Introduce, Expand Propane Fleet, Facilities with FTA Grant and MPGA Propane Vehicle Rebate

FTA Grants

Low or No Emission (Low-No) Program: Approximately $1.1 billion for the purchase or lease of zero- and low-emission transit buses, along with supporting facilities. 
Buses and Bus Facilities Competitive Program: Approximately $398 million to support the purchase, rehabilitation, or lease of buses and related equipment, as well as the construction, rehabilitation, or leasing of bus-related facilities. transit.dot.gov+1govinfo.gov+1

Propane Powered Buses Qualify for FTA Grants and Offers Greatest ROI

FTA Low-No Program: Propane-fueled transit buses qualify as low-emission under EPA standards (EPA).

Michigan’s rural and small transit agencies use propane due to its ease of adoption and use, near-immediate emission reduction, and significant savings that efficiently meet budget demands.

FTA Buses and Bus Facilities Program: Propane-powered buses, refueling infrastructure, and related maintenance upgrades are eligible. Funds cover bus purchases, replacements, rehabilitation, and facilities.

Propane is a suitable choice for achieving emission goals and modernizing transit fleets. It offers transportation entities near-immediate operational cost savings, along with ease of permitting, infrastructure installation, maintenance, and use.

Who’s Eligible to Apply for FTA Grants

Public Transit Agencies:

Local or regional transit authorities operating bus services, serving urban, suburban, and rural areas.

State and Local Government Entities:

Departments of Transportation (DOTs), Municipalities, County Transit Planning or Operations.

Federally Recognized Native American Tribes

View FTA Grants:

https://www.transit.dot.gov/regulations/federal-register-documents/2025-08571?utm_source=chatgpt.com

https://www.transit.dot.gov/notices-funding/fy-2025-notice-funding-opportunity-low-or-no-emission-grant-program-and-grants?utm_source=chatgpt.com

Direct Questions to: Kirsten Wiard-Bauer of the FTA Office of Program Management

New to Propane? The MPGA has a Rebate for That

Due in 2025, While Funds Last

Municipalities purchasing a propane vehicle (New or New Conversion) are eligible for MPGA’s Propane Vehicle Rebate – up to $16,000.

Consider stacking your rebate with an FTA grant to maximize your savings.

Learn more at: MiAutogas.com

Fuel Type	Light Duty	School Buses	Paratransit	Single Unit Short-Haul Truck	Single Unit Long-Haul Truck
Propane	$60,000	$140,000	$48,000	$104,000	$89,000
Electric	$93,000	$410,000	$93,000	$250,000	$185,000
Diesel	$63,000	$138,000	$53,000	$90,000	$75,000
Gasoline	$52,000	N/A	$42,000	$90,000	$75,000

	Propane	Gasoline	Diesel	Electric
Chemical Structure	C3H8 (majority) and C4H10 (minority)	C4 to C12 and Ethanol ≤ to 10%	C8 to C25	N/A
Fuel Material (feedstocks)	Fats and oils from sources such as soybeans, waste cooking oil, animal fats, and rapeseed	Crude Oil	Crude Oil	Natural gas, coal, nuclear, wind, hydro, solar, and small percentages of geothermal and biomass
Gasoline or Diesel Gallon Equivalent (GGE or DGE)	1 gal = 0.74 GGE 1 gal = 0.66 DGE	1 gal = 1.00 GGE 1 gal = 0.88 DGE	1 gal = 1.12 GGE 1 gal = 1.00 DGE	1 kWh = 0.030 GGE 1 kWh = 0.027 DGE
Energy Comparison (GGE = Gasoline Gallon Equivalent)	gallon of propane has 73% of the energy in 1 GGE due to the lower energy density of propane.	1 gallon of gasoline has 97%–100% of the energy in 1 GGE. Standard fuel is 90% gasoline, 10% ethanol.	1 gallon of diesel has 113% of the energy in 1 GGE due to the higher energy density of diesel fuel.	A typical battery that is the same size as a gallon of gas (0.134 ft3), when used for transportation, can store 15.3% of the energy in 1 GGE. [6][7]
Energy Content (lower heating value)	84,250 Btu/gal (c)	112,114– 116,090 Btu/gal (c)	128,488 Btu/gal (c)	3,414 Btu/kWh
Energy Content (higher heating value)	91,420 Btu/gal (c)	120,388– 124,340 Btu/gal (c)	138,490 Btu/gal (c)	3,414 Btu/kWh
Physical State	Pressurized liquid (heavier than air as a gas)	Liquid	Liquid	Electricity
Cetane Number	N/A	N/A	40–55 (d)	N/A
Pump Octane Number	105 (g)	84–93 (f)	N/A	N/A
Flash Point	-100° to -150°F (j)	45°F (j)	165°F (j)	N/A
Autoignition Temperature	850° to 950°F (j)	495°F (j)	~600°F (j)	N/A
Maintenance Issues			Lubricity is improved over that of conventional low sulfur diesel fuel. For more maintenance information see, the Biodiesel Handling and Use Guidelines—Fifth Edition. (d)
Energy Security Impacts	Approximately half of U.S. LPG is derived from oil, but no oil is imported specifically for LPG production.	Manufactured using oil. Transportation accounts for approximately 30% of total U.S. energy needs and 70% of petroleum consumption. (l)	Manufactured using oil. Transportation accounts for approximately 30% of total U.S. energy needs and 70% of petroleum consumption. (l)	Electricity is produced domestically from a wide range of sources, including through coal-fired power plants and renewable sources, making it a versatile fuel.

Fuel Type	School Buses
Propane	$108,000
Electric	$300,000
Diesel	$100,000
Diesel HEV	$160,000
CNG	$130,000
Gasoline

Chassis	7.3L Version	GVWR	0.05 NOx
E-350	Premium	10,050	N/A
E-350	Economy	10,050	N/A
Economy	E-450	14,000	N/A
Premium	E-450	14,200	Yes
E-450	Premium	14,500	Yes

Introduce, Expand Propane Fleet, Facilities with FTA Grant and MPGA Propane Vehicle Rebate

FTA Grants

Propane Powered Buses Qualify for FTA Grants and Offers Greatest ROI

Who’s Eligible to Apply for FTA Grants

View FTA Grants:

New to Propane? The MPGA has a Rebate for That

School buses

School Buses

EPA Certified Engines

Average Purchase Price

Average Maintenance Cost

Average ROI Time

Annual GHG Emissions

Fleet usage of propane in sectors optimal for propane Fuel (Autogas) include:

Food/bev Vehicles

Food/Beverage Vehicles

Average Cost Per Mile

Average Purchase Price

Average ROI Time

Annual GHG Emissions

Ave. Vehicle Life Span and Ave. Propane Fuel Use

EPA Certified Engines

Class 1 Vehicles

Class 2 Vehicles

Class 2 Light-Duty Trucks:

Class 2B Heavy-Duty Trucks:

Class 3 Vehicles

Class 4 Vehicles

Class 5 Vehicles

Class 6 Vehicles

Class 7 Vehicles

Service/Utility

Service/Utility Vehicles

Average Cost Per Mile

Average Purchase Price

Average ROI Time

Annual GHG Emissions

Ave. Vehicle Life Span and Ave. Propane Fuel Use

EPA Certified Engines

Class 1 Vehicles

Class 2 Vehicles

Class 2 Light-Duty Trucks:

Class 2B Heavy-Duty Trucks:

Class 3 Vehicles

Class 4 Vehicles

Class 5 Vehicles

Class 6 Vehicles

Class 7 Vehicles

Police/EMT Vehicles

Police/EMT Vehicles

Average Cost Per Mile

Average Purchase Price

Average ROI Time

Annual GHG Emissions

Ave. Vehicle Life Span and Ave. Propane Fuel Use

EPA Certified Engines

Class 1 Vehicles

Class 2 Vehicles

Class 2 Light-Duty Trucks:

Class 2B Heavy-Duty Trucks:

Class 3 Vehicles

Class 4 Vehicles

Class 5 Vehicles

Class 6 Vehicles

Paratransit

Paratransit Vehicles

Average Cost Per Mile

Annual GHG Emissions

Ave. Vehicle Life Span and Ave. Propane Fuel Use

EPA Certified Engines

Class 2 Vehicles

Class 5 Vehicles

Class 6 Vehicles

Class 7 Vehicles

Delivery Vehicles

Delivery Vehicles

Average Cost Per Mile

Annual GHG Emissions

Ave. Vehicle Life Span and Ave. Propane Fuel Use

EPA Certified Engines

Fleet usage of propane in sectors optimal for
propane Fuel (Autogas) include:

Average
ROI Time

Average
ROI Time

Average
ROI Time