Hundreds of Stakeholders Urge Congress to Renew Alt-Fuel Tax Credit


More than 300 organizations representing users, retailers, customers, fleet managers, utilities, and producers of clean alternative fuels, including natural gas and propane, have signed a letter urging Congress to reinstate the $0.50/gallon alternative fuels tax credit (AFTC). The National Propane Gas Association (NPGA) and NGVAmerica helped spearhead the effort.

Noting the importance of private-sector investment to America’s economy, the letter states, “Extending the AFTC promotes increased private-sector investment in infrastructure and equipment, which leads to more jobs and economic output. Renewal of the AFTC also will bring significant environmental benefits and enhance our energy independence by lowering our dependence on foreign oil.”

According to the NPGA, early 200,000 vehicles in the U.S. are powered by propane, including 12,000 school buses that transport more than 700,000 school children every day. A school bus powered by propane emits 13% less greenhouse gas (GHG) emissions than its gasoline counterpart.

Rick Roldan, NGPA president and CEO, says, “This year, the United States will produce more than 20 billion gallons of propane, the majority of which is derived from natural gas processing. We have more than enough propane to heat homes and fuel vehicles. Congress should support reinstating the AFTC and the use of our domestic natural resources.”

Similarly, NGVAmerica says fueling with natural gas greatly reduces smog precursor NOx, CO2, and GHG emissions. Benefits are even amplified when fueled with renewable natural gas from captured landfill, waste treatment, and agricultural biogas.

Daniel Gage, NGVAmerica’s president, says, “Natural gas vehicles have long been the choice of fleet managers interested in escaping the volatility of ever-changing gasoline and diesel prices. NGVs are powered by American fuel, American technology, and American innovation. Among the cleanest emissions profile of any fuel on the market today, NGVs make a clean air difference through a variety of applications – trucks, trash, transit, marine and rail. ”

The letter asks Congress to extend the AFTC for two years, highlighting the business planning benefits, and notes that a full five-year extension would provide business certainty combined with a significant contribution to America’s economic growth. The letter can be viewed here.

In addition, the NPGA has set up a pre-written letter advocates can send to their representatives, noting that although Congress just passed a major tax reform bill “with no action” on the credits, lawmakers should still consider including an AFTC extension in a year-end legislative package or another bill.

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