Pennsylvania's Public-Private Partnership (P3) Board has approved a project seeking a private partner to develop clean-burning compressed natural gas (CNG) fueling stations at public transit agencies.

PennDOT Secretary and P3 Board Chairman Barry J. Schoch stated:

This is a tremendous opportunity for PennDOT and its transit-agency partners to team with the private sector to take advantage of the state's natural gas resources, save money and improve our environment. This is another example of the options we now have to expand or improve services because Governor Corbett signed the P3 law.

Through the project, the private partner will design, build, finance, operate and maintain CNG filling stations at up to 37 transit facilities. Each fueling site must provide access to CNG for public transit and other CNG vehicles alike.

In addition, PennDOT will enter into a CNG supply contract with the selected partner as well as purchase agreements with each of the transit agencies. PennDOT would receive a portion of the fuel sales revenue, with the money being returned to transit agencies to assist with future capital projects.

PennDOT will release a Request for Qualifications to solicit interested parties and expects to invite qualified teams to submit proposals early next year. A project team could be selected in summer 2015.

In 2013, Pennsylvania became the second-largest natural gas producing state in the USA. The abundance of low-cost natural gas has driven electric and natural gas prices down nearly 40 percent since 2008.