Senate advances LP-gas lease and fill rules after contentious hearing with attorney-general and industry testimony

Senate Bill 124 would govern contract rights and obligations related to leased LP (propane) tanks, require lease-based written agreements and require that removal charges be reasonable. The bills sponsor described it as a compromise among tank owners, distributors and consumer advocates intended to reduce abusive removal charges and clarify lease rights.

The floor debate drew a Committee of the Whole to hear testimony from a range of witnesses. Art Strong, from the Attorney Generals office, told senators that many rural Utah residents have no practical alternative to propane and warned that current practice (an agency rule that in some cases limits who may fill leased tanks) combined with civil remedies in the bill could make it harder for consumers to shop for lower prices. In his testimony he said, "In a large part of rural Utah, there is no alternative but to use propane to heat, homes." Industry representatives argued that leased-tank competition exists and that removal costs are generally modest; others urged that safety and existing regulatory rules be respected.

Senators voted to place the substitute bill on the third-reading calendar after discussing consumer protections, antitrust concerns, board composition and an explicit private right of action. Multiple floor amendments were offered and a number of clarifying changes (including reducing a proposed penalty and specifying lease/lessor/lessee language) were adopted during floor consideration.