Propane Industry Funding Supports Multi-Million Dollar Program


October 26, 2000

Washington, D.C. - In a continuing effort to put more clean-burning vehicles on the nation's roads, the Propane Education & Research Council and the Propane Vehicle Council have awarded several companies, organizations and states $500,000 to fund numerous propane demonstration projects. The award winners have contributed approximately 90% matching funds toward the projects-- raising the total program to more than $6.2 million. The projects are expected to generate fuel sales equivalent to 4.6 million gallons of propane annually.

The purpose of the demonstration program is to identify and make public the air quality benefits of propane, reduce foreign oil imports, expand the awareness of propane as an alternative transportation fuel, and demonstrate the performance of propane-powered vehicles. The eight projects awarded are:

The State of Texas was awarded $50,000 to provide rebates to municipalities for the incremental costs of purchasing propane school buses. The total cost for this project is $150,000.

Timeless Technologies, Exeter, NH, was awarded $100,000 to purchase three 22-foot shuttle/transit hybrid electric buses to operate within New England Regional Transit Authority routes. The total cost for this project is $2.4 million.

The Massachusetts Division of Energy Resources (DOER) was awarded $40,000 to pay for half of the incremental costs of up to 20 light-duty, propane-fueled trucks for use by the Massachusetts Department of Forests and Parks in western and southeastern Massachusetts. The total cost for this project is $568,469.

CleanFUEL USA, Maricopa, AZ, was awarded $46,000 to help set up eight propane fueling stations in the Maricopa area to serve existing and potential new fleets. The total cost for this project is $467,100.

Dyad Corporation, Milwaukee, WI, was awarded $39,000 to promote the use of propane fuel in airplane service vehicles at the General Mitchell International Airport. The total cost for this project is $161,000.

Campora Propane Service, Lake Tahoe, NV, was awarded $25,000 to establish both a compressed natural gas and propane public fueling station with both systems providing alternative fuel for the South Lake Tahoe area. The total cost for this project is $235,866.

The following two projects have been granted funds through the Propane Education & Research Council demonstration program and the U.S. Department of Transportation's Congestion Mitigation and Air Quality Program (CMAQ).

Kentucky Clean Cities was awarded $150,000 to assist the Cincinnati/Northern Kentucky International Airport Project. This project will invest more than $500,000 in propane vehicle purchases and an additional $1 million in a stationary propane electrical generation system. The total cost of this project is estimated at $1.6 million.

Ferrellgas of Liberty, MO, in partnership with the Kansas City Regional Clean Cities Coalition, was awarded $50,000 to assist with the installation of five public access propane-fueling sites along three interstate highway corridors and pay for the incremental cost of 125 propane vehicles. This project is valued at $690,000.

Propane is the most widely used alternative motor fuel in the world. Nearly four million vehicles are fueled by propane in nearly 40 countries.

Since September 1998, the Propane Education & Research Council has approved nearly $1 million in funding to support numerous propane vehicle demonstration projects. Working with the Propane Vehicle Council, the Council has leveraged that investment into an $8.7 million motor fuel initiative with the assistance of matching funds from the federal government and other public and private organizations, including several propane retailers.

"The success of this program speaks volumes of propane's proven track record in the motor fuel market," said Propane Education & Research Council President Roy Willis. "We can only expect the number of propane-fueled vehicles to grow as an increasing number of fleet managers see for themselves why it makes sense economically and environmentally to drive with propane," added Willis.

For example, the costs associated with building a refueling location are a fraction of those for compressed natural gas. According to the U.S. Department of Energy's Alternative Fuels Data Center, the number of propane refueling locations in the U.S. (4,172) far exceeds the number of sites for all other alternative fuels combined.

The mission of the Propane Education & Research Council is to promote the safe, efficient use of odorized propane gas as a preferred energy source. For more information about the Council, please call 202-452-8975 or visit their web site at