As natural
gas becomes an increasingly viable alternative to gasoline or diesel in fleet transportation,
more countries around the world are offering natural gas vehicle (NGV) tax credits,
grants and incentives, enabling a more affordable transition for fleet managers
and individuals. These
measures are offered by governments - many at the state or provincial levels – as
well as by non-governmental agencies.
In Sweden,
the government recently announced the extension of an incentive until
2016 whereby company car buyers receive a 40 per cent reduced tax rate. This
makes the cost of NGVs competitive with gasoline or diesel-powered vehicles in
that country.
According
to the U.S. Department of Energy (DOE), in recent years, state incentives, including tax credits, grants,
and rebates, have supported the deployment of natural gas vehicles and the
associated infrastructure. In addition, certain state laws and regulations,
such as fleet acquisition requirements, have increased the number of NGVs on
the road.
The DOE’s Alternative Fuels Data Center offers a database which allows users to search
for natural gas laws and incentives in every state. In addition, the advanced search narrows the parameters even further. Also, the
page called Incentive and Law Additions by Fuel and Technology
Type, allows visitors to select specific fuel types and view natural gas
incentives and laws according to a specific fuel.
In 2012 alone, over 35 new incentives and laws
related to natural gas were added to the database.
In Pennsylvania, the Department of Environmental Protection is leading
the Natural Gas Vehicle Program, which was recently widely reported
in the media. The
Alternative Fuels Incentive Grant program is currently offering an estimated $10
million in grants. It offers:
An opportunity to propose projects
which will convert or purchase natural gas vehicles weighing less than 14,000
pounds as well as convert or purchase electric, propane, or other alternative
fuel vehicles of any size.
Pennsylvania is joined by several other states in offering financial
incentives to invest in NGVs: Maryland, New York, Wisconsin, Colorado,
California, Texas, Oklahoma, Louisiana and West Virginia are a few states which
also offer programs. Some states, like Texas, offer programs which cover up to 80
per cent of the incremental cost of an NGV; others like California, offer
various programs which open periodically when funds are available.
Keith Leech, fleet manager with the City of Sacramento is also the
area’s Clean Cities coordinator and chairman. He says the Federal alternative
fuel excise tax credit of 50 cents per gallon has enabled his city to double its
natural gas fuel infrastructure.
“I’m not sure we could have done it without it,” Leech says.
The City of Sacramento currently operates 100 liquefied natural gas (LNG)
refuse trucks with four LNG dispensers.
“We’ve been running natural gas garbage trucks for over 10 years and
it’s going great,” he says.
His city also just received a $600,000 grant from the California Energy Commission and he says the number of public fueling
stations is also increasing.
In Canada, British Columbia’s FortisBC, the largest investor-owned distribution
utility in Canada, has initiated the FORTIS Natural Gas for Transport Incentive
Program: they offer incentives for heavy, medium and
light duty vehicles. The government of
BC has also recently extended its Clean Energy Vehicles for BC program, which includes incentives
for CNG vehicles.
In China, the government has long supported natural gas vehicles by
offering incentives at the local and central levels. Since 2006, the country
has offered a range of programs aimed at promoting natural gas-based clean
transportation for the purpose of reducing emissions, saving energy and
ensuring national energy security.
Have you been successful in receiving a grant or tax incentive? Tell us
about it!
