Senate Bill S7986

                                
 
BILL NUMBER: S7986

SPONSOR: TEDISCO
 
TITLE OF BILL:  An act to amend the agriculture and markets law, in
relation to authorizing the delivery of liquefied petroleum gas in times
of emergency

 
PURPOSE:

To allow homeowners leasing LPG cylinders, containers to choose from
multiple suppliers for emergency deliveries during times of urgent need
and periods of high demand.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Notwithstanding any other law, rule or regulation to the
contrary, a seller of propane who is not the owner of the propane tank
may fill, refill or otherwise deliver propane into such tank, provided,
the tank has been inspected and certified, when:

a. a consumer has acted in good faith under an existing contract to
              

procure delivery of propane from the owner of the tank, but has not
received the propane in a reasonable time; and;

b. a federal, state or local state of emergency has been declared; or

c. severe weather or any other similar circumstances may result in indi-
viduals being placed in imminent danger of death or injury or building
structures and fixtures at risk of significant property damage.

Propane sellers may not charge an additional fee or penalty for filling
a tank or because they own a tank filed by another seller under the
circumstances described in this bill.

Nothing in the bill shall restrict a person who owns their own tank from
having it filled by any seller.

Section 2: Effective Date.

 
JUSTIFICATION:

As in most cases, propane gas companies own all equipment, including the
tanks and regulators, and simply leases to the homeowners as a cost
savings, but as a result, they are the only supplier permitted to deliv-
erer to the tanks. Customers that own their tanks are able to choose
from multiple suppliers and can change as frequently as for each deliv-
ery.

This also allows them to also get better costs. Unfortunately, during
storms or other catastrophic events, homeowners are at the mercy of
their propane providers' schedule for refills. Many propane companies do
not always work during these times and have to decide whether to place
their residential customers' needs before their commercial customers.

This new legislation will allow homeowners leasing tanks to choose from
multiple suppliers for emergency deliveries during these times of urgent
need and periods of high demand that can result in imminent danger of
death or injury due to exposure to such extreme temperatures or occur-
rence without the delivery of such liquefied petroleum gas.
The bill only requires the use of a licensed liquefied petroleum gas
(LPG) provider and supplier, and an LPG container with all required
inspections and certifications complete and up to date. According to
state law, an LPG tank must be inspected 12 years after it is manufac-
tured and then every 5 years after that.

 
PRIOR LEGISLATIVE HISTORY:

New Legislation

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.