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Today’s Funding and Incentives for Propane Vehicles

UPDATED September 1, 2024

Bookmark this page! We update it regularly with new information about these programs.

Introduction

ROUSH CleanTech’s low-emission propane autogas 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 standards, 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 0.02 g/bhp-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 achieve 2027 proposed standards on nitrogen oxide.

Clean School Bus Program

For: propane school buses

“The funding we received from rebates and grants has gone back into the transportation budget to fund the purchase of additional clean school buses and other transportation projects.” — Newport News Public Schools, Virginia

The Environmental Protection Agency introduced the Clean School Bus Program in 2022 through the Infrastructure Investment and Jobs Act. The federal program provides $5 billion over five years to replace existing school buses with low- and zero-emission school buses through rebates (between $20,000 and $35,000 available for propane buses). 

Blue Bird propane school buses equipped with ROUSH CleanTech engines are eligible for the Clean School Bus Program. In fact, in 2024, more than $6.7 million was allocated to 58 districts for the purchase of 269 clean propane autogas buses. 

The EPA provides guidance on eligibility, bus replacement, cost share, selection process and a prioritized applicant list. For more information, visit EPA’s Clean School Bus Program Funding and come back to this page often for updates.

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: 

Alternative fuels tax credits include a $0.37 per gallon tax credit for propane autogas purchased, and up to $30,000 for propane station infrastructure.

Learn more 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. 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.

Learn more here.

Updated September 2024

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