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ALTERNATIVE FUEL VEHICLES

(The letter below was written to all school, city, county, and state officials by State Representatives Jim Keffer, Warren Chisum, and Rick Hardcastle.)

July 14, 2008

Dear State and Local Leaders:

Escalating gasoline and diesel prices are threatening our national economy and draining our personal budgets. We are frustrated with the inaction of Washington to address this serious issue, and have urged Congress to take swift actions that will increase American energy exploration, boost conservation efforts, and curb oil speculation. Until that happens, we here in Texas must look for local solutions that will provide relief.

One idea we want to share with you regards the potential cost savings of replacing retired fleet vehicles, such as school buses or garbage trucks, with new ones that are fueled by propane or natural gas. It may also prove cost-effective to convert existing fleet vehicles to these alternatives.

Propane and natural gas are both less expensive than diesel or gasoline. They have the added advantage of reducing harmful emissions, and there are several incentive programs that create additional financial benefits. One such benefit is a 50-cent-per-gallon federal rebate on propane or natural gas that runs through September 30, 2009, and could be extended. Your entity may also be eligible to receive a grant through the Texas Commission on Environmental Quality [www.tceq.state.tx.us], the Texas Railroad Commission [www.propane.tx.gov], or the Texas General Land Office [www.glo.state.tx.us/altfuels], to help cover some of the costs of replacing diesel vehicles with propane or natural gas-fueled vehicles.

We commend Texas Railroad Commission Chairman Michael Williams and Texas Land Commissioner Jerry Patterson for their ongoing efforts to highlight these alternative fuel sources, and encourage you to explore these options as a way to save taxpayers money. Texas working together can deliver results.

Sincerely,

Jim Keffer, Chair
Ways and Means Committee

Warren Chisum, Chair
Appropriations Committee

Rick Hardcastle, Chair
Energy Resources Committee

TML member cities may use the material herein for any purpose.
No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the
Texas Municipal League.

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