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Friday, July 19, 2024

Congress OKs Alternative Fuel Credit

Clean Energy Fuels Corp. applauded the passage by the United States Congress of an alternative fuel tax credit. The credit will continue to support the use of natural gas, a cleaner and domestic transportation fuel option. The credit is retroactive to 2015 and extends through 2016 and applies to compressed natural gas and liquefied natural gas.

“The tax credit will support the continued expansion of natural gas fuelling in the U.S., which will help to clean our air and keep dollars here,” said Andrew J. Littlefair, president and CEO of Clean Energy. “We applaud Congress for taking this action and encourage the implementation of permanent measures to encourage further use of this superior and cleaner fuel.”

With an anticipated signature by President Obama, the tax credit will cap a successful year for Clean Energy that includes the completion of 68 station projects and adding over 3,000 vehicles to the Clean Energy fuelling network, despite facing the headwinds of lower diesel prices.

“One of the remarkable things that has occurred this year is that despite the declining price of diesel, the purchase of natural gas fuelled waste collection vehicles has remained steady, as companies and local governments seek to reduce [their] carbon footprint, reduce emissions and reduce costs,” said David Biderman, the executive director and CEO of the Solid Waste Association of North America.

Natural gas fuel costs up to $1 less per gallon than gasoline or diesel, depending on local market conditions. The use of natural gas fuel not only reduces operating costs for vehicles, but also reduces greenhouse gas emissions up to 30 percent in light-duty vehicles and 23 percent in medium to heavy-duty vehicles. In addition, nearly all natural gas consumed in North America is produced domestically.