Mr. President, I am introducing two pieces of legislation today, S. 3280 and S. 3281. In one bill I join with my colleagues in proposing legislation to open new development in ANWR, offshore, the Rocky Mountain oil shale, and preserves…
Mr. President, I am introducing two pieces of legislation today, S. 3280 and S. 3281. In one bill I join with my colleagues in proposing legislation to open new development in ANWR, offshore, the Rocky Mountain oil shale, and preserves access to development in the Canadian tar sands. It also contains my Gas PRICE Act, which streamlines, implements deadlines, and offers EDA grants to communities to encourage development of refineries involved in coal liquification or coal to liquids processing, renewable fuels, and crude oil and other petroleum products. It also includes accelerated depreciation for cellulosic biofuel plant property for facilities and equipment used to produce switchgrass and other dedicated energy crop seed for the developing cellolosic biofuels industry. Finally, it includes a third title which I am also introducing as a free standing bill, the Drive America on Natural Gas Act.
The Drive America on Natural Gas Act expands RFS Definitions.
The bill expands the definition in the Renewable Fuels Standard to allow the use of CNG and LNG fuels to meet the mandates.
The current corn based ethanol mandate is overly aggressive with mounting questions surrounding ethanol's effects on world food prices, livestock feed prices, its economic sustainability, its transportation and infrastructure needs, its water usage, and numerous other environmental issues.
By broadening the scope of the Renewable Fuels Standard to include natural gas, we encourage the use of a proven, clean, and economical alternative fuel and also make the current RFS mandates achievable.
Additionally, it sends a signal to the Nation's automakers and fuels industries that natural gas is a competitive option as a mainstream transportation fuel.
GM, Ford, and Chrysler already make natural gas powered vehicles, yet they don't sell them in the States. GM alone already makes 18 different NGV models. But, Honda is the only current manufacturer which sells a natural gas vehicle in America--the Honda Civic GX.
Broadening the RFS will encourage more auto manufacturers to sell these vehicles domestically which will help our struggling auto manufacturing industry.
The bill broadens the Alternative Vehicle Tax Credit to include bi- fuel vehicles.
Currently only ``dedicated'' vehicles or vehicles which solely run on natural gas qualify for this credit. This narrow definition actually discourages the sale of bi-fuel vehicles--those which can run on both conventional fuels and natural gas fuels.
Americans need the flexibility to use conventional gasoline as a back-up if there are no natural gas refueling stations in a given area.
By encouraging bi-fuel natural gas vehicles, less gasoline and diesel would be consumed. How?
Today, the largest hurdle facing the NGV industry is the lack of natural gas refueling stations available to the public. However, a device is now manufactured and sold, called the Phill, which allows a person to fill up their natural gas powered cars at home.
Installed in one's garage, the Phill is connected to a home's natural gas line.
Once plugged into a CNG car, it slowly compresses natural gas into the car's tank.
Similar to the idea of plug-in hybrids, the Phill allows consumers to refuel at home. Unlike plug-in hybrids, this technology is not a few years away--it is here today.
By encouraging bi-fuel vehicles, more Americans will be comfortable purchasing natural gas powered cars which can also run on conventional gasoline for that occasional long distance trip from home.
Expanding the Alternative Vehicle Tax Credit to include bi-fuels will greatly incentivize the use of NGV's and give consumers the flexibility they require.
The bill establishes a Natural Gas Vehicle Research, Development, and Demonstration program.
Several years ago, the Department of Energy had a robust Natural Gas Vehicle Research Development and Demonstration program. This bill once again establishes that program to research, improve and develop the use of natural gas engines and vehicles.
The program will assist manufacturers in emissions certification, will develop and improve nationally recognized safety codes and standards, will examine and improve the reliability and efficiency of natural gas fueling station infrastructure, and will study the use of natural gas engines in hybrid vehicles.
Additionally, it requires the Department of Energy and the EPA to coordinate with the private sector to carry out the program.
The bill directs the EPA to establish a State demonstration program to streamline the regulations and certifications currently required for the conversion of vehicles to natural gas.
Today's regulatory burdens are daunting for those in the business of converting vehicles to run on CNG or LNG. Currently, the EPA imposes virtually the same certification requirements on NGV aftermarket conversion systems as they require on automakers.
Since NGV systems are inherently cleaner than gasoline systems, these regulations impose huge unnecessary costs on these conversion system makers.
This bill directs EPA to establish a State demonstration program to streamline the current certification process for NGV conversions. It also directs EPA to waive unnecessary requirements for the continual recertification of conversion kits and to waive emission certification for conversion of older vehicles.
Most importantly, the Drive America on Natural Gas Act doesn't dictate that consumers, businesses, or States must use natural gas as a transportation fuel.
To the contrary, this bill actually adds more flexibility to the current RFS mandates.
It removes the disincentives for auto manufacturers to produce bi- fuel vehicles.
It streamlines and eliminates the government bureaucracy and red tape on the conversion of vehicles to operate on natural gas.
The Drive America on Natural Gas Act will allow natural gas to compete on its own merits. Americans can ultimately choose whether natural gas powered vehicles are right for their own individual and business needs.
The promise of natural gas as a mainstream transportation fuel is achievable today, not 15 or 20 years from now.
Currently, over 25 different manufacturers produce nearly 100 models of light-, medium- and heavy-duty vehicles and engines for the U.S. market. However, only Honda sells a domestically available CNG car.
Over 10,000 transit buses in the U.S. are natural gas powered and the market is growing; nearly one-in-five new transit buses on order is specified to be natural gas powered.
There are over 7.5 million NGVs on the road worldwide--more than double the number in 2003. The International Association of NGVs forecasts that, by 2020, there will be 65 million NGVs worldwide.
In April, the Department of Energy reported that the average nationwide price of a gallon of gas equivalent of CNG was just $2.04 per gallon.
In some regions of the country prices are even lower--CNG costs in Rocky Mountain states average just a $1.26 per gallon.
Many state and local governments, businesses, and consumers have cut their fuel bills by more than half when utilizing natural gas as a transportation fuel.
In my hometown of Tulsa, OK a person can refuel their CNG powered cars for just 90 cents per gallon. Regular gas currently costs $3.95. That's more than a $3 savings per gallon.
Just last month I was pleased to visit Tom Sewall of Tulsa Natural Gas Technologies, Inc. As a small business owner who installs natural gas refueling stations, he is one of the most knowledgeable and vocal leaders in this growing industry.
America has a huge natural gas supply base. In 13 of the last 14 years, the amount of new natural gas discovered in the U.S. has exceeded the amount that has been extracted.
Raymond James Equity Research recently reported a ``bearish outlook for U.S. natural gas prices.'' After examining the future supply of domestic production, they released a May 19, 2008 energy report which concluded ``we continue to see unprecedented growth in U.S. gas production that will eventually overwhelm the U.S. gas markets.''
Thanks to advancements in oil and gas exploration, drilling, and production technologies, America is producing huge amounts of natural gas from tight shales, coalbed methane and tight gas plays, in areas such as: The Barnett Shale in North Central Texas; the Marcellus and Huron Shales, which run through West Virginia, Pennsylvania, Ohio, and New York; the Haynesville Shale in Northwest Louisiana; the Fayetteville Shale in central Arkansas; the Woodford Shale in southern Oklahoma; the Pinedale Anticline and Jonah field in Wyoming; and the San Juan Basin CoalBed Methane play in northern New Mexico.
These and numerous other emerging gas plays promise to deliver decades of abundant domestic natural gas supply.
From compressed natural gas--CNG--powered cars, to 18-wheelers running on liquefied natural gas--LNG--no other commercially viable fuel burns cleaner.
The American Council for an Energy Efficient Economy has rated the natural gas powered Honda Civic GX as ``America's Greenest Car'' for the past 5 consecutive years--even greener than any available hybrid.
On a well-to-wheels basis, NGVs produce 22 percent less greenhouse gas than comparable diesel vehicles and 29 percent less than gasoline vehicles.
In 2007, NGVs displaced 250 million gallons of petroleum in the U.S. In the next 17 years, the industry's goal is to grow that to 10 billion gallons.
NGVs are the pathway to a hydrogen transportation system. Every NGV fueling station is a potential hydrogen fueling station. Every auto garage or maintenance facility that has been made NGV-compatible can quickly and cheaply be made hydrogen-compatible.
The medium-germ solution to today's gas price crisis is to explore and produce oil from ANWR, the Outer Continental Shelf, the Rocky Mountain oil shales, and preserve our access to the Canadian oil sands. That is why my comprehensive bill includes opening all these areas for exploration, along with a program to increase our refining capacity.
But, in the mean time the best way to bring down the price at the pump immediately is to pass this bill and run more cars on natural gas. Of course, the democrats have objected to increasing supplies of oil and gas for decades. They don't want more supply. There should be no objection from the democrats, and frankly I cannot think of any justification for opposing my Drive America on Natural Gas Act.