OPIS Insights

Propane, a critical NGL component, plays an indispensable role in heating, agriculture, and power generation across the domestic energy landscape. However, the industry is navigating complex regulatory and political hurdles, with battles over energy choice, electrification mandates, and evolving federal policy all likely to factor in its future growth.

To get a clearer view of these high-stakes dynamics, OPIS sat down with Stephen Kaminski, President & CEO of the National Propane Gas Association (NPGA). As one of the most authoritative voices for the U.S. propane business, Kaminski offers an insider’s look at the NPGA’s major legislative victories, the industry’s response to the new administration’s focus on “unleashing American energy,” and the strategic opportunities—from renewable propane to data center power generation—that will define the market over the next decade.

Catch Stephen Kaminski’s Summit Talk at the 16th Annual OPIS NGL Summit, taking place from February 22-25 in Las Vegas, Nevada, and read on for his insights into the policy, market, and technological forces shaping the domestic propane sector.

OPIS: What are the most impactful differences you see with the new administration versus the prior administration on the US propane business?

Kaminski: The current Administration has demonstrated a strong commitment to an all-of-the-above energy strategy—one that values domestic production and recognizes the role of low-emission, reliable, and resilient fuels like propane. The White House, U.S. Department of Energy (DOE), and Environmental Protection Agency (EPA), along with many in Congress, are taking a far more balanced approach to energy policy than we saw under the previous Administration.

Energy, and particularly liquid fuels, has become a clear priority. The Administration’s focus on “unleashing American energy” has allowed NPGA to take a proactive and assertive stance at the federal level, rather than the defensive posture we were often forced into before.

Already in 2025, NPGA has successfully leveraged the Congressional Review Act to partner with Congress and the White House to overturn two regulations that would have had major negative impacts on the propane industry:

• A DOE rule from late 2024 that would have eliminated a significant percentage of the non-condensing residential tankless water heater market.
• A rule that would have mandated electric bobtails over time across 17 states.

In addition, NPGA secured two significant regulatory victories this year, protecting the continued use of residential boilers as well as hearth and outdoor propane products—both of which had been targeted by DOE under the prior Administration.

On the codes and standards front, NPGA achieved multiple wins:

• Secured a favorable ruling before the National Council on Weights and Measures, safeguarding more than 24,000 propane dispenser units nationwide.
• Blocked a proposed amendment to the International Energy Conservation Code (IECC) that would have required all new homes to be built “electric-ready” for space and water heating.
• Shepherded a change to NFPA 58 to permit reinforced thermoplastic piping, modernizing safety and installation practices.

At the state level, NPGA submitted a comprehensive letter to the U.S. Attorney General and the White House identifying 139 state and municipal laws, regulations, and policies that warrant review by the U.S. Department of Justice under President Trump’s Protecting American Energy from State Overreach Executive Order.

States are making progress on workforce policy. Iowa and Kentucky recently enacted laws allowing 18- to 20-year-old CDL holders to obtain hazardous materials endorsements (HME) for intrastate propane deliveries—bringing the total number of states with such provisions to twelve, thanks in large part to state and regional associations.

OPIS: What are the most important legislative and regulatory efforts you see that need to be addressed under the current administration?

Kaminski: There are numerous additional matters NPGA is pressing under the current Administration and Congress.

Energy Choice. NPGA’s signature ask is for a national Energy Choice law. Energy choice has been passed in 28 states (thanks in large part to state and regional propane gas associations), protecting just over 50% of all propane gallons sold in the U.S. by preventing municipalities from banning gas. Our aim is to secure a national energy choice law to prevent states from passing gas bans.

NPGA’s energy choice bill has been introduced in the U.S. House of Representatives by Representative Langworthy of New York and in the U.S. Senate by Senator Justice of West Virginia. We have 90+ cosponsors to date on the House side and several on the Senate side. NPGA anticipates that the House Energy and Commerce Committee will mark up the legislation in the coming weeks—a key step before a full House vote. Following that, we’ll urge the Senate Energy and Natural Resources Committee to take up the measure for consideration.

EPCA Reform. Certain members in Congress have expressed interest in reforming the Energy Policy & Conservation Act of 1975 (EPCA), which was last reformed in 2007. EPCA established a comprehensive federal energy policy aimed at increasing energy security by focusing on domestic supply, energy efficiency, and conservation.

NPGA is pressing several recommendations for EPCA reform including strengthening federal preemption language within EPCA by closing any perceived loopholes and requiring the U.S. DOE to use full fuel cycle metrics in its energy usage definitions rather than site-only metrics which don’t account for energy losses that occur during the generation, transmission, and distribution of electricity.

Like the Energy Choice Act, EPCA reform would be subject to a 60-vote threshold in the U.S. Senate, so will likely face a steep uphill effort to garner the necessary bipartisan support needed.

LIHEAP. The Low-Income Home Energy Assistance Program (LIHEAP) remains a critical safety net for low-income Americans who rely on propane and other fuels to heat and cool their homes. Roughly five percent of all annual propane sales are supported by LIHEAP funding, which is distributed through federal block grants to the states.
Despite its long-standing bipartisan support, LIHEAP faced significant risk this year when the Administration proposed eliminating the program and placed Health and Human Services (HHS) staff overseeing it on leave. NPGA mobilized quickly, working in coalition with other energy groups and making LIHEAP a top priority during Propane Days, where industry members held over 320 meetings with Congressional offices in June.

Since then, both the U.S. House and Senate have released the text of their Fiscal Year 2026 appropriation bills, and both have inserted LIHEAP, in fact including modest increases in LIHEAP funding. Since Congress is unlikely to reach a deal and pass these bills, it would have to fund the government with stopgap funding legislation, known as a continuing resolution (CR). When Congress passes a CR, it will fund LIHEAP at current levels.

OPIS: Have you seen any impact on the market from the tariffs the administration has implemented, and if so, how is NPGA addressing the current situation?

Kaminski: NPGA began preparing for potential tariff challenges well before President Trump took office. In early January, our Executive Committee met to develop a comprehensive strategy on tariffs. We retained experienced trade counsel, gathered member feedback and economic and logistics data, and launched the NPGA Propane Tariffs Portal to provide real-time information and guidance to the industry.

Our concerns centered on two main areas: propane imports from Canada and the global supply of parts, equipment, and metals used in propane operations. NPGA initially grafted propane onto the 10% tariffs for oil (as opposed to 25% for all Canadian products), but once it became clear that the USMCA treaty would hold, propane from Canada was deemed exempt.

On the parts and equipment side, propane companies are affected by the same broad tariffs imposed on steel, aluminum, copper, autos, and automotive components, as well as by reciprocal, country-specific tariffs. Because these tariffs were enacted under the International Emergency Economic Powers Act (IEEPA), there is currently no formal exclusion process available.

That said, there is ongoing litigation challenging the legality of the country-level tariffs. Both the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit (in a split decision) have ruled that the tariffs were not properly authorized. However, rollbacks have been paused while the U.S. Supreme Court considers the case. NPGA continues to monitor this litigation closely, given its significant implications for our members.

In addition, retaliatory tariffs imposed by other nations have affected U.S.-manufactured propane equipment and components exported overseas, adding further complexity to global market dynamics.
Congress has expressed interest in reopening the United States–Mexico–Canada Agreement (USMCA) for review. NPGA is currently gathering member input to shape its position. One area of focus is ensuring that USMCA remains the definitive and comprehensive framework governing tariffs among the three countries—preventing any supplemental or retaliatory tariffs outside of the agreement’s provisions.

OPIS: What does NPGA see as obstacles to further growth of propane markets?

Kaminski: While the current federal government is generally supportive of propane, several states are advancing aggressive anti-gas and pro-electrification policies. These include outright gas bans, all-electric building standards, and carbon taxes framed as cap-and-trade programs or low-carbon fuel standards.

NPGA is actively working with state and regional propane associations to counter these measures. Among others, significant legislative efforts in California, Colorado, Illinois, Maryland, Massachusetts, New Jersey, New York, Rhode Island, Vermont, and Washington State are being closely monitored and addressed through advocacy and coalition efforts.

In New York, for example, NPGA is leading a coalition in a federal lawsuit challenging the state’s new construction building code, which if not enjoined will prohibit installation of conventional fuel equipment—including propane—in most newly constructed buildings, including homes, starting January 1, 2026. We believe these actions are preempted by the Federal Energy Policy and Conservation Act. NPGA is also engaged in state- and municipal-level litigation in Washington, Maryland, and Denver to protect the ability of propane companies to serve their customers.

OPIS: What does the NPGA see as the greatest growth opportunities for propane markets domestically and outside the US?

Kaminski: Power generation represents one of the most significant growth opportunities for propane, both domestically and internationally. Applications such as standby generators, electric vehicle charging systems, combined heat-and-power units, towable and portable generators, and microgrids all provide substantial potential to expand propane’s market presence.

NPGA’s partners at the Propane Education and Research Council (PERC) have invested heavily in educating the industry about these opportunities. Resources such as PERC’s Ultimate Guide to Power Generation highlight how propane can meet growing energy demands in a cost-effective and reliable way.

Additionally, NPGA recently released a white paper exploring propane’s role in data center power generation, further demonstrating the versatility and strategic potential of propane in critical energy infrastructure.

OPIS: Have rising export volumes had an impact on supply for the domestic market?

Kaminski: Not that NPGA has observed to date. American propane field production—which has grown dramatically over the past 15 years—continues to rise. In July 2025, the United States produced a record 72.3 million barrels of propane. For context, production in July 2010 was just 17.6 million barrels, meaning monthly output has increased more than fourfold since then.

As the space heating and crop drying season gets underway, U.S. propane inventories remain robust. According to EIA data, national propane stocks—excluding propylene barrels at terminals—reached an all-time high of 103.4 million barrels.

From a logistics standpoint, NPGA took proactive steps earlier this year to safeguard domestic supply and ensure market flexibility. In early 2025, NPGA secured the longest and broadest regional Hours-of-Service (HOS) exemption in history: first covering the entire continental United States for 21 days, followed by a 43-state extension for an additional 15 days, and a subsequent 22-state exemption for another 13 days. During that cold spell, U.S. propane consumption surged to 1.48 million barrels per day in January 2025—the highest monthly level since February 2007.

To build on that success, NPGA has petitioned the Federal Motor Carrier Safety Administration (FMCSA) for a five-year, seasonal HOS waiver that would allow a 90-day exemption (December 15–March 15) to be activated by NPGA based on objective conditions. If approved, this would provide the industry with greater agility to respond to severe winter weather while ensuring compliance through appropriate data tracking.

NPGA’s Propane Supply and Logistics Committee continuously monitors and addresses issues that could affect supply and distribution. Leveraging the committee’s broad expertise, NPGA actively collaborates with the U.S. Energy Information Administration (EIA), Surface Transportation Board (STB), FMCSA, pipelines, Class I and short-line railways, shippers, and transport carriers to maintain reliable inventories and ensure propane is available to customers nationwide.

OPIS: What do you think is the best new technology utilizing propane and/or propane applications?

Kaminski: The propane industry is full of innovative thinkers and doers, making it difficult to single out just one technology. Each year, the World Liquid Gas Association showcases cutting-edge advancements at its Global Technology Conference, highlighting remarkable innovations from across the propane sector. Project descriptions from the eleven 2025 finalists can be found here: Global Technology Conference · Liquid Gas Week.

These projects demonstrate that efficiency and safety remain top priorities, while technologies leveraging the Internet of Things (IoT) and artificial intelligence (AI) are rapidly advancing. For example, AI-powered systems are now being used to automate cylinder counting on trucks at filling facilities and to perform automated cylinder tare reading.

OPIS: Do you think renewable propane will have a significant percentage of the market within the next 10 years?

Kaminski: Renewable propane is a cornerstone of the propane industry’s long-term future. Chemically identical to conventional propane, it is produced from sustainable sources making it a true “drop-in” fuel that can be used in existing appliances, vehicles, and equipment without modification. The industry is actively investing in and advancing renewable propane to ensure we continue delivering a low-carbon, reliable energy option to consumers.

While the potential is significant, the pace of renewable propane’s growth will depend on several key factors, including the scaling of production, feedstock availability, and overall market development. Currently, most renewable propane is produced as a co-product of renewable diesel and sustainable aviation fuel. Expanding dedicated production capacity and ensuring access to sufficient feedstocks will be critical to broadening supply and managing costs.

One particularly exciting development is the “on-purpose” production of renewable propane from camelina oil. Camelina sativa is a non-food oilseed crop that thrives in cooler U.S. regions and is drought- and pest-tolerant. Camelina enriches soil health, prevents erosion during fallow periods, and its seed yields about 40% oil, roughly double that of soybeans, while the residual meal is FDA-approved for livestock feed.

From an emissions standpoint, renewable propane produced from camelina oil achieves a lower carbon intensity (CI) score than the U.S. electric grid in 49 states. Even renewable propane made from other oil-based feedstocks outperforms the electric grid in 45 states. That means renewable propane is already positioned as one of the lowest-carbon energy options available and its role in America’s energy mix will only grow stronger over the next decade.

OPIS: What is NPGAid?

Kaminski: NPGAid is a new program operated by the National Propane Gas Foundation that provides financial assistance to employees of NPGA member companies who are affected by large-scale natural disasters or by personal events that impact their homes.

The propane industry has long acted as an energy first responder, delivering both people and product to help communities recover in the wake of disasters. Recent events—from hurricanes in the Southeast and Florida, wildfires in California and Hawaii, floods in Texas, to tornadoes across Missouri, Kentucky, Kansas, and other central states—highlight how quickly tragedies can strike, anywhere and in any form.

NPGAid extends that spirit of support directly to our industry peers. Whether an employee is impacted by a major disaster, a home accident such as a tree falling through a roof, or a fire caused by electrical issues, NPGAid serves as a “financial first responder” for propane industry employees. The program is designed to operate on the principle of “By Propane, For Propane.”

The application process is fully online, straightforward, and 100% confidential. NPGA covers all administrative costs, ensuring that every dollar donated goes directly to helping industry peers. In addition, NPGA’s Executive Committee has generously agreed to match up to the first $100,000 in donations.

The most immediate way to support NPGAid is through donations, which can be made on a one-time or recurring basis at npgaid.com. Donations can also be made via text by sending NPGAid to 71777.

OPIS: What do you think is the single most important thing privately owned propane companies should do now to ensure success over the next 10-15 years?

Kaminski: Be expansive into new market sectors. Between electrification efforts and appliance efficiency, there is a limited amount of organic gallon growth available in traditional residential space and water heating. But there is almost unlimited potential in the areas of power generation as described above and in diesel displacement in sectors such as fleet vehicles and buses, generators, material handling lifts, port tractors, and irrigation engines.

By strategically pursuing these high-growth applications, propane companies can diversify their business, capture new revenue streams, and position themselves for long-term success over the next decade and beyond.

About NPGA
The National Propane Gas Association (NPGA) is the national trade association of the propane industry with a membership of about 2,400 companies, and 36 state and regional associations that represent members in all 50 states. Membership in NPGA includes retail marketers of propane that deliver the fuel to the end user, propane producers, transporters and wholesalers, and manufacturers and distributors of equipment, containers, and appliances.