Natural Gas and Propane Vehicle Users Urge Congress to Extend Alternative Fuel Tax Credits

More than 300 organizations representing users, retailers, customers, fleet managers, utilities, and producers of clean alternative fuels, including natural gas and propane, are circulating a letter on Capitol Hill urging Congress to reinstate the $0.50/gallon alternative fuels tax credit (AFTC).

Noting the importance of private-sector investment to America’s economy, the letter states, “Extending the AFTC promotes increased private-sector investment in infrastructure and equipment, which leads to more jobs and economic output.” Increased utilization of alternative transportation fuels results in proven environmental benefits and helps promote America’s energy security.

Fueling with natural gas greatly reduces smog precursor NOx, CO2, and greenhouse gas emissions. Benefits are even amplified when fueled with renewable natural gas from captured landfill, waste treatment, and agricultural biogas.

“Natural gas vehicles have long been the choice of fleet managers interested in escaping the volatility of ever-changing gasoline and diesel prices,” said Daniel Gage, NGVAmerica’s President. “NGVs are powered by American fuel, American technology, and American innovation. Among the cleanest emissions profile of any fuel on the market today, NGVs make a clean air difference through a variety of applications – trucks, trash, transit, marine and rail.”

Nearly 200,000 vehicles in the United States are powered by propane, including 12,000 school buses that transport more than 700,000 school children every day. A school bus powered by propane emits 13 percent fewer GHG emissions than its gasoline counterpart.

The letter asks Congress to extend the AFTC for two years, highlighting the business planning benefits and notes that a full five-year extension would provide business certainty combined with a significant contribution to America’s economic growth.

The letter can be viewed here.