Michigan Propane Fleet Vehicles
One-stop for huge savings on vehicle fuel, maintenance, fueling infrastructure, and tailpipe emissions.
STEP 1: Propane Fleet Vehicle Types
Cost Per Mile Comparison - F-550
Frequently Asked Questions
Propane engines are spark-ignited, internal combustion engines, designed much like gasoline vehicles. There are two types of propane engines: dedicated (100% propane) and bi-fuel (50% gasoline, 50% propane).
Propane is generally 30% cheaper over gasoline. Private fleets with their own propane pumps and tank pay a much lower price than the retail fuel pump cost.
Example: If regular gasoline is at an average of $4.50/gal, autogas propane is at an average of $3.59/gal. If you run on 20 gallons of regular gasoline per week for instance, you could save over $70 per month and over $800 per year on propane.
In addition to a reduced fuel cost, propane engines require less oil and filters. That’s because there’s minimal carbon buildup from propane. Overall oil, filters and labor are significantly less on a propane engine.
Fleets owners save nearly 50% on fuel and maintenance costs compared to gasoline or diesel.
Yes, the EPA considers propane as a clean alternative fuel under the Energy Policy Act of 1992.
Propane autogas vehicles cut significantly more NOx (nitrogen oxides) and greenhouse gas emissions compared to diesel and gasoline. The EPA considers propane a clean fuel. Propane is known as the number one alternative fuel around the world.
Propane vehicles have been widely used and refined for decades, and a propane vehicle’s power, acceleration, and cruising speed are similar to those of conventionally fueled vehicles.
Propane autogas is nontoxic, has a lower flammability range than conventional gasoline, and odorized forceasy detection. Their containers are equipped with safety devices, including pressure-relief valves, shut-off valves that detect fuel line ruptures (due to collisions on the road), and overfill protection. As well as being constructed from carbon steel and are 20 times more puncture-resistant than conventional gasoline and diesel tanks.
You can either buy a propane vehicle with a dedicated propane engine or you can have your vehicle converted with a bi-fuel engine so it runs on both gasoline and propane.
1 gallon of propane is equivalent to 0.67 gasoline gallon equivalent.
1 gallon of propane is equivalent to 0.59 diesel gallon equivalent.
One reason is fueling station development throughout the country. Most have been built around delivering gasoline and as a result, has driven the bulk of the automobile market toward gasoline. In recent years, however, autogas stations have continued to grow across the state.
The Michigan Propane Gas Association offers a $4,000 rebate (up to $16,000) to Michigan residents who are either buying a new propane vehicle OR converting their vehicle to propane.State and federal funds are available. CLICK HERE.
STEP 2: Propane Engines & Conversions
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.
Peak Power & Torque
Roush 7.3L V8 Engine - Class 3-7 Chassis
| Engine RPM | Power | Torque |
|---|---|---|
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.
Peak Power & Torque
GM 6.6L V8 L8T*
| Power | Torque |
|---|---|
Source: https://gmauthority.com/blog/2019/02/6-6l-v8-l8t-gm-engine-specs-released/
*Based on Gasoline Engine—Propane Bi-Fuel Engines Perform Greater Than or Equal to Traditional Engines
Michigan Propane Conversion Companies
Prins is a European manufacturer and their distributor in the US is Alliance Autogas.
Any 2015 ICE or newer can be converted.
Qualifying Models: Ford, Dodge, GMC, RAM, Toyota, and many more.
2012 or newer ICE vehicle can be converted.
Qualifying Models: Ford
2020 and older vehicles can be converted.
Qualifying Models: Ford, Lincoln and Mercury, Chevrolet and GMC*
* Certain engines qualify. See EPA certified list.
**Only 2020 and newer vehicles qualify for the MPGA $4,000 Propane Vehicle Rebate Program.
Autogas Technical Training Available
Frequently Asked Questions
Propane engines are spark-ignited, internal combustion engines, designed much like gasoline vehicles There are two types of propane engines: dedicated (100% propane) and bi-fuel (50% gasoline, 50% propane).
A dedicated propane engine is an engine installed in a vehicle so that it runs solely on propane and can be ordered or purchased straight from the manufacture or your local dealership.
A bi-fuel propane engine is an engine installed in a vehicle where it runs on propane and the original fuel (gasoline or diesel). Vehicles can be converted by a qualified system retrofitter (QSR) to light, medium or heavy-duty vehicles and can installed in a little as one day.
The most common systems are the vapour sequential injection and liquid injection systems.
The vapour sequential injection system injects the fuel in a gaseous phase but aligns the gas injections to what the original electronic gasoline controls of the car command.
The liquid injection system exactly replicates gasoline systems and injects the fuel in a liquid phase without prior vaporisation. This enables more precise metering of the fuel and an injection timed to the opening of the intake valves.
Vehicles equipped with ROUSH CleanTech’s propane autogas fuel systems retain equivalent horsepower, torque, towing capacity and warranty coverage as gas and diesel counterparts.
A propane vehicle’s power, acceleration, and cruising speed are similar to those of conventionally fueled vehicles.
Follow the manufacturer’s recommended oil change intervals, but be aware that the oil may not look like it needs changing because propane burns cleaner. The oil still needs to be changed at the recommended interval, there are necessary protective additives in engine oils that can still wear out. Some regular propane fuel users report that they can wait until 15,000 miles before needing an oil change.
No. Burning propane in your engine should extend its life compared to burning gasoline. Propane burns cleaner than gasoline, so there are fewer impurities in the cylinder to cause wear and the engine oil stays cleaner and lasts longer. Most fleet managers report longer engine life on their propane-equipped vehicles versus gasoline.
An engine that runs on propane will generally run longer and require less maintenance than running on gasoline. Propane is a lot easier to vaporize in the carburetor and propane, being gaseous at atmospheric pressure and temperatures, won’t leave deposits behind.
The operation with alternative fuels have no negative effects on engine wear rates and durability. Engine thermal loads are equivalent to 100% diesel operation, no excess wear of combustion chamber components.
Most conversion kits feature a tank specially designed to fit in a vehicle’s spare tire carrier location. If you don’t want to sacrifice your spare tire room, extended range tanks of 50 to 80 gallons are available for mounting in truck beds or frame mounting on vehicles that have space available for it. For vehicles converted to a dedicated propane system, a propane tank can usually be fitted where the gasoline tank was previously.
The pressure in the engine goes down due to the propane tank losing pressure from the lack of propane. Each injector in the engine, that once ran on propane, turns to run on gasoline automatically. This process does not hurt the engine while you are driving.
No, the manufacturer’s’ warranty is not affected when you get your vehicle converted to propane.
Alliance Autogas offers a 5-year / 100,000-mile warranty covering all parts of the system.
The ROUSH CleanTech propane auto-gas fuel system is covered by a limited 1-year / 12,000-mile warranty
Check with your propane autogas manufacturer to see if they offer a warranty for the conversion system you chose.
Propane parts are available from original equipment manufacturers (OEM’S) or contact your local propane conversion company.
The ICOM propane conversion does not splice into the factory wiring harness or fuel system at all, and will not cause any warning lights to come on. The only wiring into the vehicle is to the battery and 1 wire to a spark plug for RPM monitoring.
Since holes must be drilled into the intake manifold for injector placement, (for a bi-fuel conversion) reversing a conversion may require installing a new intake manifold or plugging these holes in some other way.
A properly installed and tuned conversion should, in most cases, not cause any trouble for a vehicle’s onboard diagnostic systems or ECM/ECU.
On average, a propane vehicle conversion can cost anywhere from $6,000 to $9,000 depending on the vehicle and kit installed.
STEP 3: Fueling & Infrastructure
Private (fleet owned or propane supplier owned) and Public Options Available
| Options | Onsite Standard Private station | Onsite Advanced Private station |
|---|---|---|
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
Frequently Asked Questions
Michigan has over 60 public fueling stations and 3 private/keycard locations to fill up your propane autogas vehicle.
Michigan has 25 repair propane autogas service centers. Conversion centers also repair their own systems that they install.
You can contact your local propane marketer and they can offer an inexpensive lease of the tank, pump, and dispensing equipment in return for a fuel supply contract. OR, you can contact an infrastructure manufacture, like IPS, to purchase your own fueling equipment and shop around for propane fueling prices.
Unlike diesel’s one-year shelf life and gasoline’s 3 to 6 month shelf life, propane can be stored indefinitely so it is highly effective and convenient for both residential and commercial sectors.
Normal refueling rates are typically 5 and 8 gallons per minute but may vary depending on the ambient temperature conditions and pump capacity go the refueling equipment being used.
If fueling issues are noticed then it is recommended to contact your fueling provider.
STEP 4: Funding Options
Receive up to $16,000 from the MPGA
The Michigan Propane Gas Association (MPGA) is offering entities $4,000 rebates—up to $16,000—when purchasing a new propane vehicle or converting an existing vehicle to propane. Rebates are available first come, first serve, while funding lasts.
Vehicle qualifications include:
- Any 2020 or newer vehicles converted to a propane Autogas system (U.S. EPA approved).
- Vehicles registered and operated in Michigan.
- Propane owners do not qualify; however, employees of propane companies do qualify.
- Vehicle information.
- Applicant information.
- Propane marketer information.
- Attach invoice for new propane vehicle or propane retrofit system.
Funding qualifications include:
- Limit of four (4) rebates per single entity.
- All eligible purchases or propane retrofit installations must occur within 2024.
- Before receiving an MPGA Autogas rebate, all federal and state incentives must be applied, and funds may be used for incremental cost of propane vehicle vs. gasoline or diesel vehicle only.
- Deadline: Jan 1, 2024 – Dec 31, 2024.
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
Questions? Contact the Rebate Team: (517) 312-0097
Frequently Asked Questions
The Michigan Propane Gas Association offers a $4,000 rebate (up to $16,000) to Michigan residents that are either buying a new propane vehicle OR converting their vehicle to propane.
State and Federal funds are available. Go here: MiAutogas.com
- Entities residing Michigan where on-road vehicles are registered and operated in Michigan.
- First time purchasing a new propane vehicle or converting an existing vehicle in 2024.
- Any 2020 or newer OEM vehicle converted to a propane autogas system that is EPA approved.
- A vehicle with no more than 5,000 miles.
Learn what make and model vehicles here.
Michigan has 6 Propane Autogas conversion locations. Click here to view map.
You can purchase propane vehicles straight from the manufacture or your local dealership; just let them know you would like to purchase a propane vehicle.
Michigan Grants
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
What:
MI Clean School Bus Grant – $125 million to purchase no- or low-greenhouse gas emission school buses, including alternative fuel vehicles, such as charging 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:
August 1st, 2024
Grant Deadline:
October 12, 2024
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
Opened: Tuesday, May 7th, 2024
Deadline: Friday, December 6th, 2024 at 11:59 PM ET
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
Good news for fleets running on propane! You can claim a $0.37 per gallon tax credit for propane used to fuel your vehicles through December 31, 2024. This applies to propane purchased after December 31, 2015, and is calculated using the gasoline gallon equivalent (GGE), which equals 5.75 pounds of propane.
Even tax-exempt entities like state and local governments can benefit if they use propane from on-site fueling stations. To qualify, you must be registered with the IRS and can apply this credit against your alternative fuel tax liability, with any excess available as a direct payment.
Want to claim your credit? Check out IRS Form 4136 for details.
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.
Certain uses of propane in vehicles are exempt from federal fuel taxes. If propane is used in any of the following ways, it may qualify for an exemption:
- On farms for agricultural purposes
- In specific intercity or local buses
- In school buses
- Exclusively by non-profit educational organizations
- Exclusively by state or local governments
Note that tax-exempt entities that don’t pay excise taxes on transportation fuel are not eligible. For further information, refer to IRS Publication 510.
