growth through innovation propane … report 2009 growth through innovation propane education &...

ANNUAL REPORT 2009

PROPANE EDUCATION & RESEARCH COUNCILGROWTH THROUGH INNOVATION

AN UNRESTRICTED COMMITMENT TO SERVICE.

LETTER FROM THE CHAIRMAN & THE PRESIDENT

External forces are a fact of life in the energy business. Many of the factors that influence

propane sales — unpredictable weather, changing customer preferences, shifting political

priorities — are outside producers’ and marketers’ control. As we discovered this year, it is not

just individual businesses but even programs at the industry level that we otherwise count on

for long-term direction and stability that can be subject to unexpected external forces.

We are referring, of course, to the August 2009 notification from the Commerce Department

restricting the Council’s activities to matters of research and development, training, and

safety. This restriction resulted from Commerce’s finding in its most recent price analysis that

the price of propane compared with a basket of other consumer energy prices exceeds the

threshold established under the Propane Education and Research Act of 1996, the legislation

that authorized creation of the Propane Education & Research Council. In response to the

notice, staff members moved immediately to identify and end such predominantly educational

programs as the new Do More, Emit Less residential advertising campaign, the National Energy

Conversation, and certain education programs in agriculture and engine fuel.

We believe Commerce could have avoided this severe and unnecessary action by modifying

its price analysis method as PERC has repeatedly urged. The calculation method PERC

recommended would have allowed officials at the Commerce Department to reach a finding that

complied with the letter and the spirit of the law without causing a costly restriction. They chose

not do so, despite their finding twice in earlier studies that PERC programs were not the cause

of higher propane prices. Everybody, including Commerce, knows that propane price increases

in recent years resulted from the unprecedented run-up in oil prices, not from PERC activities.

The restriction is particularly frustrating because the need for a public education initiative on

propane has never been more clear. Consumers, businesses, and governments at all levels are

investing unprecedented resources in energy-efficient appliances and alternative fuel vehicles.

Yet research commissioned by PERC shows that the public is largely unaware of propane as

a low-carbon fuel that is ready and available now. Teaching consumers and energy decision

makers that propane can fulfill their energy needs while protecting the environment

is consistent with public interest and PERC’s authorizing statute.

The restriction has forced a change that we would prefer not to make, but the truth is,

PERC was changing before the restriction was announced.

GROWTH THROUGH INNOVATION : PROPANE EDUCATION & RESEARCH COUNCIL : 2009 ANNUAL REPORT1

LETTER FROM THE CHAIRMAN & THE PRESIDENT

INNOVATION

SAFETY

TRAINING

VALUE

CONSUMER EDUCATION

GRANTS

APPROVED REBATES

FINANCIAL STATEMENTS

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There are still ways for us to support the residential market with research- and training-

oriented information on the full range of energy-efficient heating systems and appliances.

We’ll also continue to train construction professionals on the safe, efficient use of propane

in new construction and remodeling projects.

And, fortunately, the Energy Guys are not going away. We have secured the right to several

images of the actors portraying Propane and Electricity that may continue to be used in

connection with research, training, and safety communications.

But for now, we cannot do everything that we have done in the past and for which we are

best known. That is one reason why the Council approved a reduction in the assessment

rate from five-tenths of a cent on each gallon of odorized propane to four-tenths of a

cent per gallon beginning in April 2010. The loss in assessment revenue for 2010 will be

about $6 million, which is almost identical to the amount PERC had planned to spend on

residential advertising.

For nearly 15 years, PERC has fulfilled the priorities of the Propane Education and

Research Act of 1996 with due diligence and success. Whether planned or unexpected,

change over such a period is inevitable. What will never change is our commitment to

providing value to our industry.

In the area of research, for example, where our strategy is focused on bringing new propane-

fueled equipment to market, we are now modeling our research and development work on a

Stage-Gate process, the same commercialization standard used in many private and public

research organizations. Under direction of our new chief commercial officer, Steve Wayne,

our new operating framework is bringing more expertise and discipline to our research and

development activities — resulting in better projects and improved evaluation and decision

making on the entire project portfolio. The result is a better alignment of PERC’s innovation

process with market demand and potential.

That is why PERC approved a request from Roush to redirect the support for its 2010 propane

F-150 program to a new program to build a propane E-450 cutaway platform for the 2009-

2013 model years. Used for airport shuttle buses and other applications, the E-450 is more

attractive to fleet operators than the F-150 pickup. Responding to the marketplace is also why

the Council approved a grant to help Blue Bird secure financing to buy 1,800 discontinued

GM engines for its highly successful propane-fueled Vision school bus. The purchase ensures

uninterrupted production until a new engine becomes available in 2011 or 2012.

In safety and training, the new 2009 Propane Safety and Training Roadmap identified

strategies to build on PERC’s established leadership in this important area. One of the

roadmap’s key imperatives is for PERC to continue doing what it does best. So, with sales

of PERC’s CETP E-Learning DVD training programs increasing 51 percent since 2008, more

titles will be coming to the E-Learning format in 2010. The roadmap also calls for PERC to

improve outreach to safety-related organizations and emergency responder groups. In 2009,

PERC’s coordination with the Chemical Safety Board after release of the board’s report on the

Ghent, W.Va., incident led to the development of the first ever 911 operator propane guide card,

detailing how to deal with calls reporting propane emergencies.

Focusing on core strengths and competencies in all mission areas will become more important

as we adjust to life under the restriction. For example, even though we may no longer continue

national consumer advertising, we are not walking away from the residential market. We recognize

the residential sector as a prime area for growth. Indeed, according to the 2009 Propane Market

Outlook, topping the list of growth opportunities in the decade ahead are the millions of residential

propane customers who do not use propane for every appliance in the home.

Bill Platz Chairman

Propane Education & Research Council

Delta Liquid Energy Paso Robles, California

Roy W. Willis President and CEO

Propane Education & Research Council

PROPANECOUNCIL.ORG 2 GROWTH THROUGH INNOVATION : PROPANE EDUCATION & RESEARCH COUNCIL : 2009 ANNUAL REPORT3

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With PERC approval, Roush is replacing its 2010 propane F-150 program with a program to build a propane E-450 cutaway platform for five model years (2009-2013). Fleet operators use the E-450 for airport shuttle buses and other applications.

The final report on a study of combined heat and power systems for commercial and industrial markets will identify areas and markets with the highest growth potential and provide commercialization recommendations for the most promising technologies. The preliminary report indicated the systems are competitive in areas with higher electricity prices and suggested propane-renewable hybrid power generation systems are superior to other applications in the growing off-grid market.

THE DRIVING FORCE FOR NEW PROPANE PRODUCTS.

For example, the 2009 Propane Market Outlook, prepared by ICF

International and published by

PERC, identified residential propane

customers as the best prospects

for increased sales — in particular

through conversion to propane for

cooking and other applications for

which they are not already using

propane. An exciting new solution

for this market is the new Freewatt

Plus micro-CHP (combined heat and

power) system announced in 2009.

Manufactured by ECR International

and developed with support from

PERC, the Freewatt Plus combines

a propane-fueled Energy Star-

rated furnace and generator to

make electricity and heat the home.

Homeowners using the system can

reduce their carbon footprint and, in

some places, earn credits by selling

unused electricity back to the

energy grid.

PERC also supported the

residential market with the release

of Comparative Analysis of Residential Heating Systems, by

Newport Partners. The study showed

propane-fueled systems delivering

faster return on investment, lower

carbon dioxide emissions, and better

performance in many situations.

Engine fuel is another important

market with long-term potential for

significant growth. PERC support

is hastening commercialization of

the propane-fueled vehicles that

will drive propane sales.

Blue Bird school buses and Roush

pickups and vans continued to

attract attention — and customers.

In production for just two years, the

propane-fueled Blue Bird Vision has

already captured an estimated 10

percent of the market for buses in

its class. One early-adopting school

district, in Denton, Texas, acquired 44

of the new buses and has announced

its plan to have an all-propane fleet.

In February, PERC co-hosted the

introduction of the Roush propane-

fueled 2010 Roush F-250 and

E-250 vehicles for fleets. Meanwhile,

a new study showed that the propane

F-250 produces fewer greenhouse

gas emissions than comparable

trucks that run on gasoline or diesel.

The study came out just before the

F-250 was taken on a two-week

farm tour of the Midwest.

Growth of propane sales in the future

depends on the development of

innovative propane-fueled products

and applications. Supporting

development of the most promising

new products and helping to bring

them to market is the primary

objective of PERC’s research

and development mission.

In 2009, PERC implemented a

new operating framework to raise

both the quantity and the quality of

propane projects and to improve

overall management of PERC’s

project portfolio. The framework

increases the Council’s leadership

role in stimulating the development

of propane-fueled equipment,

appliances, and vehicles for

residential, commercial, agricultural,

and fleet markets. A new Stage-Gate

development procedure will bring

more rigor and discipline to PERC’s

technology mission by helping to

clarify which projects merit further

developmental support and which

should be deemed complete. PERC’s

new innovation process also strives

to better align product development

with market needs and potential.


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along with the consumer-grade

Eco Trimmer and a reel mower.

The engines and the tank will

meet federal transportation

safety standards.

Publication of new fact sheets and

reports helped the industry to benefit

from PERC’s ongoing research

activities. For example, as part of

PERC’s equipment comparison

testing program, researchers

from KTA-Tator evaluated the

performance of seven tank coatings

when exposed to environmental

conditions that can occur during

normal operation. Testing and Evaluation of Underground Propane Tank Coatings, published

in 2009, reports that powder

coatings performed better than

liquid coatings and that coatings on

weld seam areas often performed

worse than coatings on tank side

or leg attachment areas. The full

report presents one-page, graphical

summaries for each tank, as well

as an overall performance score so

that marketers can quickly compare

results from the various

coatings tested.

Propane Reduces Greenhouse Gas Emissions: A Comparative Analysis 2009, prepared for PERC

by Energetics, reported that propane

produces fewer greenhouse gas

emissions than many other fuels in

a variety of commercial, residential,

on-road, off-road, and agricultural

applications. Researchers found,

for example, that propane storage

tank water heaters produce 52

percent fewer emissions than similar

electric heaters and 17 percent

fewer than similar fuel oil heaters.

Propane’s advantages in commercial

applications included the finding that

propane 10-ton commercial rooftop

heat pumps produce 13 percent

fewer greenhouse gas emissions

than similar electric heat pumps that

will meet 2010 efficiency standards.

And in transportation, researchers

found that the propane-fueled 2010

Roush F-250 truck produces fewer

greenhouse gas emissions than

gasoline and diesel alternatives. It

even produces fewer greenhouse

gas emissions than 2009 propane

conversion kits.

PERC’s research and development

strategy has evolved throughout

its existence to meet industry’s

needs. Today, our innovation process

focuses on commercialization,

because marketable new products

and applications hold the key to

propane’s future growth.

As a part of its mission to benefit the

agriculture industry, PERC continued

to support the development of

new technology in the agriculture

market. In 2009, PERC funded the

certification and commercialization

of a new 5.7-liter GM engine used

to power irrigation pumps. PERC

also launched a project to develop

and commercialize up to three steam

delivery systems for steam pest

control equipment.

Commercial- and consumer-grade

lawn maintenance equipment is

another growing application for

propane-fueled engines. Launched

on Earth Day, the innovative propane-

fueled Lehr Eco Trimmer already

meets or exceeds federal small-

engine emissions regulations that

will take effect in 2010 and 2011.

This outstanding environmental

performance helped the trimmer

receive a clean air technology award

from the Environmental Protection

Agency, the Handy magazine

innovation award, and inclusion

among Popular Mechanics’ 10

most brilliant products of 2009.

In 2009 PERC approved new

support for Lehr to design, develop,

test, and certify two new propane-

fueled engines and a refillable tank

for use in commercial-grade string

trimmers and backpack leaf blowers

PERC will be reviewing proposals for an expert analysis of propane’s ozone-forming potential. The goal of the analysis is to support the propane industry’s work with the Environmental Protection Agency to address emissions regulations. Federal air-quality regulations do not take into account propane’s unique characteristics as a clean alternative fuel. Instead, they treat propane the way they treat compounds that have higher ozone-forming potential.

PROPANECOUNCIL.ORG 6 GROWTH THROUGH INNOVATION : PROPANE EDUCATION & RESEARCH COUNCIL : 2009 ANNUAL REPORT

HELPING TO KEEP PROPANE A SAFE CHOICE.

All of these publications were made

available for download at no charge

on PERC’s continually expanding

propanesafety.com website. New

content added in 2009 also included

the PowerPoint presentations

from webinars (online seminars)

on consumer safety resources, the

Propane Emergencies Program, the

Safety and Training Administrative

Records System, Gas Check, and the

Certified Employee Training Program,

or CETP.

The roadmap’s second imperative

is to extend PERC’s outreach to

consumer safety organizations,

trade groups, and emergency

responders. In this regard, over 120

propane marketers, firefighters, and

towing and recovery professionals

learned and shared vital propane

safety information, techniques,

and experiences at PERC’s Fourth

Propane Emergencies Industry

Responders Conference. Produced

in cooperation with the Propane

Gas Association of New England,

the two-day event featured live

demonstrations and hands-on

activities including the recovery

of a rolled-over bobtail and live-

fire training.

PERC also expanded its Propane

Emergencies Program to various

government agencies and

organizations such as the Department

of Defense and the National Volunteer

Fire Council and partnered with the

National Propane Gas Association and

the APCO Institute to develop a guide

card for 911 operators with questions

to ask callers who report a propane

emergency and safety instructions

to give them. The APCO Institute

is a subsidiary of the Association

of Public-Safety Communications

Officials International.

In line with the roadmap’s preference

for repurposing existing programs,

16 new computer-based consumer

safety modules were adapted from

the CETP E-Learning DVDs. Each

devoted to a single topic (such as

appliance maintenance or what to do

if you smell gas) and available in both

English and Spanish, the modules

have been added to many state

association and marketer websites

and to propanesafety.com. And in

2009, PERC repeated its highly

successful Safe Grilling Campaign,

which provided important consumer

safety tips together with mouth-

watering recipe suggestions from

program partner Certified Angus Beef.

Nothing is more important to the

industry than the safety of propane

workers and consumers. And nothing

gives the industry more pride than its

exemplary safety record, achieved in

part through the programs, initiatives,

and efforts of PERC’s Safety &

Training Advisory Committee (STAC).

To help ensure this record continues,

STAC developed the 2009 Propane Safety and Training Roadmap,

identifying opportunities and ways

to expand PERC’s activities in

promoting and assuring the safe

delivery, storage, and handling

of propane.

Even before the new roadmap’s

publication, PERC was already

advancing its two key imperatives.

For example, the roadmap calls for

continued development of PERC’s

core competencies, products, and

services — especially in the area of

workforce safety. New or updated

publications, such as the Composite Cylinder booklet, the Fire Safety Analysis Manual for LP-Gas Storage Facilities, and Propane Jurisdictional Systems: A Guide to Understanding Basic Fundamentals & Requirements, increased the

resources available from PERC

for promoting the safety of

industry personnel.

Among the new safety products PERC will roll out for 2010 will be a series of public service announcements for radio broadcast, a brochure that can help win public support for new bulk plants, and PropaneKids.com, a propane safety website for kids.

PERC also will conduct research to gain new insights into consumer perceptions of propane safety.


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PREPARING PEOPLE TO DO THEIR BEST.

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PERC’s Certified Employee Training

Program (CETP) has become the

industry’s flagship curriculum in

workforce training and certification,

with more than 120,000 propane

industry employees receiving

CETP certification since 1999,

according to the National Propane

Gas Association, which administers

the industry’s worker certification

program. Required in eight states

and used by propane marketers

nationwide, CETP continues to

gain in popularity. From April

2008 to December 2009, sales of

CETP E-Learning DVDs increased

51 percent and the number of

employees trained or expected to

be trained grew 38 percent.

PERC also reaches out to meet

the training needs of workers and

professionals outside the propane

industry. For example, in a new online

training course released in 2009,

architects, builders, remodelers, and

other construction professionals

learn how geography, climate, and

system variables affect the efficiency

and cost-effectiveness of various

residential heating systems, including

propane furnaces and boilers.

Drawing on findings from a PERC-

commissioned comparative heating

analysis, the course also provides an

introduction to the different systems’

first costs, operating costs, carbon

emissions, and payback periods.

Certified by the American Institute

of Architects, the course meets the

continuing education requirements

for several National Association of

Home Builders certificate programs.

PERC used every available medium

to deliver training materials to

construction professionals. Builders,

architects, and contractors can

get a quick, visual, and easy-

to-understand summary of the

Comparative Heating Analysis

study through a new webinar posted

at buildwithpropane.com. They can

also turn to the 28-page book,

The Propane Planner, published

in 2009, for an introduction to job

site considerations, choosing and

installing tanks and appliances, green

builder certification, and other key

topics from PERC’s builder-oriented

training program. And by watching

the seven-minute training video,

Inside Tankless Water Heaters, also

on buildwithpropane.com, they can

learn the benefits their customers

will enjoy when their new homes or

remodeling projects feature propane

tankless water heaters instead of

conventional electric storage models.

A well-trained propane workforce is

essential to protecting the health and

well-being of propane consumers

and the general public. That is

what makes workforce training the

essence of PERC’s service and value

to the propane industry.

New training material will become available in 2010, including a manual and DVD about static electricity hazards and propane storage.

PERC will also issue the industry’s OSHA/DOT “First 90 Days” training program in E-Learning format and an updated Dispensing Propane Safely program that includes new segments on engine fuel.

GROWTH THROUGH INNOVATION : PROPANE EDUCATION & RESEARCH COUNCIL : 2009 ANNUAL REPORT

TRAINING

Responding to the growing interest

in propane-fueled vehicles and

equipment, PERC launched the Third

Thursday webinar series, offering 20

regularly scheduled training sessions

on products featuring propane-

fueled engines. Propane-fueled

forklifts, commercial mowers, lawn

equipment, generators, and school

buses, as well as grant and incentive

programs were among the monthly

topics. The series was developed in

partnership with theSales.NetWork, a

Virginia-based provider of education

and outreach services to the

alternative fuel industry. In addition

to PERC’s support, initial funding

was also provided by a grant from

the Maryland Energy Administration

and the U.S. Department of Energy.

Anyone who missed the original

presentations can watch all of the

webinars at percthirdthursday.net.

PERC and its industry and

manufacturing partners conducted

new product training on propane

commercial mowing and lawn

care equipment in the PROPANE Exceptional Energy® booth at the

Green Industry and Equipment Expo

(GIE Expo) in Louisville, Ky. A new

manual published in 2009 teaches

service technicians how to maintain

stationary propane engines that run

irrigation pumps and provide power

to critical agriculture applications.

According to the Agriculture

Department, about 18,000 irrigation

pumps use propane as a fuel source.

Whether offered in formal classroom

instruction, self-paced computer-

based learning, printed manuals, or

hands-on demonstrations, PERC

training helps to reduce accidents

and incidents, promote safety

awareness, improve regulatory

compliance, and build consumer

confidence.

In further support of the

residential market, propane

industry representatives at trade

shows around the country — the

International Builders’ Show in Las

Vegas, the Remodeling Show in

Indianapolis, the Sunbelt Builders

Show in Grapevine, Texas, and

the Plumbing-Heating-Cooling

Contractors Association’s product

and technology showcase in New

Orleans, to name a few — offered

training to attendees in the selection,

installation, and use of propane-

fueled appliances and

heating systems.

PROPANECOUNCIL.ORG 12


BUILDING AWARENESS, UNDERSTANDING, AND PREFERENCE FOR PROPANE.

Consumer education’s overriding

goal in 2009 was to increase the

perception of propane as clean,

reliable, domestic energy that is

available now. To that end, PERC

joined forces with the Pickens Plan

to promote the ways propane can

help meet America’s energy needs

while protecting the environment and

reducing our dependence on foreign

oil. A new brochure for homebuilders

and remodelers promoted the

environmental benefits of propane

tankless water heaters, furnaces,

radiant floor heating systems, and

fireplaces, and showed that building

with propane can earn points toward

green building certification from

the National Association of Home

Builders. An article developed and

distributed by PERC on stimulus-

related federal and state tax credits

available to homeowners who choose

energy-efficient propane appliances

reached millions of readers coast-

to-coast. And PERC’s new major

nationwide print, broadcast, and

online advertising campaign —

Do More, Emit Less — was fully

produced and ready to drive traffic

to a new website, www.propane.com,

had the campaign launched

as scheduled in September.

That was not to be, as in August

the Commerce Department invoked

a price-related provision of the

Propane Education and Research Act

of 1996 and restricted the Council’s

activities to the areas of research

and development, training, and safety.

On the advice of legal counsel,

PERC accepted Commerce’s notice

as a cease-and-desist order and

immediately shut down its

education programs.

Of course, as Commerce has twice

acknowledged, PERC programs were

not the cause of higher propane

prices. Rather, as the historical

record confirms, PERC’s consumer

education program has accomplished

what it was created to do: generate

the understanding and awareness

that help to grow propane markets

and sales by building acceptance of

propane’s benefits as a safe, reliable,

affordable, and environmentally

sound energy choice.

Through more than seven months of

2009, PERC’s consumer education

and outreach program led the

industry’s major communications

effort for 2009: the National Energy

Conversation, a multifaceted effort to

increase propane’s visibility among

users and potential users in all

market segments.

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LOOKING BACK AT PERC CONSUMER EDUCATION ACHIEVEMENTS

A market research

initiative helps the

industry understand how

homeowners, builders,

fleet and forklift operators,

and agriculture producers

see propane. The results

help PERC form a plan

to increase consumers’

awareness of propane’s

benefits and promote safe

use of propane at home,

at work, on the road, and

on the farm.

A return-on-investment

calculation credits PERC’s

consumer education

programs with increasing

the number of propane-

heated households by

nearly 30,000 between

2001 and 2003, projects

the net present value

of program benefits to

exceed program costs by

a ratio of about 1.5 to 1,

and forecasts an annual

return on investment to

the industry of about 17.5

percent per year.

Usepropane.com logs more

than 300,000 visits. Find a

Propane Retailer searches

surpass 167,000.

Launch of the Propane

Marketing Resource Center,

or the MaRC, provides

marketers with the safety

material and propane

equipment collateral

material they need to tie

their own advertisements

and promotional efforts to

the national campaign.

The PROPANE Exceptional Energy® branding campaign

supports commercialization

of new propane-fueled

appliances and drives home

the differentiating benefits

of propane as a clean,

affordable, reliable, efficient,

and safe energy source

for residential, commercial,

engine fuel, and

agricultural markets.

Partnership with the

industry promotes the

sharing of national

campaign materials with

propane companies

and state propane gas

associations for use in

local education and training

efforts. Launched in 2001,

the Consumer Education

Partnership with States

Program gives states a

50-cents-on-the-dollar

match for media buys.

By 2002, 37 states

are participating.

In an all-time high, 74

percent of the consumer

campaign’s target audience

recalls seeing the propane

ads. PERC ramps up

outreach to builders,

developers, architects,

HVAC professionals, and

manufacturers and retailers

in the manufactured

housing industry with

messages related to safety

and new products.

The consumer advertising

campaign focuses on

national cable and satellite

lifestyle programming to

reach homeowners and

remodelers thinking

about the best home

improvement ideas.

Market research finds

that the 2002 campaign

exceeds objectives,

generating double-digit

improvements in consumer

perceptions of propane as

clean, affordable, reliable,

efficient, and safe.

A comprehensive residential

research study including

in-depth interviews with

builders and homeowners

provides insight into how

and when consumers make

energy decisions, helping to

identify more effective ways

to reach consumers and

turn them into new propane

customers.

With overall propane

housing starts down and

reduced sales opportunities

looming, PERC focuses

its consumer residential

campaign, concentrating

on more short-term

and regional consumer

sales opportunities while

increasing sales and

marketing efforts

with builders.

Nationwide consumer

awareness of propane

advertising increases in one

year from 28 percent to 48

percent. The new Find a

Propane Retailer program

promotes safety and sales

by helping consumers

find local qualified

propane professionals

at usepropane.com and,

in turn, sending leads to

propane companies.

The national campaign

goes beyond traditional

advertising to embrace

product placement and

promote the deployment

of newly commercialized

propane-fueled devices.

Usepropane.com attracts

over 900,000 visitors.

In its first full year of

operation, builder-focused

buildwithpropane.com draws

more than 30,000 unique

visitors — many through

PERC’s partnership with

media publisher Hanley

Wood. The partnership

produces print magazine

ads and inserts, videos, The Propane Energy Update

email newsletter, and other

promotional efforts.

PERC and its partners

develop five new builder

training courses about

propane. By the next year,

some 800 architects

have taken the free

online courses.

PERC’s sponsorship of the

Hanley Wood showcase

home at the International

Builders’ Show provides

additional opportunity for

industry representatives

to participate in educating

builders, contractors,

architects, and others on

the benefits of building

safely with propane.

The Energy Guys consumer

advertising campaign

debuts, humorously

depicting the differences

between propane and

electricity. Radio, print, and

cable television ads, along

with NASCAR and Country

Music Awards tie-ins, drive

propane’s favorability rating

to an all-time high of 58

percent, while electricity’s

favorability rating drops.

Visits to consumer-oriented

usepropane.com triple.

Find a Propane Retailer

records more than

100,000 searches.

Citing propane’s

environmental benefits and

its production in the United

States, T. Boone Pickens

adds propane to the mix of

energy sources supported

in his Pickens Plan for

energy independence.

PERC develops a wide-

ranging consumer-targeted

print, broadcast, and online

advertising campaign for

propane — Do More,

Emit Less.

The Commerce Department

invokes a price-related

provision of the Propane

Education and Research

Act of 1996 to restrict

PERC’s activities to the

areas of research and

development, training, and

safety. PERC education and

advertising programs are

shut down.


THE ENERGY GUYS

TANKLESS WATER HEATER


SERVING AS A VITAL INDUSTRY RESOURCE.

LO

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The Council’s primary website —

propanecouncil.org — is the starting

point for current and historical

information about the Council,

propane research, and the use

of propane in engine fuel and

agricultural applications.

PERC also maintains three market-

or topic-specific websites where

visitors can find the targeted

information they are looking

for. For example, all of PERC’s

no-charge safety and training

resources, including safety and

compliance information for propane

industry members, are available

for viewing and download at

propanesafety.com. The builder-

oriented site, buildwithpropane.

com, provides propane training and

research materials for construction

professionals. And the consumer-

oriented usepropane.com provides a

convenient link to valuable consumer

safety information and PERC’s Find

a Propane Retailer service, which

promotes propane sales by letting

consumers identify local retailers

in just a few clicks and delivering

actionable leads to the 4,364

registered retailers.

In 2009, PERC combined its

online propane industry resources

catalog with the online marketing

resource center to form the Propane

Marketing and Resource Catalog (the

Propane MaRC) at propanemarc.com.

Now, propane marketers and state

propane gas associations can visit

just one site to find more than 100

training programs, consumer safety

tools, and other products available

for purchase plus more than 900 fact

sheets, brochures, photos, and other

items available for downloading

at no charge.

Extending service throughout the

industry, PERC’s Propane Web

Services program also maintains

websites for 19 of the state and

regional propane associations.

Electronic distribution has become

PERC’s preferred method of timely

communication with members. The PERC Update newsletter, issued

weekly every Friday, brings the

latest news to the propane industry,

including news from PERC, while

the In Touch newsletter delivers a

quarterly roundup of PERC activities,

industry developments, and feature

stories from around the industry.

The Ag Propane E-lert for

agricultural propane users and

Propane Industry Instructor Newsletter for propane safety

professionals are issued on an

occasional basis, as are the

Propane News by Fax roundups.

In fulfilling its mission to promote the

safe and efficient use of odorized

propane gas, PERC strives to be a

trusted source of information and

a provider of support and value to

everyone who markets, uses, or

works with propane. Consistent with

PERC’s commitment to technological

innovation, online services figure

prominently in our dissemination

of information to the industry and

the public.

State and regional association leaders will work with PERC to develop a new partnership program.

PERC will unveil a new design for its family of websites and launch a new propane safety website for kids.

Industry members will be invited to subscribe to PERC SmartBrief, a new daily email roundup of news by and for the propane industry.

SA

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& T

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MS

GRANTS

16441 Propane Education & Research Council

Dispensing Propane Safely 2nd Edition, Script and Text Development


Construction Pro Media Outreach


2009 Consumer Education Advisory Committee Support


FY 2009 Tradeshows and Conferences


Research, Measurement, and Evaluation Task Force Audit and Assessment


Consumer Safety Radio Announcements


Curriculum Alignment for CETP Course(s); Plant Operations


Homeowner Media Outreach


2009 Media Monitoring and Reporting


Residential Advertising — Construction Professionals & Homeowners (Change Order)


Residential Advertising — Construction Professionals/Homeowners (Change Order)


Propane Kids Website


Residential Advertising — Construction Professionals & Homeowners


2009 NAHB Builder 20 Clubs


2009 Consumer Education Measurement and Evaluation: Core Initiatives


2009 Consumer Education Advisory Committee Support (Change Order)


2009 Industry Communications


Consumer Safety Education Research


2009 Construction Professional Education


2009 Factory-Built Housing Initiative


2009 Consumer Education Measurement and Evaluation: Core Initiatives (Change Order)

$37,800

$57,200

$200,000

$150,000

$1,447,050

$29,000

$28,600

$461,497

$450,000

$80,000

$125,000

$0

$174,200

$5,884,000

$450,000

$305,000

$30,000

$250,000

$264,000

$450,000

$300,000

$150,000

$50,050


Consumer Safety Education Outreach/Multi-Media CD


Construction Professional Partnerships


Market Growth Programs and Propane Industry Tools

$1,270,000

09 GRANTS

RE

SE

AR

CH

& D

EV

ELO

PM

EN

T

SA

FE

TY

& T

RA

ININ

G


2009 RDAC Oversight and Advisory Committee Support


Expert Analysis of Concept of Synthetic and/or Bio-propane

16054 Propane Education & Research Council and Kohler

Heavy Duty Residential/Commercial Hybrid Generator


Testing of Pressure Relief Valves for Customer Tanks (Change Order)


Propane Portable Generator Line


2009 Safe Grilling Campaign


2009 Technical Communications and Outreach


LPG Additive and Filter Effectiveness Studies

16245 Gas Technology Institute

Development, Testing, and Demonstration of Micro-CHP


Towable and Rental LPG Fuel Generator Sets


PERC-NPS Propane Energy Optimization Working Group

16068 National Propane Gas Association

Promotional Activities for CETP Certification Program


Update to Research and Development Roadmap


Greenhouse Gas Emissions for Propane Equipment Analysis II


Expert Analysis of Propane’s Ozone-Forming Potential


Demonstration Units and Installations 6kW Off Grid Generator


2009 Safety & Training Advisory Committee Support


Community Bulk Plant Outreach


Fuel Sampling and Analysis Program


Performance Testing of Remote Tank-Level Monitoring Systems


Stage-Gate Process for PERC


Midsize Extended Run Generator


CETP Vapor Distribution Systems Text and E-Learning


Curriculum Alignment for CETP Courses; Appliance Start-up & Installation and Residential & Small Commercial Vapor Systems (Change Order)

$208,000

$99,261

$667,500

$89,000

$423,750

$213,500

$190,000

$449,300

$795,000

$420,000

$97,800

$45,924

$67,000

$82,000

$300,000

$45,250

$116,000

$38,200

$50,000

$375,000

$145,229

$353,250

$1,700,000

$140,000


EN

GIN

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UE

LN

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AG

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UR

E

GRANTS


2009 Agriculture Project/ Partner Development and Support

15920 University of Nebraska-Lincoln

Innovative Propane Flaming Technology for Crop Production

16090 The GSI Group

GSI/Purdue Dryer Energy Reduction Product Testing

16218 Progressive Agriculture Foundation

Training Trainers and Youth on Propane Safety at Safety Days


2009 PERC, NPGA and GPA Partnership Agreement

16227 CleanFUEL USA

Heavy Duty OBD II 6.0L L96 Engine Demonstration


2009 Agriculture Communications Plan


Heat as Alternative to Fumigants in Grain Facilities

16109 The Connecticut Agricultural Experiment Station Research Foundation

Controlling Barberry with Propane Reducing Lyme Disease — Year 2

16294 EnSave, Inc.

Training Propane Marketers to Conduct Farm Energy Audits


FY 2009 National Energy Conversation Initiative

16296 Kohler Co.

Closed-Loop Electronic Fuel Injection (EFI) LP Engines


Propane Agriculture Roadmap Update

16081 Engine Distributors, Inc.

EPA and CARB Certification of Ford 4.0L Industrial Engine



16306 Osborn & Barr Communications

Agriculture Technology Demonstration & Validation Program


PERC/Pickens Plan

16312 Lehr Inc.

Development of Propane Outdoor Power Equipment


2009-10 Agriculture Research and Project Evaluation

12331 Railroad Commission of Texas — AFRED

Introducing 90% Efficient Micro — Trigeneration Technologies to Texas Dairy Farming (Change Order)

16408 Gas Technology Institute

Develop and Commercialize Steam Disinfestation Technologies

$245,976

$129,500

$274,000

$15,000

$30,250

$1,571,000

$192,760

$425,000

$73,900

$25,000

$35,613

$6,200,000

$725,000

$67,000

$106,000

$145,229

$586,000

$1,000,000

$915,600

$116,176

$120,000

$18,600

$889,016

16142 CleanFUEL USA

6.0L W42 Custom Workhorse Chassis Liquid Propane Application

15948 The Ohio State University/OARDC

Propane Flaming of Sand to Reduce Bacteria Counts in Bedding


Integration of Propane into The Pickens Plan

$223,500

IND

US

TR

Y P

RO

GR

AM

S

EN

GIN

E F

UE

L

09 GRANTS


2009 Industry Outreach Programs


U.S. Propane Infrastructure & Deliverability Study


Market Development of Propane Appliances, Technologies, and Products

15733 Kawasaki Motors Corp., U.S.A.

Kawasaki Dealer Outreach & Education of Propane Commercial Mowers


Engine Fuel Advisory Committee (EFAC) Professional Services


Engineering Analysis of Aftermarket Tank Installation


Market Metrics Initiative — 2009 Analysis Cycle


Market Development Partnership Program (MDPP) (Change Order)


PERA Price Determination Support Activities (EC Approved) (Change Order)

15607 Propane Education Foundation of Alabama

Propane Vehicle Statistical Data Research (Agriculture)

15961 Onyx Environmental Solutions, Inc

Propane Fuel Systems for New Kawasaki Engine Platforms




2008 API Survey


Market Development Partnership Program (MDPP) (Change Order)


Market Growth Programs & Propane Industry Tools (Change Order)

15649 California Clean Air Technologies, LLC

CARB Off-road Verification of a Propane Addition System


Video Training Program for Propane Equipment

15494 Roush

Multi-Year/Multi-Platform Program (Change Order)


2009 State Appliance Rebate Protocol


2009 Milford Therrell Award


Engine Fuel Advisory Committee Oversight & Operating Support


2009-2010 Engine Fuel Marketing Program


Blue Bird Propane Vision School Bus Engine Finance Program

16086 CleanFUEL USA

Cab Chassis Tank Application for 6.0L Engine Certification

$360,000

$155,000

$354,400

$130,000

$200,000

$16,360

$414,200

$0

$0

$65,000

$100,000

$145,229

$183,662

$0

$0

$280,000

$62,160

$0

$75,000

$25,000

$120,000

$1,766,200

$1,397,703

$184,631


15859 Water Heater and Home Heating Rebates 2009 New England PERF New England $ 200,000.00 $ 200,000.00

15877 Consumer Safety Tip & Recipe Calendar Texas PEMF TX $ 36,300.00 $ 36,300.00

15890 2009 Consumer Education Campaign Minnesota PERC MN $ 125,000.00 $ 60,000.00 $ 185,000.00

15896 Arkansas PGA 2009 Information Dissemination, S & T Projects Arkansas PERC AR $ 97,700.00 $ 97,700.00

15897 2009 PA Manufactured Housing Association Industry Symposium Pennsylvania Propane Foundation PA $ 15,000.00 $ 15,000.00

15900 2009 PMHA Advertising Publications Pennsylvania Propane Foundation PA $ 2,880.00 $ 1,320.00 $ 4,200.00

15901 2009 Winter Storm Generator Campaign Missouri PERC MO $ 20,000.00 $ 10,000.00 $ 30,000.00

15905 2009 Appliance and Safety Rebate Program Minnesota PERC MN $ 350,000.00 $ 350,000.00

15927 2009 Educational Training Tennessee PERC TN $ 59,427.59 $ 59,427.59

15928 Bally Fire Company Emergency Training 2009 Pennsylvania Propane Foundation PA $ 2,100.00 $ 2,100.00

15930 Reimbursement Request — Form 990 Prep Fees Pennsylvania Propane Foundation PA $ 1,150.00 $ 1,150.00

15935 2009 Education Program Pennsylvania Propane Foundation PA $ 75,600.00 $ 75,600.00

15937 2009 Professional Liability Insurance Reimbursement Request Pennsylvania Propane Foundation PA $ 1,450.00 $ 1,450.00

15941 Home Builder Journal Marketing Campaign Kentucky PERC KY $ 3,333.34 $ 1,666.66 $ 5,000.00

15949 Operating Expenses Iowa PERC IA $ 1,750.00 $ 1,750.00

15953 2009 Propane Appliance Rebate Program Kentucky PERC KY $ 150,000.00 $ 150,000.00

15954 Home Builder 2009 Marketing Campaign Kentucky PERC KY $ 14,000.00 $ 7,000.00 $ 21,000.00

15957 2008 NW Fire Safety Analysis and NFPA Update Workshop Interwest PERC WA $ 7,772.61 $ 7,772.61

15967 2009 Montana Employee Training Interwest PERC MT $ 60,805.00 $ 60,805.00

15968 2009 Idaho Employee Training Interwest PERC ID $ 43,760.00 $ 43,760.00

15969 2009 Utah Training Classes Interwest PERC UT $ 23,370.00 $ 23,370.00

15970 2009 Wyoming Employee Training Interwest PERC WY $ 27,625.00 $ 27,625.00

15971 2009 Northwest Training Classes Interwest PERC WA $ 68,245.00 $ 68,245.00

15972 South Carolina PGA Propane Road Show 2009 South Carolina PERC SC $ 8,500.00 $ 8,500.00

15977 2009 Montour Home Comfort Services Emergency Training Pennsylvania Propane Foundation PA $ 1,050.00 $ 1,050.00

15979 2009 Deliver Marketer Newsletter Nebraska PERC NE $ 14,060.00 $ 14,060.00

15980 Educational Seminar at 2009 NE Convention Nebraska PERC NE $ 4,200.00 $ 4,200.00

15988 2009 Nebraska Media & Trade Show Outreach Campaign Nebraska PERC NE $ 38,474.37 $ 7,360.96 $ 45,835.33

15995 2009-2010 Water Heater Rebate Program Propane Education Foundation of AL AL $ 108,225.00 $ 108,225.00

15996 2008 Emergency Response New York PERC NY $ 18,700.00 $ 18,700.00

15998 2008 New York State Fair New York PERC NY $ 1,500.00 $ 1,500.00

15999 2008 New York Home Builders Association New York PERC NY $ 2,500.00 $ 2,500.00

16000 2009 Educational Seminar During Convention and Promotional Propane Education Foundation of AL AL $ 9,500.00 $ 9,500.00

16004 VAPGA 2009 Water Heater Rebate Program Virginia PREF VA $ 88,000.00 $ 88,000.00

16005 2009 VAPGA Safety Training and Education Program Virginia PREF VA $ 140,000.00 $ 140,000.00

16007 2009 Support For Propane Magazine With Circulation Natural Resources Ed Foundation OK $ 35,000.00 $ 35,000.00

DOCKET DESCRIPTION PAYEE STATE REBATE PARTNERSHIP TOTAL

APPROVED REBATES

15244 Contractor Rebate Program Georgia PERC GA $ 75,000.00 $ 75,000.00

15309 Consumer Education & Awareness Regional Campaign 2008-2009 Kansas PERC KS $ 17,109.00 $ 17,109.00

15698 2009 Montana High School Rodeo Association Sponsorship Interwest PERC MT $ 11,000.00 $ 11,000.00

15704 Operating Expenses for Iowa PERC Council Meeting Iowa PERC IA $ 399.56 $ 399.56

15770 2009 Consumer Education & Training Project Indiana PERC IN $ 236,000.00 $ 12,000.00 $ 248,000.00

15771 2009 Water Heater Rebate Program Indiana PERC IN $ 52,000.00 $ 52,000.00

15774 Public Relations Campaign 2009 New Jersey PERF NJ $ 25,000.00 $ 25,000.00

15776 Production & Distribution of Industry Newsletter New Jersey PERF NJ $ 10,000.00 $ 10,000.00

15777 Web Site Hosting & Maintenance 2009 New Jersey PERF NJ $ 8,000.00 $ 8,000.00

15782 2009 Arizona Fugitive Emission Reduction Program Interwest PERC AZ $ 84,000.00 $ 84,000.00

15783 Texas Propane Awareness & Capitol Action Program Texas PEMF TX $ 32,470.00 $ 32,470.00

15789 Coordinated Consumer Education/Awareness Campaign 2008-2009 Kentucky PERC KY $ 50,000.00 $ 24,475.00 $ 74,475.00

15792 Advertising in GA Builder Magazine 2008 Georgia PERC GA $ 15,887.27 $ 7,193.64 $ 23,080.91

15795 Operating Expenses for additional Audit Expenses Iowa PERC IA $ 1,225.00 $ 1,225.00

15797 Kansas Propane Safety Coloring Book Program Kansas PERC KS $ 22,528.00 $ 22,528.00

15802 CETP Classes 2009 New York PERC NY $ 105,000.00 $ 105,000.00

15803 2009 Water Heater & Whole Home Heating System Rebate Program New York PERC NY $ 110,000.00 $ 110,000.00

15804 2009 New York State Fair New York PERC NY $ 1,500.00 $ 1,500.00

15810 2009 Statewide Public Relations Awareness Campaign New York PERC NY $ 7,500.00 $ 7,500.00

15811 2009 Mixed Media Awareness Campaign New York PERC NY $ 42,500.00 $ 21,250.00 $ 63,750.00

15813 Propane Training & Education 2009 West Virginia PREF WV $ 50,000.00 $ 50,000.00

15815 KPGA President Travel Exp. 2008 NPGA/PERC Leadership Summit Kentucky PERC KY $ 912.16 $ 912.16

15816 Safety, CETP & Propane Fire Training North Dakota PERC ND $ 85,000.00 $ 85,000.00

15821 2009 Northeast Pipeline Newsletter New York PERC NY $ 7,500.00 $ 7,500.00

15823 2009 New York Home Builders Association New York PERC NY $ 2,500.00 $ 1,250.00 $ 3,750.00

15831 CETP Classroom Training 2009 South Dakota PERC SD $ 72,500.00 $ 72,500.00

15832 Educational Propane Newsletter and Directory 2009 South Dakota PERC SD $ 8,000.00 $ 8,000.00

15833 Propane Web Site Maintenance 2009 South Dakota PERC SD $ 3,800.00 $ 3,800.00

15834 Reimbursement for NPGA/PERC Leadership Summit 2008 South Dakota PERC SD $ 1,012.00 $ 1,012.00

15835 Reimbursement for NPGA/PERC Leadership Summit 2008 Kentucky PERC KY $ 317.06 $ 317.06

15836 Reimbursement for NPGA/PERC Leadership Summit 2008 Ohio PERC OH $ 1,373.24 $ 1,373.24

15837 2009 Engine Fuel Initiatives New York PERC NY $ 12,700.00 $ 12,700.00

15838 Certified Employee Training Program 2009 Illinois PERC IL $ 157,030.00 $ 157,030.00

15842 2008 Post Season Football Iowa PERC IA $ 2,446.82 $ 1,223.56 $ 3,670.38

15847 Advertising in GA Builder Magazine 2009 Georgia PERC GA $ 10,464.86 $ 5,154.34 $ 15,619.20

15850 Promotional Materials Georgia PERC GA $ 12,259.99 $ 12,259.99

DOCKET DESCR I PTION PAYE E STATE REBATE PARTNERSH I P TOTAL

09 APPROVED REBATES


16128 2009 Crawford & Venango County Fire School Pennsylvania Propane Foundation PA $ 2,100.00 $ 2,100.00

16129 2009 Paraco Gas Corporation Emergency Training Pennsylvania Propane Foundation PA $ 2,100.00 $ 2,100.00

16130 2009 R F Ohl Fuel Oil, Inc. Emergency Training Pennsylvania Propane Foundation PA $ 2,100.00 $ 2,100.00

16131 New Appliance Rebate Program New England PERF New England $ 70,000.00 $ 70,000.00

16132 2009 Public Relations Program — Consumer Safety Education New England PERF New England $ 30,000.00 $ 30,000.00

16133 PGANE Pro Connect Program New England PERF New England $ 35,000.00 $ 17,500.00 $ 52,500.00

16134 Ohio Farm Radio/Fairs #5 Ohio PERC OH $ 19,715.00 $ 9,857.00 $ 29,572.00

16135 California Propane Forklift Rebate Western PERC CA $ 50,000.00 $ 50,000.00

16137 Low-Emission Equipment Rebate 2009 — Continuation Western PERC CA $ 75,000.00 $ 75,000.00

16148 National Energy Conversation 2009 — California Promotion Western PERC CA $ 65,099.00 $ 65,099.00 $ 130,198.00

16150 2009-2010 Water Heater Rebate Program Tennessee PERC TN $ 82,632.00 $ 82,632.00

16152 2009 Educational Seminar During Convention & Promotional Items Tennessee PERC TN $ 10,661.72 $ 10,661.72

16153 2009/2010 Marketing Program Tennessee PERC TN $ 135,394.60 $ 135,394.60

16154 North Carolina Propane Road Show North Carolina PERC NC $ 11,000.00 $ 11,000.00

16160 2009 PA Recreational Vehicle Show Exhibit/Support Pennsylvania Propane Foundation PA $ 7,875.00 $ 7,875.00

16190 2009 Radio Campaign Pennsylvania Propane Foundation PA $ 55,000.00 $ 50,000.00 $ 105,000.00

16191 2009 Supplemental Marketing/Radio Campaign Pennsylvania Propane Foundation PA $ 61,940.00 $ 58,060.00 $ 120,000.00

16192 3i Show Agriculture Show 2009 Kansas PERC KS $ 12,744.78 $ 12,744.78

16194 First Freeze First Snow Kansas PERC KS $ 1,725.00 $ 1,725.00

16196 Educational Training Facility North Carolina PERC NC $ 150,000.00 $ 150,000.00

16202 2009 Lackawanna County Emergency Management Pennsylvania Propane Foundation PA $ 2,525.00 $ 2,525.00

16205 2009-2010 Public Relations Campaign Pennsylvania Propane Foundation PA $ 15,750.00 $ 15,750.00

16222 Filing of IRS Tax Form 990 Year End 2008 North Dakota PERC ND $ 935.25 $ 935.25

16223 Filing of IRS Tax Form 990 Year End 2008 Propane Education Foundation of AL AL $ 800.00 $ 800.00

16230 2009 Educational Training South Carolina PERC SC $ 7,000.00 $ 7,000.00

16236 Michigan Propane Market Awareness and Safety Education Rebate 2009 Michigan PERC MI $ 923,715.00 $ 151,500.00 $ 1,075,215.00

16246 Education Training for Georgia Propane Workers Georgia PERC GA $ 43,000.00 $ 43,000.00

16247 Consumer Education & Awareness Regional Campaign 2009-2010 Kansas PERC KS $ 22,977.98 $ 22,977.98

16251 Idaho HVAC Propane Training Development — Phase 1 Interwest PERC ID $ 43,906.98 $ 43,906.98

16254 CETP #12 Ohio PERC OH $ 100,000.00 $ 100,000.00

16259 Idaho HVAC Propane Training Development — Phase 2 Interwest PERC ID $ 34,800.00 $ 34,800.00

16261 2009 New Mexico Hazmat and DOT Training Interwest PERC NM $ 11,440.00 $ 11,440.00

16262 2010 Training & Safety Package North Carolina PERC NC $ 120,000.00 $ 120,000.00

16266 Outfield Sign at Lewis Clark State College Harris Field Interwest PERC ID $ 1,000.00 $ 1,000.00

16268 2009 Wyoming High School Rodeo Association Sponsorship Interwest PERC WY $ 11,000.00 $ 11,000.00

16271 2009 Rodeo de Santa Fe Sponsorship Interwest PERC NM $ 14,000.00 $ 14,000.00


APPROVED REBATES

16013 2009 Idaho High School Rodeo Association Sponsorship Interwest PERC ID $ 16,500.00 $ 16,500.00

16014 Operation Handshake Missouri PERC MO $ 35,420.00 $ 35,420.00

16015 Keystone Energy Zone Pennsylvania Propane Foundation PA $ 10,500.00 $ 10,500.00

16017 2009 Manufactured Housing Five-State Meeting Sponsorship Pennsylvania Propane Foundation PA $ 10,720.00 $ 5,280.00 $ 16,000.00

16018 2009 Pocono Raceway Nascar Marketing Program Pennsylvania Propane Foundation PA $ 14,040.00 $ 6,435.00 $ 20,475.00

16022 2008-2009 Post Season Basketball Ads Iowa PERC IA $ 2,232.52 $ 1,116.66 $ 3,349.18

16023 2008 Post Season Basketball Iowa PERC IA $ 1,134.00 $ 567.00 $ 1,701.00

16027 2009 CETP Educational Training South Carolina PERC SC $ 20,000.00 $ 20,000.00

16028 Promotion of PERC in 2009 SCPGA Publications South Carolina PERC SC $ 2,050.00 $ 2,050.00

16029 2009 Historical Records and Promotional Items Storage South Carolina PERC SC $ 1,560.00 $ 1,560.00

16030 2009 Publication of SCPGA News Magazine South Carolina PERC SC $ 21,500.00 $ 21,500.00

16031 Educational Seminar at 2009 SCPGA Convention South Carolina PERC SC $ 12,500.00 $ 12,500.00

16035 Regulator Rebate Kansas PERC KS $ 40,000.00 $ 40,000.00

16036 2009 Promotional Materials South Carolina PERC SC $ 5,000.00 $ 5,000.00

16037 2009 SCPGA Water Heater Rebate Program South Carolina PERC SC $ 55,000.00 $ 55,000.00

16038 2008 Michigan Operating Expenses & Leadership Summit Michigan PERC MI $ 2,808.84 $ 2,808.84

16051 Travel to 2008 Staff Leadership Summit Indiana PERC IN $ 993.38 $ 993.38

16059 Crisis Media Training Iowa PERC IA $ 7,500.00 $ 7,500.00

16062 State Farm Bureau Cookout Iowa PERC IA $ 1,000.00 $ 1,000.00

16063 Educational Seminar 2009 Marketer Expo Iowa PERC IA $ 2,500.00 $ 2,500.00

16064 Educational Training Facility Iowa PERC IA $ 143,000.00 $ 143,000.00

16066 2009 Annual Meeting and Speakers/Presenters Pennsylvania Propane Foundation PA $ 5,250.00 $ 5,250.00

16066 2009 Annual Meeting and Speakers/Presenters Pennsylvania Propane Foundation PA $ 5,250.00 $ 5,250.00

16070 Reimbursement of accountant’s fees for NC Propane Foundation North Carolina Propane Foundation NC $ 1,095.00 $ 1,095.00

16074 FY10 Regional Media Campaign Missouri PERC MO $ 360,000.00 $ 65,000.00 $ 425,000.00

16074 FY10 Regional Media Campaign Illinois PERC IL $ 60,000.00 $ 60,000.00

16074 FY10 Regional Media Campaign Kansas PERC KS $ 45,000.00 $ 45,000.00

16074 FY10 Regional Media Campaign Iowa PERC IA $ 27,500.00 $ 27,500.00

16074 FY10 Regional Media Campaign Arkansas PERC AR $ 27,500.00 $ 27,500.00

16074 FY10 Regional Media Campaign Tennessee PERC TN $ 15,000.00 $ 15,000.00

16091 Sponsorship of GA State Firefighters Annual Conference Georgia PERC GA $ 6,500.00 $ 6,500.00

16094 Ed and Training for GA Propane Industry Workers Georgia PERC GA $ 55,000.00 $ 55,000.00

16108 North Carolina LP Gas Magazine North Carolina PERC NC $ 35,000.00 $ 35,000.00

16123 Website Maintenance Pennsylvania Propane Foundation PA $ 3,255.00 $ 3,255.00

16126 2009 Pocono Raceway Nascar Marketing Program-Amendment Pennsylvania Propane Foundation PA $ 1,072.00 $ 528.00 $ 1,600.00

16127 2009 Pennsylvania Propane Newsletter Pennsylvania Propane Foundation PA $ 5,355.00 $ 5,355.00


09 APPROVED REBATES



APPROVED REBATES

16376 WPERC Directors & Officers Insurance for 2009-2010 Western PERC CA $ 1,234.00 $ 1,234.00

16377 2010 Trainer Contract MNPEPSC MN $ 109,000.00 $ 109,000.00

16379 2010 Training and Seminar Site Costs MNPEPSC MN $ 115,000.00 $ 115,000.00

16380 Safety Brochure Distribution MNPEPSC MN $ 10,000.00 $ 10,000.00

16381 2010 MN Fishing Guide Safety Message MNPEPSC MN $ 16,200.00 $ 16,200.00

16382 Residential Propane Installation Guide MNPEPSC MN $ 16,000.00 $ 16,000.00

16383 2010 Safe Installation of New Energy Efficient Propane Applications Illinois PERC IL $ 398,385.00 $ 398,385.00

16385 Certified Employee Training Program 2010 Illinois PERC IL $ 137,775.75 $ 137,775.75

16386 Continuing Education/District Safety Meetings 2010 Illinois PERC IL $ 180,152.00 $ 180,152.00

16387 Continuing Education/Safety Meetings 2009 Illinois PERC IL $ 181,130.00 $ 181,130.00

16395 2009 Sunbelt Ag Expo Georgia PERC GA $ 12,250.00 $ 12,250.00

16396 CETP Courses 2010 New Jersey PERF NJ $ 75,000.00 $ 75,000.00

16398 2010 Safety and Training Program Indiana PERC IN $ 259,010.00 $ 259,010.00

16402 Duty-to-Warn Calendar/Propane Forklift Safety Flipchart Texas PEMF TX $ 55,000.00 $ 55,000.00

16405 Controlling Japanese Barberry New England PERF New England $ 5,000.00 $ 5,000.00

16406 PGANE ER Training 2010 New England PERF New England $ 17,300.00 $ 17,300.00

16433 Propane Safety Awareness Campaign 2009-2010 Kansas PERC KS $ 58,315.96 $ 58,315.96

16435 Filing of IRS Tax Form 990 — for 2004 New Jersey PERF NJ $ 3,000.00 $ 3,000.00

16447 Reimbursement of Audit Fees/Legal Fees & Insurance 2008-2010 Kansas PERC KS $ 16,372.92 $ 16,372.92

16462 Reimbursement for Foundation costs for Attorney Fees Propane Education Foundation of FL FL $ 2,380.00 $ 2,380.00

16463 Reimbursement for Propane Education Foundation of FL Meeting Propane Education Foundation of FL FL $ 521.50 $ 521.50

16464 South Dakota PERC 2008 Tax Return South Dakota PERC SD $ 339.20 $ 339.20

16468 Certified Employee Training Program Kentucky PERC KY $ 40,000.00 $ 40,000.00

16469 Travel for National Meeting in October Kentucky PERC KY $ 253.79 $ 253.79 (reimbursement for costs incurred due to cancelling Leadership summit)

16470 2009-2010 Safe Installations of Propane Appliances Program Georgia PERC GA $ 115,000.00 $ 115,000.00

16472 Regional Safety & Training, including CETP 2010 Wisconsin PERC WI $ 270,250.00 $ 270,250.00

16483 Educational Seminar — 2009 CO/NM Propane Convention Interwest PERC NM $ 15,000.00 $ 15,000.00

16485 WPGA/WPERC District Meetings 2010 Wisconsin PERC WI $ 10,000.00 $ 10,000.00

16487 Reimbursement for NPGA/PERC Leadership Summit 2009 Cancellation Ohio PERC OH $ 274.20 $ 274.20

16489 Missouri FY10 Safe Installations of Water Heaters Program Missouri PERC MO $ 296,759.45 $ 296,759.45

16495 Advertising Package Prior to September 11, 2009 North Carolina PERC NC $ 25,000.00 $ 25,000.00

16498 2009 Colorado Employee Training Program Colorado PERC CO $ 93,806.20 $ 93,806.20

$765,836.82$9,824,754.49REBATES TOTAL PARTNERSHIP TOTAL

16274 Bobtail Efficiency and Low Emissions Workshops 2009 Interwest PERC MT $ 15,750.00 $ 15,750.00

16279 2008 NW Fugitive Emissions Workshop Interwest PERC WA $ 4,878.45 $ 4,878.45

16280 2007 Rocky Mountain DOT Compliance Seminar Interwest PERC UT $ 9,506.53 $ 9,506.53

16281 2007 Consumer Awareness Project at the Orem Owlz Interwest PERC UT $ 5,925.00 $ 5,925.00

16282 2009 NAIA World Series Sponsorship Interwest PERC UT $ 6,645.00 $ 6,645.00

16283 Training Facility (based on rebate legacy #12234) North Carolina PERC NC $ 50,000.00 $ 50,000.00



16289 Directors & Officers Insurance — Rebate Exception Provision New Jersey PERF NJ $ 1,500.00 $ 1,500.00

16290 Operating Expenses — Iowa PERC Meeting Iowa PERC IA $ 207.97 $ 207.97

16292 2009 Montana Energy Share Interwest PERC MT $ 27,000.00 $ 27,000.00

16298 Propane Training and Education 2009 Mid-Atlantic PREF MD $ 84,000.00 $ 84,000.00

16300 Consumer Education & Awareness 2009 Mid-Atlantic PREF MD $ 45,000.00 $ 45,000.00

16316 2009 Moorcraft Fire School Interwest PERC MT $ 5,302.00 $ 5,302.00

16317 2009 Dillon and Shelby Fire Schools Interwest PERC MT $ 11,075.65 $ 11,075.65

16318 Directors & Officers Insurance Ohio PERC OH $ 1,483.00 $ 1,483.00

16320 Wyoming Horse Trailer Safety Workshops 2009-2010 Interwest PERC WY $ 16,500.00 $ 16,500.00

16324 2010 CETP and Safety Classes Iowa PERC IA $ 80,000.00 $ 80,000.00

16327 2009-2010 Newsletter Iowa PERC IA $ 30,000.00 $ 30,000.00

16330 Montana Duty to Warn Project 2009-2010 Interwest PERC MT $ 12,600.00 $ 12,600.00

16331 Wyoming Duty to Warn Project 2009-2010 Interwest PERC WY $ 11,200.00 $ 11,200.00

16335 Reimbursement for Foundation and Administrative Costs Propane Education Foundation of FL FL $ 2,310.00 $ 2,310.00

16345 Kansas State Fair Sponsorship 2009 Kansas PERC KS $ 38,000.00 $ 38,000.00

16346 Huff n Puff Hot Air Balloon Festival Promotion 2009 Kansas PERC KS $ 8,750.00 $ 8,750.00

16364 Propane Emergency Response and HazMat Training Western PERC CA $ 129,400.00 $ 129,400.00

16365 Air Quality Consultant 2010 Western PERC CA $ 30,000.00 $ 30,000.00

16366 California Training and Safety Education of Propane Vehicles 2010 Western PERC CA $ 45,000.00 $ 45,000.00

16367 Fuel Quality and Supply Consultant 2010 Western PERC CA $ 30,000.00 $ 30,000.00

16368 World Ag Expo 2010 Western PERC CA $ 17,500.00 $ 17,500.00

16369 Certified Employee Training Program (CETP) 2010 Western PERC CA $ 30,000.00 $ 30,000.00

16370 Low-Emission Equipment Rebate 2010 Western PERC CA $ 150,000.00 $ 150,000.00

16371 Western PGA Fire School 2010 Western PERC CA $ 16,000.00 $ 16,000.00

16372 California LIHEAP Consumer Safety Education Program 2010 Western PERC CA $ 1,000.00 $ 1,000.00

16373 California Propane Road Show 2010 Western PERC CA $ 10,000.00 $ 10,000.00

16374 California Regulator Rebate 2010 Western PERC CA $ 50,000.00 $ 50,000.00

16375 WPERC Filing of IRS Tax Form 990 — for 2008 Western PERC CA $ 3,175.00 $ 3,175.00


09 APPROVED REBATES



STATEMENT OF ACTIVITIES & CHANGES IN NET ASSETSSTATEMENT OF FINANCIAL POSITION

ASSETS

Current Assets

Cash and cash equivalents $ 10,217,489 $ 7,752,113

Accounts receivable 48,563 60,250

Investments, current portion 2,949,306 2,149,331

Assessments receivable 7,193,000 6,761,269

Inventory, net 977,518 985,553

Prepaid expenses 129,629 149,491

Total Current Assets 21,515,505 17,858,007

Property and Equipment

Office equipment 100,682 100,682

Office furniture 168,583 166,397

Computer equipment 3,698,149 3,018,249

Leasehold improvements 321,912 321,912

Less: accumulated depreciation (2,767,764) (2,271,064)

Total Property and Equipment, Net 1,521,562 1,336,176

Other Assets

Other 147,634 93,958

Investments, net of current portion 24,369,436 27,856,691

Total Other Assets 24,517,070 27,950,649

Total Assets $ 47,554,137 $ 47,144,832

LIABILITIES AND NET ASSETS

Current Liabilities

Accrued expenses $ 2,628,853 $ 3,168,146

State rebate obligation 9,966,240 8,005,024

Total Current Liabilities 12,595,093 11,173,170

Net Assets

Undesignated 7,577,467 11,523,596

Designated 27,381,577 24,448,066

Total Net Assets 34,959,044 35,971,662

Total Liabilities and Net Assets $ 47,554,137 $ 47,144,832

YEARS E NDE D D ECEMB ER 31, 2009 2008 YEARS E NDE D D ECEMB ER 31, 2009 2008

The Propane Education & Research Council’s (PERC) 2009 financial statements were audited and found in conformance with generally accepted accounting principles (GAAP) and an unqualified opinion was issued by Aronson and Company, of Rockville, Md. To request a copy of this report, contact PERC in writing at 1140 Connecticut Ave. NW, Suite 1075, Washington, DC 20036.

TOTAL OPERATING EXPENDITURES

$48,455,100

Revenue and Support

Assessment revenue $ 46,050,936 $ 46,616,153

Less: State rebates (9,210,134) (9,322,258)

Net assessment revenue 36,840,802 37,293,895

Investment income 649,480 1,757,495

Net fulfillment income (14,280) 582

Total Revenue and Support 37,476,002 39,051,972

Expenses

Programs

Consumer education and communication 10,333,205 17,357,745

Safety and training 3,327,266 2,525,898

Research and development 3,457,621 3,610,730

Engine fuel 6,913,561 2,057,578

Industry 1,769,736 2,191,819

Agriculture 3,505,323 2,292,312

National Energy Conversation 5,920,483 —

Total program expenses 35,227,195 30,036,312

General and Administrative

Administrative costs 2,632,893 2,550,490

Collection costs 133,054 277,258

Depreciation 495,478 494,644

Total general and administrative expenses 3,261,425 3,322,392

Total Expenses 38,488,620 33,358,704

Changes in net assets (1,012,618) 5,693,268

Net assets at beginning of year 35,971,662 30,278,394

Net assets at end of year $ 34,959,004 $ 35,971,662

Training 16.7%$ 8,112,500

Rebates 16.3%$ 7,881,600

Safety 14.8%$ 7,183,500

Program Labor 5.6%$ 2,730,000

Administrative Expenses 5.9%$ 2,840,000

Research & Development 30%

$ 317,000

$ 14,560,500

IT Expenses 0.7%

$ 1,049,000

Other Expenses 2.2%

$ 2,450,000

Program Support 5.1%

$ 1,331,000

Partnerships 2.7%

2010 OPERATING EXPENDITURE BUDGET

COUNCIL OFFICERS & MEMBERS

Roy W. WillisPresident and Chief Executive Officer

Kate Hutcheons-CaskinSenior Vice President and Chief Marketing Officer

James HarrisChief Financial Officer and Vice President of Administration

Kay HowellChief Information Officer

Steven WayneChief Commercial Officer

Brian J. FeehanVice President, Engine Fuel

Stuart FlatowVice President, Safety and Training

Tracy BurlesonDirector of Residential Programs

Gregory KerrDirector of Research and Development

Mark LeitmanDirector of Agriculture Programs

Maryann MalesardiDirector of Industry Programs

Ingrid BechardProjects Manager

Alicia DunnSenior Programs Manager

Courtney GendronCertified Employee Training Program Manager

Bill PlatzChairman Delta Liquid Energy Paso Robles, California

Joseph ArmentanoVice Chairman, Marketers Paraco Gas Rye Brook, New York

David ReganVice Chairman, Producers Targa Resources Inc. Houston, Texas

Tom ReddSecretary Martin Midstream Partners Kilgore, Texas

Paul GradyTreasurer Heritage Operating LP Florence, Kentucky

Doug AuxierAuxier Gas Inc. Batavia, Ohio

Eric BensonJ.S. West & Company Modesto, California

Lynn BourdonEnterprise Operating Products LP Houston, Texas

Gregg DigheroEnCana Oil and Gas USA Inc. Denver, Colorado

John EhlersSan Antonio, Texas

H. Joe GumpConocoPhillips Dacula, Georgia

Theodore JeffcoatInergy LP Rutland, Massachusetts

Sam McTierPropane Technologies LLC Lake Forest, Illinois

Gerry MiselGeorgia Gas Distributor Sandy Springs, Georgia

T. J. RinkeWilliams Midstream Tulsa, Oklahoma

Michael SheehanSheehan’s Gas Company Bird Island, Minnesota

Charles SnellingFogelsville, Pennsylvania

Tim StauftAux Sable Liquid Products Morris, Illinois

James StraughanBP North America Gas and Power Houston, Texas

Paula WilsonAmeriGas King of Prussia, Pennsylvania

David WunchSemStream LP Tulsa, Oklahoma

David HarrisWeb Manager

John L. KerekesSenior Contracts Manager and Counsel

Anna W. LombardoMeetings Manager

Brandon RobinsonProjects Manager

Theresa RyanOffice Manager/Executive Assistant to the President and Chief Executive Officer

Ambrose WalkerDatabase Manager

Gregg WalkerEditorial and Publications Manager

Grace WillisProjects Manager

Jeremy WishartProjects Manager, Engine Fuel

Vincent SibiliaIndustry Programs Coordinator

Jessica DaltonExecutive Assistant to the Senior Vice President and Chief Marketing Officer

Maria PassarellaAdministrative Assistant

Valerie TossasAdministrative Assistant

Gabriela LoeraOffice Assistant

PERC STAFF

PROPANE EDUCATION & RESEARCH COUNCIL

1140 Connecticut Ave. NW, Suite 1075

Washington, DC 20036

202-452-8975 ph

202-452-9054 fx

propanecouncil.org

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