OAKBROOK TERRACE, Ill. -- Compressed natural gas (CNG) and liquefied natural gas (LNG) infrastructure continues to expand around the nation. Following is a roundup of some of the latest state-level news covering alternative fuels.
Colorado
Sparq Natural Gas LLC, an Oklahoma City-based developer of natural gas fueling infrastructure, is working to install a CNG fueling site at the GilCo Petroleum Park in Rifle, Colo. According to a report in The Post Independent/Citizen Telegram, Sparq is applying for up to $500,000 in financial incentives from the Colorado Energy Office to help pay for the fueling equipment.
Rifle used to have a CNG fueling site at a Shell gas station from 2011 to 2014, the report said. A combination of issues—poor gas-line pressure, high electricity costs for running the compressors and declining demand during the recession—led to its closing.
Keith Gilstrap, owner of GilCo Petroleum Park, told the newspaper that he had been trying to line up a CNG station development partner for the past couple years, and believes Sparq’s proposal “looks strong.”
The site would be a 24-hour self-serve station, set up to handle a variety of truck sizes, including Class 8 semis. A high-pressure gas main runs near the GilCo Petroleum Park, which would help the site dispense CNG at more than 10 gasoline gallon equivalents (GGE) per minute.
Sparq is opening its first CNG site in Colorado in June in Pueblo, and is building a second location in Trinidad, with plans for two more in Eaton and Durango later in the year.
Elsewhere in the state, fueling site developer Trillium CNG is beginning construction of a CNG fueling location at a Shell station in West Glenwood Springs, with plans to open it by October.
Nebraska
Governor Pete Ricketts (R) has signed into law the Nebraska Clean-Burning Motor Fuel Development Act, which provides a rebate of up to $4,500 for each gasoline- or diesel-powered vehicle that is converted to run on a clean-burning fuel. These fuels include CNG, LNG, hydrogen fuel cells, propane and ethanol. The bill, which cleared the state legislature in late May, also offers a $2,500 rebate for new natural-gas compression and dispensing equipment for residential, non-commercial use.
Pennsylvania
Sunoco Inc. has added CNG—along with other alternative fuels--to its gas station at the Pittsburgh International Airport. According to The Pittsburgh Post-Gazette, the station, which features an APlus convenience store, now has three CNG dispensers, a liquid propane dispenser and three electric-vehicle (EV) charging stations. Sunoco received an $830,000 grant from the state Department of Community & Economic Development for installing the CNG dispensers.
Sunoco spokesperson Jeff Shields told the newspaper that the site made sense for alternative fuels because the airport and demand for alternative fuels had both grown, and natural gas and propane prices are low relative to conventional gasoline and diesel. This marks Sunoco’s second CNG site, its first propane location and first EV charging site in Pennsylvania. The company is also said to be considering adding CNG to a location in Canonsburg, Pa.
Texas
Sales of CNG and LNG in Texas are up by 78% vs. fiscal year 2014, according to the latest figures from the Railroad Commission of Texas, the state energy regulatory body.
Railroad Commissioner David Porter, a big proponent of natural gas as a transportation fuel, announced that tax revenue from sales of CNG and LNG as of May 31 hit $3.03 million for fiscal year 2015.
“Natural-gas vehicles are becoming mainstream faster than expected,” said Porter. “These collections are nearly double the amount collected last year at this time.”
After factoring in the 15-cent-per-gallon-equivalent state motor fuel tax, this $3.03 million figure equates to the sale of 20.2 million gallon equivalents of natural gas.
Meanwhile, the number of CNG and/or LNG fueling stations in Texas has grown by 30% during this time period to hit 137. This places it among the top states by site count, alongside California, New York and Oklahoma. Another 44 sites are slated to open within the next 12 to 18 months. The number of natural-gas-powered vehicles (NGVs) in the state is now more than 7,900.
Utah
Utah Governor Gary Herbert (R) signed bills last week that extend a state alternative-fuel vehicle (AFV) tax credit program, and provide an income-tax credit with the purchase of a new CNG- or LNG-powered Class 7 or 8 heavy-duty truck. Herbert had actually approved the bills last year; the signing this week was meant to promote alternative fuels and efforts to improve air quality in Utah.
“We have serious air-quality problems along our populous Wasatch Front, where more than 1 million individuals reside,” said the bills’ sponsor, State Representative Stephen G. Handy (R), in an interview with NGT News. “If we can get more traditional-gas vehicles to convert, perhaps our air can be cleaner.”
One bill extended a program that provides up to $1,500 in tax credits for the purchase of an AFV or conversion of a conventional vehicle to an AFV, which could run on CNG, LNG, propane or electricity.
The bill also creates the Conversion to Alternative Fuel Grant Program, which provides an up to $2,500 grant per vehicle conversion. The service provider would apply for the grant and pass the savings on to the customer.
A related bill signed into law provides an income tax credit to businesses that buy a new CNG- or LNG-fueled heavy-duty truck, beginning with $25,000 for years 2015 to 2017, and then gradually falling to $15,000 in 2020. To qualify, 51% of the truck’s annual mileage must take place in Utah.
“A new CNG semi costs about $50,000 more, I believe, so this small incentive will be a great help,” Handy told NGT News.
This same bill increases the state sales tax on CNG and LNG from 8.5 cents to 16.5 cents per GGE by 2018.
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