Monday, July 23, 2012
The Week Ahead: Senate Looks at Natural Gas Vehicles
by Regina Cline
The Senate Energy and Natural Resources Committee this week turns its attention to transportation fuels, and more specifically the use of natural gas to power vehicles.
The July 24 hearing will examine opportunities for the expanded use of natural gas as a fuel for transportation. The committee also will review the current level of investment and barriers to expansion.
Some auto industry officials believe natural gas can be an important part of the fuel mix as the industry shifts away from petroleum-based products to alternative fuels. An article in World Climate Change Report July 17 cited remarks by Daniel R . Frakes, General Motors Corp.’s manager of vehicle fuels and advanced technology policy, who said the Detroit automaker is developing vehicles that will use natural gas and hydrogen fuel cells as well as hybrid electric and all-electric ones.
Future vehicles will likely be powered by an array of fuel sources, Frakes told a forum organized organized by the American Council on Renewable Energy.
Among the witnesses scheduled to testify at the July 24 hearing are Dave McCurdy, president and CEO of the American Gas Association; Michael Gallagher, senior adviser at Westport Innovations in Vancouver, B.C.; Reg Modlin, director of regulatory affairs for the Chrysler Group; David Greene, a corporate fellow at Oak Ridge National Laboratory; and Paul Cicio, president of the Industrial Energy Consumers of America.
American Gas Association says US rules and tax code changes could boost NGV use
July 27, 2012. The Obama Administration and Congress could make natural gas vehicles more competitive with electric vehicles in the US if changes were made in administration policy and the federal tax code, David McCurdy, president and CEO of the American Gas Association, said.
In a hearing before the Senate Energy and Natural Resources Committee, McCurdy said: "We need policies that help us sustain the momentum we are seeing in the adoption of natural gas vehicles and fueling infrastructure. The most important component of this is maintaining a level playing field that allows natural gas vehicles to compete fairly in the market."
The Obama administration is finalizing the second round of its fuel economy and greenhouse gas standards for light duty vehicles, which will apply from 2017 to 2025.
"This is a critical, once-in-a-decade opportunity to get the policy right," McCurdy said. "It is vital for the success of the natural gas and alternative fuel sector that this rule expands consumer choice in the marketplace for alternative fuel vehicles, rather than being weighted to favor (electric) technology."
McCurdy also said Congress should remove barriers in the tax code to the growth of the natural gas vehicle market. Each gallon of liquefied natural gas sold incurs an effective excise tax rate or $0.41/diesel gallon equivalent versus $0.243 for diesel fuel, he said. "This is because LNG has a lower energy density/gallon than diesel, but the tax is applied on a volume (gallon) basis rather than an energy equivalent basis."
Also, he said heavy duty natural gas trucks cost $30.000 to $60.000 more than diesel trucks. "The federal excise tax rate of 12% is imposed on the full cost of a truck," he said. "The effect is an additional cost premium of $3.600 to $7.200 towards a new natural gas truck."
"His objective is to blow through as much money as he can to kill this country to rid the constitution. "
Ridiculous statements like that just put you out on Pluto. Come on back down to reality as soon as you can. Then we can chat.
BO voted for the extension on tax cuts and guess what....he's been the president for the last 3 1/2 yrs which he chose to escalate the Afganastan war and also Lybia. His objective is to blow through as much money as he can to kill this country to rid the constitution. WAKE UP before you find yourself between a rock and a hard place. This next election is about the takers against the producers.
Fact, GWB policies have carried forward into Obama's term. We still have those tax cuts. We still have troops deployed in war zones. We still have Medicare Part D. We are paying interest on all those unfunded ventures, including the massive non-defense spending increases.
re: Now that you are arguing politics, we need Mitch McConnell[R] to stop blocking Nat gas acts and protecting big oil.
The Democrat party as a whole, Senate, House and President, have never been serious about passing the nat gas act. If they were, they would have passed the nat gas act when they had control of all three branches, Senate, House and Presidency. Instead, the White House and Democrat led House attacked natural gas as a greenhouse gas polluter by passing the Obama/Waxman/Markey cap and trade bill, HR 2454, in the Pelosi led House in 2009.
We don't need a special nat gas act for nat gas to succeed in transportation, but we do need a changeover in the White House, EPA, Interior and Energy departments, which are led by anti fossil fuel, left wing greenies and/or Federal power grab advocates who want the Federal government to control and manage every aspect of the energy sector. If Romney is elected, he will reverse the Obama administration's slowdown in leasing and permitting for oil and natural gas drilling on Federal lands and waters, freeing up that sector to respond to America's energy needs. He will also seek tax reform that lowers tax rates across the board while broadening the base by removing costly loopholes and subsidies such as Obama's green energy slush fund. My current favorite (saracasm intended) in the Obama green energy slush fund is Obama requiring the Navy to purchase algae biofuel at a cost of $26 per gallon. Note: In the past, I posted that the algae biofuel cost the Navy $16/gallon, but it turned out that was the cost per gallon after it was blended with diesel, not the price for pure algae biofuel.
The Navy's Use of Biofuels is Inefficient and Costly
"This week, the Navy embarked on a costly and pointless exercise—using "advanced" biofuels that cost $26 per gallon in some naval exercises."
Fact...GWB 8yrs....4 trillion in debt (which BO say was irresponsible and unpatriotic. Fact....BO....4yrs and 5 trillion in debt. Very responsible and patriotic...Oh yah its the tea partys fault. Total is 9 trillion in debt in JUST 12 yrs. Let's spend more and we can be another Greek country very quickly. I voted for GWB and I can admit he was just another lib but you guys will never be honest and admit your screw ups. SICK and need to search your souls.
This notions of "roads" - i.e., repressive government - being the key to private sector success is silly. Who paid for those roads? The private sector via taxes, the work being done by private sector construction companies. Do you claim that there were no roads in the Soviet Union?
The fact is that Obama hates capitalism, i.e., economic liberty. He defeats the Constitution every chance he has, and he has vowed to "fundamentally transform" America. He has the mentality of a third world dictator. If he loved America he would not seek to fundamentally transform it.