Propane Vehicle Conversions: Clean, Green, and Cost Effective!

Propane vehicle conversions Clean, Green and Cost effective!

Rich Danchisin, VP, Sales & Marketing

Clean Autogas Solutions, Inc.

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


Propane Autogas: The Smarter Vehicle Alternative

Why the increased interest in propane-autogas-fueled vehicles?

Economical Environmentally Friendly

Safety Advantages Domestically Produced


Economical


•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.

• Built-in safety devices and shut-off valves

• Propane tanks are 20 times more puncture-resistant than gasoline tanks

Safety Advantages


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


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


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


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

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

Technology Enhancements Changing Perceptions

• Performance level equal or greater than gasoline- and diesel-fueled vehicles

• Better system integration

• Highly trained mechanics


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


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


Successful Fleet Initiatives Raleigh, North Carolina Police Department


Image Courtesy of City of Raleigh


• 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



“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


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.


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.


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


Clean Autogas Solutions, Inc. Clean Autogas Solutions, Inc.

• Low Upfront Vehicle Cost

• Low On Site Fueling Cost • Abundant, Low Cost Fuel

Propane has the Lowest Cost of Entry of any Alternative Fuel

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)


http://thomas.loc.gov/home/LegislativeData.php?&n=PublicLaws&c=112

http://www.gpo.gov/fdsys/

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)


http://thomas.loc.gov/home/LegislativeData.php?&n=PublicLaws&c=112

http://www.gpo.gov/fdsys/

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)

http://legis.wisconsin.gov/rsb/stats.html

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


http://www.illinoisgreenfleets.org/

http://www.illinoisgreenfleets.org/

http://www.ilga.gov/legislation/ilcs/ilcs.asp

http://www.ilga.gov/legislation/ilcs/ilcs.asp

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.


http://www.autogasusa.org/

http://www.propanesafety.com/

http://www.afdc.energy.gov/vehicles/propane.html

Rich Danchisin (630) 292-6544

www.cleanautogassolutions.com [email protected]


Propane Vehicle Conversions: Clean, Green, and Cost Effective!

Technology

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