The Car and Truck Fleet and Leasing Management Magazine

Clean Energy and NGVAmerica Urge Alt-Fuel Tax Credits Extension

April 18, 2008

WASHINGTON, D.C. – Both Clean Energy Corp. and NGVAmerica are urging House and Senate conferees on the Farm Bill (H.R. 2419) to extend the existing alternative-fuel excise tax and infrastructure income tax credits.

"These credits have promoted sound transportation fueling policy in the United States by expanding the use of natural gas as a vehicle fuel and expanding the natural gas vehicle fueling infrastructure to support a greater number of vehicles and fleets," said Andrew Littlefair, president and CEO of Seal Beach, Calif.-based Clean Energy.

"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," said Richard Kolodziej, president of NGVAmerica. "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, more than 60 percent of all petroleum used in the United States 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 United States and the rest in Canada. In addition, the use of NGVs helps reduce urban pollution and greenhouse gases.

"Increasing the use of NGVs helps achieve America's oil independence, air pollution and climate change goals simultaneously," Kolodziej said. "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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