Natural gas fuels such as compressed natural gas, liquefied natural gas, and liquefied petroleum gas are increasingly being used to operate motor vehicles in Florida. From 2012 to 2016, Florida's consumption of natural gas as a motor fuel increased 326% and the state is now 15th in the nation in the use of natural gas motor fuel. Most natural gas fuel suppliers and consumers expect the industry to grow, given favorable fuel prices. However, these stakeholders are concerned about the limited number of refueling stations in Florida and the cost to convert vehicles to operate on natural gas fuel.
Florida does not currently tax natural gas fuels. Other states do tax these fuels; however, it is difficult to compare tax rates across states because states do not uniformly adopt national measurement standards.
Some states, including Florida, offer incentives to consumers for the use of natural gas fuel. Florida offers businesses rebates to convert vehicles to natural gas or to purchase vehicles operating on natural gas. Incentives offered by other states include loans, reduced fees, and other benefits for operating natural gas fuel vehicles.

Natural Gas Rebate Recipients Are Satisfied; Improved Economic Benefits Data Is Needed
Report 15-09 November 2015

Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.