Today’s Funding and Incentives for Propane Vehicles
UPDATED March 14, 2025
Bookmark this page! We update it regularly with new information about these programs.
Introduction
ROUSH CleanTech’s low-emission propane vehicles are prime for a variety of robust state and federal funding programs. These opportunities can assist propane fleets across many industries, including:
- Propane school buses
- Propane transit vehicles
- Propane commercial trucks
Our propane engines are 90% cleaner in nitrogen oxides than current federal emissions regulations, making them eligible for many funding opportunities that require even the most stringent emissions standards. ROUSH CleanTech’s vehicles:
- Exceed expectations: Using the Ford 7.3L V8 engine, our propane fuel system is certified to the ultra-low nitrogen oxide level of 20 mg/hp-hr.
- Meet the strictest of standards: The Environmental Protection Agency and the California Air Resources Board have certified ROUSH CleanTech’s propane fuel systems.
Help you plan ahead: Our vehicles are ready to meet EPA and CARB’s 2031 emissions standard.
Volkswagen Settlement Funding
For: School buses, transit vehicles
“Indiana awarded nine school districts nearly $2.3 million for 76 propane buses in its second round of Volkswagen settlement money.” — Indiana Department of Environmental Management, Indiana
In 2016, Volkswagen was found guilty of violating the Clean Air Act and agreed to spend up to $14.7 billion to settle allegations of cheating emissions. Settlement funds support national- and state-level projects that reduce nitrogen oxide emissions. Part of the settlement, called the Environmental Mitigation Trust, designated $2.9 billion to fund environmental mitigation projects. Funds are allocated through designated state beneficiaries. To find your state beneficiary and apply for funding, visit the National Association of Clean Air Agency website.
Federal and State Funding
For: School buses, transit vehicles, commercial trucks
“Through the Section 5339 funding federal program, we’ll receive an 85% match for the purchase of the new propane vehicles.” — People’s Transit, South Dakota
Propane is classified as an alternative fuel by the Department of Energy, and there are numerous federal and state funding programs available to support propane autogas fleets. Major pieces of legislation that encourage propane autogas adoption include:
- Infrastructure and Jobs Act (2021)
- Diesel Emissions Reduction Act (DERA) (2005)
View a complete list of funding opportunities from the Department of Energy’s Alternative Fuels Data Center at https://afdc.energy.gov/fuels/laws/LPG.
The Federal Transit Administration (FTA) invests more than $12 billion annually to support and expand public transit, including an 85% match on the purchase of propane vehicles. The ROUSH CleanTech Ford E-450 and the Blue Bird Vision activity bus are Altoona-tested and meet all federal Buy America standards, making fleets that purchase these models eligible for federal purchasing programs. You can view a comprehensive list of funding opportunities on the FTA website.
Private and Public Incentive Programs
For: school buses, transit vehicles, commercial trucks
“We are excited to bring in three new vehicles that use a cleaner fuel source and have expected lower maintenance costs. With the purchase, we were able to secure increased federal transportation support and a Federal Transit Authority fuel subsidy, saving our taxpayers money.” — Cherokee Area Transportation Services, Georgia
There are many incentives and support programs led by state propane associations, propane providers and wholesale suppliers. For example, the Missouri Propane Education & Research Council pledged $1 million to help school districts transition from diesel to propane buses. The Propane Education & Research Council’s funding center also has additional resources on state incentive programs.
Low emission vehicles fueled by propane autogas are a readily available, sustainable transportation solution that provide a smart return on investment.
Updated March 2025
