New Study Demonstrates Significant Economic, Energy Security Benefits of Propane Autogas Tax Incentives

The Propane Green Autogas Solutions Act (“Propane GAS Act”) of 2011 offers significant economic growth, environmental and energy security benefits to the American economy, according to a study released today by the National Propane Gas Association.

The study projects that the Propane Gas Act’s impact on jobs and the economy will be significant. The growth in propane vehicle sales and use created by the tax credits will generate an increase in economic activity that peaks at between $4 billion and $5.7 billion per year in 2016. That translates to between 30,000 and 42,000 new jobs created by 2016.

Economic Impacts of the Propane Green Autogas Solutions Act of 2011 was performed by ICF International using standard economic models and market data from propane autogas fuel providers, vehicle manufacturers and fleet consumers. The study illustrates how propane used as a transportation fuel, known as ‘autogas’, can be a cost effective alternative to gasoline and diesel that can help address our nation’s environmental and energy security policy goals.

NPGA President and CEO Richard Roldan noted, “H.R. 2014 and S. 1120 would extend for five years federal alternative fuel tax credits for propane used as a motor fuel, propane autogas vehicles and propane autogas refueling equipment. The Propane GAS Act offers certainty to the marketplace to further solidify propane autogas as a competitive alternative transportation fuel.”

“We must break our dependence on foreign sources of energy, and enacting the Propane GAS Act will help us achieve this goal,” noted Carl Hughes, NPGA’s Board Chairman. “Propane autogas is clean, widely available, affordable, and domestically produced. It’s a practical choice for consumers today and an important tool for policymakers as our nation searches for options to improve our energy security.”

“Autogas vehicle market incentives are good fiscal policy. The Propane GAS Act provides incentives to make the switch to an American-made alternative fuel and with clear policy benefits,” concluded NPGA’s Roldan. “Propane autogas vehicles and infrastructure are available right now and public and private fleets are seeing significant long-term cost savings. While no single alternative fuel can completely displace conventional fuels in the short term, propane autogas provides our country with significant benefits and can have an immediate impact. ICF International’s thorough analysis of the Propane GAS Act bears these facts out.” Visit to download the Economic Impacts of the Propane Green Autogas Solutions Act of 2011, Executive Summary and read the full report.



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