LITTLE ROCK — The Arkansas Energy Office announced the launch of the Compressed Natural Gas Conversion Rebate Program on Friday morning.
The AEO, a division of the Arkansas Economic Development Commission (AEDC), announced in a release that the new program provides "an incentive for fleets to purchase and/or convert their Arkansas-licensed vehicles to compressed natural gas (CNG).
Approximately $2.2 million will be made available through the American Recovery and Reinvestment Act and administered by the Arkansas Energy Office.
Rebates of 50 percent of the conversion cost or the incremental cost of the purchasing new CNG vehicles would be given directly to fleet operators following the conversion to, or purchase of, compressed natural gas vehicles through the program. Rebate amounts will depend on the cost of the conversion or incremental cost of a CNG vehicle, but rebates can't exceed $25,000.
To ensure rebates are available for multiple fleets, no single entity may receive more than 20 percent of the CNG rebate fund.