November 2018 Texas Propane magazine

TexasPropane November 2018

Volume 74 No. 11

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

31st World LPG Forum Recap

The Texas Legislature

De code d Autogas Hybrid Technology Launched

Are You Ready to Take the Next Step?

Pinnacle Propane is committed to maintaining the legacy you’ve built.

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.

As a Texas-based company, we focus on providing local service to our customers in the communities we do business and empowering our employees via competitive pay and a comprehensive benefits package.

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.

Matt Terry Director, Acquisitions (210) 560-5418

Bill Webb Senior Vice President, Acquisitions (936) 329-1440

For more information and a confidential assessment of your business, whether retail propane or cylinder exchange, and wherever you are in the United States, call us today.

Pinnacle Propane is now part of the SHV Energy family.

SHV Energy is one of the world’s leading propane distributors and has over 16,000 employees and operates in more than 20 countries. As part of the 121 year old Dutch privately owned SHV Holdings, SHV Energy is committed to working sustainably with communities, stakeholders and policy makers.

www.pinnaclepropane.com

www.shvenergy.com

Pinnacle Propane is an equal opportunity employer and all qualified applicants will receive consideration for employment without regard to race, color, religion, sexual orientation, gender identity, national origin, disability status, protected veteran status, or any other characteristic protected by law.

TexasPropane November 2018

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

Features

The Texas Legislature Decoded. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 31st World LPG Forum Recap . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 U.S. Home Heating Bills Likely to be Slightly Higher This Winter; Propane Bills to Remain Steady . . . . . . . . . . . . . . . 14 Autogas Hybrid Technology Launched. . . . . . . . . . . . . . . . . . . . . 20

Publisher

Kim Scheberle Account Manager/Managing Editor Sail House Publishing 512-346-0892 kscheberle@austin.rr.com

Departments Highlights from Headquarters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 TPGA Board of Directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Safety Talk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Joanne Pantaze Advertising Sales 512-273-2639 jpantaze@pvco.net

Fleet Safety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Kiki Pantaze Art Director 512-924-7566 kpantaze@pvco.net

Inside the Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Where in the World . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Legal Beat. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 People in Propane. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Classified Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Calendar of Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Propane with Purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Highlights from Headquarters

How Do They Do That?

2018 CROSSROADS SPONSORS Golf Tournament Targa Resources

Bill Van Hoy TPGA Executive Director Ever wonder how the Texas Legislature really works? How do bills become laws? We have you covered in this issue.

The feature article starting on page 6 explains the procedures and the how and why things happen as they do in the legislature. Bill pre-filing starts on November 12, 2018 for the upcoming session starting in January 2019. Staff will monitor filings for anything detrimental to the Texas propane industry.

It is getting to that time of year where drivers must be extra cautious on the roads as deer and bad weather can be problems. This issue of Texas Propane has

some reminders for your delivery personnel for driving safely in the winter.

This month marks the start of the “holiday season.” All of us here at TPGA wish you the very best this holiday season. We hope you make time to spend time with family and friends. Gather around to eat turkey and pumpkin pie, watch some football and be thankful for those people in your life.

New Member

Supplier WARM THOUGHTS COMMUNICATIONS Clifton, NJ AFFILIATE McDOWELL OWENS ENGINEERING Houston, TX

Expo Lounge Midstream Transportation PERC Convention Bags Enterprise Products Lanyards Keyera Energy President’s Cocktail Reception Bishop Energy Casino Party Quality Steel Westmor Industries Cordell Insurance Ladies Excursion Green’s Blue Flame Gas AFFINITY PARTNERS BASYS • Lone Star Energy Group

2018-2019 TPGA Board of Directors President: Jack Walzel, Tri-Co Propane, 254-642-3885 President Elect: Mark Peterson, Buster Brown Propane, 281-689-3946 Secretary: Harris Baker, HBH Systems, 512-587-8347 Treasurer/Finance Chair: Josh McAdams, McAdams Propane, 936-598-7444 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: Open 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: Open 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: 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 Past President: Todd Dorris, Roadrunner Energy, 830-278-5317 Vice President: Allen Wells, Baygas, Bay Gas, 281-332-2630 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: Don Hankins, Alamo Corporate Group, 817-615-8393 Assoc. Producer/Marketing Gas Director: Jimmie Grant, Martin Gas Sales, 713-851-6155 Assoc. Producer/Marketing Gas Alternate: Anna May Etheredge, Bishop Energy, 940-665-4672 Assoc. Manufacturer/Distributor Director: Mark Smith, Leran, 512-318-1840 Assoc. Manufacturer/Distributor Alternate: Jim Diehl, Squibb Taylor, 214-357-4591 Assoc. At Large Director: Tracy Wells, Gas Equipment Company, 214-638-8018 Assoc. At Large Director: J.R. Anderson, Gas Equipment Company, Nominating Chair: Todd Dorris, Roadrunner Energy, 830-278-5317 NPGA Director: Jim Bishop, Bishop Energy, 940-665-3457

May this Thanksgiving bring warmth and peace to your home this holiday season.

From the TPGA Staff: Bill Van Hoy Jackie Mason

Page Van Hoy Debbie Simpson

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Tracy Wells East Texas

John Percy West Texas

November 2018 •

Mike Armstrong South Texas

Texas Propane

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Featured

The Texas Legislature Decoded

The 86th Texas Legislative Session is just around the corner. Legislators around the state will start pre-filing legislation as early as November 12, 2018. While pre-filing begins this month, the Texas Legislative Session officially begins January 2019.

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Texas Propane • www.txpropane.com

Featured

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Featured Ever wondered how it all works? Here is the Cliffs Notes version of the inner workings of the Texas Legislature.

Governance of the Legislature

The legislative session is important in a few ways. Legislation that becomes a law dictates a state agency’s power as far as scope and regulations it can promulgate. Our state laws are comprised of a series of codes, for instance, the Agriculture Code, Natural Resources Code, and the Occupations Code. These Texas laws guide state agency rules and some local ordinances.

In 2016, the Railroad Commission of Texas informally proposed rules that would require all Texas certified propane professionals be retested for competency. The Railroad Commission was forced to propose the rule because a 2001 statute (state law) said the industry must be periodically retested. Therefore, the Commission drafted an informal rule to comply with the old law.

Before the rule could be adopted, the Texas Propane Gas Association educated legislators on the unnecessity of the rule and fought hard to get the law changed last legislative session. TPGA was successful and HB 3726 by Rep. Tony Dale and sponsored

by Senator Van Taylor repealed the reexamination mandate.

This was no easy feat. Getting a bill passed in the Texas Legislature can be grueling. Only 1,211 of the 6,631 bills and resolutions introduced last session passed, which equates to less than 20%.

The Texas Legislature is made up of 150 members of the House of Representatives, who each serve two-year terms, and the 31 members of the state Senate, who serve four-year terms. There are no limits on the number of consecutive terms a legislator can serve. For example, Rep. Tom Craddick, the longest-serving Texas House member, has served over 48 years.

On the first day of each regular session, the 150 members of the House choose one of their members to be the Speaker of the House.

The Speaker is the presiding officer of the House. The Speaker also appoints the chairs of the House committees and decides which other representatives will serve on those committees, subject to seniority rules. If you can believe it, there are 31 House committees, each of which has a different subject area from energy to agriculture to homeland security.

In the Senate, the presiding officer is the Lieutenant Governor and appoints the committees.

Who Represents You?

The Texas Legislature Online has a tool that allows you to find your state as well as U.S. representatives and senators by using your street address, zip code, county, and/or city: http://www. fyi.legis.state.tx.us/.

How a Bill Becomes Law Bill Introduction

A representative or senator gets an idea for a bill by listening to their constituents in their district or an association like TPGA for instance, who represents its constituents to help find a resolution to whatever problem they are facing. A bill may also stem from recommendations outlined in an interim Wednesday, February 20, 2019 committee study, which is Texas Energy Day at the Capitol done when the legislature is Friday, March 8, 2019 not in session. This past inBill filing deadline terim, which is ending, there Monday, May 27, 2019 were over 300 interim charges.

Last day of 86th Legislative Session Texas representatives and (Sine Die) senators must file bills within the first 60 days of the regular

Important Dates Tuesday, November 6, 2018 General Election Friday, November 12, 2018 First day legislators and legislators-elect may file bills for the 86th Legislature Tuesday, January 8, 2019 86th Legislature convenes

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Texas Propane • www.txpropane.com

Featured session. Once a bill is filed, a member must introduce it to their respective chamber by reading the caption (the first reading) on the floor.

With over 6,000 bills being filed each session, TPGA must be vigilant to ensure legislation being proposed won’t adversely affect our members.

The caption does not always tell the whole story and propane is not always referenced clearly the in bill. Many times, a bill may only reference a statute by number with no corresponding verbiage.

If there is even a slight chance a bill will impact our members or if we foresee the bill could be amended to later have an impact, the association is tracking it.

Committees

Next, all bills are assigned a committee. While many have witnessed the news coverage of controversial late-night floor battles, a fight for a bill begins much earlier in committee. The act of having a bill set on the schedule is often times difficult. With thousands of bills to be heard, it can be hard getting a committee meeting. Some bills die without ever being heard in committee.

If a bill is fortunate enough to be heard, the committee will hold a hearing. If voted on favorably during the committee meeting, a committee report is issued that includes more information including fiscal impact, which allows every House or Senate member to brush up on the facts concerning the bill.

Now the hard part. A bill must go through the very selective Calendars Committee. The Calendars Committee decides when and if a bill will be scheduled on the floor calendar to be heard by the respective House or Senate floor.

The Floor

Next is the where legislators and interested parties are kept on the edge of their seats.

There is much to be weary of on the floor from amendments to delay tactics.

Any legislator of the chamber can offer amendments on the second and third reading; however, it must be relevant to the bill (germane) and approved by most of the members present and voting to be adopted.

The Texas Constitution provides that “no bill shall be so amended in its passage through either House, as to change its original purpose.”

If someone did not file a bill in time or his or her bill is dead, then a legislator may try to amend onto a bill he or she feels is germane.

If a lawmaker allows an amendment on their bill that it is irrelevant, that lawmaker runs the risk of the bill being killed or deemed procedurally dead.

Not only do you have to worry about amendments but depending on what chamber your bill is in there are delay tactics to kill bills or delays to reach a compromise.

In the Senate, it’s called a filibuster, and in 1977, the Texas Senate set a world record with 43-hour filibuster, landing it in the Guinness World Book of Records.

Get Involved

Interested in what’s happening this session? Here are ways TPGA members can get connected: 1. Keep an eye out for the Monday Morning Messenger in TPGA members email inboxes every Monday morning. Packed with legislative updates, regulatory updates and member news.

2. Members can join our TPGA Legislative Affairs Committee. TPGA members can email info@ txpropane.com to join. The committee meets once a quarter during legislative years.

3. Let TPGA know if you have a friend in the Texas House or Senate.

4. Join us for Texas Energy Day at the Capitol on February 20, 2018

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Featured second chamber, the bill must go to conference committee where the House and Senate can work out the differences between the two passed bills.

Save the Date February 20, 2019 Texas Energy Day

Governor’s Action

The Texas Propane Gas Association has partnered with the Texas Oil & Gas Association, Texas Alliance of Energy Producers, Texas Pipeline Association, Texas Independent Producers & Royalty Owners Association and others for Texas Energy Day at the Texas Capitol on February 20, 2019.

Texas Energy Day will include lunch on the Capitol grounds, exhibits, events and meetings with lawmakers.

TPGA members, watch for more information.

Upon its final passage by both chambers, a bill makes its way into the hands of the Governor. The Governor has 10 days in which to sign the bill, veto it, or allow it to become law without a signature. Last session, the Texas Governor Greg Abbott vetoed 51 bills.

Effective Date

The House uses a tactic called “chubbing”, where they debate a bill to excess to the detriment of other bills waiting to be heard on the House floor. The tactic is usually seen closer to the end of legislative session when they are trying run down the legislative clock and prevent bills from being heard before the deadline.

If a bill passes, the process starts all over again in the opposing chamber including committee referral, committee hearings, calendars, and the floor. And if there are amendments in the

A bill cannot become effective until at least 90 days after the session ends, so for 2019, that is August 27, 2019, unless two-thirds of the legislature votes to allow it to become effective earlier.

While it is hard to pass a bill, a group with enough tenacity and the right connections can get legislation passed. So, we as an industry are never safe, but remember your association will always make every effort to block legislation or help pass legislation that is beneficial to the industry.

S OF ION R A E Y 70 RICAT B A F K K TRUC

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at the Southwest Sales Center Dallas, Texas 1-800-483-9971 • 214-326-8661 • danmcelroy@aol.com

Texas Propane • www.txpropane.com

Propane News

31st World LPG Forum Recap: What You May Have Missed

On October 2-4, 2018, the World LPG Forum was held in Houston, TX and rightfully so, since Houston is a premier energy hub. Propane is used by over a billion worldwide and is present in more countries across the globe than CocaCola so why not have a global conference dedicated to the versatile and abundant fuel. The global propane event included over 1,400 participants from 76 countries.

The Top 5 countries that attended were the USA, India, Mexico, Nigeria, and Japan. Both the National Propane Gas Association and Texas Propane Gas Association hosted their quarterly meetings in conjunction with the event giving their members and propane industry leaders a chance to partake in the worldly event.

The forum included a keynote address from a noteworthy Texan, a Global Technology Conference, an exhibition with 88 vendors, roundtables, and sessions.

Texas Comptroller Glenn Hegar welcomed attendees to the World LPG Forum in Houston as the keynote speaker where he discussed how Texas has helped paved the way to a growing global propane supply.

The two day Global Technology Conference covered technological advances in propane applications including: advanced external pressure relief valve for utility LPG gas tanks, LPG near zero emission system for forklifts, development of a high-output, heavy-duty LPG industrial engine, in-use emissions and performance

testing of LPG-fueled engines, LPG cogeneration boiler providing low-cost electricity and backup power for residential and light commercial applications and LPG solar hybrid systems under 50 kw. Additionally, the Global Technology

Conference included propane’s role in sustainability as well as how some countries are turning their cylinders and tanks into connected devices with prepaid accounts and remote digital shutoffs.

The last day, there were a multitude of sessions including updates on the propane marketplace with a presentation from the U.S. Energy Information Administration, as well as presentations on emerging propane technologies like BioLPG, autogas including propane hybrid vehicles, propane power plant generation and propane engines in marine vessels.

See photos of Texas attendees at the World LPG Forum on pages 12-13.

For those interested in attending next year’s World LPG Forum – save the date – it will be held September 24-26, 2019 in Amsterdam.

D.L.Morrison Welding & Construction L.P. MC 330 & 331 Transport & Bobtail Testing & Inspecting MC 330 & 331 Transport & Bobtail Repair & Re-furbish Storage Installation Compressor Repair 217 Morrison Hill Lane • Gainesville,Tx. 76240 Ricky Taylor 940-727-8608 • Mason Day 940-727-1355 Fax 940-612-2055 E-mail ricky_taylor62@yahoo.com November 2018 •

Texas Propane

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Texas Propane • www.txpropane.com

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Propane News

U.S. Home Heating Bills Likely to be Slightly Higher This Winter; Propane Bills to Remain Steady electric heating is more prevalent. Heating oil is much more common in the Northeast than in other regions, while propane is more common in the Midwest.

Propane Forecast

Most U.S. households can expect higher heating expenditures this winter (October through March) compared with last winter according to EIA’s Winter Fuels Outlook. EIA expects that average household bills for most major energy sources of home heating will rise this winter because of higher forecast energy prices. Temperatures are expected to be roughly the same as last winter in much of the country. Forecast winter home heating expenditure changes vary significantly by both fuel and region.

On average, EIA expects natural gas bills to rise by 5%, home heating oil by 20%, and electricity by 3%. However, expenditures for homes that use propane are expected to be about the same as last winter. Although the increased expenditures largely reflect higher energy prices rather than colder temperatures, a warmer thanaverage winter would see smaller increases in expenditures and a colder-than-average winter would see larger increases in expenditures compared with last winter.

EIA’s short-term projections of heating demand are based on the most recent temperature forecasts from the National Oceanic and Atmospheric Administration (NOAA). NOAA’s forecast anticipates that the 2018–2019 winter will be 1% colder than last winter, which is close to the average of the previous 10 winters. Expenditures

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for Midwest households using propane as their primary heating source are expected to decline because the Midwest, the region with the highest concentration of propane heating, is the only region expected to have warmer weather this winter.

The choice of primary heating fuel varies considerably by region, contributing to regional differences in total expenditures. Natural gas is the most common space heating fuel in every region except the South, where

About 5% of all U.S. households heat primarily with propane, and many of these households are in the Northeast and Midwest. EIA expects these households to spend roughly similar levels on average for heating this winter compared with last winter, but projected changes in expenditures vary by region.

EIA expects that households heating with propane in the Northeast will spend an average of $22 (1%) more this winter than last winter, reflecting prices and expenditures that are both about 1% higher than last winter.

EIA expects households in the Midwest to spend an average of $24 (2%) less this winter, reflecting average prices that are about 1% higher and consumption that is 3% lower than last winter. In the 10%-colder-than-forecast scenario,

Source: U.S. Energy Information Administration, Short Term Energy Outlook, Winter Fuels Outlook, October 2018 Note: The propane price is the weighted average of Midwest and Northeast prices. Prices for all other fuels reflect national averages.

Texas Propane • www.txpropane.com

EIA forecasts propane expenditures to be similar to last winter’s level

Change from last winter (forecast) Regional share of all U.S. households that use propane as primary space heating fuel

West South Midwest Northeast

Consumption

Average price

Total expenditures

n/a

n/a

n/a

n/a

n/a

n/a

-3%

1%

-2%

1%

0%

1%

16% 32% 36% 17%

Note: n/a = not available because of insufficient underlying data to create forecast Source: EIA Short-Term Energy Outlook, October 2018.

Short-Term Energy and Winter Fuels Outlook October 10, 2018

EIA’s forecast expenditures for propane are $266 higher than last winter in the Northeast, reflecting prices that are 14 cents/gal (4%) higher than last winter and consumption that is 10% higher. Forecast expenditures are $236 higher than last

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winter in the Midwest, reflecting prices that are 21 cents/gal (11%) higher than last winter and consumption that is 5% higher. In the 10%-warmer-than-forecast scenario, EIA’s forecast expenditures are $285 lower than last winter in the North-

east, reflecting prices that are 29 cents/gal (9%) lower than last winter and consumption that is 7% lower. Forecast expenditures are $246 lower than last winter in the Midwest, reflecting prices that are 15 cents/gal (8%) lower than last winter and consumption that is 11% lower.

EIA forecasts that propane production at natural gas plants and refineries will be 14% higher this winter than last winter, total consumption is expected to be the same as last winter, and net exports are expected to be 19% higher than last winter. Propane inventories typically build between April and October and begin drawing down in late September or October as temperatures begin to drop.

U.S. propane (including propylene) inventories at the end of September were 79.4 million barrels, which was 8% lower than the previous five-year average for that time of year. The low U.S. inventories are primarily the result of U.S. Gulf Coast inventories that were 19% lower than the five-year average going into the heating season. Strong global demand for propane contributed to U.S. Gulf Coast inventories that have remained on the low side of the normal inventory range since early 2017.

Inventories in the Midwest, the region that relies most on propane for heating and agricultural uses, ended September 3% higher than the five-year average. Propane prices are higher at the Gulf Coast market hub at Mont Belvieu, Texas, than at the Midwest hub at Conway, Kansas, which may provide incentive for more propane to move to the Gulf Coast. Regional Midwest data shows stocks at or higher than the five-year averages in all of the various sub regions. Inventories in the Northeast ended September 33% higher than the five-year average, mainly because of high inventories in the Middle Atlantic region.

Interruptions in service of the Mariner East 1 pipeline and delays in completing the Mariner East 2 pipeline, both of which limit propane from reaching and being exported from the Marcus Hook terminal, may have contributed to largerthan-normal inventory builds in that region. Despite higher crude oil prices, propane prices in the Northeast are expected to be similar to last winter partly because of improved logistics in the region and higher-than-normal inventories in Canada, which are expected to provide greater access to propane supplies.

November 2018 •

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Safety Talk

Selecting Safe Delivery Routes and Protecting Property Safety Meeting

As a propane delivery driver, you are responsible for protecting people and property in the course of your job. The following tips can supplement your company’s safety plan and help you prevent any unnecessary issues.

PLANNING AND SETTING OFF ON YOUR ROUTE: 3 Plan for the issues of delivery vehicles — Know the height

and weight of your vehicle and any bridges or road sections that require extra safety measures.

3 Drive with caution and vigilance — Follow all recommended instructions at railroad crossings and drawbridges and posted hazmat route signs, and be prepared for any detours due to local restrictions.

3 Adjust for weather — Maintain speed appropriate for conditions. Plan ahead if you need to change your route for easier travel, and make customer appointments accordingly.

Vehicle flashers must be used at all railroad crossings and any time the vehicle is stopped except for routine traffic stops.

PROTECTING CUSTOMER LANDSCAPING, PROPERTY, AND STRUCTURES:

You will encounter a variety of issues and obstacles in day-today deliveries and service.

Understand the size and restrictions of your vehicle, and always exercise good judgment.

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Texas Propane • www.txpropane.com

3 Keep your vehicle on roadways, driveways, or surfaces adequate to support its weight.

3 Avoid attempting travel over small private bridges or culverts — Park your vehicle and use a dolly to transport cylinders to the delivery location. If you’re driving a bobtail, use the full length of the delivery hose to reach across the bridge to the LP-gas containers. Be aware of landscaping/ decorative items that the hose may damage when pulling it to the container.

3 Close all gates after driving through to prevent loss of pets or livestock. Park in a location that allows room for other vehicles to come and go freely.

3 Stay alert to the activities and movement of children and pets.

3 Upon job completion, conduct a vehicle walk-around to ensure your exit path is clear.

Know the locations of telephone poles and utility boxes to confirm you can clear them.

Discussion Topics 1. The customer tells you other propane drivers have crossed his bridge without issue, but as you approach, you feel it might not be secure. What is your best course of action?

2. As you are exiting, you collide with an old birdhouse the customer has at her site. How do you proceed?

LEARNING ACTIVITY Discuss a recent incident in a propane delivery or gas-related event.

Discuss what was handled properly and what should have received more attention. Ask participants for input and suggestions.

Source: Propane Delivery Operations and Cylinder Delivery (PERC) For more information on selecting safe delivery routes, visit propanesafety.com.

Fleet Safety

Safe Driving Practices During Deer Season Fleet drivers should be reminded of best practices for avoiding deer as well as what to do if they do encounter one.

In many parts of the country, driving becomes more dangerous from October through January. That’s because it’s deer breeding season and meeting a startled animal on the road can be a frightening experience that can easily lead to a collision, injuries and even a fatality.

Fleet drivers should be reminded of best practices for avoiding deer as well as what to do if they do encounter one. Experts offering the following advice:

dition to regular hours, hunters in many areas are often allowed to hunt one half hour before sunrise and one-half hour before sunset.

Remember the Herd

If you see one deer, there are likely many more. Deer rarely travel alone but rather as a herd.

Use High Beams at Night

Buckle up

As always, make sure your seat belt is securely fastened when driving during deer season.

Slow Down at Deer Crossing Signs

The signs are posted for a purpose, so proceed with caution.

Be Cautious on Two-Lane Roads

Deer are most prevalent on the side of two-lane roads, and in early morning and early evening hours from the fall through early winter. This is because deer are aware and afraid of hunters in the woods—so they leave the forest. What’s more, in ad-

During deer season, use your high beams at night as they can help you scan for deer eye reflections, making it easier to spot one in the dark.

If you do encounter a deer in the road— or believe you are about to hit one— here is what experts suggest: Reduce Speed, Flash Headlights, and Honk

Deer seem to be in a trace when they see headlights, so flashing and honking helps awaken them to oncoming danger and prompts them to run out of the roadway.

Don’t Swerve

If you think you are about to hit a deer, do not swerve to avoid it. Swerving often causes the driver to hit a tree, a vehicle or another object—and that’s when the most injuries and fatalities occur.

Brake Then Release

Experts suggest that it is better to just hit your brakes up until the last second of impact—then release the brakes. By using this technique, when you hit the deer it will most likely propel away from your vehicle instead of crashing on or through your windshield or roof—both of which situations can cause serious injury to the driver.

Stay Away from Wounded Animals

If you do strike a deer and it is still alive in the road, stay far away from it to avoid scaring it and for your own safety.

Call the Police

Report all vehicle-deer collisions to the police.

Reprinted with permission from Automotive Fleet magazine www.automotive-fleet.com

18

Texas Propane • www.txpropane.com

November 2018 •

Texas Propane

19

Autogas Advantage

Autogas Hybrid Technology Launched

Alliance AutoGas (AAG) has developed an autogas hybrid technology. AAG engineers have designed an autogas electric hybrid to be introduced to the market with the 2017 Ford Fusion. This 2.0 liter, 4 cylinder vehicle will provide additional torque, reduced emissions and better fuel economy due to the innovative hybrid system.

AAG engineers pursued this partial elec-

trification or “hybridization” project with the Ford Fusion with the intent to be prepared for larger hybrid vehicles that Ford is expected to produce in the future, such as the hybrid F-150. Both the Fusion and the F-150 are commonly used in large fleets. By offering a hybrid vehicle that has better fuel economy in the city than highway or in stop and go traffic where most fuel is consumed,

AAG customers will experience increased cost savings and reduced emissions.

The technology used in the Fusion has an internal combustion engine with an electric drive motor in what is called a ‘series-parallel’ configuration. This means that both the engine AND electric motor can work together to propel the vehicle.

Because AAG uses a mono-fuel port injected vapor system in a port fuel injection engine, replacing gasoline completely with propane autogas, the two technologies are working together to reduce emissions and fuel consumption.

Alliance AutoGas president, Stuart Weidie announced the release by saying,“We are pleased to differentiate Alliance AutoGas in the alternative fuel market as hybrid friendly.

This vehicle is a precursor of many to come in the Ford family, and our company is committed to staying ahead of vehicle technology. We want to provide autogas users with the best possible resources for reducing emissions and costs on the market.”

For more about Alliance AutoGas, please contact Jessica Johnson, Partner Liaison, 828-2320910 or jcjohnson@allianceautogas.com.

Where in the World - LPG Hybrid Taxis The U.S. is not the only one to adopt this technology.

Last year, Japan launched one of its most iconic LPG electric hybrid taxi designed to provide usability and comfort to a wide range of people across all age groups, wheelchair users and tourists – The JPN taxi.

Both passenger- and driver-friendly, the Toyota Camry Hybrid integrates the high torque of a batterypowered electric motor with the power of a combustion engine to deliver an efficient and impressive driving performance. Upon 13CABS request, the taxis have been equipped with state-of-the-art sequential vapour injection LPG systems, turning them into ultra-efficient-tri-fuel revolutionary cars.

Toyota plans to use JPN Taxi to greet visitors from around the world in 2020, when Tokyo hosts the Olympic and Paralympic games.

Source: Case Study by the World LP Gas Association

20

Texas Propane • www.txpropane.com

FEATURING SPECIALIZED PROGRAMS FOR LP GAS DEALERS

• 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

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 • www.lumbermen.net

November 2018 •

Texas Propane

21

Legal Beat

Misclassifying a Worker as an Independent Contractor

When She or He is Really an Employee Can Be Costly

By David Oliver, Ryan Lione and Laura Fowler There are many areas in which Texas business owners can rejoice in their freedom to define their own destiny; misclassifying a worker as an independent contractor when they should be characterized as an employee is not one! Do not make the mistake of not understanding this area of employment law if you intend to associate your business with any human beings who will be compensated to perform tasks.

The following criteria must be met to characterize someone as an independent contractor: 1. The contractor will be allowed to come and go as she or he pleases to complete tasks. In other words, the focus of the agreement is on completing a project, not on hours worked or a schedule.

2. The freelancer will be largely autonomous, using her or his own equipment, systems of information, conferring with others of her or his choosing, or assigning others on a team of her or his choosing to assist in completing tasks.

3. The worker should own her or his own business with an EIN, perform contracts with other business entities, and perhaps employ others. The person should not be working full time for your business.

4. The person should not be someone who has recently been a W-2 employee for a business entity you own or a related enterprise.

The misclassification of employees as independent contractors puts the employer at serious legal risk under the law.

If misclassified and the worker is injured in the scope and course of doing what the business owner thought were independent contractor duties, virtually all defenses the business owner would have had vanish. In other words, the business owner becomes the literal insurer of that worker’s injuries. At the same time, none of the benefits of the Texas workers com-

22

pensation statute limits on the business owner’s liability are available. The most likely way this arises is when a worker driving her or his own automobile in the scope and course of the business of the agreement between the owner and the worker has an accident and injuries herself or himself and/or others.

If an independent contractor succeeds in proving that she or he really should have been paid as an employee, the business owner typically will have no proof of the number of hours worked. Many categories of workers will be owed at the very least minimum wage plus time and a half for overtime. Because the business owner has no records, the presumption favors the worker who may invent a fanciful narrative which the owner is then largely defenseless to rebut. The penalties and back wages owed to a worker who succeeds are enormous.

The penalties the IRS may impose upon the business owner for failure to withhold and remit payment to the IRS are substantial. The penalties apply to all payments owed which the business owner failed to withhold and remit timely to IRS on the worker’s behalf. Texas Workforce Commission Unemployment Fund can also inflict penalties upon those who do not pay because workers are misclassi-

Texas Propane • www.txpropane.com

fied as independent contractor’s substantial penalties and interest.

Unless the business owner had the foresight to declare the worker and his or her activities on the business owner’s liability insurance policies, any damage or injury caused by the worker is uninsured. Driving around in the car is the biggest source of exposure. Business owners should have a discussion with their local business insurance agent about this.

Not fully understanding the difference in classification between an employee and an independent contractor can lead to costly legal battles. Consulting an experienced attorney before you write up any agreement with a worker is recommended to ensure you can avoid such situations.

The preceding is part of a series of articles being offered by The Fowler Law Firm called Employment Law Summer School. These articles are designed to help you avoid costly legal mistakes.

Davis Oliver serves as The Fowler Law Firm PC Managing Attorney Georgetown, counsels daily with many private employers and represents them in trial. Ryan Lione is a Senior Attorney at The Fowler Law Firm PC, having previously served as legal counsel to many employers including most recently as in house legal counsel to a large mental health care facility. Laura Fowler is the Managing Shareholder of The Fowler Law Firm PC. She is a regular speaker on a variety of business related topics.

Email her at lfowler@thefowlerlawfirm.com to receive updates on dates, topics and sponsors of upcoming discussions at various locations around Central Texas and Austin.

Receipt of this article does not establish or constitute an attorney-client relationship. This information is not intended as a substitute for careful review by legal counsel of your own choosing. As with any legal issue, please consult your attorney with questions.

November 2018 •

Texas Propane

23

Inside the Industry

People in Propane George W. Crane, Jr., 93, of Paris, TX passed away on September 28, 2018. Mr. Crane served in the U.S. Army during World War II. Mr. Crane bought Paris Electric which became Crane Electric, and owned and operated that business for 50 years. Following his retirement, he began working for Cooper Propane where he worked for 25 years. Our thoughts and prayers go out to the family.

It is with deep sorrow that we inform you of the passing of William “Lon” Graham, 92. Mr. Graham moved to the DFW area in 1966 to join Squibb Taylor and later to join and retire from Northern Propane Gas Company.

While visiting a friend, he was asked to “help” out with LP Gas carburation at L.E. Klein. Lon served L.E. Klein with dedication and integrity for over 30 years.

Our thoughts and prayers go out to the family at this time. Donations in his honor may be sent to: Lifesavers Foundation, 561 W Campbell, Suite 101, Richardson, TX 75080 or to Power Point Ministries, P.O. Box 7999070, Dallas, TX 75379.

PERC’s Preventing Bobtail Rollover Package

The Propane Education & Research Council (PERC) has a bobtail rollover safety program with guidelines and tips on what a driver can do to minimize the risk of a rollover. The program includes a DVD; a CD that contains a booklet; a quiz with an answer key; and a certificate of employee completion.

Printable components of the program

are complimentary for download at the site, as well. The complete program can be ordered at www.propanecouncil.org/psc or TPGA members can call (800)3257427 to checkout/reserve a complimentary DVD/CD copy from the TPGA Video Lending Library.

Prepping for New Transport Drivers: Check Out PERC’s Transport Operator Training Program

The Propane Education & Research Council has a Transport Operator Training primarily designed to train employees who operate a transport. This program provides information, practices, and procedures that support general delivery

tasks for those who operate commercial motor vehicles to deliver propane.

The program covers: Propane basics, safely handling propane and other hazardous materials, transport inspection procedures, emergency procedures, transport features and equipment, procedures for loading at a terminal, bulk plant equipment and procedures for unloading at a bulk plant.

The CD/DVD kit includes all of the files included in the PDF Handbook and a 90-minute video highlighting best practices for transport vehicle operators, organized into modules to customize training based on job responsibilities and training requirements.

The complete program can be borrowed/checked out from the TPGA Member Lending Library or ordered at www.propanecouncil.org/psc. A PDF digital handbook is complimentary for download at the site as well.

Carbon Monoxide Brochure

Watch for the NEW PSC e-Commerce website, and some big changes for customers COMING SOON. 24

Texas Propane • www.txpropane.com

Heaters are starting to run. It is important time to remind customers about carbon monoxide (CO) safety. The Propane Education & Research Council (PERC) has a revamped their Carbon Monoxide Brochure.

The recently revised full-color quad fold brochure is designed to educate propane consumers on what to do if they suspect that carbon monoxide (CO) is present, ways to reduce risks of CO poisoning, how CO detectors can improve safety, and identifying some of the signs of improper appliance operation that can generate high CO levels. The brochure comes 100/pk.

Order yours today by going to www. propanecouncil.org/psc.

Inside the Industry Need Propane Bill Stuffers?

Keep Full.

Be SaFe. Keep an eye on your gauge and do not run out of gas. Call your propane gas provider if you tank reaches below 20%. Running out of gas is an interruption of service. The State of Texas provides propane retailers with specific guidelines to have a leak check performed on any system that has been out of gas before filling and turning the tank back on.

If Number of Gallons Remaning: Gauge Reads 150-Gal. Tank 250 Gal. Tank 500-Gal. Tank 80%

120

200

400

70%

105

175

350

60%

90

150

300

50%

75

125

250

40%

60

100

200

30%

45

75

150

IF GauGe ReadS leSS thaN 20% ORdeR GaS NOw!

Always remember: Out of propane requires a mandatory leak test. It may not be convenient, but it’s the law. Your retailer may charge you for this test.

The Propane Service Corporation (PSC) has double-sided English & Spanish propane safety bill stuffers for sale.

The bill stuffers were formerly available from the Railroad Commission of Texas and have been revamped by PSC. In stock, PSC has Keep Full/How to Read Your Gas Gauge, If You Smell Gas, Gas Check and Leave Your Tanks Outside.

Sold in packages of 100.

Call (800) 392-0023 or email sales@ propaneservicecorp.com to order yours.

Texas Mower Dealership Receives Propane Leadership Award

The Propane Education & Research Council (PERC) presented its prestigious Propane Leadership Award to a Texas-

based equipment dealer and a landscape contractor located in Oregon. Austin Turf & Tractor who was honored in the PERC booth during Dealer Day at GIE+EXPO in Louisville, Kentucky. Ben Davis, commercial sales manager at the Farmers Branch location of Austin Turf & Tractor, accepted a commemorative plaque on behalf of Austin Turf & Tractor.

For the third year in a row, PERC has presented one outdoor power equipment dealer and one commercial landscaper with the award, which seeks to recognize those in the landscape industry who advocate for propane equipment.

“Austin Turf & Tractor has done considerable work in bringing awareness of the benefits of propane mowers to their clients and communities, and have built success by adopting propane into their equipment lineup,” said Jeremy Wishart,

director of off-road business development for PERC. Austin Turf & Tractor has sold and serviced golf, sports, and turf equipment for companies across Texas and New Mexico since 1992. When gasoline prices reached record highs in 2012, the business turned to propane equipment to help its customers in the Dallas/Fort Worth area find a lower-cost solution. Customers quickly realized the benefits of propane, including greater productivity in the field, clean fuel systems, lower cost of ownership, and better public impressions. To ensure customers have continued success with propane, Austin Turf & Tractor’s DFW location also certified its technicians to install and repair Envirogard conversion kits. Now, approximately 15 percent of the business’s zero-turn mower sales are entirely propane.

Educate Your Customers on Turkey Frying Safety

According to the National Fire Protection Association (NFPA), Thanksgiving is the peak day for home cooking fires. According to Fox News, for the last seven years, Texas has

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November 2018 •

Texas Propane

25

Inside the Industry led the country in most grease-and cookingrelated insurance claims on Thanksgiving Day. That said, November is the perfect time to remind customers about Turkey Frying Safety, whether on your website, social media or a digital newsletter.

Here are some tips from a PSA from the Propane Council of Texas • Place your propane fryer outdoors on a flat open area away from kids, critters and anything flammable.

• Please, don’t fry in the garage. It’s not safe.

• Hotter isn’t better. Fry at 375 degrees

or less.

• Measure how much oil you need before plopping that bird in the fryer. So hot oil won’t overflow.

• Good heavens don’t make a mess.

Don’t fry a frozen turkey… it’ll cause hot oil to splatter everywhere.

• Remember: only fry a thawed turkey, do it outdoors, measure the oil and keep it under 375°.

For more great turkey tips including a detailed turkey frying guide, visit eatturkey.com.

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1) Most tell us they have no idea what companies insure their industry and are surprised to learn there are multiple options available; 2) Many have discovered a gap in coverage after meeting with us; 3) Some have grown frustrated with the lack of timely response and personal service from their current agent.

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Texas Propane • www.txpropane.com

MEMBER

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Classifieds 2008 Chevrolet Bobtail with 2600 gallon National tank, 74,000 miles, Cat diesel engine, remote shut-off system, excellent condition.

Call Terrence at Brenham LP Gas 979.836.2331

Stackable Propane Tank Protective Cages

Lift and stack with the

LProtector ®

Lets users safely move propane tanks themselves using fork trucks, eliminating the potential for tip-overs, broken valves and damage. Perfect for construction, agriculture, generators, etc.

Standard style or skid (sled) design with built-in lug hole shackles for pulling on flat surfaces.

Available to fit 500-, 1,000-, 1450- & 1,990-gal. tanks. (937) 297-0166 Cage and steel made in USA. Tank is extra. www.lprotector.com

• • •

Garrett Insurance Agency, Inc Formerly, Southern Star Insurance Agency, Inc Cecil Joiner, Risk Manager cecil@garrettinsurance.com 1-800-545-2565 www.garrettinsurance.com 2006 Freightliner Bobtail with 3000 gallon tank, Automatic Allison, Cat diesel, AC, Air ride seat and Air Suspension rear with 142,000 miles.

New 1” hose, 2 driverside alluminum tool boxes, remote shutdown. $59,500.00 800-826-5734

Cheryl@longhornpropane.com or Latisha@longhornpropane.com, 830-964-2525

28

Texas Propane • www.txpropane.com

Calendar Bobtails For Sale • Texas 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 • 2005 Freightliner, Automatic, 3000 gal. tank, LC Meter, Aluminum deck, 222,765 miles on 230hp CAT • 2005 Freightliner, Automatic, 3000 gal. tank, LC Meter, Aluminum deck, 180,968 miles on 230hp CAT • 2004 Kenworth, Automatic, 2600 gal. tank, LC Meter, Steel deck, Aluminum wheels, 106,438.2 miles on CAT motor • 2008 Peterbilt, 6 speed, 1800 gal. tank, Neptune meter, Veeder Root Register, Low profile truck w/ bolt on scale for bottles, 84,642.6 miles • 2010 Kenworth, 6 speed, 2600 gal. tank, LC Meter, Steel deck, Aluminum wheels, 282,054.2 miles on Cummins motor • 2016 Mack, Automatic, 3499 gal. tank, LC Meter, Aluminum deck, 85,385.0 miles on 345hp Cummins ISL9 motor Call or email for Pictures and Pricing @ 512-276-7800 or 1-800-696-3493 or sturner@directpropaneservices.com

November

January 2019

5-6 Propane Emergencies Training College Station, TX

1 TPGA office closed for New Year’s Day

8-9 PERC Council Meeting Savannah, Georgia

9 – 10 2019 National Propane Safety & Trainer’s Conference San Antonio, TX

10 Propane Living newsletter Winter Deadline

14-16 AHR Expo Atlanta, GA

22-23 TPGA office closed for Thanksgiving

17-18 NPGA Benchmarking Council Meeting (Groups A-H) Savannah, GA 24-25 NPGA Benchmarking Council Meeting (Groups I-M) Savannah, GA

December

1 Duty to Warn Registration DEADLINE

February

18 TPGA office closed for President’s Day

4-6 Power-Gen International Orlando, FL 24-25 TPGA office closed for Christmas

PetroStar Equipment Resources Purchase & Sale Pre-Owned Propane Tanks 5,000 gallons to 120,000 gallons FOR SALE 90,000 gallon, 250 psi, Trinity - 2011 18,000 gallon, 250 psi, Westmor - 2007 Contact: Jim Oliver (936) 755-6108 petrostar@pdq.net

19-20 TPGA Board & Related Committee Meetings/Texas Energy Days Austin, TX

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

Click Like on the Texas Propane Gas Association Page

Thinking of selling out?

Thinking of buying a competitor?

Thinking of opening a new location?

We have the resources and experience to make your thoughts a reality.

817-615-8393 • 800-267-9311 • www.alamocorporategroup.com

Follow Us with TPGA’s twitter @txpropane1

November 2018 •

Texas Propane

29

Propane With Purpose

New KOHLER Generators Bring Next-Level Performance to Commercial Applications

T

he weather the last several months has made it abundantly clear that access to a generator can make a huge difference, be it for residential customers trying to get by in the aftermath of a hurricane, or commercial enterprises trying to continue working for their customers when the power grid is knocked out.

KOHLER is introducing three new industrial light commercial generator models for stationary emergency applications. The KOHLER 25CCL, 30CCL, and 36CCL are 60Hz generators, which can be fueled by either natural gas or liquid propane and integrate the KOHLER APM402 controller as well as a KOHLER 2.2-liter turbocharged engine. The new generators provide advanced voltage and frequency regulation along with ultra-low levels of harmonic distortion for excellent power quality and enhanced protection for sensitive, valuable electronics.

“Providing between 25kW and 36kW of reliable backup power, these three models are the ideal size for a wide variety of commercial and light industrial settings,” said Amy Haese, associate product manager for KOHLER generators. “With our APM402 controller, these new units offer comprehensive system monitoring and diagnostics while the KOHLER turbocharged engine delivers proven reliability and performance in the field. We believe there’s a significant market for these new generators, which are loaded with beneficial features.”

The new KOHLER 25CCL, 30CCL, and 36CCL generators meet National Fire Protection Association (NFPA) 110, Level 1 requirements when equipped with the necessary accessories and installed per NFPA standards. All three models also utilize an aluminum sound-attenuating enclosure for quiet operation and come standard with a five-year or 2,000-hour limited warranty for additional peace-of-mind. To learn more or view complete product specifications, please visit http://www.KohlerPower.com.

Founded in 1873 and headquartered in Kohler, Wis., Kohler Co. manufactures engines and power systems; kitchen and bath products; and is the owner/operator of two of the world’s finest five-star hospitality and golf resort destinations in Kohler and St Andrews, Scotland. For more details, please visit http://www.

Kohler.com.

30

Texas Propane • www.txpropane.com

The more members, the bigger the voice. Join a group of your industry peers as a member of the association.

Let the policymakers hear our voice!

BECOME A MEMBER. JOIN TODAY! www.txpropane.com

Don’t Wait Until You’re Knee Deep in Winter Out of Gas Calls Sign Up for the Texas Duty to Warn Safety Mailing Program now at www.propanecounciloftexas.org DEADLINE IS DECEMBER 1, 2018