Energy Bill moves country in the right direction – to natural gas vehicles

WASHINGTON, DC -- Senator Majority Leader Harry Reid’s proposed Energy Bill will help move the country off its addiction to oil by accelerating the introduction and use of natural gas vehicles, according to the president of NGVAmerica.

The bill would offer up to $3.8 billion in rebates to buyers of natural gas-powered vehicles, from passenger cars to 18-wheelers.

“We applaud Senator Reid’s leadership in recognizing the important role that natural gas can play as a transportation fuel,” Richard Kolodziej said today after Sen. Reid released a draft summary of the proposed legislation. “Study after study shows that this country has tremendous natural gas resources. Using natural gas as a transportation fuel increases energy security, creates jobs, provides cleaner air and reduces greenhouse gas emissions.”

The proposed legislation would establish a Natural Gas Vehicle and Infrastructure Development Program within the Department of Energy. In addition to the rebates, the bill would provide grants for infrastructure development and research and development projects and would establish a loan program to enhance domestic manufacturing of natural gas vehicles and components.

“One of the most creative parts of this legislation is that it provides a loan program to build more facilities in the United States to produce both natural gas vehicles and their components,” says Kolodziej. “And that means more U.S. jobs. It will support the United States in leading the way in natural gas vehicle technology.”

Natural gas vehicles are available today in the United States in all three categories of vehicles – light, medium and heavy duty. The market is growing and more original equipment manufacturers have entered the market. However, natural gas models are still limited, Kolodziej said.

“The proposed incentives will encourage even more individual consumers and fleets to switch to natural gas vehicles. And we expect this to spur manufacturers to produce even more natural gas models,” said Kolodziej.

While the light- and medium-duty vehicles run on compressed natural gas, heavy-duty vehicles run on both compressed natural gas or liquefied natural gas.