Alternative Fuel Tax Credits Included in Financial Rescue Package   As news reports have indicated, the House failed to pass the original rescue package on Monday, causing an historic drop in the U.S. stock market. With the House recessing for the Jewish holidays on Tuesday and Wednesday, the Senate decided that action on the financial rescue package was necessary as soon as possible. In crafting a somewhat different package than the House, the Senate leaders chose to add some “sweeteners” in order to encourage a majority of votes in the House.   As a result, the Senate has added a series of tax provisions to the rescue package that includes the extension of the alternative fuel tax credits that they passed a few weeks ago and sent to the House. These provisions would extend the alternative fuel tax credit through 2009, the infrastructure tax credit through 2010, and the home energy efficiency tax credit through 2009. The current alternative vehicle tax credit is set to expire in 2010. The reason for the short extension period is due to the offsets required buy fiscally conservative democrats in the House and the costs associated with the extensions.   Should the Senate pass this package, it will then go to the House for consideration, presumably on Friday of this week. It remains to be seen how the House will react to this latest version.  Success: Unvented Heater Language Remains Unchanged in the International Fuel Gas Code The final action hearings on the International Fuel Gas Code were held on September 23, 2008 in Minneapolis. The main issue of concern for the propane industry was the dispensation of proposal FG-47. Proposal FG-47 would have modified coverage in the IFGC to ban installation of unvented heaters in manufactured homes and homes built to meet the air leakage requirements of the International Energy Conservation Code (IECC). NPGA is pleased to report that this provision was defeated.    ALJ Issues Initial Decision on MAPL Lawsuit   On September 3, Administrative Law Judge Silverstein issued a 467-page Initial Decision (ID) in the lawsuit filed by NPGA and five other propane industry participants against unjust and unreasonable rate increases on the MAPL pipeline. Although counsel is continuing to review the decision, the preliminary feedback is very favorable. On some of the issues under challenge, the judge reached a conclusion between the pipeline’s and our position. And on some of the issues, the judge found for the pipeline. But on the most significant issues, from a dollar amount standpoint, Judge Silverstein ruled completely in our favor. Our calculations at this point show that the cumulative refund obligation to the propane shippers from the beginning of this process (April/May 2005) to now approximates $15 million, not counting interest. The refund amount will continue to grow until such time as final rates for the pipeline are determined and placed into effect. Moreover, under the terms of the decision, MAPL may only be able to justify an increase well below the 23% rate increase originally proposed to back in 2005. (The exact amount of any increase will vary by destination due to distance and volume differences).   NPGA is very pleased with this result, but both sides will be given an opportunity to appeal any rulings in the Initial Decision to the full Commission, which will in turn issue a final order. Appeals will be submitted sometime by the end of 2008 with a Commission decision after that.

Privacy Statement   |   Disclaimer   |  Site Map