Senate passes bill to stop propane companies from tacking regulatory compliance fees onto consumer bills
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Summary
The New York State Senate passed Calendar 214 (Senate Print 17-83b), which bars liquefied petroleum gas (propane) sellers from adding certain regulatory or compliance costs to customer bills; the measure passed after extended floor questioning about whether companies will absorb costs or raise prices, with a reported vote of 58–36.
The New York State Senate on Wednesday passed Calendar 214 (Senate Print 17-83b), a bill sponsored on the floor by Senator Hinchey that bars liquefied petroleum gas sellers from passing specified governmental or regulatory compliance costs on to consumers.
Supporters said the measure is intended to lower and clarify consumer bills. “This bill is making sure that we are lowering the bills that we hear are skyrocketing all the time,” Senator Hinchey said, adding that prior undisclosed fees had been imposed on customers for items such as termination charges and tank rentals.
Opponents said the statutory ban may be difficult to enforce in practice and argued those added costs will ultimately be borne by consumers. “When policies are passed in this chamber and those policies lead to increased costs…they pass it on to the consumer,” Senator Martin said during floor debate.
Senator Burrell repeatedly pressed the sponsor on Subdivision 13, asking whether the statute’s prohibition on passing compliance costs to customers is effectively a tax, and whether the bill requires companies to line-item compliance charges on consumer bills for transparency. Senator Hinchey responded that taxes may still be passed on under state law but distinguished the regulatory compliance costs the bill targets and said the Agriculture and Markets Department will implement the law and work with companies on execution.
After extended questioning and debate on economic impacts and enforcement, the Senate restored the bill to the noncontroversial calendar, read the final section and took a roll call. The Secretary announced that the bill passed with 58 ayes and 36 nays as recorded on the floor.
The bill’s proponents said it addresses two problems: undisclosed fees that can appear on propane bills and situations in which customers pay charges unrelated to delivered product. Detractors warned that mandating sellers absorb costs could create economic pressure on small propane businesses and recommended clearer oversight mechanisms to ensure compliance and protect consumers.
Next steps: the measure was passed by the Senate on final passage and will proceed toward enrollment and transmission consistent with the legislative process.