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State Energy Program Helping Arkansans Convert to Compressed Natural Gas

January 25, 2012 - 4:30pm

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The Arkansas Energy Office recently launched a Compressed Natural Gas Conversion Rebate Program, which provides incentives for fleets and individuals to purchase and/or convert their Arkansas-licensed vehicles to compressed natural gas (CNG). | All Rights Reserved.

The Arkansas Energy Office recently launched a Compressed Natural Gas Conversion Rebate Program, which provides incentives for fleets and individuals to purchase and/or convert their Arkansas-licensed vehicles to compressed natural gas (CNG). | All Rights Reserved.

As President Obama highlighted in his State of the Union speech last night, developing natural gas here at home is part of the solution to getting off foreign oil and putting Americans to work. As part of that commitment, the Arkansas Energy Office (AEO) recently launched a Compressed Natural Gas Conversion Rebate Program, which provides incentives for fleets and individuals to purchase and/or convert their Arkansas-licensed vehicles to compressed natural gas (CNG).

Thanks to $2.2 million in Recovery Act funding from the Department’s State Energy Program, rebates are available on a first-come, first-served basis until January 31, 2012. The amounts of the rebates depend on either the cost of conversion -- or the cost of a new CNG vehicle -- but cannot exceed $25,000.

“One of the hurdles to increasing the use of alternative fuels is building or converting infrastructure to make these fuels economically feasible,” Arkansas Governor Mike Beebe said. “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.”

Eligible entities include cities, counties, school districts, private fleets and individuals. Eligible vehicles include light, medium, and heavy-duty vehicles, traditional mass transit buses, and school buses.

In addition to the Recovery Act rebate funds, the AEO is further developing CNG infrastructure in the state by dedicating $470,000 toward the development of at least two CNG refueling stations.

For more information, or to find applications for the program, visit the Arkansas Energy Office.

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