PROPANE POWERED ALTERNATIVE FUEL SCHOOL BUSES. PALMETTO BUS SALES

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1 PROPANE POWERED ALTERNATIVE FUEL SCHOOL BUSES

2 Clean. Domestic. Safe. Abundant.

3 Discovered in 1910 Dr. Walter O. Snelling First used as an engine fuel in 1913 Composition Propane = C 3 H 8 Gasoline = C 8 H 18 Sources 60% from natural gas refining 40% from petroleum refining 97% from North American sources

4 24% reduction in Greenhouse Gas (GHG) emissions GHG contributes to global warming 20% reduction in Nitrogen Oxide (NOx) emissions NOx and volatile organic compounds (VOCs) combine in the presence of sunlight to form smog. Children, people with lung diseases such as asthma, and people who work outside are susceptible to smog and possible lung tissue damage, a reduction in lung function or worse. 60% reduction in Carbon Monoxide (CO) emissions CO contributes to the formation of smog ground-level ozone where air pollution becomes trapped near the ground beneath a layer of warm air. CO combines with the blood, and prevents it from absorbing oxygen. It poisons your red blood cells, and prevents them from carrying oxygen.

5 90% of propane used in U.S. comes from U.S. 7% of propane used in U.S. comes from Canada Most refueling infrastructure of any alternative fuel Major natural gas shale found in northeast U.S. Powers over 15 million vehicles worldwide Low pressure (~ 200 psig) Narrow flammability range Fuel tanks are 20 times more puncture resistant than gasoline

6 Approximately 4 million vehicles in operation nationwide Narrow range of ignition 2.2 to 9.6% fuel to air 940 degree ignition temperature Gasoline 430 to 500 Low pressure psi vs. 2,500 3,000 psi Not harmful to soil or water Non-toxic / Non-poisonous Dissipates into the atmosphere, will not puddle or pond Fuel is very portable Economic fueling infrastructure unlike expensive and high maintenance CNG

7 Most widely used alternative fuel in the world today Over 17 million vehicles powered by propane autogas Consumption is up 60% since 2000 High concentration in certain countries Korea, Russia, Turkey, Poland, and Italy account for 53% of global consumption Share of autogas in total fuel consumption, by country: Turkey = 18% US = 0.1%

8 Number of vehicles on the road (autogas) Turkey = 2.4 million vehicles Poland = 2.3 million vehicles Korea = 2.3 million vehicles Italy = 1.7 million vehicles Russia = 1.3 million vehicles Australia Every third vehicle off Ford s assembly line is propane autogas powered Turkey More propane autogas sold last year than gasoline + diesel combined Source: World LP Gas Association

9 Ford Michigan Assembly Plant (MI) Positive Connections (MN) Shell (AZ) Portland Schools(OR) ROUSH CleanTech (MI) Prosper Schools (TX)

10

11 o Improved horsepower and torque o Service & Maintenance Support o Dual fuel pumps For increased engine output o OEM-like Integration o o o Faster Fill Times New system = mechanical Old system = electronic Auto Start One-Touch System Air brakes

12 Fill valve Return valve Supply valve Fuel level sender Pressure relief valve Mechanical, not electronic Separate, unique supply & return valves for high flow rates Two fuel pumps running at variable speeds Improved start times, improved pump / system life No multi-valve Easier to maintain

13 A Positive Return, Even Without Government Incentives

14 )

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17 F-150, F-250, F-350 w/ in-bed extended rage tank 350 miles E-150, E-250, E350 w/under bed tank 300 miles Blue Bird Vison, Type C school Bus 300 miles MicroBird & Collins, Type A school bus 300 miles

18 Propane vehicles are fueled much the same as gasoline or diesel vehicles. Dispensers can be tied into existing fuel management programs Dispensers accept fleet fuel cards Fueling systems may be purchased or leased Dispenser nozzle equipped with automatic shut off

19

20 The South Carolina Department Of Education uses approximately 12 million gallons of diesel fuel each year to operate it s school buses. Propane costs about ½ as much as the cost of diesel fuel. Maintenance is much less on propane vehicles versus diesel vehicles. ROUSH CleanTech Engines are warranted through local Ford dealers.

21 Q: Where do I get my propane fuel? Do we have to install new fueling stations and if so as what cost? A: Propane fuel is readily available There are approximately 70,000 miles of interstate pipelines and more than 2,500 public and 10,000 private refueling stations throughout the United States. In many circumstances propane gas suppliers will install fueling stations at NO COST to you. In addition to stationary fueling stations most propane fuel suppliers have mobile propane fuel trucks that can come to your location to fuel buses on your lot. Q: Is refueling difficult with propane? A: No. Refueling is simple and quick. Propane s fueling rate, gallons per minute is comparable to that of gasoline or diesel. Propane is delivered through a sealed system which protects the environment, a simple threaded connection is used. Q: What type of tax credits are available? A: In the United States, customers are eligible for a $ 0.50 tax credit (or rebate for non-taxable entities, if they dispense their own fuel) on every gallon of propane fuel purchased. Additional state & federal funding may also be available. Q: What are some of the benefits of using propane powered school buses? A: Benefits include reduced fuel costs, tax credits, lower emission levels, fewer oil changes and no loss of vehicle performance.

22 Q: How long does it take to fuel a propane vehicle? A: About the same as traditional fuels but much less than CNG. Q: Do autogas powered vehicles require a certain type of propane? A: No, autogas vehicles use the same propane that is used for home heating, forklifts and your outdoor gas grille. Q: What is the price of a propane powered school bus versus a diesel powered bus? A: Propane powered school buses cost approximately $12,000 more than a similarly equipped diesel bus. While the up front cost is more, when you factor in the federal grants available to purchase propane buses, the propane fuel tax credits you may be able to receive and the maintenance savings, the up front cost may be negligible. This does not even take into consideration the fact that propane school buses are some of the most environmentally friendly vehicles on the road today. Q: Can I keep a propane vehicle in the garage? A: Yes, the National Fire Protection Association (NFPA) Code 58 establishes the rules for this and provided they are properly converted, there are no concerns.

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