La. could pave way for natural-gas vehicles

Jeremy Alford


Published: Wednesday, March 25, 2009 at 12:20 p.m.
Last Modified: Wednesday, March 25, 2009 at 12:20 p.m.
BATON ROUGE - So you've heard of biodiesel and corn ethanol, and maybe you've even seen one of those mini-electric cars on the roads.

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Get ready for one more alternative player on Louisiana's highways and byways: the compressed-natural-gas vehicle.

It's an exciting technology, especially when you consider that natural gas is 50 percent cheaper than gasoline on an equivalent energy basis.

So far, Germany has been leading the push globally and already hosts hundreds of filling stations.

In the U.S., federal tax credits recently became available for purchasing CNG vehicles, but few people take advantage of them.

Still, state lawmakers don't want to miss out on what could be the next big green thing.

That's why Rep. Nick Gautreaux, D-Abbeville, and Sen. Jane Smith, R-Bossier City, have combined efforts in a bipartisan push to put a variety of tax incentives and programs on the books for consumers and businesses.

The CNG legislation is still being drafted but is expected to be filed after lawmakers convene their regular session April 27.

While the policy package would certainly have its environmental selling points, it can also be viewed as an industry booster, too.

"With potentially the largest natural-gas field in the United States, Louisiana is poised to support an energy policy that enhances our national security and promotes a cleaner environment in our country and state," Gautreaux said.

The Louisiana Mid-Continent Oil and Gas Association, as well as the Louisiana Oil and Gas Association, two Baton Rouge-based trade groups, have already come out in support of the legislation in a joint news release with Gautreaux and Smith.

It's a sure sign that the oil lobby will have a hand in the drafting process.

Mid-Continent President Chris John said the proposal will create jobs, and LOGA President Don Briggs said it's "critical that new tax credits and incentives be put into place."

Smith said that there will be no mandates at all in the legislation.

But based on a preliminary outline, the policy package could repeal an old law that prohibits certain companies from receiving tax credits for clean-burning fuels used in a vehicle and possibly increase Louisiana's current income-tax credit for purchases or conversions.

Including conversions - meaning upgrading your present vehicle to CNG standards - is a smart move, supporters argue, as there's really only one ride in regular production that fits the bill.

It's the Honda Civic GX, which is in limited production and requires placement on a waiting list.

While it requires about 16 hours to fill a nearly empty tank, it does get 36 miles per gallon on the highway.

The GX has been labeled as the "cleanest internal-combustion vehicle on Earth" by the U.S. Environmental Protection Agency. Price: about $25,100.

As for treading new ground, Louisiana isn't quite there, but it would be among the few states that have taken serious stances on CNG.

California, for instance, has a slew of incentives on the books, more than 100 filling stations in service and CNG is even used for public transportation.

Utah, meanwhile, offers a subsidized system for its filling stations.


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