Fleets & Fuels Newsletter
New NAT GAS Act – ‘It’s Got a Pay-For’
A new bipartisan version of the NAT GAS Act in the U.S. Senate lacks the 50¢ per gallon excise tax credit cherished by the natural gas vehicles industry – it in fact imposes new levies on CNG and LNG. But the money would reimburse the government for other incentives, making the measure revenue-neutral and giving it a better chance of enactment, says NGVAmerica.
“It’s got a pay-for,” association president Rich Kolodziej explains. “What they’re doing is advancing the industry some money and then getting paid back for achieving what is good public policy.”
“That’s huge,” Kolodziej told F&F just prior to the Thanksgiving break.
Under the new S. 1863, NGVs users would pay back the federal Treasury for the cost of vehicle and infrastructure incentives via a surcharge on the fuel for their vehicles.
The surcharge would ramp up by steps over a 10-year period, from zero in the first two years to 12.5¢ per gallon in the last two years. It would then expire – leaving NGVAmerica says, an industry where economies of scale have served to make NGVs cost-competitive.
NGVAmerica terms it “a bold approach” with “a much better chance of getting Congressional approval.”
(this is a draft for the November 28 issue of the regular Fleets & Fuels newsletter)