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


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Presented by Rich Danchisin with Clean Autogas Solutions at the 10th Annual Green Vehicles Workshop on April 24, 2013.

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

  1. 1. Propane vehicle conversionsClean, Green and Cost effective!Rich Danchisin, VP, Sales & MarketingClean Autogas Solutions, Inc.
  2. 2. Propane Autogas:The Smarter Vehicle Alternative• Propane-autogas-fueled vehicles have existed foralmost 100 years• Approximately 17 million propane-autogas-fueled vehicles arein operation around the globe• Propane autogas is the most widely used alternativetransportation fuel in the worldClean Autogas Solutions, Inc.
  3. 3. Propane Autogas:The Smarter Vehicle AlternativeWhy the increased interest inpropane-autogas-fueled vehicles?Economical Environmentally FriendlySafety AdvantagesDomestically ProducedClean Autogas Solutions, Inc.
  4. 4. EconomicalClean Autogas Solutions, Inc.•Fuel costs up to 50-60%less than gas or diesel•Infrastructure costdrastically less than otheralternative fuels•Propane fuel provider willoften provide on-sitedispenser at no cost inexchange for fuel contract.
  5. 5. • Built-in safety devices and shut-off valves• Propane tanks are 20 times more puncture-resistant thangasoline tanksSafety AdvantagesClean Autogas Solutions, Inc.
  6. 6. Fuel Tank Durability“Propane tanks are more durable than gasoline or dieseltanks. If in the rare instance a tank were to getpunctured as the result of an accident, it doesn’t meanthat the vehicle would explode like you might see in aHollywood movie.”James Mays, Jr., Vice President and Interior FirefighterSheridan Fire Department, New YorkClean Autogas Solutions, Inc.
  7. 7. Fuel Systems and Lines• Two types of fuel systems1. Vapor fuel injection system• Stored in tank in liquid form at low pressure• Passes through fuel line to engine, converted tovapor by a regulator• Vapor mixes with air and enters combustion chamber• Similar to a traditional vehicle carburetor systemClean Autogas Solutions, Inc.
  8. 8. Fuel System and LinesLiquid fuel injection system• New and popular technology• Liquid propane is directlyinjected into the combustionchamber• Improves engine durability andpower outputImage courtesy of Roush CleanTechClean Autogas Solutions, Inc.
  9. 9. OEM Dedicated LPI SystemsGM 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. 10. Bi-Fuel ConversionsUpgrade your vehicles to run on clean, cost-effective Propane Autogas• Extend your vehicles driving range (up to 650 miles)• Switch seamlessly between propane and gasoline• Efficient & Economical Solution• Overcome Infrastructure Shortfalls• EPA Certified
  11. 11. Technology EnhancementsChanging Perceptions• Performance level equal orgreater than gasoline- anddiesel-fueled vehicles• Better system integration• Highly trained mechanicsClean Autogas Solutions, Inc.
  12. 12. Successful Fleet InitiativesPortland, Oregon School District• Portland School District has usedpropane-autogas-fueled buses formore than 30 years• Owns and operates about 75 buses• In addition, First Student owns andoperates a large fleet for theschool districtClean Autogas Solutions, Inc.
  13. 13. Successful Fleet InitiativesPortland, Oregon School District“As you can imagine, when you operate as many fleetbuses as we do in a large city like Portland, occasionally,accidents are going to happen. I’ve been here for sixyears and I don’t know of any propane autogas safetyissues that we’ve ever encountered as the result of anaccident. These buses and their fuel tanks are extremelydurable.”Eric Stewart, Fleet Service CoordinatorPortland, Oregon Public School DistrictClean Autogas Solutions, Inc.
  14. 14. Successful Fleet InitiativesRaleigh, North Carolina Police DepartmentClean Autogas Solutions, Inc.Image Courtesy of City of Raleigh
  15. 15. Successful Fleet InitiativesRaleigh, North Carolina Police Department• Between 2011 and 2012, the Raleigh Police Departmentpurchased 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 theircommunityClean Autogas Solutions, Inc.
  16. 16. Successful Fleet InitiativesRaleigh, North Carolina Police Department“When we started looking into replacing our patrol cars,we had certain criteria that needed to be met. First andforemost, they needed to be safe.”Doug Brugger, Police CaptainRaleigh, North Carolina Police DepartmentClean Autogas Solutions, Inc.
  17. 17. Successful Fleet InitiativesIndiana Department of Transportation• Rising fuel costs were a factor for INDOT, which started exploring new ways to fuelits fleet of 2,300 light-duty trucks and vans in 2008 after gasoline and diesel pricesincreased.• “We were trying to figure out how to pay for fuel for the agency because we hadn’tbudgeted enough for gasoline and diesel, and didn’t want to pass that cost along totaxpayers,” 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, usinggasoline and propane autogas for its regional fleet. The high-performing vehiclesare used statewide to transport highway maintenance crews, signal technicians,survey crews, and construction inspectors to job sites and projects.Clean Autogas Solutions, Inc.
  18. 18. Successful Fleet InitiativesIndiana Department of Transportation• “It feels great to know that there’s a viable option out there that isn’t usinggasoline,” Joe Rudolph, INDOT’s director of technical services, says. “It’s great todrive a vehicle fueled by propane autogas. You can’t tell any difference.”• INDOT implemented a comprehensive network of refueling sites and negotiated afuel contract that saved significant taxpayer dollars; based on INDOT’s figures,savings could exceed $1 million annually. INDOT has established 115 refueling sitesstatewide, which were installed by both the agency and contracted personnel. Therefueling locations are strategically located at INDOT facilities, such that nearly allstate highways are within a 30-mile radius of a refueling site. A fuel card issued toeach driver provides dispenser access.Clean Autogas Solutions, Inc.
  19. 19. Safety“It’s difficult to change a perception without firstunderstanding the facts. Through public education andquality training, emergency responders and citizens inour communities can see the benefits of propaneautogas and understand that it is safe.”Mark Holloway, Volunteer Fire ChiefWest I-10 Fire Department, TexasClean Autogas Solutions, Inc.
  20. 20. Clean Autogas Solutions, Inc.
  21. 21. Clean Autogas Solutions, Inc.Clean Autogas Solutions, Inc.
  22. 22. • Low Upfront Vehicle Cost• Low On Site Fueling Cost• Abundant, Low Cost FuelPropane has the Lowest Cost of Entry of anyAlternative Fuel
  23. 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 fuelto operate a motor vehicle. A tax credit in the amount of $0.50 per gallon isavailable for the following alternative fuels: compressed natural gas (based on 121cubic feet), liquefied natural gas, liquefied petroleum gas, P-Series fuel, liquid fuelderived from coal through the Fischer-Tropsch process, and compressed orliquefied gas derived from biomass. For an entity to be eligible to claim the creditthey must be liable for reporting and paying the federal excise tax on the sale oruse of the fuel in a motor vehicle. Tax exempt entities such as state and localgovernments that dispense qualified fuel from an on-site fueling station for use invehicles qualify for the incentive. Eligible entities must be registered with theInternal Revenue Service (IRS). The incentive must first be taken as a credit againstthe entitys alternative fuel tax liability; any excess over this fuel tax liability may beclaimed as a direct payment from the IRS. The tax credit is not allowed if anincentive for the same alternative fuel is also determined under the rules for theethanol or biodiesel tax credits. This tax credit is applicable to fuel sold or usedbetween January 1, 2005, and December 31, 2013. (Reference Public Law 112-240and 26 U.S. Code 6426)Clean Autogas Solutions, Inc.
  24. 24. Federal Incentives• Alternative Fuel Infrastructure Tax Credit• Fueling equipment for natural gas, liquefied petroleum gas(propane), electricity, E85, or diesel fuel blends containing aminimum of 20% biodiesel installed between January 1, 2006,and December 31, 2013, is eligible for a tax credit of 30% ofthe cost, not to exceed $30,000. Fueling station owners whoinstall qualified equipment at multiple sites are allowed to usethe credit towards each location. Consumers who purchasedqualified residential fueling equipment prior to December 31,2013, may receive a tax credit of up to $1,000. Unused creditsthat qualify as general business tax credits, as defined by theInternal Revenue Service (IRS), may be carried backward oneyear and carried forward 20 years. (Reference Public Law 112-240 and 26 U.S. Code 30C and 38)Clean Autogas Solutions, Inc.
  25. 25. Wisconsin IncentivesAlternative Fuel Tax ExemptionNo county, city, village, town, or other political subdivision may levy orcollect any excise, license, privilege, or occupational tax on motorvehicle fuel or alternative fuels, or on the purchase, sale, handling, orconsumption of motor vehicle fuel or alternative fuels.(Reference Wisconsin Statutes 78.82)
  26. 26. Illinois IncentivesThe Illinois Alternate Fuels Rebate Program provides a rebate for 80% of theincremental cost of purchasing an AFV (up to $4,000), 80% of the cost of converting aconventional 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 theprogram 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 ifthe vehicle is a heavy-duty specialty vehicle that is not sold in Illinois. To qualify for afuel rebate, the entity or individual must purchase the majority of E85 or biodiesel fuelfrom 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 vehiclethat uses E85 at least half the time. The biodiesel fuel rebate (for B20 and higherblends) is for 80% of the incremental cost of the biodiesel fuel, as compared toconventional diesel. Rebates are part of the Illinois Green Fleets Program and areavailable to all qualified Illinois residents, businesses, government units (except federalgovernment), and organizations located in Illinois. (Reference 415 Illinois CompiledStatutes 120/30)Point of ContactClean Autogas Solutions, Inc.
  27. 27. Propane Autogas Resourceshttp://www.autogasusa.orgThis Propane Education & Research Council (PERC)-sponsored website providesinformation on the several different types of propane-autogas-fueled vehicles (andother types of propane equipment), fueling with propane autogas, adoptionincentives, and propane autogas webinars.http://www.propanesafety.comThis PERC website provides information and training dates for the PropaneEmergencies program. U.S. Department of Energy’s Alternative Fuels Data Center website deliversinformation on various alternative-fueled vehicles, including those fueled by propaneautogas.Clean Autogas Solutions, Inc.
  28. 28. Rich Danchisin(630) 292-6544www.cleanautogassolutions.comrich@cleanautogassolutions.comClean Autogas Solutions, Inc.
  29. 29. Clean Autogas Solutions, Inc.