Lawmakers Renew Push For Natural Gas Cars

While the focus in Washington this week has been on budget battles and an impending government shutdown, two Republican and two Democrat lawmakers have set out to turn U.S. energy policy on its ear.

With oil over $112 a barrel and gasoline closing in on $4 a gallon at the pump, this bipartisan group of U.S. House members, along with 72 co-sponsors, has introduced legislation to promote the conversion of motor vehicles to run on natural gas.

Representatives John Sullivan (R-OK), Dan Boren (D-OK), John Larson (D-CT) and Kevin Brady (R-TX) have co-sponsored H.R. 1380, the  'New Alternative Transportation to Give Americans Solutions'Act, better known as the Natural Gas Act.

Jumpstarting natural gas

The legislation focuses on jumpstarting the use of natural gas fuel in the nation's transportation sector by offering limited tax credits and federal regulatory changes to encourage the production and purchase of natural gas vehicles.

The legislation would offer tax credits to consumers who purchase new cars manufactured to run on natural gas. However, it's possible to retrofit existing vehicles to run on the fuel. Either way, the lawmakers say, it will help produce jobs.

"Natural gas is a cleaner, cheaper, more abundant alternative to foreign oil, and it is in both our economic and national security interest to use the vast reserves we have right here in our own backyard as the bridge fuel towards energy security," said Sullivan, Vice Chair of the House Energy and Power Subcommittee. "Currently, 69 percent of the oil consumed in America is used for transportation, two-thirds of which we import from foreign nations - with gas prices approaching $4 to $5 per gallon, there is no time like the present to incorporate more natural gas vehicles into our transportation portfolio."

Plentiful and cheap

Natural gas is both plentiful and cheap, and estimates suggest there is enough in the U.S. to meet present energy consumption for nearly a century. The equivalent cost, compared to gasoline, is about $1.25 a gallon.

"It is important to know that the Nat Gas Act contains zero government mandates and zero subsidies," Sullivan said. "What we offer are incentives in the form of limited tax credits to give American businesses and families fueling options in light of 30 month high gas prices."

Boren says natural gas could quickly remove American dependence on OPEC oil, stopping the flow of billions of dollars out of the country. The bill promotes both the economy, he says, and national security.

"It is supported by some of the most progressive, as well as by some of the most conservative, members of Congress," Boren said.

Cheaper then coal, nuclear, solar and wind

According to a 2010 Department of Energy report, the cost of producing a kilowatt per hour of power using natural gas is cheaper then coal, nuclear, solar and wind.  And the United States is estimated to have three times the equivalent amount of energy available compared to Saudi Arabia.

Interestingly, the U.S. also has large stockpiles of crude oil on hand, yet the price keeps rising. The U.S. is also swimming in natural gas, but here the laws of supply and demand seem to have some effect - the price keeps falling.

The Energy Information Administration reported this week that natural gas stocks dropped by 45 billion cubic feet last week, but analysts said that didn't even put a dent in supply. In fact, Natural gas stockpiles in the U.S. gas producing region hit another all-time high last week, causing concern that storage facilities are being overwhelmed.