Is Mississippi Reaping Economic Impact of NGVs and CNG?

The University of Texas at San Antonio (UTSA) Institute for Economic Development recently released a study showing that in 2014, Texas grants to support natural gas programs generated $128 million in economic impact, $79.1 million in gross state product and supported 927 full-time jobs. These grants, which cost $53 million, generated that impact by supporting the construction of new natural gas fueling stations and the adoption of natural gas vehicles.

UTSA economists predict that by 2018, the impact of these Texas grant programs will skyrocket, generating $484 million in total economic impact, $302 million in gross state product, and 3,076 full-time jobs.

Meanwhile, the Arkansas Energy Office recently announced it is reopening a gaseous fuels rebate program with more than $1.3 million in rebates. Its objectives are to develop the state’s refueling infrastructure for alternative fuel vehicles; provide incentives to purchase alternative fuel vehicles or convert vehicles; reduce motor vehicle emissions; and improve the state’s air quality.

A 2012 study by Mississippi’s State Economist concluded that the adoption of NGV friendly laws would actually result in increased state tax revenues to our state.

Rich Kolodziej, former president of NGV America, said that states whose energy plans have a three-pronged approach have seen faster growth in the number of natural gas vehicles (NGVs) and compressed natural gas (CNG) fueling infrastructure. “NGV market penetration increases when states provide financial and regulatory incentives and act as a market participant. Incentives range from grant programs, to supporting the gallon gas equivalent standard of measurement, to giving priority to NGV purchases on state contracts.”

Ultimately, as the transition to NGVs expands, consumers will benefit.

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