MICHIGAN'S POWER BROKER OF TECH, ENERGY AND BANKING - SEN. DAN LAUWERS - Spring/Summer 2021
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Spring/Summer 2021 MICHIGAN’S POWER BROKER OF TECH, ENERGY AND BANKING SEN. DAN LAUWERS
CUSTOM
TRUCKS BUILT
BY PROPANE
PEOPLE
Trucks Built to Your Specs
Parts, Repair, Testing, Calibration
Tests & Inspections - DOT/V,K,P,I & T
Sandblasting & Painting
Custom Engineering &
Fabrication On-Site
Building the LP Industry's Safest
Work Trucks since 1999
Bobtails – New & Re-Chassis | Crane, Liftgate & Service Trucks |
Cylinder Delivery Trucks & Trailers | Transports – New & Refurbished | Transloaders
COMMITMENT TO QUALITY BACKED BY A SIGNATURE
Order your truck today by contacting one of our area sales representatives
www.signaturetruckllc.com
Steve VandeMark Scott Righini Pat Houser
National Sales Manager East Coast Sales Midwest Sales
vandemarks@signaturetruck.com srighini@signaturetruck.com houserp@signaturetruck.com
989-737-3735 603-502-2357 614-929-4111
A TerraVest Industries company tvkinventory.com
MPGA MISSION STATEMENT
To advance safety by working
for a favorable environment
Contents
for propane distribution and
marketing, to increase its
application by demonstrating
4 Message From The President—Jeff Hynes
propane’s value as a clean,
reliable, efficient energy source.
7 Industry News
MPGA Office:
629 W. HIllsdale St.
14 More Food Trucks Roll Into Michigan
Lansing, MI 48933
Telephone: (517) 487-2021
Fax: (517) 485-9408
18 Propane and Pot
www.UseMichiganPropane.com
Propane Journal Committee:
26 The Days of Shock and Awe Climate Reporting are Over
Rob Vandemark, Industrial
Propane Service, Inc.
David Lowe, Pro Image
30 The Blackouts Have Only Just Begun
Communications
Tom Jaenicke, ATomiK Creative
Solutions, Consultant 33 Texas Energy Crisis a Warning for Michigan
MPGA Management and
Legislation Consultants:
38 Featured Supplier—Angus Energy
Kindsvatter, Dalling &
Associates, Inc.
629 W. Hillsdale St. 45 Renewable Propane is Coming. Are You Ready?
Lansing, MI 48933
Derek Dalling
46 Q&A with Michigan’s Power Broker of Tech,
Christian H. Kindsvatter
Energy and Banking—Sen. Dan Lauwers
Jason Wadaga
Matthew Solak
Denise Stone
Lauren Concannon
Quintanilla Dowdell
Geri Root
Trina Miller
Erin Dalling
Melissa Travis
Propane Journal is published bi-annually by the
Michigan Propane Gas Association, 629 W. HIllsdale
St., Lansing, MI 48933. The Propane Journal is paid
for in part by a rebate grant from the National
Propane Education & Research Council and is MPGA’s Propane Journal is dedicated to providing education
available for free to the marketers and the public. All
inquiries and address changes should be sent to the
and safety articles for both propane consumers and marketers.
above address. Articles written by outside authors do The Propane Journal is supported in part through a state rebate
not necessarily reflect the view or position of the
Michigan Propane Gas Association (MPGA). MPGA’s granted from the National Propane Education Research Council.
position on key issues will be clearly stated.
Manuscripts are accepted at the approval of MPGA The Propane Journal is circulated to all marketers in Michigan
who reserves the right to reject or edit. The Propane
Journal does not constitute endorsement of the
and public interest groups across the state.
advertiser, its products or services nor does the
Propane Journal make any claims or guarantees as to
the accuracy or validity of the advertiser’s offer and
reserves the right to reject any advertising deemed
unsuitable. Advertising rates and other information
available upon request.
www.USEMICHIGANPROPANE.com 3
MESSAGE FROM THE PRESIDENT
What a year to reflect back on! Who would have thought the Covid
Pandemic would change our Industry and our lives like it has? The
Propane Industry faced many challenges, some of which we had
never encountered before. Restricted access to offices, customers
and vendors were commonplace. Social Distancing became the
normal routine and masks were a way of life.
As we see a slow return to some normalcy, I am proud of the way the
Propane Industry has come through this Pandemic. Moving forward,
we will continue to face unknown Covid related problems. As in the
past, the Propane Industry will solve these problems with the same
relentless decision making. These adjustments have been a strength
of our Membership and will continue to keep Michigan a Propane
Jeff Hynes
MPGA President Industry leader in the U.S.
Even with all of these challenges, the MPGA leadership and it’s
Members have moved forward on some very important Industry
related issues. With your help we defeated the progress of Bill 4420,
which would have given $250,000,000 to major Gas and Electric
Companies. These free funds would have been used to extend their
rural gas lines. This free expansion would have had a huge negative
affect on our rural business.
After many years of discussion, I am also proud to say our Propane
Checkoff Legislation has become reality. In record time and with your
support, the Propane Commission was appointed by the Governor.
The processes are already in motion to start the collection of funds
and distribution of rebates to expand our Industry’s Market.
During the Pandemic we have also stood beside Enbridge in support
of Line 5. We have worked hard to provide accurate information to
the residents of Michigan and others who oppose Line 5. We will
continue to support Line 5 as they work toward completion of the
project.
In closing, I am very proud to have served as your President during
this “Pandemic” period and look forward to working with you in the
future. Rather than remember it as the “Covid Year” I will reflect on
how well this Industry handles change and how much progress we
have made on some very important issues related to the success of
the Michigan Propane Gas Association.
4 MICHIGAN PROPANE GAS ASSOCIATION
Michigan Propane Gas Association Summer Convention
PROPANE IS
ESSENTIAL
July 21-23, 2021 • Great Wolf Lodge
For more information and to register, visit mipga.org
www.USEMICHIGANPROPANE.com 5
2020–2021 MPGA BOARD OF DIRECTORS
OFFICERS Long Range Planning Government Affairs
Matt Parsch Wayne Kohley
President Al Parsch Oil & Propane Co. Excel Propane
Jeff Hynes matt@parschoil.com wkohley@excelpropane.com
jhynes@kentoilpropane.com
Marketing District II
1st Vice President Blaine Cronn Fritz Schinck (2021)
Rob Vandemark Kal Gas Avery Oil & Propane, Inc.
Industrial Propane Service, Inc. bcronn@gmail.com fritzs@averyoilcompany.com
rob@ipsequipment.com Mike George (2022)
Membership
Amerigas
2nd Vice President Ray Duimstra
mike.george@Amerigas.com
Larry Otto Crystal Flash
LDO Consulting rduimstra@crystalflash.com District III
lotto989@charter.net Scott Fleetwood (2021)
Michigan PERC Tri-Gas Distributing Co.
Treasurer Bruce Montroy scottf@trigasco.com
Scott Underwood Bergquist, Inc.
Alto LP Gas bruce.montroy@bergquistinc.com Scott Overholt (2022)
sunderwood@altogas.com Tri-Gas Distributing Co.
Michigan Propane PAC scotto@trigasco.com
Secretary Jason Kratt
District IV
Randy Halstead Hamilton’s Propane
Scott Gabriel (2021)
Homeworks Tri-County Propane jasonkratt@yahoo.com
Fick & Sons
rhalstead@homeworks.org sgabriel@fickandsons.com
Propane Emergencies
NPGA State Director Brian Lincoln Cindy Walker (2022)
David Long Stanford LP Gas Amerigas
Long’s Propane Gas, LLC bjlincoln@slpg.net Cindy.walker@amerigas.com
dave@longsgas.com
Propane Emergency Response Network District V
NPGA District #5 Director Kris Bowman Aaron Huizenga (2021)
Tom Jaenicke Bowman Gas Company Lakes Gas Co.
ATomiK Creative Solutions, LLC krisbowman@centurytel.net ahuizenga@lakesgasco.com
tom@atomikenergysolutions.com Kris Bowman (2022)
Regulatory Affairs
Randy Halstead Bowman Gas Company
Immediate Past President
krisbowman@centurytel.net
Matt Parsch Homeworks Tri-County Propane
Al Parsch Oil & Propane Co. rhalstead@homeworks.org Supplier Directors
matt@parschoil.com Jerry Belknap (2021)
Safety & Compliance
Bergquist, Inc.
Larry Otto
COMMITTEE CHAIRS Angus Energy
jerry.belknap@bergquistinc.com
Alternative Fuels lotto@angusenergy.com Jim Zuck (2020)
Marshall Excelsior
Scott Underwood
Scholarship jzuck@marshallexcelsior.com
Alto LP Gas
Ray Duimstra
sunderwood@altogas.com Executive Director
Crystal Flash
Derek Dalling
Convention rduimstra@crystalflash.com
Kindsvatter Dalling & Associates
Kim Godlewski
IPS Equipment, Inc. DISTRICT DIRECTORS Active Past Presidents
kim@ipsequipment.com (not listed above)
District I
Guy Bowman Marv Ockerman
Mandy Swanson (2021)
Eduction Chris DeGrote Terry Rhoads
Amerigas
Tim Myers Tom Jaenicke Don Rittersdorf
mandy.swanson@amerigas.com
IPS Equipment, Inc. David Lowe Kandy Scott
Travis Latchaw (2022) David Montgomery Andrew Vanderboegh
timm@ipsequipment.com
Amerigas
Travis.latchaw@amerigas.com
6 MICHIGAN PROPANE GAS ASSOCIATION
Industry News
MPGA Summer Convention—July 21-23 ago as a concept and quickly became a unique
safety group, a one-of-a-kind in the country.
PERN’s efficient support system helps onsite fire
departments in case of a fire emergency that
may involve propane. Fire departments have
a 1-800 number to reach a PERN dispatcher
who then contacts the network direct. That
The Michigan Propane Gas Association Annual network contact works directly with the fire
Summer Convention will be held July 21-23, at contact to determine if a PERN trailer needs to
the Great Wolf Lodge in Traverse City, Mich. The be deployed. The association is dedicated in
convention includes a number of fun activities providing all training and financial compensation
for members and their families. Be sure to to network members.
reserve your rooms by June 20 to receive the
Since 2000, PERN has only been deployed twice
special convention rate.
within the state. The fire department is very
PERN to Expand Manpower appreciative of this system and the proactive
approach the MPGA has taken to supply back up
The MPGA is looking for a few good men/women
if needed.
to become part of the association’s safety
network called PERN, or Propane Emergency Contact Jeff Vandemark (810) 266-4687 or
Response Network. PERN began nearly 15 years Jeff@industrialpropaneservice.com
continued on page 8
LPG NH3 Supply, Inc.
The Brands You Know and Trust
from a Supplier You Can Rely On
Serving The Propane Industry Since 1976
WORTHINGTON
C Y L I N D E R S
1-800-328-0314 www.lpgandnh3.com
www.USEMICHIGANPROPANE.com 7
Industry News continued from page 7
Hopsicker Acquires 100% of
Ray Murray, Inc.
On January 7, 2021, Ray Murray, Inc. announced
its acquisition by Hopsicker.
A planned transition began back in 2005
between Hopsicker and the Murray family when
they began working together on a planned
transition of ownership.
Prior to RMI, Mike Hopsicker was CEO of Agway (back row, L to R) Jim, Ray and John Murray
Inc., and spent 8 years as the CEO of Agway (Front row, L to R) Jeff and Mike Hopsicker
Energy Products, one of the largest retail
marketers of propane and fuel oil in the US. Ray Murray summarizes the milestone by stating,
“This is a momentous occasion for our families,
Over the last several years, the company and and the entire team at RMI.We have thoroughly
its industries certainly faced their share of enjoyed working with Mike Hopsicker on the
headwinds and challenges, but ultimately RMI transition. His family has become our family!” Jim
was able to enjoy significant growth and expand Murray added “Although it is a little bittersweet,
its geographic reach through a combination our gratitude to Mike and the entire Ray Murray
of 4 acquisitions. It has grown to be one of the Inc. team for all that has been accomplished
largest two-step distributors in both the propane far outweighs those feelings. We are indeed a
and hearth and grill industries. family!”
8 MICHIGAN PROPANE GAS ASSOCIATION
According to Mike Hopsicker, New Corporate Vice During his short time with RMI,
“The Murray’s and I are Presidents Join the he spearheads a number of
both very excited to have Hopsicker Team improvement projects.
completed the successful
Two new Vice Presidents Porter has an extensive career
transition of ownership! While
were announced after the history in operations and
it has been in process for 15+
acquisition. Casey Harvey was holding leadership roles. Just
years, it is also bittersweet.
promoted to Vice President of prior to joining RMI he was the
I am sure that the Murray’s
Sales and Scott Porter is the Director of Purchasing and
have mixed feelings regarding
Vice President of Operations. Operations with Wes-Grade
the final sale of the family
Components in Hartford, CT.
business that they have lived
and loved for so long. But
Porter has a BS in Geological
in the process we formed a
Science from Bradley
very good partnership, and
University (Peoria, IL) and
a GREAT friendship! They
MBA from Washington
are a wonderful family, and I
University, St. Louis, MO. Scott
hope they can look back with
lives in Simsbury, CT with his
pride on all that they and their
wife and two grown daughters.
family has accomplished. I am
extremely thankful for all they
have done to help me over Casey Harvey
these past years!”
Ray, Jim and John will remain
Harvey began with RMI as
an important part of the
a Regional Sales Manager
RMI management team as
in 2008. After successfully
advisors to the business, and
growing the Mid-Atlantic
will continue to assume their
territory, he was promoted
current management roles for Scott Porter
to RMI’s Director of Sales in
several years to come.
2013. In his new role as VP
Ray Murray reflected of Sales, he will lead RMI’s 14
“Words cannot express what Sale representatives as well About Ray Murray, Inc.
a privilege it has been to be as oversee all company sales
Ray Murray Inc. is a distributor
part of this organization since activities as well as provide
of propane equipment, hearth,
we opened the doors back primary leadership to RMI’s
heating and outdoor living
in 1973. We will be eternally marketing.
products headquartered in
grateful for this opportunity.”
Harvey is a graduate of Lee, MA. It currently operates
John Murray, the youngest of
Townson University, Magna through four warehouse
the Murray family, summed
Cum Laude, with a BS in locations in Flint MI, Lee MA,
it up well “I am so proud of
Philosophy. He lives in the Bensalem PA, and Goldsboro,
what has been accomplished
Baltimore, MD area with NC. It has been providing
getting to this point. Mike has
his wife and his two young propane equipment and
assembled an outstanding
children. appliances to propane dealers
team, and I am looking
in the Northeast since 1973.
forward to continuing to work Porter joined RMI in 2016 For more information visit
with him and the entire team to help optimize RMI’s ERP www.raymurray.com.
to help RMI reach even greater system, assist with acquisitions
heights!” and improve operations. continued on page 10
www.USEMICHIGANPROPANE.com 9
Industry News continued from page 9
New Propane Commission wholesalers throughout North America.
Established by Governor The next Propane Commission will be on
Tuesday, June 22 at 2 p.m.—held at the MPGA
The new Propane Commission was created by
headquarters in Lansing. This meeting is open to
Public Act 332 of 2020 to educate residents,
the public.
business owners, and other users of propane on
the safe use of propane, and promote the use Governor Appoints Propane Commissioners
of high efficiency appliances and equipment
• Kristopher H. Bowman—of Gulliver—is the
through rebate and incentive programs for
president of Bowman Gas Company. He’s a
Michigan residents.
member of the MPGA Board of Directors and
The Commission agreed unanimously that the Chair of the Propane Emergency Response
1/10 of a cent per gallon assessment on propane Network Committee. Bowman will serve from
consumed in Michigan will begin July 1, 2021. April 9, 2021 to July 1, 2024.
Therefore, beginning July 1, ALL gallons sold
• Aaron M. Huizenga—of Kewadin—is the east
to Michigan propane companies or transported
division manager of Lakes Gas Company and
to Michigan must be assessed the Michigan
a member of the MPGA Board of Directors. He
assessment of 1/10 of cent per gallon.
holds a Bachelor of Arts in Communication
The MPGA encourages all Michigan retailers to from University of Michigan. Huizenga will
communicate this to your propane wholesaler(s) serve from April 9, 2021 to July 1, 2023.
immediately. Per the new Michigan statute, all
• Wayne Kohley—of Norton Shores—is the
assessments must be remitted quarterly to the
president of Excel Propane Company. He
Michigan Propane Commission and any late
is a member of the MPGA and is chair of the
payments are subject to fines and penalties. The
Governmental Affairs Committee. Kohley will
MPGA will be mailing notifications to propane
serve from April 9, 2021 to July 1, 2022.
ADDING VALUE
For more than 30 years, UHY LLP has been
providing value-added services to some of the
Midwest’s finest propane companies. Because we
understand your operations and the complex tax,
accounting and business issues surrounding the
industry, we are able to identify opportunities
and bring tangible value to our clients.
Contact Keith A. Moore, CPA
Partner & Propane Practice Leader
Phone 586 843 2545
Email kmoore@uhy-us.com
Website www.uhy-us.com The next
level of service
An independent member of UHY International
10 MICHIGAN PROPANE GAS ASSOCIATION• Thomas W. Olive—of Grand Rapids—is the Wheeler, MI, to be completed in the second half
president and CEO of Crystal Flash, Inc. of 2021.
He holds a Bachelor of Science in Business
As a part of the acquisition, NGL and Lambda
Administration from Drake University and
entered into a multi-year “keep dry” agreement,
a Master of Management from Northwestern
under which NGL will be marketing Lambda’s
University. Olive will serve from April 9, 2021 to
propane production at Kalkaska. NGL will also
July 2, 2023.
deliver supplemental propane to Kalkaska to
• Andrew Vanderboegh—of Grand Rapids—is satisfy Michigan’s robust winter demand.
the director of advertising, marketing and
This is exciting news for Michigan propane
sales for Altogas. He holds a Bachelor of
consumers and retailers. NGL provides a unique
Arts in Communications from the University
offering to its customers with stability and
of Dayton. Vanderboegh will serve from
flexibility of supply through three locations
April 9, 2021 to July 1, 2024.
at Marysville, Wheeler, and Kalkaska. These
locations are linked together by the Ambassador
Propane Commission Positions
Pipeline which is backed by a large storage
• First Chairman—Andrew Venderboegh
position at Marysville and propane production at
• Vice Chairman—Kris Bowman
Kalkaska along with rail receipts when necessary.
• Treasurer—Tom Olive
• Secretary—Wayne Kohley
GRAND RAPIDS NGL’s investment shows our commitment to
delivering propane across Michigan safely,
efficiently, and in an environmentally responsible
NGL Acquires Ambassador Pipeline
TEMPLE
from Lambda Energy way.
continued on page 12
FARWELL
NGL Supply Wholesale, LLC Acquires Pipeline Ambassador Pipeline
from Lambda Energy Resources Ambassador Pipeline
LAPEER
NGL Supply Wholesale, LLC (“NGL”) is excited to
announce it has acquired a 225-mile natural gas
liquids pipeline from Lambda Energy Resources
(“Lambda”) that spans from Marysville, MI to
LAKE HURON
Kalkaska, MI. This is an outstanding acquisition
KALKASKA
for NGL that complements its existing liquids
assets in the Upper Midwest and expands its
presence with anchor assets in the state of
GREENBAY
Michigan, one of the top propane markets in the
LAKE MICHIGAN
United States.
The pipeline, named the Ambassador Pipeline, SAGINAW
will be utilized for propane service on a year-
WHEELER SARNIA
round basis. NGL is investing in incremental
CLEAR
infrastructure to make the pipeline safer and
GRAND MARYSVILLE
capable to accommodate bidirectional flow. RAPIDS
LAKE
Once completed, propane may be injected and DETROIT
received on both the north end of the pipeline
LEMON
IOWA T
at Kalkaska and on the southern end of the line
CHICAGO
CITY
at Marysville. Concurrently with the pipeline LAKE ERIE
upgrades, NGL has also begun constructing SOUTH BEND TOLEDO
a pipeline-supplied propane terminal near
www.USEMICHIGANPROPANE.com 11 CANIndustry News continued from page 11
SHELTON, WA
RITZVILLE, WA
MONTREAL BANGOR
VANCOUVER, WA
AUBURN
SIDNEY, MT
BERLIN
NORFOLK
PINE
BEND KALKASKA WESTFIELD
ALBANY
SELKIRK
ROSEMOUNT GATEWAY ONEONTA W. SPRINGFIELD
WOLSEY
GREENBAY SARNIA
WHEELER
VERNON MARYSVILLE WATKINS
CENTER JANESVILLE GLEN
SANBORN BAYWAY
CLEAR ROCKFORD DUBOIS
YANKTON WHITING LAKE DUBUQUE
LEMONT CANTON HOPEDALE MARCUS HOOK
NORFOLK IOWA YORK
GRIFFITH HOUSTON
OGDEN CITY TAMPICO SCIO
MORRIS
COSHOCTON GREENSBURG
PLATTSMOUTH DES MOINES CANTRIL
N. PLATTE GREENWOOD HUNTINGTON BALTIMORE
LEBANON NATRIUM
FARMINGTON STEPHENS CITY
GENEVA TODHUNTER
LECOMPTON TUSCOLA
SAWTOOTH KEARNEY
ROBINSON
NGL CAVERNS CLAY CENTER MOBERLY
WEST POINT
CATLETTSBURG
CHESAPEAKE
PRINCETON
BUSHTON JEFFERSON
CITY
CONWAY E. ST. LOUIS
CARTHAGE APEX
DEXTER
COFFEYVILLE
CHERAW
TULSA LIGHT
MEMPHIS
KINGFISHER, OK LEXINGTON
LITTLE WEST
ROCK MEMPHIS, AR
MILNER
THACKERVILLE, OK
OPELIKA
DEMOPOLIS
ALMA
ALBANY
HATTIESBURG
MAPL Pipeline MONT
BELVIEU PORT HUDSON, LA
Blue Line Pipeline
TEPPCO Pipeline
ONEOK Pipeline
We look forward to serving the great state of About NGL: NGL owns and operates 27 LPG terminals
throughout the United States and Canada, including multiple
Michigan and showing our customers the NGL
terminals in the Minnesota, Wisconsin, Indiana and New
Difference! For more information, please contact England, as well as being a shipper on all major United States
Skip Skalnik at skip.skalnik@nglep.com or common carrier propane pipelines. Additional information
918-477-0549. about NGL can be found at www.nglsupplywholesale.com.
Valve Site Pre Ownership Valve Site NGL Ownership
12 MICHIGAN PROPANE GAS ASSOCIATIONThe MPGA thanks the following individuals for their
contributions and support to the Michigan Propane PAC
and/or the MPGA Advocacy Fund in 2021.
Andrew VanderBoegh Hamiltons Propane Matt Parsch
Applebee Oil & Propane Huron Gas Company Mike Vandenboom
ATomiK Creative Solutions IPS Equipment NGL Supply Company
Bergquist, Inc. Jason Kratt Randy Halstead
Bowman Gas Company Jeff Hynes Rob Vandemark
Co-Alliance LLP Jeff Vandemark Rod Garst
Coyne Oil and Propane Jeremy Kratt Scott Overholt
CR Marketing Jerry Belknap Signature Truck Systems
Daniel Coyne Joe Ross Stephanie Carlson
David Long Kandy Scott Superior Gas Liquids USA
David Lowe Kelsey Coyne-Quackenbush Swan Fuel Service
Dependable LP Gas Ken DuBay Thomas Olive
Don Montroy Kim Godlewski Tiffany Jackson
Endeavor Ag & Energy Kohler’s Propane Company Tim Myers
Excel Propane Kris Bowman Tri-Gas Distributing
Gail Bailey Liberty Propane UHY Advisors
Gerad Himebaugh Long’s Propane Gas, LLC Wayne Kohley
The MPGA especially wants to thank those that generously donated $500 or more:
Bergquist, Inc. Hamiltons Propane NGL Supply Company
Bowman Gas Company IPS Equipment Thomas Olive
Kris Bowman Wayne Kohley Scott Overholt
Stephanie Carlson Jason Kratt Kandy Scott
Dependable LP Gas Jeremy Kratt Signature Truck Systems
Excel Propane David Lowe Superior Gas Liquids USA
The MPGA needs a strong Michigan Propane PAC supported by the entire membership,
the entire Board of Directors, future leaders of the industry, and all propane industry employees.
Please donate to the Michigan Propane PAC and/or the MPGA Advocacy Fund today!
Donate online at: UseMichiganPropane.org
www.USEMICHIGANPROPANE.com 13More Food Trucks
Roll into Michigan
The propane industry has teamed up with Michigan’s fire
experts to help food truck operators follow fire safety standards.
The gravity of Michigan’s post-COVID-economy fire safety inspections. The Michigan Propane
is attracting new food truck operators in droves. Gas Association (MPGA) and the Michigan
In recent years, the industry has outpaced the Fire Inspectors Society are developing new
broader food service sector. Additionally, the procedures and opportunities for truck operators
industry has evolved quickly, as food truck to easily get their rigs inspected.
operators have entered the market to cater
to changing consumer preferences in favor of “Michigan’s food truck operators have a good
expensive, gourmet offerings. As a result of these safety record, and our group is here to make
trends, industry revenue is expected to grow at safety inspections convenient and more
an annualized rate of 7.5 percent. informative,” said Larry Otto, the MPGA’s leader
in public safety.
Michigan food trucks are popping up in dozens
of unique ways. They band together in groups
like the Midland Crossroads Food Truck Park,
where a dozen operators offer everything from
vegetarian to BBQ.
Other trucks offer hyper-specialized dishes, such
as the new MI Vegan Food Truck—a haven for
strict plant-based food lovers. This specialty-
rolling-restaurant covers from Metro Detroit to
Dewitt, Michigan.
Michigan’s Codfather,
Lee Burmeister (a Grand
Rapids diesel mechanic),
is now generating up to
300 orders of fried fish
every Friday during Lent,
from his Hard Knocks Food
Lee Burmeister Truck in Grand Ledge,
Michigan. MPGA LAUNCHES NEW FOOD TRUCK
SAFETY SITE
Food trucks are hitting foodie niches no one In May, the MPGA launched MISafeFoodTruck.
dreamed of, and that creativity is fueling a new com, a website created to help food truck
generation of customers constantly on the operators know the operational rules and
outlook for new operators. regulations of food truck safety, including the
proper way to handle propane.
PROPANE RETAILERS AND FIRE
DEPARTMENTS TEAM UP “Food truck owners use propane for its efficiency
The growing demand for food trucks requires and ease in cooking food fast,” says Otto. “There
a broader effort to help truck owners with their are national and state fire safety standards
continued on page 16
14 MICHIGAN PROPANE GAS ASSOCIATIONYour Midwest
Transportation Company
VESSELS FROM 10,500 TO 19,300 GALLONS
GPS - TRACKED LOAD LOCATION
24-HOUR DISPATCH
DHT Group is a reliable, experienced, transportation company with several divisons, check
out our website! Specializing in PROPANE transportation throughout the Midwest region.
REESE, MI • PORT HURON, MI • NEWPORT, MI • BELLEFONTAINE, OH
Jason D. Akers Stephanie Davis
JAkers@dht-inc.com SDavis@dht-inc.com
616-802-4644 513-260-2884
www.dht-inc.com | 800-833-6365
www.USEMICHIGANPROPANE.com 15operators need to follow in order to pass their local health departments once the establishment
fire safety inspection.” is ready to operate; so applications should
be made at least 30 days prior to the event.
The site includes resources covering the fire Local health departments will issue the actual
prevention standards of the National Fire operating permit at the time of inspection.
Protection Agency, or NFPA-58, and the
Department of Transportation Pipeline and
Hazardous Materials Safety Administration. FOOD TRUCK START-UP COST
$50,0000 TO $60,000
According to Lt. William Smith, Fire Prevention
A 2018 report from Mobile Food Trends and Off
Inspector for the Grand Rapids Fire Department,
the Grid said 34 percent of food truck owners
fires are most notable when operators don’t
surveyed stated that owning a mobile food
follow the standards.
truck business gives them the opportunity to
experiment and test out new menu items and
“All food truck operators need a license to
interesting concepts.
operate and must pass a fire safety inspection.
The DIY food truck operators put themselves and
• A $100,000 investment can result in a
their teams at risk when they don’t follow the
revenue stream of $250,000 to $500,000
fire safety standards. We see this in the field and
per year.
appreciate the help of the propane industry to
help us get the word out,” says Lt. Smith. • The average revenue stream of a food truck is
$290,000.
ARE YOU THINKING OF GETTING INTO THE
• The average time to acquire all needed
FOOD TRUCK GAME?
permits is 37 business days.
You need a plan prior to seeking licensing.
Plan reviews can be requested through the • The average cost of all the permits needed to
local health department. Temporary food operate a new food truck is over $28,000.
service licenses require an on-site inspection by
S TR
GA U
O
CK
T
AU
S
A family of solutions LIQUID
CONTROLS
for the propane industry
T
800-621-4137
EN
PL
NT www.whyips.com
M
P
A
S U I
E Q
16 MICHIGAN PROPANE GAS ASSOCIATIONHow Michigan Ranks Food Trucks, Trailers, Etc.
Department of Agriculture and Rural Development
• A Temporary is a food service establishment which • A Special Transitory Food Unit (STFU) is a
operates at a fixed location for a temporary period temporary food establishment licensed to operate
of time, not to exceed two weeks. throughout the state without the 14-day limits or a
mobile food establishment that is not required to
• A Fixed food service establishment is a facility that return to a commissary.
is a permanent location. This is an operation where
food or drink is prepared for direct consumption
through service on the premises or elsewhere,
and any other eating or drinking establishment or
operation where food is served or provided for the
public.
• A Mobile food service establishment means a food
service establishment operating from a vehicle,
trailer, or watercraft, which is not fully equipped
for full food service and, therefore, must return
to a licensed commissary at least once every
24 hours for servicing and maintenance. The
commissary license number must be recorded in
the appropriate place in order for a mobile service
establishment license application to be processed.
2021 EMPLOYEE TRAINING
CETP, Non-Certified & Cathodic Protection
For a complete schedule and to register, visit www.mipga.org.Propane and Pot MICHIGAN UNIVERSITIES ADD CANNABIS TO CURRICULUM There is a growing interest amongst universities and students in the science of growing and processing cannabis. The University of Michigan’s course, PharmSci 420, covers the underlying biology, chemistry, pharmacology, toxicology and epidemiology of cannabis. Lake Superior State University included Cannabis Chemistry and cannabis business majors back in Fall 2019. Students can earn an associate’s or bachelor’s degree in the chemistry program, and can earn a bachelor’s degree in the business program. Northern Michigan University, in Marquette, which first launched its Medicinal Plant Chemistry program in 2017, is expanding its lab space to be able to grow and conduct research on hemp, as more students enroll. The program has grown from zero to 240 students enrolled in two years. Lake Superior State University has a new cannabis chemistry scholarship and new cannabis testing equipment. Also, the University Lake Superior State University cutting edge of Michigan may soon be growing hemp. cannabis testing equipment 18 MICHIGAN PROPANE GAS ASSOCIATION
FIRE OFFICIALS AND MICHIGAN’S sales projections are expected to reach $1 billion
PROPANE RETAILERS BOLSTER SAFETY in the near future.
OF GROWING AND PROCESSING
OPERATIONS EXPONENTIAL GROWTH OF NEW
GROWERS AND PROCESSORS
The MPGA is working with fire officials on a new
initiative to help keep marijuana processing In 2019, Michigan approved an average of 21 new
and grow operations safe, as the demand for cannabis cultivation licenses per month. That
marijuana continues to grow in Michigan. number has increased to an average 39 licenses
per month in 2020. Many of these businesses are
“Propane is used in marijuana operations and, small grow sites.
like all combustible fuels, it’s important that
operators respect the properties of propane,” Twenty-three states have legalized marijuana use
says Larry Otto, MPGA Safety Chairman. for recreational and/or medical purposes. The
demand and technology for even more potent
Michigan’s pent-up demand for marijuana is real. forms of cannabis are surging. Enter cannabis
Within the first eight days after legal commercial concentrates such as wax, budder, sugar, shatter
sales began on December 1, 2019, sales exceeded and oil.
$1.6 million. In 2020, sales totaled $341 million in
the state. According to a Twitter study, residents Propane professionals are uniquely qualified to
smoked more marijuana in Michigan than any educate the cannabis industry on how to use
other state during COVID in 2020. It’s no wonder propane safely during the extraction process.
continued on page 20
1951-2021 . 70 Years Strong
SmoothRider TM
Trailer
Fork Lift Pat. No 4,023,694
Cylinder
Tank
Storage
Cabinet
Custom
Truck Bodies
FOR ALL OF YOUR GAS HANDLING NEEDS
H&H can meet all of your gas handling needs. options: hydraulic hoist, dualcable topmount or side mount electric
Trucks, trailers, We build our gas handling equipment know winch, or hand winch.
tank storage ing you need and expect quality and perfor Tank storage cabinets — Our rugged CylinderStor cabinets are built
cabinets mance. H&H builds it all in. You’ll reduce labor, for secure outside storage of cylinders, giving you better inventory
increase safety, and save time and money. control and bigger profits. Single & doublesection models are fur
Truck Bodies — We design our truck bodies with your field service nished with keyed padlocks, tamperproof padlock hasps, reinforced
work in mind. Transport, service or deliver cylinders and other awk back panels, and boltdown features for complete security and safety.
ward loads anywhere. Large or small, custom or standard, steel or Call: 800-551-9341 • E-mail: info@hhsalescompany.com
aluminum. H&H offers a large choice of options, including inbed
lift platforms, electric or hydraulic cranes, grated or diamond plated
flooring, and more.
Trailers — Our SmoothRiderTM bulk tank trailers are built to make
moving tanks a breeze. They cushion the load with rubber torsion 16339 Lima Rd., P.O. Box 686 • Huntertown, IN 46748-0686
Phone: 260-637-3177 • 800-551-9341 • FAX: 260-637-6880
axles. One person can operate these trailers with your choice of E-mail: info@hhsalescompany.com • Web: www.hhsalescompany.com
www.USEMICHIGANPROPANE.com 19Propane and Pot continued from page 19
FLASH POINTS IN SAFETY
Extraction process
Solvents such as propane, butane and carbon
dioxide are often the preferred choices to coax
the cannabis oil from the plant.
In addition to non-toxicity, propane has a lower
boiling point than butane, which allows for a
Propane and butane can be used to extract
lower purging temperature.
cannabis oil from the plant.
Extraction hazards
Regulatory Agency (MRA) separates the medical
Propane and butane present potential fire
and retail cannabis sides of the business.
hazards when misused during the extraction
Medical-grown cannabis at a medically licensed
process, and many extraction operators may not
facility is then processed at a medical processor
be aware of safe propane-handling procedures.
and sold at a medical “provisioning center.”
The above “Flash Points in Safety” is according
Recreational cannabis, on the other hand, is
to retired Stuart Flatow, Propane Education &
grown, processed and made available to the
Research Council’s vice president for safety and
public. In Michigan, the medical and recreational
training.
cannabis products have separate supply chains.
There are some exceptions when medical and
MARIJUANA REGULATION
recreational retail locations can share the
For the most part, Michigan’s Marijuana same space.
Make a PAC
Contribution
Thanks for
Your Support!
I want to help support candidates with responsible pro-business
positions on issues affecting the propane industry.
JOIN OUR RECOGNITION CLUBS.
Tank Member $50 or less Transport Member $101 – $249
Bobtail Member $51 – $100 P.I.G.S. Member $250 or more
Make an online donation today:
https://mipga.org/membership/political-action/
20 MICHIGAN PROPANE GAS ASSOCIATIONWhile recreational cannabis sales are legal in For the state of Michigan’s 2020 fiscal year, more
Michigan, the state has more registered medical than $31 million was collected from the 10%
patients than any other recreational-legal state; adult-use marijuana excise tax. Combined with
there were 249,455 as of May 2020, according to fees, there was a total of $45.7 million available
the MRA. This huge number of medical cannabis for distribution from the fund.
patients who tend to be loyal, regular customers,
has propped up a large medical cannabis In total, more than $341 million in adult-use
industry, while the recreational business is just marijuana sales was reported for fiscal year
starting to grow. 2020.
MARIJUANA PAYMENTS DISTRIBUTED TO “The team at the Marijuana Regulatory Agency
MUNICIPALITIES did a tremendous job getting the adult-use
licensing program established and operating
The Michigan Department of Treasury is
efficiently,” said MRA Executive Director Andrew
distributing nearly $10 million to more than
Brisbo. “Infusing over $28,000 per retailer and
100 municipalities and counties as a part of the
microbusiness into local government budgets
Michigan Regulation and Taxation of Marijuana
across the state is very impactful and shows how
Act.
strong and successful the industry is becoming.”
For the state’s 2020 fiscal year, this means each
Michigan lifted its prohibition of marijuana in
eligible municipality and county will receive
November of 2018, when Proposal 1 passed,
around $28,000 for every licensed retail store or
making it legal for recreational use.
microbusiness.
Resources: Michigan.gov, mlive.com, propane.com
PSC and JARCO now have a location in Owosso, MI
Repair & Services
• Internal Tank Inspection
• Radio Remote Test
• Meter Calibration
• D.O.T. Inspection
• Valve, Pump and Meter Repair
Transports & Bobtails Available In Stock – New, Refurbished and Used
JARCO Inc. 8 Carpenter Drive. Salem, IL 62881
Phone: 888-681-3660
www.USEMICHIGANPROPANE.com 21PROPANE
NATURALLY
Michigan Propane, Clean Burning for Over 100 Years
According to the EPA over 60 million Americans use propane gas for
everything from heating and cooling their homes and businesses to running
more than 350,000 propane vehicles on our roads today.
The EPA says propane is the most widely used Alternative fuel in the United States.
Learn more: www.MiCleanPropane.com
22 MICHIGAN PROPANE GAS ASSOCIATIONMIAutogas.com
MICHIGAN Class 4 & Below
PROPANE:
DOMINATES FLEET ROI
Class 5
PROPANE POWERED
FLEET VEHICLES
Over 10,000 propane vehicles run in Michigan.
Propane is easier on engines, costs less in fuel,
fluids and filters and doesn’t require expensive
exhaust systems (EPA Clean Air Act 1970).
Also, propane engines perform
equal to traditional engine systems.
Class 6
$4,000 REBATE AVAILABLE
+ SIGNIFICANT SAVINGS ON:
FUEL FLUIDS FILTERS Class 7
www.USEMICHIGANPROPANE.com 23Thinking About Selling Your Propane Business?
Hear from a former owner who believes he made the right choice with EDP.
“ After narrowing it down to three
companies, all with pretty much the
same offer, I spent considerable time
learning about all three. In fact, I
called four former owners who sold
to EDP and they all had positive
things to say. I kept hearing about the
support they received from EDP after
the sale. That was a big thing for me. ”
Jeff Hynes, Kent Oil & Propane
Energy Distribution Partners will value your legacy. See what other sellers have to say by visiting
edplp.net/testimonials.
If you’re thinking about selling your propane
business, contact David Stroupe, 312.254.5954
or dstroupe@edplp.net for a confidential
conversation. Dave can work with you to achieve a
positive outcome in transitioning your business. E D P L P. N E T
24 MICHIGAN PROPANE GAS ASSOCIATIONSuperior Gas Liquids is a leading North
American natural gas liquids marketing
company providing secure supply and service
solutions. With a full service, value added
approach to natural gas liquids marketing in
the US, our customers rely on us for supply,
transportation, storage, risk management and
logistics services.
SGL’s US marketers are:
• Andrew Duffy – Manager Marketing East
• Andy Pollick – Wholesale Marketing Rep.
• Christian Beaulé – Wholesale Marketing Rep.
Toll Free: 1.888.849.3525
Suite 1400, 840 7 Avenue SW
Calgary, Alberta T2P 3G2
www.superiorgasliquids.com
Email: info@superiorgasliquids.com
Fax: 403.283.6589
www.USEMICHIGANPROPANE.com 25The Days of
Shock and Awe
Climate Reporting
May Be Over
By Joe Ross
Al Gore pushed climate change into the news When applied, the scientific process is very
media and our consciousness. I thank him for it. robust and works best when it’s not rushed.
Being rushed is what caused the Covid-19
His writings and relentless presentations put
research team to change their minds every
the issue on the map.
week. In that case, health science may have
Gore’s actions, starting well over a decade been considered more theoretical than fact.
ago, were followed by waves of environmental
Basic forecasting reports are also displayed
policy. State and federal governments also
in the news media as robust science. Re-
flooded millions of climate research dollars into
porters and members of the public don’t
universities and private sector facilities. This
realize how much guess work makes up
didn’t go unnoticed. Researchers and grant
basic reports—especially forecasting reports.
writers outside the field of climate science
often complained their proposals didn’t get During my time serving on the economic
a second look. roundtable of the Chicago Federal Reserve,
my workforce reports drew considerable
The flood of research led to media stories
amounts of news coverage. The economy
that favored popular, but not always accurate,
was experiencing major swings during the
conclusions. Sadly, the sheer volume of re-
period between the late 1990s to the early
search and attention the climate is now given
2000s. Too often, reporters defaulted to
may be encouraging some flawed conclusions.
highlighting my extreme economic pre-
Here’s the problem. dictions, yet not including the more mod-
erate context of my reports.
Research starts with data, and then the data is
assembled into theories. As often happens, new As more people become exhausted by
data is discovered, which means new theories today’s climate science reporting, a more
evolve and new conclusions arise. Around and measured view may be on the horizon.
around it goes.
26 MICHIGAN PROPANE GAS ASSOCIATIONThe Obama era Department of Energy’s clearly the state of the planet’s future now
chief scientist, Steven Koonin, stunned the requires a conspicuous kind of double vision,
news media in this latest book, Unsettled: What in which a guarded optimism seems perhaps as
Climate Science Tells Us, What It Doesn’t, and reasonable as panic.”
Why It Matters, when he recently wrote climate
In addition to the extreme climate science
change won’t be catastrophic. He’s joined by
reported, we are also losing sight of where
a consensus of researchers who see more
the biggest climate challenges are. Nearly “90
climate solutions than they see alarmist calls
percent of all of the planet’s global emissions
for the end of the world.
come from outside U.S. borders. We could
Climate scientists, Glen Peters and Zeke go to zero tomorrow and the problem isn’t
Hausfather, described emissions data as solved,” John Kerry stated in January. He
misleading, in their 2020 article in Nature, was addressing the world’s role in the climate
Emissions – the ‘business as usual’ story is debate when he stated the Biden green agenda
misleading, a scientific journal based in London, will have no effect on climate unless countries
England. They suggested, “researchers and like China and India join in.
climate media should stop using the worst-case
scenario for climate warming as the most likely
outcome—there are more realistic baselines. Joe Ross is a reporter
at CR News and partner
And those baselines will make for better policy.”
at CR Marketing (digital
marketing firm) whose
Even the self-described climate alarmist and clients include the
scientist David Wallace-Wells optimistically propane industry.
stated in The New Yorker magazine, “seeing
www.USEMICHIGANPROPANE.com 2728 MICHIGAN PROPANE GAS ASSOCIATION
Powered by
Available For
Worldnet Mobile
Worldnet Mobile is designed for merchants who need to accept secure, cardholder present transactions,
without the cost and portability restraints associated with standard desktop terminals.
In partnership with BBPos, we are pleased to present the Chipper 2x Bluetooth dongle
which supports MagStripe (MSR), EMV (Chip) and Contactless payments all in one
compact and cost-effective unit.
Benefits
Secure, cost effective payments anytime, anywhere
Supports all major card types
Real-time authorisation
Backed up by our market leading reporting facility
Sectors
Field Sales Retail outlets
Tradeshows & Conventions Home Call Out Services
Commercial Insurance Reps Trades and Associations
Independent Contractors Retail/Household Deliveries
For further information about Worldnet:
Email: info@quantussolutions.com
Phone: 800-698-5150
Website: www.quantussolutions.com
www.USEMICHIGANPROPANE.com 29By Jason Hayes and Isaac Orr
The Blackouts Have Only Just Begun
There are more workable solutions for a strong and reliable energy future
Rolling blackouts have That becomes a problem because these
hit millions of Texans and reliable “baseload” plants have always been
people across the Great like the pickup trucks of our electric grid — the
Plains, including Missouri, consistent and powerful workhorses that always
Kansas and Oklahoma. show up, functioning best at a steady rate, similar
Severe winter weather has to how a car engine is most efficient at cruising
placed a strain on electricity speeds. Wind and solar, on the other hand, are
supplies and caused erratic and unreliable, producing electricity only
multiple deaths. That sad when the weather allows.
situation is completely
Sometimes they generate large quantities of
unnecessary, but it likely
Jason Hayes electricity; other times they generate nothing and
will increase in the coming
actually become a drag on the system. But when
days.
heavily subsidized wind and solar are running
Unfortunately, if President Biden gets his way, full bore, they can generate so much electricity
blackouts such as these may become a more that the prices for the power they produce can
common occurrence. actually turn negative. Coal and nuclear plants
are then forced to compete with companies that
Throughout his political career, Biden has
effectively can give their product away for free.
advocated for exactly the sort of policies that
In fact, negative wholesale power prices are
have Texas and the Great Plains states locked
actually becoming more frequent.
in their current energy crisis. For more than
30 years as a senator, during his time as vice This may sound great at first but, in the long
president, during his presidential campaign, term, businesses that can’t sell their products
and in his early days as president, Biden has for a profit don’t survive. Eventually, the coal
advocated policies that will leave our energy and nuclear plants lose so much money, they
systems fragile and unreliable. As a result, our are forced to close permanently. Some groups
electricity system’s reliability increasingly risks cheer this loss to the energy system, but for the
resembling the developing world more than a average person, it means the reliable workhorses
global superpower. aren’t available when they may be needed most.
Texas is an early example of this scenario playing
The Obama-Biden administration used a slew of
out during brutal winter weather.
Environmental Protection Agency regulations
to force coal plants off the grid. At the same Which leads us back to Biden’s plan to spend
time, they expanded federal subsidies for $2 trillion building tens of thousands of wind
wind and solar. The growing cost of regulation turbines, installing millions of solar panels,
was compounded by these financial favors and extending the massive subsidies given to
for renewable energy, causing disruptions in renewable energy. His plan will exacerbate the
electricity markets and slowly eroding the impact of unreliable resources on electricity
viability of more reliable nuclear and coal power markets and make the nation’s electric grid even
plants in the United States. more fragile and vulnerable to rolling blackouts.
30 MICHIGAN PROPANE GAS ASSOCIATIONBiden has claimed that extreme weather If we want to avoid the dangers and hardships
events will become more common because of that come with blackouts, we should target
climate change. But as we have seen in Texas Biden’s spending plans toward research and
this week, California this past summer, and the construction of nuclear plants, which can
Midwest during 2019’s polar vortex, wind and store months of fuel on site and emit no CO2
solar can’t be trusted to work during extreme emissions. Doing this would be a far more
weather. So a plan to spend $2 trillion on energy workable solution for a strong and reliable
sources we know we can’t trust, just when we’ll energy future.
need reliable energy most, is hard to understand.
Rolling power outages are never a good thing.
But we have been lucky in most cases to still
have reliable energy available during difficult
times. If the Biden plan is implemented, more Editor’s Note:
This article first appeared in The Hill on February 20,
of these reliable generators soon will be 2021. Jason Hayes is with the The Mackinac Center for
decommissioned and gone. Public Policy. Isaac Orr is with the Center of the American
Experiment.
Contact Us Today!
989.295.5846
SERVICES: Bulk Plant
Design/Builder
Mobile Meter
Calibration
Bulk Plant
Maintenance
Central Propane Service will Central Propane Service is Central Propane Service can
work closely with you to registered with the State of repair any portion of your bulk
provide the right set up for your Michigan with a 100-gallon plant operation from a leak in
needs, whether it’s building a propane prover and a 100-gallon the piping to a complete pump
new facility or adding storage fuel prover. We can come to rebuild. We can service any
to an existing facility. We have your site and do a wellness brand of propane pump. We
the experience and knowledge check on all your propane sell and service any of the tank
to help you make this an easy bobtails, fuel delivery trucks, equipment you may have a prob-
7490 E Lincoln Road
task. We take great pride in and propane dispenser units. lem with from the relief valves
Breckenridge, MI 48615
working on finishing projects Central Propane Service can do to the internal valves. Central
Bulk Plant Construction/Maintenance
in a timely fashion. We use routine maintenance and repair Propane Service is also an expert
Pump Repair | Agriculture Operations only quality pipe and fittings on most meters as well. We at converting cable operated
Vaporizer Installation/Repair
Annual Bobtail/Transport V&K Inspections when piping a project. perform routine maintenance shutdowns to a nitrogen push
Bobtail/Fuel Truck Meter Calibration/ and repair on most meters button shut down for a much
Placed in Service | Tank Buy/Sell
as well as place in service cleaner and more efficient oper-
registration with the state. ation. Chances are if you have an
ongoing problem, we will have
centralpropaneservice.com www.USEMICHIGANPROPANE.com the solution for you. 3132 MICHIGAN PROPANE GAS ASSOCIATION
Texas Energy Crisis a Warning for Michigan
New generation facilities should be reliable
By Jason Hayes
Editor’s Note: More complete information on management, maintenance and construction of
the Texas electricity grid is coming out, and more reliable energy sources.
the failures and rolling blackouts seem to stem
from three major issues.First, there was poor Even wind energy defenders are publicly
planning and slow responses on the part of claiming that wind generation is “reliably
ERCOT, the operator of Texas’ electricity grid unreliable,” meaning the system managers at
Second, decisions were made against winterizing ERCOT didn’t even expect wind to be operating
essential generation equipment, despite similar during the cold temperatures. Wind energy was
cold-related outages in 2011. Third, extreme every bit as reliably unreliable in the Midwest
and unusual cold weather impacted multiple during the January 2019 Polar Vortex event,
generation sources: wind, solar, nuclear, coal when it dropped to essentially no production
and natural gas. during the extreme cold.
While this new information changes the “Texas regulators have deliberately
immediate reporting of the energy crisis, it does designed an electrical system
not change the long-term systemic impacts that prioritizes the construction
of the changes that are being made in Texas, of renewable energy over the
Michigan and across the nation. For more than management, maintenance and
a decade, Texas regulators have deliberately construction of more reliable
designed an electrical system that prioritizes energy sources.”
the construction of renewable energy over the
continued on page 34
Autogas Dispensing
High Differential Pressure Autogas Dispensers NFPA Rules Change Future of Autogas Refueling
EURO Nozzles & Adapters
ZVG2-T
EURO Nozzle
with Scuff Guard
Nozzle Talker
16.0320
16.0331
GasGuard Holster-Mod
Flush Mount
Lockable Holster
(Nozzle not included.)
16.0363
Atlanta GA Chandler OK Dallas TX Fayetteville NC
(800) 241-4155 (800) 763-0953 (800) 821-1829 (800) 447-1625
Houston TX Indianapolis IN Kansas City MO
(800) 334-7816 (800) 241-1971 (800) 821-5062
Little Rock AR Orlando FL Richmond VA St. Louis MO
(800) 643-8222 (800) 821-0631 (800) 368-4013 (800) 423-4685
www.gasequipment.com Gas Equipment Co. TV - www.youtube.com/gasequipmenttv Steve Garrett
www.USEMICHIGANPROPANE.com 33Texas Energy Crisis a Warning for Michigan continued from page 33
“Reliably unreliable” may work in mathematical home thermostat levels to 65° or lower. They
models or when it’s sunny and 75°, but it is were told that the state’s energy system would
potentially dangerous when the real world gives falter if they didn’t cut their energy use.
us cloudy and -20°. It’s also a poor argument
in favor of the drive to build more renewables. During the 2019 Polar Vortex event, Michigan’s
Spending billions to build energy sources that energy systems were strained by rapidly
cannot be depended on when people need them increasing customer demand as a result of
most is irresponsible. extreme cold. At the same time, a major source
of our natural gas supplies failed spectacularly,
“Even wind energy defenders are while wind and solar supplied vanishingly small
publicly claiming that wind generation amounts to the grid.
is ‘reliably unreliable.’”
The Midwest was fortunate, at that time, that we
Unfortunately, Michigan’s utilities are following also had a substantial supply of nuclear and coal
the same path Texas has already trod. They to supply essential energy for heating.
routinely say they are building a diverse and
trustworthy system. But their plans will remove Unfortunately for its residents, Texas is much
coal and reduce nuclear generation, while almost further along in its transition to an unreliable
solely focusing on building more wind, solar renewable energy- focused system that relies
and natural gas. Yet as renewable advocates on just-in-time natural gas back up. In fact, wind
are now admitting, we can’t count on wind sources overtook coal in Texas for the first time
and solar when we may need them most. This in 2020. In October, natural gas supplied Texans
means Michigan’s diverse electrical grid will with 52% of their net electricity demand, wind
rely disproportionately on gas during extreme 22%, coal 17%, and nuclear just over 8%.
weather. The fire at the Ray Compressor Station
in 2019 demonstrates that this is not a solid plan. Winter cold is shutting down over half of the
wind generation capacity in Texas and literally
For the good of Michigan residents, Michigan’s freezing natural gas pipelines. The state’s
electricity utilities need to return their focus to electricity regulator — ERCOT — has imposed
safe, reliable generation options. “rolling” blackouts. Similar measures are being
implemented by the Southwest Power Pool in
The following letter was addressed to Senator Oklahoma, Missouri, and Kansas. Friends and
Dan Lauwers, Chair of the Senate Energy and acquaintances living in the state of Texas are
Technology Committee, and Representative Joe reporting that temperatures in their homes
Bellino, Chair of the House Energy Committee have dropped below 50° and exposed pipes are
in recent months. freezing.
Dear Chairmen Lauwers and Bellino, This is exactly the same sort of situation we
experienced during the 2019 Polar Vortex. It
The news coming out of the state of Texas this is also the same sort of challenge we saw in
week should remind every Michigan resident of California last summer, when higher temperatures
our own recent experience with the failure of and nearby wildfires caused increased demands
renewable energy to provide sufficient energy to on air conditioning. Solar generation failed
meet the state’s needs. and CAISO, the state’s energy regulator, was
forced to impose rolling blackouts as demand
As you recall, the January 2019 “Polar Vortex” outstripped supplies when the sun began to set.
event led Gov. Whitmer and utilities across the
state to ask Michigan residents to reduce their The stories coming out of Texas, Oklahoma,
34 MICHIGAN PROPANE GAS ASSOCIATIONYou can also read
