South Carolina Propane PROVIDERS Key Issues
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TARIFFS
Did you know that cross-border propane sales from Canada into the U.S. are $1.9 billion annually? As well as parts and equipment for our industry are made in Canada, Mexico, China and the EU. While we support the President's reasoning and implementation for tariffs, we are advocating for Energy to be excluded or significantly lowered for American energy producers on tariffs. Those higher costs not only drastically affect how a small energy company operates but it also affects the consumer as well.
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TAX POLICY & TAX CREDITS
Like many industries, we are generally supportive of the President's goals of lowering regulatory barriers and unleashing American Energy. One of the key tax credits to help achieve this goal expired at the end of 2024. This tax credit was called the Alternative Fuel Excise Tax Credit (AFTC) and it provided $.50 credit per gallon of propane that is sold for use or used as fuel to operate a motor vehicle. With the AFTC expiring, there is less incentive for a consumer to purchase an alternative fueled vehicle, like propane, thus increasing our dependence on diesel and gasoline. There is also a Qualified Business Income Deduction that is set to expire at the end of 2025. This deduction could put money back in the pockets of small businesses that operate in your area that are 50 employees or less.
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NDAA
Data from the Department of Defense (DOD) in recent years has shown a rapidly increasing rate of power outages and power generation issues. Propane generators have been deployed successfully at state-level National Guard units and found our generators increased cost savings and provided significant environmental benefits. NPGA (National Propane Gas Association) has proposed a pilot program that would deploy propane-powered generators as part of a microgrid system for the purposes of enhancing energy resilience and power capabilities. This program, if established, would provide DOD with a baseline study from which to evaluate whether to expand the program more broadly.
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FARM BILL
Propane storage is not considered an eligible facility under the Farm Storage Facility Loan. The GRAIN DRY Act would expand the loan program to include propane storage, a critical fuel for drying grain and heating barns, allowing agricultural producers access to the same low-interest financing for propane storage that is available for other on-farm storage facilities.
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ENERGY CHOICE
No one wants to be told what to cook on. Especially if the stoves and furnaces that you are being forced to transition to are overly expensive and unreliable electric only versions.
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DISASTER RELIEF & APPROPRIATIONS RELATED BILLS
TBD. The language concerning these has not yet been defined but rest assured, we intend to continue to raise awareness and ask in this department for the future. The propane industry has done and continues to do amazing things after Hurricane Helene to help those in need. You can read these stories here: