NASEO State Project Highlights

Four Governors jointly agree to increase natural gas vehicles in state fleets

The Governor's of Colorado, Wyoming and Pennsylvania have signed a Memorandum of Understanding (MOU) with Oklahoma Gov. Mary Fallin that is designed to increase the use of natural gas vehicles in each state’s fleet.

Colorado Gov. John Hickenlooper, Wyoming Gov. Matt Mead and Pennsylvania Gov. Tom Corbett signed the MOU that calls for joint solicitation of a Multi-State Request for Proposals that aggregates annual fleet vehicle procurements. The states involved anticipate this effort will provide a demand base sufficient to support the design, manufacture and sale of functional and affordable natural gas vehicle by automotive manufacturers in the United States.

Energy Offices in the each state are involved in the effort to adopt natural gas as a component of their clean energy portfolio for transportation fuels.

"Aggregating state and local vehicle purchases is a common sense way to close the price gap between traditional and alternative fuel vehicles," Hickenlooper said. "We are happy to participate in this partnership with Gov. Mary Fallin of Oklahoma and other governors across the country. Developing markets for vehicles that run on natural gas – an abundant domestic fuel – can help reduce dependence on foreign oil, enhance air quality and showcase how states are leading by example to help tackle the complex energy challenges that our country faces."

"This MOU ensures that Oklahoma, Colorado and other like-minded states are taking the lead to support the next frontier of American-made energy: natural gas vehicles," Fallin said. "States have tens of thousands of fleet automobiles, and by asking car manufacturers to partner with us to bring an affordable NGV to market, we’re helping to develop the products and infrastructure for cleaner, more cost-effective transportation. This initiative has the potential to be a true ‘game changer’ for both the automobile industry and the energy industry. I’m proud to join Governor Hickenlooper and others in an effort that will support job creation and bolster both our national security and economic security by promoting American-made energy."

In anticipation of soliciting a Joint-RFP, the MOU says, the states involved will endeavor to coordinate with local agencies, municipalities and companies to determine the number of natural gas vehicles each state can commit to purchase and the required specifications necessary to meet fleet needs.

The Joint-RFP requires that the ultimate cost of adding natural gas vehicles to the fleet should be comparably priced to an equivalent gasoline powered model and that warranty and reliability concerns are not compromised. States will also encourage private investment to meet growing demand for natural gas vehicles and pursue continued development and expansion of a natural gas fueling infrastructure.
 
The MOU says future vehicle acquisitions should, when economically feasible, rely on traditional distribution channels that incorporate local businesses in procurement processes. No date has been determined for when the Joint-RFP will be executed.

"Natural gas has created tens of thousands of jobs in Pennsylvania and can create hundreds of thousands more in this country once we’ve developed the right infrastructure," Corbett said. "I am pleased to work with Governors Hickenlooper, Fallin and Mead to improve our nation’s energy security."