On April 1st a new Bill was introduced for the consideration of the US Congress by a bi-partisan group of Representatives, H.R. 1835, that aims to encourage alternative energy investments and job creation. The bill contains measures that offer strong support for development and growth of the natural gas vehicle (NGV) industry and natural gas fuel supply, thereby reducing dependency on foreign oil and improving environmental outcomes. NGVAmerica President, Rich Kolodziej, describes the bill as his organization’s top legislative priority.
The bill, which was introduced with 13 co-sponsors, seeks to accelerate the production and use of natural gas-fueled vehicles. Specifically the bill:
- Extends until 2027 the alternative fuel credits for natural gas used as a vehicle fuel, the purchase of natural gas-fueled vehicle, and the installation of natural gas vehicle refueling property
- Makes all new dedicated natural gas-fueled vehicles eligible for a credit equal to 80 percent of the vehicle’s incremental cost.
- For the first time, makes all new bi-fuel natural gas-fueled vehicles eligible for a credit equal to 50 percent of the vehicle’s incremental cost
- Increases the allowable incremental cost limits of natural gas vehicles. For light-duty vehicle, the purchase tax credit cap would be increased by 150 percent to $12,500. For all other vehicle weight classes, the purchase tax credit cap would be doubled.
- Increases the refueling property tax credit from 50% or $50,000 to $100,000 per station
- Allows the vehicle and infrastructure tax credits to count against the AMT provisions and makes them transferable
- Creates a new tax credit for OEMs that produce dedicated and bi-fuel NGVs I the US
- Requires that no later than 12/31/2014 at least 50 percent of the new vehicles purchased and placed into service by the federal government must be capable of operating on CNG or LNG
- Provides for grants for light- and heavy-duty natural gas vehicle and engine development.
“With natural gas vehicles, we have a real opportunity to establish a cleaner, cheaper fuel alternative that will provide an independent energy future for America,” said Rep Boren. Boone Pickens commended the Congressmen for introducing the NAT GAS Act and said that “they’re showing that a bi-partisan approach to energy policy is not only possible, but do-able. America’s national and economic security depends on moving off foreign oil as quickly as possible. Natural gas is the cleanest, most abundant, most economical domestic fuel to replace imported diesel.”
Provisions of the New Alternative Transportation to Give Americans Solutions Act, or NAT GAS Act (H.R. 1835) include:
TITLE I–PROMOTE THE PURCHASE AND USE OF NGVS WITH AN EMPHASIS ON HEAVY DUTY VEHICLES AND FLEET VEHICLES
Sec. 101. Modification of alternative fuel credit.
Sec. 102. Extension and modification of alternative fuel vehicle credit.
Sec. 103. Allowance of vehicle and infrastructure credits against regular and minimum tax and transferability of credits.
Sec. 104. Modification of credit for purchase of vehicles fueled by natural gas or liquified natural gas.
Sec. 105. Modification of definition of new qualified alternative fuel motor vehicle.
TITLE II–PROMOTE PRODUCTION OF NGVS BY ORIGINAL EQUIPMENT MANUFACTURERS
Sec. 201. Credit for producing vehicles fueled by natural gas or liquified natural gas.
TITLE III–TO INCENTIVIZE THE INSTALLATION OF NATURAL GAS FUEL PUMPS AT SERVICE STATIONS AND DEPOTS AND DOMESTIC LNG PRODUCTION FACILITIES FOR SMALL ENERGY PRODUCERS
Sec. 301. Extension and modification of alternative fuel vehicle refueling property credit.
Sec. 302. Increase in credit for certain alternative fuel vehicle refueling properties.
TITLE IV–NATURAL GAS VEHICLES
Sec. 401. Natural gas vehicles in Federal fleet – Not later than December 31, 2014, and thereafter, at least 50 percent of all new vehicles purchased or placed into service by the United States Government shall be vehicles that are capable of operating on compressed or liquefied natural gas.
Sec. 402. Grants for natural gas vehicles research and development – In General- The Secretary of Energy may make grants to original equipment manufacturers of light duty and heavy duty natural gas vehicles for the development of engines that reduce emissions, improve performance and efficiency, and lower cost.
The next meeting of the Senate is Apr 20, 2009; the House next meets Apr 21, 2009.
Print 
PDF 