Regulatory & Policy
NY, CA, IL Push Identical Bills to Triple Propane Tank Setback Distances
Three States Want to Triple Tank Setbacks — Act Now
Executive Summary
Three states are pushing for 25→75 ft setbacks near schools. No data supports this. Over 2,400 accounts and $180M-$240M are at risk. The NPGA is leading the opposition.
The Situation
Lawmakers in New York, California, and Illinois have introduced nearly identical bills that would triple propane tank setbacks near schools from 25 to 75 feet. The identical language suggests a coordinated national campaign, despite zero incident data supporting the change.
The Facts
### Coordinated Attack
New York (S.4891), California (AB-2217), and Illinois (HB-3304) have introduced bills with nearly identical language. This is a clear indicator of model legislation, likely originating from an environmental group such as Clean Air Future. All three bills would mandate 75-foot setbacks for propane tanks located within 500 feet of schools or daycare facilities.
### The Data Argument
The Propane Education & Research Council (PERC) and the National Propane Gas Association (NPGA) incident database reveals zero school-proximity propane incidents in the past 20 years under the current 25-foot NFPA 58 standard. Committee hearings are scheduled for New York on May 14, Illinois on May 28, and California on June 2. Approximately 2,400 commercial accounts — including restaurants, laundromats, churches, and retail shops — currently fall within the 25-75 foot zone near schools.
Business Impact
The NPGA estimates a potential annual revenue loss of $180 million to $240 million across these three states. For individual marketers operating in downtown or suburban territories, losing 15-30 commercial accounts could mean a revenue hit of $45,000 to $240,000 per company, with no transition period outlined in the current bill language. If even one state passes this legislation, expect 5-10 copycat bills to emerge within a year.
Key Data Points
- Bills: NY S.4891, CA AB-2217, IL HB-3304
- Proposed Setback: 25→75 ft
- Safety Record: Zero incidents in 20 years
- Accounts at Risk: 2,400+
- Revenue Impact: $180M-$240M/year
Key Takeaways
- Identical language signals a coordinated national campaign — this issue will spread.
- Zero incidents in 20 years is the industry's strongest argument.
- If one bill passes, 5-10 copycats will follow within 12 months.
- Legislative testimony and direct representative contact are the most impactful actions now.
Action Steps
- 1Map your accounts that fall within the 25-75 ft zone near schools.
- 2Contact your state propane association to join the opposition efforts.
- 3Prepare customer impact statements for potential legislative testimony.
- 4Call your state representatives directly — constituent stories often sway votes.
Competitive Advantage
Companies that actively engage in legislative advocacy build community trust and strengthen government relationships. This pays dividends long after a specific bill is resolved. When you tell a customer you fought to preserve their service, that creates retention no discount can buy.
Should the industry focus on a public safety data campaign or quiet lobbying? What's worked in your state?