Williamson County expands propane-powered fleet

"We chose them because they were vehicles up for replacement anyway," said Katherine Woerner, Cedar Park's director of community affairs. "Six were brand-new vehicles that were bought with the propane equipment already installed. Four were vehicles we already had that we put retrofitted equipment on."

Since November 2011, the county has opened a network of fueling stations to support its propane vehicles. The stations addressed concerns that the vehicles that run solely on propane—the county has eight vehicles so far—would have trouble finding a place to refuel. Construction on Cedar Park's fueling station was completed at the end of January. Other stations are located in Georgetown, Florence, Round Rock, Taylor and Granger.

Although the savings the county is experiencing right now is a small part of the overall $126.88 million general fund budget, commissioners had to cut $2.6 million from the proposed budget to reach that mark in 2011, and Commissioner Ron Morrison said any savings is beneficial to the county.

"There's an old saying, 'You watch nickels and dimes, and dollars take care of themselves,'" he said. "We have to watch every penny, because the tax base has been pretty much flat the last three or four years or so."

Other benefits that made exploring propane attractive were its impact on the environment and reducing dependence on gasoline and foreign oil, Morrison said. Woerner said the City of Cedar Park began integrating propane for similar reasons and plans to evaluate cost savings over time.

"I would say it's too early to really tell a lot of significant savings, but we do monitor the usage, and we are tracking that data," she said. "We're hoping that in a year or so, we will have more information on any savings."

A Texas fuel

Propane, or liquefied petroleum gas, is a by-product of natural gas processing and crude oil refining. According to the U.S. Department of Energy, it is the world's third most common engine fuel—trailing gasoline and diesel—and has been used to power vehicles in the United States since the 1920s.

Almost 97 percent of propane consumed in the United States is produced in North America, according to the Propane Education and Resource Council, and all propane used by Williamson County for its vehicles comes from Texas, said former Fleet Manager Michael Fox, who retired in January.

Propane's availability in the Central Texas region makes it a popular choice for municipalities, school districts and universities seeking an alternative fuel for their fleets, said Stacy Neef, program manager of Clean Cities Central Texas coalition. Sponsored by the DOE, Clean Cities promotes the use of alternative fuels and vehicles.

Williamson County received two grants—one from the DOE for $611,600 and one from the Railroad Commission of Texas for $208,420—that paid for converting vehicles to run on propane and for the fueling stations, which cost about $60,000 each. A Railroad Commission of Texas grant reimbursed Cedar Park $169,000 of its total $375,500 spent on the propane transition.

Additional funding

Now that the county has the propane stations, it is eligible to receive the Alternative Fuel Excise Tax Credit, a 50 cent per gallon tax credit for alternative fuels, including propane. Although the credit expired Dec. 31, the Propane Green Autogas Solutions (GAS) Act of 2011 is a bill that proposes to extend the 50 cent credit for five years.

Nine departments in Williamson County requested to use propane vehicles. Most are bi-fuel, or can run on either propane or gasoline, but are set to run on propane.

Propane analysis

During one 12-month period, the county paid on average $1.82 per gallon for propane, compared with an average of $3.15 per gallon for gasoline.

Both the city and county expect to save money on oil changes and possibly on engine maintenance costs, too.

"According to the people we've talked to, the engines have a longer life on propane," Fox said.

Because the county received grants to kick off its propane vehicle program, the savings are immediate. Without the grant money, the county would have spent, on average, $8,250 more on each vehicle than on purchasing a regular gasoline-powered automobile.

Clean air

Propane vehicles help municipal entities meet the Environmental Protection Agency's Clean Air Act standards, Morrison said.

"One of the major side benefits is [we are] making a small contribution to cleaner air," he said.

Propane is one of the cleanest-burning fossil fuels, emitting less carbon dioxide and harmful emissions than gasoline or diesel, according to the DOE.