Climate legislation will benefit natural gas vehicles

If passed, the American Power Act will include provisions to support the production and purchase of natural gas vehicles

If the American climate change legislation passes, we may see more natural gas vehicles on the road. Sens. John Kerry, D-MA and Joe Lieberman, I-CT included a provision in the American Power Act to support the increased production and purchase of vehicles powered by natural gas.


"Natural gas is the cleanest burning alternative transportation fuel commercially available today and can reduce greenhouse gases emissions by almost 30 percent.

We are very encouraged to see that support for natural gas vehicles is a part of this climate legislation," said Richard Kolodziej, president of NGVAmerica in a statement.

"The United States is behind many other countries in using natural gas as a transportation fuel, and the provisions in this legislation will encourage more fleets to switch to clean burning, domestically produced natural gas."

NGVAmerica is an organization representing more than 100 companies and is committed to creating a sustainable and profitable market for natural gas and biomethane-powered vehicles.

The provisions set forth in the legislation go further than those set forth in the Energy Policy Act of 2005. Provisions include one that would create tax credit caps for fleet vehicles, with credits based on the size, cost and emissions performance of the vehicle.

For example, the current tax cap on a medium-duty vehicle is $10,000, which would increase to $20,000 under the proposed legislation. Under the legislation, fleet owners could receive tax credit worth 50-80 percent of the cap for the next decade.

The legislation also calls for natural gas bonds to encourage the use of natural gas vehicles by government agencies and a tax incentive program for manufacturers.

Featured Product

sonnenBatterie eco

sonnenBatterie eco

Sonnen's mission is to provide clean and affordable energy for all. As the first mainstream grid tied residential energy storage company in the world and with 24,000 sonnenBatterie systems installed worldwide, sonnen is a proven global leader in intelligent energy management solutions. The all-in-one sonnenBatterie smart energy storage solution easily integrates with new and existing solar installations to help homes manage their energy throughout the day-saving money, providing backup power, and maximizing the effective use of solar power day and night. Sonnen has won several awards for its energy innovations, including the 2017 Zayed Future Energy Prize, MIT's Technology Review's 50 Smartest Companies in 2016, Global Cleantech 100 for 2015-2017, Greentech Media's 2016 Grid Edge Award for Innovation, and Cleantech's 2015 Company of the Year Award in both Israel and Europe.