Southern California Gas Co. announced Tuesday it will lower the price of compressed natural gas at all 13 of its public access natural gas vehicle fueling stations by 26 cents per gallon, beginning April 1, through a California Public Utilities Commission-approved program in which revenue generated from the sale of Low Carbon Fuel Standard credits is returned to customers.
The LCFS program is administered by the California Air Resources Board and seeks to reduce greenhouse gas emissions from transportation fuels by 20 percent through 2030. Under the program, fuels that help lower GHG emissions, such as natural gas, generate LCFS credits.
“Natural gas has played a significant role in reducing greenhouse gas emissions under the LCFS program, while also reducing smog-forming emissions by over 90 percent,” said Yuri Freedman, senior director of business development at SoCalGas. “Lowering the cost of this clean fuel increases the benefits for trucking fleets and others that have switched from gasoline or diesel to natural gas.”
The average pump price at utility compressed natural gas stations was $2.37 per gallon in February, while the average cost per gallon of gasoline and diesel in California was $3.24 and $3.73, respectively, according to Energy Information Administration figures cited by SoCalGas.
The utility recently announced it will soon begin using renewable natural gas, a fuel produced from waste sources, at its fueling stations. Because of its low or even negative carbon intensity, renewable natural gas can generate additional LCFS program credits.
Renewable natural gas is produced from the methane generated in landfills, wastewater treatment plants, food processing, and dairies. It can be used to fuel trucks and buses, to generate electricity, to heat homes and businesses, and to cook.
In California, close to 70 percent of natural gas fleets are fueled with renewable natural gas, according to SoCalGas.
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