Ferrellgas Applauds Findings of Independent Propane Gas Act Report
OVERLAND PARK, Kan., Nov. 14, 2011 /PRNewswire/ -- Ferrellgas Partners, L.P. (NYSE: FGP), one of the nation's largest distributors of propane, applauded today the findings of ICF International's independent analysis of the Propane Green Autogas Solutions Act of 2011 (H.R.2014/S.1120). The ICF International report confirms that passage of the bill will reduce U.S. dependence on foreign oil, cut greenhouse gas emissions and create as many as 40,000 domestic jobs by 2016.
A copy of the report can be found at www.ferrellgas.com/icfi.
The Propane GAS Act renews current legislation that encourages investment in alternative fuel technologies through incentives which support the purchase of alternative fuels and construction of propane autogas refueling infrastructure. The Act also extends incentives supporting qualified autogas-enabled vehicles. Together, the bill's provisions help move capital toward propane autogas as a cleaner, domestically produced alternative to gasoline and diesel fuels.
"Today's report is further evidence that everyone wins with the passage of the Propane GAS Act; the bill will spark the economy and create good jobs while greening the auto industry," said George Koloroutis, president of Ferrell North America and senior vice president of Ferrellgas. "The Act also recognizes what we've known all along: propane autogas-powered vehicles burn cleaner and require less maintenance than conventionally-fueled models. Encouraging investment in this technology is a no-brainer."
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 GAS Act will reduce crude oil and petroleum product imports by as many as 117 million barrels by 2021.
"By supporting a fuel that we produce domestically, the Propane GAS Act will also improve the nation's energy security. Propane autogas is an American solution to an American issue," said Koloroutis.
After receiving approval as an alternative fuel under the 1990 Clean Air Act, propane autogas has become the most popular alternative fuel in the country, powering approximately 350,000 vehicles in the U.S.
Compared to gasoline, propane autogas exhaust contains 60 to 70 percent fewer smog-producing hydrocarbons and yields 12 percent less carbon dioxide and about 20 percent less nitrous oxide, both greenhouse gases. Passage of the Propane GAS Act would lead to an annual savings of 4.2 to 6 million tons of carbon dioxide, according to the ICF International report. Switching to propane autogas from gasoline will also cut emissions of toxins and carcinogens such as benzene and toluene by up to 96 percent.
The ICF International report also projects the Act will speed the transition toward propane as an alternative vehicle fuel, increasing autogas-powered car and truck sales to between 96,000 and 157,000 per year by 2016, compared to 17,000 to 34,000 per year without the credit. Economic activity related to the design and production of propane autogas vehicles and refueling stations is expected to create a total economic impact of up to $29 billion through 2021.
Ferrellgas Partners, L.P. is a Fortune 1000 company and, through its operating partnership, Ferrellgas, L.P., serves approximately 1 million customers in all 50 states, the District of Columbia, and Puerto Rico. Ferrellgas employees indirectly own more than 20 million common units of the partnership through an employee stock ownership plan. More information about the company can be found at www.ferrellgas.com and www.ferrellautogas.com.
Tom Colvin - Investor Relations, 913-661-1530
Scott Brockelmeyer - Media Relations, 913-661-1830
SOURCE Ferrellgas Partners, L.P.