Today s Propane. National Propane Gas Association

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1 Today s Propane National Propane Gas Association

2 Today s Propane 2

3 Today s Propane 1 Clean, Local, and Reliable Propane has been providing the energy we rely on for more than 100 years. Today, propane is used in roughly 50 million American households, with 7.8 million households using propane for in-home heating. In addition to the significant role propane plays in the residential sector, the industry serves about 900,000 commercial customers, 168,000 industrial customers, and 320,000 agricultural customers. Of the 3,000 propane companies throughout the United States, more than 70 percent are independent, family-owned businesses, employing more than 80,000 people. Local businesses are the primary drivers of growth and jobs in America. Support for these local propane businesses is essential to the future economic health and stability of the United States % Commercial 54.25% Residential 10.26% Internal Combustion 7.38% Agricultural 5.56% Industrial Grill Cylinders / Portable 3.36% Cylinder Refill More Americans are realizing the benefits of using propane. In 2015, more than 8.4 billion gallons of propane were sold, an increase of 9.2 percent from 2012.

4 Today s Propane 2 Propane by the Numbers The propane industry is growing. In 2015, the industry s direct contribution to America s GDP was $46.4 billion, up nearly 15% from 2012, and is responsible for more than 80,000 jobs. Nationwide, propane is used in a variety of applications ranging from home heating to grain drying. Residential Michigan Wisconsin New York Minnesota Illinois Commercial Texas California Pennsylvania North Carolina Florida Agricultural Iowa North Carolina Minnesota California Illinois Percentage of propane sold in the total U.S. propane market

5 Today s Propane 3 Propane is a clean, low-carbon fuel that produces fewer greenhouse gas emissions than many other energy options. Direct use of propane for space heating, water heating, cooking, and clothes drying reduces greenhouse gas emissions up to 50 percent compared to electricity. Residential Space Heating 7.8 million households use propane for in-home heating. 4.6 million homes use propane for water heating and more than 42 million homes use propane for outdoor grilling activities. Off-Road Applications Agriculture Propane can be found on 40 percent of American farms. Propane-powered irrigation engines cost less to operate and produce 11 percent less greenhouse gas emissions than diesel engines. Propane Autogas 17 top mower brands offer propanepowered models. These clean-fuel-burning mowers are exempt from ozone action days, and can operate when gasoline and diesel mowers are sidelined. 12,000 propane-powered school buses transport 700,000 school children every day. Hundreds of thousands of forklifts in the U.S. are powered by propane. These forklifts cut emissions by 19 percent compared to gasoline versions. Nearly 200,000 vehicles in the U.S. are powered by propane. Transportation demand accounts for nearly 10 percent of U.S. retail propane demand. Did You Know? Propane is a major feedstock for the petrochemical industry.

6 Propane engines emit 12 percent less CO 2 emissions, 20 percent less NO X emissions, and 60 percent less CO emissions than gasoline engines. They also produce 80 percent less smog-producing hydrocarbon emissions than diesel engines. Propane light-duty vehicles produce 14 percent fewer GHG emissions than gasoline vehicles. Autogas Infrastructure On-site infrastructure installation is easy and convenient for fleets across the country. A standard propane refueling station costs between $37,000 and $175,000. Propane is an eligible fuel for the newly created Alternative Fuels Corridors. There are more than 3,300 public propane refueling Propane school buses emit 13 percent less GHG emissions compared to gasoline. stations across the nation. Propane is an approved, clean fuel listed in the 1990 Clean Air Act as well as the amendments to the Energy Policy Act of 1992.

7 Today s Propane 5 Autogas Propane autogas is the world s leading alternative fuel, and the third most common vehicle fuel in the United States. There are about 200,000 propane-powered vehicles on America s roads, and a fleet of more than 12,000 propane-powered school buses is used to transport children to school each day. Did You Know? Real World Example A propane-powered mower can be used during ozone action days, while using gasoline and dieselpowered versions is prohibited. The National Park Service is reducing emissions and the size of its fuel budgets by using propane-powered equipment. Park rangers at the National Mall and Memorial Parks, Blue Ridge Parkway, Yellowstone National Park, and Mammoth Cave National Park underscore the importance of sustainability to millions of visitors every year. Using propane has helped park officials save thousands of dollars in fuel and maintenance costs while reducing carbon monoxide and greenhouse gas emissions.

8 63% 32% 5% 0% Every year we export more than 10 billion gallons of propane. That s enough to fuel 4 million fleet vehicles or 12 million homes.

9 43% According to DOE EIA data, total rail transport has doubled since 2013.

10 Today s Propane 8 Safe from Wellhead to Burner Tip Whether by pipeline, rail, or over the road, all propane transportation is regulated under the authority of the U.S. Department of Transportation (DOT), through the agency s federal hazardous materials regulations. DOT s regulations for pipeline design, construction and maintenance ensures their integrity is maintained throughout their useful service life. The agency s regulations for containers such as propane railcars, cargo tank motor vehicles, or DOT cylinders specify that the containers meet specific DOT fabrication requirements, be appropriately marked, and comply with periodic inspection and requalification requirements. Delivery Propane is delivered by people who are qualified to transport hazardous materials in accordance with both DOT requirements and the National Fire Protection Association s (NFPA) LP-Gas Code (NFPA 58), which requires delivery personnel to be trained in safe work practices and the hazards associated with handling propane. Delivery into stationary customer tanks is monitored continuously until the proper filling level is achieved. Delivery hoses and equipment are inspected during every transfer of product, and emergency shutoff equipment must be regularly tested. Storage The storage of propane and the containers in which they are stored are regulated by virtually every fire code used in the United States, all of which reference to NFPA 58. Propane containers are installed in accordance with the requirements of NFPA 58, which specifies the minimum separation distances from buildings and property lines and provides strict requirements for, among many others, container protection and safe control of the fuel. Use of Propane Propane is used in a variety of applications. Numerous model codes, standards and regulations are in place to ensure that the piping, equipment, and appliances used are in compliance with appropriate safety and performance standards and to ensure that these products will perform safely over the life of the appliances and equipment.

11 Today s Propane 9 The Future of Propane Renewable Propane Micro-CHP Groups in the United States and Europe are developing ways to produce propane from renewable sources such as palm oil. Units are being tested that can produce 20 million gallons of propane a year from renewable sources. The propane produced in this process has all of the benefits of traditional propane: clean, affordable and reliable, with the added benefit of reducing transportation costs. Combined heat and power systems can generate electricity with higher efficiency and lower emissions levels than conventional alternatives. A Micro- CHP systems that consumes about 1,500 gallons of propane per year will consume 60 percent less fuel than a typical power plant for similar output; will reduce carbon dioxide emissions by up to 30 percent; and will supply up to 50 percent of a home s electricity needs. Medium-Duty Trucks Tests using propane to fully power medium-duty trucks are showing great promise. Already, there are California Air Resources Board emissions-certified Class 7 fueling systems that use propane in lieu of diesel on the road. Using propane in medium-duty trucks reduces both fuel and maintenance costs, especially the unplanned maintenance costs associated with complicated diesel engines. Zero Net Energy Solutions Using propane across a variety of applications can help consumers achieve zero net energy goals. For example, using a propane tankless water heater in conjunction with solar panels can reduce energy costs while ensuring customers never run out of hot water.

12 Propane Goes Beyond the Grill Propane can be used almost anywhere. From emergency generators to airport shuttles, propane can quickly and reliably meet a variety of energy needs. Residential and Commercial Space Heating And Cooling Irrigation Engines Generators Terminal Tractors On-Site Power Generation Utility Cargo Vans Bobtail Trucks

13 Mowers Combined Heat and Power Residential and Commercial Water Heating School Buses and Shuttles Light-Duty Trucks Forklifts

14 WA ND MT OR SD 45 ID WY 104 NE 45 NV 46 UT 176 CO 469 CA 83 AZ 77 NM 391 TX 12 AK 31 HI

15 VT MN MI IL KS OH OK TN 45 MS 98 AL 58 DE 22 RI 82 NJ 134 MD / DC NC AR VA CT KY 116 MA PA WV 133 MO IN 124 NY IA ME WI 129 NH 101 SC 206 GA LA 190 FL (Million Gallons) Propane Consumption by State

16 National Propane Gas Association 1899 L St. NW, Suite 350, Washington, DC info@npga.org NPGAPropane NPGA.Propane National Propane Gas Association