Wednesday, March 12, 2014

Fischer Cosponsors Legislation to Address Propane and Heating Fuel Shortages

WASHINGTON, D.C. – U.S.  Senator Deb Fischer (R-Neb.), member of the Senate Commerce, Science, and Transportation Committee, today announced she is cosponsoring legislation to provide relief for Nebraskans who have been affected by recent propane shortages. The Reliable Home Heating Act (S. 2086) would eliminate red tape to support increased delivery of residential heating fuels to areas affected by shortages. The legislation also includes a provision to help states better prepare for future supply and distribution challenges.


“Propane shortages across Nebraska this winter have resulted in record-high prices for too many families struggling to heat their homes during record-low temperatures,” said Fischer. “This bipartisan legislation will help provide relief for more than 500,000 Nebraska households that rely on propane to heat their homes and better equip states with needed resources to address similar shortages in the future.”

Specifically, the Reliable Home Heating Act grants state governors the authority to extend a state of emergency due to home heating fuel shortages for two additional 30-day periods. Under current law, the governor of a state can declare a state of emergency, which provides a 30-day exemption from federal regulations for commercial motor vehicles to expedite delivery. These include exemptions for Hours of Service regulations restricting the amount of time truck drivers can operate. These regulatory exemptions expire at the conclusion of the 30-day period unless extended by the Federal Motor Carrier Safety Administration (FMCSA) or otherwise addressed by a Presidential disaster declaration.

The legislation also requires the Energy Information Administration (EIA) to provide an early warning to governors in a given Petroleum Administration for Defense (PAD) District if its home heating fuel inventory falls below the most recent five-year average for more than three consecutive weeks.

The Reliable Home Heating Act was introduced by Sen. John Thune (R-S.D.), Ranking Member of the Senate Commerce Committee.

Background:
The Midwest entered this winter with the lowest levels of propane inventories since 2007. These shortages were due in part to extreme cold temperatures, a wet grain harvest requiring higher than average amounts of propane to fuel grain dryers, and strained distribution. Unfortunately, supply and distribution challenges have come during the season of highest demand, and just as the Midwest and most of the United States have been experiencing record-low temperatures. 

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