Tax breaks for compressed natural gas (CNG) infrastructure development offered by the state of Oklahoma appear to be working as Houston-based Apache Corp. has said it will construct two more CNG refueling stations to take advantage of the incentives.

The new stations will join one the company already has in Elk City, OK. Apache is exploring ways to coordinate its refueling program with state agencies, local governments and CNG fleet operators, according to the company.

Apache CEO G. Steven Farris said his company built its first refueling station in Oklahoma because of the incentives. The station serves more than 40 company vehicles, he told The Oklahoman newspaper. Lack of refueling stations is the biggest obstacle to expanded CNG use, he said, calling on federal lawmakers and those in other states to adopt incentives similar to those in Oklahoma.

A recently enacted law in Oklahoma extended for five years an existing tax credit to buyers of vehicles powered by CNG, liquefied natural gas or electricity. The credit is equal to 50% of the cost of conversion of a vehicle to operate on a qualified fuel, as well as those originally equipped to do so. The legislation includes a tax credit for businesses seeking to build infrastructure to fuel the vehicles, along with a $2,500 tax credit for consumers installing home-fueling stations.(see Daily GPI, June 3).

Another Oklahoma measure allows the state’s Department of Central Services to provide alternative fuel vehicle fleet services to schools and county and municipal governments, and provide public access to alternative fueling infrastructure in underserved areas. Loans of up to $300,000 from a state fleet management fund will be available for construction of alternative fueling stations. The legislation also replaces the state’s use of California Air Resources Board emission limits with emissions standards put in place by the Environmental Protection Agency, a change designed to make conversions easier and less cost-prohibitive.

“Using domestic natural gas makes sense because it creates jobs in this country, reduces greenhouse gas emissions and reduces our dependence on imported oil,” Farris said.

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