LITTLE ROCK — North Little Rock aldermen fell into lock step Monday behind a proposal for the city to build and operate a compressed natural gas fueling station business that Mayor Patrick Hays said isn’t intended to do more than break even.
In three separate votes to accept $500,000 in grants to build the station, aldermen voted 8-0 each time. The city will cover the remainder of the $602,812 cost.
The station will be on the southwest corner of Curtis Sykes Drive and Olive Street. The City Council approved $32,750 last month to purchase four parcels of land for the station.
Compressed natural gas, or CNG, is a fuel that is cleaner-burning and less expensive than oil-based fuels, and is in abundant supply in the United States.
No figures were available on the potential number of vehicles that might use of the station, which Hays said he wants up and running by Jan. 1. North Little Rock is converting three city trucks to compressed natural gas.
North Little Rock’s station will be the only public compressed natural gas station in central Arkansas. It will be a 24-hour, fast-fill service station which will operate much like a selfserve gasoline station.
“I think this is an opportunity for us,” Hays said. “This is very much an American opportunity.”
There are 110,000 natural gas vehicles in the United States and 1,100 natural gas filling stations, according to Natural Gas Vehicles for America, a national organization that promotes alternative fuels. Less than half of such stations are available to the public, according to the group.
Hays presented no business plan, as pledged last month, outlining expected usage or projections of operating costs or revenue. He said those details would come later.
A map of compressed natural gas stations scattered throughout other states helped win the council’s support.
Alderman Jimmy Phillips said he knew of vehicle fleets in the South that used compressed natural gas but a drawback was that too few stations are available for those vehicles to drive any distance. Alderman Debi Ross said a compressed natural gas station in North Little Rock would make the city “a major stop” for such vehicles.
However, Hays told aldermen that making a profit wouldn’t be a part of his proposal. “My intent will be to cover expenses,” Hays said. “I certainly don’t intend to lose any money.
“I would not intend to run it as a business,” Hays said. “It’s more of an investment and a service to the community.”
Hays said last week he doesn’t intend to staff the station or have on-site security, only daily maintenance and police patrols provided by the city.
The Arkansas Agriculture Department is providing a $300,000 grant, and Chesapeake Energy Corp. and Southwestern Energy Co. are providing grants of $100,000 each.
The state grant comes from the Arkansas Alternative Fuels Development Fund, according to Zachary Taylor, director of marketing for the Agriculture Department.
“This is the first natural gas project in it,” Taylor said. “North Little Rock will be a flagship for our program in natural gas.”
Last year, Hays formed a coalition of several private and public vehicle fleets, including Pulaski County and Little Rock governments, to gauge how many might convert to compressed natural gas and equally share in such a project. The attempt fell apart when others wouldn’t agree to share a required $5 million match if federal funding for an alternative fuel project was achieved.
Central Arkansas Transit Authority directors then voted 8-3 last summer against Hays’ proposal for CATA to invest $1.7 million for a station as a prelude to convert part of its bus fleet to compressed natural gas.
Arkansas, Pages 7 on 07/27/2010