WASHINGTON D.C. - U.S. Congressman Dan Boren (OK-02), Democratic Caucus Chairman John Larson (CT-01), Congressman John Sullivan (OK-01), and energy executive T. Boone Pickens, announced legislation today to significantly expand the use of natural gas as a cleaner-burning, cheaper, and domestically abundant alternative to conventional transportation fuel. The New Alternative Transportation to Give Americans Solutions Act, or NAT GAS Act, would quickly reduce the nation’s dependence on foreign energy while simultaneously reducing transportation fuel costs, greenhouse gas emissions from vehicles, and urban pollution where dense vehicular fleets are prevalent.
Congressman Boren:
“This legislation can be a defining moment in the history of our nation’s energy policy. We are at a crossroads, and the decisions we make today in Congress will determine the stability of our future energy industry, our domestic supply, and the daily cost of energy for millions of consumers and businesses across the nation. 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.”
Congressman Sullivan:
“Increased use of natural gas is a key component of the comprehensive energy policy our nation so badly needs. By ushering more natural gas vehicles to the marketplace as this legislation does, we will decrease our dependence on foreign sources of oil, and put America on the path to energy security. Natural gas is not just American made energy, its Oklahoma made energy - this legislation would undoubtedly help our state as we are one of the top natural gas producers in the nation, typically accounting for almost one tenth of the total U.S. production,” said Congressman John Sullivan.
Congressman Larson:
“As long as we are exporting our dollars in exchange for oil, our economy and our national security are at the mercy of other countries. The technology to build natural gas vehicles and the fuel to power them are all American. Yet we ship our natural gas powered cars to other countries, and we export our dollars to buy oil from other countries. With this legislation we are building demand for a natural gas and developing our clean energy economy.”
T. Boone Pickens:
“I applaud Congressmen Boren, Larson, and Sullivan for introducing the NAT GAS act today. In doing so, 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. The U.S. has enough natural gas reserves to last us more than 118 years—we should turn to it as an immediate replacement for foreign oil in fleets and heavy duty vehicles. A battery can’t move an 18-wheeler—the technology isn’t there yet. Natural gas buys us a bridge to the future,” said T. Boone Pickens.
The provisions of the bill include an 18-year extension of three critical tax incentives that focus on natural gas as a transportation fuel, the purchase of natural gas-fueled vehicles (NGVs), and the installation of commercial and residential natural gas refueling pumps. Currently, the alternative fuel credit expires at the end of 2009, and the vehicle and refueling pump credits expire at the end of 2010. A long term commitment from government is critical to leveraging private capital investments in new non-petroleum initiatives. The legislation would also modify the current tax credits to provide even greater incentive for state and municipal fleet managers to buy natural gas vehicles and engines.
Another provision would create a new tax credit for auto manufacturers that produce natural gas and bi-fuel vehicles. All major auto-manufacturers currently make NGVs for overseas markets, and this incentive is critical to begin offering these vehicles in the U.S. market.
The NAT GAS Act also would require that by the end of 2014 at least 50 percent of the new vehicles purchased and placed into service by the federal government to be capable of operating on compressed or liquid natural gas.
Finally, the legislation would provide grants for light and heavy-duty natural gas vehicle and engine development. Despite the need for new, cleaner, more efficient light and heavy-duty natural gas engine technology, the Department of Energy has long ceased funding critical research and development of the technology. To meet the full market potential, this technology must be developed for light and heavy-duty vehicles, certified by the Environmental Protection Agency, and integrated into trucks and buses.
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