“The program approved represents a win for the state on at least four fronts: It encourages use of Oklahoma’s vast natural resources; promotes Oklahoma’s role in helping our country achieve energy independence; benefits our rural communities by providing access to CNG fueling in remote as well as urban areas; and supports the viability of Oklahoma’s local natural gas distribution facilities,” OCC Chair Dana Murphy said. “I have continually expressed the need for innovative programs in Oklahoma and encouraged all stakeholders and the OCC to explore and work together on these types of issues. I am pleased to see our staff and others rise to the challenge and develop a beneficial program that also offers a financial break to Oklahomans who’ve been hit hard in the pocketbook.”
Commission vice Chair Bob Anthony said the program will serve as an incentive to grow the state’s CNG infrastructure. “Promoting natural gas usage in vehicles helps America reduce its dependence on foreign oil and helps our nation’s balance of payments. Natural gas is a clean, abundant and economical transportation fuel and its expanded use can provide jobs to millions of Americans. My personal vehicle is CNG, and it’s safe and reliable.”
The program will offer rebates of $2,500 for dedicated natural gas vehicles, $1,500 for “dual fuel” vehicles, and $2,500 for residential systems that will allow for the refueling of a CNG vehicle at home. The program is limited to three rebates per customer per calendar year.
At the same time, the program will be funded through a 25 cent per gallon-equivalent surcharge at the 25 ONG-owned CNG fueling facilities that are open to the public. Because the gas distributor cannot sell CNG at a profit, with the surcharge the cost of natural gas at ONG’s pumps will still be lower than at commercial stations.
Source: Oklahoma Corporation Commission