US House of Representatives -- Democratic Caucus
Monday, July 14, 2008 at 12:30 PM

Emanuel Announces New Proposal to Increase the use of Natural Gas

Washington, D.C. - At a press conference in Chicago, Rep. Rahm Emanuel today announced plans to introduce legislation that will compel automakers to make 10 percent of their fleet vehicles that run on natural gas by the year 2018. Emanuel's proposal also includes incentives and tax credits that will result in the addition of natural gas pumps at 20,000 fueling stations across the country. The legislation will be formally introduced later this week.

"This proposal is a hat trick for America: it's good for our environment, good for our national security and good for drivers who are suffering at the pump. Natural gas is cheap, green and American-made and it's time we encouraged the use of natural gas vehicles here in America," said Emanuel. "American drivers should be able to buy a car that runs on a cleaner fuel that is currently half the cost of gas. Developing cars that run on natural gas and making it available at the gas station or at home will save money for consumers and help end our dependence on foreign oil."

Emanuel's legislation would compel automakers to make 10% of their fleet vehicles that run on natural gas by the year 2018. The bill would also offer new incentives to make natural gas more readily available for drivers and could enable the construction of natural gas pumps at 20,000 gas stations across the country. The legislation:

· Offers a $90,000 tax credit to encourage gas station owners to install natural gas fuel pumps.

· Provides $2.6 billion in bonding authority to states to provide no or low-interest loans to service stations to install natural gas pumps.

· Requires the gas stations owned by the major oil companies to install at least one natural gas pump in each station by 2018.

· Includes tax credits for drivers who convert their cars to allow them to run on natural gas and for those Americans who own home "Phill" units, a simple device that can be installed in a garage that allows drivers to use their home natural gas line to refuel their car.

Currently, natural gas costs about half of the price of gasoline and produces approximately one-third less emissions. Additionally, 98% of the natural gas Americans currently consume is produced in North America and current estimates indicate that America has a 118 year supply of natural gas.

"The United States has abundant natural gas reserves," added Emanuel. "It's time to start making those reserves work for us."

American automakers have the technology to produce vehicles that run on natural gas. General Motors currently makes four different natural gas vehicles in Europe and Asia and Ford has previously built natural gas vehicles that were used in the House of Representatives.

The Emanuel legislation would also create jobs and help offset recent declines in the SUV and light truck market. Estimates indicate that increased demand for natural gas powered vehicles and natural gas production could create 500,000 US energy industry jobs.

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