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

Washington, D.C. – 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.

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. Rick Roldan, NPGA’s President & CEO said, “This year, the United States will produce more than 20 billion gallons of propane, the majority of which is derived from natural gas processing. We have more than enough propane to heat homes and fuel vehicles. Congress should support reinstating the AFTC and the use of our domestic natural resources.”

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. Daniel Gage, NGVAmerica’s President, said, “Natural gas vehicles have long been the choice of fleet managers interested in escaping the volatility of ever-changing gasoline and diesel prices. 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.”

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.

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The National Propane Gas Association is the national trade association of the propane industry. NPGA represents approximately 2,800 companies, including producers, wholesalers, transporters, and retailers of propane gas as well as the manufacturers and distributors of associated propane equipment and appliances. 50 million Americans choose propane as their energy source. Propane is a clean-burning, efficient and climate-friendly alternative fuel that is available now. For more information about NPGA and the propane gas industry, visit NPGA online at www.npga.org.

NGVAmerica is a national organization of over 200 companies, environmental groups, and government organizations dedicated to the development of a growing, profitable, and sustainable market for vehicles powered by natural gas or biomethane. NGVAmerica member companies produce, distribute, and market natural gas and biomethane across North America, manufacture and service natural gas vehicles, engines, and equipment, and operate fleets powered by clean-burning gaseous fuels. Find out more at: www.ngvamerica.org.