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

Fuel Maintenance Cost/Mile Fuel Cost/Mile Total Cost/Mile
Propane
$0.06
$0.18
$0.24
Diesel
$0.24
$0.28
$0.53
Fuel: Maintenance Cost/Mile: Fuel Cost/Mile: Total Cost/Mile:
Propane
$0.06
$0.18
$0.24
Diesel
$0.24
$0.28
$0.53

Frequently Asked Questions

How does a propane vehicle work?

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).

How much do you save when converting your vehicle to 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.

Click here to see cost savings.

Is propane a clean alternative fuel?

Yes, the EPA considers propane as a clean alternative fuel under the Energy Policy Act of 1992.

How is propane cleaner than other vehicles?

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.

Is a propane engine viable?

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.

How safe is propane autogas?

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. 

Can a propane vehicle run on gasoline too?

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.

What are the miles per gallon of propane compared to gasoline and diesel?

1 gallon of propane is equivalent to  0.67 gasoline gallon equivalent.

1 gallon of propane is equivalent to 0.59 diesel gallon equivalent.

Why aren’t there more propane powered vehicles on the road?

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.

What funding is available to help me get my vehicle/fleet converted to propane?

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
Idle: 680 | Max: 4,050
350 HP
468 ft-lbs @ 3,900 RPM

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
401 HP @ 5200 RPM
464 ft-lbs @ 4000 RPM

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

How does a propane vehicle work?

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).

What is a dedicated propane engine?

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.

Where can I go to order a dedicated propane vehicle?
Your local dealership can help you and/or order a dedicated propane vehicle for your fleet.
What is a bi-fuel propane engine?

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.

What types of autogas systems are used in vehicles?

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.

What is the torque comparable to gasoline?

Vehicles equipped with ROUSH CleanTech’s propane autogas fuel systems retain equivalent horsepower, torque, towing capacity and warranty coverage as gas and diesel counterparts.

Will I get the same response when I step on the gas pedal?

A propane vehicle’s power, acceleration, and cruising speed are similar to those of conventionally fueled vehicles.

How often do you have to change oil or spark plugs?

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.

Will a propane conversion hurt my engine?

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.

What effect does propane have on the vehicle’s carburetor?

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. 

What effect on does propane have on the fuel injectors of a vehicle?

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.

Where does the propane tank go?

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.

What happens when I run out of propane and it switches back to gasoline while I am driving with a bi-fuel system installed?

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.

Does getting my new vehicle converted to propane affect the manufacturer's’ warranty?

No, the manufacturer’s’ warranty is not affected when you get your vehicle converted to propane.

Are there any manufacturer warranties on systems?

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.

How readily available are parts for propane vehicles?

Propane parts are available from original equipment manufacturers (OEM’S) or contact your local propane conversion company.

Is the conversion reversible? How much modification is done? Will my check engine light come on?

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.

How much does it cost to get my vehicle converted to propane?

On average, a propane vehicle conversion can cost anywhere from $6,000 to $9,000 depending on the vehicle and kit installed.

Where can I go to get my vehicle converted to propane?

Michigan has 6 Propane Autogas conversion locations.

 

 Click here to view map.

Who should I reach out to once I have chosen to convert my fleet to propane?
Once you have decided to make the switch to propane, reach out to your local propane marketer or conversion company and they will get you started on converting your fleet to propane. 
 

 Click here to view map.

STEP 3: Fueling & Infrastructure

Private (fleet owned or propane supplier owned) and Public Options Available

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

Frequently Asked Questions

Where can I fill up my propane vehicle?

Michigan has over 60 public fueling stations and 3 private/keycard locations to fill up your propane autogas vehicle.

 Click here to view map.

Where can I go to get my propane vehicle repaired?

Michigan has 25 repair propane autogas service centers. Conversion centers also repair their own systems that they install. 

Click here to view map.

How do I start my own private fueling station?

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.

What is the storage life of propane?

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.

How long does it take to fill the propane tank?

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.

How do I start my own private fueling station?
Contact your local propane marketer and they can get you started on your propane infrastructure. 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 manufacturer to help you purchase fueling equipment from the manufacturer.

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

What funding is available to help me get my vehicle/fleet converted to propane?

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

What do I need to get a $4,000 MPGA Autogas rebate (up to $16,000)?
  • 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.

Where can I go to get my vehicle(s) converted to propane?

Michigan has 6 Propane Autogas conversion locations. Click here to view map.

Where can I go to purchase a propane vehicle?

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.

I already have a propane fleet, but would like to expand my fleet, do I qualify for the rebate?
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.

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 2

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

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

Diesel Emissions Reduction Act (DERA) Grant

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

Alternative Fuel Tax Credit: Save $0.37 Per Gallon!

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.

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.

Alternative Fuel Tax Exemption

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.