---
kind: "section"
citation: "15 U.S.C. § 6404"
title: "15"
title_heading: "Commerce and Trade"
number: "6404"
heading: "Propane Education and Research Council"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/6404"
units:
  - "Chapter 90 — Propane Education and Research"
---

# §6404. Propane Education and Research Council

- (a) **Selection of members—** The [qualified industry organizations](/usc/15/6402.md?p=8) shall select all [retail marketer](/usc/15/6402.md?p=9), public, and [producer](/usc/15/6402.md?p=5) members of the [Council](/usc/15/6402.md?p=1). The [producer](/usc/15/6402.md?p=5) organizations shall select the [producer](/usc/15/6402.md?p=5) members of the [Council](/usc/15/6402.md?p=1), the [retail marketer](/usc/15/6402.md?p=9) organizations shall select [retail marketer](/usc/15/6402.md?p=9) members, and all [qualified industry organizations](/usc/15/6402.md?p=8) shall jointly select the [public members](/usc/15/6402.md?p=7). Vacancies in unfinished terms of [Council](/usc/15/6402.md?p=1) members shall be filled in the same manner as were the original appointments.
- (b) **Representation—** In selecting members of the [Council](/usc/15/6402.md?p=1), the [qualified industry organizations](/usc/15/6402.md?p=8) shall give due regard to selecting a [Council](/usc/15/6402.md?p=1) that is representative of the [industry](/usc/15/6402.md?p=2), including representation of—
  - (1) gas processors and oil refiners among [producers](/usc/15/6402.md?p=5);
  - (2) interstate and intrastate operators among [retail marketers](/usc/15/6402.md?p=9);
  - (3) large and small companies among [producers](/usc/15/6402.md?p=5) and [retail marketers](/usc/15/6402.md?p=9), including agricultural cooperatives; and
  - (4) diverse geographic regions of the country.
- (c) **Membership—** The [Council](/usc/15/6402.md?p=1) shall consist of 21 members, with 9 members representing [retail marketers](/usc/15/6402.md?p=9), 9 members representing [producers](/usc/15/6402.md?p=5), and 3 [public members](/usc/15/6402.md?p=7). Other than the [public members](/usc/15/6402.md?p=7), [Council](/usc/15/6402.md?p=1) members shall be full-time employees or owners of businesses in the [industry](/usc/15/6402.md?p=2) or representatives of agricultural cooperatives. No employee of a [qualified industry organization](/usc/15/6402.md?p=8) or other [industry trade association](/usc/15/6402.md?p=3) shall serve as a member of the [Council](/usc/15/6402.md?p=1), and no member of the [Council](/usc/15/6402.md?p=1) may serve concurrently as an officer of the Board of Directors of a [qualified industry organization](/usc/15/6402.md?p=8) or other [industry trade association](/usc/15/6402.md?p=3). Only one [person](/usc/15/7a.md?p=6) at a time from any company or its affiliate may serve on the [Council](/usc/15/6402.md?p=1).
- (d) **Compensation—** [Council](/usc/15/6402.md?p=1) members shall receive no compensation for their services, nor shall [Council](/usc/15/6402.md?p=1) members be reimbursed for expenses relating to their service, except that [public members](/usc/15/6402.md?p=7), upon request, may be reimbursed for reasonable expenses directly related to their participation in [Council](/usc/15/6402.md?p=1) meetings.
- (e) **Terms—** [Council](/usc/15/6402.md?p=1) members shall serve terms of 3 years and may serve not more than 2 full consecutive terms. Members filling unexpired terms may serve not more than a total of 7 consecutive years. Former members of the [Council](/usc/15/6402.md?p=1) may be returned to the [Council](/usc/15/6402.md?p=1) if they have not been members for a period of 2 years. Initial appointments to the [Council](/usc/15/6402.md?p=1) shall be for terms of 1, 2, and 3 years, staggered to provide for the selection of 7 members each year.
- (f) **Functions—** The [Council](/usc/15/6402.md?p=1) shall develop programs and projects and enter into contracts or [agreements](/usc/15/7a.md?p=2) for implementing this chapter, including programs to enhance consumer and employee safety and training, to train [propane](/usc/15/6402.md?p=6) distributors and consumers in strategies to mitigate negative effects of future [propane](/usc/15/6402.md?p=6) price spikes, to provide for research and development of clean and efficient [propane](/usc/15/6402.md?p=6) utilization equipment, to inform and educate the public about safety and other issues associated with the use of [propane](/usc/15/6402.md?p=6), and to provide for the payment of the costs thereof with funds collected pursuant to this chapter. The [Council](/usc/15/6402.md?p=1) shall coordinate its activities with [industry trade association](/usc/15/6402.md?p=3) and others as appropriate to provide efficient delivery of services and to avoid unnecessary duplication of activities.
- (g) **Use of funds—** Not less than 5 percent of the funds collected through assessments pursuant to this chapter shall be used for programs and projects intended to benefit the agriculture [industry](/usc/15/6402.md?p=2) in the United States. The [Council](/usc/15/6402.md?p=1) shall coordinate its activities in this regard with agriculture [industry trade associations](/usc/15/6402.md?p=3) and other organizations representing the agriculture [industry](/usc/15/6402.md?p=2). The percentage of funds collected through assessments pursuant to this chapter to be used for projects relating to the use of [propane](/usc/15/6402.md?p=6) as an over-the-road motor fuel shall not exceed the percentage of the total market for [odorized propane](/usc/15/6402.md?p=4) that is used as a motor vehicle fuel, based on the historical average of such use over the previous 3-year period.
- (h) **Priorities—** Issues related to research and development, safety, education, and training shall be given priority by the [Council](/usc/15/6402.md?p=1) in the development of its programs and projects.
- (i) **Administration—** The [Council](/usc/15/6402.md?p=1) shall select from among its members a Chairman and other officers as necessary, may establish committees and subcommittees of the [Council](/usc/15/6402.md?p=1), and shall adopt rules and bylaws for the conduct of business and the implementation of this chapter. The [Council](/usc/15/6402.md?p=1) shall establish procedures for the solicitation of [industry](/usc/15/6402.md?p=2) comment and recommendations on any significant plans, programs, and projects to be funded by the [Council](/usc/15/6402.md?p=1). The [Council](/usc/15/6402.md?p=1) may establish advisory committees of [persons](/usc/15/7a.md?p=6) other than [Council](/usc/15/6402.md?p=1) members.
- (j) **Administrative expenses—**
  - (1) The administrative expenses of operating the [Council](/usc/15/6402.md?p=1) (not including costs incurred in the collection of the assessment pursuant to [section 6406 of this title](/usc/15/6406.md)) plus amounts paid under [paragraph (2)](#j-2) shall not exceed 10 percent of the funds collected in any fiscal year.
  - (2) The [Council](/usc/15/6402.md?p=1) shall annually reimburse the [Secretary](/usc/15/6402.md?p=11) for costs incurred by the Federal Government relating to the [Council](/usc/15/6402.md?p=1), except that such reimbursement for any fiscal year shall not exceed the amount that the [Secretary](/usc/15/6402.md?p=11) determines is the average annual salary of two employees of the Department of Energy.
- (k) **Budget—** Before August 1 each year, the [Council](/usc/15/6402.md?p=1) shall publish for public review and comment a budget plan for the next calendar year, including the probable costs of all programs, projects, and contracts and a recommended rate of assessment sufficient to cover such costs. Following this review and comment, the [Council](/usc/15/6402.md?p=1) shall submit the proposed budget to the [Secretary](/usc/15/6402.md?p=11) and to the Congress. The [Secretary](/usc/15/6402.md?p=11) may recommend programs and activities the [Secretary](/usc/15/6402.md?p=11) considers appropriate.
- (l) **Records; audits—** The [Council](/usc/15/6402.md?p=1) shall keep minutes, books, and records that clearly reflect all of the acts and transactions of the [Council](/usc/15/6402.md?p=1) and make public such information. The books of the [Council](/usc/15/6402.md?p=1) shall be audited by a certified public accountant at least once each fiscal year and at such other times as the [Council](/usc/15/6402.md?p=1) may designate. Copies of such audit shall be provided to all members of the [Council](/usc/15/6402.md?p=1), all [qualified industry organizations](/usc/15/6402.md?p=8), and to other members of the [industry](/usc/15/6402.md?p=2) upon request. The [Secretary](/usc/15/6402.md?p=11) shall receive notice of meetings and may require reports on the activities of the [Council](/usc/15/6402.md?p=1), as well as reports on compliance, violations, and complaints regarding the implementation of this chapter.
- (m) **Public access to Council proceedings—**
  - (1) All meetings of the [Council](/usc/15/6402.md?p=1) shall be open to the public after at least 30 days advance public notice.
  - (2) The minutes of all meetings of the [Council](/usc/15/6402.md?p=1) shall be made available to and readily accessible by the public.
- (n) **Annual report—** Each year the [Council](/usc/15/6402.md?p=1) shall prepare and make publicly available a report which includes an identification and description of all programs and projects undertaken by the [Council](/usc/15/6402.md?p=1) during the previous year as well as those planned for the coming year. Such report shall also detail the allocation or planned allocation of [Council](/usc/15/6402.md?p=1) resources for each such program and project.

## Source credit

(Pub. L. 104–284, § 5, Oct. 11, 1996, 110 Stat. 3371; Pub. L. 113–269, § 2(a), Dec. 18, 2014, 128 Stat. 2947.)

## Notes

### Editorial Notes

### Amendments

2014—Subsec. (f). Pub. L. 113–269 inserted “to train propane distributors and consumers in strategies to mitigate negative effects of future propane price spikes,” after “to enhance consumer and employee safety and training,”.