Michigan Propane Fleet Vehicles

One-stop for huge savings on vehicle fuel, maintenance, fueling infrastructure, and tailpipe emissions.

Propane Fleet Vehicle Types

Dedicated & Bi-Fuel Propane Engines

Dedicated Engine

Propane fueled vehicles are available from original equipment manufacturers (OEMs) and can be ordered from the OEMs direct.

Contact your local vehicle dealer and ask them about ordering your dedicated propane engine vehicle.

Bi-Fuel Engine

Vehicles can be converted by a qualified system retrofitter (QSR) to light, medium or heavy-duty vehicles.

Propane conversions take up to two days to install.

Michigan Propane Conversion Companies

Qualifying Models: Ford, Dodge, GMC, RAM, Toyota, and many more.
Any 2015 ICE or newer can be converted (MPGA requires 2020 or newer).

Autogas Technical Training Available

Autogas Technical Training Available

Qualifying Models: Ford 
2012 or newer ICE vehicle can be converted (MPGA requires 2020 or newer).

Autogas Technical Training Available

Qualifying Models: Ford, Lincoln and Mercury, Chevrolet and GMC*
2020 and older vehicles can be converted (MPGA requires 2020 or newer).

* Certain engines qualify. See EPA certified list.

Easy to Install Infrastructure

Options Onsite Standard Private station Onsite Advanced Private station
Fleet Size
Best for a fleet of less than 50
Best for 50+ vehicles
Set-Up
Onsite 1,000 – 3,000-gallon tank
Larger gallon tank, canopy & multiple dispensers
Propane Supplier Owns Infrastructure
The fleet is responsible for site preparation: crash protection and electrical.

Cost for Fleet: $1,500-$15,000 (site preparation)

The fleet is responsible for site preparation: crash protection and electrical for a two-dispenser setup.

Cost for Fleet: $5,000-$75,000 (site preparation)

Fleet Owns Infrastructure
The fleet will need to account for purchasing the propane tank, pump, motor, and dispenser.

Cost for Fleet: $20,000-$60,000 (infrastructure) + $1,500-$15,000 (site preparation)

The fleet is responsible for site preparation: crash protection and electrical for a two-dispenser setup.

Cost for Fleet: $60,000-$225,000 (infrastructure) + $5,000-$75,000 (site preparation)

Private or
Public Network
Fleets with limited space, or fleets needing more fueling locations along their routes can take advantage of this option with no infrastructure investment. Network refueling stations are accessible 24/7 through a card lock system. If a network is not currently available in your area, a propane supplier may create one for your fleet, if it’s large enough. Alternatively, multiple fleets can team up to provide adequate load for requesting a refueling network.

Propane Infrastructure Installers

Work With Your Propane Provider to
Get the Lowest Cost Per Mile

There are 380 Propane Marketers in Michigan, Use the Map to Find One in Your Local Area

Propane Public Fueling Stations
& Service Centers

Rebate Application

Receive up to $16,000 from the MPGA

The MPGA is offering fleet owners propane vehicle rebates

Apply Today! Rebates are available first come, first serve, while funding lasts.

New propane vehicle
$4,000/vehicle, up to $16,000

New converted propane vehicle
$4,000/vehicle, up to $16,000

New propane school bus
$4,000/bus, up to $16,000

Used propane school bus (not lease)
$2,000/bus, up to $4,000

  • Vehicle Information 
  • Applicant information
  • Propane Marketer information
  • Attach invoice for new propane vehicle or propane retrofit system

Return completed application in one-of-three ways:

  • Email to: mpga@kdafirm.com
  • Fax to: (517) 485-9408
  • Mail to:
    MPGA
    629 W. Hillsdale St.
    Lansing, MI 48933

    OR

  • Upload Completed Application Below

Questions? Contact the Rebate Team: (517) 312-0097

Michigan Grants

Michigan Clean Diesel Program

COMING SOON

Includes propane vehicles. Buses, medium heavy-duty or heavy heavy-duty trucks, marine engines, locomotives, non-road engines, equipment, or vehicles used in: construction, handling of cargo (including at a port, airport, or train yard), agriculture, mining, industry and energy production.

A total of $375,960 is available. All grant proposals should be between $25,000 (the minimum) and $375,960 (the maximum).

CONTACT:
Dan Zbozien, EGLEZbozienD@Michigan.gov(517) 290-5722

More info->

Michigan Clean Bus Energy Grant Part 3
What:

MI Clean School Bus Grant – $125 million to purchase no- or low-greenhouse gas emission school buses, including alternative fuel vehicles, such as fueling stations, as eligible expenses.

Who Can Apply:

  • Any School District
  • School District must be the applicant, no third-party vendors

What:
Propane School Buses:

  • 40% Costs Covered – prioritized school districts
  • 25% Costs Covered – non-prioritized school districts
  • 1 School Bus minimum, 10 School Bus maximum, or 50% of your fleet, whichever is fewer.

Detail Launch:
November 4th, 2024

Grant Deadline:
May 2nd, 2025

Link to Grant

Contact:
Troy Hansbarger, Michigan Dept. of Education
hansbargert@michigan.gov

Katrina Morris, Executive Director, Michigan Association of Pupil Transportation
kmorris@wsesd.org

Add-Ons (Each qualifying add-on increases the funding amount by 5%):

High need district/SAIPE: School Districts listed in the Small Area Income and Poverty Estimates (SAIPE)  School District estimates for 2022 as having 15% or more students living in poverty. 

Tribal School: School districts that are federally funded through the Bureau of Indian Affairs, School districts that receive basic support payments under section 7703(b)(1) of Title 20 for children who reside on Indian land

NAAQS: School districts residing in a county currently designated as in nonattainment or maintenance status for NAAQS

Free/Reduced Lunch: School Districts with the percentage of students receiving free and reduced lunch for the 2022-23 school year greater than or equal to 70%

Rural School District: Limited to school districts identified with locale codes “42 rural distant or “43 rural remotes” by the National Center for Educational Statistics

ADA-Accessible Bus School districts wishing to utilize funding to purchase an ADFA-accessible school bus

The Michigan Department of Education (MDOE) encourages school districts to stack funding; Stackable funding must be received on January 1st or after. The Michigan Propane Gas Association’s propane vehicle rebate qualifies as additional funding. If you apply, stack the MPGA’s rebate funding with it! 

National EPA Grants

Clean School Bus Program Rebates
Deadline: Round Closed, Next round coming soon
 
Includes propane school buses or buses in service for transportation of students. EPA anticipates awarding approximately $400 million in competitive grant funding under the Clean School Bus (CSB) Grants Program Notice of Funding Opportunity (NOFO).
 
CONTACT:
Clean School Bus Program
 
Diesel Emissions Reduction Act (DERA) Grant

CLOSED

Includes propane vehicles. Eligible diesel vehicles, engines, and equipment include School buses, Class 5 – Class 8 heavy-duty highway vehicles, Locomotive engines, Marine engines, Non-road engines, equipment or vehicles used in construction, handling of cargo (including at ports or airports), agriculture, mining or energy production (including stationary generators and pumps).

CONTACT:DERA Helplinedera@epa.gov877-623-2322

National Tax Credit Information

Alternative Fuel Refueling Property Credit

 If you’re installing propane fueling infrastructure between January 1, 2023, and December 31, 2032, you may qualify for the Alternative Fuel Vehicle Refueling Property Credit. Businesses can receive:

  • 6% of installation costs (up to $100,000), or
  • 30% of installation costs (up to $100,000) if labor and apprenticeship rules are met.

This credit applies to fuel dispensers and essential parts like installation labor. Tax-exempt entities, including state and local governments, may also qualify for the same credit.

For residential installations, consumers can claim a credit of up to 30% of the cost (up to $1,000) for propane fueling equipment installed at their homes.

To qualify, fueling equipment must be installed in a low-income or rural area. Check if your location qualifies using the 30C Tax Credit Eligibility Locator.

For more information, see IRS Form 8911.