If there were a national race among clean fuel vehicles Thursday, natural gas vehicles (NGV) would have gotten the checkered flag, shining at the opening of the Los Angeles Auto Show and winning regulatory support in New York state.

Echoing moves in other states and in Congress, The New York Public Service Commission (PSC) approved a utility-sponsored partnership for boosting NGVs in a pilot program geared to demonstrate the economic feasibility and evaluate the impact on utility infrastructure from an uptick in the use of NGVs.

Separately, the Honda Civic Natural Gas, its latest model running on compressed natural gas (CNG), was named the Green Car of the Year at the LA Auto Show. Honda boasts that the NGV Civic is “the cleanest-running internal combustion vehicle” certified by the U.S. Environmental Protection Agency (EPA).

In approving a program sponsored by the National Fuel Gas Distribution Corp., the New York PSC said it was moving to spur development of NGVs, recognizing that the economics of the overall natural gas transportation system “may be a barrier to acceptance.” State regulators indicated they hope National Fuel’s program can overcome these hurdles.

The PSC-approved $3.5 million program will provide one-time credits for refueling stations and for the purchase of NGVs. “The financial assistance would be recovered through the future sales…” a PSC spokespersons said. The program is authorized to run through March 31, 2015. National Fuel provides the customers with a one-time cost buydown in return for a transportation service contract of up to six years, and the service contract allows the recovery of the cost of the buydown.

National Fuel estimates that there are about 112,000 NGVs, mostly trucks, operating in the United States with about 30 different manufacturers producing 100 models (light, medium and heavy duty). While natural gas for the vehicles costs from a third to a half less than equivalent gallons of gasoline, the added cost of the vehicles is $7,000-22,000 compared to comparable gasoline and diesel-powered vehicles, and refueling stations can cost up to $1.5 million.

In the New York program, the estimated payback time for NGV purchasers is four to eight years, National Fuel said.

For Honda’s NGV Civic, the car-of-year award was achieved over four competitors: Ford Focus Electric, Mitsubishi i, Toyota Prius V, and Volkswagen Passat TDI. Officials with various environmental groups comprised the jury making the selection, according to a green car trade publication, Green Car Journal, whose editor, Ron Cogan, said the Civic Natural Gas was unique among vehicles in operation today.

Honda said the 2012 NGV Civic, a fifth generation natural gas-powered car, will be priced at $26,155 and sold at 200 Honda dealerships in 36 states.

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