Propane-fueled Forklifts Are Sustainable, High Performers

Propane-fueled Forklifts Are Sustainable, High Performers

Fuel tax credit, ease of refueling -
offer advantages to facility managers as economy rebounds

By Brian Feehan,Vice President, Propane Education & Research Council

Owners and managers of warehouses, distribution centers, and manufacturing facilities alike across the United States demand robust material handling equipment that comes with reliable service, good value, and perhaps most of all, sound economics. Those demands are made of equipment dealers and service personnel, along with equipment manufacturers and design engineers, all of whom are committed to helping their respective customers meet increasing orders as the global economy improves.

Propane-fueled forklifts offer high performance in the areas that matter most to end-user customers, especially in the area of economics. For example, passage by the United States Congress in December 2010 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 enhanced the cost effectiveness of propane-fueled forklifts by making available a 50-cent per-gallon propane fuel tax credit through Dec. 31, 2011, and retroactive to 2010. (See accompanying At a Glance box.)

Additionally, since propane-fueled forklifts maintain 100 percent power throughout operation, there is no slowdown as a shift progresses, and they take minutes to refuel. Plus, they reduce greenhouse gas emissions compared to gasoline or diesel forklifts.

Prevalent, sustainable technology

Forklifts aren’t the only off-road equipment fueled by propane. For example, more than a dozen industry-leading manufacturers offer propane-fueled commercial lawn mowers, while a growing number of work trucks, shuttles, vans, and school buses are fueled by propane autogas. In fact, in December 2010, the long-running Public Broadcasting Service (PBS) program MotorWeek profiled both propane-fueled off-road equipment and on-road vehicles fueled by propane autogas^{Note 1}, and established that in either application, the vehicles are high performers and provide easy refueling due to a readily available infrastructure.

According to the Occupational Health and Safety Administration (OSHA)^{Note 2}, several forklift classes use propane as a fuel source, including:

Class IV: Internal Combustion Engine Trucks with Solid/Cushion Tires.

Class V: Internal Combustion Engine Trucks with Pneumatic Tires.Today, more than 600,000 propane-fueled forklifts are in operation in U.S. warehouses, distribution centers, and factories. The fact that these forklifts maintain 100 percent power throughout a shift may be surpassed only by their faster ground speeds than forklifts that operate on other fuels or power technologies.

Facility owners and managers also are considering ways to introduce sustainable practices and still maintain a cost-effective operation. Propane-fueled forklifts are a high performer in this arena as well. Propane was approved through the Clean Air Act of 1990 as a clean, alternative fuel. Propane-fueled forklifts will help a facility meet its sustainability goals and reduce its carbon footprint since they cut greenhouse gas emissions by 19 percent compared with gasoline powered forklifts, and 7 compared with those powered by diesel.

Since propane-fueled forklifts have become ubiquitous in U.S. warehouses, distribution centers, and factories, propane providers have worked hard over the years to establish a reliable refueling infrastructure. Through this process, propane is delivered to meet just-in-time inventory as often as needed – either through cylinder exchange or on-site refueling.

Cylinder exchange programs usually include installation of a cage within the facility where the propane provider subsequently replaces empty cylinders with full ones during regularly scheduled deliveries. This mature business model conserves time and resources, and allows appropriately trained operators to refill their forklifts as often as needed. For facilities requiring large propane volumes, a propane provider can install a no-spill dispenser on site to refuel empty cylinders. This dispenser can also refill tanks for work trucks fueled by propane autogas.

Appropriate training, safety measures crucial

With warehouse and distribution center management identifying the next generation of forklift operators, it is crucial that appropriate training and safety measures are continually addressed. While exchanging an empty forklift propane cylinder isn’t difficult, entities like the Propane Education & Research Council (PERC) and the Railroad Commission of Texas maintain that all cylinder exchanges should be conducted by appropriately trained personnel, using proper safety procedures^{Note 3}.

In fact, personnel that have not been appropriately trained should never attempt to exchange a propane cylinder, and must defer to co-workers with appropriate training. Forklift manufacturer safety training courses are critical to achieving that end. Mandates within Occupational Health and Safety Administration (OSHA) Standard 1910.178 (I)(2)(ii) and American National Standards Institute/Industrial Truck Standards Development Foundation (ANSI/ITSDF) Standard B56.1-2009 4.19.2 should also be considered.

Propane fuel tax credit basics

A useful incentive that enhances the cost-effectiveness of propane-fueled forklifts is the 50-cent per gallon propane fuel tax credit available through the Tax Relief Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The fuel tax credit is retroactive to 2010; note that claims for 2010 propane fuel usage can only be filed once, and must be applied for by Aug. 1, 2011. Claimants must be registered with the Internal Revenue Service (IRS) and follow all documentation requirements. Owners and managers of warehouses, distribution centers, and factories should consult their tax advisor regarding claims for credits or refunds, and the IRS website for appropriate dates and forms.

Propane-fueled forklifts provide unique advantages for multiple facility types due to their high-performance capabilities, economic benefits, the additional cost savings associated with the available propane fuel tax credit, and a proven refueling model. With throughput increasing and the need to meet both customer deadlines and sustainability goals looming larger, propane-fueled forklifts are positioned well to achieve both goals. Equipment dealers and service personnel can help facility owners and managers meet those ends through an intimate understanding of what propane-fueled forklifts have to offer.

At a Glance:

• The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 
• The legislation makes available a 50-cent per gallon propane fuel tax credit for owners and managers of warehouses, distribution centers, and manufacturing facilities through Dec. 31, 2011, and retroactive to 2010. 
• Claims for 2010 propane fuel usage can only be filed once, and must be applied for by Aug. 1, 2011. 
• Claimants must be registered with the Internal Revenue Service (IRS) and follow all documentation requirements. 
• Facility owners and managers should consult their tax advisor regarding claims for credits or refunds, and the IRS website for appropriate dates and forms.  

The Propane Education & Research Council was authorized by the U.S. Congress with the passage of Public Law 104-284, the Propane Education and Research Act (PERA), signed into law on October 11, 1996. The mission of the Propane Education & Research Council is to promote the safe, efficient use of odorized propane gas as a preferred energy source.

NOTES:

About the Author:


Brian Feehan is vice president of the Propane Education & Research Council (PERC) in Washington, D.C. As an industry-funded organization, PERC focuses on engine fuel, research and development, safety and training, agricultural markets, and residential and commercial markets. Prior to his role at PERC, he served as the executive director of the Propane Vehicle Council (PVC). The PVC was the national organization representing the propane industry’s engine fuel interests. Prior to joining the PVC, Brian served as the projects director for the World LP Gas Association (WLPGA) in Paris, France. As WLPGA projects director, he developed marketing tools and implemented strategies promoting the use of LP Gas worldwide. Brian holds a bachelor’s degree in political science and a master’s degree in public administration from George Mason University, Fairfax, Va.