How state associations protect the propane industry

Attention, propane marketers. Your industry colleagues working across state and regional associations are calling, and they’d like for you to get involved.

No one knows more about the work taking place behind the scenes at this level than Jacob Peterson, senior director of state advocacy and affairs at the National Propane Gas Association (NPGA). It’s not a stretch to say that Peterson has a close relationship with the 36 state and regional association executives leading the industry at this level.

“I have yet to be invited to one of their weddings,” he laughs. “I’m hoping to change that at some point in the future.”

Their lines of communication are always open. He literally communicates daily – through emails, phone calls, texts – with members of this tight-knit group. They have candid conversations about the actions impacting the industry – both the good and the bad.

Peterson and NPGA use computer software to track the bills that are making their way through statehouses across the country. Keywords and phrases are key to ensure nothing detrimental to the industry gets past them. For example, in addition to “propane,” maybe the legislation is related to “electrification,” “autogas” or “data centers.” Maybe it’s related to the “elimination of fossil fuels” or “fossil fuel bans.”

“Any piece of legislation that would touch on our industry or marketplace, I try to track and have eyes on,” Peterson says. “This supplements the tracking that the state execs do. But in addition to that, I’m working hand in glove with the state association executives and their contracted lobbyists to stay abreast of major bills, major regulations and major initiatives that are being proposed in state capitals.”

And, unlike the federal government, which can often move legislation at a snail’s pace, Peterson and his industry colleagues must guard against fast-moving state bills that could negatively impact propane businesses. He recalls one state that introduced and signed a bill into law in less than a month to further regulate marketer operations. Similarly, some states have short legislative sessions, so the industry again must guard against even a couple damaging sentences or provisions tied to a must-pass appropriations or budget bill.

“We need to spend a lot of time combating legislation that seeks to reduce our presence in the marketplace, seeks to artificially increase the price of our fuel so we’re not as competitive, seeks to ban access to our fuel – and everything in between,” Peterson says.

On the offensive side, Peterson adds, “We have a handful of states where we try to get legislation introduced to create tax incentives, rebate subsidies – everything from school buses to forklifts and the refueling infrastructure.”

Their work also has led to sizeable wins, for example, with energy choice and workforce development.

Peterson and a handful of state and regional executives revealed the nature of their relationship during a panel discussion at this year’s Southeastern & International Propane Expo in Nashville, Tennessee. The interactive discussion, which Peterson moderated, covered many topics, including energy security and reliability, the affordability of propane, electrification initiatives, data centers, growth markets and more.

The session brought to light their need for constant communication – and for other industry members to join the good fight.

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