Natural Gas Vehicles

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 emissions when compared to gasoline or diesel engines. NGVs are an available alternative to conventional engines an pratical 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.


NGV Policies

Alternative Fuel Tax Credit

The alternative fuel tax credit (AFTC) is a $0.50 per gallon of gasoline equivalent excise tax credit on the sale of compressed natural gas (CNG), liquefied natural gas, renewable natural gas (RNG), and other fuels used for transportation. This credit was originally instated the Energy Policy and Conservation Act of 2005. It expired in 2010 and has been renewed on a short term or retroactive basis since then. The last extension occurred in the 2018 Bipartisan Budget Act, but only for tax year 2017.

The AFTC plays a crucial role by promoting investment in natural gas vehicles and fueling infrastructure. However, the AFTC is constantly being extended for only one year or retroactively. This creates massive uncertainty for those looking to invest in NGVs, whether in vehicles, infrastructure, or for fuel providers. The lapse in the credit is impacting future investment in NGVs. The time is now to act on reinstating the AFTC.

Further, many other fuels and vehicles enjoy generous federal tax incentives and subsidies. This creates an unlevel playing field in the transportation space and makes attracting investment in certain areas difficult. Renewing and extending the AFTC will, at the very least, allow NGVs to better compete in an already unfair federal fuel policy space. The AFTC is necessary to ensure fairness and promote competition.

Congress should extend the AFTC and work to find a long-term solution for this credit.

LNG Excise Tax Equalization

Under current law, the federal highway excise tax on both LNG for use in motor vehicles and diesel are taxed on a volumetric basis at 24.3 cents per gallon. LNG is less energy dense than diesel, as it requires 1.7 gallons of LNG to equal the energy content of 1 gallon of diesel. Based on this fact, LNG trucks will consume more fuel than their diesel counterparts and therefore will pay more in federal highway taxes than their diesel counterpart.

This additional tax burden provides a strong disincentive for consumers to purchase an LNG-powered truck. Taking into account the incremental cost of an LNG truck, which can be up to $60,000, the additional fuel tax burden may be sufficient to prevent fleets from using cleaner-burning LNG.

This legislation should be passed to remedy that disincentive by taxing LNG on an energy content basis, as CNG is taxed. This would level the playing field between LNG and diesel.


Federal and State Incentives

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.

Sates have historically offered and continue to offer various incentives for NGVs and fueling infrastructure because of the critical benefits they confer.


To learn more about state incentives for NGVs, please visit our strategic partner, NGVAmerica at


NGV Links & Resources

Click on the name of the resource (in blue) to expand and view the description of the organization.

The Alternative Fuels and Advanced Vehicles Data Center (AFDC) provides information, data, and tools to help fleets and other transportation decision makers find ways to reduce petroleum consumption through the use of alternative and renewable fuels, advanced vehicles, and other fuel-saving measures.

Vehicle Cost Calculator: This calculator utilizes information about your driving habits to calculate total cost of ownership and emissions for many vehicles, including NGVs.

Clean Cities is the U.S. Department of Energy's (DOE) flagship alternative-transportation deployment initiative, sponsored by the Vehicle Technologies Program. Clean Cities has saved nearly 3 billion gallons of petroleum since its inception in 1993.

Clean Cities helps vehicle fleets and consumers reduce their petroleum use. Clean Cities builds partnerships

  • Alternative and renewable fuels
  • Idle-reduction measures
  • Fuel economy improvements
  • New transportation technologies, as they emerge

Clean Cities' goals and accomplishments are listed at

The Official U.S. Government Source of information on Fuel Economy.

DOE National Laboratories: This site provides contact information for the DOE National Laboratories and Administrative offices.

Other Federal Government Agencies: Several other government agencies implement programs and regulations (as well as incentives) related to alternative fuels and advanced vehicles.

The National Association of State Energy Officials contains a list of state and territory energy office websites and contacts (

NAFA is the world's premier not-for-profit association for professionals who manage fleets of sedans, public safety vehicles, trucks, and buses of all types and sizes, and a wide range of military and off-road equipment for organizations across the globe. NAFA provides its members a full range of products and services, including statistical research, publications, regional chapter meetings, government representation, seminars, online information, and an annual Institute & Expo.

ICLEI is an association of over 1220 local government Members who are committed to sustainable development. Our Members come from 70 different countries and represent more than 569,885,000 people.

ICLEI provides technical consulting, training, and information services to build capacity, share knowledge, and support local government in the implementation of sustainable development at the local level. Our basic premise is that locally designed initiatives can provide an effective and cost-efficient way to achieve local, national, and global sustainability objectives.

The EIA collects data on alternative-fueled vehicles in the U.S.

CNG Station Finder Mobile Application Now Available for iPhone and Android:

FEMP provides guidance and assistance to help implement Federal legislative and regulatory requirements mandating reduced petroleum consumption and increased alternative fuel use. FEMP's efforts include assisting agencies with implementing and managing energy-efficient and alternative fuel vehicles and facilitating a coordinated effort to reduce petroleum consumption and increase alternative fuel use annually.