Ohio City Signs CNG Fueling Contract with Refuse Hauler
The Hamilton Department of Public Utilities, in Hamilton, Ohio, has signed a letter of intent with its first contract CNG customer at the recently opened city-owned public CNG Fueling Station. The City determined Rumpke, the area’s residential and commercial trash collector that also operates a fleet of CNG trucks, would be a good partner for contracting with the City on CNG purchases.
The City has a number of CNG vehicles in its current fleet of vehicles, and is planning to purchase or convert a number of additional CNG vehicles in the near future. However, in order to make the CNG fueling station truly viable, the City needed to bring in additional outside CNG vehicles, either through securing fleet operators or other private vehicles.
Based on negotiations, Rumpke will receive a discounted rate on its purchase of CNG at the Hamilton fueling station. This discount equals 10 percent to 25 percent off the standard CNG price, which is currently $1.99 per GGE, based upon the volume of CNG that Rumpke uses in a month.
Under the terms of the proposed agreement, Rumpke will be required to use a minimum of over 2,600 GGE per month. Additionally, the proposed agreement with Rumpke is for one year, with the option of the parties to extend beyond.
The station, which is now open to the public, is located adjacent to the Hamilton Municipal Garage property. The fueling station was jointly funded by the City and a Congestion Mitigation and Air Quality (CMAQ) grant, awarded to the City by the Ohio-Kentucky-Indiana (OKI) Regional Council of Governments.