Propane vehicle conversions provide a cost-effective and environmentally friendly alternative fuel option. Propane autogas vehicles have existed for nearly 100 years and there are approximately 17 million globally. Reasons for increased interest in propane vehicles include lower fuel and infrastructure costs compared to gasoline or diesel, as well as safety and domestic fuel production advantages. Several fleet operators like school districts and government agencies have successfully adopted propane vehicles, seeing reduced fuel costs and no safety issues from accidents involving propane tanks. Federal and some state incentives are available to help offset costs of vehicles and fueling infrastructure converting to propane.
2. Propane Autogas:
The Smarter Vehicle Alternative
• Propane-autogas-fueled vehicles have existed for
almost 100 years
• Approximately 17 million propane-autogas-fueled vehicles are
in operation around the globe
• Propane autogas is the most widely used alternative
transportation fuel in the world
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3. Propane Autogas:
The Smarter Vehicle Alternative
Why the increased interest in
propane-autogas-fueled vehicles?
Economical Environmentally Friendly
Safety AdvantagesDomestically Produced
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4. Economical
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•Fuel costs up to 50-60%
less than gas or diesel
•Infrastructure cost
drastically less than other
alternative fuels
•Propane fuel provider will
often provide on-site
dispenser at no cost in
exchange for fuel contract.
5. • Built-in safety devices and shut-off valves
• Propane tanks are 20 times more puncture-resistant than
gasoline tanks
Safety Advantages
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6. Fuel Tank Durability
“Propane tanks are more durable than gasoline or diesel
tanks. If in the rare instance a tank were to get
punctured as the result of an accident, it doesn’t mean
that the vehicle would explode like you might see in a
Hollywood movie.”
James Mays, Jr., Vice President and Interior Firefighter
Sheridan Fire Department, New York
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7. Fuel Systems and Lines
• Two types of fuel systems
1. Vapor fuel injection system
• Stored in tank in liquid form at low pressure
• Passes through fuel line to engine, converted to
vapor by a regulator
• Vapor mixes with air and enters combustion chamber
• Similar to a traditional vehicle carburetor system
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8. Fuel System and Lines
Liquid fuel injection system
• New and popular technology
• Liquid propane is directly
injected into the combustion
chamber
• Improves engine durability and
power output
Image courtesy of Roush CleanTech
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9. OEM Dedicated LPI Systems
GM 6.0L G4500 Cutaway Van
• Order Directly through GM Dealer Network (OEM)
• Service and Warranty through GM dealerships
• CleanFUEL USA Liquid Propane Injection system
10. Bi-Fuel Conversions
Upgrade your vehicles to run on clean, cost-effective Propane Autogas
• Extend your vehicle's driving range (up to 650 miles)
• Switch seamlessly between propane and gasoline
• Efficient & Economical Solution
• Overcome Infrastructure Shortfalls
• EPA Certified
11. Technology Enhancements
Changing Perceptions
• Performance level equal or
greater than gasoline- and
diesel-fueled vehicles
• Better system integration
• Highly trained mechanics
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12. Successful Fleet Initiatives
Portland, Oregon School District
• Portland School District has used
propane-autogas-fueled buses for
more than 30 years
• Owns and operates about 75 buses
• In addition, First Student owns and
operates a large fleet for the
school district
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13. Successful Fleet Initiatives
Portland, Oregon School District
“As you can imagine, when you operate as many fleet
buses as we do in a large city like Portland, occasionally,
accidents are going to happen. I’ve been here for six
years and I don’t know of any propane autogas safety
issues that we’ve ever encountered as the result of an
accident. These buses and their fuel tanks are extremely
durable.”
Eric Stewart, Fleet Service Coordinator
Portland, Oregon Public School District
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15. Successful Fleet Initiatives
Raleigh, North Carolina Police Department
• Between 2011 and 2012, the Raleigh Police Department
purchased 20 bi-fuel vehicles for its fleet
• The police department views propane autogas as a safe, cost-
effective fuel that helps them serve and protect their
community
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16. Successful Fleet Initiatives
Raleigh, North Carolina Police Department
“When we started looking into replacing our patrol cars,
we had certain criteria that needed to be met. First and
foremost, they needed to be safe.”
Doug Brugger, Police Captain
Raleigh, North Carolina Police Department
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17. Successful Fleet Initiatives
Indiana Department of Transportation
• Rising fuel costs were a factor for INDOT, which started exploring new ways to fuel
its fleet of 2,300 light-duty trucks and vans in 2008 after gasoline and diesel prices
increased.
• “We were trying to figure out how to pay for fuel for the agency because we hadn’t
budgeted enough for gasoline and diesel, and didn’t want to pass that cost along to
taxpayers,” Mark Ratliff, INDOT’s director of agency results and forecasting, says.
• INDOT has converted nearly 600 of its light-duty vehicles to a bi-fuel system, using
gasoline and propane autogas for its regional fleet. The high-performing vehicles
are used statewide to transport highway maintenance crews, signal technicians,
survey crews, and construction inspectors to job sites and projects.
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18. Successful Fleet Initiatives
Indiana Department of Transportation
• “It feels great to know that there’s a viable option out there that isn’t using
gasoline,” Joe Rudolph, INDOT’s director of technical services, says. “It’s great to
drive a vehicle fueled by propane autogas. You can’t tell any difference.”
• INDOT implemented a comprehensive network of refueling sites and negotiated a
fuel contract that saved significant taxpayer dollars; based on INDOT’s figures,
savings could exceed $1 million annually. INDOT has established 115 refueling sites
statewide, which were installed by both the agency and contracted personnel. The
refueling locations are strategically located at INDOT facilities, such that nearly all
state highways are within a 30-mile radius of a refueling site. A fuel card issued to
each driver provides dispenser access.
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19. Safety
“It’s difficult to change a perception without first
understanding the facts. Through public education and
quality training, emergency responders and citizens in
our communities can see the benefits of propane
autogas and understand that it is safe.”
Mark Holloway, Volunteer Fire Chief
West I-10 Fire Department, Texas
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22. • Low Upfront Vehicle Cost
• Low On Site Fueling Cost
• Abundant, Low Cost Fuel
Propane has the Lowest Cost of Entry of any
Alternative Fuel
23. Federal Incentives
• Alternative Fuel Excise Tax Credit
• A tax incentive is available for alternative fuel that is sold for use or used as a fuel
to operate a motor vehicle. A tax credit in the amount of $0.50 per gallon is
available for the following alternative fuels: compressed natural gas (based on 121
cubic feet), liquefied natural gas, liquefied petroleum gas, P-Series fuel, liquid fuel
derived from coal through the Fischer-Tropsch process, and compressed or
liquefied gas derived from biomass. For an entity to be eligible to claim the credit
they must be liable for reporting and paying the federal excise tax on the sale or
use of the fuel in a motor vehicle. Tax exempt entities such as state and local
governments that dispense qualified fuel from an on-site fueling station for use in
vehicles qualify for the incentive. Eligible entities must be registered with the
Internal Revenue Service (IRS). The incentive must first be taken as a credit against
the entity's alternative fuel tax liability; any excess over this fuel tax liability may be
claimed as a direct payment from the IRS. The tax credit is not allowed if an
incentive for the same alternative fuel is also determined under the rules for the
ethanol or biodiesel tax credits. This tax credit is applicable to fuel sold or used
between January 1, 2005, and December 31, 2013. (Reference Public Law 112-240
and 26 U.S. Code 6426)
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24. Federal Incentives
• Alternative Fuel Infrastructure Tax Credit
• Fueling equipment for natural gas, liquefied petroleum gas
(propane), electricity, E85, or diesel fuel blends containing a
minimum of 20% biodiesel installed between January 1, 2006,
and December 31, 2013, is eligible for a tax credit of 30% of
the cost, not to exceed $30,000. Fueling station owners who
install qualified equipment at multiple sites are allowed to use
the credit towards each location. Consumers who purchased
qualified residential fueling equipment prior to December 31,
2013, may receive a tax credit of up to $1,000. Unused credits
that qualify as general business tax credits, as defined by the
Internal Revenue Service (IRS), may be carried backward one
year and carried forward 20 years. (Reference Public Law 112-
240 and 26 U.S. Code 30C and 38)
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25. Wisconsin Incentives
Alternative Fuel Tax Exemption
No county, city, village, town, or other political subdivision may levy or
collect any excise, license, privilege, or occupational tax on motor
vehicle fuel or alternative fuels, or on the purchase, sale, handling, or
consumption of motor vehicle fuel or alternative fuels.
(Reference Wisconsin Statutes 78.82)
26. Illinois Incentives
The Illinois Alternate Fuels Rebate Program provides a rebate for 80% of the
incremental cost of purchasing an AFV (up to $4,000), 80% of the cost of converting a
conventional vehicle to an AFV using a federally certified conversion (up to $4,000),
and for the incremental cost of purchasing alternative fuels. Eligible fuels for the
program include E85, fuel blends containing at least 20% biodiesel (B20), natural gas,
propane, electricity, and hydrogen. A vehicle may receive one rebate in its lifetime.
Only AFVs purchased from an Illinois-based company or vendor are eligible, except if
the vehicle is a heavy-duty specialty vehicle that is not sold in Illinois. To qualify for a
fuel rebate, the entity or individual must purchase the majority of E85 or biodiesel fuel
from Illinois retail stations or fuel suppliers. The E85 fuel rebate is up to $450 per year
(depending on vehicle miles traveled) for up to three years for each flexible fuel vehicle
that uses E85 at least half the time. The biodiesel fuel rebate (for B20 and higher
blends) is for 80% of the incremental cost of the biodiesel fuel, as compared to
conventional diesel. Rebates are part of the Illinois Green Fleets Program and are
available to all qualified Illinois residents, businesses, government units (except federal
government), and organizations located in Illinois. (Reference 415 Illinois Compiled
Statutes 120/30)Point of Contact
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27. Propane Autogas Resources
http://www.autogasusa.org
This Propane Education & Research Council (PERC)-sponsored website provides
information on the several different types of propane-autogas-fueled vehicles (and
other types of propane equipment), fueling with propane autogas, adoption
incentives, and propane autogas webinars.
http://www.propanesafety.com
This PERC website provides information and training dates for the Propane
Emergencies program.
http://www.afdc.energy.gov/vehicles/propane.html
The U.S. Department of Energy’s Alternative Fuels Data Center website delivers
information on various alternative-fueled vehicles, including those fueled by propane
autogas.
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