CleanFuel CNG Blog

The Railroad Commission of Texas, which oversees oil and gas production in the state, recently reorganized some of its staff to improve efficiency and pave the way for a possible future increase in the use of compressed natural gas (CNG) as a transportation fuel.

The three commissioners, based in Austin, unanimously approved the creation of the Alternative Energy Division (AED) on Oct. 22. Commissioner Elizabeth Ames Jones, appointed by Gov. Rick Perry to the commission in 2005, announced the AED’s launch the following day.

The new division, which focuses on existing alternative energy currently under the commission’s jurisdiction, is comprised of staff from across the agency, now united under one common purpose: the promotion and regulation of alternative fuels throughout the state of Texas. It’s being billed as a more efficient way to manage operations because there can be cross-training of inspectors, trainers, marketers and licensors in one place.

The Railroad Commission of Texas already has been promoting propane as a transportation fuel. According to the commission, Texas operates about 10.000 propane vehicles, and about 1.500, or 4 percent, of the state’s school buses are propane-powered. About 35 Texas districts operate propane school buses, and some have been using the fuel for more than 25 years.

Other important fuels would be liquefied natural gas (LNG) and compressed natural gas, which is used in many fleet vehicles. In the Fort Worth-Dallas area, three districts operate a total of about 40 CNG buses, according to the commission.

Barnett Shale Energy Education Council Executive Director Ed Ireland is a proponent of natural gas as a transportation fuel. Ireland and Texas Christian University’s Ken Morgan, director of the Energy Institute, recently launched the Metroplex Natural Gas Vehicle Consortium, which aims to bring together groups and people who are interested in natural gas vehicles, including fleet operators, natural gas producers and more. One of the consortium’s goals is to encourage the building of natural gas-fueling stations.

Oklahoma State is to benefit from more than $18.6 million in stimulus funds awarded by the US Government this week to support energy efficiency and renewable energy projects. Included in the expected outcomes, for which $11 million has been allocated, will be vehicle and bus conversions to CNG, provision of equipment for CNG refueling stations and three projects intended to address the need for training and outreach to develop a green-jobs work force.

According to a report by Tulsa World, successful implementation of the projects is likely to stimulate even more funding under the auspices of the American Recovery and Reinvestment Act, which appropriated $3.1 billion for promotion of energy efficiency, clean energy deployment and stimulation of local economic recovery.

The State of Oklahoma has passed two alternative fuel bills that will help Oklahomans take advantage of the state’s local alternative energy assets with natural gas for transportation. House Bill 1949 extends an existing tax credit on the purchase of a qualified clean-burning motor vehicle for five years for compressed and liquefied natural gas and electric cars. House Bill 1952 seeks to help further expand the number of vehicles in the state running on alternative fuels like compressed natural gas. The legislation will also help expand the number of publicly available fueling stations across the state.

The credit is equal to 50 percent of the cost of a conversion of vehicles to operate on a qualified fuel, as well as those originally equipped to do so.

The legislation also includes a tax credit for businesses seeking to build infrastructure to fuel such vehicles, along with a $2,500 tax credit for consumers installing home-fueling stations.

House Bill 1952

The bill would allow the Department of Central Services to provide fleet services to schools, county and municipal governments and provide public access to alternative fueling infrastructure in underserved areas unless a private provider locates within five miles.

The “State Fleet Management Fund” will also be amended to allow money from the fund to be used to build alternative fueling infrastructure or to acquire alternative fuel vehicles for use by state agencies or to lease to political subdivisions. The bill states that money from lease payments would be deposited into the fund.

The allowable loan amount out of the fund for a fill station will increase to $300,000, and a current cap of $10,000 per vehicle conversion will remain intact.

The bill would also repeal cost-prohibitive California Air Resources Board emission limits, and instead defer to emissions standards put in place by the federal Environmental Protection Agency. This change will make conversions easier and less cost-prohibitive but would still keep federal standards in place on all conversion kits.