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Mayor Announces Incentives
For Alternative-Fuel Taxis

Mayor Gavin Newsom held a Dec. 14 press conference to promote the use of alternative-fuel taxis in San Francisco. He announced new financial incentives for compressed natural gas (CNG) cabs, and set an ambitious goal for clean-air cabs of 50 percent of the fleet by the end of 2007.
CNG cabs reduce carbon dioxide emissions by 30 percent compared to gasoline-powered vehicles. About 120 currently operate as taxis in San Francisco. A smaller but growing number of electric-gas hybrids are also in operation.
A total of $16,000 in incentives will be available to purchasers of CNG cabs. They include a $2,000 grant from the Department of Energy, a $2,000 rebate or zero percent financing from Ford Motor Company (for purchase of Ford Crown Victorias), $4,000 from the Bay Area Air Quality Management District (BAAQMD) and a federal tax credit of $4,000.
In addition, the environmental group Clean Energy will offer the first 100 new CNG taxis $2,500 cash back, a 25-cent-per-gallon gas rebate through 2007 and a maximum gas price of $2.399 per gallon for two years.
San Francisco International Airport currently grants once-a-shift short-line privileges for up to 140 cabs, twenty more than are currently operating. CNG cabs currently enjoy a fee waiver in the airport lot, but the waiver will only apply to a few more vehicles before it expires.
The Coalition Advocating for Smart Transportation (CAST), an alliance of groups dedicated to reducing urban pollution, will be promoting the use of hybrid cabs. Yellow, Luxor and National Cab have recently purchased a number of Ford Escape hybrids, a mini-SUV. The hybrids are eligible for a $2,000 BAAQMD grant and a federal tax credit. The Escape hybrid gets a $2,600 credit.
Drivers of hybrids report gas bills in the range of $8-10, one-third of what they were paying when driving the gas-guzzling Crown Victorias. They also enjoy diamond lane privileges on state highways.