Borough gets $3.1 million federal grant for natural gas buses

The Fairbanks North Star Borough received $3.1 million in federal funding to purchase additional compressed natural gas (CNG) buses, according to the borough mayor’s office.

For the last few years, the borough has moved forward with replacing the 12 buses used by its Metropolitan Area Commuter System (MACS) Transit System. It purchased two CNG buses that went into use in May of this year, months after taking ownership of them.

“Transitioning our remaining diesel fleet to CNG will help lower operating costs, reduce dependence on diesel and improve air quality for Fairbanks-area residents,” said Michelle Denton, the borough’s transportation director, in a statement. “This is particularly important to the borough because our cold climate regularly faces winter air pollution challenges.”

The borough also built its new transportation center on Tesoro Road with a CNG refueling station in mind. The borough cut the ribbon on the completed facility in June 2024 but couldn’t start using it until March, when the Federal Transit Administration signed off on all requirements.

Nearly 20 years ago, the borough purchased most of its buses at once.

The Assembly approved plans to order additional CNG buses in January. The federal grant will allow the borough to push forward on additional orders down the road.

The federal grant requires a 20% match from the borough.

The first two buses and the refueling station at Tesoro Avenue were funded through a grant awarded by Fairbanks Area Surface Transportaion (FAST) Planning. FAST Planning made a similar investment for a CNG refueling station and three for the University of Alaska Fairbanks Troth Yeddha’ campus.

“These efforts not only help improve air quality, but also strengthen partnerships among our local transit agencies,” said Jackson Fox, FAST Planning’s executive director.

According to Borough Mayor Grier Hopkins’ office, investing in additional CNG buses “strengthens the borough’s strategy to modernize its fleet and reduce emissions while ensuring reliable, cost-effective transit service for the community.”

In a statement, Hopkins noted the buses are more effective than diesel-powered vehicles in sub-arctic climates.