More Fleets Choosing Natural Gas
AUSTIN – The Texas Natural Gas Foundation (TXNG) announced today the latest motor fuel tax figures from the Texas Comptroller. Findings show natural gas vehicle sales continue to climb. Tax collections as of Aug 31, the end of the state’s fiscal year, registered a 17 percent increase over the previous year. New fleets, such as Fort Bend ISD, Houston Metro and United Foods contributed to the growth in demand statewide.
This fiscal year’s results include fuel for the vehicles that responded to Hurricane Harvey. For example, the integrity of the natural gas pipelines allowed Freedom CNG to fuel METRO transit buses, Houston Distributing Trucks, Waste Corporation garbage trucks, AT&T service vehicles and many other fleets in Houston after the storm, which significantly helped with remediation efforts.
“Major Texas fleets such as Central Freight and UPS depended on their natural gas vehicles to keep deliveries coming to the Gulf Coast,” said State Representative Jason Isaac, TXNG President. “Houston-area natural gas prices remained stable and refueling stations were open during and after the storm.”
Isaac reported tax revenue from sales of compressed natural gas (CNG) and liquefied natural gas (LNG) motor fuel totaled $5,371,331 for the year. “At 15 cents per gallon equivalent, $5,371,331 of motor fuel tax equates to the sale of 35.8 million gallon equivalents of natural gas in the past year,” Isaac said. “That doesn’t count fuel consumed by municipal and transit fleets, which are tax-exempt and make up approximately a third of natural gas vehicles. If you add their estimated use, natural gas motor fuel use equates to about 47.6 million gallons of Texas natural gas being utilized to benefit our economy, and providing funds to our economic stabilization fund, roads, and schools.”
A “gallon equivalent” is the amount of CNG or LNG with the same energy content as a gallon of gasoline or diesel fuel.
“The latest studies show that natural gas vehicles are ultraclean compared to their diesel counterparts, especially in applications like school buses and stop-and-go traffic,” noted Isaac. “The Texas legislature recently approved several incentive programs to encourage fleet managers make the transition.”
Fleet managers interested in transitioning to natural gas, or expanding their current use, should visit the TXNG website, www.txng.org, for information on the latest incentives and regulatory changes.
The Texas Natural Gas Foundation was founded to increase public awareness, support, and knowledge of the benefits of using Texas’ natural gas and its vital role in energy security, economic growth and benefits to the environment. For more information, visit www.txng.org.
Figure 1 Source: Texas Comptroller of Public Accounts