State Natural Gas Act of 2012 - Amends the Natural Gas Act to require the Secretary of Energy (DOE) to make grants available to states to independently carry out initiatives to promote the following purposes: (1) the use of natural gas as a transportation fuel, and (2) investment in natural gas vehicles and transportation infrastructure.
Establishes $1 million as the minimum grant amount to a state.
Requires the Secretary to increase the grant amount above the minimum to reflect the potential of applications and plans to promote the purposes of this Act, taking into consideration: (1) the relative amount of funds likely to be leveraged by initiatives described in the state plan, (2) the degree that initiatives will support a need unlikely to be met by the private sector absent program funding, (3) the degree that initiatives will be a bridge to private investment and sustainable market conditions, and (4) the amount of funds invested in public and private investment in states in natural gas transportation and infrastructure.
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