The Propane Education and Research Council: Balancing Education, Research, and Anti-Electrification Campaigns
The Propane Education and Research Council (PERC) stands as a key entity within the propane industry, established with the aim of promoting propane safety, training, research, and development. However, its activities have drawn scrutiny, particularly regarding its funding of anti-electrification campaigns and the allocation of resources between its various programs.
Establishment and Funding
PERC was authorized by Congress through the Propane Education and Research Act (PERA) of 1996. This act allows the propane industry to collect a fee on every gallon of propane sold in the United States, currently set at $0.005. This generates a substantial annual budget for PERC, estimated at $43 million for 2023. PERA does not require re-authorization from Congress to continue collecting funds.
PERC is governed by a 21-member board appointed by the National Propane Gas Association and the Gas Processors Association. As a federal “checkoff program,” PERC is designed to support the propane industry, similar to programs that support specific agricultural commodities.
Mandate and Activities
PERA mandates that PERC fund educational, research, and safety projects related to propane. PERC describes itself as a nonprofit that provides propane safety and training programs and invests in research and development of new propane-powered technologies. Its activities include:
- Technical School Grant Program: PERC supports propane awareness and education by providing grants to technical schools. In 2024, the Technical School Grant Program enhanced propane awareness and education for more than 3,000 HVAC and plumbing students attending 39 educational institutions in 24 states across the United States. The program provides educators with up to $10,000 and instruction materials to cover in-depth topics around propane usage, installation, and safety in applications such as water heaters, furnaces, and boilers. Institutions also gain access to industry tools like propane regulator test boards, propane hydrometers, and pressure regulating devices. Applications for the 2025 Technical School Grant Program are open through December 20.
- Safety and Training Programs: PERC develops and implements programs aimed at enhancing safety in the handling and use of propane.
- Research and Development: PERC invests in research and development of new propane-powered technologies.
Controversy and Anti-Electrification Campaigns
Despite its mandate, PERC has faced criticism for its allocation of funds, particularly its investment in anti-electrification campaigns. A January 2023 New York Times investigation revealed that PERC has spent millions of dollars on broadcast TV ads and social media influencers to persuade the public and policymakers to halt building electrification. This has been described as "provocative anti-electrification messaging,” including disinformation about electric vehicles and batteries.
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Critics argue that PERC has diverted millions in funding from its research and safety programs to bolster its marketing and public relations efforts. In 2023, PERC increased its annual marketing budget by an additional $2 million, bringing it to just under $10.5 million. When combined with the $7.6 million allocated to its “environmental campaign,” which primarily consists of additional public relations and marketing spending, PERC’s marketing spending constitutes 53.5% of the budget.
This increased spending on marketing-related activities has come at the expense of PERC’s “safety and training” and “product development and research” programs. Safety and training expenses have been reduced from 12.7% to 9.3% of the overall budget since 2021, while product development and research expenses have experienced an even more significant decline from 21.5% to 12%.
Government Oversight and Scrutiny
Oversight of PERC is the responsibility of the Department of Energy (DOE) and the Department of Commerce (DOC). However, Government Accountability Office (GAO) reports have found that both agencies need to properly exercise their oversight responsibilities.
The GAO has raised concerns about PERC’s activities in multiple reports. As early as 2003, the GAO raised concerns that the consumer education category spending was primarily spent on marketing and promotional activities to sell more propane. In a 2010 audit report covering 1998 through 2008, the GAO found that $178.6 million was allocated for consumer education, which was 50.9% of its budget during that period. In contrast, only $50.7 million was spent on safety and training (14.5%), and $28.1 million on research and development (8%).
In its 2003 report, the GAO criticized the DOC and DOE for failing to exercise their oversight responsibilities. In response, the DOC agreed to produce an annual propane price index and biennial effectiveness report as required by PERA. However, EPI could not locate either DOC report after 2010. The DOE has taken no action, even after the GAO issued two more reports in 2010 and 2015 highlighting DOE’s failure to perform oversight.
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In 2010, the Senate Energy and Natural Resources Committee held a hearing regarding GAO’s findings. During the hearing, GAO highlighted that one of PERC’s strategic objectives related to consumer education is to increase propane use.
PERC’s CEO, Roy Willis, defended PERC’s activities in response to GAO’s findings during the hearing and in questions submitted to PERC from committee members.
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tags: #propane #education #research #council #programs
