The city will use $1 million in federal funding to pay back cab companies for making the switch. That money comes from the Clean Citys Grant that was provided through the American Recovery and Reinvestment Act.
Under the program, cab companies will be reimbursed $2,000 for the purchase of a hybrid taxi cab. The companies will get between $9,000 and $14,000 for converting cars to use compressed natural gas or propane power.
Mayor Daley said this program will help reduce carbon emissions in the city.
This program helps the taxi industry purchase cost effective hybrid, alternative fuel vehicles, help the city move closer to reaching carbon emission goals and proved passengers with trips in modernly sustainable vehicles, Daley said.
This program is an incentive for cab companies to invest in more environmentally friendly cars. Norma Reyes, Commissioner of the Department of business Affairs and Consumer Protection, said the program will reduce the taxi industrys carbon footprint and provide other benefits.
Alternative fuel and hybrid taxis provide numerous benefits, including lowering fuel costs for drivers and improved air quality. With the current high costs of gasoline the benefits will absolutely be felt at the pump, Reyes said.