New Legislation Tabled Promoting Propane Autogas

A bill promoting tax credits for autogas and propane-powered vehicles has been tabled in Washington. It seeks to promote the clean-burning fuel as an alternative energy source and reduce America's dependance on foreign oil. (image:

A bill promoting propane autogas as an alternative transport fuel to develop cleaner energy and less dependence on foreign oil has been tabled in Washington, reported Friday.

The legislation seeks to extend tax credits for autogas, the purchase of autogas vehicles and the installation of autogas refueling infrastructure for another five years. Tax credits introduced under a similar bill in 2005 have expired or are about to run out.

There are currently 15 million propane-powered vehicles worldwide and autogas is the third most popular vehicle fuel. It is cheaper and cleaner burning than gasoline or diesel, with fewer greenhouse gas, carbon and particulate emissions. And while gasoline costs are soaring amid global fears of crude oil supply, autogas is produced domestically and propane supply is projected to increase during the next decade thanks to abundant natural gas shale formations.
House Republican John Carter and Democrat Senator Ben Cardin introduced the Propane Green Autogas Solution Act this week, reported.

“Our nation must move to a more sustainable energy policy that lessens our dependence on foreign energy sources,” Sen. Cardin said. “It is in our national interest – and national security interest – to encourage alternative energy sources, including propane, as a way to move our economy forward and protect our environment.”

Rep. Carter said propane was a proven winner as an alternative fuel. “As America searches for new sources of energy to lower consumer costs and cut our dependence on foreign oil, propane is a leading contender.”

The National Propane Gas Association (NPGA) president and CEO Richard Roldan said the bill offered the kind of commitments necessary to keep building the propane autogas market.

Extending these tax credits will move this country towards greater use of clean, domestic fuels and the increased use of propane autogas will provide consumers and fleet operators with a clean, domestic, abundant and efficient alternative to fuels derived from foreign sources.

Ferrellgas Partners, L.P. also applauded the bill’s introduction, calling it a significant step toward a greener, more fuel-efficient future for America.

“We are extremely pleased to see the introduction of this Act and believe that its passage would be a tremendous boost for what promises to be the fastest growing segment of the retail propane industry,” said George Koloroutis, president of Ferrell North America.

President Obama has recently set out an energy vision to reduce America’s oil imports by a third by 2025 by investing in alternative and more sustainable energies. Propane is well placed as an viable alternative to help meet this vision, with countless fleets already running on LPG across the country. And though there are far fewer LPG fuel stations, the proposed tax credit for developing fueling infrastructure would help address this. awaits the outcome of this bill with interest and promises to keep you updated.

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