February 16, 2024

New FinCEN Rules Required for Small Businesses

The Corporate Transparency Act (CTA), signed into law on January 1, 2021 and went into effect January 1, 2024. The CTA’s goal expanded anti-money laundering laws and established new reporting requirements for certain companies doing business in the U.S. 

Beginning in 2024, many small businesses are required to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) in an effort to create a national database for use by national security and law enforcement agencies to prevent the use of shell companies for criminal activity.

Failure to file this information could be costly. Not filing ownership information with FinCEN can carry civil and criminal penalties, including for companies’ senior executives. Willful failure to comply can lead to fines of up to $591 per day for each violation. The pressure to comply is particularly urgent for new companies. Entities created in 2024 have just 90 days to file after initial registration. Companies created before 2024 have one year to file the report with FinCEN 

The reporting requirements exempt businesses with more than 20 employees and many heavily regulated public entities, which means the focus of the CTA is on small and private companies. Yet, many small businesses are unaware of these new requirements. The PPGA wants to make you aware of these requirements. Below is a summary of the key provisions related to beneficial ownership reporting under the Corporate Transparency Act. 

Who Must File? 

The CTA applies to certain domestic and foreign entities, including corporations, limited liability companies (LLCs), and similar entities created or registered under state law in the U.S. Entities that meet one of the 23 exemptions do not have to report. Included in the exemptions list are publicly traded companies, banks and credit unions, securities brokers/dealers, public accounting firms, tax-exempt entities, and certain inactive entities, among others. Please note these are not blanket exemptions, and many of these entities are already heavily regulated by the government and thus already disclose their BOI to a government authority. In addition, a large operating company that 1) employs more than 20 full-time employees, 2) has more than $5 million in gross revenue in the prior year, and 3) has an office in the U.S. is exempt from reporting. 

Reporting Obligations 

Covered entities must submit beneficial ownership information to the FinCEN, a part of the U.S. Department of the Treasury. Beneficial owners are individuals who meet certain ownership or control criteria, which include individuals who directly or indirectly: 

• Own 25 percent or more of the entity's equity interests, or 
• Exert substantial control over the entity through other means (i.e., serve as a senior officer, have substantial influence over important decisions, etc.) 

The PPGA encourages you to consult with your accountant and/or legal advisor about these new requirements.

PPGA Summer Conference: Sponsor Opportunities

Pacific Propane Gas Association is returning to Alaska for our PPGA Summer Conference to be held August 7-9 at Hotel Captain Cook in Anchorage, AK. We are asking for your help to sponsor this special event by committing to one of the opportunities below. Your continued support is appreciated and vital in making this a successful event.

To participate, click here. The deadline to be included in printed items is July 10.

$1.5 Billion Available for Propane Buses and Fueling Infrastructure 

The Federal Transit Authority (FTA) has announced the availability of nearly $1.5 billion to replace, rehabilitate, purchase, or lease buses, related equipment, or facilities with alternatives like propane autogas under the Buses and Bus Facility Program and the Low or No Emission Grant Program. States, local governmental authorities, Indian Tribes, and fixed-route bus operators and services are eligible applicants.  Grant funds can cover 80-90% of project costs, and grant funds are available to awarded projects for four fiscal years.

Last year, propane received nearly $44 million in grant funding through this program to purchase propane buses and install propane fueling infrastructure. The diverse recipients ranged from major cities to rural communities to tribal nations in Colorado, Minnesota, Mississippi, Oklahoma, South Dakota, Texas, and Ohio.

Visit the Propane Buses tab on the member dashboard for more information on how to apply, links to register for an information webinar, and a template letter to send to eligible localities within your state. 

Questions? Contact NPGA Director, Regulatory Affairs & Associate General Counsel Kate Gaziano.

DEQ Moves to Re-establish the Climate Protection Program  

The Oregon Department of Environmental Quality will begin the process to reinstate the Climate Protection Program in the first quarter of 2024 following a December ruling from the Oregon Court of Appeals . 

The rulemaking process typically takes about 12 months, including a public comment period. The PPGA is prepared to engage in this process to fight back against onerous programs that negatively impact our members and customers.  

DOE Releases Cooktop Rule

The DOE has released the final cooktop rule, which NPGA supports.  The compromise allows for gas cooktops to use 1770 kBtu/year, a significant change from the standard proposed in the February 2023 rulemaking of 1204 KBtu/year.  The compromise is only a minor deviation from the baseline standard reviewed by DOE in the proposed rulemaking, which was initially 1775 KBtu/year. This compromise should result in consumers having access to all of the features in their stoves and ranges that they have come to expect and enjoy, and have no meaningful effect on the gas stove market. 

For further information on the compromise, which includes product classes beyond consumer cooktops, please contact NPGA Vice President of Regulatory & Industry Affairs Benjamin Nussdorf.

Ecology Announces Proposed 2024 CFS Participation Fees

Ecology charges a fee to participate in the Clean Fuel Standard program as outlined in WAC 173-455-150. This fee covers the cost of administering the program and is based on the estimated budget for the coming year. All program participants are required to pay a fee for participating in the Clean Fuel Standard program. 

To read a full description of the budget estimate, workload analysis, and additional information about the 2024 fee, please see our guidance document library for a document titled "Clean Fuel Standard Proposed Participation Fee 2024". 

You may submit a comment on the proposed fee until March 1. The 2024 proposed fee is based on 380 registered participants on January 30, 2023. 

Estimated 2024 program budget: $2,036,913 

• All participants (both credit and deficit generators) pay 5% ($101,845) of the program cost. 
• Deficit generators pay 95% ($1,935,067 ) of the program cost.

Ecology will release the final fee for participation in 2024 on March 15. If you have not paid your 2023 invoice, please do so as soon as possible using our online payment system.

Ecology Releases Utility-Specific Carbon Intensity for 2024

Ecology must annually publish the carbon intensity (CI) values for each electric utility in Washington and the statewide average grid electricity based on the mix of resources used to generate electricity using the most recent year’s Fuel Mix Disclosure published by the Washington Department of Commerce.

Ecology has released the utility-specific CI for electric utilities for 2024, and the updated values for 2023 based on updates to the Fuel Mix Disclosure report. These values should be used for Q4 reporting. 

• 2024 and Updated 2023 Carbon Intensity Values  
• 2024 Washington electric utility CI calculator and updated 2023 calculator - coming soon on our Program Documents page  

If you have questions on this topic, please email CFS@ecy.wa.gov with the subject line “2024 utility-specific CI”.

NPGA Forms Young Professional Council

On February 8, 2024, the NPGA Board of Directors formally approved a new business council within NPGA: the Young Professionals Council (YPC).  The primary goals of the YPC are to support the professional development of emerging leaders in the propane industry through education sessions and webinars, to facilitate direct access of young professionals to NPGA leadership, and to create a pipeline of voluntary association leaders.  The YPC is aligned with Women in Propane (WIP) and Young Gassers. The 30-under-30 program will be housed within the YPC.  The YPC is a formal business council, has a dues structure similar to WIP, a 5-person steering committee with a dedicated NPGA staff liaison, and has membership limited to those 40 and under working for an NPGA member company.  The YPC will launch at the 2024 Southeastern Expo in Charlotte. 

For more information, contact NPGA YPC Staff Liaison Austin Wicker.

74th Annual Western Propane Trade Show & Convention

The 74th  Annual Western Propane Trade Show & Convention is heading back to Reno, NV. We invite you to join us May 13-17, 2024, for a new and exciting program!

Stay tuned for more information on how to maximize your company’s exposure during the trade show and events with new sponsorship opportunities including on-site buyouts at the host hotel and off-site events, suite buyouts above the trade show floor, signage inside the host hotel, and much more.

To ensure that you’re on the Western Convention distribution list, please email Summer Leon. We look forward to seeing you in Reno, NV!

A Free, Fast & Easy Way to Hire Quality Propane Candidates

If you’re like most propane companies, you’re searching for employees right now. The propane industry is in desperate need of talented and energetic new workers to fill the job openings created by the retiring generation, and that need is on display most prominently during the busy winter season. Fortunately, the propane industry has its own platform specifically designed to connect this fresh new talent with compatible marketers delivering propane-related products and services. Have you utilized GeneratioNext Propane Pros?

Match with Quality Candidates

Propane marketers can add their location, contact information, and job positions available, then view candidates within range (or willing to move within range) to work with your team. You’ll see the applicant’s email address and/or phone number, and you can reach out to invite them to an interview. Candidates can also reach out to your company proactively to arrange a conversation and apply for your team, which is a passive (read: no time commitment) way to keep an eye out for fresh talent.

Post Job Openings

Employers like you can also post job openings on the platform to attract candidates for specific roles you’re looking to fill. This is a great idea anytime you have an opening, but in particular we have seen companies posting roles of soon-to-be-retired employees so the new hire can be trained with the assistance of the person already performing the job’s duties. Talk about a seamless transition!

Join Us for 2024 Classroom Presentations

We promote the propane industry and our platform at local technical and trade schools across the country and specifically in your state. Interested in joining us for a presentation? Contact us to learn about upcoming presentations in your area and sign up to join us. Marketers who join our presentations typically:

• Experience increased brand exposure to local applicants

• Win favor of future graduates who view the presentation

• Have the opportunity to share their love of the industry with the next generation

• Build relationships with local schools who will refer future graduates to your company

2023 Was Great: Let’s Make 2024 Even Stronger Together

It was a great 2023, and we’re looking forward to an even stronger 2024 as we work together with propane marketers and trade schools to bolster the GeneratioNext Propane Pros platform to provide even more contributed value to the industry as a whole.

Workforce Development