1

2  Explain how to implement green fleets  Learn about the incentives for converting to propane fleets  Learn about the availability and cost of propane  Identify the advantages of using propane  Understand how to safely handle propane Objectives

3  Why use green fleets?  Reduce operating costs  Reduce greenhouse gas emissions  Improve corporate image Greening of Fleets

4 How to Implement Green Fleets  Get buy-in  Create long-term objectives  Avoid setting reduction goals in absolute numbers  Anticipate obstacles  Move slowly  Improve vehicle use  Track and report progress

5  Propane is colorless, odorless byproduct of oil or natural gas refining  Odorants are added to aid in leak detection  Pressurized and stored in liquid form  Commonly used in household applications Propane Fleets Figure 1: Propane flame. Source: NAFTC.

6  Presents no threat to soil, surface water, ground water  High octane rating  Excellent properties for spark-ignition Propane Fleets Figure 2: Propane warehouse equipment. Source: NAFTC.

7  Older systems – carburetors, vapor/mixers  New systems – electronic fuel injection  Liquid injection system Propane Fleets Figure 3: liquid propane fuel injection system on Chrysler beta vehicle. Source: NAFTC.

8  Incentives  Partnership initiatives and pooled resources  Financial subsidiaries  Informational tools  Initial cost vs. federal and state incentives  American Recovery and Reinvestment Act (ARRA)  Clean Cities Program Incentives for Using Propane in Fleets

9 Did You Know? Argonne National Laboratory developed a graphical user interface-based calculator called AirCRED that calculates air pollutant emissions based on specific fleet variables. These emissions “credits” are used to determine excise tax credits. To learn more, visit: ulation/AirCRED

10 Tax Incentives  LPG fueling equipment placed in service after December 31, 2005  30% of equipment cost (not exceeding $30,000)  Alternative fuel excise tax credit  Yearly changes to tax code

11 Federal Grant Funding  Federal government = largest grant provider  U.S. Department of Energy (DOE)  U.S. Department of Transportation (DOT)  Environmental Protection Agency (EPA)  U.S. Department of Agriculture (USDA)

12 State Grant Funding  State Energy Office (SEO)  National Association of State Energy Officials directory  Alternative Fuels Data Center map  To find state-specific information, visit

13 Incentives for Propane Production  Majority of propane used in the U.S. is produced domestically  Incentives offered to natural gas producers from government (over 50% of U.S. LPG is a byproduct of natural gas processing)  Governmental incentives for propane fleet applications

14  More than 270,000 propane vehicles in 2012  Third most widely used vehicle fuel in the U.S.  Shipped via pipeline, railroad, barge, truck, tanker ship Propane Availability and Cost

15 Figure 4: Typical propane distribution route. Source: AFDC.

16 Figure 5: Propane fueling stations. Source: AFDC.

17 Figure 6: Fuel type cost comparison, Source: AFDC.

18 Propane price depends upon:  Availability of natural gas and oil  Seasonal weather patterns  Demand for LPG as home heating fuel  Transportation and distribution costs

19  Reduced greenhouse gas emissions  Can produce fewer particulate matter emissions  Lower operating costs  Nearly 90% of natural gas is produced domestically  Can be used with higher compression ratio engines for increased engine efficiency Propane Advantages

20  Things to Consider  Limited number of OEM dedicated or bi-fuel vehicles  Limited number of fueling stations when compared with conventional vehicles  Cost may be higher or lower depending upon season and weather factors

21  Vehicles must behave as well as conventional vehicles for successful implementation  Implementation should not require sacrificing performance  Safety must be considered before implementation Propane Performance and Safety

22  Performance  Power, acceleration, cruising speed are comparable  Driving range is similar to conventionally fueled vehicles  Combustion produces fewer harmful emissions  Dedicated vehicle tank space vs. bi-fuel tanks  Limited fueling locations

23 Propane Performance Summary Similar vehicle performance Higher octane rating Similar driving range Can produce fewer emissions

24 Safety  Many integrated safety features  Tank is 20 times more puncture-resistant than a conventional gasoline tank  Service by trained technician  NFPA placard display Figure 7: NFPA 704 hazard placard for propane. Source: NAFTC.

25  Non-toxic in the event of a spill  Help identify what fuel is being transported  Placards assist emergency responders  Odorants are added to gas Figure 8: Hazard Class 3 flammable placard for LPG. Source: DOT.

26 Propane Safety Summary Lower harmful emissions High ignition temperature ASME and DOT certified puncture resistant tanks No major fueling incidents Denser than air, sinks to floor/ground if leaked

27 1.True of False: Like natural gas, odorants are added to propane during processing to aid in leak detection. 2. What does LPG stand for? 3.True or False: Most states have at least one publically accessible propane fueling station. 4. Some new LPG fueled vehicles inject propane into the engine intake in _________ form. 5.True or False: Compared to conventional vehicles, propane vehicles do not perform as well. Test Your Knowledge