PERC Approves 2016 Budget; Will Begin Consumer Campaign

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The Propane Education & Research Council (PERC) has approved a $47.6-million budget for 2016 that will fund a consumer education campaign, safety and training programs, and ongoing development of propane-fueled products aimed at driving new demand for propane. The council’s consumer education authority was restored this year after a six-year restriction triggered by a Department of Commerce price analysis in 2009. A task force appointed by the council recommended that PERC develop a “consumer-facing” campaign that communicates the diversity of applications in the home and in the community.

The current assessment rate of four-tenths of a cent per gallon of odorized propane is expected to generate revenues of $36.3 million. The budget includes $35.7 million for program activities. Investment income, de-obligations, and held over funds make up the deficits from assessment revenue. The 2016 spending plan provides $2.65 million for administrative expenses, state rebates of nearly $7.3 million, and almost $35.7 million for programs.

“The budget for next year is designed to take advantage of our newly restored authority to talk to consumers about the benefits of propane while also preserving and promoting our industry’s investment in new propane-fueled appliances, equipment, and vehicles,” said Roy Willis, PERC president and CEO.

In other council business, PERC approved the appointments of David Reynolds of Blossman Gas and Kenton Sonnenburg of CHS Inc. as chairman and vice chairman, respectively, of the Research and Technology Development Working Group, one of three working groups that make up the PERC Advisory Committee. The council also approved a 2016 partnership agreement with the National Propane Gas Association and the Gas Processors Association, fulfilling PERC’s statutory obligation to coordinate its activities with industry organizations.

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