Speaking yesterday in favor of H.R. 1380 — the NAT GAS Act introduced on April 6, 2011 by Rep. John Sullivan (R-Okla.), Clean Energy Fuels Corp. President and CEO Andrew J. Littlefair stated that he believes passage of legislation supporting the accelerated development of the natural gas vehicle industry in the United States will produce significant benefits for the U.S. economy.
Mr. Littlefair provided testimony before the Subcommittee on Select Revenue Measures and the Subcommittee on Oversight — House Committee on Ways & Means.
These are excerpts from Mr. Littlefair’s written testimony:
“ There are about eight million Class 5 through 8 heavy-duty trucks in the U.S. These trucks range from refuse recycling trucks to over-the-road 18-wheelers and use upwards of 35 billion gallons of fuel annually. Helping the owners of these vehicles replace their diesel trucks with trucks running on CNG or LNG can have an immediate, measurable effect …
“ The cost of a basic Class 8 truck, which includes regional tractors, drayage trucks, and refuse and recycling trucks, built to run on diesel is approximately $125,000. A similar truck manufactured to run on natural gas will cost between $35,000 and $40,000 more … just three years ago the incremental cost of a natural gas truck over a diesel was between $60,000 and $100,000. I believe that, by providing this modest tax credit (H.R. 1380) for truckers to purchase NGVs that differential will quickly disappear as the benefits of natural gas as a transportation fuel become obvious to users …
“ As these companies ramp up to meet the expected demand, the per-unit cost will drop to the point where a tax credit is no longer necessary. Yet the manufacturing facilities and the workers who build these new vehicles within them — designers, engineers, tool-and-dye makers, mechanics and after-market entities — will remain and will grow in a market sector which is crucial to the economic health of states throughout America. Studies have shown that moving America’s heavy-duty truck fleet from diesel to natural gas will have the effect of providing over 400,000 direct and indirect new jobs over the next five years, further demonstrating the long-term benefits of this legislation …
“ In April of this year, oil imports accounted for about 60 percent of our three-year-high trade deficit of $50.2 billion. Converting America’s heavy truck fleet of about 8 million vehicles to Liquefied Natural Gas would save 2.5 million barrels of oil per day, meaning we could reduce our reliance on OPEC oil by half. At $100 per barrel that means $250 million per day stays in the United States to circulate through OUR economy, rather than being shipped off (overseas) …. ”
Currently priced $1.50—$2.00 per gallon lower than diesel or gasoline (depending upon local markets), the use of natural gas fuel reduces costs significantly for vehicle and fleet owners, and reduces greenhouse gas emissions up to 30% in light-duty vehicles and 23% in medium to heavy-duty vehicles. Additionally, natural gas is a secure North American energy source with 98% of the natural gas consumed produced in the U.S. and Canada.
[mappress]
Source: Clean Energy Fuels, September 23, 2011;