PPGA Propane Post Win 25

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PACIFIC PROPANE GAS ASSOCIATION

WINTER 2025

POWERING AI TIME TO RE-COMPUTE

PLUS VERTICAL FARMS GROW YEAR-ROUND THANKS TO PROPANE

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Features

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Powering AI: Time to Re-Compute.................................................................................................................................8 Vertical Farms Grow Year-Round Thanks to Propane............................................................................................. 12 Key Factors to Consider When Determining Propane Tank Placement............................................................. 14 The Oregon Department of Energy Approves Energy Strategy.......................................................................... 17

Departments Executive Director’s Message..........................................................................................................................................4 PPGA News...........................................................................................................................................................................6 Industry Updates............................................................................................................................................................... 18 Member News.................................................................................................................................................................... 19 NPGA Updates.................................................................................................................................................................. 20 Upcoming Events............................................................................................................................................................. 22 Advertiser Index............................................................................................................................................................... 22

Executive Director’s Message

MATT SOLAK

THREE KEY PRIORITIES FOR PPGA

As we are in the early stages of the 2025-2026 heating season, I want to take a moment to reflect on the progress our association has made and the opportunities that lie ahead. The propane industry continues to show resilience, adaptability, and innovation in response to evolving energy demands and regulatory changes. Our members remain at the forefront of ensuring propane is a safe, reliable, and sustainable energy choice for homes, businesses, and communities.

This year, our association has centered its efforts around three key priorities: advocacy, education, and member engagement. We have strengthened our presence at both the state and national levels, working to ensure policymakers recognize the essential role propane plays in the clean energy conversation. Through events, committees, and ongoing networking opportunities, we are fostering the connections that make our industry stronger from within.

Another focus that continues to grow in importance is consumer pricing. As families and businesses navigate rising costs across many sectors, transparent and competitive propane pricing is essential. Our members’ commitment to fair, stable, and predictable pricing helps build consumer trust, supports energy affordability, and reinforces propane’s value as a cost-effective alternative in an increasingly complex energy marketplace. Ensuring consumers can rely on propane not only for its performance and environmental benefits, but also for its economic accessibility will remain a priority in the seasons ahead.

Looking forward, we see tremendous opportunities to highlight propane’s role in reducing emissions, enhancing energy security, and serving as a flexible partner in the clean energy transition. Together, we will continue to elevate propane’s story, advance our industry, and equip our members with the tools and resources they need to thrive.

I encourage you to stay engaged—join us at upcoming meetings, lend your voice to our advocacy efforts, and continue sharing your expertise with fellow members and your customers. Your active participation is what keeps our association strong, effective, and forward-thinking. Thank you for your dedication and ongoing support

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2025 REBATES STILL AVAILABLE The PPGA has rebate funds available for you and your propane customers to take advantage of in 2025. Click here for more information.

2025 rebates include: • Propane Safe Appliance Installation (Residential) Rebate • On Road Propane Vehicle Rebate • Regulator Rebate • Hawaii Safe Appliance Installation (Commercial) Rebate • Duty to Warn Rebate • DOT Compliance Education Rebate Rebates are available until December 31 or while funds are available.

For more information and applications, visit pacificpga.org and click on Rebates.

PPGA News

THE PASSING OF LANA BUTTERFIELD PPGA is saddened to share the news of the passing of Lana Butterfield last month. Lana was PPGA’s long-time government relations consultant in Oregon where she was an advocate for the propane industry in Salem with lawmakers and regulators.

Lana Marlene (Roberts) Butterfield was called home by our Lord on November 13, 2025, at the age of 70, after a long struggle with failing health. She was a Baptized child of God. Lana resided with her husband of 47 years, Bradley Butterfield, in Wilsonville, Oregon. She was born in Denver, Colorado, on July 20, 1955, as the fifth of seven children.

As a grade-schooler, Lana moved with her family from a house in Aspen Park, Colorado, that her father built, to Washington in 1965. She graduated from Fort Vancouver High School in 1973.

She later graduated with honors from both Concordia Junior College in Portland in 1975 and Oregon State University in 1977, with a degree in Music Journalism. It was while attending Concordia Junior College that she met Brad. They later married on April 2, 1978, at Grace Lutheran Church in Vancouver, Washington. They lived in Portland and later moved to Wilsonville, Oregon, where they had been for the past 31 years.

Lana took piano and organ lessons during her youth. Her siblings recall that she would often avoid cleaning up after meals with the rest of them by claiming she had to practice on the family’s old upright piano. She got away with it because their mother loved to hear her play. As an adult, she played the organ at various churches in the Portland area. One of her personal achievements was learning to play Bach’s Toccata and Fugue in D Minor on the organ. Lana took her talents further. As a lifelong LCMS Lutheran, her church work over the years included playing the organ and piano, directing and singing in the choir, and reading Scripture for service, as well as being involved with helping rewrite bylaws and doing evangelism. Lana would invite her pastor from Our Redeemer Lutheran Church in Tigard, Oregon to say prayers at the Oregon State Capitol during legislative sessions.

Her first job was with Gardener & Beadon, a now-closed lighting company in Portland, where she compiled a product catalogue. After that, she worked as secretary to President Emil G. Jaech of the Northwest District of the Lutheran Church, Missouri Synod in Portland, OR. She also worked for the Portland Trailblazers during that time, as well as joining Toastmasters and becoming an accomplished speaker. In 1986,

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Lana opened Butterfield Communication Services as one of the first independent women lobbyists in Oregon. She retired 38 years later in November 2024. Her clients included many in the insurance industry, as well as the Oregon Rail User League, Pacific Propane Gas Association, and Clackamas Community College. She also did pro bono work for Liberty House Children’s Advocacy Center.

Lana loved to laugh – at funny and ridiculous things – and her laugh was contagious. She also loved their cats, Schokolade and Sherwynne, both Birmans, and new kitty Sylvie, a Tortoiseshell (Tortie). Lana and Brad collected hand-blown glass. They even bought a kiln and took classes so they could make Fused glassware in their garage, which they sold and gave away, and entered pieces in the fair. She also loved to sit and watch the play of leaves in their three “quaking” Aspen trees, reminding her of Colorado, and the many birds flitting around the flowers.

Her favorite flowers were Alstroemeria and Roses.

Lana lived with Type 1 diabetes almost her whole life, as did her oldest brother, Richard. He was involved in developing the insulin pump and was a beta tester for the first prototypes. He assisted Lana in procuring and using an early insulin pump and later versions as they were developed, which much improved her health.

Lana is survived by her husband, Bradley, and siblings Diane May, Steven Roberts, Carolyn Hamaker, Terri Spaeth-Merrick, Paula Murakami, and many nieces and nephews. Lana was preceded in death by her parents, Paul Roberts and Katherine (Merrick) Roberts, and her oldest brother, Richard Roberts. In lieu of flowers, please donate in Lana’s memory to Our Redeemer Preschool’s Tuition Assistance Fund.

Let not your hearts be troubled. Believe in God; believe also in me. In my Father’s house are many rooms. If it were not so, would I have told you that I go to prepare a place for you? And if I go and prepare a place for you, I will come again and will take you to myself, that where I am you may be also. John 14:1-3

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POWERING TIME TO RE-COMPUTE

BY TUCKER PERKINS, PRESIDENT AND CEO PROPANE EDUCATION & RESEARCH COUNCIL

It’s hard to read any energy news these days without bumping into a story about how AI data centers and crypto mines are about to take down the national grid. The demand projections are “creating chaos in utility planning,” according to one source. Alarmists are worrying out loud about everything from grid capacity to grid fragility. On the latter note, there is no question that the grid is aging, much of it having been built more than 50 years ago. Some 30% of U.S. transmission and 46% of distribution assets are beyond, or close to, their useful life.

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The situation has me reflecting on a big shift taking place in the energy transition conversation. The ink allocated by the press to climate change for a full decade or more is now flowing into a power shortage narrative. At the macro level, the competing forces of supply and demand frame the story. At the ground level, on the other hand, the situation sounds like this: As AI swallows up entire zip codes of supply all over the country, the average homeowner is watching their monthly electric bill go through the roof and wondering whether to pay for heating or eating.

EIA’s latest data confirms the trend. On average, residential retail prices for a kWH increased 5.2% over last July and power prices for the transportation sector have popped by 8.5% during the same period. Should we blame the price hikes all on data centers? The math, as the saying goes, “is mathing” in that direction. Bloomberg reports that wholesale electricity costs as much as 267% more than it did five years ago in areas near data centers, and that the increases are being passed directly onto ratepayers.

“The main thing is the plain thing,” I once heard said. And the plain thing these days is that supply cannot meet demand. Timeto-compute can only be shortened by working around grid capacity constraints, so assuming we do want the U.S. to win the AI race against competitor countries, we have to adopt new criteria for data centers’ build out. erberg, who said the company’s U.S. spending through 2028 was “probably going to be something like $600 billion.” Meta, along with Alphabet, Microsoft, and Amazon, are expected to spend about $400 billion in 2026 alone on data centers.

It’s easy to look into the future and see trainloads of angry consumers coming down the tracks when they realize they are subsidizing Amazon, Google, Meta, and OpenAI, among others.

My view of power demand is that it’s big but won’t be as massive as is currently projected. The enormous projections for power simply cannot be met without an extraordinary alignment of capital investment, grid investment, regulatory streamlining, low energy prices, and an easing of supply constraints.

WILL DEMAND WEAKEN? It would be nice if a way existed to quickly bring balance to the supply vs. demand curve in play right now, but Lawrence Berkeley National Laboratory said in a recent report that by 2030, data centers are forecast to consume between 325 TWh and 580 TWh of electricity per year, equivalent to 6.7% to 12% of all U.S. consumption.

WILL SUPPLY STRENGTHEN? On the supply side of the power shortage challenge is the need for more generation. Small modular nuclear reactors (SMNRs) have many industry thinkers excited. The technology appears to be great but time-to-compute(the amount of time it takes to get a reactor permitted, built, and connected to a data center where revenue is being generated), is well over seven years.

Likewise, the Wall Street Journal recently reported on the oceans of money flowing into AI data center construction. One of the more striking quotes was from Meta’s CEO, Mark Zuck-

TerraPower’s 345 MW small modular Natrium reactor in Wyoming has been under construction since 2024 and won’t be ready until 2030. Even when it’s done, it won’t satisfy a data

THE PROPANE POST • WINTER 2025 | 9

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center’s appetite. Allison Macfarlane, the former chair of the US Nuclear Regulatory Commission summed up the nuclear option for AI in an interview not long ago. She said, “Commercializing the [SMNR] technology will be difficult because a smaller reactor core also means a less efficient reactor – producing less energy from the same amount of fuel. You just can’t get around economies of scale. These are fun ideas, but the tech bros don’t seem to be grounded in reality.”

The reality at the moment is that hyperscalers need even more power than SMNRs can deliver alone, which means any nuclear plants capable of meeting their requirements take much longer, and the costs are mind-blowing. Units like Plant Vogtle near Waynesboro, Georgia, a 3.3 GW station that first started construction in 1987 and was just completed in 2023 – 36 years –

Powering the Digital Age

Read NPGA’s newlypublished analysis of propane’s role in Powering the Digital Age low-emissions data Propane’s Role in Low-Emission Data Center Infrastructure center infrastructure in Powering the Digital Age. Learn how the rapid expansion of data centers is a defining challenge for the U.S. energy system.

Data center facilities are no longer niche components of the digital economy but critical infrastructure underpinning commerce, communication, and national competitiveness.

Their extraordinary growth trajectory is colliding with a power sector already strained by transmission bottlenecks, interconnection delays, and decarbonization initiatives. Propane merits serious consideration as part of the data center energy portfolio. Its attributes—portable storage, indefinite shelf life, nationwide delivery infrastructure, and significantly lower emissions than diesel—position propane as a fuel capable of bridging immediate reliability needs with longer-term sustainability goals.

For more information, contact Austin Wicker, NPGA Senior Manager State Affairs.

WHITE PAPER

Austin Wicker Nicholas Edward, Editor

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came in at a price tag of well over $50 billion. Money aside, that time-to-compute doesn’t work.

Natural gas is a faster alternative, but time-to-compute isn’t much better than for an SMNR plant. New natural gas plants can take 5 to 7 years to come online and the day the first permit is filed for a new power station is the same day the gasfired turbines for that station need to be ordered. Wait time for turbines is now over seven years and, of course, the costs, now up by 2.5X, are reflective of the demand. Natural gas fuel prices aren’t helping the matter either. Not long ago, prices at the Henry Hub jumped 57.6%, to $3.31 per million British thermal units. Pair all of this with the fact that natural gas pipelines are themselves a grid to which a data center must be connected, and you find yourself with a similar layer of problems associated with nuclear electrification.

What about solar? Yes, it’s intermittent power, but the Solar Energy Industry Association reports that more than 8,100 major solar projects currently in their database represent over 339 GW of capacity, which is a lot. EIA says that 63 gigawatts of new utility-scale solar capacity will be added in the U.S. this year. Subsidies for solar, however, are being clawed back by the government and by 2026, the ability to get a permit for a utility scale solar installation will be much tougher. Utility-scale solar today is more than 80% cheaper than it was a decade and a half ago, so the attractiveness of the cost does open an opportunity but what about time-to-compute? Permitting and construction aren’t the most difficult part of the equation; grid capacity is the challenge. The typical timeframe from connection request to commercial operation has now hit five years or more.

TIME TO RE-COMPUTE “The main thing is the plain thing,” I once heard said. And the plain thing these days is that supply cannot meet demand.

Time-to-compute can only be shortened by working around grid capacity constraints, so assuming we do want the U.S. to win the AI race against competitor countries, we have to adopt new criteria for data centers’ build out.

GET OFF-GRID Data centers have to go off-grid because the grid doesn’t have, and won’t have for many years to come, the capacity to manage the supply even if it were plentiful. When the power can’t get to the place it’s needed, it’s wasted. Further, if data centers are going to be formatted at hyperscale size, they must be moved away from population centers and not on top of productive agricultural land. Ratepayers, jolted into a panic by their rising electric bills, are going to become anti-data center activists and eventually, they’re going to build a list of grievances that elected officials and regulators won’t be able to ignore.

GET CLEAN Local residents are beginning to challenge new data center installations for an array of reasons, including health concerns from gas turbine emission concentrations. Those same concerns will eventually eliminate diesel-based power generation from the option set as well. The electric grid, energized as it is today, certainly is not the cleanest source of power.

GET COMPACT Are gigantic-sized data centers the only template available today?

OpenAI’s Stargate facility in Abilene, Texas, is a 1.2 GW facility.

Amazon’s data center outside of New Carlisle, Indiana, will consume 2.2 GW, enough to power 1 million homes, when it’s built out. Meta is building a 4 million square foot, 2 GW capacity data center in Richland Parish, Louisiana. The second phase of Elon Musk’s Tennessee-based data center is slated to devour 1.5 GW of power. While the answer to the question seems to be “yes,” the reality is, gigantic does not have to be the model.

Meta has already broken the mold. It’s using tent-like structures at its data center in New Albany, Ohio, to cut time-tocompute in half. There, the first five buildings took three years to build. Meta started building five ~125,000 square foot tents

between April and June and expects them to be complete within a year. Aerial images taken a month ago show that all five structures have already been built.

On my Path to Zero podcast episodes, I often hand guests an imaginary magic wand and ask them to wave it to make a profound change to today’s energy-climate-power puzzles. The question often unlocks a fantastic idea from a brilliant guest and having experienced the power of the device first-hand, I’ll wave it now.

Getting off-grid, getting clean, and getting compact naturally changes the trajectory of data center design away from “mammothication.” When these three concepts frame the design, solutions come quickly into view. Imagine remote-located, grid-independent, human-scaled data centers powered by solar plus utility-scale batteries reinforced by propane or renewable propane generators to solve for intermittency, and voila! Many of the data center downsides we’re facing today are quickly managed and time-to-compute is accelerated.

There you have it. And the best news of all is that we have what we need today to solve the challenges of tomorrow.

You can count on Teeco for the best equipment, knowledgeable associates and professional services. Call today to find out how we can help you.

Teeco Products, Inc. | 1601 Pike Street NW | Auburn, WA 98001 | 800-426-9456

www.teecoproducts.com Teeco is a Proud Member of Our Local and National Propane Industry Associations

THE PROPANE POST • WINTER 2025 | 11

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VERTICAL FARMS GROW YEAR-ROUND THANKS TO PROPANE

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Propane systems offer an efficient, scalable way to manage building heating, water heating, and more, all while helping to reduce energy costs and simplify maintenance.

Vertical farming is sparking innovation in the food supply chain by opening regions to agriculture where traditional farming is more difficult. This type of farming consists of growing crops in stacked layers, often within climate-controlled buildings such as warehouses, greenhouses, or repurposed shipping containers.

Vertical farming allows farmers to produce food year-round while dramatically reducing land and water needs, helping bring fresh produce closer to urban populations with more sustainability.

Like other controlled-environment agriculture (CEA) operations, vertical farms require sophisticated systems that dial in temperature, humidity, lighting, and CO₂ levels to keep crops healthy and productive. That’s why many vertical farms leverage propane: a reliable, clean, and efficient energy source optimized for precision farming.

From maintaining stable indoor temperatures to providing reliable backup power when the electric grid falls short, propane keeps vertical farms thriving through every season. It also furthers the mission of CEA by providing energy on-site in off-grid locations where electricity and natural gas access can be inconsistent.

A RELIABLE HEAT SOURCE FOR VERTICAL FARMS WHEN THE STAKES ARE HIGH In any indoor agriculture operation, temperature consistency is critical. Whether it’s a greenhouse or a warehouse, a small dip in indoor air temperature can put crops at risk. For farmers nationwide, propane is a dependable heat source that delivers immediate, consistent warmth to maintain optimal conditions regardless of weather.

Propane-powered heating systems offer thermal efficiencies of up to 95 percent and can be scaled to meet the needs of small or large facilities. Propane equipment also features zoned heating options to accommodate tiered or segmented growing systems. Unlike electric heat, which can be slower to respond to temperature fluctuations and more expensive to operate, propane provides powerful heating performance without exposing growers to peak electricity pricing. And in rural areas unreached by natural gas pipelines, propane offers greater energy independence because it is stored on-site.

A CLEAN, ALWAYS-READY BACKUP POWER SOLUTION Backup power isn’t just optional for indoor farms, it’s essential. Even a brief power outage can kill crops, waste energy, and damage expensive lighting and irrigation systems. Propane

generators activate within seconds of a grid failure, ensuring continuity for lighting, heating, ventilation, and other critical systems in vertical farms.

In addition to reliability, propane backup systems offer environmental and operational advantages. Compared with diesel generators, propane produces fewer greenhouse gas emissions and virtually no particulate matter, making it a cleaner choice for enclosed or urban environments. Moreover, propane doesn’t degrade over time like diesel does, so it can be stored indefinitely, always ready to perform when it’s needed most.

For all these reasons and more, many growers choose propane generators not just for backup, but as part of a broader energy management strategy, particularly in regions where electrical infrastructure is aging or unreliable.

ENERGY EFFICIENCY THAT ADDS UP An important factor driving vertical farm production is the ability to limit water consumption. CEA leafy green producers use up to 90% less water than traditional farms. But, there’s a tradeoff. Vertical farms use almost 100x the energy of outdoor farms, largely because they replace the sun with UV lighting.

Propane systems offer an efficient, scalable way to manage building heating, water heating, and more, all while helping to reduce energy costs and simplify maintenance. Because propane burns cleanly, it makes equipment more resilient. Plus, propane-powered equipment requires less frequent maintenance than alternatives due to more efficient engine design.

Additionally, some growers incorporate propane-powered combined heat and power (CHP) units into their facilities.

These systems offer higher overall energy efficiency and provide greater energy independence for high-demand operations.

A STRONG ENERGY PARTNER FOR VERTICAL FARMS, NO MATTER THE MARKET Thousands of greenhouses across the U.S. rely on propane to maintain consistent temperatures through colder seasons. Vertical farmers are taking the hint. Propane supports consistent plant health through dependable heating, protects infrastructure and crops with fast-acting backup power, and offers lower emissions and operating costs compared to many traditional energy sources. It’s a valuable tool for both indoor growers and traditional farmers who can’t afford downtime, inefficiency, or risk to their harvest.

Learn more about propane-powered farming solutions at Propane.com/Agriculture.

THE PROPANE POST • WINTER 2025 | 13

Safety

KEY FACTORS TO CONSIDER WHEN DETERMINING PROPANE TANK PLACEMENT Learn how to safely and strategically place propane tanks in residential builds while meeting NFPA 58 and design goals.

When planning for propane tank installation to supply residential appliances and systems, builders, architects, and landscape designers need to consider the logistics of where the tank will be installed. Propane tanks don’t have to disrupt your carefully planned design. There are proven ways to minimize their visual presence and important regulations you must follow.

The first decision is whether to use an above-ground or buried underground tank. Curb appeal and maximizing yard space may be important factors. The next step is to work with the local propane providers to determine tank size needed for the home.

The size of the tank should be based on the anticipated load, any future additional load potential, the anticipated lowest ambient temperature, and the vaporization rate of the container.

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This will then dictate local regulations you must follow, safety guidelines for the tank type, and how the propane servicer will access the tank for deliveries.

For larger developments with multiple homes and shared amenities, a community propane system (CPS) is another option that builders may want to consider.

PROPANE: A SAFE BET FOR ENERGY INDEPENDENCE Before we discuss the different tank types and installation factors, it’s important to understand that the tanks themselves are designed and manufactured to withstand weather, a wide range of temperatures, and underground burial while maintaining their safety. In fact, there are still DOT propane tanks in

the field that were manufactured in the 1950’s. As long as the container is properly installed and maintained, there is not a limitation on how long it can be in the field.

Propane is a non-toxic fuel that vaporizes at atmospheric pressure when released and will not contaminate soil or groundwater. Propane tanks are typically manufactured from high-grade steel with welded seams, are tested throughout production, and meet manufacturing standards required by the American Society of Mechanical Engineers (ASME), Department of Transportation (DOT), or Transport Canada (TC) for their safety.

ABOVE-GROUND PROPANE TANKS ASME tanks are large, fixed tanks appropriate for residential or commercial installation with a capacity of 28.6 to 2000+ gallons, although the most common sizes are 120 to 2,000 gallons. DOT and TC cylinders are portable and are measured in pounds of propane they hold. Their capacity is up to 1,000 pounds.

Larger above-ground ASME tanks typically have a horizontal profile and are installed in the yard. For applications with space limitations, there are smaller ASME or DOT containers that can be installed horizontally or vertically, depending on their design, and can be set right up against a structure.

ignition sources. This reduces fire risk in the rare case of a tank leak or propane release.

Distance from buildings and property lines Distances are determined by the propane tank size and whether it is an above-ground or underground tank. NFPA 58 also mandates the separation distance between adjacent containers.

• 125- to 500-gallon above-ground propane tanks must be placed at least 10 feet from any building and property line, while containers with less than 125-gallon capacity can be placed next to a building with certain restrictions.

• 1,000- to 2,000-gallon above-ground tanks must be placed at least 25 feet from a building or property line.

Under certain circumstances (a single tank of 1,200 gallons or less that is at least 25 feet from any container of more than 125-gallon capacity), that distance can be reduced to 10 feet.

• Underground tanks up to 2,000 gallons must be placed a minimum of 10 feet from buildings and property lines.

• The minimum separation distance between containers with capacities from 251 gallons to 2,000 gallons is 3 feet.

That distance is reduced to 0 feet for containers with capacities of 250 gallons or less.

UNDERGROUND PROPANE TANKS Underground tanks have similar capacity, but they are buried under the ground. These tanks have specialized features to ensure safety and prevent corrosion. They work similarly to above-ground tanks, but the earth surrounding the tank provides insulation, protecting it from extreme temperatures and the elements. Underground tanks use protective coatings and cathodic protection to prevent corrosion of the tank’s metal. When a steel propane tank is buried underground, it’s exposed to soil and moisture, which creates an electrochemical cell that leads to corrosion. Cathodic protection is a corrosion prevention technique that makes the tank the cathode of an electrochemical cell by connecting it to a more easily corroded sacrificial metal (usually magnesium) to act as the anode.

Buried tanks are a good option for smaller yards and custom homes as they don’t take up yard space and have a minimal visual impact. While the tank is buried, they have a small dome above ground for access to a riser that contains valves and gauges. That said, the area above the tank should remain clear of everything except landscaping.

FACTORS IN DETERMINING TANK LOCATION NFPA 58 mandates minimum distance requirements for propane containers from buildings, property lines, entry doors and windows, appliance intake and exhaust terminations, and THE PROPANE POST • WINTER 2025 | 15

Safety

Distance from pressure relief valve to buildings openings In addition, NFPA 58 mandates the separation distance from a container pressure relief valve and building openings: • The distance horizontally from the relief valve discharge to an opening below the discharge is 3 feet for cylinders and 5 feet for ASME tanks.

• The distance from the discharge point of a relief valve, vent discharge, and filling connection to exterior source of ignition, openings into direct-vent appliances, and mechanical ventilation air intakes is 5 feet for cylinders that are exchanged, meaning transported full to the customer site to be exchanged with an empty cylinder.

• Cylinders and ASME tanks filled at the point of use must maintain a distance of 10 feet.

Best practices for safe and easy delivery To ensure propane delivery trucks can safely clear overhead power lines and driveways it’s vital to locate propane tanks according to NFPA 58 rules: • An aboveground container and any of its parts shall not be located within 6 feet of a vertical plane beneath overhead power lines over 600 volts.

• Combustible material shall not be stored within 10 feet of the container.

Underground tank depth guidelines NFPA 58 also provides depth guidelines for underground tanks: • Underground tanks in areas with no vehicular traffic must be buried at least 6 inches below grade.

• Underground tanks within 10 feet of vehicle thoroughfare or parking locations must be at least 18 inches below grade.

THE PERFECT PROPANE TANK LOCATION Finding the perfect propane tank location requires balancing homeowner aesthetic preferences, a property’s space limitations, and regulatory mandates. While following NFPA 58 standards is imperative, you may need to also consider local or region-specific regulations when determining propane tank placement. Check with the local authority having jurisdiction (AHJ), such as the fire marshal, for any local installation requirements. And be sure to work with your local propane supplier when determining tank location, as they or their contractor will likely be installing the tank.

Support Your Industry, Donate to NPGA’s PropanePAC The NPGA is committed to being a powerful and effective voice for the propane gas industry in Washington, D.C. PropanePAC, the political action committee of NPGA, strengthens the association’s advocacy efforts by supporting pro-industry lawmakers in Congress.

Businesses, including NPGA’s corporate members, are forbidden from directly contributing money to PACs. All contributions to PropanePAC must be from individuals, such as propane company executives and employees. The success of the PAC is dependent on receiving financial support from individual supporters.

PROPANEPAC ELIGIBILITY To be eligible to contribute to PropanePAC, your company must first grant prior authorization to NPGA. CLICK HERE TO GRANT PRIOR AUTHORIZATION

PROPANEPAC WEBSITE ACCESS If you are already eligible to participate in PAC activities, you can access PropanePAC’s website.

CLICK HERE TO LOGIN

LEGAL INFORMATION ABOUT PROPANEPAC: Contributions to PropanePAC are not deductible for federal income tax purposes. Participation in PropanePAC is strictly voluntary; every individual has the right to refuse to participate without fear of reprisal. Contribution guidelines are merely suggestions. Individuals may contribute more or less then the guidelines, or nothing at all, and will not be favored or disadvantaged by reason of the amount contributed or their decision not to contribute. PropanePAC may only accept personal contributions. Corporate contributions are prohibited. Contributions to PropanePAC will be used in connection with federal elections and are subject to the prohibitions and limitations of the Federal Election Campaign Act. You must be a U.S. Citizen or Permanent Resident Alien (i.e., a Green Card holder residing in the U.S.) to make a contribution.

Federal law requires PropanePAC to make its best effort to report the name, mailing address, occupation, and name of employer of individuals whose contribution exceeds $200 in a calendar year.

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Industry News

THE OREGON DEPARTMENT OF ENERGY (ODOE) APPROVES OREGON ENERGY STRATEGY ODOE recently released its final energy strategy plan. PPGA member, Bryan Adams of CoEnergy Propane, provided tremendous representation for the propane industry on the Advisory Group. While, unsurprisingly, the report heavily promotes electrification and makes broad pro-electrification assumptions, the PPGA will work on identifying propane solutions to help meet Oregon’s long-term energy and environmental goals.

The strategy identifies five major “pathways” that will shape Oregon’s energy future. These are broad themes, each with recommended policies and near-term actions. These pathways include: • Energy Efficiency – Boost efficiency across buildings, industry and transportation. Make better use of energy so less is wasted.

• Electrification – Increase the use of electricity (especially clean electricity) in end-uses previously dominated by other fuels (e.g., vehicles, heating) while maintaining reliability and affordability.

• Clean Electricity – Expand zero- or low-carbon electricity generation, improve grid flexibility and transmission, and ensure the clean power supply can meet increased demand.

• Low-Carbon Fuels – For sectors that are hard to electrify (certain industrial uses, heavy transport, etc.), move toward low-carbon alternatives (bio-fuels, hydrogen, etc.).

• Resilience – Strengthen the energy system’s resilience: infrastructure must withstand climate impacts, extreme weather, disruptions, supply-chain issues. Equity (especially for disadvantaged communities) is built into this pathway.

You can read the full report here.

OREGON ENERGY STRATEGY Submitted to the

GOVERNOR and OREGON LEGISLATURE by the

OREGON DEPARTMENT OF ENERGY

November 2025

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THE PROPANE POST • WINTER 2025 | 17

Industry News

PROPANE STOCKS REACH RECORD LEVELS WHILE RESIDENTIAL SPACE HEATING WITH ELECTRICITY ON THE RISE American field production of propane, which has skyrocketed over the last 15 years, continues to surge. In July 2025 (the most recent month for which data is available), the U.S. produced 72.3 million barrels of propane – a record monthly amount. For comparison, in July 2010 the U.S. produced only 17.6 million barrels. Put another way, monthly propane production has increased more than fourfold since 2010. And as the space heating and crop drying season begins across the country, U.S. propane stocks – less propylene barrels at terminals – have reached an all-time high of 103.4 million barrels, according to EIA data.

The United States is the world’s premier producer and supplier of propane. Domestically, propane remains a clean and affordable way to provide energy to residential homes, commercial buildings, industrial facilities, farms, and to power both stationary and mobile engine applications.

While propane supply continues to grow residential space heating with electricity is on the rise. As detailed by the U.S. Census Bureau’s American Community Survey, in 2024, 42% of American households used electricity for primary residential space heating, an increase of 7% from 2010 when this figure was only

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35% nationally. Put another way, electricity’s residential heating market share increased 20% over the last 14 years. During this same 14-year period, the percentage of Americans who used natural gas for household heating declined from 49% to 47%.

While natural gas is still the most common residential thermal fuel, its overall market share has shrunk.

Last year, across the country, 5% of households used propane for primary space heating – the same aggregate market penetration as 14 years earlier. Among delivered fuels, propane stood alone in maintaining market share. In 2010, 6% of households used heating oil and 2% relied on wood. In 2024, those figures declined to 4% and 1%, respectively. In 2018, propane’s residential space heating market share surpassed heating oil, and has remained there ever since. Clearly, some homeowners who once burned heating oil or wood have transitioned to propane, which is great for air quality and public health.

Last year, 53% of all propane sales were to the residential sector, with the lion’s share of fuel being used for space heating.

IPGA is focused on protecting and growing propane’s use as a clean-burning thermal fuel.

Member News

TREMCAR ACQUIRES PACIFIC TRUCK TANK, EXPANDING ITS U.S. PRESENCE Tremcar, a leading North American manufacturer of tank trailers and truck-mounted tanks for the transport of liquid and dry bulk products, is proud to announce the acquisition of Pacific Truck Tank, based in Sacramento, California. This acquisition represents an important step in Tremcar’s strategic plan to expand its market presence in the United States. By joining forces with Pacific Truck Tank, Tremcar will strengthen its position in the petroleum and propane sectors, and better serve customers across the western U.S. and western Canada.

Founded in 1981, Pacific Truck Tank has earned a solid reputation for manufacturing and servicing custom petroleum and propane delivery units, including propane bobtails, LPG service trucks, and petroleum bobtails. Operating from a 22,000-square-foot facility with six large work bays, the Sacramento-based company serves customers throughout the western U.S. and western Canada. The company is a DOT-registered shop and holds an ASME “R” Stamp #2483, demonstrating its commitment to quality and safety.

“We are thrilled to welcome Pacific Truck Tank to the Tremcar family,” said Daniel Tremblay, President of Tremcar. “This acquisition allows us to reinforce our service offering in the petroleum and propane industries while extending Tremcar’s footprint across the western United States. It will also generate additional work for our manufacturing plants in Ohio, Massachusetts and Québec, strengthening our North American operations.”

Kirby Fleming (left), Daniel Tremblay (center), Jerry Jones (right)

For Tremcar, this move marks another step in its long-term vision to strengthen its North American manufacturing and service network, offering top-quality tanks and service solutions across Canada and the United States.

As part of the acquisition, Pacific Truck Tank’s owners and employees will remain with the company, ensuring continuity of expertise, customer relationships, and operational excellence.

Tremcar plans to maintain the Sacramento facility as a strategic service and assembly hub for U.S. customers.

ABOUT TREMCAR Founded in 1962, Tremcar Inc. is a leading manufacturer of tank trailers and truck-mounted tanks for the transport of food, chemical, petroleum, and dry bulk products. Headquartered in Saint-Jean-sur-Richelieu, Québec, Tremcar operates multiple manufacturing plants and service centers across Canada and the United States.

“This partnership brings together two companies with shared values — quality, innovation, and customer dedication,” said Kirby Fleming, President of Pacific Truck Tank. Jerry Jones, Vice President of Pacific Truck Tank added, “By joining Tremcar, we gain access to broader resources and manufacturing capacity while continuing to serve our loyal customers with the same trusted team.”

ABOUT PACIFIC TRUCK TANK Founded in 1981 and located in Sacramento, California, Pacific Truck Tank, Inc. specializes in the design, manufacture, and service of custom petroleum and propane delivery units. The company serves clients across the western U.S. and Canada, operating from a 22,000-square-foot facility equipped for largescale custom builds.

THE PROPANE POST • WINTER 2025 | 19

NPGA Updates

WHITE HOUSE ISSUES MEDIUM- AND HEAVY-DUTY TRUCK, PARTS, AND BUS TARIFFS Effective November 1, 2025, the U.S. will implement a 25% tariff on imported medium- and heavy-duty trucks and their parts and covered buses will have a 10% tariff.

FEDERAL APPELLATE COURT FAILS TO PROTECT CONSUMERS On Wednesday, November 4, 2025, the United States Court of Appeals for the D.C. Circuit ruled 2-1 against NPGA and our coalition, including the natural gas sector, in our challenge to DOE appliance efficiency standards for residential furnaces and commercial water heaters. NPGA President and CEO NPGA President & CEO Stephen Kaminski released the following statement: NPGA is disappointed in the decision of the majority, and agrees with the reasoned analysis of the dissent. The Department of Energy utilized flawed assumptions in its economic analysis and employed flawed reasoning regarding performance characteristics which will inevitably lead to product unavailability, and increased costs and burdens to millions of Americans. NPGA and its coalition partners have already met with our lawyers and will be taking all necessary steps in response to this ruling to ensure Americans can have energy choice without needless, excessive costs or government interference.

MAJOR VICTORY: NEW YORK AGREES TO SUSPEND GAS BAN THROUGH CONCLUSION OF APPELLATE LITIGATION On November 12, 2025, a coalition led by the National Propane Gas Association, the New York Propane Gas Association, and Mulhern Gas of Hudson, NY challenging the New York state gas ban entered into a settlement with the state to suspend the gas ban until the conclusion of appellate litigation. This comes after our coalition filed an injunction petition to suspend the law pending appeal before the U.S. Court of Appeals for the Second Circuit.

The New York state All-Electric Buildings Act was previously set to take effect on January 1, 2026 and would have banned fuel gas infrastructure and gas appliances in most newly constructed buildings, including all residences. Our merits lawsuit challenging the gas ban and seeking to have it struck down permanently is still proceeding before the Second Circuit.

ENERGY CHOICE ACT MOVES FORWARD On Wednesday, December 3, the House Energy and Commerce Committee passed the Energy Choice Act out of committee by a vote of 24 – 21. This development tees up the legislation for a House floor vote, representing another significant step in the legislative process.

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The Energy Choice Act is one of NPGA’s top legislative priorities for 2025 and was a top policy ask during this year’s Propane Days. In fact, prior to Propane Days, the Energy Choice Act only had 43 cosponsors in the House. To date, the legislation currently has 137 cosponsors. This growth in interest is indicative of the work NPGA and its members have put into advancing this crucial piece of legislation.

To put the following into perspective, the Energy Choice Act had only 25 cosponsors in the House during the entire 118th Congress (2023-2024) and lacked a Senate companion bill. However, for the first time, this Congress (119th), NPGA helped to secure an Energy Choice Act bill in the Senate. This legislation has come a long way, but there is still a lot of work to be done.

NPGA is eager for the next steps in the process, including the Full House taking up the bill for a vote and similar consideration in the Senate. Staff will continue to meet with lawmakers and their staff on Capitol Hill to promote the Energy Choice Act and work to get it across the finish line.

LIHEAP FUNDS RELEASED TO THE STATES The U.S. Department of Health and Human Services (HHS) released $3.7 billion in Low Income Home Energy Assistance Program (LIHEAP) funding to state and tribal governments last Friday, November 28, 2025. HHS has yet to issue an official statement on the release of funds; however, its Office of Community Services website has posted information on the funds released and the specific amounts allocated to each grant recipient.

SEASONAL HOURS OF SERVICE WAIVER DENIED On December 2nd, 2025, the Federal Motor Carrier Safety Administration (FMCSA) denied NPGA’s application for a seasonal hours of service waiver between December 15th and March 15th. NPGA had applied for the waiver based on recommendations and advice from FMCSA based on responses to emergency waivers granted during the Winter of 2025. While NPGA received significant public support for its application, FMCSA found that NPGA did not show that the waiver would provide an equivalent level of safety to existing hours of service regulations. FMCSA also claimed NPGA did not provide a safety analysis of the impacts of the proposed seasonal waiver.

NPGA will be evaluating the seasonal waiver application in the coming months and considering all available options. NPGA will continue to seek emergency regional waivers under necessary conditions, as it has every year, to ensure safe, reliable delivery of propane in challenging conditions. For questions or additional information, please contact NPGA SVP for Regulatory and Industry Affairs Benjamin Nussdorf.

PPGA Summer Conference August 12-14, 2026 Skamania Lodge | Stevenson, Washington

BOARD OF DIRECTORS & LEADERSHIP | 2025-2027 PRESIDENT Gary Kelly City Service Valcon VICE PRESIDENT Glen Willmott Kiva United Energy SECRETARY/TREASURER Ryan Nootenboom Skagit Farmers Supply DIRECTORS Bryan Adams CoEnergy Propane Jeremy Ball American Gas Services Justin Carey Valley Wide Co-op Casey Dell American Distributing Bruce Engeman R&D Propane Alex Gallard Blue Star Gas

Advertiser Index CHS........................................................................................................2

STAFF Executive Director Matt Solak matt@kdafirm.com Deputy Executive Director Derek Dalling derek@kdafirm.com Events Director Lauren Concannon lauren@kdafirm.com

FEI, Inc................................................................................................ 17 Pacific Truck Tank, Inc. ....................................................................15 Teeco Products, Inc............................................................................11

Financial Director Erin Dalling erin@kdafirm.com Member Services Director Trina Miller trina@kdafirm.com

2026 Upcoming Events

Creative & Communications Director Melissa Travis melissa@kdafirm.com

NPGA Winter Board Meeting......................................January 27-29 Henderson, Nevada

Administrative Assistant Brooklyn Heath brooklyn@kdafirm.com

Southeastern Propane Expo............................................. April 19-21 Nashville, Tennessee Western Propane Convention & Trade Show.................. May 11-15 Portland, Oregon

Emily Ochoa Christensen

NPGA Board Meeting & Propane Days............................... June 7-9 Washington, DC

Adam Schultz LPG Specialties

PPGA Summer Convention...........................................August 12-14 Stevenson, Washington

Bert Turn FEI, Inc. Alaska State Director Casandra Russo AmeriGas Hawaii State Director Zoe Williams Hawaii Gas Oregon State Director Ryan Buller McMinnville Gas Washington State Director Vacant

PACIFIC PROPANE GAS ASSOCIATION 629 W. Hillsdale Street | Lansing, Michigan 48933 P: (844) 585-4940 | F: (517) 485-9408 pacificpga.org | ppga@kdafirm.com