Blue Bird Hopes to Re-Ignite Industry Interest in Propane

Michael Levin-Epstein | Contributing Editor

FORT VALLEY, Ga. — Blue Bird Corp. plans to bring its 72-passenger, propane-fueled school bus to market this fall, marking the first time in four years that a major manufacturer has introduced this alternative-fueled vehicle in the United States.
The key issue: Is there a market?

With rising fuel prices, Blue Bird vice president Jay McDuffie is bullish on propane.
“We see this as another viable alternative for our customers,” he said. In addition, he noted that propane-fueled bus is an attractive cost-savings option for contractors and schools districts facing stricter and more expensive emissions requirements. To meet 2007 emission standards, buyers may pay up to $5,000 more for new diesel school-bus engines, he added.

But propane isn’t a front burner issue yet, most experts say.

“It’s not a fuel that has a huge following,” said Robin Leeds of the National School Transportation Association. When the propane bus was first discussed several years ago she says there were some safety issues, such as the fear school bus propane fuel tanks may explode. That has so far not been the case, and propane proponents insist those concerns have been met by rigorous safety requirements. FMVSS 301 governs school bus fuel system integrity, and propane vehicle tanks are constructed from carbon steel in compliance with a code developed by the American Society of Mechanical Engineers.

Then how widespread is interest in propane buses? Texas is out front promoting propane use, said McDuffie, but other states, including Oklahoma, Louisiana, New York and Washington state also are in the mix. As the leading state in the production, storage and use of propane, experts say it’s not surprising Texas heads the propane parade.

In April, Texas Railroad Commissioner Michael Williams joined Blue Bird representatives, school officials and clean air advocates in Dallas to announce the availability of the propane-powered, full-size buses. In addition, Blue Bird will be consulting with the Dallas County Schools, which operates about 500 propane buses.

Pascual Gonzalez, communications director for the Northside Independent School District in San Antonio, reported the district — the fifth largest in Texas — had built up a huge propane fleet over two decades in large measure to address environmental concerns. However, four years ago it became impossible to obtain replacement propane buses.

“We wrote everybody in the federal government that we could think of to put pressure on the bus manufacturers and urged vendors to reconsider their decision. But we had to go back to diesel,” he explained.

As a result, Gonzalez said the district is experiencing higher fuel and maintenance costs. Northside ISD fleet manager Randy Zanatta said the district began buying diesel buses again during the 2003-2004 school year when the propane option was no longer available. Currently, 55 percent of the 600-bus fleet is dedicated to run on propane or biodiesel fuel.

The conversion to propane results in a 3 to 4 percent loss of fuel economy and horsepower, but costs only 60 percent of diesel or gasoline, Zanatta said. Conversion costs also could be a factor in a decision to turn to propane.

“With the advent of new technologies, conversion systems became more complicated and expensive, lengthening the timeframe to recoup costs before savings could be realized,” said Zanatta.

However, it could no longer be a concern. Zanatta said there may have been some uneasiness felt by parents when the propane program first began, but the Railroad Commission now requires numerous redundant safety systems, along with annual inspections. The “flash window,” or point at which propane will ignite, is about the same as diesel, and the construction standards for propane tanks are incredibly high. In one bus impact accident, the propane tank on the bus absorbed the main impact and suffered only scratches on its paint, he said.

Finally, as far as Texas is concerned, the Alternative Fuels Division of the Railroad Commission (the state’s primary energy agency) worked with the bus manufacturer, the Propane Education and Research Council (PERC) and Clean Fuels USA of Georgetown, Texas, to secure $895,000 in funding to develop and certify the low-emissions vehicles. There are clear-cut environmental benefits to propane, asserted Stephe Ybora of the Clean Vehicle Education Foundation, noting recent reports regarding alleged respiratory problems caused by diesel emissions.

The Propane Education and Research Council (PERC) contributed $860,000 to help Blue Bird with the propane project, said Brian Feehan, the council’s managing director of engine fuel programs. “It’s a new product in a market where one is needed,” he added. In addition to the fuel savings, purchasers also stand to gain from federal tax incentives.

The bottom line on propane buses, said Feehan: “There’s clearly environmental and economic value for both school districts and Blue Bird.”

Source: School Transportation News, July 2006. All rights reserved.