APGA strongly supports the growth and development of the natural gas vehicle (NGV) industry. NGVs provide a key alternative fuel option for many businesses and consumers across the country. Many APGA members not only supply gas to NGV fueling stations, but also maintain and manage fueling stations or operations of their own. NGVs’ low emission profile and relative price stability make them an attractive option for urban fleets, long-haul shipping, and municipal and local vehicles.
What are the Benefits of Natural Gas Vehicles?
NGVs are some of the cleanest vehicles on the road. The newest NGVs emit zero or near-zero NOx emissions and significantly reduce greenhouse gas (GHG) emissions when compared to gasoline or diesel engines. NGVs are an available alternative to conventional engines and a practical means to reduce emissions from the transportation sector, particularly from heavy-use applications. NGVs have helped bring localities into compliance with federal ambient air quality standards and other state and local pollution laws and regulations. NGVs also provide acute emissions reductions benefits – switching from a diesel to natural gas school bus, garbage truck, or other municipal vehicle can significantly reduce harmful tailpipe emissions and ensure that localities have cleaner air.
Further advancing the environmental benefits of NGVs is the ongoing development of renewable natural gas (RNG). RNG is methane extracted from the decomposition of biodegradable sources, such as from landfills and agriculture waste. RNG is collected from the breakdown of organic materials, treated and cleaned, and redistributed as pipeline-grade methane. Often, RNG is used for transportation purposes. The RNG process ultimately takes methane out of the air. Thus, a waste collection company or agency that installs an RNG plant for its collections could actually have negative net greenhouse gas emissions.
Due to developments in production and transportation, natural gas prices have remained mostly stable over the last several years. Based on current supply and production levels, prices of natural gas are not expected to significantly fluctuate in the near term. Prices of liquefied natural gas (LNG) and compressed natural gas (CNG) for transportation use have accordingly remained stable. Fleets that use NGVs have been able to fairly accurately plan their fuel prices and optimize business investments due to the flat price regime of natural gas.
NGVs are available in every vehicle class, including light duty, and are used in commercial, municipal, freight, port and transit, and other applications. APGA members are proud to supply and operate NGV fleets and fueling stations across the country.
Below are a few more specific APGA positions regarding the natural gas direct use. Please click on the policy position to view its description and details.
APGA does not support “winners and losers,” so when it comes to vehicle fuels, parity should be paramount. However, if the government is going to recognize the environmental benefits of certain fuels, natural gas should qualify. NGVs are some of the cleanest vehicles on the road, with the newest engines emitting zero or near-zero NOx emissions, which means significantly reduced GHG emissions when compared to gasoline or diesel engines. By only allowing electric vehicles to receive certain tax credits, government is taking a heavy-handed approach eliminating choice, stifling innovation, and diminishing the flexibility to respond to GHG emissions goals, often with the least-cost solution. As well, is the infrastructure, such as charging stations, available to support this push for a specific vehicle fuel? APGA hopes any policy development will be considerate of environmental benefits balanced with affordability, and APGA and its members stand ready to work on this type of solution.
State governments have demonstrated a long-standing commitment to reducing our dependence on foreign energy sources and pollution emitted by light and heavy-duty vehicles. The health and national security benefits of reducing both are clear, as sending money abroad to potentially hostile regimes harms our security and reducing emission of criteria pollutants and greenhouse gases improves public health and helps to protect the environment.
States have historically offered and continue to offer various incentives for NGVs and fueling infrastructure because of the critical benefits they confer.
Federal & State Incentives