Fuel Oil News

Fuel Oil News - January 2017

The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding

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18 JANUARY 2017 | FUEL OIL NEWS | www.fueloilnews.com commuter bus fleets and, potentially, city police departments, as well as others con- verting to propane. "In most cases we can establish the fueling station on the customer premises, allowing for better controls and less time required to travel to an offsite fueling sta- tion," Tetreault says. Kevin Froman, chief operating officer at Froman Propane Co. in Claremore, Okla., and current president of the Oklahoma Propane Gas Association in Oklahoma City, says many fleets are see- ing the advantage of propane over CNG as an alternative fuel: a vehicle fueled by propane will go about three times farther than the same vehicle fueled by CNG, and refill times are about the same as gasoline, Froman says. Those benefits reduce labor costs, he says. Froman Propane has been a part of Alliance AutoGas for about three years. "The Alliance allows dealers to network across the nation to assure the customer has a stable, affordable supply," Froman says. "The Alliance has done a tremendous amount in the development of equipment for the industry and should be applauded for their efforts." In Oklahoma, incentives to convert vehicles to autogas include: a $50 flat-fee permit that exempts the operator from state road tax for annual driving a 45% state tax credit on conversion a 75 % state tax credit on new refuel- ing infrastructure a 30% federal tax credit on new refu- eling infrastructure a 50-cent per gallon federal tax credit on autogas used annually. "Once a company puts one [autogas vehicle on the road] and sees the benefits, they always add others," Froman says. "But the upfront cost for something they are not real knowledgeable about is a chal- lenge. However, with the alternative fuel tax credits it's an obvious move for any fleet or industrial application." Another benefit is the reduced envi- ronmental impact of gasoline or diesel should there be a spill. With propane being a liquid that turns to vapor, there is little impact to the ground environment, Froman says. Alternative fuels appeal more to vehicle fleet managers and consumers as gasoline or die- sel prices increase, says the U.S. Department of Energy. THE CASE FOR AUTOGAS

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