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Call to order
The meeting was called to order at 1:15 P.M. by Chairman William P. Curcio.

Board members present: William P. Curcio (Chairman), William E. Rieger, Jr. (Vice Chairman), Joseph M. Cummings, Thomas A. Leahy, Gerard C. Stocker, Dianne McCarthy, Gene Dougherty, Larry A. Horowitz

Board members absent: William Neill, Paul T. Dansbach

Board member resigned: Kathleen L. John-Alder

DCA staff present: Assistant Director Cynthia A. Wilk, Bureau Chief Richard Osworth, Amy Fenwick Frank, Michael L. Ticktin, Kristy Paolillo, Michael Baier, Keith Costill, Paul Kersavage

Member of the public present: Michael Merrill (Chairman, Legislative/Public Affairs Committee, NJPGA)

Agenda:
The agenda was approved without objection.

Approval of minutes:
Minutes of the December 16, 2002 meeting were read. Mr. Curcio offered the clarification that the discussions with Mr. Edwards of DEP concerned only facilities that are under DEP jurisdiction. With that clarification, the minutes were accepted. Mr. Stocker noted that requirements for post thickness are found in NJAC 5:18, not in NFPA-58.

Committee Reports:
The report of the Propane Superstar Program committee was deferred for discussion under Old Business.

Old Business:

Toxic Catastrophe Prevention Act: Mr. Curcio said that DCA and DEP needed to meet in the future to discuss areas of mutual concern and a possible memorandum of understanding. Mr. Osworth replied that, at the end of the adoption process for the DEP rules, the two agencies would meet to coordinate inspection functions.

Propane Emergency Response Program: The Board discussed holding a session in North Jersey similar to the one held in South Jersey in December. Mr. Rieger said that the program is geared towards firefighters. Ms. Paolillo stated that the NPGA has only limited funding available for the program per year and that none is currently available for New Jersey. Mr. Curcio said that we should find out the cost of the program and try to find LPG program funds that we can use for this purpose. Ms. Frank said that we would follow up on other suggestions from the NPGA. Mr. Curcio said that he would ask NJPGA to pay for the luncheon if a course could be given in North Jersey.

Quality Control and Licensing Rules: Ms. Frank advised the Board that a draft of the adoption notice had been prepared. She also pointed out that employee training requirements only apply to LPG marketers. Mr. Curcio said that we should reply to any comments about CTEP being costly by indicating that this is not the case. Mr. Stocker said that the response to a comment about the DEP jurisdiction under TCPA should be that LPG industrial and bulk plants and dispensing stations are not subject to TCPA. Mr. Osworth added that only processes combining LPG with other chemicals are subject to TCPA. Mr. Stocker expressed his approval of the second comment and response in the proposed adoption notice. Mr. Curcio said that DCA will review the legislation to see if there was any validity to the contention of PSE&G that LPG facilities of gas utilities are exempt from DCA regulation. He indicated that the overall goal is to make sure that these facilities are inspected by someone. Mr. Cummings added that the standard of inspection must be valid. Mr. Curcio said that adoption will not be held up pending discussions with BPU. Mr. Dougherty agreed that Mr. Curcio had accurately summarized discussions concerning the gas utility issue. Mr. Leahy introduced a motion, seconded by Mr. Stocker, to approve the recommended adoption as proposed in the January 6th edition of the New Jersey Register with the changes indicated. The motion was approved unanimously.

LPG “Superstar” Program: Ms. McCarthy asked whether we should follow the lead of Texas in promoting innovative use of LPG or if we should, rather, focus on training, safety and public education. She asked how we would get nominations for awards and whether we should involve NPGA. Mr. Curcio replied that we should involve only NJPGA and keep the process as simple as possible. He further stated that we should allow anyone involved with LPG to submit nominations, that there should be four or five categories, that we should modify the Texas application form, that we should expand later if the program goes well the first year, and that Ms. McCarthy should design the program. He suggested such categories as fleet awards, environmental protection and safety. Ms. Frank noted that we must carefully screen applicants for their safety records. Ms. Wilk said that there should be awards for public education and for safe processes. Mr. Curcio said we should keep it simple and limit it to four categories involving education and safety. Mr. Osworth asked who should make the awards. Mr. Curcio said that Ms. McCarthy’s committee should make recommendations and the board as a whole should decide. The committee should include both board members and DCA staff. Ms. Wilk said that we should recognize specific practices. Mr. Curcio said that Mr. Cummings would assist Ms. McCarthy. Mr. Cummings said that the audit system will be an important part of any determination of safety. Mr. Curcio said that we need our own name for the program, instead of using the Texan name. Ms. Wilk spoke of the need to publicize the program.

Draft Bulletin on Frequently Asked Questions: Discussion of the draft bulletin for local officials was postponed until the next meeting.

A-740: Mr. Curcio stated that NJPGA had discussed this legislation (or its Senate counterpart) with Senator Singer, who gave assurance that he was dropping his support for it. Mr. Merrill said that the issue is that some customers wanted the amount of their purchase to be set forth in gallons, but that existing Weights and Measures rules require it to be expressed in cubic feet. Mr. Curcio said that Mr. Merrill would provide DCA with correspondence with Senator Singer on this issue.

Assessment program: Mr. Osworth reported that DCA was still undercollecting at this point. A demand for payment in the amount of $30,000 has been sent to one refinery. DCA is refining the method of documentation in order to determine fees more accurately. There is LPG being reported as coming from other states. DCA is seeking information from marketers as to their suppliers and will use this information to bill importers of LPG into the state. This information is to be gathered and analyzed over the next three weeks. Mr. Osworth also reported that 4,188 LPG installations have been identified to date, while at least 2,000 more are being investigated. Ms. McCarthy asked if LPG inspectors are used for other functions as well. Mr. Osworth responded that two inspectors concentrate on LPG facilities and inspect rides on a part time basis, while others concentrate on rides and inspect LPG facilities part-time. He introduced Paul Kersavage, an engineer with twenty-eight years experience who does LPG plan reviews, inspections and LPG activity coordination. Ms. Wilk added that more staff will be solely dedicated to LPG work as the audit program develops. Mr. Osworth said that DCA must collect more information before further staffing needs can be determined. Mr. Curcio stated that it was always the intent that there be staff specifically assigned to this program.

New Business:

Using Propane Safely Booklet: Ms. Frank stated that there is a NPGA booklet for consumers. Ms. Wilk asked if it a committee was needed to prepare a version of the booklet that would be specific to New Jersey. Mr. Curcio responded by appointing a Public Education committee consisting of Mr. Horowitz, Mr. Cummings, Ms. McCarthy and Mr. Merrill.

Carbon monoxide detectors: Mr. Curcio explained that the concern of the industry is false alarms. Ms. Wilk recounted the history of the legislation and rulemaking on this subject. DCA has gone forward and adopted a rule requiring installation of CO detectors in one- and two-family homes. Meanwhile, there is legislation to the same end that is in the process of becoming law. Ms. Frank announced that the DCA rule would be effective when it is published in the New Jersey Register on April 7th. Ms. McCarthy asked how this involves LPG. Mr. Curcio replied that carbon monoxide is the product of improper combustion. Ms. Frank said that people whose CO detectors go off will call their fire department or their fuel supplier, who may be an LPG dealer. Mr. Rieger noted that there is no method available for testing if CO detectors work; one can only check if the power source is working. Ms. Frank offered to provide copies of the CO detector bulletin issued by DCA. Mr. Rieger said that information concerning carbon monoxide should be included in the public education material.

International Codes and LPG rules: Mr. Curcio said that he found no problems with the International Codes that are being adopted by DCA and the LPG rules. Ms. Frank said that the interface of the I-Codes and the LPG rules is discussed in the bulletin currently under consideration by the Board.

Gas checks for new homes prior to issuance of a C.O.: Mr. Curcio said that discussion of gas checks would be tabled. Mr. Cummings said that it is an excellent program. Mr. Stocker added that it should be included in the LPG safety bulletin.

Information:

Ms. Frank reported that a public hearing had been held earlier in the day on the proposed rules on training for fill-plant operators, as required by statute, and that no one had appeared. Ms. Wilk stated that the sticker for the Dispensing Propane Safety booklet, which is intended to alert users to specific New Jersey requirements, will be made available on the Division of Codes and Standards website. Mr. Curcio said that the sticker may also be available through NJPGA.

A copy of the NFIRS form used by the Division of Fire Safety was distributed.

Board comments:

There were no additional Board comments.

Adjournment
The meeting adjourned at 2:30 P.M.

 

Michael L. Ticktin
Board Secretary

 

Call to order
The meeting was called to order at 1:04 P.M. by Chairman William P. Curcio.

Board members present: William P. Curcio (Chairman), Joseph M. Cummings, Thomas A. Leahy, Gerard C. Stocker, Dianne McCarthy, Gene Dougherty, William Neill

Board members absent: William E. Rieger, Jr. (Vice Chairman), Paul T. Dansbach, Larry A. Horowitz (excused)

Board member resigned: Kathleen L. John-Alder

DCA staff present: Director William M. Connolly, Deputy Director Cynthia A. Wilk, Bureau Chief Richard Osworth, Amy Fenwick Frank, Michael L. Ticktin, Kristy Paolillo, Michael Baier, Michael Triplett, Paul Kersavage, George Miller

Members of the public present: Michael Merrill (Chairman, Legislative/Public Affairs Committee, NJPGA), Thomas Bock (Raven Propane/Blue Rhino)

Approval of Agenda:
The agenda was approved with one addition. Mr. Neill added “Update of Membership Information” to “Old Business.”

Public Comments: Mr. Bock, representing Raven Propane and Blue Rhino, criticized the Department for adopting rules that he characterized as more stringent than NFPA-58 and therefore harmful to the industry. He specifically cited F.3605.6 of the Fire Prevention Code, which he said requires outdoor storage of LPG to be at least 20 feet from a means of egress. NFPA-58, in contrast, requires a distance of five feet where there are two means of egress and a distance of ten feet when there is only one. Also, the rule would allow not more than 720 lbs., whereas NFPA-58 would allow up to 2,500 lbs. He claimed that there have been no instances in which propane canister storage has caused a fire. In response, Mr. Curcio suggested that Mr. Bock provide the Board and DCA with a written statement that could be reviewed by the Fire Safety Commission and the Department. Mr. Connolly asked Mr. Bock for information about payment of the odorization/importation fee by Blue Rhino. Mr. Bock was not aware of any payments made. He said that the home office is in Winston-Salem, North Carolina.

Approval of Minutes:
Minutes of the March 18, 2002 meeting were read. Motion to accept the minutes (McCarthy/Cummings) was approved without objection.

Chairman’s Comments:

Mr. Curcio announced that Mr. Neill had received the National Association of Corrosion Engineers (NACE) International Fellow Award for his leadership in the field of corrosion engineering and extended to him the congratulations of his fellow Board members.

Committee Reports:

Propane Awards Program: Ms. McCarthy presented a proposed entry form, together with explanatory material. There would be four categories of awards: consumer/public education; environmental issues; employee training/safety programs; and special awards. She recommended that the program be coordinated with any event or special LPG safety awareness week that may exist at the national level. Mr. Curcio said that this effort could be coordinated with NJPGA, so that awards are announced at its meetings. The annual NJPGA meeting is in June, but awards will be given out at a meeting during the fall this year. Bureau Chief Osworth and Ms. Paolillo will staff the awards program for DCA. In response to a question from Ms. McCarthy as to how the program will be advertised, Mr. Osworth said that notice of the awards program will be sent to all LPG licensees. There will be a period of two to three months for submission of nominations. The criteria will be made clear to all persons submitting nominations. Companies may nominate themselves. The Department plans to have a website for the LPG program created by mid-June. Any comments that Board members may have on the awards program should be submitted by mid-June. Mr. Connolly asked if there would be any objection to the Department’s acting to implement the program prior to the October meeting of the Board. Mr. Curcio said it would be all right to do so.

Using Propane Safely Booklet: Mr. Horowitz is chairing the committee working on the preparation of this booklet. The NPGA booklet was distributed in the meeting packets.

Old Business:

Toxic Catastrophe Prevention Act: Ms. Wilk said that the Department would set up a meeting with DEP to discuss entering into a Memorandum or Understanding, which would establish an agreement for inspections of LPG facilities under TCPA jurisdiction. Mr. Connolly said that our objective is to eliminate duplication of oversight.

Propane Emergency Response Program: Mr. Merrill announced that a program on propane emergency response would be held at the Sussex County Fire Training School on June 6th and that the presenters would be the authors of the propane emergency response program manual. The cost, which is being paid by national PERC, will be $7,000. There will be openings for 100 participants. Thus far, there are 20 participants from the LPG industry and 27 from the fire service. The organizers are seeking greater fire service participation. Ms. Wilk said that an e-mail has gone out from the Division of Fire Safety to the fire service to advise them of this program. Mr. Curcio thanked Mr. Merrill and his company, Suburban Propane, for their efforts in support of this program.

Draft Bulletin on Frequently Asked Questions: Mr. Curcio said that Mr. Stocker had said that the information prepared by Mr. Baier was very good. In response to a request by Ms. Wilk for comments, Mr. Stocker said that some areas were not addressed in the tables. Mr. Curcio said that Mr. Stocker should meet with Messers Baier and Osworth to resolve any outstanding issues. Mr. Connolly said that DCA wants to get the bulletin out as soon as possible. Mr. Neill asked who is responsible for inspection of pressure vessels within LPG facilities. Mr. Curcio said that this was an interesting question and there appeared to be an overlap of jurisdiction. Mr. Stocker said that the Boiler and Pressure Vessel program (formerly in DCA, but now in the Department of Labor) has jurisdiction over all pressure vessels. Mr. Osworth said that the Bureau of Code Services performs operational inspections and checks tank labels, but that BPV is supposed to make sure that the manufacture of the pressure vessels and any changes to the system or welding of the tank or system are compliant.

Propane Assessment Program: Mr. Osworth reported that one major supplier is now cooperating in the assessment program. The Bureau is now focusing on importers. An additional letter is being sent demanding payment. The Bureau is currently discussing the issue with eight importers. It is also checking up on payments that may have been made in error to the Department of Labor. A total of $94,750 was collected in FY 2002. Letters are being sent to marketers. Refineries are now aware of the process. Marketers who import LPG owe fees, and the main thrust of the assessment program is now directed towards collecting from them. Mr. Curcio asked how the Bureau deals with Pennsylvania marketers selling in New Jersey. Mr. Osworth said that the Bureau will check telephone directories to see who is advertising to sell in New Jersey. Mr. Curcio said that he has been in contact with Pennsylvania marketers to let them know about New Jersey requirements.

Training for Fill-Plant Operators: Mr. Osworth said that marketers are responsible for maintaining records on training of employees. Ms. Wilk said that the Department wanted to discuss this with the Board to make sure that everyone agreed to this understanding. Mr. Curcio said that marketers are the ones who are licensed, and that any seller would be included as a “marketer,” even a gas station. Mr. Stocker disagreed, saying that only bulk plant operators are marketers. Mr. Leahy agreed with Mr. Stocker. Mr. Osworth said that a retail dispenser is not necessarily a marketer, and that no pressure can be brought against an operator who is not a marketer. Mr. Connolly pointed out that, because this is a liquid transfer, it is subject to annual inspection and training could be checked at that point. Ms. Frank asked if the language in the rule proposal on training was satisfactory. Mr. Curcio said that it was. Mr. Connolly said that a statement should be included in the rule adoption describing how the rule will work. Mr. Stocker expressed concern about the numbering of the rule. Ms. Frank explained that the numbering was necessary because of the sequencing of the proposals and that the appropriate changes would be made by the Office of Administrative Law, with section 10.4 in the January proposal becoming 10.5, thus leaving room for the new 10.4 in the March proposal. Mr. Osworth said that the rules would be combined and posted on the website. Mr. Connolly added that a clean copy would be provided to all Board members.

Gas Checks for New Homes Prior to C.O.: This issue is still on the table. No action has been taken.

Non-odorized Propane: Mr. Curcio said that there should be an inspection fee, in lieu of an assessment for non-odorized propane over 10,000 gallons. Mr. Connolly said this would be the case. Mr. Stocker said that only propane used in propellants would not be odorized, and this use would be subject to regulation by DEP. Mr. Curcio asked if Ronson was subject to DEP jurisdiction under TCPA. Mr. Stocker said that it was. Mr. Merrill said that it was exempt from DEP jurisdiction if it was only used for fuel purposes at the customer’s location.

Jurisdiction: Mr. Stocker asked if peak-shaving facilities were within DCA jurisdiction. Mr. Connolly, referring to a memorandum on the subject by Mr. Ticktin that was included in the packet, replied that they were and that the BPU does not currently inspect these facilities. If they start, the BPU would need to submit any plans to the Department prior to inspection.

Notice of Propane Installation: Mr. Curcio asked if the Notice of Propane Installation was being required for all installations other than for properties in Use Groups R-3 and R-4. Mr. Connolly said that it is so required.

Update of Membership Information: Mr. Curcio stated that reappointment of Board members was up to the Governor’s office. Mr. Connolly stated that, as provided by statute, members serve until their successors are appointed. Mr. Neill asked that the membership list include DCA staff members involved with the LPG program and specify their responsibilities.

Emergency Contact Information – Size of Lettering on Tanks: Mr. Curcio asked if there should be any rule as to the size of the lettering used for emergency numbers at LPG facilities. Mr. Osworth said that the intent is that it be visible at a distance. Mr. Triplett said that he had seen a tank at a Suburban Propane facility on which the emergency number was not legible three feet away. Mr. Connolly said that it should be visible at the fence, or from where you have to stand. Mr. Curcio said that people who call in an emergency generally refer to the company name. Mr. Triplett said that it needs to be visible. Mr. Curcio said that no size is now specified.

New Business:

Rule Proposal on Waivers and Modifications: Mr. Connolly presented a draft proposal to give the Bureau authority to waive or modify rule requirements. Mr. Dougherty said that any such rule should take into account technological advances as a basis for granting waivers. Mr. Connolly said that this was a good comment. A motion to approve the proposal as modified (Dougherty/ Neill) was approved unanimously.

One-Call System: Mr. Curcio spoke of the need for exemption of LPG from the “One-Call” system and the need to have LPG installations subject only to DCA’s jurisdiction, and not to the BPU. Legislation introduced by Senator Littell would provide exemption for LPG. Mr. Curcio suggested that it be amended to provide for DCA jurisdiction. Mr. Leahy asked Mr. Merrill to explain why there is a problem with the current system. Mr. Merrill related how the One-Call system was developed by the public utilities. Following the 1994 natural gas pipeline explosion in Edison, BPU was given jurisdiction over it. BPU hired a company to run the system and notify operators. Two and a half years ago, BPU included propane companies in the program. Under One-Call, the State is divided upon into grids of one-eighth of a mile square. The BPU is not able to pinpoint locations at which propane tanks are located. Companies may service multiple locations within each square and receive notice for each of them. Mr. Connolly said that 98% of these notices are false, but all must be checked. Mr. Leahy said that most gas utility lines are in a right-of-way, but LPG lines are in back yards. Mr. Connolly said that, though the statute requires that notice be provided by block and lot, the practice is to provide it by reference to squares on the grid. Mr. Curcio said that the industry is obligated to notify BPU of all transfers of properties from one LPG provider to another, but that the BPU takes up to 20 days to enter the information. He also pointed out the safety objective of the One-Call system is met by the LPG industry through installation of excess flow valves on tanks. Mr. Connolly said that this all shows how pointless it is to include LPG in the One-Call system and that the legislation is therefore warranted. Mr. Curcio said that there had been only one LPG accident during the same period of time in which there had been 2600 natural gas accidents. Mr. Merrill said that the system is very cumbersome and costly. The utilities pass the costs on to their customers, but LPG companies lose money. He asked that DCA have a marking program for LPG installations. Mr. Curcio said that Mr. Merrill was the industry’s resource person for One-Call issues.

 

Information

Quality Control and Licensing Rules – Program Implementation/ Registration and Inspection: Mr. Osworth shared with the Board three draft registration forms to begin implementing the new regulations. A formal mailing, which will include application and registration forms, will be sent between June 15th and July 1st. There are approximately 250 fill stations and 480 facilities with tanks of greater than 2,000 gallons. Between July 1st and March 1st, the documents should be reviewed and inspections completed for the facilities, and registration/operation certificates will be issued. The Department’s goal is to have all marketers registered by January 1st and inspected by March. Between July 1st and March, approximately 540 inspections should be completed. A briefing will be held in early July after the mailing is completed. Registration forms will be posted on the LPG website. Mr. Curcio requested that the Department inform the Board when the website is running.

Assembly Bill No. 740: A copy of the bill was included in the Board members’ packets. Mr. Ticktin reported that there has been no movement.

Able Energy: Mr. Connolly stated that penalties in the amount of $414,000 had been assessed based upon violations over a 20-month period. An additional penalty of $6,500 was assessed for a subsequent violation. These penalties are now under appeal.

Travel Reimbursement: Ms. Wilk advised that W-9 forms must be completed, and that travel forms and receipts must be submitted by June 30th in order to allow for payment.

Adjournment
The meeting adjourned at 3:37 P.M.

 

Michael L. Ticktin
Board Secretary

 

MINUTES OF THE FOURTEENTH MEETING OF THE LIQUEFIED PETROLEUM GAS EDUCATION AND SAFETY BOARD
WILLIAM ASHBY DEPARTMENT OF COMMUNITY AFFAIRS BUILDING
OCTOBER 21, 2003

Call to order
The meeting was called to order at 1:05 P.M. by Chairman William P. Curcio, who led Board members and others present in the Pledge of Allegiance. Director Connolly presented Michael Baier to the Board as the new head of the LPG Program within the Bureau of Code Services. Mr. Baier was welcomed with general applause.

Board members present: William P. Curcio (Chairman), William E. Rieger, Jr. (Vice Chairman), Joseph M. Cummings, Thomas A. Leahy, Gerard C. Stocker, Dianne McCarthy, Gene Dougherty, William Neill, Larry A. Horowitz

Board members absent: Paul T. Dansbach

Board member resigned: Kathleen L. John-Alder

DCA staff present: Director William M. Connolly, Bureau Chief Richard Osworth , Amy Fenwick Frank, Michael L. Ticktin, Kristy Paolillo, Michael Baier, Paul Kersavage

Members of the public present: none

Agenda
The agenda was approved without objection.

Approval of minutes
Minutes of the May 20, 2003 meeting were read. Motion to accept the minutes (Cummings/Leahy) was approved without objection.

Committee Reports:

Awards Program: Ms. McCarthy presented the committee’s recommendation that this year’s awards be given to Brian N. Clayton for his dedication and leadership in the promotion of the use of propane as an alternative fuel for environmental protection, to Larry Horowitz for his dedication and leadership in the promotion of safety and education for consumers and the general public, and to Melvin W. Schroeder for his dedication and leadership in promoting and enhancing safety in the propane industry. Ms. McCarthy noted that all of these awards would be given to individuals this time, but that, in the future, companies would be nominated as well. Mr. Osworth noted that the committee kept within the categories previously discussed. The awards are to be presented at the end of the December 16 meeting of the Board. The next award nomination package will go out in January, so that awards can be made in April or May. On motion of Mr. Leahy, seconded by Mr. Stocker, the Board unanimously approved the recommendations of the committee. Mr. Curcio said that there would be a yearly awards cycle. Mr. Connolly said that press releases would be issued to local newspapers in the areas where the awardees live and work.

Using Propane Safely Booklet: Mr. Horowitz presented educational materials from various sources that will be used. The educational materials will be distributed through local construction code offices and by propane retailers. Mr. Neill recommended checking for revised versions of publications. Mr. Curcio said that this report was an update, not a final committee recommendation. Mr. Horowitz said that the pamphlet on storm damage was good to use and the committee was in the process of deciding which other pamphlets to use. He said that the committee was also looking for Spanish-language texts. Ms. Paolillo said that she had contacted the National Propane Gas Association and it would be okay to put to the NPGA website links on the Division website.

Old Business:

Draft Bulletin on Frequently Asked Questions: Mr. Baier said that information about “temporary installations” has been added. He stated that there is still a need to reconcile differences between the Uniform Construction Code rules and N.J.A.C. 5:18 as to when the Notice of LP-Gas Installation is to be submitted. Mr. Curcio asked how the problem should be resolved. Mr. Connolly said that the owner should be required to give the code official a copy of the certificate of installation. Mr. Curcio asked if there would be any problem in having a three-part form for the notice of installation. Mr. Connolly said that that would not be a problem. Mr. Osworth said that the local code officials need proof that DCA has been notified and that the form could be submitted upon application for a certificate of approval, one copy of which would go to DCA and one copy of which would go to the local code official. Mr. Neill pointed out a typographical error in the word “temporary.” It was also pointed out that, in the forth section of the chart provided, “Permanent” should be changed to “Temporary.” Mr. Stocker said that he wanted to add the word “aggregate” before “water capacity” on the last page of the bulletin and requested that the form refer to capacity of “2001 gallons or above.” Mr. Curcio asked if all forms should be submitted prior to the issuance of the certificate of approval. There was general agreement that this should be the case and that all comments would be sent to Mr. Baier no later than October 31, so that he and Mr. Stocker will be able to review them. Ms. Frank said that the bulletin will be reviewed by the Uniform Construction Code Advisory Board in December. Mr. Stocker inquired as to the status of the LPG bulletin for fire officials. Mr. Baier said that his office was working on it with George Miller of the Division of Fire Safety. Mr. Leahy said that the bulletin should include a reminder about locator tape in trenches. Mr. Stocker said that it does contain such language.

Assessment program: Mr. Baier reported that approximately $17,000 had been collected since the last Board meeting from companies that had not previously made payments. There are still 12 to 15 companies, mainly out-of-state, that may owe fees. Blue Rhino still has not made payment. Neither have some railcar importers. Receipts have been around $25,000 for most quarters so far, though they were only $11,000 for the most recent prior quarter. Mr. Curcio said that the Bureau should look at the American Petroleum Institute report.

Gas checks for New Homes: Mr. Curcio said that this is taken care of by insurance companies. There was general agreement to delete this issue from the agenda.

One-Call System--Board of Public Utilities: Mr. Curcio expressed appreciation, on behalf of the industry, of Mr. Baier’s testimony before the BPU. Mr. Connolly said that he had been surprised by the way the BPU treats petitioners and that they had treated Mr. Baier most unreasonably, subjecting him to vigorous cross-examination by their DAGs. Furthermore, the BPU had not given DCA any notice of the hearing. Mr. Connolly also said that Mr. Baier had explained the One-Call system better than the president of One-Call did and that he expects that the BPU will involve DCA in the development of a better system. Mr. Curcio said that, based on the testimony given at the hearings, the industry wants all jurisdiction over it given to DCA.

Propane Emergency Response Program: Mr. Curcio reported that the June 6 program was successful, that the program was good and a way should be found to continue it. The industry can provide trainers and it should be a two-day program taught by industry-firefighter teams. He asked Messers Horowitz and Rieger to coordinate continuation of the program.

Size of Lettering on Containers: Mr. Baier provided a handout indicating that one-inch lettering is visible at a distance between 50 and 60 feet. Mr. Curcio said that one-inch was a reasonable size. Mr. Connolly said that it must be in the code to be enforceable and that it should be either one-inch or an amount proportionate to the distance from which it would have to be read. Mr. Neill said it should be “a minimum of one inch.” Mr. Curcio said it should say at least one inch, to which there was general agreement.

Board Member Appointments: Mr. Connolly said that there had been no word from the Governor’s office concerning appointments or reappointments to the Board. He pointed out, however, that the current members continue to hold their seats until such time as successors are appointed, so there is no problem with the Board continuing to function.

New Business:

Insurance Requirements for LP Gas Licensees: Mr. Curcio asked if the Board members were in agreement with the draft proposal to require $5,000,000 in general liability insurance coverage and delete the phrase “per occurrence.” Mr. Connolly said that this would make New Jersey’s regulations consistent with the US Department of Transportation requirements. There was unanimous agreement in favor of the proposal.

Publication of LPG Act and Regulations Booklet: Mr. Osworth said that the booklet has been put together. The document will be prepared for publication and posted on the LPG web site.
Mr. Osworth reported that the LP Gas web site is up and contains the required LPG Program forms. Mr. Curcio asked whether approved Board minutes could be posted on the website. Mr. Osworth said that they could. Mr. Curcio if minutes and other Board matters could be linked to the New Jersey Propane Gas Association web site. Mr. Baier agreed to contact Judy Paul to discuss this. Mr. Neill asked whether any recent changes had been made to the LPG statute. Mr. Ticktin said that there had not been.

Collection of Information for Safety Study: Mr. Curcio said that, although the industry is safe, there are still some problems, and these should be assessed. However, no numbers are currently available. He said that DCA and the industry should try to collect this information. He further noted that there was one accident on record with the BPU involving LPG, but that there were over 2,600 accidents in the same time period involving natural gas. Mr. Horowitz said that safety information is presented informally at industry meetings. Mr. Connolly said that the only sure way to collect the information would be to place a reporting requirement on the industry, and he asked whether the Board wanted to do this. Mr. Curcio pointed out that N.J.A.C. 5:18-1.7 requires notification, but Mr. Osworth said that he was not aware of any notices being received. Mr. Curcio said that insurance companies maintain data on the subject and that he would check to see if DCA could obtain that information. Mr. Dougherty said that it is necessary to set a dollar threshold to define what a “serious” incident is, since there will be no reporting if the determination is subjective. Mr. Curcio said that this issue would be kept on the agenda for future discussion. Ms. Frank said that it is not possible to get information about treatment of persons injured in LPG accidents, to which Mr. Osworth added that this issue had arisen in the context of the Carnival-Amusement Ride rules and that DCA had been unable to get this information.

Propane Safety Conference: Mr. Curcio said that, in the 25 years he has been in the business, there has never been any session offered by the regulators to review LPG rules. He would like DCA to hold a session next spring to go over N.J.A.C. 5:18 with the industry, the fire service, and other interested parties. Mr. Osworth said that briefings thus far have focused on new issues. Mr. Connolly endorsed the idea of having a safety conference.

Certified Employee Training Program: Mr. Horowitz and Mr. Baier attended a training session in Delaware regarding changes to CETP. Mr. Curcio advised the Board that CETP has been revised so that it would now involve additional separate tests, with a fee for each. The cost has risen and the modules would take longer to complete. In addition, the training is becoming too specialized. All of these changes pose problems. Currently only four modules would be needed in New Jersey. NJPGA disagrees with these changes, which were proposed by the Propane Education and Research Council. He further stated that he wants to be able to advise PERC that the Board is looking into CETP issues. He then asked Messers Horowitz, Leahy and Baier to serve on a committee, along with a person from Mr. Curcio’s company, for this purpose. Mr. Osworth said that DCA wants to see broad training. Mr. Curcio said that excessive time outside of the office would be required for completion of the program. Mr. Leahy said that repetition is inevitable and that PERC “took something good and is about to destroy it.” Mr. Neill recommended that a letter to NPGA should be signed by Messers Curcio and Connolly. Mr. Connolly agreed that that was a good idea.

Information and Board Comments:

Status of Rulemaking Activity:
Fill Plant Operator Training: The Fill Plant Operator Training Notice of Adoption appeared in the July 7th New Jersey Register.
Requests for Waivers: The rule that would allow strict adherence to the regulations to be waived where a determination is made that equivalent protection of the public is provided was proposed in the August 4th New Jersey Register.
Toxic Catastrophe Prevention Act: The Notice of Adoption for the TCPA rules appeared in the August 4th New Jersey Register.
Mr. Baier reported that seven licensees dealing only with propane had been taken out of the TCPA rules. Mr. Curcio said that the Department of Environmental Protection recognizes the need to put all LPG regulation in DCA.

Inspections of R-1 and R-2 Installations: Mr. Osworth announced that these inspections would be carried out between November and March. Inspectors who inspect amusement rides during warm weather would be available to augment the permanent LPG inspector force.

Application Dates: Mr. Curcio asked what the deadline is for license applications. Mr. Baier said that it is November 1, 2003. He also said that 17 applications had been received and seven licenses had been issued. Mr. Curcio said that those who comply are concerned that others will get away with not complying. Mr. Connolly said that penalties will be issued eventually, but only after other means of getting compliance have been exhausted. Mr. Curcio said that it takes three days to complete the license application forms.

Legal Action: Mr. Connolly informed the Board that DCA filed for an injunction to keep Able Energy out of the propane business. The return date on the motion is November 12. The action is based on serious safety violations.

Adjournment
The meeting adjourned at 3:02 P.M.
Next meeting is scheduled for December 16.

 

Michael L. Ticktin
Board Secretary

MINUTES OF THE FIFTEENTH MEETING OF THE LIQUEFIED PETROLEUM GAS EDUCATION AND SAFETY BOARD
WILLIAM ASHBY DEPARTMENT OF COMMUNITY AFFAIRS BUILDING
DECEMBER 16, 2003

 

Call to order
The meeting was called to order at 1:14 P.M. by Chairman William P. Curcio, who led Board members and others present in the Pledge of Allegiance.

Board members present: William P. Curcio (Chairman), Joseph M. Cummings, Thomas A. Leahy, Gerard C. Stocker, Dianne McCarthy, Gene Dougherty, William Neill, Larry A. Horowitz

Board members absent: Paul T. Dansbach, William E. Rieger, Jr. (Vice Chairman)

Board member resigned: Kathleen L. John-Alder

Department staff present: Assistant Commissioner Charles A. Richman, Director William M. Connolly, Deputy Director Cynthia A. Wilk, Bureau Chief Richard Osworth, Michael L. Ticktin, Kristy Paolillo, Michael Baier, Paul Kersavage, Michael Triplett

Members of the public present: Michael Taylor (Combined Energy Services, Monticello, NY), David E. Harris, M.P. (Harris Plumbing-Heating-Air, Salem, NJ), Award Winners Brian N. Clayton and Melvin W. Schroeder and their guests

Agenda
The agenda was approved without objection

Public Comments: Michael Taylor of Combined Energy Services, a Monticello, NY LPG dealer doing business in northern New Jersey, New York and Pennsylvania, expressed his opposition to the $5,000,000 liability insurance requirement, saying that it is four or five times the amount required by other states. He claimed that the requirement is anti-competitive and will result in there being only five or six dealers in the State. There are now 17 in New Jersey and 160 in New York. He does not believe that the insurance requirements will result in greater safety.
David Harris, M.P. of Harris Plumbing-Heating-Air, a Salem, NJ LPG dealer, also expressed his opposition to the $5,000,000 insurance requirement. He claimed that his company made $18,000 in profits last year, and he had no idea how he could afford to pay for the insurance requirement.
Mr. Curcio replied by saying the matter would be discussed later in the meeting.

Approval of minutes
Minutes of the October 21, 2003 meeting were read. Motion to accept the minutes (Cummings/) was approved without objection, after minutes were corrected to add the word “asked” on page four, so that the fourth sentence in the second paragraph under the heading Publication of LPG Act and Regulations Booklet would read “Mr. Curcio asked if minutes and other Board matters could be linked to the New Jersey Propane Gas Association web site.”

Committee Reports:

Awards Program: Ms. McCarthy reported that there had been no new developments and that the committee was proceeding in accordance with decisions made at the last meeting. The New Jersey Propane Awards will be held after the meeting.

Using Propane Safely Booklet: Mr. Horowitz stated that the NPGA has a good pamphlet and that he will ask if we can use it with the name of the State on it. Mr. Connolly said that the Department was trying to contract with a public relations firm to undertake a public education program in conjunction with the committee.

Old Business:

Draft Bulletin on Frequently Asked Questions: Mr. Connolly said that the draft bulletin has been submitted to the Uniform Construction Code Advisory Board for its review. After it has been reviewed by the C.A.B., it will be published as a U.C.C. Bulletin and sent to code officials. Mr. Stocker said that Mr. Baier had reviewed the document with him and that it was acceptable.

Uniform Fire Code Bulletin: Mr. Baier reported that a companion bulletin was being prepared for fire officials. The Fire Code Council is to meet on January 15 and will review it at that time. Mr. Baier asked if the LPG Board and the Fire Code Council should review it concurrently. Mr. Stocker said that the LPG Board should supply comments to Mr. Baier prior to January 15. Mr. Curcio agreed and asked that all board members e-mail their comments to Mr. Baier before January 15. Mr. Neill asked if the comments should go to Mr. Curcio too. Mr. Curcio replied that they should just go to Mr. Baier and that he would prepare a memorandum for the board summarizing the comments.

Assessment program: Mr. Baier said that API data would be too expensive to obtain, but that USDOE has information from prime suppliers. State records are within a few thousand dollars of DOE figures. The difference may be due to railcar deliveries. Mr. Curcio said that we might be able to get numbers from PERC, but Mr. Baier said that we had not been successful in doing this in the past. Mr. Curcio promised that “we’ll work on it,” adding that “those who are paying want to be sure that everyone else is paying.” Mr. Neill asked if the zero figure for October and November was the result of a time lag. Mr. Baier said that it was. Mr. Stocker said that the Bureau had done a good job.

One-Call System--Board of Public Utilities: Mr. Connolly reported that not much has happened since the last meeting. The Department received a copy of a brief from the Division of Security and Reliability that contained factual errors and is replying by filing a corrective brief. BPU will probably not rule on the matter for a couple of months. Mr. Curcio stated that Mr. Baier had testified as to how unworkable the plan is for the LPG industry. It will cost the industry $1.5 million a year to implement if it is not changed. The industry wants this program moved to DCA for LPG.

Revisions to CETP: Mr. Horowitz reported that the committee had met, with Mike Merrill in attendance. There will now be only two tests:(1) Basic Practices and Principles and (2) Propane Delivery. There were previously five tests. The old tests will be available through 2004.

NJPGA-DCA Website Links: Mr. Baier reported that this was being taken care of in cooperation with Judy Paul of NJPGA. Mr. Neill requested the address of the website. Mr. Curcio replied that it was www.njpga.org and that it includes a link to the LPG Board. Forms and approved minutes will be on the site. Mr. Curcio asked that tank registration forms for R-1 and R-2 systems be included on the website so that they can be completed and returned electronically. Mr. Stocker said that that would not work for the application for plan review, since those forms must be sealed by a P.E. Mr. Baier said that DCA does have all pre-registration forms and other documents for the LPG program on the Bureau of Code Services website, www.state.nj.us/dca/codes.

Safety Study Information: Mr. Curcio said that there is a need to know what we are trying to address, and that there are no adequate records. Mr. Connolly said that there is an NFIR form in each board member’s packet and that a committee is needed to see how it can be used for the LPG program. There is a 45%-50% reporting rate. Ms. Wilk said that reporting is not mandatory now. Mr. Connolly said that we have a good sample on a statewide level. Ms. Wilk said that “other” must be used on the hazmat form for anything over 21 pounds. Mr. Cummings will chair a committee on collection of information.

Publication of Booklet for Act and Rules: Mr. Baier said that the booklet was being formatted and approved for publication. Mr. Curcio said that there were 96 – 125 members of NJPGA and that 150 booklets should be sent to Judy Paul. Mr. Stocker noted that the statute still contained references to the Department of Labor. Mr. Connolly said that we will print DCA instead, based on the reorganization plan that transferred the program here.

New Business:

Seminar on LPG Gas Rules: Mr. Curcio said that an educational program should be conducted in the spring. Mr. Baier is to arrange this. Mr. Curcio also said that there is a need for uniformity in the interpretation of NFPA-58. We should have a 1-2 day seminar conducted by Ted Lemhoff of the NFPA-58 committee. Mr. Stocker said that the seminars on NFPA-58 and 5:18 should be separate. The DCA representative must make Mr. Lemhoff aware of the differences between the two and must tell him that we still use the 1998 edition of NFPA-58.
API Standards: Mr. Neill stated that the API staff is currently updating standards API 25.10 and API 25.10A and is combining them into one standard and that API and NFPA are working to avoid conflict between their standards. Mr. Curcio appointed Mr. Neill to monitor the progress of API and keep the board advised. Mr. Stocker asked which API edition is to be used. Mr. Connolly said that we will go right from 1998 to 2004, if the 2004 edition is found to be satisfactory.

Inspections: Mr. Curcio said that inconsistencies among DCA inspectors must be resolved and that some are citing the wrong sections of NFPA-58. Mr. Baier said that an inspector’s checklist is now in use and that, because inspectors must have flexibility to deal with differing degrees of seriousness in each situation, different amounts of time must be allowed. He said that people in the industry can call the office if an inspector appears to be unreasonable. Mr. Curcio said that if there is an immediate problem, the inspector should call the supplier immediately. Mr. Baier said that that was the Department’s intention. Mr. Stocker said that the Department has to address retroactivity, as in a case where the Department of Labor approved storage next to power lines. Mr. Baier said that once something is approved, it can stay as it is unless it poses a significant public safety or health threat and that DCA will prepare a list of serious and substantial threats to public safety or health. The problem could exist because of changes at the site. Mr. Curcio said that there should be no problem if a facility was previously approved. Mr. Connolly said that any violation of the rules must be fixed even if it was mistakenly approved, since “an approval is not a pardon.” Mr. Stocker added that this should be the case whenever there is a serious threat to public safety and that files should have a complete history of all approvals, since it is necessary to look at the whole picture. Mr. Baier said that there is case-by-case review. Mr. Curcio said that it is necessary to have guidelines. Mr. Triplett referred to a case where a site had changed from two years earlier by reason of the addition of two new buildings. Mr. Curcio said that all inspectors must “be on the same page” and that unsafe conditions should be corrected. Mr. Leahy expressed concern about “immediate” abatement orders, saying that they make suppliers look bad to customers and should be used sparingly. Mr. Connolly said that “immediate” means, or should mean, that there is an imminent hazard and that there should be no extensions of time for true imminent hazards. Orders to abate “immediately” should not be issued otherwise.

Propane Awards Program: Assistant Commissioner Charles A. Richman presented the awards on behalf of the Department to Brian Clayton, Melvin Schroeder and Larry Horowitz. He thanked the members of the LPG Board for their service and applauded them for instituting the awards program.

Information:

Status of rulemaking: Ms. Paolillo said that the Department was finishing the summary statements for the rule proposal concerning lettering, notice of LPG installation and insurance requirements. Mr. Connolly said that this proposal would be sent to the Office of Administrative Law for publication in the New Jersey Register within a few weeks. Mr. Curcio stated that the requirement that lettering on tanks be one inch high was based on review of NFPA and OSHA rules.

Able Energy: Mr. Connolly reported that the court held a hearing on a preliminary injunction and issued an order providing that all operations be conducted under supervision of an independent monitor reporting to the Department, that the monitor control all safety aspects of the company, and that the company not accept any new customers. Mr. Osworth said that there would be a further hearing in February.

2004 meeting dates: The board unanimously approved the following meeting dates for 2004: March 16, May 11, October 19 and December 14. The meeting time will be 1:30 on March 16 and 1:00 on the other dates.

Board Comments:

Mr. Curcio noted that only a plumbing permit would now be required for LPG installation, with information otherwise required for a fire protection permit being included. Mr. Connolly said that the revised forms would be effective early in 2004. Mr. Stocker noted that the waivers rule was adopted in the December 1, 2003 New Jersey Register.

Ms. McCarthy stated that she appreciated the point of Mr. Taylor’s complaint about the impact of the $5,000,000 liability insurance requirement. She felt that it would create a hardship for dealers and for consumers and that the amount required to be invested in insurance was disproportionate. She asked that the board revisit the issue.

Mr. Taylor complained that the rule was particularly burdensome on the “independent marketer.” Mr. Connolly asked what he meant by that term. Mr. Taylor said that he meant a business not owned by stockholders. Mr. Connolly said that the relevant distinction was small business vs. large business, rather than “independent” or not. He further stated that the impetus for this proposal had come from the Department, and not from large marketers. The reason for the change from $1,000,000 to $5,000,000, he said, was that the $1,000,000 requirement was in effect 31 years ago, and that the value of $1,000,000 has been greatly reduced by inflation over that time period.

Mr. Harris said that the amount of insurance required should be proportionate and that a $5,000,000 liability policy makes marketers targets for lawyers. Mr. Curcio said that there are 30 marketers of all sizes in New Jersey, along with eight or nine non-odorized plants, but that only these two, the companies of Mr. Harris and Mr. Taylor, had protested the requirement. Mr. Curcio further stated that the industry has lost a lot of people, but that none had left because of insurance requirements, and that the reason that it is difficult for new companies to enter the propane business is that municipalities have adopted anti-storage ordinances. Such new entrants as there are companies that are already in the oil business. Mr. Taylor said that he does not see any new entrants coming into the propane business, that there is no insurance requirement in neighboring states or in New England, and that the New Jersey requirements are “above and beyond anything in the country.” Mr. Stocker said that it does not matter if New Jersey passes rules and New York and Pennsylvania don’t and that Delaware, California and Texas all have rules similar to those of New Jersey, while Pennsylvania is in the process of “modernizing.”

Mr. Connolly said that a $15,000 premium is not out of line when it costs $4,000 to insure four automobiles and that a $5,000,000 insurance requirement is reasonable, given the level of exposure. Ms. Wilk asked whom Mr. Taylor had contacted to discuss his concerns. Mr. Taylor said that he had contacted officials of the State organization. Mr. Neill asked what the Federal insurance requirement was. Mr. Curcio said that USDOT requires $1,000,000 in liability insurance in order to have the right to get on the road. Mr. Connolly said that, if the value of money was one-fifth what it was 30 years ago, which it is, the amount of insurance required should be five times as great, since the purpose of liability insurance is to protect consumers and the public in case of injury.

Mr. Clayton questioned whether this was properly the State’s role. Mr. Curcio replied that a company’s first obligation is to cover its assets, since the average award in cases of death or serious injury was $8,000,000 plus punitive damages. He further stated that $5,000,000 may therefore not be enough. Mr. Clayton stated that the marketers should take that risk, not have the State tell them what to do. Mr. Harris claimed that he would be put out of business and that NJPGA never told him of the proposal. Mr. Curcio said that all members of the NJPGA were informed of it. Mr. Connolly said that one dollar a month per customer would cover the cost of an umbrella liability policy.

Mr. Leahy responded to comparisons to other states by saying that “this is not the rest of the country; all operating costs are higher in New Jersey.” He characterized New Jersey as “the last state someone would go to start a propane business, unless they are already in oil sales” and cited as the reasons for that the lack of storage facilities and the growth of the market share taken by natural gas. Mr. Curcio elaborated on that point, stating that there had been no growth in the industry in the last five years because “there is no land left.” He expects that there will be further loss of customers once some problems that have beset Elizabethtown Gas are resolved. Mr. Dougherty stated that the utility company for which he works required $10,000,000 in liability insurance for all subcontractors and that no subcontractors had been lost or had gone out of business as a result.

Mr. Curcio asked that copies of Mr. Taylor’s letter be distributed to all board members and that all members get back to Mr. Connolly with any comments that they might have.

Mr. Stocker asked what the CTEP requirements should be for a plant that does not deliver propane. Mr. Curcio said that the propane delivery module should not be required in that case and that the committee should prepare a description of the various types of companies and what training their employees should have.

Mr. Curcio also noted that a company’s first audit is an educational audit.

Adjournment
The meeting adjourned at 3:42 P.M.
Next meeting is scheduled for March 16.

Michael L. Ticktin
Board Secretary

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