Too Much Of A Good Thing? Oklahoma Natural Gas Scales Back CNG Vehicle Rebates

Oklahoma Natural Gas, the state's largest distribution company, announced last week that it is reducing the rebates it is offering for the purchase of natural gas vehicles and home-based compressed natural gas (CNG) refueling systems, saying an ‘overwhelming response’ has emptied the program of all its funds.

Rebates were pegged at $2,500 for dedicated CNG vehicles, $1,500 for CNG bi-fuel vehicles and $2,500 for fueling systems. Applications received on or before Nov. 26 will be paid at these levels, most likely in March 2013.

But for applications received after Nov. 26, the rebate amounts are $1,000, $500 and $1,000, respectively. The Oklahoma Corporation Commission approved these changes on Oct. 29.

Oklahoma Natural Gas noted that the funding source for the program – a surcharge of $0.25 on each gallon of CNG sold at company-owned refueling facilities – could not support demand for the rebates.

The company did not announce any changes to program eligibility. Oklahoma residents and companies doing business in the state can receive up to three rebates per year for natural gas vehicles licensed for use on Oklahoma streets and highways. The rebates for CNG fueling systems are exclusively available to individuals who are installing these systems at an Oklahoma residence.

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