Unlawful DOT rule to cost small businesses millions

On the first working day for President Trump, a rule imposed by the U.S. Department of Transportation (DOT) during the Obama administration is set to take affect which will cost American small businesses $125 million, much of which will have to be passed on to you, the consumer.  To date, the National Propane Gas Association’s petition for an emergency stay to protect the industry and propane consumers has gone unanswered. It’s time for the Trump administration to take action. Small businesses need regulations that make sense and promote American resources – not unjustified rules that make it harder for these companies to operate.

Beginning today, approximately 5 million propane cylinders, including many that are used for home heating, forklifts, and even grill cylinders, will be out of compliance with DOT regulations. In 2016, the Pipeline and Hazardous Materials Administration (PHMSA) made a major change to a decades-old regulation that, without explanation or justification, reduces the time propane marketers have to initially requalify a propane cylinder from 12 years to 10 years. This action is an unlawful violation of the Administrative Procedure Act (APA).

{mosads}The APA requires that affected parties have an opportunity to comment on any changes that might create new obligations for stakeholders. DOT misled the propane industry in the initial notice of proposed rulemaking saying, “Costs associated with the rule are estimated to be negligible annually…. [T]hese requirements would not impose new requirements on current non-holders of SPs [special permits].” In the rule PHMSA cites the number of affected business at 50. The reality is this rule affects thousands of companies, starting with approximately 3,000 propane marketers.

This action is part of the legacy of an administration that preferred regulatory bureaucracy over promoting American jobs and small businesses. We estimate this rule, which will necessitate that millions of propane cylinders to be requalified, will have a detrimental impact on thousands of small businesses and place undue financial strain on consumers that depend on propane every day. Calling that amount of money “negligible” indicates the need to better educate how these kinds of regulations affect small businesses.

In addition to the significant financial burden placed on these businesses, this regulation will cause small business owners to choose between delivering fuel to more than 5 million homes that rely on propane for winter heating or staffing the business to comply with this rule.

On Friday, Jan. 13, NPGA filed a Petition for Rulemaking & Emergency Stay for Cylinder Requalification Requirements before PHMSA. The petition outlines the extensive reasons for issuing a halt on the enforcement of this rule until a lawful rulemaking process can commence.

Let’s get serious about prioritizing American resources and promoting small businesses.

Phil Squair is Senior Vice President of Public and Governmental Affairs for National Propane Gas Association.

The views expressed by authors are their own and not the views of The Hill.