Ryder System said it has ordered 202 heavy-duty natural gas vehicles as part of its agreement with the San Bernardino Associated Governments (SANBAG) to launch a heavy-duty natural gas truck rental and leasing project in Southern California.

The $38.7 million project will be funded as part of a joint public/private industry partnership between the U.S. Department of Energy, the California Energy Commission and Ryder.

Ryder will begin taking delivery of the vehicles in April, and expects to have the full order integrated into its fleet by September. Ryder will also begin work this month to upgrade the first of three existing maintenance facilities in its network to be properly equipped for the indoor servicing of natural gas vehicles and will soon commence construction of two natural gas fueling stations.

The SANBAG project, awarded to Ryder in April 2010, is being conducted in partnership with the Southern California Association of Governments (SCAG) Clean Cities Coalition. It is intended to increase the use of domestically produced alternative fuels and reduce emissions by bolstering the existing regional infrastructure in Southern California.