1. The Michigan Example Derek Dalling Michigan Propane Gas Association

2. Setting the Stage Primary bill sponsor is: 1)A propane customer 2)A farmer (operates a hog and grain farm) 3)First term Republican whose platform is to suburbanize Michigan’s rural areas Secondary bill sponsor is: 1)A propane customer 2)A farmer (family operates a hog and grain farm) 3)Chairman of the House Energy Committee 4)House Republican Majority Floor Leader (#2 leader)

3. Setting the Stage Michigan at the heart of the Perfect Storm - 2013-2014 propane supply situation and “Polar Vortex” Michigan is both: 1)Largest propane state (residential gallons) 2)Highest percentage natural gas state (80%+ of Michigan residents heat homes with natural gas)

4. First Battle of Subsidized Expansion Legislation began with “Last Mile” Intention MPGA commissioned an Impact Study Timing of supply concerns used against industry Agricultural groups brought in to support natural gas expansion MPGA defeated bill with “corporate welfare” and anti-competitive arguments

5. Second Battle of Subsidized Expansion Legislation changed to feature agricultural and economic development arguments NPGA Advocacy Grants to help bolster industry grassroots efforts MPGA created www.MiGasOptions.com – supports grassroots efforts and combats claims from natural gas advocateswww.MiGasOptions.com Legislation remains in House Energy Committee

6. In recent months MPGA Advocates have met with 8 target-legislators. Two them were issue fence-sitters… they changed to lean positive for MPGA. Watch Video Here

7. Sierra Club National WILDLIFE Federation Michigan Environmental Council GroundWork Enbridge Michigan Oil and Gas Association MPGA Positioned Itself to be Common Ground for Combatants

8. Michigan Recommendations Natural gas is looking nationwide – Propane industry needs a unified nationwide response (PERC, NPGA and State Associations working together) PERC needs to engage IMMEDIATELY (e.g. “Think Twice” customer education [PERC Docket #20811], website, training modules, and education materials) State PGAs should host annual State Capitol Lobby Day events Marketers cannot afford to be cheap – Invest in State PAC, NPGA PAC, good lobbyists, public relations consultants, marketing professionals, etc. State propane execs from all states should attend all NPGA Board meetings (the “Benchmarking” for state execs)

9. Questions Derek Dalling Kindsvatter Dalling & Associates, Inc. derek@kdafirm.com

10. A Seat at the Regulatory Table Aaron DeWeese, Executive Director Illinois Propane Gas Association

11. Defending Propane at the Illinois Commerce Commission Natural Gas Industry Cozy with ICC Finding Qualified Legal Counsel Funding Legal Council Establishing Engagement Objectives & Policy

12. Natural Gas Industry Cozy with ICC Natural Gas Consumer Safety & Reliability Act of 2013 – Devil in the ICC Rules Propane not on the ICC radar Ameren IL gets 400 feet of free main Nicor asking for $5,000 cap & 10-year schedule

13. Finding Qualified Legal Counsel Most regulatory attorneys are on retainer with the big public utilities (conflict of interest) Thanks to Jeff Petrash for finding Steve Moore Lucked out finding former ICC Administrative Judge

14. Funding Legal Council Voluntary Regulatory Legal Defense Fund Making the case to members

15. Establishing Engagement Objectives & Policy Nicor Case NGX Taskforce & IPGA Board of Directors Picking our battles – establishing criteria Regulatory monitoring

16. Questions Aaron DeWeese, Executive Director Illinois Propane Gas Association adeweese@ilpga.org

17. Getting the Win: NPGA’s State Engagement Program Mollie O’Dell and Lesley Garland National Propane Gas Association

18. NPGA’s State Engagement Initiative Providing political, logistical and financial assistance to states with significant legislative or regulatory issues. –Minnesota –Michigan –Illinois –New Mexico –Maryland

19. How We Win -- A Short Story In January 2016, two bills were introduced in the New Mexico Legislature to allow subsidized natural gas expansion into unserved or underserved areas for economic development purposes.

20. How We Win – Make the Argument NPGA’s natural gas issue kit –Sample testimony and fact sheets Generated more than 2,000 emails to targeted committee members using the Engage grassroots management campaign system. –One legislator noted she had received dozens of emails in opposition, but none in favor.

21. How We Win – Educate the Public Customized op-ed signed by association president Billy Romero Targeted media campaign –150,000 impressions of digital ad –Reaching more than 225,000 via radio ad

22. How We Win – Educate the Legislators Customized three-panel brochure

23. How We Win – Digital and Print Ads

24. What Others Said… “It was a little bit foggy on who was going to do what,” Woods said. “I think the Bill needed more work.” – NM State Sen. Pat Woods, R-Curry “He [Rio Arriba, NM County Treasurer Jose Candelaria] credited the Bill’s failure to the good job propane industry officials did on speaking out against the proposed measures.” “The Bill attracted heavy opposition from the state’s propane industry. Before the respective committee meetings convened to hear the legislation, several radio ads aired, decrying the Bills as being potentially destructive.” “I know there is a big lobbying effort on behalf of the propane company.” NM State Senator Richard Martinez Source: (“Plan to Bring Natural Gas to Northern County Fizzles,” Rio Grande Sun, Barron Jones, 3/3/2016)

25. We Won – And We Learned… Don’t stop. Don’t take a win for granted. Be nimble. Adjust messages. Be prepared. Build a list of members ready to respond and legislators who will help.

26. www.npga.org/stateengagement Issue kits and resources for the industry

27. Questions Mollie O’Dell, modell@npga.org Lesley Garland, lgarland@npga.org National Propane Gas Association