Seal Beach, Calif. (April 8, 2011) — A group of Pennsylvania state legislators have proposed a package of seven bills called Marcellus Works to promote the use of clean natural gas fuel for transportation through a variety of tax credits, loan programs and other incentives, according to Clean Energy Fuels Corp. (Nasdaq: CLNE).
“Mirroring the recent introduction of the Nat Gas Act at the federal level, this proposed legislation in Pennsylvania indicates the groundswell of support emerging for natural gas vehicle use in America,” said Andrew J. Littlefair, Clean Energy President and CEO.
The total outlay of the Marcellus Works proposal is $47.5 million in one-time spending, plus some additional annual spending for a five year period. The bulk would come from various tax credits, grant programs and revolving loan programs. The initiative is intended to help create jobs without costing any additional taxpayer dollars and act as a catalyst for the industry.
“Marcellus Works is a series of steps the state government can take to capture the full benefit of natural gas right here in Pennsylvania,” Rep. Stan Saylor (R-York), a major proponent, said.
“This is an issue that will transform Pennsylvania,” Lt. Gov. Jim Cawley said. “The entire Commonwealth, not just a particular region of the state.”
The seven-bill package would:
Establish tax credits for private fleet vehicles to lessen the incremental cost of natural gas vehicles
Establish a grant program for smaller mass transit agencies to cover the incremental cost of natural gas buses
Establish a revolving loan program for large mass transit agencies to cover the incremental cost of natural gas buses
Require 25% of all new bus purchases made by large mass transit agencies in 2012-16 to run on natural gas; 50% in 2017-2021; 75% in 2021-2026; and 100% in 2027
Create a natural gas corridor tax credit to encourage the construction of natural gas fueling stations along travel corridors
Dedicate the Alternative Fuel Incentive Fund to provide grants to municipalities, schools, and the private sector for the purchase of natural gas vehicles, and
Eliminate costly duplication of EPA and CARB certifications for natural gas vehicles
Jan Jarrett, president of environmental advocacy group PennFuture, said she supports the Marcellus Works proposal because it will decrease the amount of diesel emissions emitted in the state, particularly in Central Pennsylvania around the nexus of several interstate highways.
About Clean Energy Fuels — Clean Energy (Nasdaq: CLNE) is the largest provider of natural gas fuel for transportation in North America and a global leader in the expanding natural gas vehicle market. It has operations in CNG and LNG vehicle fueling, construction and operation of CNG and LNG fueling stations, biomethane production, vehicle conversion and compressor technology.
Clean Energy fuels over 21,200 vehicles at 224 strategic locations across the United States and Canada with a broad customer base in the refuse, transit, trucking, shuttle, taxi, airport and municipal fleet markets. Clean Energy del Peru, a joint venture, fuels vehicles at two stations and provides CNG to commercial customers in Peru. We own (70%) and operate a landfill gas facility in Dallas, Texas, that produces renewable natural gas, or biomethane, for delivery in the nation’s gas pipeline network. We have agreed to build a second facility in Michigan. We own and operate LNG production plants in Willis, Texas and Boron, Calif. with combined capacity of 260,000 LNG gallons per day and that are designed to expand to 340,000 LNG gallons per day as demand increases. NorthStar, a wholly owned subsidiary, is the recognized leader in LNG/LCNG (liquefied to compressed natural gas) fueling system technologies and station construction and operations. BAF Technologies, Inc., a wholly owned subsidiary, is a leading provider of natural gas vehicle systems and conversions for taxis, vans, pick-up trucks and shuttle buses. IMW Industries, Ltd., a wholly owned subsidiary based in Canada, is a leading supplier of compressed natural gas equipment for vehicle fueling and industrial applications with more than 1,200 installations in 24 countries. www.cleanenergyfuels.com
Forward Looking Statements — This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions, including statements about the Marcellus Works bills and, specifically, the provisions of the legislation that provide for tax credits, grant programs, revolving loan programs and the Alternative Fuel Incentive Fund and the potential impact any such legislation might have should it be passed into law. Actual results and the timing of events could differ materially from those anticipated in these forward looking statements as a result of several factors, including the inherent uncertainty of the legislative process, continuously changing political conditions, the price per gallon of natural gas relative to diesel and gasoline and the performance, availability and price of natural gas vehicles relative to gasoline and diesel vehicles. The forward-looking statements made herein speak only as of the date of this press release and, unless otherwise required by law, the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.