Bill Gives GM Incentives to Make Vehicles that Run on Natural Gas, Menendez Says
Thursday, July 16, 2009
By Edwin Mora




Sen. Robert Menendez (D-N.J.) (AP Photo)(CNSNew.com) – A bill designed to promote the use of vehicles that run on natural gas contains incentives for government-owned General Motors to start making natural-gas-fueled cars, Sen. Robert Menendez (D-N.J.) said.

“The reality is we want GM to be self-sufficient and a private company again, totally,” Menendez told CNSNews.com.

“I don’t know that we want to, from my own view, that we want to direct the company to do that [make natural gas vehicles], but I think the incentives are in this bill to clearly move them in that direction,” Menendez said, when asked whether the government should require GM to manufacture natural gas vehicles.

The federal government owns 60 percent of the company; Canada owns 12 percent; and unions own 17.5 percent. Bondholders own the remaining 10 percent of GM.

Under the NAT GAS Act (the New Alternative Transportation to Give Americans Solutions Act), companies that start making natural gas vehicles before the beginning of 2015 would be allowed to expense 100 percent of their cost. The cost would be treated as a deduction for the year that those companies go into production.

Additionally, the NAT GAS Act provides grants for the development of light- and heavy-duty natural gas engines.



Sen. Orrin Hatch (R-Utah)Menendez spoke with CNSNews.com last week at a news conference where he introduced the legislation, which is co-sponsored by Senate Majority Leader Harry Reid (D-Nev.) and Sen. Orrin Hatch (R-Utah).

"Natural gas is an important alternative fuel to help pave the way to energy independence, which will not only help keep us safer, but will also help reduce the high cost of fuel and thus, high utility bills across the board,” Hatch said in a statement.

“In our current economic downturn, it’s crucial to provide appropriate incentives that lead to lower prices for all Americans,” Hatch said. “This piece of legislation does just that while also helping clean up our environment. I am a proud cosponsor.”

Reid noted that the U.S. consumes about 21 million barrels of oil each day – more than 25 percent of the world’s oil supply, he said. "Nearly 70 percent is imported from outside our borders. With only 3 percent of the world’s oil reserves, we cannot produce our way to a safe and secure energy future,” Reid said in a statement.

“I’m proud to join with Senators Menendez and Hatch in introducing legislation that will help encourage the development of natural gas vehicles to help save consumers and operators thousands of dollars per year, protect our environment, and decrease our dependence on foreign energy,” said Reid.

During the press briefing, Hatch noted that the United States has enough natural gas to support the NAT GAS Act. He also mentioned that technological advances have made it easier to tap America’s natural gas supply.

“We have much more natural gas than we thought we did just a few years ago," Hatch said, and that makes natural gas a viable transportation fuel.

Menendez pointed out that the current recession has focused attention on the need for alternative energy.

“Our economic crisis is shining a spotlight on the urgent need for alternative, cleaner, and cheaper sources of energy that we don’t have to import,” said Menendez. “We are not only going to recover from this economic crisis, but recover to a phase of greater economic security.”

Among other things, the NAT GAS Act would extend fuel credits for natural gas when it is used as transportation fuel; provide purchase-incentives for vehicles that run on natural gas; and take steps for the installation of natural gas refueling stations across the country over the next 10 years.

Buck