Minnesota Reverses Propane “High-Cost Fuel” Classification

Last week, the Minnesota Department of Commerce accepted written testimony and feedback on the state’s proposed version of the 2026 U.S. Department of Energy Weatherization Assistance Program State Plan (WAP). The WAP is the official document a state prepares to apply for and manage federal weatherization funding. Within the Minnesota State Plan, the Department of Commerce identified propane as a “high-cost fuel,” singling out propane in that way that was inconsistent with a fuel-neutral approach, and could have created the wrong perception about an affordable, reliable energy source that many Minnesota families depend on.

NPGA’s state affairs team assisted the Minnesota Propane Association in submitting comments to the Department of Commerce. Ultimately, the Department agreed to remove propane from the classification of “high-cost fuels,” and clarified that fuel type alone cannot justify fuel switching and that Minnesota’s Weatherization Assistance Program does not permit fuel switching as a general practice. Dave Wager, Executive Director of the Minnesota Propane Association, has been engaged with the Department since the initial publication of the proposed State Plan. “This is a good example of how state associations and NPGA can work together to identify an issue, engage constructively with policymakers, and achieve a positive result for the propane industry and its customers,” said Wager.

For more information, contact NPGA’s Senior Manager of State Government Affairs, Austin Wicker.