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Natural Gas Vehicle Bill Draws Critics

Criticism over legislation that would offer tax incentives for natural gas vehicles is intensifying, which may make it more difficult for the bill's supporters to accomplish the goal of a vote on the measure before the August recess

by Staff
May 24, 2011
2 min to read


Criticism over legislation that would offer tax incentives for natural gas vehicles is intensifying, which may make it more difficult for the bill's supporters to accomplish the goal of a vote on the measure before the August recess,
reports the Motor Equipment Manufacturers Association.

The "New Alternative Transportation to Give Americans Solutions" (NAT GAS) Act of 2011, H.R. 1380, introduced in April, would authorize tax incentives for both light-duty and heavy-duty vehicles ranging from $7,500 to $64,000, depending on the size of the vehicle. Introduced by Representives John Sullivan, R-Okla., Dan Boren, D-Okla., John Larson, D-Conn., and Kevin Brady, R-Texas, it currently enjoys the bipartisan support of 185 cosponsors and prominent supporters of natural gas including billionaire T. Boone Pickens.

However, the legislation has drawn sharp criticism from prominent conservative groups, which have called the measure "another wasteful subsidy" that unfairly supports one technology.

Proponents of the bill responded to the criticism by arguing that inaction amounts to a de-facto subsidy of the oil industry.

Freshman Reps. Mike Pompeo (R-Kan.) and Raul Labrador (R-Idaho) announced that they oppose the bill, which they call "the perfect example of a federal policy that's trying to identify and select a winner."

MEMA says it supports a technology-neutral approach to encourage development and deployment of every available advanced vehicle technology.

Congressman Sullivan, at a press conference following the introduction, stressed the fact the bill does not provide subsidies, nor does it choose a particular technology, but only provides tax credits. He also said the bill is meant to create a basis on which long-term energy policy can be built.

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