PROPANE TANK
PRODUCT STEWARDSHIP PROJECT
Analysis and Actions for
Minimizing 20-Pound Propane Tanks in the Waste Stream
Prepared for SEMASS Partnership by
Product Stewardship Institute
July 14, 2003
ACKNOWLEDGEMENTS
This guide was prepared under the direction of Scott Cassel, Director of the Product Stewardship
Institute. Principal authors are Susan Loucks and Scott Cassel, with additional assistance from
Alan Phipps. The Project Manager for SEMASS was Derek Grasso.
We would like to thank all those interviewed for contributing both their time and insight.
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TABLE OF CONTENTS
Acknowledgements
Page
i
Introduction
1
Identifying the Project Area
3
ISSUES AND POTENTIAL SOLUTIONS
6
SECTION I: Education
Problems
Potential actions for SEMASS
Other Potential solutions
6
6
6
11
SECTION II: Regulation
Problems
Potential actions for SEMASS
Other Potential solutions
12
13
13
17
SECTION III: Economics
Problems
Other Potential solutions
18
18
19
SECTION IV: Infrastructure
Problems
Potential actions for SEMASS
Other Potential solutions
21
21
22
24
SECTION V: Background information on stakeholder groups and
propane regulatory structures.
Characteristics/Interests of Selected Stakeholder groups
Propane Life Cycle Flow Chart
25
25
28
APPENDIX A:
Project Summary
APPENDIX B:
Contact/Stakeholder List
APPENDIX C:
Interview Notes
APPENDIX D:
Sample Educational Materials
APPENDIX E:
Explosions or Accidents involving Propane Cylinders
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INTRODUCTION
Used 20-pound propane tanks (typically used for barbecue grills) are a safety
concern because the tanks often contain residual propane gas, which has the potential to
cause fires or explosions. As a result, many municipalities hold special collections to
divert the used tanks from disposal. Additional collection services are provided by
companies that sell new tanks in exchange for old ones, or by companies that refill tanks
with gas. The SEMASS Resource Recovery Facility, an approximately 3,000-ton per day
combustion facility in southeastern Massachusetts owned by SEMASS Partnership, has
also sponsored free tank drop-offs in some areas.
Despite these efforts, large numbers of tanks are discarded in the household waste
stream, which is a serious problem for waste-to-energy facilities like SEMASS that shred
waste prior to combustion. Shredding propane tanks can result in explosions that are
often powerful enough to damage equipment and buildings, and place plant workers at
risk of serious injury. SEMASS staff reported that the Massachusetts facility had 62
explosions from the shredding of propane tanks from January through November, 2002,
and the average cost of repairs after an explosion was in excess of $12,500. Risks of
exploding propane tanks also extend to operators of garbage trucks, transfer stations,
landfills, and other waste-to-energy plants.
SEMASS has removed more than 2,300 20-pound propane tanks from the waste
stream in 2001. That number increased significantly in 2002 due to Massachusetts’
adoption of the National Fire Protection Association (NFPA) codes that require all valves
to have an Overfill Protection Device (OPD). The NFPA code, once adopted by state
law, makes it illegal to fill non-OPD tanks and renders them obsolete. The first state laws
(including in Massachusetts) went into effect on April 1 of 2002, after which many old
tanks were improperly discarded by consumers. For the first seven months of 2002, the
number of tanks removed from the waste stream was 74% higher than the first seven
months of 2001.
The Product Stewardship Institute (PSI) designed this project as Phase I of a fourphase Action Plan to investigate questions regarding management of used propane tanks,
associated risks, existing regulations, potential solutions, and stakeholder interest in a
dialogue (see Appendix A). One primary goal of this overall project is to reduce the risk
from explosion of propane tanks for waste handlers by reducing the number of tanks in
the waste stream. Another significant and complementary goal is to recover a useful
resource by increasing the number of tanks collected – either for refurbishing or for
scrapping (recycling). Phase I – the Outreach and Assessment Phase – consisted of
identifying stakeholders, conducting 44 interviews, identifying issues, recommending
potential solutions, and attempting to reach basic agreements (see Appendix B for a list
of stakeholders).
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The interviews that PSI conducted have served to educate stakeholders. Many
expressed surprise at learning of SEMASS’ difficulties, and expressed an interest in
taking action to alleviate plant explosions. Some of the potential solutions derived from
the interviews are ones that can be implemented immediately by SEMASS in the short
term, while others will require the cooperation of other stakeholders over a longer time
period. The Phase I budget did not include funds for face-to-face meetings, which is the
essence of the Phase II dialogue. Nearly all stakeholders we interviewed expressed an
interest in participating in the dialogue.
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IDENTIFYING THE PROJECT AREA
The SEMASS partnership serves nearly 100 municipalities at its Rochester,
Massachusetts, combustion facility. As SEMASS determines further actions it wants to
take to reduce propane tanks in the waste stream based on this report, it may find it
necessary to work closely with a limited number of communities. Clearly, it is most
important to work with communities whose residents are likely to be improperly
disposing of their propane tanks.
PSI conducted interviews with municipal officials or waste handlers in nine
communities within the SEMASS service area. To learn about successful programs
within that area, PSI targeted communities from the 2000 SEMASS propane tank survey
that were reportedly collecting a large number of tanks. Based on information raised in
those interviews (see #2 below), PSI categorized the nine communities into those likely
to properly handle their tanks and those less likely to do so:
Likely to properly handle their tanks:
Less likely to properly handle tanks:
Yarmouth
Martha’s Vineyard
Plymouth
New Bedford
Mashpee
Duxbury
Truro
Harwich
Bourne
Kingston (not interviewed but discussed in another interview)
PSI recommends that SEMASS take the following steps to prioritize the remaining
municipalities within its service area for targeted action:
(1)
Contact Municipality: SEMASS’ 2000 propane tank survey provided useful
contact information for municipal public works staff. An updated recycling
contact list can be obtained from John Crisley of the MA Department of
Environmental Protection, at (617) 556-1021, or John.Crisley@state.ma.us.
(2)
Evaluate Municipal Conditions: Through the interviews, PSI has
determined that certain municipal conditions lead to proper management of
used propane tanks. SEMASS should ask questions of each municipal contact
to determine if the following conditions exist:

Multiple tank disposal options: Some municipalities hold semi-annual
one-day household hazardous waste (HHW) drop-off events or staff a
permanent HHW drop-off center. Other towns have tank exchange cages
run by national businesses that accept outdated or extra tanks.
Dispenser/Refill operations are not consistently a way to recycle or
dispose of extra tanks. Different consumers prefer different ways to fill
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their propane tanks. If residents can dispose of their tanks in a way that
mimics how they fill their tanks, whether that includes municipal drop-off
locations or private exchange operations, they are less likely to dump
tanks or hide them in the regular trash.
Sample Questions:
 How many options for safe management exist in this area?
 What are those options?
 Where are they located?

Readily accessible information on tank management options: Even if
exchange and recycling options exist in a municipality, consumers need to
be informed about where to take their extra or outdated tanks. The
absence of readily available educational information pertaining to end-oflife management options will lead to improper disposal.
Sample Questions:
 What type of information do you provide to residents about
collection options?
 What additional information is available to them?

Free or inexpensive tank drop-off: Many municipalities reported running
successful collection programs that were either free to the consumer or had a
$1-3 surcharge per returned tank. However, when prices climb towards $10,
residents are likely to look for alternative and improper disposal methods.
Those interviewed suggested that, at some fee level, typically over $3, at
least some residents would stick their tank in a black plastic bag and put it
deep into their trash can, or toss it in a commercial dumpster. Refill stations
often have high trade-in prices, as they are strapped for space and may not
have efficient systems to manage tanks they collect.
Sample Question:
 How much do the different management options cost?

Convenience of options: Some municipalities in the SEMASS service
area have residents buy a sticker that allows them to drop off all their
waste at a central facility. These people regularly make trips to dispose of
their garbage, and would probably be less likely to discard their tanks
improperly than residents with curbside trash service who need to travel
solely to drop-off their tanks. In other areas, particularly in rural
communities, facilities may be far away or open only by appointment.
While residents may be accustomed to driving to dispose of regular trash,
if special wastes (like propane tanks) are not collected at that same
facility, residents might have incentive to dispose of the tanks improperly.
Sample Questions:
 How convenient are the existing options?
 How many days and hours are the options available each
week/month, etc.?
 Do residents find these options convenient?
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
Municipal involvement: Municipalities with at least one involved
employee, who is aware of problems from used propane tanks, are more
likely to communicate and coordinate with other departments in that same
municipality (e.g., public works and fire officials) in an attempt to find
safe and convenient local collection solutions. They are also more likely
to educate their residents.
Sample Question:
 Do you have an employee in your municipality who works on
propane tank collection and recycling issues?
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ISSUES AND POTENTIAL SOLUTIONS
PSI identified the following issues and potential solutions pertaining to 20-pound
propane tanks in the waste stream through 44 interviews conducted between December 9,
2002, and March 5, 2003 (see Appendix C). The issues and potential solutions have been
grouped into four categories – Education, Regulation, Economics, and Infrastructure. For
each category, we identify several key problems, and then follow with short-term and
targeted actions that SEMASS could take. Each section concludes with additional
solutions that would require additional time and resources.
SECTION I: Education
This category covers strategies to educate consumers, propane gas handlers, and
municipal officials.
PROBLEMS
 Consumers are often unaware of local municipal and commercial collection and
recycling options for propane tanks. If retailers or municipal officials have
recycling information available, it is often inconsistent or confusing to residents.

There is a lack of communication regarding safety standards and tank recycling
practices between retailers, municipal safety and public works officials, and state
and local regulatory officials. As a result, propane tanks are, at times,
inefficiently handled or not managed in a safe manner (see appendix E). For
example, municipal officials often improperly vent the propane gas prior to
having the tanks collected for recycling, or they store them improperly.
Communication gaps can contribute to an overall sense of confusion about
dealing with the product and a fear that they will be improperly handled, resulting
in a lack of interest in collecting tanks. This fear contributes to a lack of disposal
options.
POTENTIAL ACTIONS FOR SEMASS
PSI recommends that SEMASS take two basic approaches to educating
consumers within its service area:
(1) Use Existing Nationwide Website and Hotline
(2) Conduct Targeted Education Campaign
Nationwide Website and Hotline
Earth’s 911 is a national website and hotline that provides local information on
recycling and HHW management. PSI recommends partnering with Earth’s 911 to
provide information to consumers on propane tank management.
Website (http://www.earth911.org): Website users can enter their zip code and retrieve
a range of environmental information, including nearby municipal and commercial (e.g.,
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exchange) collection points for propane tanks, and whether there is a drop-off charge.
More detailed information about propane tank recycling is found through the “Recycling
Centers,” link although some information is also available through the “Household
Hazardous Waste” link. Municipalities have the ability to update the information
remotely and are responsible for any changes, so the amount of detail varies.
Telephone Hotline (1-800-CLEANUP): Callers can enter their zip code for recorded
area-specific information on places to drop off their propane tanks, recyclables, and
HHW. While the hotline is less user-friendly than the website, it is an important option
for those without web access. The State of Massachusetts, through the Department of
Environmental Protection, currently contracts with Earth’s 911 to provide environmental
information to residents in the state.
PSI recommends that SEMASS take a multi-faceted approach to maximize the
potential of this information source:
(1) Enhance the functions of the existing website and toll-free number;
(2) Encourage municipal officials to input information; and
(3) Encourage consumers to use the website and hotline.
Enhance System Function: Individual users of Earth’s 911 website may have a
hard time locating propane tank recycling information. PSI recommends that SEMASS
discuss with Earth’s 911 a process for developing a general propane tank Home Page,
question and answer section, and more obvious references and links to that information,
including making propane tank disposal information more accessible from the
“Household Hazardous Waste” page as well as the “Recycling Centers” page. More
specifically, PSI recommends that Earth’s 911 have a separate listing on the HHW
section and that the Propane Tanks link in that section provide the same access to general
information as is available in the Recycling Centers section.
PSI has interviewed and met personally with Earth’s 911 staff to determine the
type of additional information that might be made available for propane tank recycling.
PSI will create, in conjunction with Earth’s 911, a special content section on propane
tanks that will be cross-referenced throughout the website. PSI will also discuss
potential website improvements with Earth’s 911.
Earth’s 911 currently does not have website content where municipalities can
compare costs of different tank recycling services within the SEMASS service area. PSI
will provide this information on its own website(www.ProductStewardship.US), as well
as provide links to Earth’s 911 and other tank recycling resources (such as commercial
exchange companies). PSI will also provide and link to information about safe handling
of tanks. SEMASS can publicize this web resource to its customers.
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Encourage Data Input by Municipal Officials: After the website format is adjusted, the
next step is to ensure that the information on the site is as accurate and complete as
possible. After all, the website is only as good as the information that municipal officials
supply. While this process is time-consuming, it is the only way for the site to be
accurate. Earth’s 911 makes available a template on its website into which municipal
officials must enter specific data on the type of propane tank information available in the
community. Currently, municipal contacts arrange for a user name and password with an
Earth’s 911 staff member, which allows them to log on whenever they want to make a
change. A box on the left-hand side of the web Home Page provides municipalities with
detailed instructions and connects them directly to a contact who can help first-time
users. (Contact: Ann Reichman, Earth’s 911 Director of State Coordination, 602-2245444, areichman@cleanup.org).
PSI suggests that SEMASS review the template that Earth’s 911 uses to receive
information from municipal officials to ensure that it is user friendly. Any changes to the
format should be made prior to contacting officials to encourage them to use the
template.
PSI suggests that SEMASS take two approaches to reach the municipal officials –
one which will be statewide and another that will target specific communities. For the
statewide approach, SEMASS can write a letter for the MA DEP to send to municipal
officials across the state requesting that they take advantage of the Earth’s 911 service for
their residents by inputting environmental data to the system, but particularly for propane
tanks as Memorial Day looms. The upgraded features of the website pertaining to
propane tanks provides justification for sending a letter. DEP may have alternative
suggestions.
Alternatively, the National Propane Gas Association/New England could send a
letter directly to municipal officials urging them to use the service. Another statewide
organization that should be contacted to provide information to its members is
MassRecycle.
On a regional basis, the South Shore Recycling Cooperative (SSRC) can put an
article in its quarterly newsletter urging its 15 southeastern Massachusetts municipalities
to input data to the Earth’s 911 system. The SSRC’s newsletter is an excellent
opportunity to educate at least some of the municipal officials in the region about the
concerns with propane tanks. (Contact Claire Sullivan, SSRC Planner, 508-785-8318,
ssrcclaire@comcast.net.) Another regional contact is the Barnstable County Cooperative
Extension, which works with municipalities on Cape Cod. (Contact: Marilyn Lopes,
Extension Educator, 508-375-6699, mlopes@umext.umass.edu).
Lastly, the Solid Waste Association of North America (SWANA) also has direct
ties to municipal officials and can publicize the need for data entry in its newsletter and
website.
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SEMASS can also target specific municipalities whose local conditions make it
ripe for their residents to improperly dispose of the tanks and/or ones whose data is
particularly spotty on the Earth’s 911 website and hotline. SEMASS can use the website
to check zip codes for municipalities within its service area, noting municipalities that
provide outdated or sparse information. Once these municipalities are targeted, SEMASS
could target a separate letter to local officials and/or make individual phone calls
expressing the need to provide updated information on propane tanks.
Encourage consumers to use the website and hotline: DEP promotes Earth’s 911 in a
variety of ways, including putting information about the service on recycling education
brochures and developing public service announcements for radio and television. More
outreach can be attempted, and a variety of communication strategies can be employed.
Each of the communication strategies below could advertise Earth’s 911 website and
hotline number, once improvements are made to the system and information has been
input.
Other Communication Strategies
Use Existing Educational Materials: Most of the municipalities that PSI
interviewed did not have an educational campaign associated with their propane tank
recycling program, or felt their campaign did not reach the target audience. Exchange
and/or refill operations sometimes, but not always, posted signs on propane tank cages or
equipment that had recycling information.
In Appendix D, PSI provides examples of educational materials used by public
agencies and private companies to convey propane safety and disposal messages. One
from the Indiana Propane Gas Association is an excellent question and answer fact sheet
that could be revised, with permission, to include the Earth’s 911 website and toll-free
hotline. Another piece from the New Hampshire Department of Environmental Services
contains disposal information and could also be adapted easily. Three other notable
pieces that appear in Appendix D are from Blue Rhino (the tank exchange business),
Waste Management, and the National Propane Gas Association.
SEMASS could target priority municipalities in the service area with one or more
of the specific communication strategies listed below.
 Placards: SEMASS can ensure that tank exchanges in its service area have metal
placards on their collection cages.
 Brochures and posters: These would be effective at refilling stations, gas
distribution outlets, retail outlets, municipal depots, libraries, and other prominent
locations. SEMASS should first determine if existing materials are available to
suit their need. PSI assembled a variety of existing materials in Appendix D.
SEMASS might want to contact NPGA/New England for assistance in providing
large quantities for distribution in the service area.
 Bill Inserts: SEMASS could place a one-page fact sheet in utility bills with
cooperation from municipal administrative offices and public works departments.
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

Cable Spots: Although it would take longer, local cable spots would be highly
effective if played on local cable TV networks.
Newspaper Articles: SEMASS can develop articles for placement in local papers.
Identify priority distribution points: Through its interviews, PSI has determined that
Refill/Distribution outlets and tank exchange cages are excellent places for recycling
information such as placards and posters. However, other methods of information
dispersal (e.g., newspaper ads, brochures handed out at municipal DPW yards, and bill
inserts) have also been used successfully. One medium was not overwhelmingly more
successful than another in conveying the message to the public, although repeated or
intense coverage was an important part of any successful campaign.
Develop Custom Educational Materials: Although much more costly, SEMASS can
create its own messages that will be tailored for its unique circumstances. Through the
interviews, PSI has gleaned that the following information is the most important to
include in any communication:





Where to take your unusable or empty tank – or a telephone number or website to
find out that information.
Why OPD valve legislation was enacted.
How to distinguish OPD from non-OPD tanks.
Safety information on handling and storing propane (including keeping valves
closed, storing tanks upright and outside, and not de-valving, crushing, or purging
tanks unless it is done professionally).
A local phone number to call for more information (a live person).
Solidify partnerships: PSI has determined that Worthington Cylinder and Manchester
Tank, the two primary tank manufacturers in the United States, are willing to entertain
proposals to develop point-of-purchase informational materials, such as signs on propane
cages, and/or other public outreach materials. SEMASS can talk with municipal officials
in selected areas and develop cost estimates for an educational campaign. These
estimates could be developed into a proposal for consideration by these two
manufacturers that would include the cost of graphic design (if existing materials are not
available), printing, distribution, and program coordination.
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OTHER POTENTIAL SOLUTIONS
The following strategies would require additional time, resources, and the
cooperation of multiple stakeholders.
Tank Labeling
One direct and simple way to communicate with the public is by clearly labeling
propane tanks with proper disposal information. The information could potentially be
engraved and fixed on the tank metal, incorporated into a shrink-wrapped label, or stuck
on a tank with adhesive. Manufacturers could potentially affix a metal label, or a more
temporary label could be attached at distribution or refurbishing plants. Since tanks
travel far from distribution and retail locations, it would not be feasible to list local tank
recycling options. However, information on the label could direct consumers to their
municipal public works agency or to a national hotline or website, such as Earth’s 911.
In order to move ahead with this option, SEMASS needs to:
(1)
Establish communication with Manufacturers, Distributors, and Exchange
Businesses: Worthington Cylinder and Manchester Tank expressed a willingness
to consider labeling their tanks with appropriate information.
SEMASS will need to have conversations with these two contacts and determine:
 What information do they believe is necessary to put on the tank?
 How would they assure that the information stays on the tank when the
tank is ready for refilling or exchange? (For example, the tanks are often
pressure washed and painted between uses.)
 What options exist for label durability?
 What other stakeholders are needed to reach consensus on the label
language (e.g., refurbishers, tank exchange businesses, refillers, etc.)?
 What steps need to take place to change the label?
 How soon would new tanks appear at the retailer after the decision to
change the label is made?
 How to address the concern expressed by manufacturers that they can be
held liable for any problems resulting from the instructions on the label?
(2)
Prepare Draft Label Language: PSI assisted in developing language for use on
pesticide labels for a Pesticide Registration Notice developed by the U.S. EPA.
Based on this experience, PSI suggests that SEMASS start with draft language
that reads:
TO DISPOSE: Call your local solid waste agency, 1-800-CLEANUP,
or www.Earth911.org for disposal instructions. Do not put in regular
trash.
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
(3) Reach Consensus on Label Language: Before finalizing the label
language, SEMASS should attempt to reach consensus with key stakeholders
in addition to the two tank manufacturers. For example, if the label will be
included on shrink-wrapped sleeves for tanks in exchange programs, exchange
businesses will need to participate in developing the language as well.
Ongoing Communication
PSI recommends that SEMASS establish an ongoing communication link with
existing organizations to monitor the success of its efforts and to jointly solve problems
related to tanks still in the waste stream. This group should be in contact on a periodic
basis to communicate the results of efforts and plan future strategies. The key
organizations in the SEMASS service area were listed above and include:






South Shore Recycling Cooperative
Barnstable County Cooperative Extension
National Propane Gas Association/New England
Solid Waste Association of North America/Massachusetts Chapter
Massachusetts Department of Environmental Protection/Southeast Region
MassRecycle
SECTION II: Regulations
This section covers problems and potential solutions that are regulatory in nature.
Propane training, handling, and storage are regulated under Massachusetts code 527
CMR, section 6, which references the National Fire Protection Association (NFPA) code
58. Individual states adopt particular versions of NFPA 58 (Massachusetts has adopted
the 1998 version) and reference them in their own codes. The code is then considered the
minimum level of enforcement throughout the State. Municipalities are able to create
more stringent ordinances or bylaws on their own, but are not allowed to drop below the
statewide standard. The State Fire Marshall’s office promulgates the propane tank code,
and local fire departments are responsible for enforcing the code at a site. The U.S.
Department of Transportation regulates propane transport. According to the
Massachusetts State Fire Marshall’s office, if refillers/distributors or tank exchange
operators are found to be out of compliance in their handling of propane, they could lose
their permit.
PROBLEMS

Lack of Enforcement of Training and Handling Procedures: The LPG code
requires that all businesses that exchange or refill propane tanks train their
employees in proper handling procedures. Municipal fire officials, who have
the authority and responsibility to enforce LPG codes, do not consistently
enforce them, particularly with regard to training and handling requirements.
Recent tight municipal budget and staff limitations have exacerbated the
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problem. Lack of enforcement poses safety risks, especially in the case of
small refillers who might overfill tanks or allow the filling operation to be
unattended if staff also must pump gas. While exchange cages are safer than
refill stations, mishandling (such as dropping tanks or failing to secure or
protect them properly) is still possible. Several local fire marshals cited these
types of scenarios as reasons why they do not want refilling or exchange
operations in their municipality. Lack of proper handling by station attendants
can also lead to customers being unaware of how to safely handle and dispose
of their gas cylinders.

Lack of Dumpster Disposal Policy, and Lack of Publicity for Existing Waste
Disposal Policies: Some consumers hide propane tanks in dumpsters, in
construction roll-off containers, or in opaque plastic bags they put in garbage
cans. Because disposal of propane tanks in dumpsters is not explicitly against
any state law or code, some waste management companies have instituted
their own system of disincentives for their customers. For example, some
companies pass on costs imposed on them by the disposal facility for bringing
in used tanks in the regular trash. Waste management customers and the
broader public may not be aware of policies prohibiting dumping, including
imposition of fines, or the reasons behind the policies.

Restrictive Local Rules: Local Fire Departments, out of a concern for
residents’ safety, may limit local refilling or tank exchange options through
zoning or permitting. These limitations can actually create added risks in the
community and at other locations by causing residents to dispose of their used
tanks improperly out of frustration from not having viable disposal locations.

Lack of Education of Sanitation Workers: Garbage collectors often lack
information on tank recycling. As a result, they may not be able to educate
the public, and are not motivated to remove tanks that they see in the trash.
POTENTIAL ACTIONS FOR SEMASS
Increase Enforcement of: (a) Training and Handling Procedures and (b) Waste
Disposal Policies: If training and handling procedures are followed, propane will be
handled more safely and, as a result, local fire marshals will be more likely to allow
refillers and exchange businesses in their communities. In addition, if waste disposal
policies and disincentives are created and publicized, fewer tanks will enter dumpsters
and get sent to the SEMASS plant. PSI suggests that SEMASS advocate for increased
local enforcement of training and handling procedures and waste disposal policies
through the following steps. PSI recommends that SEMASS seek greater action from
waste hauling companies, which have authority to create systems of disincentives for the
dumpsters they service. This approach should be tempered with educational and
incentive-based approaches.
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Gain Support of Refillers and Exchange Businesses: Although enforcement of
training and handling procedures will penalize the non-compliant companies of those that
refill or exchange tanks, those companies that are in compliance have much to gain if
they can do business in communities that now prohibit their services. These companies
will also gain by keeping tanks out of the waste stream, increasing the potential for them
to be refurbished. Gaining the support of these businesses will be key in increasing the
likelihood that this approach will be successful.
Target Problem Municipalities: Since municipalities have the authority to enforce
training and handling procedures, as well as waste disposal laws and policies, SEMASS
should target those municipalities likely to be problematic. Municipalities can be
targeted using the method and questions introduced in the “Identifying the Project Area”
section, with the addition of a question or series of questions, such as:
 Have consumers or other municipal officials expressed concerns about safety
and handling of propane in this area?
 Have waste hauling contractors expressed a concern with propane tank
disposal in trash bins or dumpsters?
Send letter to Problem Municipalities: A low-resource strategy would be for SEMASS
to send a letter to each of the targeted municipalities to outline legal requirements
regarding training and handling of propane tanks and tank disposal. The letter could
outline the increased risk due to lack of enforcement, request increased enforcement,
outline the fines that could be levied against the municipality, and outline proper
management options (e.g., exchanges, collection locations). Such a letter would put the
municipality on notice about risks resulting from current municipal practices, which will
increase their liability if they do nothing. SEMASS should explore the potential for
getting the State Fire Marshal’s Office to send the letter on its behalf. However, a more
comprehensive and effective strategy would involve a meeting with all key stakeholders,
although this approach would be more resource intensive.
OPTION: Convene Municipal Forum: If SEMASS was willing to make this resource
commitment, it should convene selected municipalities and invite the State Fire Marshal,
local fire chiefs, operators of refill and exchange businesses in the targeted
municipalities, key representatives (mentioned above) from refillers and exchange
businesses, and local waste haulers. The Agenda could include the following:
 Overview of the rules and regulations related to training and handling.
 Overview of the rules and regulations related to waste disposal.
 Overview of enforcement issues, fines, and proper handling procedures.
 Options for proper local collection.
 Discussion of issues and solutions related to tank recycling.
Prepare for Municipal Forum: Appendix D contains training materials that SEMASS
could use to prepare for a forum. SEMASS would want to request that staff from the state
fire marshal’s office be in attendance to outline legal responsibilities of municipal
officials, refillers, and exchange businesses. PSI provided the materials in Appendix D as
background for SEMASS staff.
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14
Propane Tank Product Stewardship Project
July 15, 2003
Complementary Strategies: Either in conjunction with, or separate from, the above
efforts, SEMASS could initiate the following actions:

Tank Stickers: SEMASS could develop materials for waste haulers to carry with
them on their routes (e.g., printed on stickers or tags). Waste haulers could tag
tanks that are improperly placed on the curb or in dumpsters for disposal. The
stickers would alert the consumers or business owner to the dangers of improper
disposal of propane tanks, inform them about current regulations, and offer local
options for proper collection and recycling. These tank stickers could also direct
consumers to the Earth 911 website (www.Earth911.org) and hotline (1-800CLEANUP) for this information.

Create incentives for waste haulers and trash transfer station operators:
Operators of refuse-derived fuel (RDF) plants in other parts of the country have
had success keeping tanks out of the waste stream through increased employee
inspections. A representative from the Covanta plant in Connecticut encouraged
experimentation with employee motivation systems. They have noticed improved
performance when they reward inspectors with a financial bonus for every tank
they retrieve. SEMASS could introduce similar incentives for local trash transfer
station workers in priority areas, as well as incentives for its own workers.
SEMASS did operate an incentive system in Plymouth, where a small sum was
paid to the worker’s selected charity for every tank retrieved. This system was
discontinued due to concerns with the type of charities that were chosen.
However, the system could be reintroduced with direct payments to workers, in
order to avoid similar complications.

Dumpster Placards: Similar to a recommendation made in the Education
section, SEMASS could work with municipalities and tank exchange businesses
to create placards for dumpsters with information about waste disposal
regulations, fines, and safety risks from improper disposal of propane tanks.
Currently, some waste hauling contractors pass charges imposed by SEMASS or
other transfer stations on to their customers (those who own the dumpsters).
Charges to the customer have been reported at $20-30 for each contaminated load.
This disincentive could help motivate generators to lock dumpsters or take other
precautions that would limit the improper disposal of tanks.

Educate Trash Truck Driver: SEMASS can compile a fact sheet that includes
recycling options and locations for targeted municipalities, an explanation of safety
concerns caused by propane tanks in the waste stream, and a breakdown of fines
and regulations about propane tanks for that location. This information can be
distributed to waste collectors, and possibly reinforced with short presentations
given to waste hauling company managers. Education could focus on why tanks
are a concern in the garbage and what they can do if they find them. Trash
collectors can reduce the need for municipal involvement by reducing the number
of tanks that are placed or left in dumpsters and garbage cans.
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15

Develop List of Improved Handling and Training Procedures: PSI’s interviews
have indicated that training propane gas refillers and tank exchange businesses
about proper handling procedures could be effective in diverting tanks from the
waste stream. When employees handle the tanks safely, it decreases on-site risks,
and when employees model good tank handling behavior, consumers can learn and
follow suit. This would help eliminate consumer confusion and inconvenience –
two of the main factors in improper tank disposal. If municipalities felt that
propane was handled safely and well, it would also encourage them to increase
options for safe recycling. SEMASS could provide municipalities with a list of
training resources to supplement their existing programs. PSI has identified the
following organizations that provide training and training materials.
 The National Propane Gas Association (NPGA) offers a free 220 page
textbook to fire departments and propane dealers on training trainers which
can be found at: http://www.npga.org/public/articles/?Cat=114 TEXTBOOK. NPGA also runs the Certified Employees Training Program,
which has accompanying materials.
 The Propane Education and Research Council (PERC) offers a propane regulatory
compliance program, which can be found at:
http://www.propanecouncil.org/about/compliance.htm.
 Additional training materials can be found in Appendix D.
Convene Meeting to Address Restrictive Local Rules: Another idea is for SEMASS to
either hold a separate small meeting with the handful of local fire marshals that prohibit
refillers and exchanges to address their restrictive local policies or expand the meeting
agenda above to include a focus on those municipalities restricting access.
OTHER POTENTIAL SOLUTIONS
The following two strategies are more comprehensive in nature and will take
longer to implement. However, they have been successfully employed in two other
states. Both use similar systems - one creates a code through established regulatory
frameworks, and one mimics a regulatory type solution voluntarily, using respected nongovernment associations and government/association partnerships. These solutions
address the wider problem of a lack of collection options, and might also be a successful
strategy for dealing with local fire officials who prohibit exchanges and refillers from
operating in their communities, although their concerns will only be addressed through
increased enforcement of training and handling procedures.
Develop a State Rule Requiring Collection: Louisiana has successfully implemented a
rule (effective January 2002) that mandates that all companies that have a permit to fill or
exchange propane tanks must take them back from the customer. Propane distributors, in
turn, are required under this rule to pick up tanks from the refillers without charge. Noncompliance is punishable with a fine. As a result of this rule, distributors in Louisiana
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16
have entered into arrangements with tank brokers, who will collect the tanks at their
facilities or, in some cases, at the retailer.
Foster Industry Cooperation to Collect Tanks: SEMASS could also work with
PGA/New England and the Propane Education and Research Council to encourage
propane retailers to voluntarily collect tanks, based on a model used during the summer
of 2002 in Indiana. Indiana’s Propane Gas Association encouraged its members early in
2002 to accept tanks from consumers free of charge for a 90-day period during the
grilling season. Those who signed on to the program were highlighted on the state PGA
website.
The program generated much positive publicity, including an opening press conference
featuring speakers such as the Indiana State Fire Marshal, the Assistant Superintendent of
the Indiana State Police, and the Commissioner of the Indiana Department of
Environmental Management. The publicity generated by this initiative encouraged large
retailers and tank recycling companies to promote their tank recycling services. As a
result, consumers were well informed about recycling options and had many convenient
drop-off points from which to choose. A tank refurbisher, Tri-State, arranged to pick up
tanks at participating retailers during that period, and Indiana expects that many of those
tank broker/retail relationships will continue in 2003.
This strategy worked because the state PGA rallied the industry around an issue that the
association said was important. According to our contacts at the PGA, those who
participated in the program did so more out of an interest in being a good corporate
citizen rather than the publicity and extra business that might result.
SECTION III: Economics
The OPD valve change has resulted in a glut of tanks flooding municipal recycling
depots. This valve change has reduced safety risks in the use of propane tanks but has
increased handling costs for municipalities. Many municipalities around the country want
to be compensated for their increased costs. If local government costs are not covered,
they have less incentive to collect tanks, since many will not have the funds to manage a
collection program. While tank exchanges and other collection options exist for
consumers, any amount of disposal cost can be a powerful deterrent to managing the
tanks in a safe manner. On the other hand, several large companies, as well as smaller
ones, exist that collect and refurbish or recycle the tanks. These companies have incentive
to seek out tanks for collection. One major key to successfully removing tanks from the
waste stream will be to align market forces so that economic incentives and disincentives
work together to encourage tank collection and recycling.
PROBLEMS
 When the cost to collect and recycle a propane tank is either too costly or
inconvenient, the consumer has an incentive to dispose of the tank improperly.
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
Tanks last longer than the equipment they are sold with. Manufacturers sell a
new tank along with the equipment (e.g., a barbecue grill) that uses propane as a
fuel source. Selling the tank and equipment as a complete set increases the interest
in and/or retail value of their product. However, this practice creates a glut of
tanks.
POTENTIAL SOLUTIONS
Innovative economic incentive systems have been developed for other problematic
wastes, such as beverage containers, tires, automobile batteries, and motor oil. For these
products, as well as for propane tanks, the cost to collect and recycle is greater than the
market value of the material. In other words, someone has to pay to remove these
products from the waste stream. Traditionally, state and local government agencies have
been the backbone of our nation’s waste management system. While manufacturers make
products and retailers sell them, taxpayer-funded government programs have paid for
disposal. As the toxicity of the waste stream has increased and the need to remove
products has grown, so have management costs.
PSI’s research has shown that the cost charged to consumers to dispose of one propane
tank varies from about $3-10 in Massachusetts. PSI’s experience with other special
wastes has shown that the higher the fee charged to a consumer, the greater their
incentive to improperly dispose of their waste. Even a $3 disposal fee will be too much
for some people. This cost barrier is a major reason for the glut of tanks heading to the
SEMASS facility.
PSI explored various economic solutions during this project. Implementing economic
solutions requires that stakeholders be educated about the alternatives so they can
eventually rally around a particular solution. This process will require a variety of
stakeholders and would not be able to be implemented by SEMASS alone. Such an
agreement would best be developed through an extended dialogue such as the one started
at the Summit. SEMASS could advocate for a particular model or contribute to
discussions as a part of a longer-term process.
PSI has identified many stakeholders who are interested in exploring financial options for
propane tanks, although almost all of them were unfamiliar with the concepts and wanted
additional information to help them evaluate their potential. Some of these options
include:
 Taxes – Most programs are government run and paid for by taxpayers. To
increase the collection of most special wastes, new collection systems must be
developed or the product must be added to an existing system. In either case, costs
are increased. These costs can be covered by an agency reallocating funds to
address the problem, reallocating funds within the agency’s overall
administration, or increasing taxes. Owing to the concerns over continuing with
taxpayer funds, especially in the current economic climate, this option does not
have support among government agencies.
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






End-of-Life (EOL) Fees – These fees are paid by consumers at the end of a
product’s life to whichever entity operates the collection (e.g., retailer,
municipality). While EOL fees can offset a government’s cost to manage
products, most agencies view them as ineffective since consumers are encouraged
to dump the product illegally to avoid payment. In addition, many agencies don’t
want the responsibility to collect the payments.
Deposits – Deposits can operate like the bottle bill, in which consumers can
receive the full deposit value back if they return the used item. Alternatively,
consumers can receive a portion of their deposit back, as is the case in many areas
in Canada.
Visible fees – Some states have laws that require consumers to pay an additional
fee on certain products, such as motor oil. These fees are communicated visibly to
the consumer and are paid by the consumer at retail to cover the extra cost to
collect and recycle the product.
Bounties – Consumers could also be provided with a “bounty” paid at the
collection location for return of the used tanks, or with coupons to redeem at retail
outlets sponsoring collections.
(Voluntary) Retail fees: Another consumer incentive could involve the retailer
charging a small fee only if the consumer does not bring back an empty tank
when they purchase a new tank. This fee is charged by retailers in many states for
automobile batteries and can be initiated without legislation requiring the retailer
to take action. However, in the case of auto batteries, the product’s positive
market value provides the incentive for retailers to set up such a system.
Producer Responsibility/Invisible Fees: Manufacturers could factor the end-oflife management costs for used tanks (e.g., collection, transportation, refurbishing,
and recycling) into the purchase price of new propane tanks. This could be done
voluntarily, as in the case of the Rechargeable Battery Recycling Corporation, or
legislatively, as is being implemented in many countries in Europe and Asia. The
added cost to the consumer, in this case, is invisible to the consumer and paid at
retail. The consumer pays more for the product, which includes the collection and
recycling service, but isn’t aware of the separate cost. The funds generated by this
initiative could be managed by a third party organization (e.g., the Propane
Education & Research Council), which could disburse funds for educational
programs, develop contracts for the transportation of tanks to designated
processors, and ensure effective infrastructure and recycling programs. The fund
would effectively develop a collection system so that consumers were guaranteed
the ability to drop the used tank off for no extra charge at designated locations.
Product Purchase Agreements – Manufacturers and retailers could also work in
conjunction to create economic incentives to buy propane-powered equipment
(e.g., a grill or a recreational vehicle) without having to purchase a new tank.
Through its interviews, PSI has also identified existing opportunities and obstacles to
implementing an alternative financing system, including:
Opportunities
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
Existing Fee Mechanism: A law already exists that levies a .04/cent fee on
every gallon of propane sold, so there is an existing mechanism that raises a
significant amount of funding to be used to reduce the impacts within the propane
gas industry. SEMASS and others would have to convince the Propane Gas
Association and the Propane Education and Research Council that these funds
should be used to help collect used tanks. The law allows PERC to raise the fee
to.05/cent. In lieu of adding a deposit or another front-end fee, SEMASS and
other interested parties could propose that PERC use some of the existing funds
to reduce the risks posed by improper disposal of propane tanks. PERC funds are
available for projects on a state basis through state PGAs.

Interest to Explore Options: Key stakeholders indicated that they could consider
some type of legislation that allows for a “level playing field” so that, if the price
of their product was higher to reflect the cost of safe tank management, the price
of all products would be higher. Those interviewed expressed a concern that a
system would have to ensure that there were no “free riders.”
Obstacles
 The industry may be resistant to additional fees or deposits, as they are already
being charged a per gallon fee.
 The growing international market in 20-pound propane tanks may make it
difficult to involve overseas companies meaningfully in a process to develop an
economic solution. Creating a level playing field is more difficult with
companies that are not domestic.
SECTION IV: Infrastructure
Infrastructure issues arise when transportation, equipment, or storage systems are not
adequate to handle tank recycling needs.
PROBLEMS
 Many municipalities and retailers lack space to appropriately store used propane
tanks prior to having them collected to be refurbished or recycled. This limitation
reduces their options for tank recycling, as recyclers often require a minimum
number of tanks in one location for pickup.

Municipalities are often served in their region by only one tank recycling
operation. Because of the lack of competition, they may be forced to accept a
limited range of service options.

Municipalities do not have access to equipment they could use to safely prepare
the tanks for scrapping, which reduces their options for managing the tanks.
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POTENTIAL SEMASS ACTIONS
Bolster Tank Exchange/Retrieval Systems
Tanks are less likely to enter the waste stream in areas where tank exchange businesses
are active and/or tank brokers work with businesses to haul away empty tanks. These
companies, in contrast to refillers, often accept tanks for no fee, a small fee ($1-2), or as a
small charge added to the price of a new full tank of gas. However, individual exchange
businesses have their own policies, so one cannot assume that they will take used tanks
outside of a one-for-one exchange. It is always best to contact the company in advance.
SEMASS could work with these companies to improve municipal access to these
services. This may include increasing the frequency of tank pickups or increasing the
geographical density of pickups within the SEMASS service area. SEMASS could take
the following steps to implement this action:
Identify current consumer-oriented tank exchanges in priority areas: The two largest U.S.
tank exchange operations (Blue Rhino and AmeriGas) service the same municipalities as
SEMASS. Each has a website with the ability to locate the nearest exchange location by
entering a zip code (http://www.bluerhino.com, http://www.amerigas.com). These sites
can serve as a tool to find areas that are underserved by exchanges. By plugging in zip
codes of the municipalities in the SEMASS region, SEMASS will be able to determine
the extent of coverage in any one area. If gaps are found, SEMASS could alert tank
exchange companies of business opportunities. Tank exchange businesses will require a
municipal permit. SEMASS should, therefore, involve municipal authorities in any
conversations, to ensure that local authorities do not prohibit permitting tank exchanges.
Identify tank brokers and coordinate with municipalities: SEMASS representatives can
also talk with public works officials in selected municipalities as described in
“Identifying the Project Area” (Section I) to identify any existing relationships with tank
brokers, as well as to determine the numbers and locations of tank drop-off points and
tank preparation requirements. Municipalities may not be aware of tank pick-up options,
and tank brokers may not be aware that areas are in need of service. PSI has spoken with
three businesses that pick up tanks in the SEMASS service area. Their restrictions are as
follows:

Tank Recyclers makes regular trips to locations that can supply 2,000
tanks/month, but also arranges more sporadic pickups for places with more than
100 tanks. Their prices, as of April, were:
20 lb. grill tanks - $1 each (100 minimum)
Tanks under 20 lb. - $1 each
Tanks over 20 lb - $20 each
Fewer than (100) 20 lb. tanks - $5 each
Helium Tanks - $5 each
Fire Extinguishers - $5 each
Refrigerant Canisters - $10 each
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(more information is available on http://www.tankrecyclers.com/pickup.htm).

McKnight Cylinder will make regular pickups for free when the amount
reaches a half truckload (approximately 500-600 tanks). Tanks should be
palletized and shrink-wrapped in preparation for pickup.

AmeriGas will make pickups for all tanks, even those not under its own exchange
program. Our initial AmeriGas contact suggested that the company does not
currently impose limits on the number of tanks or geographical area (within
reason) for pickups, and would consider picking up for free. (After the AmeriGas
interview was conducted but prior to the Propane Tank Summit, the contact
changed. Therefore, the current contact may have a different understanding of the
company policy.)
Once SEMASS has determined the extent of the need for service and identified an
appropriate tank broker, they might go one step further and suggest that the broker
collect from municipalities at identified consolidation points or operate “milk
runs” through a number of smaller adjacent communities to reduce collection
costs and develop an efficient return system.
Publicize efforts: SEMASS can help publicize new services with bill stuffers or
public service announcements.
One Day Collections
As mentioned earlier, PSI’s interviews indicated that brokers were more likely to take
tanks for free if a larger number are consolidated. For this reason, special tank collection
days, either alone or in conjunction with other household hazardous wastes, are an easy
and low-cost method of keeping tanks out of the waste stream. While the trend in HHW
collections is to have permanent collection opportunities, propane tanks offer a different
scenario. If collected on a one-day basis, there are no capital expenses and, if collected
with other hazardous materials, any set up costs can be shared. In addition, since
collection would be on a one-time basis, and would not be permanent, permits are not
required. Therefore, these collection days can operate in municipalities even where
propane refilling and exchange services are banned. SEMASS can organize collection
days by:
1. Collecting background information: Potential sources of background information
include local refurbishers or municipalities who have experimented with take-back
events, either for propane tanks or for other products (such as electronics).
2. Contacting Municipalities and Tank Brokers: After SEMASS determines priority
municipalities to contact (see Section I), it can contact public works officials to
determine if the municipality already holds an HHW collection and if it would be
interested in holding a separate collection for tanks or including tanks with their
HHW collection day. SEMASS will also need to determine if there is an existing
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relationship with a tank broker, or if one will need to be recruited to haul away the
empty tanks at the end of the event.
3. Publicizing event: SEMASS can work with local news media, such as radio
stations and newspapers, to publicize the event. SEMASS can also use printed
materials such as bill stuffers.
OTHER SOLUTIONS
Municipal/Facility Coordination – SEMASS could coordinate between tank collection
businesses and municipal and/or private facilities in targeted municipalities that have
space to provide a convenient local or regional drop-off consolidation and storage point
for empty tanks. SEMASS could assist in arranging for periodic bulk drop-off, and could
help contact companies to collect tanks when an appropriate number had accumulated.
Otherwise, SEMASS should encourage municipal officials to make the calls and arrange
for pickup.
Equipment Purchase – SEMASS could purchase equipment to safely decommission
tanks (e.g., remove valves, purge, and crush) and make it available to municipalities or
groups of municipalities. This could be an important solution for towns that have
continuing problems with damaged, rusty, or otherwise non-recyclable tanks and cannot
afford the equipment individually.
Regional/Model Contract – On behalf of the communities in its service area, SEMASS
could develop a regional tank collection and recycling contract that municipalities can
use to collectively contract with a vendor. Alternatively, SEMASS could develop and
share model municipal contracts with municipal officials.
Screen out Damaged Tanks – SEMASS could develop a screening procedure at its
facility that effectively separates damaged tanks from reusable tanks. This, in turn, will
reduce the need to transport non-reusable tanks back to the vendor’s facility. Instead, the
damaged tanks can be sent directly to a scrap metal dealer from the SEMASS facility.
This procedure will likely improve SEMASS’ relationship with these tank collection
businesses, which may increase the company’s willingness to work with SEMASS on
municipal tank pickups.
SECTION V: Background information on stakeholder groups and Propane Tank Life
Cycle Chart
Characteristics/Interests of Selected Stakeholder Groups:
The following are profiles of stakeholder perspectives on propane tank issues. Any
proposed solution will need to recognize these perspectives and concerns and build value
for those involved.
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Refillers
Propane refillers often run small operations in remote locations and face stiff competition
from larger retailers with tank exchanges. At times, these conditions may encourage them
to operate in unsafe ways (for example, by refilling non-OPD tanks to keep a customer).
Since they are remote, refillers may be under less regulatory scrutiny. They can make
more money on filling tanks with gas than by operating a tank exchange. Furthermore,
they often lack the space and incentive to take out-of-date tanks back from the consumer.
While there are many excellent refillers, the above reasons make some propane refillers
one of the more problematic links in the tank management chain.
Tank Exchange/Refurbishing operations
Exchange operations and refurbishers depend on the ability to collect a reliable and large
number of good quality tanks for testing and retrofitting . The largest tank exchange
companies extend their services over most of the United States, although they often limit
their pick-up services based on the number of tanks in a particular location.
Refuse-Derived Fuel (RDF) plants
Of all combustion facilities, RDF plants present the greatest risk relative to propane tanks
because they shred waste prior to combustion. In some parts of the country, RDF plants
are already considered financially or technologically problematic. Therefore, the
association representing these facilities does not want to focus attention on an issue that
could be interpreted as another RDF problem that results in additional costs to counties or
municipalities. Some RDF plants are not reporting problems with explosions from tanks,
and credit their facility technology and community outreach with keeping tanks out of the
waste stream.
Local government
Local governments are limited by available space and financial resources. They don’t
want to provide collection services to their residents because they will then have to pay
for the collections. Most municipalities do not like to charge extra fees just for tanks.
However, towns that charge residents for each bag or barrel of garbage often have
systems to pay extra for tanks. These communities may have more institutional structure
and capacity for tank handling. In these limited cases, residents may be more accustomed
to paying for each item disposed, and might be more likely to agree to a small end-of-life
fee for tank recycling. Rural areas have a different set of challenges for propane tank
recycling than urban areas. While urban areas have more tanks and a corresponding
higher financial burden, rural areas may have weaker tank recycling infrastructure and no
municipal household hazardous waste drop-off centers. As a result, while urban
consumers may slip tanks into commercial dumpsters, rural consumers may bury tanks in
their backyards. Each disposal method poses unique risks.
Consumers
Tanks are a recreational commodity, which means consumers are more likely to be
concerned with a large price increase as compared to the purchase of a product
considered a necessity. Consumers, therefore, are less likely to pay for additional tank
features, such as a gage indicating whether a tank is full or empty. Consumers also like
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convenience and are often willing to pay a little more for having easy access to propane
gas. For example, customers will often choose tank exchanges instead of refillers
because of the exchange’s extended hours. They are also likely to store extra tanks to
ensure that they don’t run out of gas, and often see no problem with storing multiple
containers because they are uneducated about the safety concerns.
Manufacturers
Propane tank manufacturers are motivated to reduce the risks from their products so that
consumers will not have a negative perception of their industry.
Scrap Dealers
Scrap dealers will make greater profit on large pieces of heavy steel or more expensive
metals. Therefore, they have less incentive to collect propane tanks, which contain less
metal. To enhance the interest of scrap dealers in taking tanks, consider combining tanks
with other metal products in a contract or prepare the tanks in a way that is most
beneficial to them (e.g., cut in half or crushed).
Propane Industry Associations
The following is a brief overview of two key organizations that currently assist and
educate the propane industry.
The National Propane Gas Association (NPGA)
The NPGA is an organization designed to promote industry safety, lobby the federal
government, provide communication between members, and to be proactive in
responding to industry challenges. It has an operating budget of approximately $5.4
million and reported 3,636 members at the end of February 2002. More than 75% of its
members are propane marketers, with the remainder being manufacturers, international
members, and distributors and service providers. Member services include access to
educational programs and information (through meetings, newsletters, and bulletins) as
well as an increased industry presence in Washington, D.C.
The NPGA is organized under 10 districts, each made up of 3-7 states. Each district has
a director, as does each state . Districts hold quarterly meetings, although the main
NPGA agenda is set by a 24-member Executive Committee. Most projects are referred to
and handled in the following committees: Education, Marketing, and Research and
Development.
Several interviewees stressed that the propane industry is comprised of many small
companies, with few large players controlling the bulk of the propane market. As a
result, members are accustomed to cooperating to advance common goals. This dynamic
should be an advantage in proposing solutions regarding the 20-pound tank problem.
Proposals should be first introduced at the state director level and then taken to a regional
level if applicable.
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The Propane Education And Research Council (PERC)
PERC works in conjunction with the NPGA. However, it is more narrowly focused on
promotion and education. This organization was formed in 1996 after passage of the
Propane Education and Research Act, and is funded by an assessment levied on each
gallon of odorized propane (currently at 4/10 of one cent, although it can be increased to
5/10 of a cent). PERC anticipated that this assessment would provide them with an
operating budget of $31 million in 2002. The Propane Education and Research Act also
determines the distribution of funds within the Council. For example, not less than 5% of
the money is designated for agricultural research. Other areas include safety and
efficiency. PERC is governed by a board of 21 members representing retail marketers,
producers, and the public in determined proportions. The board is not compensated for
its services, although it meets to review proposals and designate projects.
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PROPANE TANK LIFE CYCLE
Tank
Manufacturers
Gas
Equipment
Distributors
Equipment
Manufacturers (e.g.
grills, trailers)
sale
Big Box
Retail
Tank
Exchanges
/Brokers
Sale, refill, exchange
exchange
Propane
retail/
dispenser
operators
Consumers
Sale, refill
Waste
haulers
Landfills
/WTE
plants
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Municipal
Collection
Facilities
Scrap
dealers
27