Propane Key to Federal Government`s Clean Energy Strategy

American Recovery and Reinvestment Act grants aim to boost propane vehicles and
fueling stations, create green-collar jobs, curb pollution, reduce dependence on
foreign oil
WASHINGTON--(Business Wire)--
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.

The Propane Education & Research Council was authorized by the U.S. Congress
with the passage of Public Law 104-284, the Propane Education and Research Act
(PERA), signed into law on October 11, 1996. The mission of the Propane
Education & Research Council is to promote the safe, efficient use of odorized
propane gas as a preferred energy source.

For the Propane Education & Research Council
Seth Pederson, 612-305-6153
seth.pederson@collemcvoy.com

Copyright Business Wire 2009