort. Heating degree days in Texas exhibited minimal correlation to residential space heating demand for propane, based on statistical analysis. From 2001-2018, heating degree days in Texas have seen a CAGR (compound annual growth rate) of -0.1%, compared to the national average of 0.2%.

In 2018, 288,258 homes in Texas were equipped with propane as a space heating fuel.

Regarding market share of propane for home heating, King County is the clear winner, with 57.1% of households using pro-

pane for home heating in 2018. When comparing 2018 to 2013, 74 counties have shown growth in the market share of propane for home heating. Out of 254 counties, 78 counties have seen an increase in the absolute number of homes relying on propanefueled heating, while 85 counties have seen an increase in the ab61 | P a g e solute number of homes relying on wood-fueled heating when comparing 2018 to 2013.

Of the state’s 10 largest counties (each with more than 150,000 households), Travis and Fort Bend counties (in the vicinities of Austin and Houston, respectively) have the highest shares of households using propane for space heating. Harris, Dallas, Tarrant, and Bexar counties, the top four by total number of households, and accounting for 40.2% of total state households, have the lowest shares at less than 1% each.

Texas has approximately 42,535 households using either wood or fuel oil or kerosene for heating, as of 2018. 77% of those houses use wood with the remainder using fuel oil or kerosene. Assuming an average consumption of 318 gallons per household utilizing propane for heating this translates to about 13.5 million gallons of propane demand each year in an optimal fuel switching scenario. In general, the metropolitan areas of Houston, Dallas and Austin have the most propane occupied households and the absolute number has steadily increased since 2011, though the propane market share growth is relatively slow considering the large population these areas have. Smaller counties by population size in the north Texas, like Motley and King counties, have been strong propane markets by market share.

Roughly 11% of residential propane demand in Texas goes to water heating. This is slightly lower than the national average. EstiJuly 2020 •

Texas Propane

11

The addition of these facilities brought the total number of propane fueling stations online in the U.S. to 819. Texas and California have the most stations, with 139 and 59 propane fueling stations, representing 24% of the nation’s propane fueling stations. The number of stations and type of facility are shown by state in the figure below.

Figure 22. Number of Public Propane Fueling Stations by State

Number of Public Propane Fueling Stations by State 160 140

Fuel Reseller

Gas Station

Retail Store

Utility / Government / Co-Op

Car Rental

Truck Stop / Travel Center

120

Stations

100 80 60 40

0

Texas California New Mexico Oregon Illinois Georgia Washington Pennsylvania Alabama Florida Oklahoma Arizona Ohio Michigan Tennessee Indiana Utah Minnesota Missouri New York Iowa Mississippi North Carolina South Carolina Colorado Idaho Montana Wisconsin Arkansas Virginia Massachusetts New Hampshire Connecticut Nevada Louisiana Maryland South Dakota Wyoming North Dakota Nebraska New Jersey Delaware Kansas Kentucky Maine Alaska Rhode Island

20

mates for residential water heating by county indicate that Data Harris, Source: U.S. Department of Energy, Alternative Fuels Centerwas the third most widely used transportation fuel. In the U.S., Dallas, and Fort Bend counties saw the largest absolute increases the National Propane Gas Association (NPGA) estimates that Fueled in Propane propane volumes usedSchool for waterBuses heating. Demand in Hidalgo, there are now over 200,000, vehicles that utilize propane as the Johnson and Cameron counties fell the most from 2013 to 2018. fuelofsource currently on the road, the U.S. School buses are a key part of the fabric of daily life forprimary millions school children across To support this fleet of propane autogas vehicles, there is a large In 2018, there were an estimated 476,150 school buses across country thatpropane transported 23The U.S. Commercial network of the public and private fueling over stations.

30 million students to school each week.

Odorized propane sales to the commercial sector accounted for Department of Energy’s Alternative Fuels Data Center (AFDC) 20.6 percent of the 2018 total retail propane sales, or roughly 1.9 provides a listing off the public alternative fueling locations. HowTraditionally, these vehicles have been powered by diesel or gasoline fueled engines. However, in billion gallons. In 2018, propane retailers sold these volumes to ever, a large number of propane autogas vehicles are part of private recent year’scommercial alternative fueledaccounts vehicles options have become morethat common, lead ininlarge part directory. by nearly 1.1 million propane across the counfleet operations are not reported this public ICF anan increase in the number of per newaccount. propane fueled school buses. tryin with average sales of 1,765 gallons estimates that private propane fueling facilities account for 50 perAcross the U.S., ICF estimates that a total of 9,450 major procent of the total number of propane fueling stations. pane appliances were installed in newly built commercial buildCosts of new propane fueling stations will depend on a variings in 2018, including 4,320 space heaters, 2,840 commercial ety of factors, such as location, size of facility, if the facility is 29 water heaters, and over 2,000 propane fired food preparation or stand-alone of sharing infrastructure, and type of fleet that is behttps://propane.com/for-my-business/fleet-vehicles/propane-autogas-refuelingoptions/#/find/nearest?fuel=LPG&lpg_secondary=true&country=US cooking systems. These installations represent over $88.7 million ing serviced. Compared to a traditional gasoline fueling station, 30 https://files.schoolbusfleet.com/stats/SBF-StateTransportationStats2017-18.pdf in direct consumer spending. propane fueling stations require significantly less upfront capital.

53 stations | P a g e between Commercial demand, as defined in the annual Retail Propane PERC provides a range for new propane fueling Sales Report, accounted for 27% of total 2018 propane demand $15,000 and $225,000. in the state and has been steady. In Texas, 33% of commercial Propane Fueled School Buses sector propane demand is weather-dependent.

School buses are a key part of the fabric of daily life for millions Propane Engines of school children across the U.S. In 2018, there were an estiThe economic impact of new propane engines is estimated to mated 476,150 school buses across the country that transported be $1.1 billion, including $368 million in direct engine purchases over 23 million students to school each week. by consumers. Included in this economic impact are forklift enTraditionally, these vehicles have been powered by diesel or gasgines, irrigation engines, commercial lawn mower engines, and oline fueled engines. However, in recent year’s alternative fueled vehicle engines for Light Duty Vehicles (LDV), Medium Duty vehicles options have become more common, led in large part by Vehicles (MDV), and school buses. in an increase in the number of new propane fueled school buses.

In 2018, the World LPG Association estimated that there There are three major manufactures of propane fueled buses: were nearly 27 million propane fueled vehicles and that propane Blue Bird, IC Bus, and Thomas Built Bus.

12

Texas Propane • www.txpropane.com

Impact of the U.S. Consumer Propane Industry on U.S. and State Economies in 2018

Feature

Figure 23. Number of Propane Fueled School Buses and Share of Total School Bus Fleet by State

Number of Public Propane Fueled School Buses and Share of Total School Bus Fleet by State Number of Propane Autogas Buses

14.0%

Propane Busses % of Total

12.0% 10.0%

2,000

8.0% 1,500 6.0% 1,000

4.0%

500

2.0%

0

0.0%

Texas California Pennsylvania Oregon Wisconsin Minnesota New York Florida Illinois Ohio Georgia Connecticut Nebraska Michigan Arizona Indiana Massachusetts Alabama Washington Colorado Virginia Iowa South Carolina Maryland Delaware Louisiana New Hampshire Missouri Rhode Island Montana Maine New Jersey Kentucky Idaho Tennessee Nevada Utah Alaska West Virginia Wyoming Oklahoma Kansas North Carolina North Dakota Vermont South Dakota Arkansas New Mexico Hawaii Mississippi

Propane School Buses

2,500

Share of Total School Buses

3,000

Source: Propane Education & Research Council, School Fleet, ICF Since 2012, according to NPGA, the propane school bus Busbetween 2013 and 2018. Between 2018 and 2030 propane demarket has grown by 920%. The ICF estimates that there were mand for landscaping and turf maintenance equipment could roughly 2,600 new propane-fueled vehicles built and sold during decline by -0.7%.

2018, bringing the total number of active propane school buses Off-road propane demand increased by 0.23 million gallons Propane Fueled Forklifts in the U.S. to more than 17,000; in 2020, there are now over between 2013 and 2018. Between 2018 and 2030 other off-road 20,000.

Propane-fueled buses expectedoftocommercial see yearly growth demand is likely to increase.

Forklifts are used in aarevariety and industrial settings, both indoors and outdoors, to in market share as several states and school districts expand their transport heavy materials. It is estimated that are This overreport 850,000 forklifts active across the county. purchases of these vehicles. documents the results of a study conducted for PERC by a PERC estimates thereschool are roughly 500,000 fueled forklifts operating in the U.S. These Texas leads the nation that in propane bus adoption with propane team from ICF. over 3,000 buses fueled forklifts by propane powered consumed nearly 400 million gallons of odorized propane in 2018. propane. California, PennsylPropane forklifts are a key leading support warehousing activity and are separated into five vania, Oregon fueled and Wisconsinseparate are the states with next classes.

Class 1 & Class 2 forklifts are powered by electric engines and are a key largest propane fueled fleets to propane in competitor the U.S. These top five powered engines. Class 4 & Class 5 forklifts are categorized as using an internal combustion states represent 45% of theengine. Within this class of forklifts propane has a market share above 90 total propane school busesby in diesel powered units, and a minimal number of forklifts using gasoline. percent, followed the U.S.

In 2018, there were 231,696 total forklifts shipped.33 Electric Class 1 & 2 engines accounted for Other off-road roughly 36 percent of these shipments, while shipments of propane powered forklifts totaled 33 As of 2018, Texas ranks total(includshipments, or roughly 77,000 new propane fueled forklifts shipped. Figure 24 shows firstpercent out of 51ofstates numberD.C.) of new ingthe Washington for theforklift shipments over the last decade by the type of forklift class and the total number of forklifts in the estimated number of propane powered forklifts. state. Texas ranks second out of 51 (including Washington D.C.) for the number of propane forklifts.

Propane demand for landscaping and turf maintenance equipment increased by 52% 33 https://machinemaxxusa.com/2018-annual-forklift-report/

July 2020 •

55 | P 13 a g e Texas Propane

Safety Talk

Filling Vehicle-Mounted ASME Tank Safety Meeting If filling a motor fuel tank on an RV, be sure to turn off all appliance pilot lights and electronic ignition systems.

WHILE FILLING ASME MOTOR AND MOBILE FUEL TANKS: 3 Connect the fuel hose to

In addition to filling cylinders, you may also fill motor and mobile fuel tanks mounted to a vehicle. It is your responsibility to understand how to operate filling equipment, perform routine inspections, and follow regulations to ensure safety.

PROPANE FILLING OPERATION RESPONSIBILITIES:

Be sure you are knowledgeable and comfortable with all procedures for: 3 Inspecting customer containers to ensure that they are safe for filling.

3 Filling containers to their proper levels and preventing overfilling.

3 Communicating product information and warnings to customers.

3 Maintaining a secure propane filling and transfer area.

3 Shutting down and securing the filling station in an emergency.

Contact your supervisor if you need to be trained in any of these areas.

BEFORE FILLING ASME MOTOR AND MOBILE FUEL TANKS: 3 Be sure no one is inside the vehicle and the vehicle ignition

is turned off.

3 Inspect the tank to be sure it has all the correct markings, is in good condition, and is safe for filling.

3 Restrict customers from the immediate area around the liquid propane transfer operation.

3 Make sure there are no ignition sources or combustible materials within 25 feet of the filling connection, or metal-working operations within 35 feet.

3 Use appropriate PPE, following your company’s guidelines.

14

Texas Propane • www.txpropane.com

the tank fill valve.

3 Open the vent valve on the fixed maximum liquid level gauge and check for flow.

If vapor appears, continue the filling process. If liquid appears or if the valve does not operate properly, discontinue the filling process and consult your supervisor.

3 Start the pump, and slowly open the value on the hose end.

3 Close the hose end valve when a white mist or fog is emitted from the fixed maximum liquid level gauge, then close the fixed maximum liquid level gauge.

3 Shut off the pump.

3 Slowly loosen the filler adapter to vent any trapped liquid propane. Wait until it stops venting before completely disconnecting the adapter.

3 Check the valve for leaks and replace the dust cap.

Discussion Topics 1. As you prepare for filling, you notice that a tank appears damaged, but the customer insists it is fine to fill. How should you proceed?

2. Why is it important to confirm that no metal-working operations are nearby the filling area?

LEARNING ACTIVITY Practice the correct process to fill a vehicle-mounted ASME tank.

Discuss safety issues and make sure participants understand how to recognize potential hazards.

Source: Propane Delivery Operations and Cylinder Delivery (PERC) For more information about filling vehicle-mounted ASME tanks, visit www.propane.com. Later this summer, PERC will release the new Dispensing Propane Safely Program. It will be available for online learning on their LMS, as well as for download on the Propane Resource Catalog.

FUEL YOUR PROFITS WITH LOWER WORKERS’ COMP PREMIUMS Endorsed by:

*Dividends are not guaranteed and past dividends are not a guarantee of future dividends. The Texas Department of Insurance must approve all dividend plans

Call your agent to get a quote or call Curtis Heptner, Master Agent H (940) 397-2771 H Curtis@certessentials.com

July 2020 •

Texas Propane

15

ProCOT Corner

Marketers Cashing in on No Destruction Texas Light Duty Vehicle Statewide Incentive Program $5,000 per propane vehicle

The State of Texas is continuing to offer incentives for alternative fuel vehicles (AFVs) through its Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP) administered by the Texas Commission on Environmental Quality (TCEQ) through its TERP arm. The statewide light-duty vehicle incentive program, unlike its counterparts, knows no boundaries (not restricted to non-attainment or near non-attainment areas). Basically, the incentive is offered to any end user no matter where they are in Texas. Clean air or not.

TPGA member Doyle Fevig spends the winters in the Texas Hill Country, away from the bitter winters of Minnesota, managing his Minnesota propane business from afar. So, when he needed a truck for his Texas ranch, he knew propane was the only answer. With the help of the Propane Council of Texas complimentary grant writing services, he was able to get an incentive to convert his new pickup to propane autogas.

“It was easy with the assistance of the Propane Council of Texas” Fevig said. “I would have been intimidated by the length of the application without there help.”

Fevig used a local Texas propane marketer to do the conversion. “They were very good to work with too.” He’ll primar-

16

ily be using the newly converted vehicle in the Hill Country looking for business opportunities, as his primary business is in Minnesota.

Josh Kasprzak, co-owner of Texas Star Propane, Plantersville, relates his experience with the program. One day he was driving down the road and said it was like a light bulb went on in his head. “It was like, why am I selling propane and not using it in my personal vehicle,” he said. Kasprzak went on to receive a grant through the Light Duty Vehicle Incentive Program for a Ford F250 conversion.

“Since that vehicle can last me 30 years, I knew it was worth it. I’m already saving 10 percent a month on fuel costs.” Not only that, ProCOT’s grant services helped him a lot, he said. “Sure, writing grants is never the easiest thing in the world, but Heather Ball took the burden away, and it is a kick-butt program, for sure! In the grand scheme of things, why would you not accept free money to use a fuel that saves you at least 40 percent in the operating costs of the vehicle, helps the environment, and promotes the product you sell,” he said.

The program was allocated to the tune of $10M. While electric and hybrid vehicles only receive $2,500, propane and natural gas vehicles get $5,000 per new vehicle purchased or converted. There is still

Texas Propane • www.txpropane.com

nearly $5M left just for LPG and CNG, which equates to 994 more incentives.

If it is a conversion, it must be converted within the first 500 miles. This program even allows for bi-fuel. The incentive recipient does not have to replace a vehicle or destroy a vehicle. It’s pretty simple.

Purchase or convert an EPA certified propane vehicle with a GVWR less than 10,000 lbs. TCEQ manages a list of qualifying vehicles and conversion kits on its website and certified kits are updated throughout the year.

Eligible vehicle options include everything from an F-150 or a Chevy pickup, to vans and chassis under 10,000 lbs.

Contact the Propane Council of Texas with a vehicle you are interested purchasing and we will see if there is certified kit for that vehicle and help get the certified kit on the list if it is not already on there.

TAKEAWAYS • Statewide incentive • Any end-user fleet or consumer • Can be bi-fuel or dedicated • No vehicle destruction or replacement • Vehicle must have GVWR • Must be an EPA certified kit WHEN TO APPLY? Apply now or anytime throughout 2020. The program is set to close on January 7, 2021. Worried funding will run out? Historically, it hasn’t happened; however, incentive reservations can be made with TCEQ if you have a P.O. GRANT WRITING ASSISTANCE Contact the Propane Council at (800)325-7427 or info@propanecounciloftexas.org if you need help finding a qualifying propane vehicle, propane conversion system or need assistance writing a grant for this program or any other of the available autogas grant programs.

July 2020 •

Texas Propane

17

Feature

Walking the Walk:

Texas Propane Marketer Converts Entire Fleet to Propane Autogas

Green’s Blue Flame Gas Company is leading by example in the propane industry. In October of 2019, the company finished converting the last of its service and delivery vehicle fleet to operate using propane autogas. This now means that their entire fleet, 100% of their applicable

18

vehicles, are propane equipped. Green’s Blue Flame, one of the first partners of Alliance AutoGas (AAG) in 2010, has been under continuous ownership and operation by the Green family who started the business in 1967.

President of Green’s Blue Flame Gas

Texas Propane • www.txpropane.com

Company, Joe Green says, “I met Randy Doyle [former CFO] of Blossman Gas [founding company of AAG] back in 2009 through [NPGA] benchmarking.

Randy told me about AAG and asked if I was interested. After I said I was, Stuart Weidie called me and I soon found out that we had a lot of common interests.

We wanted to run everything we could on propane and make propane more accessible to our customers, and I knew AAG could contribute to that goal.” When speaking upon the impact Green’s Blue Flame has made on the propane industry, Stuart Weidie, President of AAG added, “Joe and Brian Green have been leaders in the US autogas industry for many years.

We are honored that they are a major contributor to the AAG network and have set a fine example by deploying autogas in their own fleet.”

Since Bill Green started Green’s Blue Flame Gas Company back in the 1960s, the family business has always utilized propane in whatever way possible. Brian Green, business development manager for Green’s Blue Flame says, “The technology has changed significantly over the years but the constant for our company has been the mentality of doing what is necessary to convert our vehicles and keep them running on propane.”

Shawn Hicks, service manager for Green’s Blue Flame, has been with the company for almost 40 years and has contributed largely to the success of their autogas program. “Having someone inhouse that has the ability to diagnose and repair anything propane related has been key in enabling the company to achieve a 100% propane fleet, not including our propane transport,” says Green.

When speaking upon the family’s business, Brian Green says, “The propane industry is working in the background to make sure homes and other essential businesses continue to operate during this difficult time. As a primarily commercialfocused propane service provider, we have many customers critical to the supply chain needed to support households and

Feature essential infrastructure. The most notable is a local food bank that distributes food to those that need it.”

Garrett Green, operations manager for Green’s Blue Flame states, “We made changes to our delivery and invoicing process to provide the safest environment possible for our employees and customers while maintaining a quality service.”

This past year, Green’s Blue Flame was able to secure about $65,000 through the Texas Emissions Reduction Plan (TERP) to convert their fleet to the domestic fuel.

MEMBER

The TERP program provides financial incentives to eligible individuals, businesses, or local governments to reduce emissions from polluting vehicles and equipment.

“Our state is fortunate to have a program like TERP, which provides incentives to fleets who want to utilize a clean-burning fuel such as propane,” says Brian Green.

Green’s Blue Flame has 18 total vehicles in their service and delivery fleet, ranging from bobtail trucks to light-duty service trucks. Fuel savings are adding up quickly; the company is currently saving 60% by

using propane in their bobtail trucks as opposed to diesel and saving 50% by utilizing propane in their light-duty vehicles.

Green’s Blue Flame is also pleased to see savings on their overall vehicle maintenance. For example, regulations require diesel-powered vehicles to use diesel emissions fluid (DEF) for daily operation to help reduce particulate matter and nitrogen oxide (NOx). Propane autogas burns clean and does not require additional fluids like DEF, which eliminates the expense entirely.

Disability Insurance • Farm & Ranch • Employee Benefits • Long Term Care Financial & Estate Planning • Home & Auto • Life Insurance

Is the missing piece worth

THE RISK

Other propane owners have come to our agency to get help with connecting their insurance pieces: 1) Some have grown frustrated with the lack of timely response and personal service from their current agent.

Josh McAdams

McAdams Propane Co. Midstream Transportation Co. “I cannot say enough about Rusty and his team at Marshall Young Insurance. Not only are their prices highly competitive and comprehensive, but their customer service is outstanding as well. Marshall Young’s team goes above and beyond to exceed our insurance needs.”

2) Many have discovered a missing piece of coverage after meeting with us.

3) Most tell us they have no idea what companies insure their industry and are surprised to learn there are multiple options available.

WWW.MARSHALLYOUNG.COM 401 N. Ridgeway Drive, Cleburne TX 76033 | 817-645-9155

July 2020 •

Texas Propane

19

Fleet Safety

Preventing Rear-End Collisions Over 25 % of all auto accidents are caused by rear-end collision. And within Crum & Forster’s auto claims, they are the #1 claim in terms of severity. As a trained driver, it is imperative for you to know the techniques necessary to avoid a rear-end collision: Maintaining a Safe Following Distance

Always maintain a safe following distance between your vehicle and the vehicle in front of you, and adjust that distance depending on your speed, the type of vehicle driven, weight of vehicle, cargo being transported, road conditions, your alertness level and weather conditions. In general, industry standards below are guidelines to consider in ideal road and weather conditions at 40 mph or less: • Personal Passenger Vehicles: Minimum of 3 seconds • Medium to Heavy Size Trucks: Minimum of 4 seconds • Semi tractors & Trailers: Minimum

of 6 seconds Increase your distance above 40 mph and add additional time for adverse weather and road conditions and when driving at night.

Avoiding Distractions

One of the major causes of rear-end accidents is distractions. Below are just a few ways to avoid the most common distractions: • Stay off the phone • If something drops on the floor of vehicle, leave it until stopped at a safe location.

• Adjust GPS/Telematics before driving.

• Do not read while driving.

Defensive Driving Methods to Prevent Rear-End Accidents

Watch Out for Others. Focus on your own driving, but be aware of other drivers who may be distracted or impaired.

Check Mirrors Regularly. Check your mirrors every 3 to 5 seconds. This helps avoid complacency and tunnel vision.

Be Cautious of Vehicle in Front of You. Never assume that a vehicle that begins to enter an intersection will not pull away and then stop suddenly.

Scan Road Ahead. Scan the road ahead of you for brake lights, changing traffic lights, pedestrians or other hazards. Also, be aware of vehicles beside and behind you.

Extreme Conditions. When you encounter extreme weather conditions, find a safe place to park and wait for conditions to improve.

Don’t Drive Too Fast. Always follow speed limits, and slow down further when conditions are hazardous.

Watch for Poor Traction. Be aware of areas where traction may be reduced due

Autogas Dispensing

High Differential Pressure Autogas Dispensers

NFPA Rules Change Future of Autogas Refueling EURO Nozzles & Adapters

ZVG2-T EURO Nozzle with Scuff Guard Nozzle Talker

16.0320

16.0331 GasGuard Holster-Mod Flush Mount Lockable Holster (Nozzle not included.)

16.0363

Atlanta GA

(800) 241-4155 Houston TX

(800) 334-7816 Little Rock AR

(800) 643-8222

Chandler OK

(800) 763-0953

Dallas TX

Indianapolis IN

(800) 241-1971

Orlando FL

(800) 821-0631

Texas Propane • www.txpropane.com

(800) 447-1625

Kansas City MO

(800) 821-5062

Richmond VA

(800) 368-4013

www.gasequipment.com

20

Fayetteville NC

(800) 821-1829

St. Louis MO

(800) 423-4685

Tracy Wells East Texas

John Percy West Texas

Mike Armstrong South Texas

to snow, ice, gravel or oil.

Don’t Rush to a Stop Sign. Begin applying breaks gradually and early when approaching a stop sign or red traffic signal.

Stopping Space at Intersections.

When approaching an intersection, keep your eyes on the vehicle in front of you. Be sure that you can stop safely if the driver chooses to stop suddenly.

Pre-trip Inspection. Conduct a pretrip inspection to ensure that all head lights, brake lights and signals are functioning correctly, brakes are adequately adjusted, and mirrors are positioned correctly.

Avoid Stopping Too Close. Avoid stopping too close to the vehicle in front of you at an intersection. Make certain that you can see the rear tires below the bumper of the vehicle in front of you.

Leaving Intersections. Wait 3 seconds for the vehicle in front of you to move before accelerating.

Avoid Sudden Braking. Always remember to avoid sudden braking as it can easily cause you to lose control of your vehicle.

Tailgaters. If you encounter a vehicle

following you too closely, simply slow your vehicle gradually to a safe spot on the road to allow them to pass.

Plan Your Trip. When possible, preplan your trip to avoid heavy traffic or adverse weather conditions.

This article is courtesy of information compiled

by Crum & Forster. This material is provided for information purposes only and is not intended to be a representation of coverage that may exist in any particular situation under a policy issued by one of the companies within Crum & Forster

Let the company that knows your business, protect your business

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July 2020 •

Texas Propane

21

PERC News

PERC’s New Weather Safety Collections Educate Consumers, Community & Media

The Propane Education & Research Council (PERC) has developed a new collection of weather safety educational resources that marketers can share with propane customers and/or local media providing tips on how to stay safe before, during, and after floods, hurricanes, tornadoes, and wildfires.

Each weather safety topic includes:

Social Media Posts

A collection of customizable social media posts that focus on major weather events like floods, hurricanes, tornadoes, and wildfires so that marketers can educate propane customers in their area about important safety resources and tips on how to keep their propane home safe in the event of severe weather.

Videos

This series of videos, each focused on a different weather event, allows marketers to use in local outreach to promote important safety tips and reminders for homeowners during severe weather events.

News Releases

A collection of customizable new release templates also concentrates on major weather events so the propane industry can contact local media to promote safety resources and tips for homeowners during severe weather events.

Guest Column

In addition to the news releases, PERC has also developed a collection of customizable guest column templates that focus on hurricanes, floods, tornados and wildfires so that marketers can use them in local outreach to media to promote safety resources and tips for homeowners during severe weather events.

Radio PSAs

These radio Public Service Announcements list the steps for extreme weather preparation. Share with your local radio stations.

Download all these resources from the Propane Resources Catalog at https://propane.com/resource-catalog and SEARCH “weather safety”.

You can link to or consumers can also visit https://propane.com/safety/propane-and-weather-safety/.

22

Texas Propane • www.txpropane.com

Marketing Minute

5 Steps to Success with Nextdoor Business Posts With Business Posts, small businesses on Nextdoor can get the word out to their neighborhood, stay in touch with local customers, and keep them up to date on business events.

The opportunities are endless when it comes to posting to your local newsfeed.

If you are a small business owner, you may be wondering both what to share with your community, and how to make your posts interesting and engaging for neighbors.

Here are 5 data-backed best practices to help your posts perform at their best.

Well-crafted posts that receive higher engagement create even more engagement; when neighbors react or reply to your post, your post is bumped up in the news-

1. Get (at least) 5 recommendations.

Nextdoor Business Pages with 5 or more recommendations have 30 percent higher engagement (more views, reactions, and replies). https://business.nextdoor.com/ local/resources/how-businesses-can-getmore-recommendations-on-nextdoor 2. Post between the hours of 5-7 p.m.

Businesses that post between their local hours of 5-7 p.m., tend to see higher engagement rates than posts made at different times. feed for even more neighbors to see.

To get started, first claim your free https://nextdoor.com/create-business

3. Plan to post on Thursdays and Fridays. Posts later in the week tend to see higher engagement rates than those made earlier in the week or on the weekend.

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• Worker’s Compensation • General Liability • Business Auto Insurance • Property • Commercial Umbrella

Building and Maintaining Confidence in the Insurance Industry since 1949

Member

Contact John S. Porter, CIC Mark D. VanDover, CIC Miles T. McFann Rhonda Wood

1305 South First Street • Lufkin, Texas (936) 634-3326 • 1-800-223-1289 Emails: john.porter@lumbermen.net • mark.vandover@lumbermen.net mmcfann@austin.rr.com • rhonda-wood@lumbermen.net • www.lumbermen.net 24

Texas Propane • www.txpropane.com

4. Post every other week. Post engagement generally declines after about two weeks. To stay top-of-mind with neighbors, aim to share a new post every two weeks.

5. Add photos that best represent your business. Business Pages with a profile photo and photos in their “photos” section are the most visited. More people visiting your page means more people on your posts.

Additional tips:

• Include a photo with your post: Posts that include high-quality photos are more visually-appealing and can grab the attention of readers better than those without, encouraging neighbors to stop and spend a moment reading your post. Make sure your photo is clear and relevant to whatever you post.

• Regardless of what frequency you choose to post to your community’s newsfeed, make sure to infuse these best prac-

tices into your strategy in order to maximize the engagement on your posts and increase the likelihood of more neighbors seeing what you have to say.

Go to https://nextdoor.com/createbusiness to get started on Nextdoor. For resources on how to use Nextdoor to stay connected with your local customers, pertinent news affecting businesses, and more, follow them at https://www. facebook.com/nextdoorbusiness on Face-

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Texas Propane

25

Inside the Industry

People in Propane

Nominate the Woman of the Year

Charles Reese, 85, passed away June 3, 2020 in Gustine, Texas. He owned and operated the Sinclair gas station in Gustine, delivered propane for Reese Propane, and worked 31 years as a mechanic at the Texas Highway Department. He also farmed and raised cattle. Our thoughts and prayers go out to the family at this time. Memorials may be made to the American Heart Association, P.O. Box 841125, Dallas, TX 75284.

The Propane Education & Research Council has added three new staff members to its business development and safety teams.

Gokul Vishwanathan has been named Director of Research and Sustainability. Gokul is a mechanical engineer in training and practice and will lead PERC’s initiatives to grow propane demand through research, technology development, and sustainability programs. He received a master’s degree in mechanical engineering from the University of Alabama and a Ph.D. in mechanical engineering from the University of Wisconsin.

Matt McDonald will serve as Director of Off-Road Business Development.

Matt is responsible for supporting research and development and market outreach and training projects with a focus on new product development and commercialization in the off-road market. Before coming to PERC, Matt worked at Ferrellgas Partners LP in Kansas City, Kansas, where for more than five years he was general manager.

Garrett Johnson joined PERC as Administrative Assistant. Garrett provides support for the safety, education, and compliance team, and assists with Learning Center help desk calls. Before coming to PERC, Garrett was executive assistant to the lead attorney at a law firm in Silver Spring, Maryland.

Congratulations to Clay Navarette, Tri-Co Propane of Rogers, TX. Clay was one of thirty chosen by the International Association of Young Gassers, in conjunction with the National Propane Gas Association and the Canadian Propane Association, for their “30 Under 30” program to recognize young professionals in the propane industry.

The application period is now open to nominate yourself or a colleague to receive the Woman of the Year Award 2020 and the Young Woman of the Year Award 2020, which are sponsored by the Women in LPG (WINLPG), a global network that is a part of the World LPG Association strategic planning process.

Any woman operating in the LPG industry is eligible. The award is designed to recognize an individual woman who has demonstrated leadership, has a proven record of success and influence in her community, and who has made a particularly significant contribution to the LPG industry.

The Young Woman of the Year Award recognizes a woman under the age of 30 who has joined the LPG industry with a commitment to a long-term career and has demonstrated a level of involvement in the industry and professional growth in her career.

Please complete the correct form online at www.wlpga.org and return it to Nikki Brown, WINLPG global coordinator at winlpg@wlpga.org. The deadline for applications is Aug. 31, 2020, and the winners will be awarded during LPG Week in November.

Stay Up to Date through TPGA Newsroom

BAM Propane is committed to servicing your propane needs with supply availability at all the major supply points across Texas. We market Polygrade Propylene, Refrigerant Grade Propane in addition to HD-5. Please contact us for more information: Jeff Severson Marketing Manager (817) 738-8224 (Office) (817) 894-6126 (Mobile)

26

Texas Propane • www.txpropane.com

The Texas Propane Gas Association has recently expanded our online newsroom.

Visit https://www.txpropane.com/allnews and find the following: • Member Regulatory News (updated weekly) • Policy, Legislative, Taxes & Tax Credits Updates • Weekly Member Newsletter: Monday Morning Messenger archives • Industry News: Texas Propane magazine archives Some news is featured in our guest areas of our website and are restricted to members.

To access these areas, a password is required. TPGA members call the association at (800)325-7427 for your password.

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Texas Propane

27

Classifieds PetroStar Equipment Resources Purchase & Sale Pre-Owned Propane Tanks 5,000 gallons to 90,000 gallons

Garrett Insurance Agency, Inc Formerly, Southern Star Insurance Agency, Inc Cecil Joiner, Risk Manager cecil@garrettinsurance.com 936-756-2222 www.garrettinsurance.com

FOR SALE (1) 30,000 gallon, 250 psi, stubby (2) 18,000 gallon, 250 psi, skidded, 2008 Contact: Jim Oliver 936-755-6108 petrostar@pdq.net

BOBTAILS FOR SALE T exas trucks, no rust, good to excellent condition: • 1998 Peterbilt, 6 speed, 2500 gal, tank, LC Register, Steel deck, Aluminum wheels, 45,386 miles on new motor in 2009 • 2003 Kenworth, 6 speed, 2800 gal. Whiteriver built tank, Neptune meter, steel deck, vapor reel, Guidemaster, Self-load plumbing, 17,248 miles on new motor in 2017.

• 2005 Peterbilt, 6 speed, 2800 gal. tank, 300,000 miles.

• 1964 Transport Trailer, 10,600 gal., Hydraulic pump, Rear load, Runs daily, Freshly repainted and Ready to go.

Call or email for Pictures and Pricing @ 512-276-7800 or 1-800-696-3493 or sturner@directpropaneservices.com

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CHERYL@LONGHORNPROPANE.COM or WENDY@LONGHORNPROPANE.COM, 830-964-2525

28

Texas Propane • www.txpropane.com

Calendar JULY

AUGUST

10 Classified & Ad Deadline Texas Propane magazine

10 Classified & Ad Deadline Texas Propane magazine

23-25 2020 Crossroads TPGA Propane Expo & Conference Austin, TX

20 PERC Council Meeting Virtual

3 TPGA & PSC office closed for Independence Day

CANCELED

7 Propane Safety Tip & Recipe Calendar Deadline

POSTPONED

24-26 2020 Green Transportation Summit & Expo Tacoma, WA 31 Women of the Year Nomination Deadline

SEPTEMBER

7 TPGA & PSC office closed for Labor Day

20-21 2020 Can Do Conference Minneapolis, MN

Index to Advertisers BAM Propane Consultants 26 BLT Tanks 17 Cunningham Gas Products 21 Ferrellgas 19 Fisk Tank Carrier Inc. Outside Back Cover

WOULD YOU LIKE TO ADVERTISE IN TEXAS PROPANE MAGAZINE? For Advertising, contact: Joanne Pantaze at 512-273-2639 or by email at jpantaze@pvco.net

Gas Equipment Company 20 Insurors of Texas 21 Lone Star Energy Group 15 Longhorn Propane 28 Lumbermen’s Insurance Agency 24 Marshall Young Insurance 19

Click LIKE on the Texas Propane Gas Association Page

Meeder Equipment Co. 23 MK Gas 27 Pinnacle Propane Inside Front Cover Propane Service Corporation 18 Rural Computer Consultants 25

Follow Us with TPGA’s twitter @txpropane1

Westmor Industries 25 White River Distributors 15

July 2020 •

Texas Propane

29

Propane With Purpose

Molecular Dog Florida Sculpture Teaches Park Visitors About Propane

A Winter Park, Florida, sculpture, named Molecular Dog, might not immediately trigger connections to propane. But look more closely! The artist, Robert Chambers, created his “dog” as a tribute to propane, using its molecular structure (C3H8) as a design tool.

Chambers is a Florida artist residing in Miami. Both his father and grandfather were biophysicists and hoped that he would follow in their footsteps. As a young boy in chemistry class, the only way he could remember a molecular formula was to associate it with a mythological animal.

In this same way as an artist, Chambers works on a computer digitally rearranging molecules until they take on an animal-like identity.

The five-foot tall bronze sculpture is design to be touched and is installed in Shady Park for families and children to explore. It is part of the Art in Public Places project in Winter Park, Florida.

Photos courtesy of Kelsi Baker, City of Winter Park.

30

Texas Propane • www.txpropane.com

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