Central to the proposed bill is a gaseous fuel vehicle conversion program, covering vehicles that run on compressed natural gas (CNG), liquefied natural gas (LNG) or propane autogas. Through the program, the state would offer grants to public fleets - namely, state and municipal entities, school districts and public transportation agencies - as well as nonprofit corporations.
These grants would cover 100% of the cost of CNG, LNG or propane vehicle conversions, or 100% of the incremental cost of buying an OEM natural gas or propane vehicle.
Should the bill be enacted, the specific eligibility requirements would need to be specified. But the bill does note that the cap on these grants would be $500,000 per "eligible entity." And O'Brien's office tells NGT News that the grant program overall would be capped at $16 million annually.
For private business fleets and individuals, the bill would enact tax credits for alternative fuel vehicle purchases or conversions. Like the public fleet grant program, these tax incentive would cover CNG, LNG or propane vehicles - both dedicated and bi-fuel models.
The credits for private fleets and consumers would be equal to 50% of the incremental cost of acquiring an alt-fuel vehicle from an OEM, or 50% of the vehicle conversion cost. The legislation does include per-vehicle caps on the tax incentives: For vehicles 8,500 lbs. GVWR or less, $5,000; for medium-duty vehicles 8,500 lbs. to 10,000 lbs. GVWR, $10,000; and for medium- and heavy-duty vehicles that come in at more than 10,000 lbs. GVWR, $25,000.
The bill specifies that the grant and tax-credit programs be phased out after a five-year period. This measure, says Clean Fuels Ohio Executive Director Sam Spofforth, was particularly helpful in attaining the immense co-sponsorship for the O'Brien/Hall bill - some 61 fellow House members, along bipartisan lines, O'Brien's office confirms. Read more here.
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