NGVAmerica News Week in Review: January 11, 2016

• NGVAmerica Highlights Achievements in 2015 Annual Report
• New Year Rings in Changes for CNG and LNG in 2016
• Southern California City Requesting Proposals for Station Upgrade
• Kenworth Relocates South Boston Dealership to Natural Gas-Ready Facility
• Utah Transit Authority Opens New CNG Transit Bus Fueling Facility
• ROUSH CleanTech Joins NGVAmerica for 2016
• U.S. Gain to Open Fifth CNG Station for Core-Mark in Florida
• Clean Transportation Leaders to Meet at Energy Independence Summit 2016

NGVAmerica Highlights Achievements in 2015 Annual Report

January 11, 2016

NGVAmerica has released its 2015 Annual Report, marking a new tradition of describing how NGVAmerica is leading on initiatives to grow the natural gas vehicle industry and helping its members accomplish their business goals.

While it was a difficult year in the marketplace due to energy prices, the 2015 Annual Report shows how NGVAmerica accelerated efforts to advance the industry. Several crucial policy wins were achieved in the Congress and state capitols, and NGVAmerica also took on new efforts to advance critical safety and technology issues and strengthened programs to communicate the strong value of natural gas as a transportation fuel.

In 2016, NGVAmerica’s State Advocacy Committee is already busy with new pro-NGV initiatives in more than 15 states.  The Federal team will be involved in key tax reform discussions that could result in new long-term incentives this year.  And the new Technology & Development Committee is working to streamline maintenance facility requirements, open a dialogue over fuel quality, and address other critical safety matters.

To view a full copy of NGVAmerica’s 2015 Annual Report, click here.

New Year Rings in Changes for CNG and LNG in 2016

January 11, 2016

The New Year brings several important tax changes affecting the use of natural gas as a transportation fuel.  Most notably, there is the favorable change in treatment of LNG that will see the federal excise tax rate go from 24.3 cents per LNG gallon to 24.3 cents per diesel gallon equivalent (DGE), a reduction of more than 17 cents since the LNG rate previously was effectively 41 cents per DGE.  The new LNG rate is effective January 1, 2016 per Public Law 114-41 (HR 3236).  Congress enacted this change back in July as part of the short term highway funding bill.  The same bill also amended the CNG tax to specify that a gasoline gallon equivalent (GGE) of CNG means 5.66 pounds of natural gas; the IRS previously imposed the CNG rate of 18.3 cents based on a GGE of 126.67 cubic feet. The change was supported by retailers who had wanted the tax unit to align with the GGE unit used by the National Conference on Weights and Measures.

In 2016, taxpayers also will benefit from the extension of the 50 cent fuel credit for CNG and LNG, and the extension of the tax credit for natural gas refueling property.  Congress extended the incentives on December 18 as part of the Consolidated Appropriations Act, 2016 (PL 114-113, HR 2029).  Both incentives also are retroactively available for 2015, so taxpayers who sold CNG or LNG, or installed new fueling equipment in 2015 will be able to claim the credits.

The fuel credit for CNG and LNG remains unchanged for 2015 and is 50 cents per GGE of CNG and per liquid gallon of LNG.  However, the LNG fuel credit starting on January 1, 2016 changes to 50 cents per DGE so that it aligns with the unit used for taxing LNG.  The infrastructure credit is 30 percent or $30,000 in the case of business property or $1,000 in the case of fueling property that is installed by a home owner for personal use.

The IRS has yet to release guidance or revised forms detailing these changes.  However, NGVAmerica expects the IRS to release updates before the end of January.  The key forms will include Form 720 Quarterly Federal Excise Tax Return, Form 8911 Alternative Fuel Vehicle Refueling Property Credit, and Form 8849 Claim for Refund of Excise Taxes, Schedule 3 Certain Fuel Mixtures and Alternative Fuel Credit.  As has been the practice in past years, the IRS is expected to issue guidance instructing that all 2015 fuel credit claims be filed as part of a one-time filing due sometime in the summer of 2016.

More information about these incentives will soon be available on the updated sections of the NGVAmerica website.

Southern California City Requesting Proposals for Station Upgrade

January 11, 2016

The City of San Fernando Public Works Department is requesting written proposals for CNG fueling station upgrades at a fueling facility located in San Fernando, California. Project will include the design, engineering, fabrication, installation, commissioning, testing and training associated with the CNG station equipment upgrades.  This project is financed in part with Federal funds and requires compliance with applicable laws and regulations.

A copy of the RFP and all related documents are located on the City’s website here.

Kenworth Relocates South Boston Dealership to Natural Gas-Ready Facility

January 11, 2016

Kenworth Northeast Group has relocated its South Boston dealership to a newly renovated 40,000 sq. ft. facility that’s in Brockton, Massachusetts, an area 25 miles south of Boston and 10 miles south of its former location in Stoughton. The new facility features a service area that can accommodate up to 30 trucks, and has 3,000 sq. ft. of additional space to service natural gas-powered trucks. Kenworth Northeast Group is one of 25 Kenworth dealers that have invested more than $1 million in facility improvements in 2015.

“The recent grand opening of our new Brockton location was a huge success,” said Dennis Dintino, dealer principal of Kenworth Northeast Group. “A number of companies, municipalities and government agencies have converted their fleets from diesel to natural gas to help reduce their carbon emissions.”

Kenworth Northeast Group – Boston is part of a group of six dealerships in Massachusetts and New York and the Kenworth Dealer network of more than 360 locations in the U.S. and Canada.

Utah Transit Authority Opens New CNG Transit Bus Fueling Facility

January 11, 2016

As part of its mission to improve air quality, the Utah Transit Authority (UTA) has opened a new CNG fueling facility for its expanding fleet of CNG buses. The CNG bus fueling facility and its buses are part of UTA’s continuing effort to improve air quality along the Wasatch Front. Today, UTA has 47 CNG buses at its Central Bus Division and plans to add dozens more CNG buses by the end of 2016. UTA is in the process of replacing all of its older diesel buses with CNG buses as they retire from service.

The CNG bus fueling facility has two bays for CNG fueling and can fuel up to 250 CNG buses. CNG fueling started Dec. 7 and the building will be fully utilized after construction is complete by late 2016. Much of the funding used to build the facility and compressor station comes from federal grant funding. The project is the first phase of a UTA effort to expand and modernize its 50-year-old downtown bus facility to support increased bus service.

ROUSH CleanTech Joins NGVAmerica for 2016

January 11, 2016

ROUSH CleanTech, an industry leader in alternative fuel vehicle technology, has joined NGVAmerica as a member for 2016. Based in Livonia, Michigan, ROUSH CleanTech designs, engineers, manufactures and installs propane autogas fuel system technology for light- and medium-duty Ford commercial vehicles, and Type A and Type C Blue Bird school buses. ROUSH is also a Ford Qualified Vehicle Modifier-certified alternative fuel vehicle manufacturer, and the Environmental Protection Agency and the California Air Resources Board certify all ROUSH CleanTech alternative fuel systems. In 2016, ROUSH launched its first CNG fuel system for the Blue Bird Vision Type C school buses.

“We are excited to join NGV America and be a part of their collective push to make natural gas more mainstream as a transportation fuel,” said Todd Mouw, ROUSH CleanTech’s Vice President of Sales and Marketing. “Our first CNG product with Blue-Bird on their Type C Vision is already drawing significant interest from school districts and contractors around the nation.”

Founded in 2010 with six employees, ROUSH now employs more than 90 people and has deployed almost 9,000 Ford trucks and vans and Blue Bird school buses with alternative fuel systems. Its customers include private fleets such as Alpha Baking, Asplundh Tree Expert, Nestle Waters, Frito-Lay, Sears, SuperShuttle, ThyssenKrupp Elevator and U-Haul, as well as numerous transit authorities and school districts.

For more information, visit ROUSH CleanTech’s website at www.roushcleantech.com.

U.S. Gain to Open Fifth CNG Station for Core-Mark in Florida

January 8, 2016

Core-Mark is celebrating the grand opening of the new GAIN Clean Fuel CNG station that will fuel its fleet of natural gas trucks.  The station, located in Tampa, Florida, was built through a partnership with U.S. Gain, a division of U.S. Venture, which owns and operates the GAIN Clean Fuel brand. It is the last of five stations to go into operation under this partnership.

“CNG advances our commitment to becoming more environmentally friendly through improved sustainable business practices,” said Core-Mark Florida Division President Jason Nevin. “Utilizing GAIN Clean Fuel is key to that success.”

Core-Mark’s commitment to a CNG program began with an initial conversion of its fleet. Today, there are 210 Core-Mark CNG tractors on the road with more planned in the future. In addition to working with the partner carrier to understand the cost and emissions benefits, U.S. Gain works jointly with its partner carriers to site GAIN Clean Fuel Stations in strategic locations. The other four stations in operation through this partnership are located in Sanford, North Carolina; Smyrna, Georgia; Aurora, Colorado; and Forrest City, Arkansas.

“Projects like these show how great partnerships can succeed when working toward a common outcome that benefits so many,” said Tampa Bay Clean Cities coordinator Stephen Reich. “In addition to the many benefits of CNG, fewer emissions are produced which is good for the environment and for all of us.”

Clean Transportation Leaders to Meet at Energy Independence Summit 2016

January 11, 2016

The nation’s Clean Cities coalitions and transportation energy industry leaders will meet in Washington, DC on February 7–10 for Energy Independence Summit 2016. Organized by Transportation Energy Partners, the clean transportation policy conference provides an opportunity for Clean Cities Coalitions and leaders in the clean transportation industry to network and build partnerships with each other and with key Congressional and Administration policymakers in Washington, DC.

This year’s Summit will celebrate several recent federal policy victories, including increased funding for the DOE Clean Cities program and the EPA Diesel Emission Reduction grants, extension of the various tax incentives for alternative fuels through the end of 2016, the recent EPA announcement of the Renewable Fuel Standard, and the recent signing of the transportation reauthorization law. Each year at the Summit, Clean Cities coalition leaders and their industry partners come to Washington, DC to educate our policy makers about the critical importance of federal policies that advance markets for alternative fuels and vehicles.

For more information and to register for Energy Independence Summit 2016, go to the Transportation Energy Partners website.