Hearing focuses on avoiding new propane shortages

WASHINGTON — The federal government must do more to avoid another propane shortage like the one last winter that devastated farmers and homeowners in some regions, Democratic and Republican senators said Thursday.

At a hearing before the Senate Energy and Natural Resources Committee, Democratic Sen. Tammy Baldwin complained that the Energy Department and other administration officials “did not have the plans or tools in place to respond to this crisis or anticipate it.’’

“The lack of a sufficient Emergency Response Plan from the Department of Energy was a serious problem, and will not prevent any future crises,” she said. “Actions must be taken so this does not happen again.”

She also complained about an inadequate supply of propane in reserve.

Energy Department officials defended the administration’s response, saying agencies worked together to address the crisis.

“The Obama administration was deeply engaged in responding to this crisis and took our responsibilities in this regard very seriously,’’ said Melanie Kenderdine, director of the Office of Energy Policy and Systems Analysis, and counselor to Energy Secretary Ernest Moniz.

Kenderdine said agencies took a number of actions, including issuing waivers expanding propane transport by truck and prioritizing propane pipeline shipments.

She pointed to several unusual conditions that contributed to the crisis, including severe weather, large, wet corn crops that required drying, and low inventories.

The agency plans to conduct regional workshops and meetings in Minnesota, Louisiana and elsewhere aimed at avoiding another propane shortage, Kenderdine said. She also said the administration is conducting an energy review to examine infrastructure concerns.

“With the abundant supply of petroleum we have here in the United States and North America, we can’t allow this to happen again,’’ Sen. Mary Landrieu, a Democrat facing a tough re-election battle in November, said at the hearing.

Republican Sen. Lisa Murkowski of Alaska said the propane crisis is “a reminder to us all of just how dire things can get when energy is not abundant, not affordable and not diverse.’’

The Midwest and Northeast were hit particularly hard by the propane shortage during a harsh winter marked by unusually frigid weather.

Northfield, Minn., turkey producer John Zimmerman, testified at the hearing about the devastating impact.

“The problem is far from fixed, and I am here today to once again thank Sen. Franken and the rest of the Minnesota delegation for staying focused on finding solutions,” said Zimmerman, former president of the Minnesota Turkey Growers Association. “Winter, unfortunately, will be here before we know it, and the potential for shortages, by all estimates, are going to get worse if significant steps are not taken soon.”

Witnesses recommended more propane storage facilities, streamlined approvals for those facilities, more early warnings about potential shortages and a faster federal response when they occur.

Sen. Al Franken of Minnesota said he heard concerns from constituents across the state, including homeowners, farmers and turkey growers.

“This problem wasn’t unique to Minnesota,’’ he said. “I don’t want this to happen again -- ever.’’

Baldwin echoed those sentiments.

“I am concerned about next season and the tools the federal government has to prevent a crisis or address one that is unfolding,” she said. “The federal response this year started when the crisis was at its peak, coming too late to avert the severe supply shortage.”