Today’s Funding and Incentives for Propane Vehicles

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ROUSH CleanTech’s low-emission propane autogas vehicles are prime for state and federal funding programs. There are a variety of funding opportunities and partners available today to assist with a propane fleet.

Our propane engines are 90% cleaner than current federal emissions standard, making them eligible for many funding opportunities. Using the Ford 7.3L V8 engine, our propane fuel system is certified to the ultra-low nitrogen oxide levels of 0.02 g/bhp-hr. Our vehicles achieve 2027 proposed standards on nitrogen oxide. The Environmental Protection Agency and the California Air Resources Board have certified ROUSH CleanTech’s propane fuel systems.

Clean School Bus Program

For: propane school buses

The Environmental Protection Agency introduced the Clean School Bus Program in 2022 through the Infrastructure Investment and Jobs Act. The federal program provides $5 billion over the next five years to replace existing school buses with low- and zero-emission school buses. There is a total of $500 million each year over the next five years for low-emission buses like propane.

Blue Bird propane school buses equipped with ultra-low nitrogen oxide engines provide multiple advantages for school districts and school bus contractors seeking funding from the Clean School Bus Program. Any school district that meets the program requirements can apply for funding; priority will be placed on high-need districtstribal schoolsandrural and low-income areas.

The first round of funding is distributed through EPA’s Clean School Bus Rebates program, which is open for applications. Between $15,000 and $30,000 is available for propane school buses, depending on vehicle class and the intended school bus customer. The selection process takes place in September and awards will be notified October 2022. The EPA provides guidance on eligibility, bus replacement, cost share, selection process and a prioritized applicant list. For more information and to apply, visit EPA’s Clean School Bus Program Funding.

For more information, visit EPA’s Clean School Bus Program Funding.

Volkswagen Settlement Funding

For: School buses, transit vehicles

In 2016, Volkswagen was found guilty of violating the Clean Air Act and agreed to spend up to $14.7 billion to settle allegations of cheating emissions. Settlement funds support national- and state-level projects that reduce nitrogen oxide emissions. Part of the settlement, called the Environmental Mitigation Trust, designates $2.9 billion to fund environmental mitigation projects that reduce emissions of nitrogen oxides, like propane vehicles. Funds are allocated through designated state beneficiaries.

To find your state beneficiary and apply for funding, visit the National Association of Clean Air Agency website.

Federal and State Funding

For: School buses, transit vehicles, commercial trucks

Propane is classified as an alternative fuel by the Department of Energy. There are a number of state and federal incentive programs to encourage adoption, such asgrants, alternative fuel excise tax credits and the Diesel Emissions Reduction Act (DERA) Program. Learn more from the Department of Energy’s Alternative Fuels Data Center at


For: School buses, transit vehicles, commercial trucks

There are many incentives and support from state propane associations, propane providers and wholesale suppliers. For example, the Missouri Propane Education & Research Council has pledged $1 million to help school districts transition from diesel to propane buses. The program offers rebates of $2,000 per propane bus, up to 10 per district, at the time of delivery. The Propane Education & Research Council’s funding center has additional resources.

Low emission vehicles fueled by propane autogas are a readily available, sustainable transportation solution that provide a smart return on investment. Find out more about propane here.