A $3.5 million grant through the U.S. Department of Transportation has been secured by the River Valley Transit Co. for its proposed compressed natural gas fueling station.

The announcement of the award came Tuesday through the office of U.S. Sen. Bob Casey, D-Scranton, who said the money is part of a Clean Fuels program to encourages communities to use funds for green energy purposes.

“This grant will create jobs and help make our transit system cleaner,” Casey said in a statement. “Natural gas has the potential to fuel economic development across the state.”

“I’d like to thank Sen. Casey for being a champion on this project,” Mayor Gabriel J. Campana said. “Once again, this stresses the importance of Marcellus Shale in Williamsport and the region. In my opinion, it solidifies the model that Williamsport is the energy capital of Pennsylvania.”

“It’s great news,” said William E. Nichols Jr., general manager of River Valley Transit and the city’s director of administration. “It will allow the city and River Valley Transit to build the infrastructure for the facility and because of this will provide tremendous benefits to the private and public sector.”

The facility, at 1500 E. Third St., is expected to be operational in May, he said.

Meanwhile, he added, River Valley Transit continues to seek partnerships with companies in the Marcellus Shale, Nichols said.

“Compressed natural gas is less costly than diesel fuel,” Nichols said.

Earlier this year, the company was notified it was awarded a $400,000 from the state for its fueling station at its garage.

The facility already provides central fueling for Williamsport’s and Lycoming County’s police, fire and emergency response vehicles as well as all buses operated by the Williamsport Area School District.

The station is expected to provide the opportunity for these fleets to transition to compressed natural gas vehicles. River Valley Transit operates its own 30-bus transit fleet and has plans to transition its entire fleet to compressed natural gas.

The project is expected to displace an estimated 45,000 gallons of fuel per year and eliminate nearly 504 tons of greenhouse gas emissions annually, according to Nichols.

The Clean Fuels program helps communities control ozone and carbon monoxide pollution while supporting emerging clean fuel and advanced propulsion technologies for transit buses, Casey stated.

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Article source: http://www.cngnow.com/News/Post.aspx?ID=525