Arkansas Extends CNG Conversion Rebate Program

| USA, Arkansas

The Arkansas Energy Office (AEO), a division of the Arkansas Economic Development Commission (AEDC), hasd decided to extend the acceptance period for the Compressed Natural Gas Conversion Rebate Program reservation requests through January 31, 2012, extended from December 31. In addition to the reservation deadline, the date to complete the actual conversion or purchase has been moved to April 30, 2012. There is currently approximately $1.3 million available in the program for rebates.

“We are finding more and more Arkansans are interested in converting to or purchasing a CNG vehicle,” said Scott Hamilton, director of the Arkansas Energy Office. “Extending this deadline ensures each Arkansan interested in the program has time to apply and complete conversion. ”

Through the program, rebates of 50 percent of the conversion cost or the incremental cost of purchasing new CNG vehicles will be given directly to the vehicle owner or fleet operators following the conversion to, or purchase of, compressed natural gas vehicles. Rebate amounts depend on the cost of conversion or incremental cost of a CNG vehicle, but rebates cannot exceed $25,000. To ensure rebates are available for multiple fleets, no single entity may receive more than 20 percent of the CNG rebate fund.

The rebate program was also modified last October due to the high level of interest. Originally only available to vehicle fleets (light, medium and heavy-duty vehicles, traditional mass transit buses, and school buses). the program eligibility was expanded to include all Arkansas licensed vehicles eligible for conversion.

CNG conversion kits must be installed according to National Fire Protection Association (NFPA) standards and be certified by the Environmental Protection Agency (EPA) and must comply with EPA requirements for vehicle conversions.

The rebate program is made available through the American Recovery and Reinvestment Act (ARRA) and administered by the Arkansas Energy Office.

(This article primarily compiled using information from an Arkansas government press release)

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