March 27, 2003 - March 28, 2003 Atlanta, GA

Propane Education & Research Council

March 27-28, 2003

Atlanta, GA

MINUTES

Proceedings for March 27, 2003

Chairman Walter Cressman called the meeting to order. Councilors in attendance were Tom Nunan, Tom Jaenicke, David Lugar, Ralph Rooney, John Kamps, Jim Berteslymyer, John Gawronski, David Wunch, Curtis Donaldson, Ken Green, Milford Therrell, Bruce Toellner, and John Ehlers.

Chairman’s Report

Chairman Cressman welcomed new Council Member Mr. Lugar, who was later elected unanimously as the vice chairman representing marketers. Mr. Cressman then reported on his recent travel and speaking opportunities on behalf of the Propane Education & Research Council (PERC). He indicated that at these meetings he had voiced support for increasing the assessment to the maximum amount of five tenths of a cent per gallon. He said he welcomed the dialogue that the Council would have on the issue. Mr. Cressman then called upon President Roy Willis to propose amendments to the December and January Council’s minutes. Mr. Willis stated that the December 2002 minutes should show that a motion to table Docket 10875 was approved. In addition, the minutes should show that the amount authorized for Docket 10874 is $13,515,000 and the amount authorized for Docket 10846 is $255,000. A motion was made, seconded, and approved to adopt the December 2002 minutes with these amendments. Concerning the Council’s January 16, 2003 conference call minutes, Mr. Willis noted that two request for proposals (RFP) should be assigned docket numbers. (Docket 11031 was subsequently assigned for the workplace injury study RFP and Docket 11028 was subsequently assigned for the Propane Market Metrics Initiative RFP.) A motion was made, seconded, and approved to adopt the January 2003 conference call minutes with these amendments.

Mr. Cressman called upon Mr. Kamps to give a report on the PERC Audit Committee. Mr. Kamps recommended that the Council adopt the new investment policy as stated in their handouts. A motion was made, seconded and approved to do this. Mr. Kamps also recommended that the Council adopt the new refund policy. A motion was made, seconded and approved to do this. Mr. Kamps then informed the Council that a new reporting form has been developed that will require all resellers of propane to report on

how many gallons of propane they sold and also if no gallons were sold. A motion was made, seconded, and approved to accept this change. Mr. Kamps then called upon Jack Mallinger, PERC director of finance and administration, to give a report on PERC’s financial controls. Mr. Mallinger stated that while the financial controls in place were good, some improvements had been identified and would be made.

Mr. Cressman then announced the formation of an Assessment Collection Task Force that will be charged with reviewing industry data to determine if our assessment collection process is effective in collecting the assessment on all odorized gallons. This task force will recommend actions that the Council will take to make sure that all assessments are paid, Mr. Cressman requested approval of the assessment collection task force and to appoint 3 members to this task force. The approval of the task force was seconded and approved. Mr. Lugar will serve as chairman. Other councilors who were appointed to serve on the task force include: Mr. Gawronski, Mr. McAdams, and Mr. Paul.

Counsel’s Report

Mr. Willis informed the councilors that federal government approved a trademark for the Council’s Propane. Exceptional Energy theme.

Treasurer’s Report

Mr. Ehlers reported on PERC’s financial position. Mr. Ehlers requested the approval of the treasurer’s report. A motion was made, seconded, and approved.

Vice Chairman’s Report – Producers

Mr. Delay gave a report to the Council on the state of propane inventories, prices, and other issues affecting supply.

President’s Report

Mr. Willis gave an abbreviated version of his report. He announced to the Council that he would go into detail during the New Business portion of the meeting. Mr. Willis announced that the Council should be more proactive and streamline the funding process to allow the committees to better focus on their respective roadmaps and the Council’s strategic plans. Mr. Willis recommended replacing formal funding requests with project summaries that describe the project and the amount of funding anticipated. The appropriate advisory committee would then review the summaries to determine whether or not the proposal should be expanding its scope, or request that the applicant submit a fully developed funding request, or issue an RFP. In making its decision, the advisory committees would determine if the project was within their strategic plan and whether it was a relative priority. Considerable discussion took place concerning this proposal. Mr. Willis also recommended that beginning in 2004, Council meetings highlight a single mission area. This would focus discussion on one area and all funding requests for that area would be taken up at those meetings.

Since the last Council meeting, Mr. Willis said he issued a presidential grant of $5,000 in response to a request from the National Propane Gas Association (NPGA) to sponsor an EPA Region 3 Emergency Preparedness and Prevention Conference. Mr. Willis also stated that he signed a letter to the Department of Energy supporting a solicitation application by current technologies corporation, which is working on a proposal that would be funded by the DOE to assess the economics and the performance of fuel cell technology as it currently exists. PERC has agreed to join with DOE in recommending this project, providing that DOE includes propane fuel cells as part of the study.

Grant Proposals Recommended for Tabling

Docket 10840 University of Kentucky Research Foundation Project Short Title: Improved Thermal Comfort of High-value Breeding Animals

(Agriculture) Requested Amount:

$669,098

Docket 10855 University of Kentucky Research Foundation Project Short Title: Summer Cooling of Stored Grain Using Propane (Agriculture)Requested Amount:$449,409

Docket 10948 John Deere Ottumwa Works Project Short Title: Propane-Fueled, Direct-Fired Hay Re-hydration System

(Agriculture) Requested Amount:

$700,000

Docket 10949 Osborn & Barr Communications Project Short Title: National Propane-Fueled Tractor Research (Agriculture) Requested Amount:$20,000

Docket 10962 Propane Education and Research Council Project Short Title:

Facilitation and Communication Skills for Trainers – Pilot Session (Safety and Training)

Requested Amount:

$110,000

Docket 10967 Marathon Engine Systems Project Short Title:

Conversion and Demonstration of Ecopower Micro-CHP to U.S. utility grid configuration (Research and Development)

Requested Amount:

$103,000

Docket 10972 Parnell, USA, Inc Project Short Title:

Development of a Dedicated Closed-Loop Propane Conversion System For Small Off Road Engines (25-50 hp) (Research and Development/OTR)

Requested Amount:

$76,838

Docket 10974

Gas Technology Institute

Project Short Title:

Design, Testing, and Verification of an Advanced Integrated Energy System at a National Hotel Resort (Test and Verification Program Expansion). (Research and Development)

Requested Amount:

$191,131

Docket 10977 Propane Vehicle Council Project Short Title: Propane Use and Expansion in Agricultural

Engine Applications (Agriculture) Requested Amount:$49,750

Docket 10982 Energy International Inc Project Short Title: Propane Industry Handbook (Consumer Education) Requested Amount:$293,600

Docket 10985 Texas Railroad Commission (AFRED) Project Short Title: Market Study for Propane Utility Tractor (Agriculture) Requested Amount:$110,000

Docket 10986 IdaTech, LLC Project Short Title: Propane Fuel Cell System Development, Integration

and Demonstration for Recreational Vehicle (RV) Fuel

Cell Power Systems (Research and Development) Requested Amount:$501,465

All the above dockets were moved for tabling. A motion was made, seconded and approved.

Grant Proposals Recommended for Disapproval

Docket 10797 TeleflexGFI Control Systems, Inc. Project Short Title: Impacts of Propane Fuel Quality on New Generation LSI Engine

Technology Requested Amount:

$900,000 (Phase 1-$435,000; Phase 2-$465,000)

Docket 10858 Bi-Phase Technologies, LLC Project Short Title: 2004 E350/E450 Shuttle Bus Conversion

(Research and Development/OTR) Requested Amount:$267,000

Docket 10860 Product Stewardship Institute Project Short Title: Propane Tank Product Stewardship Project (Safety and Training)Requested Amount:$77,111

Docket 10881 Consulting Solutions Project Short Title:

Hybrid-electric Bus Technology and Demonstration Vehicle Development (Research and Development/OTR)

Requested Amount:

$259,700

Docket 10944 IMPCO Technologies, Inc. Project Short Title:

Field Test Forklift/Industrial Engines to Comply with 2004 and ‘07 CARB and EPA Emission Regulations (Research and Development/OTH)

Requested Amount:

$160,000

Docket 10945 IMPCO Technologies, Inc. Project Short Title:

Development and Commercialization of an Advanced LPG Forklift Fuel Metering System (Research and Development/OTH)

Requested Amount:

$42,000

Docket 10964 Anderson Associates Project Short Title:

MY 2003 Propane Emissions and Conversion Kit Research (Research and Development/OTR)

Requested Amount:

$42,000

Docket 10965 Anderson Associates Project Short Title:

Provision of Comments on EPA Emission Models: MOBILE6.2 and MOVES (Research and Development/OTR)

Requested Amount:

$11,200

Docket 10966 Northeast Sustainable Energy Association (NESEA) Project Short Title:

Expanding the Market for Propane as an Transportation Fuel Through Public Education (Consumer Education)

Requested Amount:

$25,000

Docket 10968 Clean Fuel Generation, LLC Project Short Optimization and prototype of CFG propane components and fuel cell

Title: system for 5kW (Research and Development) Requested Amount:

$390,000

Docket 10969 Gas Technology Institute Project Short Title:

Fuel Quality Sensor Development and Implementation (Research and Development)

Requested Amount:

$250,000

Docket 10970

Parnell, USA, Inc.

Project ShortTitle:

The Diesel Conversion System (DCS) Project: The development, installation and certification of a propane injection system (dual-fuel) and a dedicated propane conversion system for diesel engines. (Research and Development/OTR)

Requested Amount:

$249,102

Docket 10971 Parnell, USA, Inc. Project Short Title:

Development of a Multi-Port Propane Fuel Injection for Dedicated and Bi-Fuel Vehicles (Research and Development/OTR)

Requested Amount:

$148,116

Docket 10975 Antares Group, Inc. Project Short Title:

Propane Industry/Department of Energy Task Force Initiative (Research and Development)

Requested Amount:

$76,282

Docket 10976 Antares Group, Inc. Project Short Title:

Assessment and Demonstration of Propane Fuel Cell Greenhouse Concept (Agriculture)

Requested Amount:

$246,466

Docket 10981 Energy International, Inc. Project Short Title: Propane Data Development (Consumer Education) Requested Amount:$66,820

Docket 10984 Battelle Columbus Operations, Battelle Memorial Institute Project Short Title:

Propane Desulphurization Techniques for Fuel Cells (Research and Development)

Requested Amount:

$350,000

Advisory Committee Reports

Research and Development Advisory Committee (RDAC). Greg Kerr, PERC research manager, provided an update on RDAC’s recent activities. Mr. Kerr asked approval from the Council for two requests for proposals (RFP). The first RFP is for a Propane Fuel Cell Assessment. (Docket 11071 was subsequently assigned.) The second RFP is for Analyzing Desulphurization Techniques. (Docket 11072 was subsequently assigned.) Mr. Cressman requested a motion to authorize the issuance of both RFPs. A motion was made, seconded, and approved. Mr. Greg Kerr then presented information regarding an RFP that the fuel quality task force seeks approval to issue. The Council action took action on this during New Business.

Docket: 10866Grant (Research and Development)Applicant: ThermoDrive Technology, Inc. Short Title: Propane Fired Heat Pump Pool Heater Amount Approved:

Not To Exceed $15,000

Summary: Complete design and development of a prototype 100,000btu/h propane fired heat pump pool heater that competes with electric heat pump pool heaters. ThermoDrive Technology Inc. has developed a propane fired heat pump design that is ideally suited for pool heater applications. This high efficiency unit represents new technology unlike any other ever utilized in the heat pump and pool heater industry and represents a radical departure in technology from either a propane burner or internal combustion engine driven system. This unique low speed drive unit transfers heat from the burning fuel into a heat exchange fluid that vaporizes into a high pressure vapor that drives a slow cycling (2 seconds per stroke) ceramic piston drive unit. This vapor is subsequently condensed into a liquid then returned to the heat generator (closed loop cycle). Heat from the heat pump refrigeration cycle and other internal heat components (recuperated) to supplement the propane fuel source and hence greatly increase the operating efficiency. Current pool heater efficiencies nearly double, while equipment cost remain competitive with electric units. Three pre-production units are produced for demonstration and testing. Performance tests are completed at Cleveland State University. Safety, emission and certification

testing are also completed. This phase of the development requires approximately 180 days for completion.

Recommendation: Approve with modifications (Not to exceed $15,000)RDAC Comments: RDAC recommends funding a portion the project get further information on the

technology, costs, and potential market. Electric heat pump pool heaters are efficient enough to be more cost effective than direct-fired gas pool heaters. The applicant may have technology that is efficient enough to compete with the newer electric heaters; hence, RDAC recommends funding a portion of the project that includes gathering more detailed information on the technology compared to other companies and on the market potential. PERC staff will work with the applicant to receive actual cost information for the revised scope.

Mr. Cressman requested a motion to authorize funding for Docket 10866. A motion was made, seconded, and approved.

Docket: 10954 Grant (Research and Development)Applicant: Center for Environmental Energy Engineering, University of

Maryland Short Title: Demonstration of Feasibility of Propane in 2nd Generation CHP

Systems Amount Approved:

$35,000

Summary: The use of micro-turbines and/or engines together with waste heat utilization for heating and cooling (CHP), can lead to considerable savings in energy consumption. This technology has the potential to address the uncertainties in the electric power market and can win market share for the propane industry. This project aims at evaluating and demonstrating the performance potential of propane in an existing CHP Integration Research Facility at the University of Maryland. Two systems are available: (1) Engine-driven power generation set with a liquid desiccant system and (2) micro-turbine with absorption chiller and desiccant system. The facility operates currently on natural gas and will be operated with propane and operated for one month under funding from this grant for testing and performance demonstration.

Recommendation: Approve RDAC Comments: Demonstrating propane’s viability in cooling, heating, and power (CHP)

applications gives propane good exposure to government agencies and the CHP industry. Continued funding in this project ensures PERC is part of a research consortium that includes Broad USA, Inc., the Department of Energy, the Oak Ridge National Laboratory, Capstone, Honeywell, etc. Being involved with the consortium will keep the propane industry abreast of the latest developments in CHP applications.

Mr. Cressman requested a motion to authorize funding for Docket 10954. A motion was made, seconded, and approved.

Docket: 10979 Grant (Research and Development)Applicant: eMobility International, LLC. Short Title: National Parks Initiative Amount Approved:

$95,000

Summary: The Propane Industry/National Parks Initiative has identified numerous ways in which the propane industry and the national parks can work together. As hoped, these interactions have already established valuable relationships and identified many promising new projects including seven specific ones funded by PERC in 2002. The results of these projects, along with the nationwide National Parks propane-use survey currently under way, will undoubtedly identify many additional potential national park projects that advance the propane industry’s goals of increasing consumption and enhancing consumer awareness. Docket 10408 was designed to test the ripeness and magnitude of opportunities awaiting the propane industry within the national parks. On the basis of work performed to date, a more complete understanding of the opportunities to the propane industry is available, and valuable experience on how to implement such programs has been gathered. While remaining funds in Docket 10408 will be used to complete the process for developing the national park relationships and for developing an inventory of potential propane opportunities available within the national park system, the purpose of this grant proposal is to complete assessments and implementation strategies of specific opportunities. These include comprehensive multiple-propane-use projects in high-visibility park settings such as heating, cooling and hot water use in buildings, cooking and industrial use, transportation, and power generation.

Recommendation: Approve RDAC Comments: This project is a continuation of the good work completed by Ira Dorfman and

eMobility in the National Parks. Good propane public relations successes have been generated because of the previous work completed by the applicant. RDAC recommends that PERC staff work with eMoblility to add specific deliverables to the project.

Mr. Cressman requested a motion to authorize funding for Docket 10979. The motion was offered, seconded and approved.

Docket: 10983 Grant (Research and Development)Applicant: Propane Education & Research Council Short Title: Worldwide Technology Coordination 2003 Amount Approved: $73,000 Summary: The WLPGA GLOTEC is coordinating work in several technology

areas, such as gas air-conditioning and

advanced tank materials, which could benefit propane-marketing efforts in the United States. These are also 2 key areas of research that were identified in the R&D Technology Roadmap. For 2 years, PERC’s R&D program has been coordinating with worldwide LPG development efforts both directly and through the GLOTEC activities. This saves an estimated $1million in funding by PERC of independent and duplicate research programs through leveraging and monitoring other research and development

projects that have already or are currently being conducted worldwide. The purpose of this project is to continue this international technology-sharing strategy to maximize R&D technologies and maximize R&D funding results.

RDAC Recommendation:

Approve

RDAC Comments: This is a continuation of the work completed for Docket 10393. It is important to gain knowledge from the rest of the world to help determine the R&D needs of the U.S. propane industry.

Mr. Cressman requested a motion to authorize funding for Docket 10983. A motion was made, seconded, and approved.

Docket: 10987 Grant (Research and Development)Applicant: Propane Education & Research CouncilShort Title: PERC R&D Project Oversight 2003Amount Approved:

$267,120

Summary: PERC’s R&D Program is now in its fifth year of funding approved R&D projects. There are currently more than 40 projects under way with a PERC funding total of nearly $10 million. An R&D project is normally designed 6-9 months before review and approval by PERC, and can often take 6-18 months to complete. Many new issues develop in this term, and modifications in the course of a project can often provide significant improvements. To date, the RDAC, R&D Manager, and Consulting Solutions, have monitored ongoing projects. This has resulted in several improvements and avoided several problem areas in projects. This proposal would expand these efforts to match the size and optimize the performance of the current R&D portfolio. It would increase the number of on-site project review meetings from 8 in 2002 to 36 in 2003. The overall purpose of this proposal is to provide additional, direct oversight resources to effectively manage and optimize the ongoing portfolio of R&D projects of PERC.

Recommendation: Approve with modificationsRDAC Comments: RDAC recognized the applicant’s role in maintaining PERC’s R&D Program to date.

To address any perceived conflicts of interest, RDAC recommends that the applicant not submit any proposals with Consulting Solutions named as the main contractor or a subcontractor without first gaining approval from the committee and PERC staff. The applicant will work closely with staff to determine projects for close monitoring. Consulting Solutions will provide monthly project reports and will only be reimbursed for actual travel expenditures.

Mr. Willis recommended that the Council approve Docket 10987 with a modification that PERC be designated as the applicant and therefore the recipient of the funds, and that the president be authorized to carry out the work described in the funding request utilizing the vendor named in the docket or other such vendor as maybe necessary to meet the operation and management needs of the Council.

Mr. Cressman requested a motion to authorize funding for Docket 10987. A motion was made, seconded, and approved.

Change Order Request

Mr. Cressman announced that there was a change order request to Docket 10873 for an additional amount of $3,000 for the funding of the 2003 trade show presentations. A motion was made, seconded, and approved to do this.

Agriculture Advisory Committee. Paul Culver, chairman of the Agriculture Advisory Committee (AAC) addressed the Council and gave an update on the committee’s work. Kate Caskin, PERC senior vice president, also addressed the Council on behalf of the committee and briefed the Council on the elements of Docket 10875, which was put together with the help of communications firm Osborn & Barr. Ms. Caskin discussed the merits of working with Osborn & Barr considering its experience of developing agriculture-specific communications programs for other industries.

Docket: 10875 Grant (Agriculture)Applicant: Osborn & Barr CommunicationsShort Title: Outreach Communications ProjectAmount Approved: $373,040 Summary: To commence the long-term process of increasing the use of

propane and gaining energy market share in the agricultural sector, an initial outreach communications program is vital to build incremental awareness and knowledge of the recently approved Propane Agriculture Technology Roadmap (Ag Roadmap), and the role the PERC can and does play in creating new marketing opportunities in the agricultural sector through new product research and broad-based communications. This proposal is a first step designed to initiate communications about the vision, strategic goals, technology strategies, and priority activities of the Ag Roadmap to agricultural producers, other agricultural influencers and organizations, and individual propane retailers. In addition, this proposal will begin the process of establishing mutually beneficial relationships between PERC and allied agricultural industry organizations and providing propane retailers with marketing information options regarding opportunities to increase communications with, and propane utilization by, members of the agricultural sector. Plus, the proposed communications strategies, activities, and messages for the agricultural sector will complement those previously developed for other propane target sectors.

This initial outreach communications project will be implemented through Dec. 31, 2003. A comprehensive Communications Action Plan developed incorporating the results of the National Agricultural Quantitative Research Study (completed in Docket 10839) is anticipated to commence on January 1, 2004, pending recommendation by the AAC and approval by the councilors. In the

meantime, this short-term outreach communications plan will begin the process of establishing the Ag Roadmap as the definitive industry guide for increasing the long-term utilization of propane by the agricultural sector, and set the table for long-term communications strategies built to increase propane utilization by this important market sector.

Recommendation:Approve AAC Comments: In December, this proposal was tabled by PERC and sent back to

the applicant for fine-tuning. This initial outreach communications project will be implemented through December 31, 2003. A comprehensive communications plan developed incorporating the results of the National Agricultural Quantitative Research Study (completed in Docket 10839, approved in December, 2002) is anticipated to commence on January 1, 2004, pending recommendation by the AAC to PERC. In the meantime, this short-term outreach communications plan will establish the roadmap as the definitive industry guide for increasing the long-term utilization of propane by the agricultural sector, and set the table for long-term communications strategies built to increase propane utilization by this important market sector.

Mr. Cressman requested a motion to authorize funding for Docket 10875. A motion was made, seconded, and approved.

Mr. Cressman announced that there was an open slot for the Vice-Chairman of Marketers. Mr. Lugar was nominated to fill the position. The nomination was offered, seconded and approved.

The meeting was adjourned for the day.

Proceeding for Friday, March 28, 2003

Mr. Cressman called the meeting to order. Councilors in attendance were Tom Nunan, Tom Jaenicke, David Lugar, Ralph Rooney, John Kamps, Jim Berteslymyer, John Gawronski, David Wunch, Curtis Donaldson, Ken Green, Milford Therrell, Bruce Toellner, John Ehlers, Denny Trautman.

Mr. Cressman called on Stuart Flatow for the Safety and Training report.

Safety and Training. Mr. Flatow introduced Sam Manam, who gave an update on the findings of phases I and II of the industry’s Incident Data Collection project. Mr. Flatow requested Council approval to revise a previously approved RFP to review selected NPGA-developed consumer safety materials for technical accuracy and communicative efficacy. A motion was made, seconded, and approved. The second action that Mr.

Flatow brought before the Council was to seek authorization for a request for proposal to retain legal services to review the accuracy of existing disclaimers on existing safety and training materials. (Docket 11047 was subsequently assigned to this work.) A motion was made to accept the RFP; the motion was seconded and approved. Mr. Flatow then asked for authorization to move forward with several methods to expand the Propane Emergencies Program to the industry at below current expenditures. Those methods include providing the facilitator guides on DVD and CD-ROM formats, charging shipping and handling fees for all materials, developing a three-hour propane emergencies program on DVD specifically aimed at marketers, and terminating national funding for train-the-trainer programs. A motion for authorization was made and seconded. (This work will be conducted under existing Docket 10589.)

Mr. Flatow also presented on various CETP issues including the draft management plan developed jointly by NPGA and PERC . In addition, both PERC and NPGA have developed a joint management oversight committee to serve as arbiters in the event of any contractual dispute. The Councilors were provided with a copy of the CETP management plan for approval. A motion was made, seconded, and approved with an amendment that the first four books of CETP would be completed and provided to PERC by no later than June 30, 2003.

Mr. Flatow also requested approval to seek a funding request for the printing of the CETP books 1-4, as well as the promotion and outreach, orientation sessions, and field-testing. Mr. Flatow requested that the Council authorize the executive committee to review the funding request in an expedited fashion on or about the first week of May. A motion was made, seconded, and approved to do this. (Docket 11070 was subsequently assigned to this work.)

Finally, Mr. Flatow requested authorization to develop an RFP to revise the current Dispensing Propane Safely program, on a DVD format, and to include a robust forklift operator safety module. The program would be promoted nationwide in a similar manner as the Alabama Propane Gas Association has done, and branded appropriately. A motion was made to approve the request for a RFP for the dispensing of propane safely video. The motion was seconded and approved. (Docket 11046 was subsequently assigned to this work.)

Docket: 10843 and attachment Grant (Safety and Training)Applicant: National Propane Gas AssociationShort Title: Fire Safety Analysis/Incident Response Plan/Incident Prevention Review Amount Approved:

$238,063

Summary: NPGA, working with NFPA and an outside consultant, proposes to develop a document providing a step-by-step analysis (in an easily understandable format) and checklists for use by propane marketers in preparing the written fire safety analysis/incident response plans. The level of detail to be included will be commensurate with the size and complexity of LP-Gas storage in the plant and will include examples. This analysis is required by the 2001 edition of NFPA 58 within

three years of the effective date of the edition.Recommendation: Approve STAC Comments: STAC voted 15-0, with two abstentions to recommend approval of this project

pending the applicant’s submission of an executive summary outlining the resolution of PERC’s concerns and issues brought up by the Western Propane Gas Association (WPGA). In response to this request, the applicant has provided the document that was reviewed by STAC members. (See attached document.) Accordingly, STAC maintains that there is a consensus that the applicant has met the spirit of addressing and resolving the issues raised by PERC and the WPGA. However, several STAC members cited the need for the applicant to be more specific regarding PERC’s retention of all copyrights to the project and suggested that this issue be handled contractually rather than allowing it to stall the project. In addition, Mary Reynolds communicated to staff her desire to have Rob Scott formally appointed to the “Fire Safety Analysis” task force.

Mr. Cressman requested a motion to authorize funding for Docket 10843. A motion was made, seconded, and approved.

Docket: 10963 (Safety and Training)Applicant: Propane Education & Research CouncilShort Title: Safety and Training On-Line ResourceAmount Approved:

$488,660 (reduced from the original request of $488,660 via the use of.)

Summary: The development of a safety and training on-line resource will advance, integrate, and concentrate support for industry safety and training activities, communications, and information in a time and cost-effective manner. It will also provide broad and intelligent resources of support that will be organized within an architecture that consists of several sections as defined by the industry’s safety and training mission, compliance, emergencies, training, leadership strategies, and consumer confidence. This online resource will be a high profile website that will gather and provide sensitive and vital data about its users and the thus, the industry in general. This data will allow PERC to further prioritize its funding activities as well as its ongoing two-way communications with the industry. To accomplish this, Council staff submitted an RFP to seven vendors. After carefully reviewing the proposals, as well as in-person meetings, Council staff decided to develop a team approach utilizing three vendors and incorporating their individual strengths and expertise.

Recommendation: Approve STAC Comments: STAC voted 17-0 to approve this proposal. The management education and

leadership subcommittee, chaired by Gary Wolf, Amerigas, cited this proposal as a number one priority. Additional comments included the ability to provide instant regulatory updates, as well as the acknowledgement that production costs will be reduced as new programs are provided on-line. When questioned about the cost of the project, PERC staff responded that it was indeed a large initiative that will require a team of approximately eight to ten professionals. The size of the project corresponds with the strategy to provide a single expandable on-line safety and training resource and database that would accommodate future on-line programs, such as CETP, as well as ensure proper integration among other PERC websites and databases. The project will also provide, at no additional cost, the framework for an on-line PERC resource catalog.

Note: In 2001 PERC approved a joint funding request (Docket 10559) for $79,500 to provide electronic compliance updates to its Propane Regulatory Compliance program to be posted on PERC’s website and other web-based compliance information. Realizing that PERC’s safety and training e-learning strategies were not

yet complete, the latter part of that funding request was never implemented. As such, the applicants have agreed to withdraw $65,700 of that funding request to be used for this proposal.

Mr. Cressman requested a motion to authorize funding for Docket 10963. A motion was made, seconded, and approved.

A motion was made to close Docket 10559 and return $65,700 to the Council and to fund the entire cost of the on-line resource at $488,660. The motion was seconded and approved.

Docket: 10978 (Safety and Training)Applicant: National Propane Gas AssociationShort Title: Revision/Update of Gas Check Inspection MaterialsAmount Approved:

$33,325

Summary: The GAS Check® inspection form and materials were last updated in 1996. Since that time, changes in equipment and systems, code requirements and industry practices indicate that a thorough review of content be conducted. Similar to the process in place with the CETP, the NPGA recommends that all material related to the inspection be reviewed and updated on a periodic basis.

Recommendation: Approve STAC Comments: STAC voted 17-0 to recommend approval of this proposal provided that a summary

that explains in outline form a strategic plan for the overall GAS Check® program accompanies it. This includes integration with STAC’s proposed safety and training on-line resource, as well as marketing and promotional strategies, and an evaluation on how the program should be administered and monitored, as well as participation requirements and updates. Several committee members stressed the need to begin the technical update process as soon as possible. Initial discussions and recommendations on the strategic plan will occur during the May ETS Committee meeting via an ETS task force that will include STAC and ETS members and PERC staff. The committee agreed that STAC would be responsible for providing the long-term strategy to PERC later this year. In addition, it is anticipated that the Safety and Training Liability Task Force will also provide guidance on this issue.

Mr. Cressman requested a motion to authorize funding for Docket 10978. A motion was made, seconded, and approved with the caveat that it be completed in approximately nine months.

Docket: 11031 (Safety and Training)Applicant: Propane Education & Research CouncilShort Title: Propane Industry Workplace Injury StudyAmount Approved:

An amount not to exceed $177,750

Project Summary: This proposed project will provide employers in the propane industry with information and benchmarks on the incidence and cost of workplace injuries and illnesses. The information and benchmarks are expected to provide employers with data and information to aid in evaluating the completeness and effectiveness of safety management systems, including safety, training and loss control initiatives.

This project will capture information on the types of injuries and illnesses that occur to workers in the propane industry, as well as the causes of the injuries and illnesses.

Data on the demographics (e.g., age, job function, years of service) and claim characteristics (e.g., day of the week, weather conditions, day of the week), as well as the cost of the injuries and illnesses, will also be captured via a review of workers’ compensation data.

Recommendation: Approve for an amount not to exceed $177,750

Mr. Cressman requested a motion to authorize funding for Docket 11031. A motion was made, seconded, and approved. A second motion was made to have staff provide a revised funding request to retain legal services to review the project and subsequent data.

Docket: 10980 Applicant: Propane Vehicle CouncilProject Short Title:

Forklift Maintenance and Training Program (Safety and Training)

Amount Approved:

$160,860

Project Summary:

In addition, ongoing education of forklift operators into safe procedures and refueling practices has been identified as a priority by the Council. The second component of this project proposes production of operator training material designed to provide comprehensive, user-friendly information on propane’s properties and characteristics, safe refueling practices, and safe handling of propane fuel systems on forklifts.

Mr. Willis suggested that the Council approve Docket 10980 with a reduction in a number of classes for the forklift training and include funding for the economic and environmental studies that the industry associations have been requesting. The amount $160,860 with $98,500 for the forklift training that would include six classes, curriculum update, promotion publicity instructor fees, and instructional materials. For the basic study $47,800 with oversight and policy coordination and travel $14,500 for a total of $62,360 and a grand total for the grant of $160,860. This project is targeted to training the mechanics of forklift fleet operators in order to maintain their own vehicles in compliance with the mission requirements.

Mr. Cressman requested a motion to authorize funding for Docket 10980. A motion was made, seconded, and approved. (See below)

Approve Docket 10980 with the following modifications,

Forklift Training Demonstration – Safety and Training

Curriculum update $15,000 Project coordination $18,000 Promotion, Publicity $ 6,000

Instructor fees $ 9,000 Instructional Materials $ 5,500 Travel and Classroom Rental $ 9,000 (or actual expenditures, if less)Gas Analyzer Equipment $36,000 (to be reimbursed by tuition) Subtotal $98,500

Propane Forklift Market Protection Study- Research and Development

Economic/Environment Impact Study$47,860 Oversight, Policy Coordination $12,000 Travel $ 2,500 (or actual expenditures, if less)Subtotal $62,360TOTAL $160,860

Consumer Education Advisory Committee. The consumer education team, led by CEAC Chairman Glenn Saunders (White Mountain Oil & Propane), reviewed numerous aspects of the 2003 consumer education campaign. The councilors approved revised criteria that will assist with the selection of 25 new local markets for TV and radio advertising in September. Advertising is currently underway in 22 local markets, in addition to the ads that are airing on national cable and satellite networks this year.

Senior Vice President Kate Caskin discussed a proposed plan to develop a system by which consumers can assess information about propane retailer locations on the PERC web site. The councilors supported the concept but asked CEAC members to finalize a plan for Council consideration in May. In addition, Communications Manager Tracy Burleson reported on PERC’s progress in the trades and Director of Industry Programs Kelley Maierhofer discussed the growing interest in the Consumer Education Partnership with States Program.

The councilors also heard detailed reports from communications firm Porter Novelli about the future of the advertising campaign and research firm Wirthlin Worldwide on measuring the effectiveness of the campaign.

Docket: 10869 Grant (Consumer Education)Applicant: Propane Education & Research CouncilShort Title: 2003 Industry Communications Amount Approved:

$586,000

Summary: Marketer and state organization participation and support is vital to the success of PERC’s marketing efforts. This mutually beneficial relationship is what provides the insight and ability to develop relevant, successful marketing campaigns. In 2003, the importance of that relationship will be underscored as both the advertising and public relations programs expand focus on local media markets. A continued effort to increase members’ participation in the program will be a key element of the Industry Communications Plan in 2003. Member participation leverages every national program dollar spent for maximum

effectiveness. By increasing participation and synchronizing the voice of propane into one, clear, consistent message, the industry wins.

CEAC Comments:

The CEAC recommends that this funding request be approved with modifications. In December, PERC asked the CEAC to revise the funding request to not exceed $600,000. The new total is $586,000.

Mr. Cressman requested a motion to authorize funding for Docket 10869. A motion was made, seconded, and approved.

Grant Reconciliation Management Report

Docket: 10293 Grant (Safety and Training)Grantee:Propane Education & Research Council Project: Safety and Training Educational Roadmap Action: This action de-obligates the remaining balance of $24,106

and reclassifies those funds to PERC’s general

treasury. Docket: 10388 (Safety and Training)Grantee:National Propane Gas Association Project: Propane Compliance Guidebook Action: Joint distribution of the Compliance Guidebook and the First

Ninety Days Program eliminated separate mailing expense.

This action de-obligates the remaining balance of $29,200

and reclassifies those funds to PERC’s general

treasury.

Mr. Cressman requested a motion to authorize the reconciliation for Docket 10293 and Docket 10388. A motion was made, seconded, and approved.

Industry Report. Kelley Maierhofer, PERC director of industry programs, gave the councilors an update on activities in her area. She then asked for Council approval of all the state rebate requests submitted and noted that Docket 11043 (below) was not included.

Docket: 11043 Rebate (Safety and Training)Applicant: Texas Propane Educational and Marketing Foundation Short Title: First Contact Safety Training

Amount Approved: $37,992.50 Summary: Propane front office staff, drivers and service people are

frequently the first point of contact with our customers. They

provide the first – and sometimes only - response to customer

questions about propane safety and about the benefits of

propane. The proposed half day training will equip these critical

personnel with the correct responses to common customer

safety questions, and provide a take-home flip notepad Propane

Gas Employee Guide with the answers to refer to in the

future. The training will be fast-paced, with frequent role-playing

and opportunities for audience questions, to help ensure the

information sinks in. Door prizes and other incentives will

encourage attendance. The goal is to train 150 “first

contact” industry personnel in the first year.

Mr. Cressman requested a motion to suspend the rules on rebates and approve Docket

11043 as a one-time exception. A motion was made, seconded, and approved.

The Council then proceeded to act on the entire remaining rebate requests, numbered consecutively as Docket 10955 through Docket 11027. A motion was made, seconded, and approved for these dockets. See below.

Ms. Maierhofer requested that the councilors review a new program granting the industry programs director and docket administrator permission to review and approve certain reimbursement requests from state entities, which will eliminate the need of the councilors to review such requests. The reimbursement requests will be taken from the states’ rebate funds, will not exceed $3,500, and will only pertain to expenses for travel to the NPGA/PERC Annual Conference with States and operating expenses. The state entity will be required to complete a 1-page document outlining their expenses and attach all relevant receipts. State entities must apply for reimbursement within 30 days after the annual conference or apply for reimbursement of operating expenses within 30 days after the end of that particular year the expense occurred. The director of industry programs and docket administrator will be responsible for overseeing the

implementation of program rules and keeping accurate record of expenses on the states’ detailed rebate expenditure spreadsheets. A report outlining the expenditures to date of the state entities related to this program will be provided to the councilors at each meeting.

The motion was offered amending the recommendation laid out by Ms. Maierhofer to give authority to Mr. Willis to approve certain reimbursements. A motion was made, seconded, and approved.

Staff Rebate Recommendations

Docket: 10955 Rebate (Safety and Training)Applicant: Missouri Propane Education & Research Council Short Title: CETP 2003 Amount Requested:

$87,700

Recommendation: Approve Summary: Teach CETP classes statewide including Basic Principles and

Practices, Appliance, Delivery and Dispensing classes. Forty-four classes total for calendar 2003, when Missouri begins teaching the new modules for the first time.

Docket: 10956 (Consumer Education)Applicant: Missouri Propane Education & Research Council Short Title: TV Campaign 2003 Amount Requested: $229,233 ($168,156 Rebate, $61,077 Partnership Recommendation: Approve Summary: Local market TV campaign that duplicates national campaign. Dir. of IP Comments:

The applicant has requested more money than is available, but has

been contacted and approves of receiving the balance in fourth

quarter of 2003 when 2003 dollars are available.

Docket: 10957 Rebate (Safety and Training)Applicant: Missouri Propane Education & Research Council Short Title: Mobile propane dispensing trainer Amount Requested:

$7,500

Recommendation: Approve

Summary: To build a mobile propane dispensing station that can be used to provide hands-on training to supplement “Dispensing Propane Safely” curriculum.

Docket: 10958 Rebate (Consumer Education)Applicant: New England Propane Foundation Short Title: Consumer Awareness of Propane Amount Requested:

$30,000 ($20,000 Rebate, $10,000 Partnership)

Recommendation: Approve Summary: Utilize council produced television and radio advertisements to

enhance consumer awareness of propane in Rhode Island, Northeastern Connecticut, and Southeastern Massachusetts by broadcasting these advertisements on Channel 12, the local CBS affiliate, local cable TV and WCTK 98.1, a leading country music station in the Providence market

Docket: 10959 Rebate (Consumer Education)Applicant: Georgia Propane Education & Research Council, Inc. Short Title: Young Farmers Convention Amount Requested:

$3,800

Recommendation: Approve Summary: Representation of the propane industry at this statewide

convention. Approximately 1,000 attendees throughout the state. We are one of 58 exhibitors at this two-day event. We will utilize our tabletop exhibit promoting all ads from the consumer awareness campaign.

Docket: 10960 Rebate (Consumer Education)Applicant: Georgia Propane Education & Research Council, Inc. Short Title: Advertising in Georgia Builder Magazine Amount Requested:

$10,000 ($7,167 Rebate, $2,833 Partnership)

Recommendation: Approve Summary: The Georgia Builder Magazine has an approximate mailing list of

4,000. We will rotate the various builder ads generated by PERC for this quarterly publication.

Docket: 10961 Rebate (Industry Programs)Applicant: Georgia Propane Education & Research Council, Inc. Short Title: Annual 990 Tax Return Preparation and Financial Review Amount Requested:

$2,600

Recommendation: Approve Summary: The IRS requires all not-for-profit entities to file a 990 return

when their revenues are in excess of $25,000 and our bylaws require the financial review.

Docket: 10988 Rebate (Consumer Education)Applicant: Wisconsin PGA PERC, Inc Short Title: Advertising Campaign 2003 Amount Requested:

$101,000 ($72,666.67 Rebate, $28,333.33 Partnership)

Recommendation: Approve Summary: The Wisconsin PERC, Inc. has been very fortunate in the past year

to be one of the states selected for the mass advertising campaign conducted by Porter Novelli. The Wisconsin PERC Board feels that the campaign must be expanded to the northern part of the state in the year 2003 to have full advertising coverage in Wisconsin. We will use Wisconsin rebate dollars plus partnership dollars to contract with Porter Novelli to expand our advertising campaign, and we will also conduct a marketing survey to monitor the results of this advertising campaign

Docket: 10989 Rebate (Consumer Education)Applicant: Illinois Propane Education & Research Council Short Title: Consumer Awareness 2002 Amount Requested:

$161,439.28 ($107,626.19 Rebate, $53,813.09 Partnership)

Recommendation: Approve Summary: The 2002 Consumer Awareness plan will build upon the national

plan by utilizing the materials produced by National PERC. The plan will effectively send our messages to consumers, builders and users of forklift trucks. In addition, the plan calls for additional informational pages for consumers and marketers on the IPGA/IPERC Web Site. This plan expands on earlier consumer awareness campaigns by reaching new audiences that have not. been reached.

Dir. of IP The applicant has requested more money than is available, but has

Comments: been contacted and approves of receiving the balance in fourth quarter of 2003 when 2003 dollars are available

Docket: 10990 Rebate (Consumer Education)Applicant: North Dakota Propane Gas Foundation Short Title: North Dakota Statewide Television Campaign Amount Requested:

$60,000 ($40,000 Rebate, $20,000 Partnership)

Recommendation: Approve Summary: The North Dakota Propane Gas Foundation will run a statewide

television campaign utilizing the PERC advertising media provided in the propane advertising kit. The goal of the television campaign is to educate the public about propane and convey the “exceptional energy” theme.

Docket: 10991 Rebate (Safety and Training)Applicant: North Dakota Propane Gas Foundation Short Title: 2003 Propane safety and training reduced registration fees Amount Requested:

$39,650

Recommendation: Approve Summary: The ND Propane Gas Association has propane safety training

courses scheduled. The rebate dollars will be used to reduce the registration fee of each propane safety-training course. This should allow the marketers to provide proper training for more of their employees. The courses will be offered to all propane marketers in North Dakota

Docket: 10992 Rebate (Safety and Training)Applicant: North Dakota Propane Gas Foundation Short Title: Propane safety seminar for management and employees Amount Requested:

$3,200

Recommendation: Approve Summary: The ND Propane Gas Association would like to provide a free

propane safety seminar. This seminar would pertain to propane management and employees. Propane businesses incur a large expense sending employees to training for time away from work, travel and hotel accommodations. With free registration, this will make it possible for more propane personnel to attend making the

propane industry safer for employees and propane consumers.

Docket: 10993 Rebate (Industry Programs)Applicant: North Dakota Propane Gas Foundation Short Title: Filing of IRS Tax Form 990 Amount Requested: $1,000 Recommendation: Approve Summary: This will cover the cost for an accounting firm to file the required

IRS Tax Form 990 for the North Dakota Propane Gas

Foundation for fiscal year end 2002.

Docket: 10994 Rebate (Industry Programs)Applicant: Georgia Propane Education & Research Council, Inc. Short Title: Website Maintenance and Hosting Amount Requested:

$12,500

Recommendation: Approve Summary: The Georgia Propane Gas Association Website has recently been

rebuilt. This request is to cover on-going maintenance and hosting expenses and equipment upgrades. Consumer hits have increased exponentially with our ad campaigns through the state and national PERC campaigns.

Docket: 10995 Rebate (Safety and Training)Applicant: Georgia Propane Education & Research Council, Inc. Short Title: Education/Training for Georgia Propane Industry Workers Amount Requested:

$40,000

Recommendation: Approve Summary: Funding would provide training to propane industry personnel,

members and non-members. This training includes transportation, proper handling, safety and compliance and dealing with propane appliances

Docket: 10996 Rebate (Safety and Training)Applicant: North Carolina Propane Foundation

Short Title: Donations of LP-Gas Appliances to Educational Institutions Amount Requested: $12,800 Recommendation: Approve Summary: The North Carolina Propane Foundation proposes to donate

LP-gas appliances to various community colleges throughout

the state for use in their continuing education departments.

These appliances would be used to train adults seeking heating,

air conditioning, plumbing, or contractor’s licenses. Dir. of IP Comments:The applicant has requested more money than is available, but

has been contacted and approves of receiving the balance in

fourth quarter of 2003 when 2003 dollars are available.

Docket: 10997 Rebate (Safety and Training)Applicant: Propane Education Foundation of Iowa Short Title: Updating NFPA 58 and 54/Educating Fire Marshal’s Inspectors Amount Requested:

$2,000

Recommendation: Approve Summary: This project is to help pay for the costs involved in updating Iowa’s

NFPA 58 and NFPA 54 to the most current editions and to help educate the Iowa Fire Marshal’s office inspectors on the updates.

Docket: 10998 Rebate (Consumer Education)Applicant: Propane Education Foundation of Iowa Short Title: Post Season Football Radio Ads Amount Requested:

$3,590 ($2,393.33 Rebate, $1,196.67 Partnership)

Recommendation: Approve Summary: We are requesting additional money for our 2002 football ad project

(Docket 10770) due to both Iowa and Iowa State going to post season bowl games. In the contract we signed with Clear Channel and Learfield Sports we were responsible for advertising in bowl games.

Docket: 10999 Rebate (Safety and Training)Applicant: Propane Education Foundation of Iowa Short Title: 2003 Hazmat Training Amount Requested: $2,750 Recommendation: Approve Summary: Iowa will be holding free training for Iowa marketers to make

sure they are updated on their HM 126f training. There will be

three classes held across the state on July 29-31, 2003.

Docket: 11000 Rebate (Consumer Education/ Agriculture) Applicant: Florida Propane Gas Safety, Education and Research Council Short Title: 2003-04 Florida Propane Industry Research, Sales Promotion,

Training and Marketing Plan Amount Requested:

$154,447.27

Recommendation: Approve Summary: The Florida Propane Gas Safety, Education and Research

Council has entered into an agreement with the Florida

Department of Agriculture and Consumer Services' Division of

Marketing and Development for the development and

implementation of a marketing plan for the promotion of

propane sales in Florida. In addition, the Council has initiated

preliminary work for funding of training projects to benefit

industry members. This program is a continuation program from

previous years. The marketing program targets specific areas

based on marketing surveys and focus group feedback, and will

continue to promote the positive attributes of propane gas as a

household, industrial and agricultural fuel supply. The program

also addresses public outreach, negative consumer

perceptions, and industry training.

Docket: 11001 Rebate (Consumer Education)Applicant: Ohio Propane Education & Research Council Short Title: Media Advertising #3 Amount Requested: $21,600 ($15,600 Rebate, $6,000 Partnership) Recommendation: Approve Summary: The Ohio PERC proposes to continue its media campaign on

the Ohio News Network Radio to promote Propane Exceptional

Energy. Ohio PERC proposes to use materials made available

through national PERC making consumers and potential

consumers aware of the fuel. It will run during the Ohio State

University football season reaching 1.7 million listeners.

Docket: 11002 Rebate (Consumer Education)Applicant: Ohio Propane Education & Research Council Short Title: RFD (Rural Free Delivery) Ads #2 (continuation of Docket 10701) Amount Requested:

$20,286.72 ($14,182.48 Rebate, $6,104.24 Partnership)

Recommendation: Approve Summary: The Ohio Propane Education and Research Council proposes to

purchase 12 one-half page advertisements in the RFD news, the

newspapers of the rural sections of Ohio, which include seven

editions statewide. The magazine has a circulation of over 1 million

homes in Ohio. The message conveyed will educate Ohioans about

the safe and economical use of propane. We are working with Porter

Novelli to develop ads.

Docket: 11003 Rebate (Safety and Training)Applicant: Ohio Propane Education & Research Council Short Title: Web site maintenance, design, and update (continuation of Docket

10706) Amount Requested:

$10,000

Recommendation: Approve Summary: The Ohio Propane Gas Association proposes to upgrade and

maintain an existing web site that facilitates intra-marketer communication and provides the public with the latest information about propane. Funding will help with design, update and maintenance of the website. See dockets 10131, 10362, and 10706 for further explanation of the OPGA web site, or go to www.OhioPropaneGas.org to view our site.

Dir. of IP Comments:

PERC will add the following statement to the contract to adhere

to its Policies, Rules, and Procedures covering the use of

assessment funds to influence legislation or elections: “The

Grantee will abide by PERC’s Policies, Rules, and Procedures

section 10.12.1.2. that states, Grant or rebate funds may not

be used by state entities to pay for those aspects of

newsletters, web sites, and other means of communications

that report on or advocate industry policy and/or

political positions with respect to legislation or elections.”

Docket: 11004 Rebate (Consumer Education)Applicant: Ohio Propane Education & Research Council Short Title: Ohio Manufactured Housing Assoc. Magazine #4 Amount Requested: $2,754 ($1,989 Rebate, $765 Partnership) Recommendation: Approve Summary: Continuation of dockets 10450 and 10708 - The Ohio Propane

Gas Association proposes to purchase six (6) full-page color

advertisements in the bi-monthly newsletter, Access, the

magazine of the Ohio Manufactured Housing Association. The

magazine is sent to association members. The message

conveyed will educate readers about the safe and economical

use of propane in future home sites. We are working with Porter

Novelli to develop a color ad on the back cover. We have

secured full-page back covers!

Docket: 11005 Rebate (Agriculture)Applicant: Ohio Propane Education & Research Council Short Title: Farm Science Review #5 (continuation of project request Docket

10702) Amount: $20,000 Recommendation:Approve Summary: The Ohio Propane Gas Association (OPGA) proposes to

participate in the Annual Farm Science Review to be held in

September at the Ohio State University's 2,100 acre Molly

Caren Agricultural Center located two miles north of London,

Ohio on U.S. Route 40. Some six hundred (600) commercial

exhibits attracted 140,000 farm-related attendees in 2001.

OPGA proposed to sponsor an exhibit to educate consumers

about the benefits associated with the use of propane in a rural

setting. The exhibit would be manned by OPGA volunteers

and would describe the safe use of propane for many out-door

rural uses. The exhibit would feature upgrades to the interior of

the building.

Docket: 11006 Rebate (Consumer Education)Applicant: Ohio Propane Education & Research

Council Short Title: Balloon Festival Sponsor #3 (continuation of Docket 10705) Amount Requested:

$25,800

Recommendation: Approve Summary: The Ohio Propane Gas Association proposes to promote propane

as

exceptional energy through its sponsorship at the 2003 and 2004

Balloon Festival in June at Beulah Park in Grove City, Ohio. We will

be designated as the “Official Propane Supplier” of the festival,

providing propane and manpower for the ascensions during the

weekend event. A balloon will fly the “Propane–Exceptional Energy”

banner throughout the festival and OPGA will conduct pilot training

seminars prior to launch to promote propane as a safe, economical

fuel. Press releases will announce PERC support of the project.

Docket: 11007 Rebate (Safety and Training)Applicant: Ohio Propane Education & Research Council Short Title: 2003 Certified Employee Training Program (CETP #4) Classes

continuation of Dockets 10481, 10216, 10703) Amount : $30,000 Recommendation:Approve Summary: The Ohio PERC proposes to continue to conduct a series of CETP

classes around Ohio in the year 2003. Ohio PERC proposes to

conduct twenty-two classes. Continuation of the budgeted cost of

the project is $30,000 funded by Ohio's portion of PERC rebate

funds. Costs include: instructor fees and travel expenses; class

materials; hotel meeting room space; food and beverage; audio

visual equipment; printing for class handouts; and promotion, project

coordination and mailing costs.

Docket: 11008 Rebate (Consumer Education)Applicant: Ohio Propane Education & Research Council Short Title: Alternative Fuel Outreach Amount : $10,000 Recommendation:Approve Summary: The Ohio Propane Gas Association proposes to become

involved in a statewide fleet alternative fuel outreach program.

Through this project, the collaborators would conduct outreach

programs, organize events, and provide ongoing project

development assistance to government and private fleets in four

areas within Ohio. This project will help promote the use of

propane in alternative fuel vehicles.

Docket: 11009 Rebate (Safety and Training)Applicant: Ohio Propane Education & Research Council Short Title: Employee Guides #2 (continuation of Employee Guide #1 – Docket

10699) Amount : $2,985 Recommendation:Approve Summary: We are requesting funding for 1,000 additional copies: The Ohio

Propane Gas Association proposes to develop a propane employee

guide for all marketers. The flip-page guide would assist marketers

with answers on: pilot outage, inside gas leaks, outside gas leaks,

out of gas calls, heating appliances, ranges, water heaters, bbq

grills, new customer calls, collection calls, collection call response,

propane gas properties, general tank information, company policies,

and important phone numbers.

Docket: 11010 Rebate (Consumer Education)Applicant: Ohio Propane Education & Research Council Short Title: ABN #2 – American Broadcasting Network – Advertising Campaign

(continuation of Docket 10704) Amount : $69,024 ($49,851 Rebate, $19,173 Partnership) Recommendation:Approve Summary: The Ohio Propane Education and Research Council proposes to

join ABN (American Broadcasting Network), Ohio’s voice for agriculture in a three-prong-approach advertising campaign: 70 radio spots on 68 stations, 12 full page ads in the agriculture magazine Ohio’s Country Journal. We will be appearing on four premium pages this year– inside back or inside front covers.

Docket: 11011 Rebate (Safety and Training)Applicant: Interwest PERC, Inc. Short Title: CD and Video Training Distribution - Colorado Amount: $31,078 Recommendation:Approve Summary: This project makes the Dispensing Propane Safely training kit and

CETP Basic Principles & Practices CD-ROM available to all propane

marketers in Colorado at no cost.

Docket: 11012 Rebate (Safety and Training)Applicant: Interwest PERC, Inc.

Short Title: 2003 Fire Service Training Donation Amount: $12,000 Recommendation:Approve Summary: This project will provide a donation to the Propane Emergencies

training program organized by the Ellicott (Colorado) Fire

Department.

Docket: 11013 Rebate (Safety and Training)Applicant: Interwest PERC, Inc. Short Title: 2003 Training Classes Amount: $52,562.50 Recommendation:Approve Summary: This project provided training to members of the propane industry in

Colorado. Classes will be promoted by direct mail and e-mail to all

propane marketers in these states.

Docket: 11014 Rebate (Safety and Training)Applicant: Interwest PERC, Inc. Short Title: Training CD Distribution in Idaho and Utah Amount: $18,955 Recommendation:Approve Summary: This project makes the CETP Basic Principles & Practices CD-ROM

available to all propane marketers in Idaho and Utah at no cost.

Docket: 11015 Rebate (Safety and Training)Applicant: Propane Foundation of Kansas, Inc. Short Title: Certified Employee Training Program Amount: $31,000 Recommendation:Approve Summary: Providing training and education for employees of the propane

industry in Kansas to increase safety and knowledge of propane and

related equipment. There will be total of 7 CETP schools offered in

Kansas in 2003: three Basic Principles & Practices, three Delivery,

one Distribution.

Docket: 11016 Rebate (Industry Programs)Applicant: Propane Foundation of Kansas, Inc. Short Title: Foundation Expenses Amount: $5,794.55 Recommendation:Approve Summary: This rebate is pay the expenses of accounting, tax filings, and

registration associated with the Propane Foundation of Kansas.

Docket: 11017 Rebate (Consumer Education)Applicant: Propane Foundation of Kansas, Inc. Short Title: Consumer Education and Awareness Campaign (Supplemental) Amount: $16,900 ($11,434 Rebate, $5,466 Partnership) Recommendation:Approve Summary: This is a request for additional funds to supplement request 10918

“Consumer Education & Awareness Regional Television Campaign.”

To better educate the public and convey the “exceptional energy”

Theme, the Foundation has funds for the purchase of radio

spots and to sponsor through radio several other programs that

productive in providing the exceptional energy information to a wide

range of the population in Kansas during the basketball season of

the University of Kansas and specifically on the University of Kansas

and the Kansas State University (KU/KSU) games. These games

are a major draw with audiences upwards of approximately 1.5

million households across the state.

Docket: 11018 Rebate (Consumer Education)Applicant: Propane Foundation of Kansas, Inc. Short Title: Kansas State Fair Sponsorship Amount: $14,300 Recommendation:Approve Summary: The Propane Foundation is requesting funds to have a large display

booth and campground sponsorship at the 2003 Kansas State Fair in

Hutchinson, Kansas. The sponsorship of the campground will

include signage and be year-round.

Docket: 11019 Rebate (Safety and Training)Applicant: Propane Foundation of Kansas, Inc. Short Title: Educational Insurance Premium Amount: $6,000 Recommendation:Approve Summary: To help defray the cost of insurance premiums based on

education done on the behalf of the Propane Foundation and

the propane industry in Kansas.

Docket: 11020 Rebate (Safety and Training)Applicant: Propane Foundation of Kansas, Inc. Short Title: Interrupted System Startup Class Amount: $16,000 Recommendation:Approve Summary: To offer five classes to teach those involved with propane the proper

techniques and tools for installing, maintaining, and servicing of propane systems. These classes will be held in various areas of the state to allow as many employees to attend.

Docket: 11021 Rebate (Consumer Education)Applicant: Propane Foundation of Kansas, Inc. Short Title: Wichita River Festival Balloon Classic 2003 Amount: $11,000

Recommendation:Approve Summary: This will provide major sponsorship levels of propane at the

Wichita River Festival Balloon Classic 2003 including handout

materials, visual presentation of the “Propane Exceptional

Energy” logo, and a private propane exceptional energy logo

balloon as the only “corporate sponsor balloon.”

Docket: 11022 Rebate (Consumer Education)Applicant: Mississippi Propane Education & Research Council Short Title: Southeast Manufactured Housing Trade Expo Amount: $24,947 Recommendation:Approve Summary: Mississippi PERC has partnered with Mississippi Valley Gas

(natural gas distributor), Sunshine Homes, Inc. (a large builder of manufactured houses) to display an all gas manufactured home at a trade expo. This expo is the largest in the southeast and will be held in Tunica, Mississippi. In attendance will be manufacturers, distributors, and sales personnel.

Docket: 11023 Rebate (Consumer Education)Applicant: Mississippi Propane Education & Research Council Short Title: Advertising on State and Ole Miss baseball games Amount: $13,200 Recommendation:Approve Summary: We have the opportunity to use some of our advertising monies

to support two baseball teams from the two largest universities

in our state. Our marketing committee feels this is not only a

good advertising tool but a good-will gesture.

Docket: 11024 Rebate (Consumer Education)Applicant: Mississippi Propane Education & Research Council Short Title: Consumer Guide Amount: $45,900 Recommendation:Approve Summary: Our committee is interested in printing a consumer guide to furnish

to the dealers of our state. These guides will be used in educating existing consumers, as selling tools for potential customers, and in other areas, such as schools, government agencies, etc. Our committee has obtained a copy of the guide published by Ohio association and our publication will be very similar.

Docket: 11025 Rebate (Safety and Training)Applicant: Tennessee Propane Education and Research Council Short Title: 2003 Educational Training Amount: $35,746.85 Recommendation:Approve Summary: Eight educational training classes, of which all are CETP classes

have been planned for all dealers in Tennessee for 2003. The Tennessee Propane Education and Research Council is seeking funding to pay expenses related to these classes. A list of classes and locations is attached. These classes will be offered to the dealers at a minimal cost. This will enable more dealers to educate more employees and this will create a safer industry in Tennessee.

Docket: 11026 Rebate (Consumer Education)Applicant: PERC of New York Short Title: Market Development 2003 Amount: $160,556 ($135,386 Rebate, $25,170 Partnership) Recommendation:Approve Summary: This is a water heater rebate program for builders and industry

designed to subsidize the installation of water heaters and build load for retailers. The Spring 2003 program will be supported by cable and outdoor advertising, inserts in the “Empire State Builder,” a “pop up” on the web site of the NYS Builders Assoc., and two direct mailings. All placements will use PERC supplied materials.

Docket: 11027 Rebate (Safety and Training)Applicant: PERC of New York Short Title: Education and Safety Training conducted by the New York Propane

Gas Association Amount: $84,250 Recommendation: Approve Summary: This is a continuing project of the New York Propane Gas

Association, and will offer courses such as CETP, non-CETP and Gas Check. Course descriptions are those contained in the publications of the National Propane Gas Association and the

Propane Emergencies Manual, Train the Trainer Guide, Video and DC. In 2003, the fee has been set a $50 per student, down from an estimated pre-PERC cost to participating companies of $325. NYPGA, using SIC codes, has intensified efforts to contact all companies in the propane industry. A schedule of courses and a list of all industry members contacted is attached.

Dir. of IP Comments:

The applicant has requested more money than is available, but has been contacted and approves of receiving the balance in fourth quarter of 2003 when 2003 dollars are available.

A motion was made, seconded, and adopted to approve all the above state rebates.

Old Business

No old business was discussed.

New Business

Mr. Willis presented to the Council a change to the Policies, Rules, and Procedures concerning grant-funding requests. The proposed language stated: “Project summaries may be submitted by any person. Within 90 days, the president, in consultation with the advisory committees, shall publish criteria defining an acceptable project summary. Grant funding requests may be submitted to the Council for consideration by an advisory committee of the Council, the president or, subject to the following limitations, by any other person—at the request of the Council; at the request of an advisory committee of the Council following the advisory committee’s review of a project summary; in response to a request for proposals authorized by the Council. Unless otherwise agreed to in advance, the Council retains the right to use information contained in the project summary for any purpose it deems appropriate, including to authorize the development and issuance of a request for proposals for the work described in a project summary.”

A motion was requested to send this amendment of PERC’s Policies, Rules and Procedures out for public comment. A motion was made, seconded, and approved.

Mr. Willis requested the Council consider relocating the July budget meeting from Baltimore, MD to Washington, DC. The motion to move the July meeting to Washington, DC was made, seconded, and approved.

Concerning the Fuel Quality Task Force Report, Mr. Willis requested authorization from the Council to develop requests for proposals for the work described in the report. (Docket 11074 was subsequently assigned.) The Council would have until April 15 to review the document and offer any comments. A motion was made to authorize an RFP for this; it was seconded and approved.

Mr. Bertselymer requested a motion from the Council to direct RDAC to solicit a request for proposals to proceed with a project to determine the safe operating life of propane pressure regulators used in this industry under various climatic conditions. A motion was made, seconded, and approved. (Docket 11073 was subsequently assigned for this activity.)

Upcoming meetings. Mr. Cressman reminded the councilors that the next Council meeting is scheduled for May 30-31, 2003 in New Orleans, LA. The meeting will begin at noon Central Daylight Time (CDT) on May 30 and continue until 5 p.m. CDT on May 31.

The meeting was adjourned.