The Governor of Pennsylvania, Tom Corbett, has awarded US$ 7.7 million in Act 13 funding to 25 companies making the switch to natural gas for heavy-duty fleet vehicles.
Corbett commented: "Act 13 not only strengthened oversight of the drilling industry, it allows us to continue growing jobs while cleaning the air at the same time. Natural gas, particularly from the shale formations here in Pennsylvania, is an abundant, affordable, domestic fuel that is putting this country on a path to energy independence."
Passed in 2012, Act 13 was the single largest step in modernising Pennsylvania's Oil and Gas Law in almost 30 years.
Natural gas conversion
The Act authorised the Department of Environmental Protection (DEP) to develop and implement the Natural Gas Energy Development program, funded by impact fees paid by natural gas operators. The program distributes up to US$ 20 million in grants over a period of three years, to help pay for the purchase and conversion of heavy-duty natural gas fleet vehicles.
For this second round of the program, DEP received applications from 37 applicants requesting more than US$ 10 million in grants. A portion of funding was reserved for local transportation organisations.
The first round awarded US$ 6.3 million to 19 companies and organisations making the switch to natural gas. The third and final round is due to open in late summer 2014.
CNG and LNG
Eligible vehicles for all three rounds of the Natural Gas Energy Development program include those fuelled with compressed natural gas (CNG), liquefied natural gas (LNG) or bi-fuel vehicles weighing 14 000 pounds or more.
Grant requests cannot exceed 50% of the purchase or retrofit cost per vehicle or a maximum total of US$ 25 000 per vehicle.
Alternative fuel incentives
Corbett recently announced the March 1 opening of the Alternative Fuel Incentive Grant (AFIG) program, providing an estimated US $8 million to help companies purchase or convert CNG, LNG or bi-fuel vehicles weighing 26 000 pounds or less, as well as electric, propane or other alternative fuel vehicles of any weight.
Applications are also being accepted for innovation technology projects that include research, training, development and demonstration of new applications or next phase technology related to alternative transportation fuels and alternative fuel vehicles.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/small-scale-lng/24032014/governor_awards_ngv_conversion_funding_324/