With the increased use of natural gas as a viable transportation fuel, more cities and states are taking action. Programs and plans to replace sanitation and fleet vehicles are being put into operation. CNG Energy Partners can help your fleet to conduct research on fuel savings from converting to natural gas. We can also help with identifying, designing and developing the Infrastructure necessary to refuel your vehicles. On the top of it we can both assist in purchasing brand new CNG operated vehicles and refit vehicles you already have in your fleet. As a cleaner, more affordable fuel, the use of natural gas is on the rise across the nation.
A growing number of fleets have already made the switch to natural gas after weighing the benefits and challenges.
Municipalities, counties and other government agencies have advantages when considering the use of an alternative fuel in their fleet vehicles because many of the funding opportunities are designed to assist primarily or only taxpayer funded entities. The reasoning is that these types of fleets are not generally going to obtain high mileage annually like the commercial/for profit fleets will and government entities are not able to take advantage of capital expenditure tax credits. Relatively higher costs spread over lower mileage means that the payback period becomes significantly longer than that of a commercial fleet.
Reducing the out of pocket costs by grants gives these entities the opportunity to payback the capital expenditure in a more reasonable time and to then reap the fuel cost savings over the remainder of the useful life of the vehicle. These team up to make the capital investment decision more likely to be beneficial and receive approval.
Even though government entities are not subject to some federal fuel taxes, the federal excise tax credits available to users of CNG can be rebated to any entities that operate their own refueling stations. This 50 cents per GGE can become a significant income to the government entity that is dispensing the CNG.
Funding for government fleets is aimed to achieve good public relations, to show that positive steps to control air quality can be taken, and to generate interest in the use of CNG as an alternative transportation fuel. Transporting 60 youngsters on a grant funded school bus achieves much more positive public relations than does funding a garbage truck.
As the result of those benefits there is a large number of fleets that already made a switched to CNG and enjoying all the inherited benefits while projecting greener, cleaner, and more responsible public image.