A Decade of Progress. - Propane Marketing Findlay, Ohio ... the Council, who work on the five PERC...
Transcript of A Decade of Progress. - Propane Marketing Findlay, Ohio ... the Council, who work on the five PERC...
A Decade of Progress.2006 ANNUAL REPORT
USEPROPANE.COM
John Gawronski ChairmanTarga Resources Inc.Houston, Texas
Charles Revere Vice Chairman, MarketersRevere Gas & ApplianceHartfield, Virginia
David Wunch Vice Chairman, ProducersSemStream, L.P.Tulsa, Oklahoma
Kenneth R. Green SecretaryOklahoma Liquefied Gas Co.Seminole, Oklahoma
Michael W. Schwartje TreasurerConocoPhillips Houston, Texas
David Lugar Immediate Past ChairmanAmeriGas Propane, Inc.Houston, Texas
Mark AlexanderSuburban Propane Partners, LPWhippany, New Jersey
Doug AuxierAuxier Gas, Inc.Batavia, Ohio
Vincent Di CosimoEnterprise Products Operating LPHouston, Texas
Curtis J. DonaldsonClean Fueling Technologies Inc.Georgetown, Texas
Rosie DzanskiCrosstex Energy Services, L.P.Houston, Texas
George KoloroutisFerrell North AmericaOverland Park, Kansas
W. J. (Bill) McAdamAux Sable Liquid ProductsMorris, Illinois
Sam McTierPropane Technologies LLCLake Forest, Illinois
R.C. MillsHeritage PropanePonte Vedra Beach, Florida
Bill PlatzDelta Liquid EnergyPaso Robles, California
Glenn SaundersWhite Mountain Oil & Propane Inc.North Conway, New Hampshire
Ray ScholesPetrochemical MarketingFindlay, Ohio
Bruce ToellnerTriNova Energy Services, Inc.Houston, Texas
Jay WeinheimerWilliams Energy Field ServicesTulsa, Oklahoma
Steve WilliamsBP Natural Gas LiquidsHouston, Texas
2006 Counci lors & Of f icers
2 Timeline
4 Letter from the Chairman and the President
5 Consumer Education
6 Safety & Training
7 Research & Development
8 Agriculture
9 Engine Fuel
10 Industry Programs
11 Approved Rebates
17 Financial Statements
Contents
contents / page 1
TimelineSince the Propane Education and Research Act was signed in 1996, the propane industry has been adding new customers and keeping them safe,developing new uses for propane, and securing propane’s future as an exceptional energy. This timeline shows the major milestones for PERC andthe propane industry during the last decade.
Timel ine / page 2
Timel ine / page 3
In 2006, the Propane Education & Research Council (PERC) remained focused on its core safety and training, consumer education,and research and development programs. Because growing our industry depends upon innovation and new applications and technologies, PERC continues to give this work high priority, as we did in 2006.
The cornerstone of PERC’s 2006 technology efforts was the inaugural Global Technology Conference (GTC), which PERC organized and sponsored as part of the World LP Gas Association’s World Forum held in October. More than 300 industry leaders, researchers, and entrepreneurs from more than 40 countries gathered in Chicago to learn about and to see exhibits and demonstrations of the latest propane technologies. PERC showcased products from its research programs, including steamweed control, distributed power generation, commercial lawn mowers, composite tanks, and residential dehumidification systems.The GTC opened an important dialogue within the global propane community that continues today. It also provided a realisticassessment of the state of propane technologies. And while there is promise, there remains much work to do to realize that promise.
Another area where our industry continues to make technological progress is engine fuel. For years, PERC has worked to expandpropane’s share of the forklift market by partnering with forklift manufacturers to build new propane engines that meet stringentEnvironmental Protection Agency standards. PERC also took an active role in promoting propane forklifts to the materials handlingindustries. Both efforts succeeded, and sales of propane forklifts increased in 2006 for the third year in a row at double digit rates. Wealso undertook two new propane vehicle projects in 2006, working with Roush Industries on an F-150 Ford pickup truck and with BlueBird on its Vision school bus, both dedicated propane vehicles that come with full warranty protection and select dealership service.Sales of both the pickup truck and school bus begin in 2007 and promise to expand propane’s position as a leading alternative fuel.
Important safety and training efforts at PERC continue to provide new and updated safety information and training resources toconsumers, the industry, and first responders. Most notable for 2006 was the release of the first “E-Learning” training tool based onthe Certified Employee Training Program (CETP) curriculum. Basic Principles and Practices was launched in a computer-based DVDformat and provides training that is available anytime, anyplace and at lower costs. Work also began on the next two CETP E-LearningDVDs, which are set for release in 2007. Meanwhile, new consumer safety materials were completed in 2006 to help marketers fulfillduty-to-warn obligations with high-quality, legally reviewed products.
2006 was also a banner year for PERC’s consumer education efforts, as consumer awareness of propane’s benefits reached recordlevels and propane’s share of new home construction continued to exceed its share of existing housing. New “Energy Guys”advertisements were strategically placed on television, radio, and in print that promoted propane’s efficiency and reliability at a timewhen high prices and power outages were at the top of consumers’ minds. As potential customers heard about propane’s benefits,they turned to usepropane.com and the Find a Propane Retailer tool, also in record numbers.
A vital part of our work at PERC is “telling the propane story.” And we do that with, among other initiatives, our advertising, consumersafety projects, and the annual Propane Days events in Washington, D.C. This latter effort conducted jointly with the National PropaneGas Association brings our industry together to tell the propane story to congressional and agency decision makers. In 2006, itssecond year, Propane Days emerged as one of the more important events on the industry calendar. I encourage all of you to considerparticipating. Given the dynamic energy and environmental debate going on in our nation’s capital, telling our story has never beenmore important, and your voice can help make a difference.
Making a difference is the reason PERC exists. And the real engines of that change are the many industry volunteers who serve onthe Council, who work on the five PERC advisory committees, who participate in important outreach programs, and who represent ourindustry at important events and trade shows. Yes, there is much yet to do. Your participation can help ensure that we make progresson that work and succeed with our fundamental mission to increase the safe, efficient use of propane gas as a preferred energy resource.
l e t ter / page 4
John Gawronski, ChairmanPropane Education & Research CouncilVice President, Targa Resources, Inc.
Roy W. Willis, President and CEOPropane Education & Research Council
Letter
consumer educat ion / page 5
Consumer Education
Consumer Education Advisory Committee: click here to see a list of members.
Grants
11874 Propane Education & Research Council2006 Homeowner Advertising and Outreach Campaign$16,125,000
11875 Propane Education & Research Council2006 Homeowner Education Partnership with States Program$3,335,000
11876 Propane Education & Research Council2006 Homebuilder Advertising and Outreach Campaign$367,000
11877 Propane Education & Research CouncilHomebuilder Market Research$160,450
11878 Propane Education & Research Council2006 Manufactured Housing Initiative$305,000
11879 Propane Education & Research Council2006 Industry and Multi-Audience Communications Plan$690,000
11880 Propane Education & Research CouncilVehicle Branding Trade Show Outreach$25,150
11881 Propane Education & Research Council2006 Consumer Education Measurement and Evaluation Program$300,000
11882 Propane Education & Research CouncilMedia Monitoring and Reporting$41,000
11883 Propane Education & Research CouncilConsumer Education Advisory Committee$97,000
11903 Propane Education & Research Council2006 IT Support$63,000
11882 Propane Education & Research CouncilChange Order – Media Monitoring and Reporting$53,355
11974 Propane Education & Research CouncilRural Hospitality$25,000
11987 Propane Education & Research CouncilGrants Management System – Support and Modifications$135,274
11874 Propane Education & Research CouncilChange Order – Homeowner Outreach$95,419
12044 Propane Education & Research Council2006 Homebuilder Advertising and Outreach$357,000
12045 Propane Education & Research CouncilIBS 2007 Program$130,000
12134 Propane Education & Research CouncilResidential Consumer Target Audience Research$440,000
Looking ahead:
Results of a comprehensive
residential research study will
be released to the industry
in 2007. In-depth interviews
with builders and homeowners
are being conducted to better
understand how and when
consumers make energy
decisions. The research findings
will help PERC and the industry
identify more effective ways to
target consumers and turn them
into new propane customers.
The Campaign Extension
Program will be introduced to
the industry in 2007, putting
even more marketing materials
into the hands of states and
marketers. The national campaign
will be organized into seasonal
initiatives giving the industry
more ways and ideas on how to
align and coordinate local efforts
with the national marketing
communications campaign.
The propane industry continued its outreach to consumers across the country in 2006 bypromoting the benefits of using propane in the home through advertising on TV, radio, theInternet, and in numerous publications.
The Energy Guys campaign, which launched in 2004, returned for a third year with severalnew television, radio, and print advertisements. The multi-faceted consumer educationcampaign, targeting homeowners and builders, promoted propane’s uses in many waysthroughout the year— from water heating to back-up power. In fact, one of the new TV commercials, Dream House, touted the benefits of tankless water heaters while another ad,Nervous Wreck, showed consumers how a propane stand-by generator can provide peaceof mind when the power goes out.
For the second consecutive year, the campaign recorded an all-time high—74 percent of the target audience recalled seeing the propane ads. In addition, a record number of people visited usepropane.com and searched the Find a Propane Retailer database on the website.
In 2006, working closely with members of the Council and the Consumer EducationAdvisory Committee (CEAC), PERC also ramped up its outreach to builders, developers,architects, and HVAC professionals as well as manufacturers and retailers in themanufactured housing industry.
Key to the success of the industry’s national campaign is the involvement of the industry.For the sixth consecutive year, many states continued their outreach to consumers withthe help of matching media placement funds through the Consumer Education Partnershipwith States Program. In addition, states and marketers turned to the Propane MarketingResource Center (MaRC) for a variety of collateral materials to help align local efforts withthe national campaign.
safe ty & t ra in ing / page 6
Grants
11959 Propane Education & Research Council2006 Propane Emergencies Activities$155,000
11984 Texas A&MPropane Incident Data Collection Communications Plan$14,100
11990 Propane Education & Research CouncilCabinet Heater Task Force Initial Funds$7,500
11991 Propane Education & Research CouncilComposite Cylinder Task Force Initial Funds$7,500
11509 Next Tier ConceptsChange Order for CETP E-Learning$465,000
12050 Presidential GrantSpanish Translation of Consumer Safety Education Materials$2,500
12051 Propane Emergencies ProgramCabinet Heater Communications Plan – Phase 1$19,500
12052 Propane Emergencies ProgramComposite Cylinder / Fire Service Education$14,500
12062 EnergeticsContent Management System: Needs AssessmentPhase 1$10,000
12080 Logica3 Ltd.Development of Consumer Emergency PreparednessFact Sheets$227,000
12081 Harris InteractiveResearch Project: Do-It-Yourselfer Safety Research$86,900
12166 Propane Education & Research Council2007 STAC Oversight$89,000
12205 Propane Education & Research CouncilCabinet Heater/ Fire Service Outreach Phase II$165,000
12206 National Propane Gas AssociationS&T Online Resource – 2007 Hosting and Support$50,000
12187 Porter Novelli2007 Safe Grilling Campaign$200,000
Safety & TrainingThe propane industry’s commitment to safety and training reached a milestone in 2006 withthe release of the Certified Employee Training Program (CETP) E-Learning DVD “BasicPrinciples & Practices,” the first of three CETP E-Learning initiatives to increase trainingefficiencies and effectiveness. This computer-based program allows companies to providetraining and continued education anytime, anyplace and at lower costs. The program can alsoserve as a companion to traditional classroom training and allows propane companies to linkdirectly to the National Propane Gas Association’s online CETP Certification Test.
In 2006, the GAS Check™ inspection program was revised to clearly define what a GasCheck is and what a Gas Check is not. It offers two types of inspections: (1) A “Gas SystemCheck” can be completed on the gas delivery system, including the containers, regulators,and appurtenances; and (2) A “Gas Appliance System Check” can be completed on both thegas delivery system and all propane appliances. The program also includes a CETP crossreference document.
The propane industry continued to demonstrate its commitment to the safety and well-being of the U.S. emergency response community. The new Propane Emergencies third editiontextbook provides new information on technologies such as composite cylinders. A revisedaccompanying facilitator’s guide will be available in 2007. Also, the industry developed aConsumer Safety Action Plan, which highlights and prioritizes funding of vital consumer safetyeducation materials and research.
As part of its consumer safety education campaign, PERC translated two of its most popularconsumer safety education materials into Spanish. Also, a new Spanish version of the popularsafe grilling tips bill stuffers was published.
In 2006, the propane industry published a new Operations & Maintenance Handbook to helpmarketers comply with new requirements related to the operations and maintenance (O&M) ofbulk plant and industrial plant LP Gas systems. These requirements were added to the 2001edition of NFPA 58 (The LP Gas Code) and remain in the 2004 edition.
Looking ahead:
Two new CETP E-Learning
books will be released:
“Delivery Basics & Cylinder
Delivery” and “Bobtail Delivery.”
A new Cathodic Protection
Program will be launched.
New consumer safety
education materials will be
developed and distributed,
including a suite of emergency
preparedness brochures that
marketers will be able to upload
on company websites. Also, the
current consumer safety
education campaign will
expand to reach additional
propane consumers and the
builder market.
Safety & Training Advisory Committee: click here to see a list of members.
Grants
11793 Energetics Inc.Provide Technical Communications Support toPERC’s R&D Advisory Committee$145,000
11865 Propane Education & Research CouncilResearch and Development Oversight and AdvisoryCommittee Support$190,000
11956 Propane Education & Research CouncilDistributed Generation Project Development andImplementation 2006$217,760
11957 PERC/University of Illinois – ChicagoStudy of Propane-Fired Gas Cooling Technologies$60,343
11992 Propane Education & Research CouncilRecommended Proper Use of Methanol inControlling Water Freezing in LP Gas$109,000
12070 New West TechnologiesInvestigation of Propane Heaters for NorthernClimate School Bus Applications$45,000
12074 Propane Education & Research CouncilPropane/Solar Hybrid Project for Urban/MunicipalApplications$65,000
12096 BattelleAlternative Materials for Underground PropaneStorage Tank – Phase II$192,000
12100 Propane Education & Research CouncilPropane Industry Component/System TestingProgram Project Management$100,000
12116 Southwest Research InstituteStudy of LPG Deposit Formation Mechanisms andMitigation Methods $701,500
12117 Southwest Research InstituteSensors for LPG Contaminants. Phase I: GasDetection Tube Proof of Concept $66,533
12148 NPGA/BattelleEvaluating Possible Extension of Propane CargoTank Inspection Interval — Phase II$424,000
12199 Climate Energy, LLCClimate Energy Propane Warm Air Micro-CHP System$25,000
12200 Mississippi State UniversityPropane-Fueled Combined Heat and Power (CHP)Systems for Residential Applications$70,000
12201 Iowa State UniversityFeasibility Study of Propane Utilization byTransportation Agencies in Road Construction andMaintenance Applications $15,000
Research & DevelopmentIn 2006, the Research and Development Advisory Committee (RDAC) continued its mission todevelop new, safe, and efficient propane utilization technologies. RDAC supported the followingefforts to help maintain and improve consumer lifestyles and provide Americans with betterenergy choices.
PERC, in conjunction with the World LP Gas Association, hosted the inaugural LP Gas GlobalTechnology Conference (GTC) on October 19-20 in Chicago. The GTC showcased the latestadvancements in residential and commercial propane technology to an international audienceof equipment users, academics, energy experts, and propane marketers. In line with the theme“Technology Driving Growth,” a variety of exciting new inventions and prototypes were displayedduring the conference exhibition. More than 300 members of the global LP Gas communitygathered to discuss propane-fueled technologies and their potential to deliver off-peak salesand growth opportunities in new markets. Much of the technology on display was supportedthrough PERC’s research and development program.
In keeping with its mission to improve productivity, the industry completed a comprehensivestudy on the service-life recommendation for propane vapor regulators. The results showedthat regulator failure rates did not significantly increase until regulator ages were above 25years. Building on the project’s success, the industry will launch an equipment comparisontesting program in 2007 to continue to provide the industry with comparative information onseveral products.
In another effort to provide useful information for the industry, key issues in propane storagewere explored, including testing of the vaporization rates of metallic and composite cylindersto obtain comparable data for market use. Also, PERC studied the feasibility of usingcomposite materials in the construction of underground propane tanks.
Communicating the outcomes of key research and development activities continued tobe a priority. Over the past year, PERC’s R&D website was revamped with fresh content,and the Propane Technology Review (2006 Report) was published and received aDistinguished Technical Communication award from the Society for Technical Com-munication (STC), Washington, D.C. chapter. To view the report or the new website, visitwww.propanecouncil.org/rd.
Looking ahead:
RDAC will focus its thermally
activated technologies activities
on advancing the efficiency and
affordability of propane-fired
gas cooling systems.
The propane industry will work
with marketers, manufacturers,
and standards bodies to develop
independent performance test
data for various components
and systems.
RDAC will continue to focus
research efforts on the
development of composite
underground storage.
research & deve lopment / page 7Research & Development Advisory Committee: click here to see a list of members.
AgricultureThrough its investments in agriculture, PERC continued toward its goal that by 2010the agricultural industry will recognize propane as a preferred energy source offeringexceptional value.
In 2006, PERC launched a project to research innovative technologies that control soilnematodes (parasites that attack crop roots), through steam and heat, without the use ofchemicals. The conventional chemical treatment method used to control these pests, methylbromide, is being phased out in 2007, and farmers will be seeking non-chemical alternatives.Propane-fueled heat has the potential to be an effective method of treatment to replacemethyl bromide. The project is supported by the United States Department of Agriculturethrough a Memorandum of Understanding signed in 2005.
Propane-fueled heat technologies were also tested as a remediation method for pests foundin storage vessels. TEMP-AIR and PERC teamed up to design, build, and test a mobile unitcapable of applying heat in order to treat grain bins prior to the entry of grain. Testing willcontinue in 2007.
A redesigned Batchen Stinger was introduced at the 2006 World Ag Expo, as PERC continuedits work on this innovation that uses steam-quenched combustion to kill weeds in vineyardsand orchards. The Stinger was redesigned using feedback from agriculture producers. In2006 it was displayed at several trade shows and conventions throughout the country,including the Southeastern Trade Show and Convention, and the LP Global TechnologyConference (GTC).
Continuing its communication efforts, the inaugural Global Technology Conference featuredpresentations and papers on PERC-sponsored technologies such as steam weed control,cotton defoliation, poultry house sanitation, and thermal pest remediation.
Looking ahead:
The propane industry will debut
a set of training materials aimed
at operators of mobile propane-
fueled agriculture equipment.
The University of Nebraska
Tractor Testing Laboratory will
test the economics of several
models of propane irrigation
engines and compare them to
similar diesel models.
Communication of propane
technologies on the farm remains
a priority and the industry will
continue its trade show and
media outreach efforts in 2007.
agr icu l ture / page 8
Grants
11872 Propane Education & Research Council2006 Project Development, Oversight, and AdvisoryCommittee Support$99,000
11885 Osborn & Barr Communications2006 Agriculture Outreach and Communications$410,000
11886 California Polytechnic State UniversityDevelopment of Technical Information for Growersfor the Use of Propane for Steaming as anAlternative to Post-Emergence Herbicides $30,500
11958 TEMP-AIRThermal (Pest) Remediation in Grain and Other Ag Structures$183,000
12024 Propane Education & Research CouncilEnd User Training Materials – Phase Two$31,050
12025 Propane Education & Research CouncilCotton Defoliation Testing Logistical Support$12,000
12026 Propane Education & Research CouncilPoultry House Sanitation to Reduce PathogenTransport to Groundwater$35,850
12027 Emmitte AssociatesAnaerobic Digestion Using Propane as a Fuel Supplement$45,000
12028 ADEPTLP Gas Portable Incinerator Study$15,900
12046 New West TechnologiesMid-Atlantic Propane Assisted Biodigester Project$70,000
12048 Kissler MachineElectronic Ignition System for Propane Orchard Heaters$178,400
12049 Nebraska PERCEconomic Analysis and Demonstration of Propane Irrigation Engines$54,514
12138 Osborn & Barr CommunicationsAgricultural Research and TechnologyDemonstrations and Validation $345,000
12139 Osborn & Barr CommunicationsRFD-TV Coverage of the Global TechnologyConference$30,000
12202 University of NebraskaDetermining Biologically Effective Propane Dose forWeed Crop Flaming$101,409
12203 Gas Technology InstituteDevelop & Test a Propane-Fueled Means to ControlSoil Nematodes$342,000
Agriculture Advisory Committee: click here to see a list of members.
Grants
11971 Propane Education & Research CouncilEngine Fuel Coordinating Committee Oversightand Operating Support$95,000
11972 Propane Education & Research Council2006 Engine Fuel Marketing Program$330,000
11973 Propane Education & Research CouncilEngine Fuel Advisory Committee ProfessionalSupport Services$200,000
11942 Roush IndustriesDevelopment of Propane Light Duty Vehicle$1,059,410
11943 Blue Bird CorporationDevelopment and Commercialization of OEMPropane School Bus in 2006$859,494
12144 Propane Education & Research CouncilGovernment Funding Identification and Guide to Implementation$25,000
12143 Propane Education & Research CouncilEngine Fuel Safety Analysis$10,000
12145 Propane Education & Research CouncilMarketing/Outreach Program for Blue Bird School Bus$50,000
12195 Mississippi State UniversityPerformance Evaluation of Propane Injection forDiesel Engines (mobile applications)$75,000
12194 TUG Technologies CorporationTug Technologies Ground Service Equipment Ford 4.2L Engine Development Program$200,000
12190 Cummins Westport IncDevelopment, Demonstration and Commercialization of a 0.2 gram NOx PropaneEngine for Heavy-Duty Vehicles$2,200,000
engine fue l / page 9
Engine FuelIn 2006, the propane industry continued to focus its efforts on the forklift, off-road, and on-roadengine fuel market segments.
The Engine Fuel Advisory Committee (EFAC) developed the Engine Fuel Roadmap in 2005 toguide the propane industry’s engine fuel investments. The industry envisions expandingpropane’s leading alternative fuel position and sales volume through the retention, optimization,and penetration of existing and new market segments.
The forklift market remains one of the primary focus points for EFAC. A comprehensive strategywas defined and has been implemented over the past several years in order to recapture, retain,and expand propane’s role in this market. This approach has helped lead to the steady increasein propane’s forklift market share – 12.5 percent growth in 2005.
Roush Industries is designing and developing a modified production F-150 pickup truck inpartnership with Ford Motor Company. The new F-150 will use liquid propane injection to meetgovernment regulations and customer requirements for a practical vehicle that runs on propanerather than gasoline or diesel fuel. It is estimated that 2,000 gallons of propane will beconsumed annually by each truck.
In 2006, Blue Bird Corporation, in partnership with Powertrain Integration, began developing,testing, and marketing a dedicated propane version of its Vision school bus. This 47-77passenger bus represents the model and size with the largest market potential as identified inPERC’s 2002 study of propane school buses. The bus will feature a liquid propane injection(LPI™) 8.1-liter engine.
Environmental regulations and conventional fuel costs continue to be the drivers for marketdevelopment in the propane commercial mowing segment. Propane commercial mowersrepresent a new market opportunity to increase annual gallons of propane sold. PERC's marketdevelopment program includes the establishment of partnerships with manufacturers tosupport their growth strategy, compilation and distribution of materials to support marketdevelopment, and identification of market drivers (i.e., emissions reductions, conventional fuelprices, fuel storage capabilities, and operational benefits).
PERC continues to work on commercializing propane-powered vehicles and engines andexpects them to demonstrate acceptable performance, durability, reliability, and economiclevels to make them viable alternatives to conventional fuel in the United States.
Looking ahead:
The Engine Fuel Advisory
Committee will create marketing
programs and communications
strategies, and will work with
partners to establish the most
effective and efficient campaigns
to introduce these products to
customers and sell more annual
gallons of propane into engine
fuel markets.
PERC will develop programs to
support its partners with the
Blue Bird school bus, the
Roush F-150 pickup truck, and
Tug Technologies’ propane airport
ground service equipment, as
well as marketing campaigns
supporting the forklift market.
PERC will continue to align with
manufacturers to develop new
and cost-effective engines that
utilize propane to grow engine
fuel markets both on and off road.
Engine Fuel Coordinating Committee: click here to see a list of members.
Industry ProgramsIn 2006, $9,427,635 was available through the State Rebate Program for states to extendthe reach of national programs. Through this program, 20 percent of the national assessmentcollected is available to states for local programs that benefit the entire industry throughsafety and training programs, marketing, and consumer education. A complete list of all staterebates approved and funded in 2006 can be found at the end of this report.
Annually, PERC recognizes the best State Rebate Program of the year with the Milford TherrellAward. The award is based on originality, benefit to the industry, positive public relations for theindustry, involvement of propane marketers in the state, use or leverage of Council-fundedmaterials, and use of the PROPANE Exceptional Energy® brand. In 2006, $25,000 waspresented to the Missouri PERC for its outstanding consumer education media campaign.
The Market Metrics Initiative (MMI) continued its efforts with another return-on-investmentmeasurement as well as additional market metrics that the propane industry can use to guidebusiness decisions. The propane industry’s $27.2 million expenditure in consumer educationactivities from mid-2004 to mid-2005 had a 7.8 percent return on investment and resulted inadding almost 16,000 new homes and 12 million gallons per year of incremental propanesales. The residential market campaign from mid-2001 to mid-2005 resulted in up to 62,000new propane heating customers and added 24 to 46 million gallons per year of incrementalpropane sales. During this time period, PERC’s programs had an 8.7 percent return on atotal $72.8 million investment.
In June 2006, version 4.0 of the Propane Database and Forecasting Model (PDFM) wasreleased. This is one of MMI’s most important end products, providing the industry with aninvaluable strategic marketing and business planning tool. Detailing propane consumptionby sector and application down to the state level, the PDFM forecasts propane demandthrough the end of 2008, including alternative scenarios based on weather patterns,changes to housing starts, and other factors.
In 2006, PERC exhibited at five major trade shows and conferences, providing industrypresentations at each of these events. Staff traveled to 13 state board meetings andconventions to give presentations on various PERC programs. These activities gave PERCthe opportunity to communicate directly with industry members about issues that arerelevant to their companies and customers.
Looking ahead:
The Market Metrics Initiative
will develop another return-on-
investment measurement as
well as update the Propane
Database and Forecasting
Model (PDFM) with county-
level data.
indust ry programs / page 10
Industry Program Grants
11887 Propane Education & Research Council2006 Outreach to the States Strategy$61,750
11888 Propane Education & Research Council2006 Industry Trade Shows and Conventions$272,650
11903 Propane Education & Research Council2006 IT Support (1)$4,000
11940 Propane Education & Research CouncilCapital Action Plan 2$675,000
11969 Propane Education & Research Council2005 Milford Therrell Award$25,000
11970 Propane Education & Research Council2005 NGL Survey$205,000
12035 Propane Education & Research CouncilMarket Metrics Initiative (MMI) 2006 Analysis Cycle$442,530
12147 Propane Education & Research CouncilImpacts on Consumers from Transportation Rate Changes$500,000
Information Technology Grants
11648 Propane Education & Research CouncilInformation Technology: Ongoing Maintenance 2005$97,600
11723 Propane Education & Research CouncilGrants Management System — 2005 Modifications$36,800
11783 Propane Education & Research CouncilIndustry Programs VTR Modifications$50,140
Presidential Grants
12050 Presidential GrantSpanish Translation of Consumer Safety Education Materials$2,500
Approved Rebates
approved rebates / page 11
Docket: 11915 (Consumer Education)Applicant: Pennsylvania PERCShort Title: Water Heater Rebate Program 2006 Amount: $75,000
Docket: 11916 (Consumer Education)Applicant: Pennsylvania PERCShort Title: 2006 Pennsylvania Builders Association Advertisement Amount: $14,250 ($9,500 Rebate / $4,750, Partnership)
Docket: 11917 (Consumer Education)Applicant: Interwest, PERC, Inc.Short Title: Newsletter for Nevada for 2005 and 2006Amount: $12,600
Docket: 11918 (Consumer Education/Safety & Training)Applicant: Arkansas Propane Education & Research Council, Inc.Short Title: Arkansas Propane Gas Association 2005Information Dissemination, Safety and Training Projects Amount: $152,000
Docket: 11919 (Consumer Education)Applicant: Pennsylvania PERCShort Title: PMHA 2006 Trade Show Marketing Program Amount: $60,000
Docket: 11920 (Consumer Education/Safety & Training)Applicant: Texas Propane Educational and Marketing FoundationShort Title: Consumer Safety Tip & Recipe Calendar Amount: $33,000
Docket: 11921 (Consumer Education)Applicant: Texas Propane Educational and Marketing FoundationShort Title: Texas Propane Magazine Amount: $40,000
Docket: 11922 (Consumer Education)Applicant: Texas Propane Educational and Marketing FoundationShort Title: Replicated Rebate Request Propane ExceptionalEnergy Balloon Marketing Program Amount: $105,835.40
Docket: 11923 (Safety & Training)Applicant: Mid-Atlantic PREFShort Title: Propane Training & Education Amount: $110,000
Docket: 11924 (Consumer Education)Applicant: Mid-Atlantic PREFShort Title: Consumer Education & AwarenessAmount: $75,000 ($51,666.67, Rebate / $23,333.33, Partnership)
Docket: 11925 (Safety & Training)Applicant: West Virginia PREFShort Title: Propane Training & Education Amount: $37,000
Docket: 11926 (Safety & Training)Applicant: Propane Education Foundation of IowaShort Title: 2006 Propane Piping Classes Amount: $14,000
Docket: 11927 (Agriculture)Applicant: North Carolina Propane FoundationShort Title: 2006 NC Farm Show Amount: $2,500
Docket: 11931 (Industry Programs)Applicant: South Carolina Propane Education and Research CouncilShort Title: Educational Seminar at 2006 SCPGA Convention Amount: $8,500
Docket: 11932 (Consumer Education)Applicant: Pennsylvania Propane FoundationShort Title: 2006 Radio Campaign Amount: $60,000 ($40,000, Rebate / $20,000, Partnership)
Docket: 11933 (Consumer Education/Safety & Training)Applicant: Pennsylvania Propane FoundationShort Title: 2006 PMHA Five-State Meeting Amount: $5,000
Docket: 11934 (Consumer Education)Applicant: Propane Education Foundation of IowaShort Title: 2005 Football and 2005/2006 Basketball Ads Amount: $4,316.90 ($2,877.94, Rebate / $1,438.96, Partnership)
Docket: 11936 (Consumer Education)Applicant: Interwest PERC, Inc.Short Title: 2006 Albuquerque Log Home & Timber Frame ExpoAmount: $10,000
Docket: 11937 (Consumer Education)Applicant: Interwest PERC, Inc.Short Title: 2006 Oregon Manufactured Home Show Amount: $9,000
Docket: 11938 (Consumer Education)Applicant: Texas Propane Educational and Marketing Foundation Short Title: Replicated Rebate Request Consumer Magazine,Clean Energy LivingAmount: $48,715.50
Docket: 11939 (Consumer Education/Safety & Training)Applicant: MiCAPMOShort Title: 2006 Michigan Market Awareness and Safety Education RebateAmount: $694,530 ($603,363.33, Rebate; $91,166.67, Partnership)
Docket: 11945 (Safety & Training)Applicant: Western Propane Education & Research CouncilShort Title: Propane Emergency Response and HazMat Training (2006)Amount: $112,500
Docket: 11946 (Research & Development)Applicant: Western Propane Education & Research CouncilShort Title: Regulatory Consultant 2006 (LPG Engine and Vehicle Promotion; Air and Energy Agencies Liaison) Amount: $30,000
Docket: 11947 (Safety & Training)Applicant: Western Propane Education & Research CouncilShort Title: Certified Employee Training Program (CETP) 2006 Amount: $25,000
Docket: 11948 (Safety & Training)Applicant: Western Propane Education & Research CouncilShort Title: Fugitive Emission Reduction Program – 2006 Amount: $50,000
Docket: 11949 (Safety & Training)Applicant: Pennsylvania Propane FoundationShort Title: 2006 Education Program Amount: $72,000
Docket: 11950 (Consumer Education)Applicant: Oklahoma Propane Foundation (NREF)Short Title: Continued Improvement Of Propane MagazineWith Circulation To Include All Marketers Amount: $35,000
Docket: 11951 (Safety & Training)Applicant: Interwest PERC, Inc.Short Title: 2006 Colorado Employee Training Amount: $68,837.65
Docket: 11952 (Industry Programs)Applicant: Interwest PERC, Inc.Short Title: 2006 Colorado Energy Assistance Program Amount: $20,000
Docket: 11953 (Safety & Training)Applicant: Minnesota Propane Education & Research CouncilShort Title: Safe Appliance Installation Rebate Program Amount: $350,000
Docket: 11954 (Safety & Training)Applicant: Interwest PERC, Inc.Short Title: 2006 Colorado Fire Service Training Amount: $20,000
Docket: 11955 (Consumer Education)Applicant: Nebraska Propane Education & Research CouncilShort Title: 2006 Nebraska Consumer Education Campaign Amount: $212,617 ($154,173, Rebate / $58,444, Partnership)
Docket: 11960 (Industry Programs)Applicant: Pennsylvania PERCShort Title: Open Conference Speaking Engagement Amount: $2,500
Docket: 11961 (Safety & Training/Industry Programs)Applicant: Pennsylvania PERCShort Title: Charlie Morecraft Speaking Engagement Amount: $11,000
Docket: 11962 (Industry Programs)Applicant: Alabama Propane Gas AssociationShort Title: 2006 Educational Seminar During Convention and Promotional Items Amount: $8,000
APPROVED REBATES
approved rebates / page 12
Docket: 11963 Applicant: South Dakota PERCShort Title: CETP Classroom Training Amount: $75,000
Docket: 11964 (Safety & Training)Applicant: New York PERCShort Title: Education 2006 Amount: $122,985
Docket: 11965 (Consumer Education)Applicant: New York PERCShort Title: Market Development Mixed Media Campaign Amount: $112,500 ($75,500 Rebate / $37,500 Partnership)
Docket: 11966 (Consumer Education)Applicant: New York PERCShort Title: Water Heater Rebates Amount: $64,000
Docket: 11967 (Safety & Training)Applicant: New York PERCShort Title: Emergency Response Amount: $26,330
Docket: 11968 (Safety & Training)Applicant: MO-PERCShort Title: Regulator Rebate Program FY2006Amount: $55,000
Docket: 11975 (Consumer Education)Applicant: Ohio PGAShort Title: FFA Foundation Ohio #2 Amount: $12,000 ($9,666.67 Rebate / $2,333.33 Partnership)
Docket: 11976 (Consumer Education)Applicant: Ohio PGAShort Title: ONN Election night 2005 Amount: $14,400 ($10,400 Rebate / $4,000 Partnership)
Docket: 11977 (Consumer Education)Applicant: Ohio PGAShort Title: Football TV Fiesta Bowl Amount: $1,800 ($1,300 Rebate / $500 Partnership)
Docket: 11978 (Consumer Education)Applicant: Ohio PGAShort Title: Basketball Tournament Radio Amount: $1,560 ($1,126.67 Rebate / $433.33 Partnership)
Docket: 11979 (Consumer Education)Applicant: Ohio PGAShort Title: RFD News #5 Amount: $20,894.98 ($15,090.82 Rebate / $5,804.16 Partnership)
Docket: 11980 (Consumer Education)Applicant: Ohio PGAShort Title: Country Journal #3 Amount: $20,000 ($14,666.67 Rebate / $5,333.33 Partnership)
Docket: 11981 (Consumer Education)Applicant: Ohio PGAShort Title: Farm Progress Ads #5 Amount: $36,066 ($26,310.33 Rebate / $9,755.67 Partnership)
Docket: 11982 (Consumer Education)Applicant: Ohio PGAShort Title: Ohio State Fair #3 Amount: $30,000 ($22,000 Rebate / $8,000 Partnership)
Docket: 11983 (Consumer Education)Applicant: Ohio PGAShort Title: Ohio Manufactured Housing Association Magazine Ads #7 Amount: $3,500 ($2,672 Rebate / $828 Partnership)
Docket: 11985 (Consumer Education)Applicant: Texas Propane Educational & Marketing FoundationShort Title: Texas Propane Public Service Announcement Amount: $110,000
Docket: 11986 (Industry Programs)Applicant: MiCAPMOShort Title: Propane Awareness Program 2006Amount: $13,200
Docket: 11993 (Industry Programs)Applicant: Ohio PGAShort Title: Reimbursement of D&O insurance Amount Requested: $1,285
Docket: 11994 (Industry Programs)Applicant: North Dakota PGAShort Title: Foundation 501c3 status Amount: $5,000
Docket: 11995 (Safety & Training)Applicant: North Dakota PGAShort Title: Safety & Training seminar and reduce CETP registration Amount: $60,000
Docket: 11996 (Consumer Education)Applicant: North Dakota PGAShort Title: North Dakota Statewide Newspaper Campaign Amount: $82,350 ($54,900 Rebate / $27,450 Partnership)
Docket: 11997 (Industry Programs)Applicant: New Jersey PGAShort Title: Filing of IRS Tax Form 990 Amount: $3,000
Docket: 11998 (Industry Programs)Applicant: New Jersey PGAShort Title: Insurance Amount: $5,000
Docket: 11999 (Consumer Education)Applicant: New Jersey PGAShort Title: NJ 2006 Penn State Radio Campaign Amount: $3,725 ($2,725 Rebate / $1,000 Partnership)
Docket: 12000 (Safety & Training)Applicant: Propane Gas Association of New EnglandShort Title: PGAM Certified Employee Training Program & OQ 2006 Amount: $92,755.88
Docket: 12001 (Agriculture)Applicant: Western PGAShort Title: World Ag Expo (Farm Show) 2006 Amount: $14,994
Docket: 12002 (Industry Programs)Applicant: PMA KansasShort Title: Midwest Contractors (PHCC) – Expo 2006 Amount: $6,700
Docket: 12003 (Agriculture)Applicant: PMA KansasShort Title: 3i Show Agriculture Show Amount: $12,350 ($11,690 Rebate / $660 Partnership)
Docket: 12004 (Consumer Education)Applicant: Minnesota PERCShort Title: 2006 Consumer Education CampaignAmount: $51,000 (Partnership only)
Docket: 12005 (Consumer Education)Applicant: Pennsylvania PERCShort Title: 2006 Supplemental Radio CampaignAmount: $12,250 ($8,250 Rebate / $4,000 Partnership)
Docket: 12006 (Safety & Training)Applicant: South Carolina PERCShort Title: 2006 CETP Educational TrainingAmount: $29,500
Docket: 12007 (Safety & Training)Applicant: South Carolina PERCShort Title: 2006 Fire Safety Analysis TrainingAmount: $5,000
Docket: 12008 (Safety & Training)Applicant: Illinois Propane Gas AssociationShort Title: Certified Employee Training Program 2006 Amount: $110,000
Docket: 12009 (Safety & Training)Applicant: Illinois Propane Gas AssociationShort Title: Continuing Education/District Safety Meetings 2006 Amount: $116,000
Docket: 12010 (Consumer Education)Applicant: Illinois Propane Gas AssociationShort Title: Radio and Print Consumer Awareness 2006Amount: $47,910 ($31,940 Rebate / $15,970 Partnership)
Docket: 12011 (Industry Programs)Applicant: AZ/NW/Rocky Mt/NM PGAs/Interwest PERCShort Title: 2006 Portland and Seattle/Tacoma Log Home & Timber Frame Expos Amount: $20,000 (100% allocation to Washington)
approved rebates / page 13
Docket: 12013 (Consumer Education)Applicant: Oklahoma PGAShort Title: Radio Advertising with Consumer Education Partnership Amount: $6,728 ($4,486 Rebate / $2,242 Partnership)
Docket: 12014 (Safety & Training)Applicant: Oklahoma PGAShort Title: Oklahoma-Arkansas Safety Training and Annual Conference Amount: $7,000
Docket: 12015 (Safety & Training)Applicant: Tennessee PERCShort Title: 2006 Educational Training Amount: $58,000
Docket: 12016 (Safety & Training)Applicant: Propane Education Foundation of IowaShort Title: Crisis Media Training Amount: $6,875
Docket: 12017 (Consumer Education)Applicant: Propane Education Foundation of IowaShort Title: Post Season 2006 Basketball Ads Amount: $6,016.92 ($4,011.28 Rebate / $2,005.64 Partnership)
Docket: 12018 (Consumer Education)Applicant: Propane Education Foundation of IowaShort Title: Iowa Beef Council/ Iowa Propane GasAssociation/WHO Radio Grilling Campaign Amount: $1,300 ($1,000 Rebate / $300 Partnership)
Docket: 12019 (Agriculture)Applicant: Propane Education Foundation of IowaShort Title: 2006 Farm Progress Show 9 Amount: $12,000 ($10,559.82 Rebate / $1,440.18 Partnership)
Docket: 12020 (Industry Programs)Applicant: Propane Education Foundation of IowaShort Title: Reimbursement Request: SE Convention Amount: $1,084.65
Docket: 12021 (Industry Programs)Applicant: New York PERCShort Title: Seminar: Efficient Bobtail Operations Amount: $2,500
Docket: 12012 (Industry Programs)Applicant: AZ/NW/Rocky Mt/NM PGAs/Interwest PERCShort Title: 2006 Rodeo de Santa Fe Sponsorship Training Amount: $30,000
Docket: 12021 (Industry Programs)Applicant: New York PERCShort Title: Seminar: Efficient Bobtail Operations Amount: $2,500
Docket: 12022 (Consumer Education)Applicant: Propane Education Foundation of IowaShort Title: 2005 Football and 2005/2006 Basketball Ads Amount: $500 ($333.34 Rebate / $166.66 Partnership)
Docket: 12126 (Consumer Education)Applicant: Texas PEMFShort Title: “Propane Exceptional Energy” Bulk Storage TankOutdoor AdvertisingAmount: $47,300
Docket: 12127 (Safety and Training)Applicant: Texas PEMFShort Title: Duty to Warn ProjectAmount: $88,661.11
Docket: 12029 (Safety & Training)Applicant: Propane Education Foundation of IowaShort Title: 2006 Hazmat Classes Amount: $2,750
Docket: 12031 (Consumer Education)Applicant: Alabama Propane Gas AssociationShort Title: 2005 – 2006 Consumer Education Campaign Amount: $135,466.99 ($75,000 Rebate / $60,466.99 Partnership)
Docket: 12032 (Industry Programs)Applicant: North Dakota Propane Gas FoundationShort Title: Filing of IRS Tax Form 990 (replicates # 10993)Amount: $687.52
Docket: 12033 (Safety & Training)Applicant: Virginia Propane Education and Research FoundationShort Title: VAPGA Safety Training and Education 2005Amount: $39,000
Docket: 12034 (Consumer Education)Applicant: Virginia Propane Education and Research FoundationShort Title: VAPGA Consumer Education CampaignAmount: $22,212 ($14,808 Rebate / $7,404 Partnership)
Docket: 12036 (Industry Programs)Applicant: South Carolina Propane Education and Research FoundationShort Title: Southeastern Convention Amount: $736.75
Docket: 12037 (Industry Programs)Applicant: Propane Education Foundation of IowaShort Title: 2005 Audit and IRS Form 990 Amount: $2,200
Docket: 12038 (Industry Programs)Applicant: Pennsylvania Propane Education and Research FoundationShort Title: Web Site Hosting and Maintenance Amount: $3,450
Docket: 12039 (Consumer Education)Applicant: Interwest Propane Education and Research Council (Utah)Short Title: 2006 Consumer Awareness Project Amount: $6,500
Docket: 12040 (Safety & Training)Applicant: Interwest Propane Education and Research Council (Arizona)Short Title: 2006 Arizona Training Classes Amount: $37,860
Docket: 12041 (Consumer Education)Applicant: Interwest Propane Education and Research Council (Arizona)Short Title: Arizona Propane Awareness Program Amount: $20,000
Docket: 12042 (Consumer Education)Applicant: Propane Education Foundation of IowaShort Title: Propane Piping Class (Replicates # 11680)Amount: $1,280.85
Docket: 12043 (Safety & Training) Applicant: Western PGAShort Title: Emergency Response Program – Training Prop RepairAmount: $4,902.51
Docket: 12047 (Industry Programs)Applicant: Propane Education Foundation of IowaShort Title: 2006 Farm Progress Show Amount: $6,000
Docket: 12053 (Safety & Training)Applicant: Interwest PERC (New Mexico)Short Title: 2006 New Mexico Training Classes Amount: $37,335
Docket: 12054 (Industry Programs)Applicant: Interwest PERC (New Mexico)Short Title: New Mexico Water Heater Rebate Program 2006Amount: $68,000
Docket: 12055 (Consumer Education)Applicant: Interwest PERC (Oregon & Washington)Short Title: Northwest Partnership Advertising Program 2006Amount: $97,242 ($66,494.67 Rebate / $30,747.33 Partnership)
Docket: 12056 (Industry Programs)Applicant: Interwest PERC (Arizona)Short Title: Educational Seminar at 2006 Arizona PGA Annual Meeting Amount: $6,250
Docket: 12057 (Industry Programs)Applicant: Colorado, New Mexico, & Nebraska PGA’sShort Title: Educational Seminar at 2006 Mountain Plains Propane Convention Amount: $12,600
Docket: 12058 (Industry Programs)Applicant: Alabama PGAShort Title: Operating Expenses Amount: $650
Docket: 12059 (Safety & Training)Applicant: Minnesota PERCShort Title: Propane Emergencies 2006 Amount: $20,000
APPROVED REBATES
approved rebates / page 14
Docket: 12060 (Consumer Education)Applicant: Ohio PGAShort Title: Ohio Farm Radio/Fairs #2 Amount: $24,000 ($16,000 Rebate / $8,000 Partnership)
Docket: 12061 (Industry Programs)Applicant: Pennsylvania PGAShort Title: Personal Liability Insurance Amount: $1,489
Docket: 12063 (Industry Programs)Applicant: Western PERC Short Title: Auditing/Filing of IRS Tax Form 990 Amount: $2,830
Docket: 12064 (Industry Programs)Applicant: Western PERCShort Title: D&O Insurance for 2006-07 Amount: $1,562
Docket: 12065 (Consumer Education)Applicant: Oklahoma PGAShort Title: Radio Advertising with Consumer Education Partnership Amount: $192,000 ($128,000 Rebate / $64,000 Partnership)
Docket: 12066 (Consumer Education)Applicant: Louisiana PGAShort Title: Spring 2006 Radio & TV Campaign Amount: $387,219 ($365,519 Rebate / $21,700 Partnership)
Docket: 12067 (Consumer Education)Applicant: Propane Education Foundation of IowaShort Title: 2006 Football & 06/07 Basketball Ads Amount: $128,327 ($89,440 Rebate / $38,887 Partnership)
Docket: 12068 (Consumer Education)Applicant: Wisconsin PERCShort Title: Outdoor Advertising 2007 Amount: $60,000 ($40,000 Rebate / $20,000 Partnership)
Docket: 12071 (Industry Programs)Applicant: Propane Education Foundation of IowaShort Title: Payment by Council for Operating Costs Amount: $2,427.13
Docket: 12072 (Consumer Education)Applicant: Kentucky PERCShort Title: Coordinated Consumer Education/AwarenessCampaign 2005-2006 Amount: $78,500 ($27,750 Rebate / $50,750 Partnership)
Docket: 12073 (Consumer Education)Applicant: Pennsylvania PERCShort Title: PMHA Advertising Publications 2006 Amount: $3,100 ($2,100 Rebate / $1,000 Partnership)
Docket: 12075 (Consumer Education/Industry Programs)Applicant: Propane Education Foundation of IowaShort Title: Newsletter Amount: $21,000 ($15,000 Rebate / $6,000 Partnership)
Docket: 12076 (Safety & Training)Applicant: Interwest PERCShort Title: 2006 Northwest Employee Training Amount: $69,800
Docket: 12077 (Consumer Education)Applicant: Interwest PERC (Washington)Short Title: 2006 Northwest Builders Show Amount: $10,000
Docket: 12078 (Safety & Training)Applicant: Interwest PERCShort Title: 2006 Rocky Mountain Employee Training Amount: $89,140
Docket: 12079 (Industry Programs)Applicant: North Dakota PGAShort Title: Reimbursement for Preparation of IRS Forms for North Dakota PGA Amount: $683.33
Docket: 12082 (Industry Programs)Applicant: New York PERCShort Title: NYPGA Membership Drive Amount: $2,700
Docket: 12083 (Industry Programs)Applicant: New York PERCShort Title: Northeast Pipeline Newsletter Amount: $8,500
Docket: 12084 (Industry Programs)Applicant: Minnesota PERCShort Title: State Fair Improvements Amount: $19,882
Docket: 12085 (Consumer Education)Applicant: Wisconsin PERCShort Title: Wisconsin Badger Builder Magazine Campaign for 2007 Amount: $6,600 ($4,400 Rebate / $2,200 Partnership)
Docket: 12086 (Consumer Education)Applicant: Tennessee PERCShort Title: TN PERC 2006 Advertising Project Amount: $124,624 ($88,900 Rebate / $35,724 Partnership)
Docket: 12087 (Industry Programs)Applicant: Tennessee PERCShort Title: 2006 Educational Seminar During ConventionAmount: $8,000
Docket: 12088 (Consumer Education)Applicant: PMA KansasShort Title: Consumer Education & Awareness RegionalCampaign 06-07 Amount: $75,710 ($52,894 Rebate / $22,816 Partnership)
Docket: 12089 (Consumer Education)Applicant: PMA KansasShort Title: Huff’n Puff Hot Air Balloon Festival Promotion 2006Amount: $19,800 ($13,800 Rebate / $6,000 Partnership)
Docket: 12090 (Industry Programs)Applicant: New Jersey PERCShort Title: NJ Speaking Engagement Amount: $2,500
Docket: 12091 (Consumer Education)Applicant: Iowa Propane Education FoundationShort Title: Consumer Education Campaign Amount: $75,000
Docket: 12092 (Consumer Education)Applicant: Mississippi PERCShort Title: Advertising on Miss. State, Ole Miss, & Miss. Southern Baseball GamesAmount: $21,900
Docket: 12093 (Consumer Education)Applicant: Ohio PERCShort Title: Football TV #11 Amount: $48,000 ($34,666.67 Rebate / $13,333.33 Partnership)
Docket: 12094 (Consumer Education)Applicant: Ohio PERCShort Title: Basketball TV #2 Amount: $60,000 ($43,333.34 Rebate / $16,666.66 Partnership)
Docket: 12095 (Consumer Education)Applicant: Virginia PREFShort Title: 2006-2007 VAPGA Consumer Education Campaign Amount: $99,366 ($67,077 Rebate / $32,289 Partnership)
Docket: 12097 (Industry Programs/Agriculture)Applicant: Western PERC (California)Short Title: World Ag Expo 2007 Amount: $15,000
Docket: 12098 (Industry Programs/Engine Fuel)Applicant: Western PERC (California)Short Title: Regulatory Consultant 2007 Amount: $30,000
Docket: 12099 (Safety & Training)Applicant: Western PERC (California)Short Title: Propane Emergency Response & HazMat Training 2007Amount: $122,500
Docket: 12101 (Consumer Education)Applicant: Interwest PERC (Arizona)Short Title: Arizona Consumer Education Partnership Program Amount: $19,800 ($13,200 Rebate / $6,600 Partnership)
Docket: 12102 (Consumer Education)Applicant: Interwest PERC (Utah)Short Title: 2006 Utah Consumer Awareness Partnership Program Amount: $32,100 ($22,100 Rebate / $10,000 Partnership)
Docket: 12103 (Industry Programs)Applicant: Mississippi PERCShort Title: Annual Web Page Hosting Amount: $4,481.37
APPROVED REBATES
approved rebates / page 15
Docket: 12104 (Consumer Education)Applicant: Wisconsin PERCShort Title: Advertising Campaign 2007 Amount: $130,500 ($87,000 Rebate / $43,500 Partnership)
Docket: 12105 (Consumer Education)Applicant: Minnesota PERCShort Title: 2007 Consumer Education Campaign Amount: $70,000 Partnership
Docket: 12106 (Consumer Education)Applicant: Georgia PERCShort Title: GPGA/PERC Promotion in State Magazine & Directory Amount: $13,500 ($11,000 Rebate / $2,500 Partnership)
Docket: 12107 (Safety & Training)Applicant: Georgia PERCShort Title: Education/Training for Georgia Propane Industry Workers Amount: $55,000
Docket: 12108 (Consumer Education)Applicant: Georgia PERCShort Title: Sunbelt Expo Amount Requested: $25,000 ($16,414 Rebate / $8,586 Partnership)
Docket: 12109 (Industry Programs) Applicant: Georgia PERCShort Title: 2005 Education Seminar – Market Trends Amount: $15,000
Docket: 12110 (Industry Programs)Applicant: Propane Foundation of KansasShort Title: Buy Kansas Expo 2006 Amount: $4,100
Docket: 12111 (Consumer Education/Industry Programs)Applicant: Propane Foundation of KansasShort Title: Kansas State Fair Sponsorship 2006 Amount: $22,000 ($20,000 Rebate / $2,000 Partnership)
Docket: 12112 (Consumer Education)Applicant: Georgia PERCShort Title: Advertising in Georgia Builder Magazine Amount: $30,000 ($22,000 Rebate / $8,000 Partnership)
Docket: 12113 (Consumer Education)Applicant: Illinois PERCShort Title: Consumer Awareness 2007 – Radio Amount: $45,470 ($32,470 Rebate / $13,000 Partnership)
Docket: 12114 (Industry Programs)Applicant: New York PERCShort Title: Statewide Public Relations Awareness & Training Campaign Amount: $35,600
Docket: 12115 (Industry Programs)Applicant: New York PERCShort Title: Water Heater and/or Home Heating System Rebates Amount: $7,825
Docket: 12118 (Consumer Education)Applicant: New York PERCShort Title: 2007 Mixed Media Awareness Campaign Amount: $205,000 ($136,661 Rebate / $68,339 Partnership)
Docket: 12119 (Consumer Education)Applicant: North Carolina PERCShort Title: Radio Advertising Package Amount: $112,500 ($75,000 Rebate / $37,500 Partnership)
Docket: 12120 (Industry Programs)Applicant: Ohio PERCShort Title: Ohio Energy Project #3 Amount: $20,000
Docket: 12121 (Agriculture; Industry Programs)Applicant: Ohio PERCShort Title: Farm Science Review #7 Amount: $20,000
Docket: 12122 (Safety & Training)Applicant: Ohio PERCShort Title: CETP #9 Amount: $48,000
Docket: 12123 (Safety & Training)Applicant: AZ/NW/Rocky Mt/NM PGAs/Interwest PERCShort Title: 2006 Wildfire Brochure Amount: $7,647.24
Docket: 12124 (Consumer Education)Applicant: Western PGAShort Title: Consumer Education Partnership with States Program Amount: $178,500 ($119,000 Rebate / $59,500 Partnership)
Docket: 12125 (Consumer Education)Applicant: Texas PEMFShort Title: Energy Guys TV Campaign Amount: $345,062.54 ($236.409.88 Rebate / $108,652.66 Partnership)
Docket: 12128 (Industry Programs)Applicant: Mississippi PERCShort Title: Propane Exceptional Energy Advertising in Propane Prophets Amount: $10,800
Docket: 12129 (Consumer Education)Applicant: South Carolina PERCShort Title: 2006 Consumer Education and Marketing Amount: $78,500 ($53,500 Rebate / $25,000 Partnership)
Docket: 12130 (Industry Programs)Applicant: South Carolina PERCShort Title: 2006 Publication of SCPGA News MagazineAmount: $10,000
Docket: 12131 (Consumer Education/Industry Programs)Applicant: South Carolina PERCShort Title: Sponsorship of Carolina Q Cup Amount: $5,000
Docket: 12132 (Industry Programs)Applicant: South Carolina PERCShort Title: Promotional Materials Amount: $5,000
Docket: 12135 (Consumer Education)Applicant: Ohio PERCShort Title: Basketball TV #3 Amount: $60,000 ($43,333.34 Rebate / $16,666.66 Partnership)
Docket: 12136 (Consumer Education)Applicant: Ohio PERCShort Title: Football TV #11 Amount: $48,000 ($34,666.67 Rebate / $13,333.33 Partnership)
Docket: 12137 (Consumer Education)Applicant: Missouri PERCShort Title: FY2007 Media Campaign Amount: $400,000 ($200,000 Rebate / 200,000 Partnership)
Docket: 12140 (Industry Programs/Consumer Education)Applicant: Texas PEMF Short Title: Consumer Safety Tip & Recipe Calendar Amount: $33,000
Docket: 12141 (Consumer Education)Applicant: Texas PEMFShort Title: Replicated Rebate Request Texas Propane MagazineAmount Requested: $37,400
Docket: 12142 (Consumer Education)Applicant: Texas PEMFShort Title: Replicated Rebate Request Propane ExceptionalEnergy Balloon Marketing ProgramAmount: $85,272
Docket: 12151 (Safety & Training)Applicant: PEF IowaShort Title: LIHEAP Project Amount: $1,600
Docket: 12152 (Consumer Education)Applicant: New York PERCShort Title: Manufactured Housing PromotionsAmount: $3,000
Docket: 12153 (Industry Programs)Applicant: New York PERCShort Title: Website EnhancementsAmount: $2,500
Docket: 12154 (Industry Programs)Applicant: New York PERCShort Title: Operating Expenses – PERC NYAmount: $1,490
Docket: 12155 (Consumer Education)Applicant: North Carolina PERCShort Title: 2007 Advertising Package 1 Amount: $15,800 ($10,533.34 Rebate / $5,266.66 Partnership)
APPROVED REBATES
approved rebates / page 16
Docket: 12156 (Agriculture)Applicant: North Carolina PERCShort Title: 2007 NC Farm Show Amount: $3,000
Docket: 12157 (Safety & Training)Applicant: North Carolina PERCShort Title: 2007 Education Package Amount: $135,000
Docket: 12158 (Engine Fuel)Applicant: Western PERCShort Title: Fugitive Emission Reduction Program 2007Amount: $50,000
Docket: 12159 (Safety & Training)Applicant: Western PERCShort Title: Certified Employee Training Program (CETP) 2007Amount: $30,000
Docket: 12160 (Safety & Training)Applicant: Wisconsin PERCShort Title: Regional Safety & Training, includingCETP 2007Amount: $228,575
Docket: 12161 (Safety & Training)Applicant: Wisconsin PERCShort Title: Propane Emergencies Onsite Training 2007Amount: $31,000
Docket: 12162 (Consumer Education)Applicant: Florida PGSERCShort Title: 2006-07 Florida Propane Industry Research,Sales Promotion, Training and Marketing Continuation PlanAmount: $552,619
Docket: 12163 (Safety & Training)Applicant: Kentucky PERCShort Title: 2007 Certified Employee Training ProgramAmount: $51,660
Docket: 12164 (Safety & Training)Applicant: Interwest PERC (Arizona)Short Title: 2007 Arizona training classesAmount: $61,745
Docket: 12165 (Safety & Training)Applicant: Kentucky PERCShort Title: Propane Emergency Training Program 2006-2007Amount: $40,000
Docket: 12167 (Industry Programs)Applicant: Pennsylvania PERCShort Title: Filing of IRS Tax Form 990Amount: $1,150
Docket: 12168 (Industry Programs)Applicant: Pennsylvania PERCShort Title: Operating Expenses – Foundation Bylaws RevisionsAmount: $1,445
Docket: 12169 (Industry Programs)Applicant: Interwest PERC (Colorado)Short Title: 2006 Denver Log Home & Timber Frame ExpoAmount: $10,000
Docket: 12181 (Industry Programs)Applicant: Interwest PERC (Montana)Short Title: 2006 Montana Energy ShareAmount: $22,000
Docket: 12182 (Consumer Education)Applicant: Mid Atlantic PREFShort Title: 2007 Outdoor AdvertisingAmount: $50,000
Docket: 12183 (Industry Programs)Applicant: Mid Atlantic PREFShort Title: 2007 Allied Industries Trade ShowsAmount: $25,000
Docket: 12184 (Safety & Training)Applicant: Mid Atlantic PREFShort Title: Propane Training & EducationAmount: $150,000
Docket: 12185 (Safety & Training)Applicant: West Virginia PREFShort Title: Propane Training & EducationAmount: $70,000
Docket: 12191 (Industry Programs)Applicant: North Carolina PERFShort Title: Audit Fees for NC Propane FoundationAmount: $845
Docket: 12192 (Industry Programs)Applicant: Interwest PERC (Idaho)Short Title: Idaho Water Heater Rebate Program 2007Amount: $68,000
Docket: 12193 (Safety & Training)Applicant: PEF AlabamaShort Title: Educational Training Facility – Part 2Amount: $67,250
APPROVED REBATES
Years ended December 31, 2006 2005ASSETS
Current Assets
Cash and cash equivalents $ 10,018,592 $ 2,931,492Accounts receivable 34,452 3,969Investments, current portion 4,064,123 6,500,763Assessments receivable 6,881,000 7,863,000Inventory 941,725 557,596Other assets 732,535 413,300
Total Current Assets 22,672,427 18,270,120
Property and Equipment
Office equipment 100,682 76,825Office furniture 142,446 142,446Computer equipment 1,612,774 1,339,616Leasehold improvements 76,571 76,571Less: accumulated depreciation (1,509,968) (1,252,652)
Total Property and Equipment, Net 422,505 382,806
Other Assets
Other 45,635 35,635Investments, net of current portion 9,969,139 11,078,059
Total Other Assets 10,014,774 11,113,694
Total Assets $33,109,706 $29,766,620
LIABILITIES AND NET ASSETS
Current Liabilities
Accrued expenses $ 3,815,850 $ 2,236,882State rebate obligation 6,379,876 5,208,826
Total Current Liabilities 10,195,726 7,445,708
Net Assets
Undesignated 5,080,372 5,384,833Designated 17,833,608 16,936,079
Total Net Assets 22,913,980 22,320,912
Total Liabilities and Net Assets $33,109,706 $29,766,620
f inanc ia l s ta tements / page 17
STATEMENT OF FINANCIAL POSITION
*Management Note: In 2006, new information technology expenses of approximately $550,000, directly related to Programs, were included inAdminstrative costs. In 2007 and each year thereafter, these costs will be classified under program expenses.
Years ended December 31, 2006 2005
Revenue and Support
Assessment revenue $ 44,710,407 $ 46,126,845Less: State rebates (9,427,635) (9,225,369)Net assessment revenue 35,282,772 36,901,476Investment income 1,300,989 590,240Other gain (loss) 3,427 (46,286)
Total Revenue and Support 36,587,188 37,445,430
Expenses
ProgramsConsumer education and communication 21,536,412 23,257,184Safety & training 3,511,556 4,758,817Research & development 2,263,341 2,978,358Engine fuel 1,389,495 naIndustry 1,801,395 1,064,749Agriculture 1,610,350 2,216,196
Total program expenses 32,112,549 34,275,304
General and Administrative
*Administrative costs 3,450,323 2,446,020Collection costs 259,750 175,364Depreciation 171,498 209,160
Total General and Administrative Expenses 3,881,571 2,830,544
Total expenses 35,994,120 37,105,848
Changes in net assets 593,068 339,582
Net assets at beginning of year 22,320,912 21,981,330
Net assets at end of year 22,913,980 22,320,912
The Propane Education & Research Council’s (PERC) 2006 financial statements were audited and found in conformance with generally acceptedaccounting principles (GAAP) in an unqualified opinion issued by Aronson and Company, of Rockville, MD. To request a copy of this report, contactPERC in writing at 1140 Connecticut Avenue, NW, Suite 1075, Washington, DC 20036.
f inanc ia l s ta tements / page 18
STATEMENT OF ACTIVITIES & CHANGES IN NET ASSETS
2007 OperatingExpenditure BudgetTotal Budget $49,013,000
State Rebates 18.2%
Engine Fuels 5.6%
Agriculture 3.8%Industry Programs 4.8%
Safety & Training 6.7%
Research & Development 6.0%
Information Technology 1.2%Administrative 5.8%
Program Labor 2.5%Other Expenses 1.3%
Consumer Education 44.1%
Roy W. Willis President and Chief Executive Officer
Kate Hutcheons-Caskin Senior Vice President
James Harris Chief Financial Officer and Vice Presidentof Administration
Kay Howell Chief Information Officer
Stuart Flatow Vice President, Safety & Training
Brian J. Feehan Managing Director, Engine Fuel Programs
Tracy Burleson Director, Residential Trade Outreach andPartnerships
Martha Evans Director of Industry Programs
Gregory Kerr Director of Research & Development
Mark Leitman Director of Agriculture Programs
Alicia Dunn Manager, Fulfillment Program
Anna W. Gaboton Meetings Manager
Courtney Gendron Certified Employee Training ProgramManager
Kelly Harris Programs Manager
Debbie Hodges Editorial & Publications Manager
John L. Kerekes Contracts Manager
Theresa Ryan Office Manager/Executive Assistant to the President
Ambrose Walker Database Manager
Sandra Loi Projects Coordinator
Brandon Robinson Projects Coordinator
Grace Willis Projects Coordinator
Jeremy Wishart Industry Programs Coordinator
Amanda Stone Executive Assistant to the Senior VicePresident
Vincent Sibilia Administrative Assistant
Kaitlin Hoover Administrative Assistant
Dominique Marshall Office Assistant
Propane Education & Research Council1140 Connecticut Avenue, Suite 1075 Washington, DC 20036
Tel 202-452-8975Fax 202-452-9054
www.propanecouncil.orgwww.usepropane.com
PERC Staff