Gov. Bill Scott on Friday signed into law legislation that promotes the use of natural gas fuel for vehicles, including school buses.
The Florida Natural Gas Vehicle Act, HB 579, provides a five-year period of no taxes on compressed natural gas (CNG) and liquefied natural gas (LNG) used as a transportation fuel. After the five-year period, natural gas will be taxed at $0.21 per gallon (compared to $0.31 for diesel).
The bill eliminates existing decal and license programs for natural gas fuel, and instead requires the same licensing and taxes that now apply to diesel vendors.
The measure also will funnel $60 million during a five-year period into a new Natural Gas Fuel Vehicle Investment Program that would provide rebates for NGV purchases or conversions.
The incentives for natural gas vehicles and propane vehicles will be effective for fiscal years 2013-2014 through 2017-2018. For each year, $6 million in rebate funds will be available. The state Department of Agriculture and Consumer Services, which will administer the program, will develop all of the rebate specifics through a rule-making process that must be complete by the end of this year.
According to the bill, 60 percent of the program funding will go to private fleets, and 40 percent to government fleets. The measure defines a “fleet” as an entity that owns/leases and operates at least three vehicles of any classification.
The rebates will cover up to 50 percent of the incremental cost of a new natural gas vehicle or propane vehicle (or natural gas or propane conversion), capped at $25,000 per vehicle. The cap per entity is $250,000. Program funds will be made available on a first-come, first-served basis until that fiscal year’s allocation is exhausted.
Charlie Hood, state director of school transportation for the Florida Department of Education, said his office would inform school districts on the new bill at a special workshop June 26 at the Florida Association for Pupil Transportation Symposium in Punta Gorda, Fla. The scheduled presenter is Patrick Sheehan, head of the Energy Office at the state DACS.
Other measures, such as excise-tax exemptions for certain uses of natural gas and exemptions designed to spur the development of more refueling infrastructure, are also included in the legislation.
The measure received overwhelmingly bipartisan support among lawmakers. It passed through the state legislature with a 39-0 affirmative vote from the Senate on April 30 and a 116-2 vote in the House on May 2.
“This legislation will pave the way for the increased use of natural gas; spurring economic growth, reducing our dependency on foreign oil, and providing a cleaner burning source of fuel,” said Sen. Wilton Simpson in a statement. He helped lead the charge for the bill in his chamber.
The legislation also requires the Office of Program Policy Analysis and Government Accountability to complete a report reviewing taxation of natural gas motor fuel.
The Florida Natural Gas Vehicle Coalition, a group of 15 companies that formed the coalition last August, was cautiously optimistic about the bill being signed into law. The group last year released an Economic Impact Study showing NGV incentives could create more than 10,000 jobs, $300 million in new wages and $1 billion dollars in economic output over two decades.
