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other related applications. Passing of H.R. 6089, the En-
ergy Choice Act, in the House, and the introduction of
companion legislation in the Senate on energy choice
would help to protect consumers’ access to propane
and other conventionally fueled appliances, including
gas stoves, furnaces, and water heaters.
Appropriations
Propane is a clean and abundant domestic
fuel used in many applications to help the U.S. ensure
reliable and affordable energy and significantly reduces
greenhouse gases and other harmful emissions from From Left: A wood-paneled library at Lincoln's Cottage.;
NPGA State Assoc. Relations Sr. Manager, Eric Sears and
transportation, home heating, power generation, and APGA VP Daniel Brown outside Lincoln's Cottage.
other sectors of the economy. Since 2019, NPGA has
successfully secured access to over $20 million in De- choose a cleaner and more economical alternative to
partment of Energy (DOE) research and development traditional gasoline and diesel, which reduces harmful
funding for using propane and dimethyl ether (DME) in emissions and lessens U.S. dependence on foreign oil.
vehicles, propane-powered combined heat and power A long-term extension would provide signif-
(CHP) systems, and renewable propane. Building upon icant certainty to customers – both the public and
these successes, NPGA is seeking a request in 2025. An private sector – considering buying alternative fuel ve-
investment in new and improved propane technologies hicles. Additional extensions should be considered until
can help the nation address many of the challenges EVs in the medium- and heavy-duty market address
presented by providing abundant and affordable fuel existing performance issues and become affordable
and emission reduction efforts across many sectors of for all consumers and businesses. Extending these tax
the U.S. economy. As a clean and abundant domestic credits would be great news for the environment, the
fuel source, investment in propane technologies plays economy, and consumers.
a vital role in an all-of-the-above approach to energy National Defense Reauthorization Act (NDAA)
security and emissions reductions.
The NDAA authorizes appropriations for the
Alternative Fuel Tax Credits DOD, the Department of Energy’s nuclear weapons
Propane is the world’s third most prevalent programs, and other defense-related activities. Con-
motor fuel after gasoline and diesel. Nearly 200,000 gress has continued to pass the NDAA with bipartisan
vehicles in the United States currently run on propane. support every year for the past 62 years. This year, we
Favorable tax provisions that encourage consumers to urged Congressional representatives to support the use
adopt alternative fuels such as propane aid in the con- of propane-powered generators at DOD facilities and to
tinued investment in these clean vehicles. The Alterna- facilitate the increase in the number of propane-pow-
tive Fuel Tax Credit, which provides a 37 cent per gallon ered vehicles at domestic DOD sites.
credit on the sale of propane when used in motor Domestic military installations are often ex-
vehicles (including forklifts), is set to expire on Decem- pansive in remote areas and must be able to adapt to
ber 31, 2024. A long-term extension of alternative fuel evolving missions, challenges, and threats. In addition,
tax credits is essential to the growth of propane as an critical infrastructure requires redundant power gener-
alternative fuel. ation to maintain operational viability and increase ca-
Alternative fuel tax credits have incentivized pabilities. Investing in mobile generation and microgrids
alternative fuel use, increased consumers’ buying reduces electricity transmission and distribution (T&D)
power, and created a clean, domestic, and economical and can increase resilience by providing partial or total
alternative to gasoline and diesel. Public and private ve- independence from the electrical grid. Unlike diesel or
hicles that run on propane are gaining increased market gasoline, propane is non-toxic, highly transportable,
acceptance, particularly with fleet businesses and local and insusceptible to degradation, making propane an
governments. These credits provide the opportunity to ideal fuel for power generation in all environments.
14 Alabama Propane Gas Association | July / August 2024