Degree Days | March 2017 2016

Newsletter of the Virginia Propane Gas Association

Degree Days | March 2017 2016

We Will See You at the 2017 VAPGA Spring Meeting April 2-4, 2017 at the Tides Inn Join your fellow industry members at the Virginia Propane Gas Association's next Board of Directors and Membership Meeting on April 2-4, 2017 at the Tides Inn in Irvington, VA. All VAPGA members are invited to attend.

Click here for Last-Chance Registration Schedule at a Glance: Saturday, April 1, 2017

9:00am – 4:00pm: Community Day with Deltaville Maritime Museum

Sunday, April 2, 2017

11:00am – Golf at King Carter Golf Club

6:30pm – 7:30pm Welcome Reception

7:30pm – 11:00pm Hospitality Suite – Lee Suite Monday, April 3, 2017

8:00am – 8:05am Welcome Carlton Revere

8:05am – 9:00 Sam Davis III, Principal, The Davis Group, Presentation on Family business succession planning

9:00am – 12:00pm Committee Meetings

12:00pm – 1:30pm Buffet Lunch

1:30pm – 2:30pm Eric H. Leskinen, Executive Vice President, P3 Propane Safety

2:30pm – 5:00pm Membership meeting o Dennis Cruise, VAPGA Safety & Training Coordinator

6:00pm – 7:00pm Reception

7:00pm – 9:00pm Dinner

9:00pm – 11:00pm Hospitality Suite Open

9:00pm – 11:00pm Night Golf Tuesday, April 4, 2017

8:00am – 10:00am VAPGA Board Meeting

10:00am – 11:00am VPREF Board Meeting Registration: The registration fee to attend is $200 per person (spouses and children are complimentary) and includes breakfast and lunch on Monday. Location and Hotel Accommodations: The Tides Inn 480 King Carter Drive Irvington, VA 24480

Degree Days | March 2017 2016

Entry Level Driver Training Required Dennis Cruise, VAPGA Safety & Training Coordinator

The Entry Level Driver Training (ELDT) established by FMCSA establishes more extensive training requirements for entry-level drivers. It revises the mandatory training requirements for entry-level operators of CMVs who are required to possess a Class A or Class B commercial driver's license (CDL) or a hazardous materials (H), passenger (P), or school bus (S) endorsement for their license for the first time. The compliance date of the ELDT rule is February 7, 2020, almost three years after the rule’s revised effective date of March 21, 2017. The three-year phase-in period allows ample time for the CMV driver training industry to develop and begin offering training programs that meet the requirements for listing on the Training Provider Registry. The rule establishes minimum training requirements for entry-level operators of CMVs in interstate and intrastate commerce who are applying for a Class A or Class B CDL, an upgrade of their CDL (e.g., a Class B CDL holder seeking a Class A CDL), or a hazardous materials (H), passenger (P), or school bus (S) endorsement for their license for the first time. The ELDT requirements do not apply to individuals holding a valid CDL or a P,

S, or H endorsement issued before the compliance date of the final rule. Beginning on the compliance date of the rule, no “Entry-Level Driver” may take a CDL skills test to receive a Class A CDL, Class B CDL, Passenger (P) Bus endorsement, or School Bus (S) endorsement unless he/she has successfully completed a mandatory knowledge and behind-the-wheel training program, or, in the case of a Hazardous Materials (H) endorsement, mandatory knowledge training that: (a) is provided by a Training Provider listed on FMCSA’s Training Provider Registry (TPR), and (b) is appropriate to the license/endorsement for which that person is applying. This rule combines behind-the-wheel (“range” and public road) training with a prescribed knowledge curriculum to address the specific training needs of a driver seeking a Class A or Class B CDL or P or S endorsement. The rule also includes a curriculum to address the specific training needs of a CMV driver seeking an H endorsement. As the current requirements to obtain an H endorsement do not include a State-administered skills test, the H endorsement curriculum does not include a behind-the-wheel component. The rule incorporates performance-based concepts by requiring that driver-trainees demonstrate proficiency in both the BTW and theory portions of the curricula.

Degree Days | March 2017 2016

The final rule does not impose a mandatory minimum number of behind-the-wheel hours for the Class A and B CDL training. Proficiency in performing required range and public road maneuvers is a more flexible, and less burdensome option than required minimum hours. It is recognized that driver-trainees will complete behind-the-wheel training at a pace that reflects their varying levels of individual ability. However, after the final rule is implemented, FMCSA will collect information from training providers that will allow comparison of the driving records of drivers who received varying amounts of behind-the-wheel training. Conclusions will be drawn regarding the extent to which hours of BTW training correlates to safer driving outcomes. If FMCSA ultimately decides, on the basis of post-rule data analysis, to revisit the issue of mandatory minimum BTW training hours, it will be done through notice and comment rulemaking. Breaking away from the FMCSA script for a moment I will explain it this way. This has no impact on anyone already licensed before February 7, 2020. The only exception to this statement is a driver wishing to upgrade a CDL such as moving from class B to class A or wishing to add an endorsement such as H. the new requirements will apply to upgrades. After this regulation takes effect a new entrant will be required to complete the prescribed training with

documentation of the training placed on file with FMCSA. The new entrant must still go to DMV and apply to take the drivers’ exam, both knowledge and behind the wheel. Applicants who do not have the required training on file with FMCSA will not be allowed to begin the licensing process with DMV. Both NPGA and PERC are working to develop the best method for providing information and support to the propane industry regarding this new rule. Although implementation isn’t exactly right around the corner, it is not too soon to begin a discussion on how this requirement can best be addressed.

Virginia Propane Rebate Program Update

As you may know, The Virginia Propane Gas Association offers state rebate programs in addition to the national PERC incentive programs. As of this writing the 2017 Safe Appliance and Mower rebate programs have ample funds available and we encourage you and your customer to apply today. The 2017 vehicle program has exceeded its maximum numbers for 2017 and will be closed for the year pending any additional funding. Click Here to learn more about these programs and for application materials.

Degree Days | March 2017 2016

February 2017 NPGA Propane Inventory Report A National Update from NPGA

End-of-February 2017 data shows that the United States propane inventory is falling at a record pace due to strong export demand. With revised export forecasts, it appears the United States as a whole will reach critical inventory. This phenomenon has already manifested itself in Mont Belvieu pricing as the ratio to crude has increased to the highest levels seen since the winter of 2013/2014. However, it is important to note key differences on a PADD level when analyzing critical inventory levels. Although Total US inventory is expected to reach critical levels by the end of February, the geographical extent and dynamics of the lower inventory are different when compared to the tight market of the winter of 2013-2014. The winter of 2013-2014 saw critical days of supply with geographic diversity. Critical days of supply were witnessed that winter in high res/com and cold weather demand regions such as PADD 1 and PADD 2. This winter, PADD 1 and 2 are forecasted to remain above critical levels at the end of February with critical levels being reached only in PADD 3. After February and March, IHSMarkit expects propane supply from gas plants to resume growth as higher

crude prices lead to a new rig deployment and a resumption of new associated production. With arbitrage opportunities declining quickly due to escalating propane prices in the US this month, exports are expected to fall substantially in the spring. Higher supply and no substantial new export capacity should lead to a recovery of inventory into the summer months. Click here to read more and download the summary charts. Based on the inventory trends data, while in contract season with your suppliers, make sure your supply needs are adequately covered. Learn more about the steps you can take in NPGA's "Supply Recommendations from the Industry/Marketer Education Working Group of the NPGA Supply and Infrastructure Task Force".

2016 Sales of Propane Survey Earlier this month, you should have received a copy of the 2016 American Petroleum institute (API) Sales of Propane Survey. For over two decades the API, in cooperation with the Gas Processors Association (GPA), the National Propane Gas Association NPGA, and the Propane Education & Research Council (PERC) has sponsored the survey of U.S. industry gas liquids and published the results in a report entitled, “Sales of Natural Gas Liquids and Liquefied Refinery Gases.” This is

Degree Days | March 2017 2016

the only report that breaks down propane gas sales by industry category on a state and regional basis. These statistics are used by many companies in the industry as an aid for long-term planning. Under the Propane Education and Research Act, 20 percent of assessment collections or about $6.6 million are eligible for rebate back to the states. Each state's allocation of rebate funds is based on the latest API data for residential, commercial, industrial, internal-combustion engine fuel, agricultural uses, and sales to retail dispensers that are compiled using responses to this survey. By completing and returning your survey by April 21, 2017 you help ensure Virginia receives its fair and accurate share of funding. If you did not receive a copy of your API survey, please contact Ben@AllianceGroupLtd.com as soon as possible. Thank you for your cooperation with this beneficial project.

Upcoming Training Event By Dennis Cruise, VAPGA Outreach Coordinator

Multiple Training Opportunities Friday, May 5, 2017 9AM to 3PM Virginia Tech Richmond Center 2810 N Parham Rd; Suite 300 Richmond, VA 23294

Training subjects & Speakers:

Cathodic Protection o Bill Woodward

Regulator Sizing and Trouble Shooting

o Jim Zuck

Bobtail Meter Creep and Hose Inspection

o Dan Rudy Plan to Attend All Three Classes Cost: $25.00 per person (lunch provided) Click Here for More Information and Registration

UPCOMING EVENTS VAPGA Spring Meeting April 3-4, 2017 Tides Inn, Irvington, VA Propane Days June 18-21, 2017 Hyatt Regency Capitol Hill, Washington DC Click Here for Registration VAPGA Summer Meeting July 16-18, 2017 Hilton, Virginia Beach, VA Joint VAPGA & WVPGA Fall Meeting October 15-17, 2017 Hotel Roanoke, VA VAPGA Spring Meeting April 22-24, 2018 Kingsmill, Williamsburg, VA VAPGA Summer Meeting July 15-17, 2018 Hilton, Virginia Beach, VA

Degree Days | March 2017 2016

Virginia Propane Gas Association PAC

2017 Member Request

Yes, We Need A Strong Voice In VA Government!

I will join VAPGA’s PAC Club at this level:

Full Name: __ _

Company Name: ____

Address: ____

City/State/Zip: ___

(all fields are required) Fax/email to Ben Rowe 804.359.9680

ben@alliancegroupltd.com

Credit Card #: Exp. Date: _ ___

Amount ($):

Signature:

Billing Address: ____

Billing City/State: Zip: _ ___

I prefer to pay by check, Enclosed is my personal check made payable to: VAPGA PAC

Mail the check & form to: 2201 W. Main Street; Richmond, VA 23220

Governor’s Club $1,000+

Senator’s Club $500—$999

Delegate’s Club $250—$499

Friends of VPAC Less than $250

Thank You For Supporting Your PAC!

Degree Days | March 2017 2016

Virginia Propane Gas Association

PRESIDENT Carlton Revere

Revere Gas, Inc., Hartfield, VA

PRESIDENT-ELECT Elizabeth McCormick

Phillips Energy, Gloucester Point, VA

IMMEDIATE PAST PRESIDENT Scott Turner

Sharp Energy, Georgetown, DE

TREASURER Kevin Lloyd

Augusta Petroleum Cooperative, Staunton, VA

SECRETARY Taft Yeatts

Davenport Energy, Chatham, VA

NPGA STATE DIRECTOR Peter Ryan

PAPCO, Inc., West Point, VA

DIRECTOR TO THE EXECUTIVE COMMITTEE Brian Atwood, Parker Oil Company, Suffolk, VA

DIRECTORS

Mark Dennis, Ray Murray Inc. Caroline Hensley, AmeriGas/PTI

Dennis Hochkammer, Holtzman Propane Steve McCoy, Blossman Gas

Nicole Sullivan, Anderson Propane Gaye Tate, Foster Fuels

Colin Wood-Bradley, Suburban Propane Tom Krupa, Supplier Representative, NGL Supply

Michael Brewer, Quarles Petroleum

VAPGA COMMITTEE CHAIRS

Governmental Affairs – Todd Holtzman, tholtzman@holtzmancorp.com Market Development – Hayley Karicofe, Hayley.Karicofe@amerigas.com

Safety & Education – Tony Hogue, tony.hogue@verizon.net Membership – Nicole Sullivan, nicoles@andersonoil.com

Young Gassers – Carolyn Hensley, Caroline.Hensley@amerigas.com Suppliers – Tom Krupa, tkrupa@nglsupply.com

VAPAC – Colin Wood-Bradley, cwood-bradley@suburbanpropane.com