CNGVC Applauds Senate Recognition of Natural Gas Role in Highway Bill

Senators Grassley, Baucus, Inhofe and Jeffords Seek to Increase Resources for the Highway Trust Fund, Encourage Wider Use of Natural Gas as a Vehicular Fuel

SACRAMENTO, Calif., May 19 -- The California Natural Gas Vehicle Coalition (CNGVC) today praised the United States Senate's decision to pass a Highway Bill that includes recognition of natural gas as an important alternative transportation fuel.

In the bill's Volumetric Energy Excise Tax Credit (VEETC) provision, Senators Charles Grassley (R-IA) and Max Baucus (D-MT) seek to significantly increase resources for the Highway Trust Fund by increasing taxes on compressed natural gas (CNG) and liquefied natural gas (LNG) to a level equivalent to that of gasoline and diesel fuel. In addition, the Senators encourage the wider use of natural gas as a vehicular fuel through an excise tax incentive.

In response to the Senate Highway Bill, Mike Eaves, president of the CNGVC, affirmed the Senate's commitment to environmental standards and praised its decision to support a proven alternative -- natural gas.

"By passing this Highway Bill, the Senate has demonstrated its commitment to reducing the amount of petroleum we have to import from unstable foreign sources. Further, the natural gas vehicles supported by the Senate -- vehicles like the dedicated natural gas Honda Civic GX -- have significantly less harmful emissions than their gasoline or diesel counterparts," noted Eaves.

"The Senate has shown a sincere attempt to uphold domestic energy security while paving the way for vehicles that will help alleviate urban air pollution," said Eaves. "The good news is people will actually feel the forward motion created by this legislation across the board -- security, environment and economy."

Andrew Littlefair, President and CEO of one of the largest providers of natural gas, Clean Energy, said the Highway Bill provides a great incentive for the use of clean, domestic fuels for transportation. "Fuel diversity not only gives American consumers options, it also puts us on the path to reducing our dangerous dependence on foreign oil," Littlefair said.

About Natural Gas Vehicles and The California Natural Gas Vehicle Coalition

Natural gas is the cleanest burning alternative transportation fuel available today, and natural gas vehicles (NGVs) have been certified as meeting some of the nation's most demanding environmental standards.

NGVs look like any other vehicle and they operate on natural gas as opposed to traditional gasoline. They also reduce emissions of carbon dioxide, the principal "greenhouse" gas that contributes to global warming. Therefore, NGVs are an existing solution to high fuel prices, unstable energy supplies and air pollution.

There are almost 130,000 NGVs on U.S. roads today and more than 2 million are in use worldwide. There are more than 30,000 NGVs in use in California, most of them serving the public in transit, refuse, school bus, shuttle, taxi, municipal, and utility fleets. The California Natural Gas Vehicle Coalition represents companies, organizations and individuals who are committed to expanding the use of this safe, affordable and environmentally friendly technology.