Natural gas bill gets Pickens’ approval, and should get trucking’s

Brian Straight July 9th, 2009

T. Boone Pickens is at it again. The entrepreneur, who is a proponent of wind power and alternative fuels, has thrown his support behind the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act, introduced into the U.S. Senate by Senate Majority Leader Harry Reid (D-Nev.). Sen. Orrin Hatch (R-UT) and Sen. Robert Menendez (D-NJ).

The bill is designed to promote natural gas through the extension of tax credits for vehicle purchases, including trucks, and infrastructure improvements by 10 years. The bill provides credits for 80% of the price difference between a natural-gas only vehicle and a non-natural gas equivalent and 50% credit for a vehicle that can run on natural gas or gasoline.

According to Bloomberg News, the credits could amount to as much as $12,500 for passenger cars and light trucks, and $64,000 for trucks.

Pickens told Bloomberg Television he thinks the bill will pass right after Congress’ August recess.

“We saw last summer how the wild fluctuations in oil prices helped to wreck our economy,” said Menendez. “By making it easier and cheaper to own a vehicle that runs on natural gas, we can help families save money on energy, create new manufacturing jobs and clean our air.”

While natural gas is not the end-all solution for trucking, one obstacle that exists – for the industry as well as for the automotive industry – is the price. There is little infrastructure in place in the U.S. to support natural gas vehicles and as a result, sales are low and that means higher purchase prices.

Most major truck OEMs now offer natural gas tractors, and natural gas fueling stations have begun to open near the California ports, where the fuel is most commonly used. That’s a positive.

Another positive, according to reports, is that the legislation would provide tax credits up to 100% of the cost, or $100,000, to build refueling stations. Now that’s an incentive. And the more refueling stations available, the more companies that will take advantage of natural gas and drive the purchase price down.

That’s good for everyone.

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Related Topics: Trucking Regulation, Trucking Technology, Trucking

2 Comments to “Natural gas bill gets Pickens’ approval, and should get trucking’s”

1. Dave Meekhof Says:
   

   July 12th, 2009 at 10:46 am

   In a world of depleting petroleum, our best course of action is toward maximizing efficiency. Let the chips fall where they may. Powering heavy trucks with natural gas is a step in the wrong direction. How many liters of engine displacement will be needed to match the horse power equvilent of diesel? How many more gears in the transmission? What size / weight tank will be needed for adequate range? Or, how much unproductivity can an economy afford as drivers pull off route to refuel more often? How much, more often? The bottom line is, diesel is currently our most efficent way to move tonnage. Send the natural gas to those homes and business using oil for heat. If we wouldn’t tolerate the added cost of air travel due to the inefficiency of a natural gas powered jumbo jet, then why would society tolerate the added cost of almost everything else, being delivered by truck? Reserve fuel oil for the heavy loads and continue to find ways to conserve. How about regenerative braking? How about tax credits for offseting waiting time for a backhaul? How about aerodynamics; 32″ of unused space under a trailer creates drag and frontal area. How about truck plazas placed 10 hours apart for driving shift changes? What about, what about, wait; it’s your turn.

2. Fred Ruggiero Says:
   

   July 14th, 2009 at 3:06 pm

   Thanks for giving me a turn!
   I agree with many of your points.
   However, there are applications for CNG.
   UPS and FEX have been using it for decades. Waste Management has been using it on a limited scale.
   I agree that CNG’s best use is for P & D routes around a refilling hub.
   Cummins (Westport Technologies) DDC, John Deere, Cat… all have EPA certified CNG engines, actually up to big bore engine sizes.
   In addition, CNG helps those who operate in a Non Attainment aera be in compliance.
   Pickens’ plan still works. Wind energy to displace natural gas use for Power Plants and use GNG for transportation, among other uses.
   There are thousands of gas wells capped, waiting for the price to rise. That will not happen, nor will the price stabilize until the use of natural gas is more consistent.
   Congress has a bill to encourage the use of natural gas for vehicles. Unfortunately, I am afraid that they are not informed well enough to be successful.
   Without a refueling infrastructure CNG will NEVER make it.

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