Michigan Propane School Buses
One-stop for huge savings on vehicle fuel, maintenance, fueling infrastructure, and tailpipe emissions.
STEP 1: Propane Bus Vehicle Types
Cost Per Mile - Type C
| Fuel | Cost/Mile |
|---|---|
|
Propane |
$0.63 |
|
Electricity |
$2.02 |
|
Diesel |
$0.86 |
|
Gasoline |
$0.85 |
|
Natural Gas |
$0.76 |
Propane Out-Performs Electric
A Permit and basic electricity gets your Propane Fueling Station up and running. Propane infrastructure is easily adjustable where it can grow as your propane fleet grows.
| Fuel | Propane | Electric | Diesel |
|---|---|---|---|
|
Purchase Cost |
$140,000 / bus |
$410,000 / bus |
$138,000 / bus |
|
|
$20K – $60K $1,500 – $15K |
$80K – $480K |
N/A |
|
Fuel Range |
up to |
up to |
up to |
|
Fueling / Charging Time |
6-8 min. |
6-8 hours |
6-8 min. |
|
Cost Per Mile* |
$0.63 |
$2.02 |
$0.86 |
School Bus Weight Comparisons
(based on 72-passengers school buses)
| Fuel | Weight |
|---|---|
|
Propane |
18,887 LBs |
|
Diesel |
19,237 LBs |
|
Electric |
22,679 LBs |
Propane Provides Cleaner Air for the Kids
Propane is a clean alternative fuel that’s been used for decades to power light, medium, and heavy-duty propane vehicles.
Source: AFDC.energy.gov
Frequently Asked Questions
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.
There are over 700 propane buses and over 33,000 propane vehicles in operation around the state of Michigan. Twenty-five school districts are currently using propane in their bus fleet, but that number is growing.
Propane Autogas is nontoxic, has a lower flammability range than conventional gasoline, and odorized for easy detection. Propane containers are equipped with safety devices, including pressure-relief valves, shut-off valves that detect fuel line ruptures, and overfill protection. As well as being constructed from carbon steel and are 20 times more puncture-resistant than conventional gasoline and diesel tanks.
When you switch your bus fleet to propane, you not only save on fuel costs, but maintenance costs as well. Propane does not require extra fuel conditioners like diesel, requires less oil by volume, does not require an engine block heater and engines last longer due to propane’s clean properties.
The Michigan Propane Gas Association (MPGA) is offering schools $4,000 rebates—up to $16,000—when purchasing new propane buses or $2,000 rebates—up to $4,000—when purchasing used propane buses.
STEP 2: School Bus Propane Engines
Click Image to Enlarge
Micro Bird G5 School Bus
Peak Power & Torque
| Chassis Type | Power | Torque |
|---|---|---|
|
2022 E-350 |
325 hp @ 3750 rpm |
450 ft-lbs @ 3750 rpm |
|
2022 E-450 |
300 HP @ 3,800 |
425 lb-ft @ 3,250 |
Click Image to Enlarge
Blue Bird Type C School Bus
Peak Power & Torque
| Governed Speed | Power | Torque |
|---|---|---|
|
4250 rpm |
320 hp |
460 lb-ft |
Source: https://www.blue-bird.com/
Purchase New / Used School Buses and Maintenance through Roush and Holland Bus Co.
Frequently Asked Questions
Vehicles equipped with Roush CleanTech’s propane autogas fuel systems retain equivalent horsepower, torque, towing capacity and warranty coverage as gas and diesel counterparts.
Propane shines in cold temperatures. It does not require a block heater, unlike diesel, and heats the bus up quicker in the cold. Frank Miller, Fleet Manager for Brown City Community Schools in Brown City, MI, stated that their propane buses performed “absolutely perfect in the frigid cold.”
The average mileage a Type C propane school bus can get on one tank of propane is 300-350 miles.
On average, the size of a propane tank on a Type C school bus holds about 67-93 gallons of usable propane.
Yes, Roush CleanTech offers online, onsite and a 2-day training factory workshop for your bus mechanics to get trained to work on propane buses.
On average, a Type C propane school bus costs about $108,000.
Once you have decided to make the switch to propane, reach out to your local propane supplier or propane bus dealer and they will get you started on converting your fleet to propane.
STEP 3: Fueling & Infrastructure
| Off-site Private/Public Network | On-site Standard Private Fueling Station | On-site Advanced Private Fueling Station | |
|---|---|---|---|
|
Ownership |
None, Off-site Fueling Station |
On-site, Propane Supplier Owns |
On-site, Propane Supplier Owns |
|
Vehicle Access |
24/7 by Keycard |
24/7 |
24/7 |
|
Vehicle Limit |
Unlimited |
< 50 vehicles |
50 + vehicles |
|
Infrastructure Costs |
None |
District Covers
Onsite Prep Costs
$1,500 – $15,000
(Crash Protection, Electrical) |
District Covers
Onsite Prep Costs
$5,000 – $75,000
(Crash Protection, Electrical) |
|
Propane Tank Size |
N/A |
Propane Supplier Sets
1,000 – 3,000 Gallon Propane Tank |
Propane Supplier Sets
High-Capacity Propane Tank w/Canopy |
|
Equipment Costs |
None |
None—if Owned by Propane Supplier Propane Supplier Installs Pump, Meter and 1 or more Dispensers If School District Owns Equipment: |
None—if Owned by Propane Supplier Propane Supplier Installs Pump, Meter and Multiple Fuel Dispensers If School District Owns Equipment: |
|
Propane Cost per Gallon |
Negotiated with Propane Supplier |
Negotiated with Propane Supplier |
Negotiated with Propane Supplier |
Work With Your Propane Provider to
Get the Lowest Cost Per Mile
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
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.
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, they can contact an infrastructure manufacture to purchase your own fueling equipment and shop around for propane fueling prices.
STEP 4: Funding Options
Receive up to $16,000 from the MPGA
The Michigan Propane Gas Association (MPGA) is offering schools $4,000 rebates—up to $16,000—when purchasing new propane buses or $2,000 rebates—up to $4,000—when purchasing used propane buses. Rebates are available first come, first serve, while funding lasts.
Vehicle qualifications include:
New Bus Qualifications Include:
- School Buses registered and operated in Michigan
- New Propane School Buses
- 2020 or newer buses
Used Bus Qualifications Include:
- School Buses registered and operated in Michigan
- Used propane school buses (not lease)
- 5 years or newer (2018-2024)
- Must be first-time users of propane school buses
- 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 ($4,000 ea.)
- All eligible purchases 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 vehicles vs. gasoline or diesel vehicles only
- Deadline: Jan 1, 2024 – Dec 31, 2024
- Limit of two (2) rebates per single entity ($2,000 ea.)
- All eligible purchases 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 vehicles vs. gasoline or diesel vehicles 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 (MPGA) is offering schools $4,000 rebates—up to $16,000—when purchasing new propane buses or $2,000 rebates—up to $4,000—when purchasing used propane buses.
- Entities residing in 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
- Purchase any 2020 or newer propane school bus
- New vehicles have no more than 5,000 miles.
- Entities residing in Michigan where on-road vehicles are registered and operated in Michigan
- Must be the first time purchasing used propane buses (not lease)
- Any 2018 or newer used propane bus
Yes, we encourage all existing fleets to apply for the MPGA’s propane vehicle rebate. However, the rebate program rewards new propane vehicle owners as a higher priority, and then considers existing propane fleets at the end of the year.
You can purchase propane vehicles straight from the manufacture or your local dealership; just let them know you would like to purchase a propane school bus.
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.
