Natural Gas Sector Gets Congressional Action on LNG Tax Rate Drop

Liquefied natural gas (LNG) as a transportation fuel option is back on the competitive race track, thanks to a part of the temporary (three-month) highway funding bill passed by the U.S. Senate Thursday, according to natural gas vehicle (NGV) advocates. The House-passed version had a similar provision.

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Sourced through Scoop.it from: www.naturalgasintel.com

>” […] At a Congressional hearing last December, the global energy and procurement director for Atlanta-based UPS called for “removing barriers” to NGVs, adding that if Congress really wanted to accelerate the adoption of LNG use in heavy-duty trucks and more use of U.S.-produced natural gas supplies, it needed to eliminate “disproportionate taxing of LNG compared with diesel fuel.”

Noting that President Obama was expected to sign the latest measure, Newport Beach, CA-based Clean Energy Fuels Corp. said the new leveling provision will effectively lower the tax on LNG by 14.1 cents/gal. Twenty-six state legislatures have already taken similar action, a Clean Energy spokesperson told NGI.

Clean Energy CEO Andrew Littlefair said the use of LNG in heavy-duty trucks, locomotives and large marine vessels has been growing steadily in North America, and “anyone who cares about a cleaner environment and energy independence should be very grateful for what the U.S. Congress has done, making LNG much more competitive.”

Executives with America’s Natural Gas Alliance (ANGA), and the NGVAmerica and American Gas Association (AGA) trade associations echoed Littlefair’s sentiments.

“We applaud Congress for including language to equalize the federal highway excise tax on LNG,” said ANGA CEO Marty Durbin. “This provision has garnered strong bipartisan support over the years, and we are thrilled to see it become law.”

Calling the action a “common-sense change” that will mean greater fuel cost savings, NGVAmerica President Matt Godlewski said the passage of the LNG provision is great news for trucking fleets that are looking for clean-burning fuels. His calculation places the excise tax on LNG at 24.3 cents/DGE, compared to its current 41.3 cents/DGE level, Godlewski said.

“Currently, fleets operating LNG-powered trucks are effectively taxed for their fuel at a rate 70% higher than that of diesel fuel,” he said.

An AGA spokesperson clarified the number to point out that the current federal excise tax on both diesel and LNG is 24.3 cents/gallon, but because LNG does not have the same energy content/gallon of fuel, it takes 1.7 gallons of LNG to equal a gallon of diesel. “Since the excise tax is based on volume (gallons) — not energy content — LNG is taxed at 170% of the rate of diesel on an energy equivalent basis,” he said.

“This provision provides the level playing field that natural gas has needed to reach its full potential as a transportation fuel,” said Kathryn Clay, AGA vice president for policy strategy.

Each of the trade groups has been lobbying Congress for some time to take this corrective action on LNG. Under the new provision, the energy equivalent of a diesel gallon of LNG is defined as having a Btu content of 128,700, which AGA said is equal to 6.06 pounds of LNG.

Separately, the new measure defines the energy equivalent of a gallon of compressed natural gas (CNG) as having a Btu content of 115,400, or 5.66 pounds of CNG. […]”<

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Armored Trucks get Natural Gas & Electric Plug-in Hybrid Conversion to Reduce Emissions by 99.9% & Big Fuel Economy

Efficient Drivetrains and American Repower are partnering to convert a fleet of six armored vans to run on compressed natural gas with a plug-in hybrid.

Sourced through Scoop.it from: www.autoblog.com

>”When hauling around massive amounts of money and valuables around Southern California, security is generally a much bigger concern than fuel economy. However, the need for vehicles to become more efficient is hitting every segment, even armored vans. That’s why Efficient Drivetrains Inc. and North American Repower are teaming up to convert six of these 26,000-pound behemoths run on natural gaswith a plug-in hybrid offering additional help. The first one should be hauling riches for Sectran Security around Los Angeles in 2016.

All three companies are already positioning the upcoming conversion as a win-win solution to current issues. The armored vehicles can still do their job of hauling money around the LA area but with a claimed 99.9 percent reduction in emissions from the current diesel engines. Generally, the vans make frequent stops while at work but must stay running for security reasons. This can potentially run afoul of California’s rule not to let diesels idle more than five minutes. With this upcoming version, drivers will be able to go electrically between stops and then will use the natural gas when cruising.

This work combines the strengths of both firms working on these vehicles. North American Repower already specializes in natural gas engine management and conversions, and Efficient Drivetrains is very familiar with the world of plug-ins. The funding for the project includes a $3-million grant from the California Energy Commission, plus the same amount in private funds.”<

[…]

>”Press Release:

North American Repower and Efficient Drivetrains, Inc. to Deliver First PHEV-RNG Armored Truck
Collaboration reduces emissions by 99.9 percent

OCEANSIDE, Calif. & MILPITAS, Calif.–(BUSINESS WIRE)–Two global leaders in developing and manufacturing advanced transportation vehicles have teamed up to manufacture a first-of-its-kind fleet of Class-5 armored vehicles that combine the benefits of Renewable Natural Gas (RNG) and zero emission Plug-In Hybrid Electric Vehicle (PHEV) technology.

“We’re excited to be partnering with EDI on this breakthrough innovation”

North American Repower—California’s leading natural gas engine management and conversion technology company— and Efficient Drivetrains, Inc.—a global leader in developing high-efficiency Plug-in Hybrid Electric Vehicle solution—will convert a fleet of six 26,000 pound, Class-5 medium-duty armored vehicles operated by Sectran Security into PHEV vehicles that run on electricity and renewable natural gas—known as “Zero Emission with Range Extension” vehicles. The collaboration supports the dramatic acceleration in California toward a zero emissions environment. Today, the Sectran Security trucks make frequent stops as part of their highly congested urban routes. At each stop, the engines are kept idling for security purposes, but now risk violating California’s strict diesel idling regulations, which prohibit idling the engine for more than five minutes. With the modernized trucks, Sectran can completely eliminate engine idling by operating in all-electric mode during stop-and-go operations on urban routes and in hybrid-mode during highway operations. When complete, the vehicles possess impressive performance statistics—the demonstration trucks will enable Sectran to reduce annual diesel consumption by 31,000+ gallons, significantly reduce annual fuel costs, and reduce emissions by 99.9 percent. […]”<

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