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NGVAmerica Urges Farm Bill Conferees to Extend Alternative Fuel Tax Credits

Posted on: Monday, 14 April 2008, 21:00 CDT

Today, NGVAmerica informed all the conferees on the Farm Bill (H.R. 2419) that it is absolutely critical that that bill extend the existing alternative fuel excise tax and infrastructure income tax credits.

"These credits have played a pivotal role in expanding the use of natural gas as a vehicle fuel and expanding the natural gas vehicle fueling infrastructure," said Richard Kolodziej, president of NGVAmerica. "In the past two years, the demand for natural gas as a vehicle fuel has jumped by 50 percent -- displacing 250 million gallons of petroleum in 2007. This has been the direct result of the tax credit being in place. While this is a great start, it represents less than 0.2 percent of on-road transportation fuel. The goal of the natural gas vehicle (NGV) industry is to displace 10 billion gallons by 2025 -- much of it with renewable biomethane from waste sources. But that will not be possible without the tax credits being in place."

Currently, over 60 percent of all petroleum used in the US is imported -- much of it from areas of the world that are either unstable or hostile to America's interests. Meanwhile, 97 percent of the natural gas used in America is produced in North America -- 85 percent in the US and the rest in Canada. In addition, the use of NGVs helps reduce urban pollution and greenhouse gases. A recent study done by the California Energy Commission concludes that NGVs produce 22 percent less greenhouse gases than comparable diesel vehicles and 29 percent less than gasoline vehicles.

"Increasing the use of NGVs helps achieve America's oil independence, air pollution and climate change goals simultaneously," said Kolodziej. "Extending the effective dates of the credits would send a clear message to all fleets and vehicle owners that Congress supports the continued growth and use of alternative fuels."

NGVAmerica is a national organization dedicated to the development of a growing, sustainable and profitable market for vehicles powered by natural gas or biomethane. NGVAmerica represents more than 100 companies interested in the promotion and use of natural gas and biomethane as transportation fuels, including: engine, vehicle and equipment manufacturers; fleet operators and service providers; natural gas companies; and environmental groups and government organizations. For more information about NGVAmerica, visit our website at www.ngvamerica.org.

Source: Business Wire

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