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.

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