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There is No Single Solution for Transportation

By January 11, 2021January 13th, 2021Blog

There is No Single Solution for Transportation

The federal alternative fuel tax credits have been extended through Dec. 31, 2021 for both fuel and infrastructure.

This is good news for our propane autogas customers, who will continue to get back 36 cents per gallon of propane they use throughout the year. In addition, the legislation provides a fueling station credit of 30% of infrastructure costs, up to $30,000 per property.

It’s also good news for our battery electric vehicle customers, because it extends a $30,000 credit for installation of electric vehicle chargers and other alternative fuel vehicle refueling property. Companies, like Penske Truck Leasing, have been able to expand their electric fleets due to incentives such as this that make the financial model make sense.

Most importantly, it’s good news that our nation’s legislators recognize there is no single alternative fuel solution for fleet transportation. It’s going to take all types of energy sources and innovation to help us substantially reduce emissions, better protect the environment, and develop a diverse energy portfolio that benefits the U.S. economy, fleets and consumers.

Gibson’s Heating & Plumbing has firsthand experience of the benefits. The company received alternative fuel tax credits of $8,000 for each of its 38 propane vehicles over the past two years. That’s on top of the $8,850 per month it saved in propane fuel compared with its gasoline counterparts. Propane has been so successful that the company’s entire fleet operates on the domestic fuel, and the company remains committed to a 100% propane fleet. You can read more about their propane vehicle journey in this case study.

Fuel suppliers are ready to help with the transition as well. For example, Indiana-based Propane Autogas LLC fuels 150 propane school buses operated by districts in the state. The supplier recognizes that fleets may be familiar with the benefits of propane autogas, but may not have the means to establish a new fuel — whether it be room in their transportation budget or a location for fueling infrastructure. They developed a four-step approach to help customers with the transition:

  1. Education. The company educates districts about the cost-saving, emission-reducing benefits of propane autogas.
  2. Funding assistance. A company grant writing team helps identify and secure school bus funding for districts needing fiscal assistance.
  3. Fueling infrastructure. They offer public fueling, and for customers that want on-site infrastructure, they install a no-cost fueling station in exchange for a fuel contract.
  4. Maintenance. The company has certified mechanics providing maintenance for both propane infrastructure and vehicles.

Energy diversity for transportation is a good thing. Tax credits and other funding can help you move your fleet to clean advanced transportation, allowing you to reduce costs and emissions. Call us at 800.59.ROUSH to learn how.

Here’s to a new year filled with financial and environmental health for your families, communities and businesses.