Subscribe to the PERC Update newsletter

    Archives

    Back to press releases

    PERC Adopts Five-Year Strategic Plan and 2008 Budget with a Focus on Marketing and Commercialization

     

     Download PERC Adopts Five-Year Strategic Plan and 2008 Budget with a Focus on Marketing and Commercialization 


    Washington, DC (December 14, 2007) — The Propane Education & Research Council (PERC) voted to adopt a five-year strategic plan and its 2008 budget at a meeting December 6-7 in Houston, TX. Both documents support PERC’s increased focus to reach builders and develop and commercialize propane technologies.

    The $47.6 million budget for 2008 maintains the five-tenths cent ($0.005) assessment per gallon of odorized propane. A summary of the approved 2008 budget is as follows:

     Approved 2008 Budget

    Revenues  $ 47,620,000 
    Expenditures    
       Administrative              $  2,563,000   
       State Rebates             $  9,284,000  
       Partnerships                $  1,571,000  
       Consumer Education         $18,226,000 
       Engine Fuel                 $ 3,931,000  
       Research and Development    $  3,930,500  
       Safety & Training         $  3,294,000  
       Agriculture                 $  1,901,000  
       Industry Programs      $  1,073,000  
       Other Expenses          $  1,001,000  
       General Program Costs $  2,171,000   
       Discretionary Grant Fund $  9,246,500    

    The Council’s Market Development Task Force recommended creating the discretionary grant fund to provide for future PERC programs following completion of the commercialization study now underway and the request for proposals for marketing, advertising, and communications support to be released in early 2008. “This new budget component is a temporary action,” said Roy Willis, PERC President and CEO. “We expect to deploy these funds in 2008, but want to complete our review of both changing market conditions in the residential sector and other opportunities for the propane industry to promote propane use in other markets.

    The Council also approved a 2008-2012 strategic plan, which expands PERC’s role in helping commercialize new products, appliances, and technologies. In the development of the plan, the Council engaged the National Propane Gas Association, the Gas Processors Association, state propane gas associations, and industry leaders. The plan was also distributed to the industry at large with a survey to obtain feedback from propane marketers.

    “We worked closely with the industry to develop PERC’s five-year strategic plan, and the survey showed overwhelming support for the direction laid out in the plan for each of PERC’s mission areas and for increased efforts to support bringing new propane technology to the marketplace,” Willis said. “Propane can help America meet many of its energy and environmental needs, and this plan is focused on developing and educating consumers about new and improved propane-powered solutions.”

    In other Council business:

    • Harris Interactive presented its initial findings on the consumer education campaign and initial results of a new online survey of homebuilders and residents who live in a propane zip code. Builders are hearing propane’s good value and environmental messages and are recommending the fuel to customers, even as prices are rising. The industry is encouraged to continue its outreach to builders and to also monitor the popularity of geothermal energy.
    • The Council voted to support the industry’s 2008 consumer education activities, including an advertising campaign that will reach consumers and homebuilders, selling propane on its values of reliability, good value, and environmental friendliness.
    • The Safety & Training Advisory Committee presented a review of static electricity discharge and its implications for the propane industry. The Council approved funding to educate the industry on the subject. The Council also voted to develop a Certified Employee Training Program (CETP) E-Learning DVD on vapor distribution in residential settings.
    • In an effort to support the Council’s mission to commercialize propane technology, projects were approved to develop a low-emission propane mower and a propane-fueled method to control soil nematodes on farms.
    • To support technology within the industry, the Council approved projects to test underground propane tank coatings and to develop a handheld water detector for propane.
    • The Council approved funding to support the second year of the industry’s partnership agreement among PERC, the National Propane Gas Association, and the Gas Processors Association. The partnership supports joint efforts to enhance codes and standards collaboration, technology development, and the Capital Action Program designed to educate opinion leaders and decision makers in Washington, D.C., on propane, the industry, and its role in the U.S. economy.

    The Council approved funding for the following grants:


    Agriculture
    DOCKET 12420
    – Batchen Stinger Steam Weeder – Engineering Design and Preparation of Detailed Drawings, $178,565
    DOCKET 12421 – 2008 Agriculture Communications, $407,500
    DOCKET 12422 – 2008 Agriculture Project/Partner Development & Support, $136,250
    DOCKET 12423 – Develop and Test a Propane-Fueled Means to Control Soil Nematodes: Phase 2, $434,503
    DOCKET 12429 – Developing a Training Program for Maintenance and Repair of Stationary Propane Engines in Agriculture, $88,170
    DOCKET 12430 – Propane Use and Opportunity Survey in the Agriculture Sector, $63,675


    Consumer Education
    DOCKET 12459
    – 2008 Residential Advertising Program (Builder/ Homeowner), $9,050,000
    DOCKET 12472 – 2008 Residential Media Outreach, $350,000
    DOCKET 12474 – 2008 Builder Education and Partnerships, $475,000
    DOCKET 12473 – 2008 National Association of Homebuilders (NAHB) Builder 20 Clubs, $300,000
    DOCKET 12476 – 2008 Industry Communications & Support, $370,000
    DOCKET 12475 – 2008 Campaign Extension Program, $425,000
    DOCKET 12460 – 2008 MaRC/ Propane Catalog Merger, $191,850
    DOCKET 12477 – 2008 Media Monitoring and Reporting, $80,000
    DOCKET 12467 – 2008 Consumer Education Advisory Committee, $150,000
    DOCKET 12516 – Marketing/ Communications RFP Management, $49,400

     

    Engine Fuel
    DOCKET 12463
    – Engine Fuel Advisory Committee Operating Budget, $120,000
    DOCKET 12465 – Customer Base Fleet Market Analysis, $53,600
    DOCKET 12466 – Development and Commercialization of an EPA-Certified (Blue Sky) Zero Turn Radius Mower, $90,000

     

    Industry Programs
    DOCKET 12461 – 2008 Outreach to States, $61,500
    DOCKET 12462 – 2008 Industry Trade Shows & Conventions, $240,000
    DOCKET 12471 – 2008 Market Metrics Initiative, $531,330
    DOCKET 12518 – Development of a Commercialization Process, $111,000


    Research and Development
    DOCKET 12454 – 2008 Research and Development Oversight and Advisory Committee Support, $208,000
    DOCKET 12455 – Provide Technical Communications Services to PERC’s R&D Advisory Committee, $120,000
    DOCKET 12469– Testing and Evaluation of Underground Propane Tank Coatings, $174,610
    DOCKET 12470 – Design a Portable Handheld Water Detector for Propane, $213,500

     

    Safety & Training
    DOCKET 12457
    – Static Discharge Outreach, $126,050
    DOCKET 12431 – CETP E-Learning, Vapor Distribution, Production, $1,397,795
    DOCKET 12426 – 2008 STAC Support, $139,100
    DOCKET 12427 – 2008 Safe Grilling Campaign, $187,500
    DOCKET 12428 – 2008 CETP Support, $163,715
    DOCKET 12468 – CETP Certification Brochure, $10,648

     

    State Rebates
    The staff approved 32 rebates from nine states based on the replicated rebate process. The total amount approved was $1,226,146. Three states requested rebates under the Consumer Education Partnership with States Program totaling $60,295.

    The Council will next meet on a February 7, 2008 conference call.