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APGA support NGV legislation

Hydrocarbon Engineering,

On 12th September, the APGA sent a letter of support to Senator Jim Inhofe who is sponsor of S. 1355, which would provide parity for NGVs under Corporate Average Fuel Economy (CAFE), incent manufactures to produce NGVs and encourage consumers to purchase them. Senators Bob Casey, Roy Blunt and Mark Begich also sponsor the bill.

Currently, credits earned by manufacturers for the production of alternative fuel vehicles (AFVs) are capped, except for electric vehicles (EVs) and plug in hybrid vehicles (PHEVs). Since EVs and PHEVs can receive unlimited credits towards meeting a fleet’s overall fuel economy, this serves as a disincentive for the production of NGVs, while giving an unequal advantage to EVs and PHEVs.

The proposed bill would increase parity to federal transportation policy by allowing for NGVs to also receive unlimited credits towards meeting CAFE standards. As there would be potential to earn unlimited credits, manufacturers would be incentivised to produce more NGVs, particularly as fuel economy and emissions standards tighten. Consumers would also benefit from vehicles fuelled by clean, abundant, American sourced natural gas, as they have the potential to save US$ 1 – 2 /gal. of natural gas over regular gasoline.

It is also said that the bill would expand the definition of a dedicated fuel vehicle to include a reserve gasoline tank. Currently, NGV infrastructure, although still developing, is generally limited to areas where fleets have centralised routes. This causes drivers and consumers to suffer from ‘range anxiety’. This means that drivers are worried about driving too far away from a known NGV refuelling area. By expanding the definition of a dedicated fuel vehicle to include a reserve tank of gasoline, this will alleviate range anxiety in consumers, and remove a significant barrier towards consumer adoption of NGVs.

The new bill would effectively level the playing field between NGVs and EVs/PHEVs, and encourage the production and purchase of NGVs in the marketplace. APGA is proud to support this legislation, and will work with sponsors to pass this important bill.

Adapted from a press release by Claira Lloyd.

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