US: Arkansas launches CNG conversion program

“One of the hurdles to increasing the use of alternative fuels is building or converting infrastructure to make these fuels economically feasible,” said Governor Mike Beebe.  “This program will encourage use of less-expensive American fuel that helps Arkansas’s economy. Making compressed natural gas a more viable option for vehicle fleets can also reduce our dependence on foreign oil.”

Approximately USD 2.2 million will be made available through the American Recovery and Reinvestment Act (ARRA). Besides it, the AEO is dedicating USD 470,000 toward the development of at least two refuelling stations to further boost CNG infrastructure in the state. This money will be provided through USD 400,000 in remaining Oil Overcharge Funds and USD 70,000 provided from Senate General Improvement Funds.

Through this program, rebates of 50 percent of the conversion cost or the incremental cost of purchasing new CNG vehicles would be given directly to fleet operators, but they cannot exceed USD 25,000. CNG conversion kits must comply with EPA requirements, while eligible vehicles are light, medium and heavy-duty vehicles, traditional mass transit buses, and school buses.

Source: Arkansas Economic Development Commission