Study Estimates Economic Impact of U.S. Autogas Legislation

By George Koloroutis, President, Ferrell North America, and Senior Vice President, Ferrellgas

Autogas legislation introduced in the United States earlier this year would generate an increase in economic activity of more than $5.5 billion a year and add more than 40,000 jobs in the United States by 2016, according to an independent study released last month by the National Propane Gas Association (NPGA).

The study, which was conducted by ICF International of Fairfax, Virginia, evaluated the potential economic benefits and costs of H.R. 2014/S. 1120 (the “Propane Green Autogas Solutions Act of 2011”).

Introduced in May 2011, the legislation would extend through 2016 existing tax credits for the purchase of propane Autogas and propane autogas-enabled vehicles, as well as the purchase and installation of propane Autogas refueling infrastructure.

A copy of the ICF International report can be found at

According to ICF International’s analysis, 84 percent of propane consumed in the U.S. is produced domestically. The gas originates predominately from U.S. natural gas plant production and refinery production from domestic oil. The analysis suggests the Propane Green Autogas Solutions Act of 2011 will reduce crude oil and petroleum product imports into the United States by as many as 117 million barrels by 2011.

This act recognizes what propane retailers around the world have known for many years: propane Autogas-powered vehicles burn cleaner and require less maintenance than conventionally fueled models. Passage of the bill would be a tremendous boost for what already is the fastest growing segment of the U.S. retail propane industry.

For more information, please contact Scott Brockelmeyer by email: