What is the Hazardous Materials and Safety Compliance Fee?
The fee partially offsets the cost incurred by AmeriGas in complying with Federal, State and local regulations imposed on suppliers of hazardous materials, including propane. The fee itself is not government-imposed or paid to the government.

The fee covers costs AmeriGas must expend in order to comply with governmental regulations concerning:

• Workplace Safety
• Federal and State Codes
• The Environment

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What Does The Fee Cost?
$5.45 fee for all residential and non-residential customers with installation capacities that do not qualify for cylinder requalification.

$8.98 ($5.45 + $3.53) fee for all customers with an AmeriGas-Owned DOT cylinder(s) that have capacities from 100 lbs. up to and including 420 lbs. which qualify for cylinder requalification.

The fee covers AmeriGas’ costs for several safety programs, including:

$5.45 Fee Covers:	$8.98 Fee Also Covers:
Delivery/Service Technician Costs Vehicle Inspections Safety Inspections Safety Meeting Driver/Hazmat Training CETP Safety Week Dispenser Training Plant Inspections Inspection For Ops Systems	Cylinder Requalification Training Increased Costs to Requalify Cylinders Inspection of Cylinders New Cylinder Purchase Refurbish Cylinders Leak Check

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Why Isn’t The Fee Included In The Price Per Gallon?
The cost of compliance with these regulations is not one imposed by AmeriGas; rather, compliance is required by state and federal governments. While the fee itself is not mandated by the government, we want to keep the cost of compliance separate for your information.

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How Does The Fee Benefit Customers?

• AmeriGas has trained employees prepared to respond to emergencies
• All vehicles and propane equipment have the correct permits and inspections
• AmeriGas employees are trained in safe work practices which make your work environment and community a safer place
• AmeriGas takes the safety of our employees, customers and the general public very seriously. In realizing this priority, compliance with the accepted National Fire Association standards regarding the use, storage, handing and transportation of propane is imperative.

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Why Don’t All Energy Companies Impose The Fee?
All energy companies are subject to regulatory compliance. They either build the resulting costs into their prices, or use a fee.

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What Is Cylinder Requalification?
Until 2001, the requalification of cylinders in stationary service was not required. The law has changed - the 2001 version of NFPA Pamphlet 58 changed the requirement and gave the industry 4 years to come into compliance.

AmeriGas must comply with the cylinder requalification requirements of National Fire Protection Association Pamphlet 58, 2001 & 2004 editions (NFPA 58) that require the requalification of DOT cylinders filled in place at residential & commercial customer locations.

The law and propane industry standards, as set forth in NFPA 58, require the requalification of cylinders on a continuous basis. Therefore, because this will be a ongoing obligation, the fee will be charged on an ongoing basis.

We can absorb the capital cost, but we must pass on the cylinder inspection and repair cost to our customers.

• We need to do a thorough inspection of cylinders for rust or dents.
• In most cases we have to disconnect the cylinder to inspect the cylinder's bottom.
• Many cylinders have to be brought back to the plant for inspection. This means we have to provide cylinders for swap out.
• Cylinders that need to be refurbished will go to an outside Refurbisher for an average cost of $130.00 per cylinder.
• We estimate that many cylinder inspections may not be eligible for requalification, requiring the purchase of a new cylinder.

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How Are Cylinders Requalified?
The service tech(s) will conduct a site inspection to determine the following:

1. If a five year visual inspection can take place on oite to complete the requalification

OR

2. If the cylinder(s) need to be swapped for a requalified cylinder that is on the service truck.

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What Is The Five-Year Visual Inspection Process?

• Five year visual will require a short disruption of gas service
• The cylinder will be laid on its side for inspection of the bottom of tank. Any pit/dent on cylinder will be tested by the gauge
• The cylinder will be up-righted for completion of inspection; a regulator will be reattached and a leak check performed
• RIN number will be attached to cylinder if cylinder passes inspection
• The service tech will relight any pilots inside the customer location and provide the customer with a full explanation of the inspection

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What Is The Cylinder Swap Out Process?

• If a cylinder does not pass the site inspection, it will need to be swapped out for a requalified cylinder
• This process will require a short disruption of gas service
• After the swap out, the regulators will be reattached and a leak check will be performed
• The service tech will relight any pilots inside the customer location and provide the customer with a full explanation of the swap out process

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