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March 2015 Spring Meeting Registration

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March 2015 Spring Meeting Registration OFFICIAL PUBLICATION OF THE NORTH CAROLINA PROPANE GAS ASSOCIATION 2015 // MARCH NCPGA NEWS 10 // 2015 Farm Show Recap 16 // New Requirements Designed to Protect Dispensers from Vehicle Impact 25 // Register for Spring Meeting 2015 // MARCH NCPGA NEWS FEATURES 10 // 2015 Farm Show Recap 16 // New Requirements Designed to Protect Dispensers from Vehicle Impact 25 // Register for Spring Meeting DEPARTMENTS 04 // President’s Letter 06 // Executive Director's Letter 07 // Code Compliance 08 // Tips For Reflecting Your Business Value in Your Buy-Sell Plan 14 // The Worst Advice About Alternative Fuels 15 // What's Wrong With This Picture? 18 // Governor's Letter 22 // Interview with Larry Mizell 23 // Heating Degree Days 24 // Supplier Profiles Published for DIRECTOR of PUBLISHING To submit editorial or Published by North Carolina Krystie Dovenmuehler request information — E&M Consulting, Inc. Propane Gas Association email [email protected] 1107 Hazeltine Boulevard COPY EDITOR 5109 Hollyridge Drive p. 919.787.8485 Suite #350 Carrie Bethel Raleigh, NC 27612 Chaska, MN 55318 p. 919.787.8485 LAYOUT & DESIGN For information p. 800.572.0011 f. 919.781.7481 Jeremy Davis regarding advertising f. 952.448.9928 please contact Marc www.emconsultinginc.com SALES MANAGER at 800.572.0011or Marc Lucia [email protected] Please note: Editorial and contents of this magazine reflect the records of the North Carolina Propane Gas Association (NCPGA). NCPGA has done their best to provide useful and accurate information, but please take into account that some information does change. E&M Consulting, Inc., publishers and NCPGA take no responsibility for the accuracy of the information printed, inadvertent omissions, printing errors, nor do they endorse products and services. We take no responsibility regarding representations or warranties concerning the content of advertisements of products/services for a particular use, including all information, graphics, copyrighted materials, and assertions included in the advertisements. The reader is advised to independently check all information before basing decisions on such information. www.ncpga.org 3 David Briles NCPGA President I hope everyone is planning to attend the NCPGA Spring Board Meeting at the Marriott City Center in Raleigh on March 22 -24. The low this morning was 8° Fahrenheit. The low tomorrow 2014 should be required reading for pessimists like myself. Mr. morning is projected to be 2° Fahrenheit. Winter is here! Stephens makes the following observations about America: PRESIDENT’S LETTER Thanks to all who volunteered for the Farm Show. It was well • The major emerging technologies of our time, fracking, attended and there was quite a bit of foot traffic on our aisle. social media and cancer immunotherapy were developed Lots of folks got a chance to see what propane can do as a in America. motor fuel. • Geology played a role, but was not the deciding factor. Earlier in the month I had a chance to accompany John Jessup China, Argentina and Algeria all have larger shale gas to the NPGA Board Meeting in San Diego – a first for me. I reserves than America. saw several familiar faces and attended a couple of informative meetings. At the Propane Supply and Logistics Meeting, as • Fracking has revolutionized the energy industry worldwide. expected, the focus was on The Great Deflation (crude oil prices falling), the long term impact of fracking on nationwide • The technology behind fracking was not developed by inventories, and avoiding a repeat of the January-February, 2014 federal bureaucracies or by Fortune 500 mega-corporations, supply debacle. The picture is complicated – one slide showed but by entrepreneurs with a good idea and the fortitude over a dozen different economic factors that potentially impact and access to capital to turn dreams into reality. the price of propane – sometimes dramatically. NPGA is in the process of developing a tool to help marketers track propane • Property rights played a role. Private ownership of inventories nationwide. While not yet ready, this tool might mineral rights is not the norm throughout the world. come in handy down the road. • As a result, the world is becoming less dependent on The hot topic at the Governmental Affairs Committee meeting OPEC, greenhouse gas emissions are decreasing and was CETP. Currently, the CETP program is “evergreen,” dictators of companies that are dependent on high meaning no refresher training is required. There was quite a bit priced oil to meet their budget are struggling. of discussion on this topic. Complicating the issue is the fact that laws vary from state to state. The matter was referred back to the Executive Committee, but there will be more discussion Only in America is there a confluence of these factors sufficient about this in the future. to propel new technologies forward. I hope everyone is planning to attend the NCPGA Spring Board I close with a quote from the last line of his column: “We are Meeting at the Marriott City Center in Raleigh on March 22 – larger than our leaders. We are better than our politics. We are March 24. wiser than our culture. We are smarter than our ideas…” Also, don’t forget that later on this spring, there will be a Those are good words. Be safe! demonstration of conversion from a gasoline powered engine to autogas. The date and time have yet to be determined. ***** Bret Stephens writes a weekly column (“Global View”) for the DAVID BRILES Wall Street Journal. The column that appeared on December 23rd, NCPGA PRESIDENT 4 NCPGA News | March Low Hanging Fruit By John Jessup, NCPGA Executive Director An estimated 62% of propane heated homes have an electric hot Manufacturers say those increases can be achieved simply by water heater. A recent study found out that 20% of homeowners using more insulation, which might make the storage tank units EXECUTIVE DIRECTOR know they should not waste water, but didn’t know their hot a few inches wider, at a cost of about $50. That increased girth water used any energy to heat. Homeowners need to know that will likely affect space-constrained projects such as multifamily water heating systems are the second biggest user of electricity housing, where a relatively small gas tankless unit may be an in the home, accounting for an average of 18 percent of electricity easier fit than the new, wider tanks. costs, according to the U.S. Department of Energy. But the real jump comes for higher-volume water heaters. The PERF board is working diligently with our marketing company, Warm Thoughts to develop a comprehensive marketing For tanks of 55 gallons or more, the new rules get a lot more campaign to put more burner tips in the field. Specifically tankless stringent. For instance, EF requirements for a 65-gallon electric hot water heaters. Last month, 70 NCPGA propane companies tank heater will more than double, from .88 to 1.98. But the ordered over 150,000 of the new “Propane Matters” bill stuffer only way to get that efficiency out of an electric unit is to use that spotlights hot water heaters and gives our new promotion to heat pump technology. That adds significant costs — 65-gallon win a free tankless Rinnai hot water heater and installation. units start around $2,000 — along with installation concerns. Heat pump water heaters (HPWHs) require a higher vertical We are also developing a propane vs electric hot water heater clearance and at least 1,000 cubic feet of space around them. specific website that will highlight the benefits of propane over Plus, without external venting, a HPWH will cool the air within electricity. Consumers will be able to go to the website for that surrounding space, potentially increasing the demand on information, on hot water heaters, finding a propane dealer, and the space-heating system. the environmental benefits of propane over electricity. Joe Holliday, director of business and product development Normally, I agree with Ronald Reagan’s famous quote, “The at tankless water heater manufacturer Rinnai, says the new most terrifying words in the English language are: I'm from the requirements, which go into effect April 16 for manufacturers, government and I'm here to help.” However, there have been provide a new selling opportunity for construction pros that install recent moves the by the Department of Energy that are going or specify propane water heaters. to help our industry. Below is an informative excerpt relating to our hot water heater campaign from the PERC Smart Brief from "If you're talking about an electric storage tank heater that used Feb. 19, 2015 to cost $300 to $400 now being priced upwards of $1,000, that really closes the gap," Holliday says. "You've got a good “New water heating standards from the Department of Energy potential to convert them to propane, with the lifestyle benefits that go into effect this year are rewriting the price-point differential of tankless." between electric and propane water heaters, especially for tank storage units above 55 gallons. The old "yank and replace" practice won't work when it comes time to replace those large storage tank units. That should The new standards require that all water heaters, regardless of provide plenty of opportunity for you to upgrade those customers size, type, or heating source, be more efficient. For tank storage to high-efficiency propane water heating.” units smaller than 55 gallons, the increases are negligible. The minimum energy factor (EF) on a gas, 50-gallon tank heater will These are just a couple of the exciting programs NCPGA / PERF increase from .58 to just .60; the EF on the same size electric have in store to help dealers sell more propane and help consumers unit will increase from .90 to .95.
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