Grant Funding Request 20274: 2015 Partnership Agreement between PERC, GPA, and NPGA

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1 Docket 20274: 2015 Partnership Agreement between PERC, GPA, and NPGA 1140 Connecticut Ave. N.W., Suite 1075 Washington, DC tel fax Grant Request 20274: 2015 Partnership Agreement between PERC, GPA, and NPGA Applicant: Organization: Grant Type: Status: Jim Harris Propane Education & Research Council PROPEL Managed Grants Application Date Submitted: 08/25/2014 requested: $1,369, Estimated Total Project Cost: $1,369, Co-: No Name Type Amount Project Leader: Project Team: Jim Harris NPGA, GPA and PERC officers and staff Brief description of the project: The purpose of the Partnership Agreement is to foster a strategic alignment and an effective allocation of resources primarily among the propane industry s three national nonprofit organizations in order to support collaboration and to enable the parties, consistent with the priorities and the roles and responsibilities specified in the Partnership Agreements, to better protect and promote the interests of the industry, consumers, and the public. ======================================================================= Verification: I verify that the statements made herein, including all attachments and exhibits, are true and correct to the best of my knowledge. Submitted by: Jim Harris

2 Docket 20274: 2015 Partnership Agreement between PERC, GPA, and NPGA 1140 Connecticut Ave. N.W., Suite 1075 Washington, DC tel fax Applicant Information Applicant Jim Harris Title CFO Organization Propane Education & Research Council Address Connecticut Ave NW, Ste 1075 Address 2 Suite 1075 City Washington State or Province District of Columbia Mailing Zip Country United States Telephone Fax jim.harris@propane.com Principal Grantee/Contractor Information Primary Contact Jim Harris Title Organization Propane Education & Research Council Address Connecticut Ave. NW Suite 1075 Address 2 City Washington State or Province DC Mailing Zip Telephone Fax jim.harris@propane.com URL propanecouncil.org

3 APPLICANTS: FUNDING REQUEST DOCKET Roy Willis. PERC President and CEO Richard Roldan, NPGA President and CEO Mark Sutton, GPA Executive Director PROJECT TITLE: Partnership Agreement between PERC, GPA, and NPGA Implementation Year Eight, January December 2015 AMOUNT REQUESTED: $1,369,500 DESCRIPTION OF THE PROJECT: The purpose of the Partnership Agreement is to foster a strategic alignment and an effective allocation of resources primarily among the propane industry s three national nonprofit organizations in order to support collaboration and to enable the parties, consistent with the priorities and the roles and responsibilities specified in the Partnership Agreements, to better protect and promote the interests of the industry, consumers, and the public. This funding request in support of the Partnership Agreements is organized into six categories of activity that are discussed in greater detail in this document. They are: I. Qualified Industry Organizations II. Codes and Standards III. Technology and Research IV. Safety and Training V. Agency Outreach, Industry & Public Affairs VI. Industry Conferences and Conventions Written Agreement/Joint Oversight Committee There are separate written Partnership Agreements between PERC and NPGA and between PERC and GPA. The agreements establish a Joint Oversight Committee that includes the officers and the CEOs of each organization who plan and oversee implementation of the partnership objectives. 1

4 PART I QUALIFIED INDUSTRY ORGANIZATIONS PERC was created by the industry to marshal resources that the industry needed to pursue objectives it could not afford to do solely with dues or voluntary contributions. The congressional authorization to collect funds on a mandatory basis is the most fundamentally important aspect of the Propane Education and Research Act of 1996 (PERA), and has enabled the industry to pursue key strategic objectives in technology, consumer education, and safety and training. PERC was created under PERA by industry referendum conducted by the qualified industry organizations, which the law defines as the National Propane Gas Association, the Gas Processors Association, a successor association of such associations, or a group of retail marketers or producers who collectively represent at least 25 percent of the volume of propane sold or produced in the United States. NPGA and GPA held special status in launching PERC, and they have a vital and guiding role through their appointment of Council members. While NPGA and GPA created PERC to collect funds for industry-wide initiatives and objectives, PERC was established and operates as an independent organization and not as a bank or subsidiary of the national trade associations. NPGA and GPA face a continuing and growing need to coordinate more closely with PERC and its advisory committees. In addition, PERC has relied on NPGA to carry out key programs and to work in partnership with PERC on other objectives. In recognition of the commitment of resources that the associations must make to monitor and participate in PERC-related activities, $25,000 is requested to facilitate the continuing work of each Qualified Industry Organization. The funds will be used, in part, to defray each organization s expenses associated with staff attendance at PERC meetings. No funds provided by this request shall be used to reimburse any industry volunteer member for expenses related to their attendance at Council meetings. Officers and Presidents/CEOs of NPGA, GPA, and PERC Qualified Industry Organization, Annual Grant NPGA $ 25,000 Qualified Industry Organization, Annual Grant GPA $ 25,000 Total $ 50,000 This is a General Grant that provides for the establishment of two Joint Oversight Committees between PERC and, separately, NPGA and GPA to include close coordination with and participation of staff leaders at Council meetings. 2

5 PART II CODES AND STANDARDS The Partnership Agreement between NPGA and PERC succeeded the 2002 Management Agreement under which the two national organizations collaborated on the updates to the CETP curriculum materials necessitated by changes in standards, laws, regulations, industry practices, technology, or other factors. That collaboration included curriculum revision, codes and standards oversight, monitoring of technical societies and standards-setting organizations, and expenses for NPGA staff attendance at PERC Advisory Committee meetings. These activities are continued in the Partnership Agreement. is requested in the amount of $125,000 to NPGA to fund codes and standards staff participation in and consultation with each PERC advisory committee working group. Such payment shall be made in consideration of the performance of the following services: NPGA shall make available and ensure attendance of at least one NPGA staff member with requisite knowledge and expertise to actively participate in each face-to-face PERC advisory committee working group meeting or conference call. The participating NPGA staff member shall make the committee aware of any possible issues related to existing codes, standard, and industry practices. In addition, NPGA shall periodically advise PERC of any changes in standards, laws, regulations, industry practices, technology or other factors it believes could have an impact on Council-funded programs, products or materials. Under this service arrangement, PERC is able to obtain codes and standards expertise for its advisory committee from NPGA at a cost $125,000.GPA will provide codes and standards expertise in research and technology development on propane fuel specifications and other technical matters. is requested in the amount of $25,000 to GPA for technical staff participation and consultation. NPGA, GPA technical staff Workforce Training and Safety; Research and Technology Development; Market Services and Outreach NPGA $ 125,000 Research and Technology Development GPA $ 25,000 Total $ 150,000 : Attendance and active participation of at least one NPGA staff member with requisite knowledge and expertise at each PERC advisory committee face-to-face meeting, on conference calls, and committee collaboration by or other electronic means on projects or initiatives of the committee. Technical review, evaluation, and contributions to committee documents will be provided such as roadmaps, project plans, requests for proposals, funding requests, and periodic reports. Similar services will be rendered by GPA to the Research, Technology and Development working group. 3

6 PART III TECHNOLOGY AND RESEARCH (A) General Technology Support A general grant is requested to provide funds to support a joint technology initiative by the partnership. The grant is intended to foster a higher level of coordination between NPGA, GPA, and PERC in order to develop and implement an industry-wide agenda to address real and pressing technology challenges and to make the most of opportunities to expand the safe, efficient use of propane technologies. NPGA, GPA and PERC officers and staff Industry technical leaders General Technology Support Grant (GPA) $ 300,000 General Technology Support Grant (NPGA) $ 300,000 Total $ 600,000 Develop an industry-wide technology agenda and a plan for implementation of technology priorities; annual reports on technology efforts of NPGA and GPA. (B) Technical Societies This component of the partnership agreement supports the industry s involvement in technical societies to advance and enrich the industry s codes and standards expertise, $24,500 is requested for NPGA fees related to NPGA participation in and monitoring of technical societies. NPGA technical staff Technical Societies $ 24,500 Total $ 24,500 Further developed industry expertise on the work of technical societies and standardsetting organizations as well as informed input into PERC projects affected by codes, standards, and industry practices. (See further discussion in the Codes and Standards Collaboration section) 4

7 (C) International Technology Coordination The purpose of this funding is to continue the industry and PERC international strategy to identify and to bring successful technologies from around the world to the United States, and to maximize R&D results for the U.S. industry by building upon research efforts overseas. Funds are also included for NPGA s WLPGA membership dues and related expenses. The Propane Vision and Technology Roadmap (June 2000) first identified the strategic need for PERC to monitor the technology being researched and developed in other countries. PERC s primary but not exclusive means to implement its international technology strategy is the World LP Gas Association (WLPGA). For the last nine years PERC has been working with WLPGA and its Global Technology Network (GLOTEC) and Global Autogas Industry Network (GAIN). PERC continues to be involved in leadership roles within WLPGA, including service on the Industry Council, GLOTEC and GAIN. In addition to its work with WLPGA, PERC s technology team coordinates with industry and governmental organizations in Canada, Mexico, Australia, Japan, and Europe. NPGA and PERC Presidents and designees PERC manages all funds under this section except $35,000 for NPGA membership fees in the WLPGA and related expenses. PERC Industry Council Membership $ 30,000 Technical Contractors $ 10,000 NPGA WLPGA Membership and Expenses $ 35,000 Travel and Meeting Expenses $ 45,000 Total $ 120,000 Continue monitoring of international research and technology developments that are potentially valuable to the U.S. industry; expanded information and understanding of companies with advanced technologies; continued development of international research contacts; continued U.S participation in WLPGA, and PERC involvement in GLOTEC, GAIN, and other international organizations. 5

8 PART IV SAFETY AND TRAINING (A) Regulatory Compliance Update The regulatory compliance program is an ongoing effort by PERC and NPGA to provide timely and informative materials to aid marketers in complying with federal rules and regulations that pertain to propane operations. is requested for developing and delivering the Marketer Compliance Newsletter. This newsletter is posted on both the PERC and NPGA websites. The materials created through this project are also used to maintain the more comprehensive regulatory resource, the Propane Regulatory Compliance Program. JJ Keller is the principal contractor on the project, providing ongoing regulatory and code monitoring, and researching and preparing written copy for the newsletter. PERC contractors provide design, layout and editing of the compliance newsletter. PERC Safety and Training, Communications Staff NPGA Regulatory Staff JJ Keller or other Contractors Regulatory compliance projects have been funded by PERC each year since 2001 through numerous dockets. PERC manages all funds under this section except $7,500 for NPGA project coordination and editorial review. NPGA Project Coordination And Editorial Review $ 7,500 Newsletter Copy (4 issues) $ 12,000 Regulatory Monitoring; Guidebook Updates $ 12,500 Newsletter Layout, Design And Copy Editing $ 16,000 Printing (4 Issues) $ 6,500 Mail and Shipping (4 Issues) $ 5,000 Project Support (Conference Calls) $ 500 Total $ 60,000 Regulatory compliance quarterly inserts in PERC and NPGA websites; updates to the Regulatory Compliance Guidebook. (B) Professional Designation Program and CETP Outreach is requested to support a professional employee designation program, with the intent that such a designation would incorporate CETP training into the qualifying criteria. NPGA has formed a task force for the development of this Professional Designation Program for the propane industry. The expectation for this program is to establish a professional curriculum to enhance the skills of individuals who are currently in management/ownership positions and to prepare individuals who are looking for advanced leadership responsibilities. The task force has discussed establishing a minimum set of criteria to qualify for the designation. This criteria could include, but not be limited to, requiring the applicant to be CETP trained and certified in a particular program area such as Basic Principles & Practices and/or any other managementrelated training program that PERC may develop in the future under the umbrella of CETP. 6

9 The proposed Partnership Agreement commits PERC and NPGA to cooperate in promoting CETP (including E-Learning) workforce training and NPGA certification through PERC training products based on the Certified Employee Training Program (CETP). The partners agree to evaluate ways that existing communications channels can be better used to achieve that goal. NPGA and PERC safety and training staff, task force volunteers, and contractors (if needed). Development and promotion of this program will be covered under this docket as a general grant in the amount of $50,000 and managed by PERC. Professional Designation Program and CETP Outreach $50,000 Total $50,000 NPGA will establish a Professional Designation curriculum, qualification criteria, and a program promotion plan. Industry outreach program on CETP Certification and CETP E- Learning will include descriptions, benefits, and points of contact. Outreach will be based mainly on direct communications with propane marketers via a combination of and fax messages and articles in both PERC and NPGA publications. Webinars will also be used as an outreach and communications tool. PART V AGENCY OUTREACH, INDUSTRY & PUBLIC AFFAIRS (A) NPGA Benchmarking Council Alliance Through this alliance, PERC will be given access to NPGA BC members through their group Benchmarking meetings, and other ways agreeable to both organizations, for the purposes of observing BC activities, and gathering and sharing information on best practices and their effectiveness in fostering safe operations. PERC staff, NPGA BC Executive Director and BC Steering Committee members In exchange for Alliance related activities with the NPGA BC, PERC will pay NPGA an annual Alliance fee of $50,000 NPGA Benchmarking Council Alliance $50,000 Total $50,000 PERC will be given access to NPGA BC members through their group Benchmarking meetings, and other ways agreeable to both organizations, for the purposes of observing BC activities, and gathering and sharing information on best practices and their effectiveness in fostering safe operations. Other Alliance activities will include, but may not be limited to, NPGA BC members receiving information and providing input on PERC 7

10 research and development programs, new propane technology, and marketer training programs that foster new technology commercialization. (B) Agency Outreach In past years, agency outreach initiatives were funded through the Capital Action Program (CAP) portion of the partnership and required PERC to collaborate with NPGA on effective message(s) for communications and outreach programs for audiences on Capitol Hill and in federal agencies. Since the restriction of PERC activities on August 4, 2009, all public education initiatives have been restricted. PERC is responsible for overseeing agency outreach. PERC participates in meetings and conferences with agency officials to coordinate and benefit the Council s technological initiatives, to develop propane projects responsive to agencies program solicitations, and to create materials to support those efforts. The focus of the agency outreach efforts are specific technology initiatives that are developed and routinely updated by the PERC s technology committees and contractors. President and CEO The Council has previously funded Agency Outreach in the amount of $150,000. The 2014 plan will remain at the same funding level, $150,000. PERC is responsible for managing the entirety of these funds. Agency Outreach $ 150,000 Total $ 150,000 (A) Exhibits and Presentations PART VI INDUSTRY CONFERENCES AND CONVENTIONS NPGA and PERC have collaborated for many years to expand the content and value of industry trade shows and conferences, especially the Southeastern Convention. In the past, through numerous dockets PERC has funded sponsorship, exhibits, presentations, and educational events at these events and other regional and state industry conventions. This docket requests funds to continue the collaboration of many of these activities in Outlined below is our proposed participation in the NPGA 2015 Southeastern Convention & International Propane Expo taking place on April in Atlanta, GA. The activities below would be payable to NPGA. Exhibit Space: provides industry with resources related to safety and training as well as other industry programs available through our mission areas Innovation Pavilion: features PERC research and development initiatives; also provides training opportunities via Fast-Track Sessions 8

11 PERC Update: provides industry with development related to training, safety, and research and development Training Conference: educational sessions featuring topics related to training, safety, and research and development Summary NPGA - Exhibit Space $ 20,000 NPGA - Innovation Pavilion $ 60,000 NPGA - PERC Update Presentation $ 35,000 Total $ 115,000 9

12 FUNDING HISTORY Requested Coordination with Qualified Industry Organizations GPA $ 25,000 $ 25,000 $ 25,000 $ 25,000 NPGA $ 25,000 $ 25,000 $ 25,000 $ 25,000 Codes and Standards Collaboration Workforce Training and Safety; Research and Technology Development; Market Services and Outreach Technology and Research subtotal $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 subtotal $ 150,000 $ 150,000 $ 150,000 $ 150,000 General Technology Support GPA $ 300,000 $ 300,000 $ 300,000 $ 300,000 General Technology Support NPGA $ 300,000 $ 300,000 $ 300,000 $ 300,000 Technical Societies $ 24,500 $ 24,500 $ 24,500 $ 24,500 International Technology Coordination $ 120,000 $ 120,000 $ 140,000 $ 120,000 Employee Safety & Training subtotal $ 744,500 $ 744,500 $ 764,500 $ 744,500 Regulatory Compliance Update $ 60,000 $ 60,000 $ 60,000 $ 60,000 Professional Designation Program and CETP Outreach $ 50,000 $ 50,000 $ 50,000 $ 50,000 Agency Outreach, Industry & Public Affairs NPGA Benchmarking Council Alliance subtotal $ 110,500 $ 110,000 $ 110,000 $ 110,000 $ - $ 50,000 $ 50,000 $ 50,000 Agency Outreach $ 150,000 $ 150,000 $ 150,000 $ 150,000 Crisis Communications $ 40,000 $ - $ - $ - subtotal $ 190,000 $ 200,000 $ 200,000 $ 200,000 Industry Conferences and Conventions SE Convention $ 115,000 $ 115,000 $ 115,000 $ 115,000 TOTAL PARTNERSHIP FUNDING REQUESTED $ 1,359,000 $ 1,369,500 $ 1,389,500 $ 1,369,500 10

13 Respectfully Submitted by Roy Willis President and CEO Propane Education & Research Council Richard Roldan President and CEO National Propane Gas Association Mark Sutton Executive Director Gas Processors Association Date Date Date 11

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