EMANUEL, BOREN TO INTRODUCE NEW LEGISLATION TO INCREASE THE USE OF NATURAL GAS

WASHINGTON, D.C.—Rep. Rahm Emanuel and Rep. Dan Boren will introduce legislation today to increase the use of natural gas vehicles in America over the next ten years by providing incentives to consumers to purchase natural gas vehicles, automakers to manufacture natural gas vehicles in America, and service stations to install the infrastructure necessary to fuel natural gas vehicles. By providing an array of incentives, the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act establishes a framework to achieve the goal of increasing the percentage of natural gas vehicles on the road to 10% of all vehicles by 2018.

“This proposal is a hat trick for America: it's good for our environment, good for our national security and good for families,” said Emanuel. “Our addiction to oil has only gotten worse and drivers are suffering each time they fill up their tank. Encouraging the use of natural gas will help end our dependence on foreign oil and save money for families across the country.”

“By fully utilizing our nation’s vast natural gas resources, we have a real opportunity to make a positive and sweeping impact on our energy and economic future.  Coming from a producing state, I believe this legislation will spur economic growth and job creation.  Most importantly, it will increase the nation’s energy independence while providing hard-working Americans with a cheaper, cleaner alternative to the rising cost of gasoline,” Boren said.  “There are also provisions that greatly encourage market development so that current and future NGV owners have more locations that serve their vehicles.”

“It is important to break the monopoly of the oil industry at the service station, and to offer drivers freedom of choice when it comes to how they power their vehicles,” added Sierra Club Executive Director Carl Pope.

Emanuel and Boren’s legislation would provide incentives to encourage automakers to make 10% of their fleet vehicles that run on natural gas by the year 2018. The bill would also offer new incentives to make natural gas more readily available for drivers and could enable the construction of natural gas pumps at 20,000 gas stations across the country. The legislation:

• Offers a $90,000 tax credit to encourage gas station owners to install natural gas fuel pumps.
• Provides $2.6 billion in bonding authority to states to provide no or low-interest loans to service stations to install natural gas pumps.
• Requires the gas stations owned by the major oil companies to install at least one natural gas pump in each station by 2018.
• Includes consumer tax credits for the purchase of natural gas vehicles and the cost of converting their cars to run on natural gas.
• Provides consumer tax credits for Americans to purchase home “Phill” units, a simple device that can be installed in a garage that allows drivers to use their home natural gas line to refuel their car.  
• Creates a production tax credit to encourage car companies to manufacture natural gas vehicles in the United States.
• Provides $5 billion in bonding authority to encourage the re-tooling of U.S. manufacturing facilities to produce natural gas vehicles.  

Currently, natural gas costs about half of the price of gasoline and produces approximately one-third less emissions. Additionally, 98% of the natural gas Americans currently consume is produced in North America, and current estimates indicate that America has a 118 year supply of natural gas. 

American automakers have the technology to produce vehicles that run on natural gas. General Motors currently makes four different natural gas vehicles in Europe and Asia, and both GM and Ford previously manufactured natural gas vehicles for sale in the U.S.

The NAT GAS Act would also create jobs and help offset recent declines in the SUV and light truck market. Estimates indicate that increased demand for natural gas powered vehicles and natural gas production could create 500,000 US energy industry jobs.