The Railroad Commission of Texas (RRC) is touting the Texas Comptroller's recent fiscal-year 2014 report, which shows that tax revenue tied to the sale of compressed natural gas (CNG) and liquefied natural gas (LNG) for transportation was much higher than had been anticipated.
The state began collecting a tax of $0.15/gallon of CNG and LNG on Sept. 1 of last year. As of July 31, 2014, fiscal-year 2014 tax revenue on CNG/LNG totaled more than $2.1 million, which wildly outpaced the projected total.
‘These collections are more than double the estimated amount,’ said Commissioner David Porter. The state had expected CNG/LNG tax revenue of just under $1 million.
In terms of how much CNG and LNG this revenue represents? Approximately 14.5 million gallon-equivalents.
‘Natural gas vehicles are becoming mainstream faster than expected, and there's plenty of room for growth,’ Porter said. ‘These excellent sales figures represent only a fraction of potential sales, as more and more fleet operators take advantage of the cost savings, lower emissions and energy-security benefits of Texas natural gas.’
The RRC is the state regulatory agency that oversees Texas' oil and gas production, natural gas distribution, mining and other industries. The agency debuted its own campaign to help spur the use of natural gas in transportation last fall.