BILL NUMBER: S1495

SPONSOR: TEDISCO
 
TITLE OF BILL:

An act to amend the agriculture and markets law, in relation to author-
izing 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: This act shall be known and may be cited as the "propane
consumer emergency act."

Section 2: (a)Notwithstanding any other law, rule or regulation to the
contrary, a person, firm, limited liability company or corporation who
              

is not the owner of a liquefied petroleum gas cylinder, container or
receptacle may fill, refill or otherwise deliver liquefied petroleum gas
into such liquefied petroleum gas cylinder, container or receptacle,
provided the entity has appropriate liability insurance equal to or
greater than $1,000,000.00, and such cylinder, container or receptacle
and devices and associated pipelines operating off of such cylinder,
container, or receptacle has been inspected and certified as required by
law or regulation by the succeeding entity and the succeeding entity
assumes all liability that may result from improper filling and testing
of the facility, when:

-a residential heating or electric generator consumer has acted in good
faith under an existing contract to procure delivery of liquefied petro-
leum gas from the owner of a liquefied petroleum gas cylinder, container
or receptacle, but has not received liquefied petroleum gas in a reason-
able time within 24 hours of an initial request; and

-a federal, state or local state of emergency has been declared or

-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/or its fixtures at risk of significant damage.

-Exigent circumstances exist when the Federal Motor Carrier Adminis-
tration has granted a waiver in accordance with 49 CFR Sec.  390.23(a)
(1) from Parts 390 through 399 of the Federal Motor Carrier Safety Regu-
lations, which includes NYS, from the Hours of Service Limitation rule
as it affects propane deliveries.

-The New York State Department of Transportation, pursuant to 17 NYCRR
820.6, issues a statewide or regional Hours of Service Limitation waiver
for propane.

(b) An owner that authorizes a person to fill or refill a container
pursuant to this subsection is not liable for any injury or damage that
results from an action of that person while that person is filling or
refilling that container pursuant to this subsection.

(c) Any person, firm, limited liability company or corporation who
fills, refills or otherwise delivers liquefied petroleum gas or owns
such a gas cylinder, container or receptacle is not permitted to charge
any penalty or fee in addition to any standard filling, refilling or
delivery fee pursuant to this subdivision excluding existing emergency
fees.

Under any other conditions not listed in this subdivision; any existing
contract between the owner of the liquefied petroleum gas cylinder,
container or receptacle and the customer remains in force and full
effect until the end date of the contract or until it is terminated
under options available to either party and that it is not permissible
for any entity to empty or fill a receptacle of a tank without the
owner's consent.

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-
er to the tanks.  Customers that own their tanks are able to choose from
multiple suppliers and can change as frequently as for each delivery.

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 exigent circumstances 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.

Additionally, it requires the succeeding company to carry appropriate
liability insurance equal to or greater than $1,000,000.00, along with
addressing other limited liabilities on the part of the tank owner if
the succeeding entity does not comply with proper safety procedures
during the refilling of emptying of a tank.

It is also understood that that the existing contract between the
provider and consumer remains in full force, and that it is not permis-
sible for any entity to empty or fill a receptacle of a tank without the
owner's consent absent these extenuating circumstances .

 
PRIOR LEGISLATIVE HISTORY:

01/12/18: S.7395 REFERRED TO AGRICULTURE

01/16/18: S.7395 AMEND AND RECOMMIT TO AGRICULTURE

01/16/18: S.7395 PRINT NUMBER 7395A

02/15/18: S.7395A AMEND AND RECOMMIT TO AGRICULTURE

02/15/18: S.7395A PRINT NUMBER 7395B

02/26/18: S.7395B AMEND AND RECOMMIT TO AGRICULTURE

02/26/18: S.7395B PRINT NUMBER 7395C

03/16/18: S.7395C AMEND AND RECOMMIT TO AGRICULTURE

03/16/18: S.7395C PRINT NUMBER 7395D

05/01/18: S.7395D REPORTED AND COMMITTED TO ENERGY AND TELECOMMUNI-
CATIONS

06/07/18: S.7395D REPORTED AND COMMITTED TO RULES

06/13/18: S.7395D ORDERED TO THIRD READING CAL.1765

06/13/18: S.7395D PASSED SENATE

06/13/18: S.7395D DELIVERED TO ASSEMBLY

06/13/18: S.7395D referred to agriculture

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.