WASHINGTON (August 31, 2009) — Propane is among the big winners in the $300 million U.S. Department of Energy grants announced last week to transform the nation’s vehicle fleets to support job creation, improve the environment, and reduce U.S. dependence on foreign oil.

The grants, funded through the American Recovery and Reinvestment Act stimulus bill, award more than $33.5 million to dedicated propane projects and millions more to projects that include propane among other alternative fuels. The projects will increase the number of propane-fueled vehicles and propane refueling stations in the United States. The department will coordinate the grants through its Clean Cities program, which uses local coalitions to promote the use of alternative fuels and advanced energy vehicles.

Propane is commonly used in U.S. homes and businesses, and it is gaining in popularity as an alternative fuel for fleet vehicles. Roughly 13 million cars and trucks run on propane worldwide, and about 200,000 of them are in the United States. Propane-fueled school buses and trucks are among the 9,000 new alternative fuel vehicles expected to be put on the roads through these grants.

“The Department of Energy has selected some outstanding projects that will soon put more alternative fuel vehicles on the road, and we’re gratified to see that propane is an important part of the mix,” said Roy Willis, president and CEO of the Propane Education & Research Council (PERC). “Propane is already helping Americans meet their energy needs and reduce their impact on the environment, and it stands ready to do even more.”

Propane is a low-carbon fuel that emits significantly lower amounts of greenhouse gases and smog-producing hydrocarbons than conventional fuels. Propane’s portability has made it a staple for home and water heating in rural areas, and its environment-friendly profile also makes it extremely appealing to people looking for clean energy options in transportation, said Willis. About 97 percent of the propane used in the United States is produced in North America as a byproduct of natural gas processing and oil refining.

The Energy Department estimates that the 25 cost-share projects selected for the program will help displace approximately 38 million gallons of petroleum a year.

Among the award winners:

• A Railroad Commission of Texas project that will build 35 propane refueling stations and deploy 882 propane vehicles for 40 school districts and public agencies, helping to displace more than 3 million gallons of petroleum a year. Total award: $12,633,080.
• A Texas State Technical College project that will develop 184 propane refueling stations in more than a dozen U.S. metropolitan areas, support the purchase of dedicated propane school buses and vehicles, retrain and certify U.S. veterans and out-of-work or at-risk service technicians for work in the alternative fuel and vehicle industries, and help displace more than 3 million gallons of petroleum a year. Total award: $12,299,828.
• A Virginia Department of Mines, Minerals, and Energy project featuring a national coalition — led by Alliance AutoGas — that will build 17 new propane fueling stations along roadways from Washington, D.C., to Florida to Mississippi, helping to displace an estimated 3.9 million gallons of petroleum a year. Total award: $8,605,100.
• A Triangle J Council of Governments project that will deploy eight propane stations and 363 propane vehicles and other alternative fuel vehicles in North Carolina and South Carolina, helping to displace an estimated 724,000 gallons of petroleum a year. Total award: $12,975,388.
• A Central Indiana Clean Cities project that will convert more than 600 light-duty trucks to run on bi-fuel propane, deploy other alternative fuel vehicles, add alternative fuel stations, and help displace an estimated 1 million gallons of petroleum a year. Total award: $10,125,000.

In related news, the Energy Department has selected the Alternative Fuel Trade Alliance for negotiation of an award of up to $1.6 million to raise public awareness and foster understanding of alternative fuels and advanced vehicle technologies. The Propane Education & Research Council (PERC) is one of five members of the alliance. The others are the Renewable Fuels Association, the National Biodiesel Foundation, the Clean Vehicle Education Foundation, and ASG Renaissance.

For more information about propane and how to make every energy choice count toward a better future, visit propane.com.