Natural Gas As A Transportation Fuel

• Since Boone Pickens plan was announced, there have been two proposals in the U.S. Congress to increase the use of natural gas as a transportation fuel. One of the proposals by Rep. Rahm Emanuel (D-Illinois) is to compel automakers to make 10% of their fleet vehicles to run on natural gas by 2018. His proposal also includes incentives and tax credits that will encourage gas station owners to install CNG pumps. His proposal also calls for major oil companies to install at least one CNG pump in each station by 2018. Senator Inhofe (R-Okla.) has a proposal to expand the definition in the Renewable Fuels Standard to allow the use of compressed natural gas (CNG) to meet the required mandates. He also wants the Environmental Protection Agency (EPA) to streamline regulation and permits required for the conversion of vehicles to compressed natural gas (CNG). EPA, under the Energy Independence and Security Act of 2007 is responsible for revising and implementing regulations to ensure that gasoline sold in the United States contains a minimum volume of renewable fuel. The Renewable Fuel Standard program will increase the volume of renewable fuel (bio-fuel) required to be blended into gasoline from 9 billion gallons in 2008 to 36 billion gallons by 2022.

• Many sources believe that President Bush’s call for the use of 36 billion gallons of renewable fuels such as ethanol and bio-diesel by 2022 can not be achieved and various groups are recommending natural gas as an alternative transportation fuel. Natural Gas Vehicles for America has more than 100 companies interested in the promotion and use of natural gas and hydrogen as transportation fuel. One of the primary benefits is the potential to substantionally reduce exhaust emissions of harmful pollutants. Currently, less than 1% of the U.S. vehicles are on CNG. Average growth in natural gas vehicles worldwide since 2000 has been 31% per year compared to 4% in the U.S. In terms of refueling, there are currently 1,500 natural gas refueling stations in the U.S.with over half of them open to the public. Natural gas vehicles as they exist today are best suited for large fleets of vehicles such as taxicabs, transit and school buses, construction vehicles, garbage trucks, delivery truck and public works vehicles.

• Commentary – I am not in favor of forcing gas station owners to install CNG pumps or forcing automakers to make natural gas cars. I would prefer to see a tax rebate and incentives program to encourage the use of natural gas vehicles. The federal, state and local government can force or mandate that a certain percentage of new fleet vehicles use natural gas. If there is a demand for these vehicles the industry will respond. As far as President Bush’s goal, I agree with Senator Inhofe that compressed natural gas as an alternative fuel should be allowed to meet the new mandates. Currently, CNG is sold on a gallon of gasoline energy equivalent or GGE and the price varies from $1.00/ GGE in Oklahoma to $2.60/GGE in California. The lower price of CNG could result in significant economic savings for the consumer. As far as solving the limited range of natural gas vehicles, automakers could make “dual-fuel” vehicles by adding a natural gas tank and fuel system to an existing gasoline or flex-fuel (E-85 ethanol) vehicle.