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Getting started with compressed natural gas (CNG) for vehicles

Explore the economic benefits of using compressed natural gas

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Natural gas is one of the cleanest burning alternative fuels available. It does not contaminate lakes, rivers or groundwater as it quickly dissipates into the atmosphere if a leak or spill occurs. Compressed natural gas engines also produce less greenhouse gases, which contribute to global warming.

Benefits of using compressed natural gas

Lower fuel costs

Historically, compressed natural gas has been less expensive than gasoline and diesel. In recent years, the cost of oil has fallen. This has resulted in the price of compressed natural gas, gasoline and diesel being about the same.

Less maintenance

Natural gas doesn't contaminate engine oil like petroleum fuels.

Reduced dependence on foreign oil

Natural gas is produced domestically in the United States, reducing our dependence on foreign energy supplies.

Federal tax credits

Tax credits may be available to buyers of new, dedicated alternative fuel vehicles.

Common questions about CNG 

Natural gas has set the standard for demonstrating greater and greater emission reductions. In addition, noise emissions from compressed natural gas fuel engines are less intrusive than those from diesel engines.

Each mile driven using compressed natural gas reduces vehicle greenhouse gas emissions by 30 percent compared to gasoline cars and 25 percent compared to diesel trucks. In addition, PG&E’s stations are now being supplied with Renewable Natural Gas (RNG) through an agreement with a biomethane supplier.

Waste from dairy farms, water treatment facilities, and landfills that would normally decompose and release methane into the air is now processed into a low-carbon (or even carbon-negative) fuel to run your vehicles. You’re contributing to a cleaner air when you fuel your vehicle with RNG at one of PG&E’s fueling stations.

 

There are many different compressed natural gas fueling options within PG&E’s service territory: public retail stations, private onsite stations owned by fleet operators, "card lock" stations operated by retailers that require a proprietary card to access the dispensers, and small home refueling units installed at homes and businesses. A refueling station may be installed wherever natural gas is available.

Compressed natural gas vehicles are safe—if not safer—than any gasoline-powered vehicle. There are more than one million compressed natural gas vehicles in use around the world.

Compressed natural gas rate plans

G1-NGV rate

Available if you own or lease a compressed natural gas vehicle and have a home refueling appliance installed at your home or business.

 

This option allows you to purchase uncompressed natural gas at an optimal rate. It may lower your monthly gas bill, depending on the miles you drive and your current natural gas usage.

G-NGV1 rate

G-NGV1 rates apply to the sale of uncompressed natural gas. Customers buy the gas at this rate, and then compress it at their private station to fuel their own fleet. 

G-NGV2 rate

Purchase compressed natural gas at the G-NGV2 rate at PG&E-owned stations once you open an account.

 

To open an account, fill out PG&E's Natural Gas Fueling Card Application and Compressed Natural Gas Fueling Agreement forms and return the copies by fax, mail or email—our preferred method. 

G-NGV4 rate

For transportation of gas to customer-owned compressed natural gas stations by a third party. This is a noncore rate and the customer must have maintained an average monthly use, through a single meter, in excess of 20,800 therms during the previous twelve months.

 

Customers must procure their gas supply from a supplier other than PG&E.

GL1-NGV rate (CARE)

GL1-NGV is available for customers enrolled in the CARE program who own or lease a compressed natural gas vehicle and have a home refueling appliance installed at your home or business.

 

Ppurchase uncompressed natural gas at an optimal rate. It may lower your monthly gas bill, depending on the miles you drive and your current natural gas usage.

Annual bill credit for fueling with compressed natural gas

The Renewable Natural Gas Fuel Credit comes from California's Low Carbon Fuel Standard (LCFS) Program. LCFS is working to fight climate change by increasing the adoption of clean transportation fuels such as CNG. When you fuel your vehicle at one of PG&E's CNG fueling stations, PG&E generates LCFS credits. PG&E then returns the revenue from the sales of LCFS to its CNG customers through this annual on-bill credit.

 
PG&E's CNG stations are now being supplied with Renewable Natural Gas (RNG) through an agreement with a biomethane supplier. In addition to reduced greenhouse gas emissions from RNG, PG&E also generates extra LCFS credits and Renewable Identification Number (RIN) credits from the U.S. Environmental Protection Agency's Renewable Fuel Standard Program. Those revenues are added to the amount PG&E can return to customers via the Renewable Natural Gas Fuel Credit.

 

Claiming the Renewable Natural Gas Fuel Credit

  • You don't need to apply for this credit. Eligible customers will automatically receive it as bill credit on their PG&E compressed natural gas account.
  • To be eligible for the Renewable Natural Gas Fuel Credit, you must have an active compressed natural gas fueling account with PG&E at the time the credit is distributed.
  • Your credit amount is based on your consumption of compressed natural gas from PG&E's fueling stations.

Learn more by visiting the California Air Resources Board

The Renewable Natural Gas Fuel Credit amount varies for each customer and is based on that customer's consumption of compressed natural gas from one of PG&E's fueling stations during the Credit Period, which is the time period associated with the credit (see eligibility below).

To receive a credit, customers must have an active PG&E compressed natural gas account on the G-NGV2 rate schedule at the time of the credit distribution and have purchased compressed natural gas through this PG&E compressed natural gas account within the Credit Period.

 

The Credit Period is generally the prior calendar year – for example, the 2023 Renewable Natural Gas Fuel Credit will cover consumption from January 1 to December 31, 2022.

The first credit was issued in 2017 and has been applied annually afterwards. The credit is expected to continue through 2023 but may be modified or discontinued at any time without notice.

Companies that currently meet California Air Resources Board's (CARB) original equipment manufacture (OEM) certification standards for California:

BAF Technologies

Manufacturer of Environmental Protection Agency (EPA) and CARB certifications for Ford and GM General Motors vehicles.

Baytech Corporation

Manufacturer of EPA and CARB certified OEM and some aftermarket conversion systems Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) for General Motors vehicles.

1. To receive the credit, you must have purchased compressed natural gas (CNG) as a transportation fuel from one of PG&E's CNG fueling stations during the rebate period (generally the prior calendar year) and have an active account on the G-NGV2 rate schedule. 
 
2. PG&E anticipates that it will be issuing the Renewable Natural Gas Fuel Credit annually through 2023 or until funding is depleted. 
 
3. The next annual Renewable Natural Gas Fuel Credit will cover consumption from January 1 to December 31, 2021. Accounts that are closed at the time the credit is distributed will not receive a credit, regardless of fuel purchased during the rebate period. 
 
4. The Renewable Natural Gas Fuel Credit and its terms and conditions are subject to change. The credit can be terminated at any time by PG&E and/or the California Public Utilities Commission (CPUC).

The Low Carbon Fuel Standard (LCFS) is a State of California program administered by the California Air Resources Board. The LCFS Program is designed to reduce the carbon intensity of transportation fuels by 20 percent below 2010 levels by 2030 by encouraging adoption of cleaner fuels.

The LCFS compliance targets become more stringent over time, requiring fuels to become increasingly cleaner to meet the 2030 goal. Producers of fuels whose carbon intensities exceed the targets (e.g., electricity and compressed natural gas) generate credits. Producers with deficits can meet their LCFS compliance obligations by reducing the carbon intensity of their fuels and by purchasing credits.

For more information, visit the California Air Resources Board's Low Carbon Fuel Standard website.

Does PG&E make money from the Low Carbon Fuel Standard program?

No, PG&E returns the revenue from its credit sales, minus administrative costs of running the program, to qualified customers through the Renewable Natural Gas Fuel Credit. PG&E believes in supporting a cleaner California and voluntarily participates in the LCFS Program. By generating and selling credits from the clean electricity and compressed natural gas it dispenses and providing customer programs, PG&E supports the LCFS program and provides a benefit for its customers.

 

 

Natural Gas Vehicle Help Desk

For additional questions, call 1-800-684-4648, option 4. Or, email us at NGVinfo@pge.com.

Learn more about compressed natural gas vehicles

Alternative Fuels Data Center

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California Air Resources Board (CARB)

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Clean Vehicle Education Foundation

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