So you’ve heard of biodiesel and corn ethanol and maybe you’ve even seen one of those mini-electric cars on the roads. Well, get ready for one more alternative player on Louisiana’s highways and byways: the compressed natural gas vehicle.
It’s an exciting technology, especially when you consider that natural gas is 50% cheaper than gasoline on an equivalent energy basis. So far, Germany has been leading the push globally and already hosts hundreds of filling stations. Back here in the U.S.A., federal tax credits recently became available for purchasing CNG vehicles, but few people take advantage of them.
Still, state lawmakers don’t want to miss out on what could be the next big green thing. That’s why Rep. Nick Gautreaux and Sen. Jane Smith have combined efforts in a bipartisan push to put a variety of tax incentives and programs on the books for consumers and businesses. The CNG legislation is still being drafted, but is expected to be filed after lawmakers convene their regular session on April 27.
While the policy package would certainly have its environmental selling points, it can also be viewed as an industry-booster, too. “With potentially the largest natural gas field in the United States, Louisiana is poised to support an energy policy that enhances our national security and promotes a cleaner environment in our country and state,” says Gautreaux, a Democrat from Abbeville.
The Louisiana Mid-Continent Oil and Gas Association as well as the Louisiana Oil and Gas Association, two Baton Rouge-based trade groups, have already come out in support of the legislation in a joint press release with Gautreaux and Smith. It’s a sure sign that the oil lobby will have a hand in the drafting process. Mid-Continent President Chris John says the proposal will “create jobs” and LOGA President Don Briggs says it’s “critical that new tax credits and incentives be put into place.”
Smith, a Bossier City Republican, says that there will be no mandates at all in the legislation. But, based on a preliminary outline released through her office, the policy package could repeal an old law that prohibits certain companies from receiving tax credits for clean-burning fuels used in a vehicle and possibly increase Louisiana’s current income tax credit for purchases or conversions of such vehicles.
Including conversions – meaning the upgrading of your present vehicle to CNG standards – in the legislation is a smart move, as there’s really only one ride in regular production that fits the bill. It’s the Honda Civic GX, which is in very limited production and requires placement on a waiting list. While it requires about 16 hours to fill up a nearly empty tank, it does get 36 miles-per-gallon on the highway. The GX has been labeled as the “cleanest internal-combustion vehicle on earth” by the U.S. Environmental Protection Agency. The price: about $25,100.
As for treading new ground, Louisiana isn’t quite there, but it would be among the few states that have taken serious stances on CNG. California, for instance, has a slew of incentives on the books, more than 100 filling stations in service and CNG is even used for public transportation. Utah, meanwhile, offers a subsidized system for its filling stations.
