The Kentucky General Assembly passed the Kentucky Propane Education and Research Act in 1998, which authorized the creation of the Council. During the fall of 1998, the propane industry conducted a referendum among producers and marketers, who overwhelming approved the formation of the Council.

The purpose of the Kentucky Propane Education and Research Council is to promote the safe, efficient use of propane as a preferred energy source. An 11-member board appointed by the commissioner of the Department of Housing, Buildings and Construction governs the Council.

Through the Council, the propane industry has committed itself to improving consumer and employee safety, to fund research and development of new and more efficient propane equipment and to expand public awareness of its many uses and environmental advantages.

The Council is funded by an assessment or check-off on each gallon of odorized propane gas sold for final use in the Commonwealth. Currently, the assessment is two-tenths of one cent per gallon. Additional revenue is obtained through program funding. The program funding has been possible through KYPERC's successful efforts in procuring rebate and grant funding through the National Propane Education and Research Council.