Title 15, Commerce and TradeRelease 119-110

§6405 Assessments

Title 15 › CHAPTER 90 — PROPANE EDUCATION AND RESEARCH › § 6405

Last updated Sep 22, 2026|Official source

Summary

The Council must set a per-gallon fee on odorized propane. The first fee can be no more than one tenth of one cent per gallon. Later fees must cover the Council’s plans and programs and cannot exceed one-half cent per gallon unless a majority in both the producer and retail marketer groups approve in a vote. The fee can only go up by at most one tenth of one cent per gallon each year. The owner of the propane when it is odorized or imported must pay the fee based on how much is sold and put into commerce. Fees are due monthly by the 25th of the next month. Exports are not charged. The Council can use different collection methods, charge late fees and interest, and may invest collected money only in U.S. or state government obligations, certain bank accounts or certificates of deposit, or obligations fully guaranteed by the U.S. The Council must work with State propane councils or similar groups and may allow a joint collection, a lower fee, or a rebate equal to 20 percent of the regular fee in that State; rebates go only to qualifying state councils or similar approved entities.

Full Legal Text

Title 15, §6405

Commerce and Trade, Source: USLM XML via OLRC

(a)Amount
The Council shall set the initial assessment at no greater than one tenth of 1 cent per gallon of odorized propane. Thereafter, annual assessments shall be sufficient to cover the costs of the plans and programs developed by the Council. The assessment shall not be greater than one-half cent per gallon of odorized propane, unless approved by a majority of those voting in a referendum in both the producer and the retail marketer class. In no case may the assessment be raised by more than one tenth of 1 cent per gallon of odorized propane annually.
(b)Ownership
The owner of odorized propane at the time of odorization, or the time of import of odorized propane, shall make the assessment based on the volume of odorized propane sold and placed into commerce. Assessments collected are payable to the Council on a monthly basis by the 25th of the month following the month of such collection. Propane exported from the United States to another country is not subject to the assessment.
(c)Alternative collection rules
The Council may establish an alternative means of collecting the assessment if another means is found to be more efficient and effective. The Council may establish a late payment charge and rate of interest to be imposed on any person who fails to remit or pay to the Council any amount due under this chapter.
(d)Investment of funds
Pending disbursement pursuant to a program, plan, or project, the Council may invest funds collected through assessments, and any other funds received by the Council, only in obligations of the United States or any agency thereof, in general obligations of any State or any political subdivision thereof, in any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System, or in obligations fully guaranteed as to principal and interest by the United States.
(e)State programs
The Council shall establish a program coordinating the operation of the Council with those of any State propane education and research council created by State law or regulation, or similar entity. Such coordination shall include a joint or coordinated assessment collection process, a reduced assessment, or an assessment rebate. A reduced assessment or rebate shall be 20 percent of the regular assessment collected in that State under this section. Assessment rebates shall be paid only to—
(1)a State propane education and research council created by State law or regulation that meets requirements established by the Council for specific programs approved by the Council; or
(2)a similar entity, such as a foundation established by the retail propane gas industry in that State, that meets requirements established by the Council for specific programs approved by the Council.

Reference

Citations & Metadata

Citation

15 U.S.C. § 6405

Title 15, Commerce and Trade

Last Updated

Sep 22, 2026

Release point: 119-110