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Energy Tax Extenders Bill
NGVAmerica commended Senators Max Baucus (D-MT) and Charles Grassley (R-IA) for their leadership in introducing “The Energy Independence and Investment Act of 2008.” That legislation would extend existing tax credits for:
- The purchase of natural gas used in vehicles
- The purchase of the natural gas vehicles themselves
- The installation of natural gas fueling infrastructure.
“There is a growing awareness that natural gas vehicles can and must play a greater role in displacing foreign oil,” said Richard Kolodziej, president of NGVAmerica. “These credits, which went into effect in 2005, have been critical in expanding the use of natural gas as a vehicle fuel and expanding the natural gas vehicle fueling infrastructure. 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. We can do much more much faster with these tax credits extended.”
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.”
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