09-08-2008
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Administrator
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Join Date: Feb 2008
Posts: 69
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Natural Gas Vehicle Tax Incentives
Two US House Democrats said on July 22 that they plan to introduce legislation that would provide incentives for consumers to buy natural gas vehicles, automakers to manufacture NGVs, and retailers to install refueling systems.
| The array of incentives would establish a framework to increase the percentage of NGVs to 10% of the total US fleet, Reps. Rahm Emanuel (Ill.) and Dan Boren (Okla.) said in a joint announcement. The bill would formally be known as the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act.
| "This proposal is a hat trick for America: It's good for our environment, good for our national security and good for families," said Emanuel, who chairs the House Democratic Caucus. "Our addiction to oil has only gotten worse, and drivers are suffering each time they fill up their tank. Encouraging the use of natural gas will help end our dependence on foreign oil and save money for families across the country."
| Using the nation's vast natural gas resources for more vehicles would have a positive and sweeping impact on the US energy and economic future, according to Boren, who is a member of the Financial Services and Natural Resources committees.
| "Coming from a producing state, I believe this legislation will spur economic growth and job creation," Boren said. "Most importantly, it will increase the nation's energy independence while providing hard-working Americans with a cheaper, cleaner alternative to the rising cost of gasoline. There are also provisions that greatly encourage market development so that current and future NGV owners have more locations that serve their vehicles," he said.
| Specific provisions
The legislation's specific provisions would include a $90,000 tax credit for retailers to install NGV refueling systems, $2.6 billion in bonding authority for states providing low-interest or no-interest loans to retailers installing such systems, and a requirement for retail outlets owned by major oil companies to install at least one NGV refueling pump at each site by 2018.
| The bill also would include tax credits for consumers to buy NGVs or convert vehicles they already own to natural gas, and to buy NGV refueling devices which connect to their homes' natural gas lines, the two lawmakers said. It also would create a production tax credit to encourage automakers to manufacture NGVs in the US and provide $5 billion in bonding authority to encourage US automakers to retool their plants for NGV production, they indicated.
| US automakers have the technology to produce NGVs, Emanuel and Boren said. General Motors currently makes four different NGV models in Europe and Asia, and GM and Ford Motor Co. previously manufactured NGVs for sale in the US, they said.
| They said that the NAT GAS Act also would create jobs and help offset declines in the sport utility vehicle and light truck market. Estimates indicate that increased demand for natural gas-powered vehicles and more natural gas production could create 500,000 US energy industry jobs, Emanuel and Boren said.
| Contact Nick Snow at nicks@pennwell.com.
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