PERC Invites Public Comment on Proposed State Rebate Allocation Methodology

Washington, DC (February 24, 2006) — The Propane Education & Research Council invites the propane industry and interested members of the public to comment on the Council’s state rebate funding methodology.

In response to industry concerns about the accuracy of the American Petroleum Institute’s annual Sales of Natural Gas and Liquefied Refinery Gases survey, the Council retained Energy and Environmental Analysis, Inc. to review the technical aspects of the survey and recommend changes that would enhance the reliability of the survey results.  Working with API and another contractor, EEA observed that past surveys failed to adequately account for odorized propane transfers between PADD by truck and rail. Correcting this error in the 2004 survey resulted in significant shifts in the total gallons reported state by state and, as a consequence, will significantly change the allocation of rebate funds between states.

In order to ameliorate the impacts on state rebate funding, EEA recommended using a three-year rolling average of the state odorized propane sales percentages as reported by the API survey. The rationale for this recommendation is stated in the attached memorandum.

Please send comments no later than 5 p.m. Eastern Time on March 24 to:

Propane Education & Research Council
Industry Comment on Policies, Rules, and Procedures
Attention: Sonethia Adams, Industry Programs Coordinator
1140 Connecticut Avenue, NW, Suite 1075
Washington, D.C. 20036

 Comments may also be faxed to 202-452-9054 or sent by email to