Oklahoma Incentives Promote CNG

Federal tax incentives for purchasing a natural gas vehicle (NGV) haven’t existed since 2010. However, many states continue to provide and even increase local incentives. With a recently announced rebate program from Oklahoma Natural Gas (ONG), Oklahoma continues to lead the way.

ONG, a natural gas distribution company which operates 28 CNG fueling stations in Oklahoma, recently raised the price per gasoline gallon equivalent (GGE) by $0.25. If you’re an NGV driver, that might seem significant. To keep it in perspective though, the price is now only $1.35 – that’s about a 60% discount from the gasoline station down the street from me.

The surcharge will support natural gas vehicle growth in Oklahoma. The program offers three types of rebates:
1. $2,500 for a dedicated natural gas vehicle
2. $1,500 for a bi-fuel natural gas vehicle
3. $2,500 for a residential CNG fueling system

You can download the tariff and learn more about the program here.

In addition to the Oklahoma Natural Gas CNG Rebate Program, the Alternative Fuel Vehicle Tax Credit is available in the state. It offers a one-time income tax credit for 50% of the incremental cost of a new or converted natural gas vehicle. Oklahoma also has a loan program that offers private fleets the opportunity to borrow toward the cost of switching to CNG at a 3% interest rate. You can learn more about these and other incentives at the Department of Energy’s website.

With such incentives available and with fuel cost at half the price of gasoline, the Sooner State makes switching to CNG an easy decision for drivers.

We want to know, have any of you taken advantage of these incentives in Oklahoma? If you’re not from Oklahoma, how do your state’s incentives compare? Let us know in the comment section below.


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Comments

Avatar
Fasted18
The argument that a CNG vehicle is not in use now is false.  Honda has a Civic CNG.  Los Angeles City buses run on CNG.  Burbank California sanitation trucks run on CNG.   If a city bus with air conditioning for its passengers can run on CNG then the auto makers have really no excuse.  The real reason is that the Big Oil has not given the auto makers the nod to do this.  Big Oil can do this but they would have to spend a small portion of their $10 billion per quarter net profit to add CNG pumps to the stations and infrastructure to get the product to market. 
Avatar
supertstorm
I have taken the plunge and bought a CNG Civic here in OK.  Between the $6000 worth of incentives combined with what I calculated was about a $1500 fuel savings per year at 12K miles compared to my previous car...I'm basically buying a ~5K car if I keep it 10 yrs.  OK has the infrastructure to support public use of CNG...to me they lead the way.

Anyone know why CNG prices in CO and CA are well over $2 per gge?  Is it taxes or surcharges?
Avatar
cbrian007
I have just recently purchased my home fueling station for +/-$5,000.  With a 50% tax credit from Oklahoma and $2,500 Rebate from ONG, the home fueling station should be free.  (I'll see after I jump through all the governmental hoops and forms)  I just have to pay for installation.  In short, Oklahoma has basically made it where you can get a free home fueling station.  Second, reviewing my last ONG gas bill and using GGE = 1.14 therm, Gallon Gas Equivalent CNG will be $0.56/GGE when I fill up at the house.  Somebody will figure out what I'm doing and figure out a way to tax me but in the meantime, unless my math is wrong, I plan to get a free fueling station and fill up for $0.56/gge.  How cool is that?
Avatar
cbrian007
I have just recently purchased my home fueling station for +/-$5,000.  With a 50% tax credit from Oklahoma and $2,500 Rebate from ONG, the home fueling station should be free.  (I see after I jump through all the governmental hoops and forms)  I just have to pay for installation.  In short, Oklahoma has basically made it where you can get a free home fueling station.  Second, reviewing my last ONG gas bill and using GGE = 1.14 therm, Gallon Gas Equivalent CNG will be $0.56/GGE when I fill up at the house.  Somebody will figure out what I'm doing and figure out a way to tax me but in the meantime, unless my math is wrong, I plan to get a free fueling station and fill up for $0.56/gge.  How cool is that?
Avatar
supertstorm
cbrian007 Honda no longer recommends home refueling because of the potential issues with moisture in the home gas line (even with filtering/drying equipment) which could damage the fuel system.  The natural gas at the pumps is filtered and dried to commercial quality and meets the NFPA and SAE standards. Much of this info has been taken from pg 3 of the 2012 Civic Natural Gas supplemental manual. Have also heard that the Phill home appliance compressor is not lasting as long as expected. For these reasons I will be holding off on that purchase.  Maybe things will be different when they bring the $500 appliance to market.
Avatar
cbrian007
Supertstorm,
We'll I've already jumped in and bought the thing.  So it's too late for me now.  However you make some very good points.  I had initially considered installing a 2 micron filter in my gas line before it hits the compressor.  In light of your information I'll probably go ahead and install that filter now. (+/-$150 for the filter.)  I had heard the Phill runs out of gas, no pun intended, at about 2000 GGE.  That should get me a couple of years of home refuelling; hopefully enough time for GE to get the $500 machine marketed.  If I can keep my installation costs in check, I'll have my money back in about a year.  Time will tell.  Thanks for the info.
Avatar
chadosko
Fasted - You're right, CNG is being used -- particularly by fleets -- in wid numbers, all over the nation.

Super storm - Congrats on the purchase!

Brian - that's awesome. You're one of the lucky few!
Avatar
cshelden
Just purchased a new Honda CNG so far I love it, I drive about 100 miles daily so the fuel savings should be tremendous for me.  Am I reading the Oklahoma Tax Credit for CNG vehicles correctly in that they will give me a 50% credit based on the total cost of the vehicle I purchased?  If so that is HUGE. 
Avatar
exLeaf
cshelden, first congrats on your car,  50% state credit is based on incremental cost  of Civic Natural Gas compared to regular Civic and that cost for 2012 model is $6,935 and we will get 50% of that. If you need copy of the letter from Honda let me know
Avatar
exLeaf
ONG, rebate was reduced and now is:

1. $1,000 for a dedicated natural gas vehicle
2. $500 for a bi-fuel natural gas vehicle
3. $1,000 for a residential CNG fueling system
Avatar
ymbk
Do any OK rebates work towards a used CNG vehicle? Just curious, as there seem to be some on the market. Sometimes they are less than price of a comparable traditionally fueled vehicle, if being sold in an area where there isn't much CNG. Thanks.
Avatar
Multitech
Question about the ONG rebates;
In their conditions it says that the conversion must be EPA/CARP certified.
The installer tells me that mine is EPA complient but not certified.
Could someone explain the differance?
Thank you
Avatar
Fueled
A CNG system that is compliant simply meets the design for a CNG system to assure reduced emissions, however the EPA certifies specific vendor CNG systems. How the EPA determines certification is not clear, as is to be expected with the EPA. However, the goal of ensuring the system is safe leads the way for EPA certification. The U.S. has a far greater level of safety based requirements in a CNG system than many Nations. 
Systems are being sold by dealers and via the Internet that are not EPA certified.
Never buy a vehicle without express written proof the CNG system is EPA certified.
 
The installer (CNG conversion shop) should have directed you to a certified system. This is one issue resulting from the emerging CNG market. I would look at the specifications of your system and compare with a certified EPA system; if system specifications match or are within similar tolerances I would then seek the rebate from ONG. In fact, I would simply seek the rebate from ONG.  If denied I would have ONG detail the reasons your CNG system is not eligible, which may allow you to simply replace specific components to meet EPA certification status.   
Avatar
Fueled
Even if you miss the rebate consider this:
Note: I do not buy or sell CNG fuel, vehicles or infrastructure

Fixed: 1,000,000 BTUs (per MCF)  /114,000 BTUs (BTUs per Gallon of Gasoline) = 8.772 GGE (Gasoline Gallon Equivalent) per MCF (Thousand Standard Cubic Feet of Natural Gas)

Equations:

Fuel Cylinder Energy Content:
•9.1 GGE Fuel Cylinder x 114,000 BTUs per Gasoline Gallon Equivalent= 1.037MCF (1,037,400 BTUs)
•1,037,400 BTU’s / 1,000,000 = 1.0374 MCF
•1,037,400 BTU’s / 1,000,000 = 1.0374 MCF  per 9.1 GGE Fuel Cylinder
•9.1 GGE Fuel Cylinder = 1.037MCF

CNG Savings Over Gasoline
•$1.29 per Assumed GGE retail price  x 9.1 GGE = $11.74 per 9.1 GGE Fuel Cylinder
•9.1  x $3.70 Assumed Cost of Gasoline = $33.67 cost of 9.1 Gasoline Gallons

Savings per 9.1 GGE Fuel Cylinder: $21.93


Apply this math for multiple refueling and you will likely have paid for your CNG system in 30,000-38,000 miles

If you have a varied fuel cylinder size or multiple fuel cylinders simply replace your data in the above formulas. Replace the data for the cost of CNG / Gasoline as well. 
Avatar
BonoChrisP
Proud to be Oklahoman!
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ryandeskat
In addition to the Oklahoma Natural Gas CNG Rebate Program, the Alternative Fuel Vehicle Tax Credit is available in the state. It offers a one-time income tax credit for 50% of the incremental cost of a new or converted natural gas vehicle.  http://www.wallmountsplus.com/
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