The Car and Truck Fleet and Leasing Management Magazine

Natural Gas Vehicle Event Set for Washington

April 13, 2011

WASHINGTON - NGVAmerica, an industry group promoting the use of natural gas vehicles, is sponsoring an NGV display event on April 13, from 8:30 a.m. to noon, just a few blocks from the Capitol building. 

The event will be held in front of the National Museum of the American Indian. A variety of natural gas-fueled vehicles will be on display, and T. Boone Pickens is set to speak. 

NGVAmerica is currently lobbying for the passage of a new bill (H.R. 1380) aimed at providing incentives for the use of natural gas as a vehicle fuel, for the purchase of natural gas-fueled vehicles, and for the installation of natural gas vehicle refueling property. Each of these incentives would be in place for five years. The bill was introduced in the House of Representatives on April 6. 

Richard Kolodziej, president of NGVAmerica, said the five-year horizon is critical in encouraging fleets to switch to natural gas because it creates stability in the market and assurance for fleet owners as they consider purchasing decisions. 

The sponsors of H.R. 1380 have recognized the impact such legislation can have on air quality, Kolodziej said. "When used as a transportation fuel, natural gas can reduce greenhouse gas emissions by 20-29 percent compared with diesel and gasoline fueled vehicles," he added. 

Among the bill's provisions:

-- A tax credit for up to 80 percent of the incremental cost of buying a natural gas vehicle, with a maximum value ranging from $7,500 for a light-duty passenger vehicle to $64,000 for the heaviest trucks. There are incentives for both bi-fuel vehicles and dual-fueled vehicles. There are no vehicle tax credits in place today.

-- A 50-cent per gallon fuel tax credit that is in place in 2011.

-- An infrastructure tax credit of 50 percent of the cost, up to a maximum tax credit of $100,000 per station. For stations built in 2011, there is an existing infrastructure tax credit of 30 percent with a maximum credit of $30,000. This credit would also extend to home refueling units, where purchases would be eligible for a $2,000 tax credit.

-- A manufacturer tax credit for the production of natural gas vehicles. 

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