The House Environmental Resources and Energy and Finance Committees this week approved a package of eight bills offering incentives to vehicle and transit systems incentives for converting to natural gas.

Rep. Ron Miller (R-York), Majority Chair of the House Environmental Committee, offered amendments to each of the five bills in his committee changing the source of funding for the incentives from DCNR’s Oil and Gas Lease Fund, DEP’s Clean Air Fund and the Alternative Fuels Incentive Program to the Utility Gross Receipts Tax.

=The bills include--

-- House Bill 302 (Moul-R-Adams) transferring funds from the Oil and Gas Lease Fund to DEP for a competitive grant program to convert small mass transit bus fleets to natural gas (amended to change the source of funds to the Gross Receipts Tax);

-- House Bill 303 (Moul-R-Adams) transferring funds from the Oil and Gas Lease Fund to DEP for a competitive grant program to convert large mass transit fleets to natural gas (amended to change the source of funds to the Gross Receipts Tax);

-- House Bill 306 (Pickett-R- Bradford) redirecting the Alternative Fuels Incentive Fund to create the Keystone Fuel Incentive Program to fund conversions of vehicles to natural gas (amended to keep the Alternative Fuels Incentive Fund intact);

-- House Bill 307 (Evankovich-R- Armstrong) amending the Air Pollution Control Act to eliminate duplication of certification for natural gas vehicles; and

-- House Bill 308 (Saylor-R-York) redirecting $6 million annually from the Clean Air Fund to finance vehicle conversions to natural gas (amended to change the source of funds to the Gross Receipts Tax).

“The Marcellus Shale industry becomes a true asset only if we unlock the means to put this abundant natural resource into use,” said Rep. Miller. “This package of legislation, and the Marcellus Works package in general, will serve as the stimulus for individuals and industry to fully employ natural gas and reduce transportation costs.”

Rep. Miller emphasized the need to put this legislation into law as soon as possible, citing compressed natural gas (CNG) vehicles being 15 percent more cost effective over the life of the vehicle than their gasoline-powered counterparts.

“CNG vehicles are slowly making their way into the market, but the effort will stall without the necessary infrastructure,” he commented. ”Who is going to purchase one of these cars if we remain stuck with only seven CNG filling stations in the Commonwealth?

“These incentives will lead to increased demand for natural gas, which will in turn create jobs in the infrastructure and service sectors, in addition to reducing our dependence on foreign oil,” continued Rep. Miller. “Marcellus Works is a vehicle for energy independence that will create new avenues in the effort to address what, to this point, has been a jobless economic recovery.”

The five bills were reported from the Committee and Tabled on the House Floor.

The House Finance Committee approved three bills creating $60 million in tax credits to convert to natural gas--

-- House Bill 301 (Saylor-R-York) providing for $25 million in natural gas vehicle fleet tax credits, -- House Bill 305 (Denlinger-R-Lancaster) providing for $5 million in natural gas corridor tax -- credits; and

-- House Bill 309 (Grove-R-York) providing for $30 million in natural gas vehicle tax credits were all amended and reported from the House Finance Committee and are now on the House Calendar for action.

“Natural gas is a homegrown, clean-burning energy source that we are producing right here in Pennsylvania,” said Rep. Kerry Benninghoff (R-Mifflin), Majority Chair of the Finance Committee.  “If we are serious about energy independence, then we need to look for ways to better use our domestic energy sources.  Running vehicles on Pennsylvania natural gas makes a lot more sense to me than running them on oil from countries that don’t like us very much.”

“We need natural gas-powered vehicles and we need stations for them to refuel,” Rep. Benninghoff said.  “These bills address the situation from both angles.  The job creation potential through both building the vehicles and the fuel stations is tremendous.  Obviously, the fuel stations will require significant construction work.  The vehicles will require natural gas-powered engines and I’d love to see those built here in the Commonwealth.”

The tax credit bills are now on the House Calendar for action.

NewsClips:

House Committee OKs Natural Gas Conversion Tax Credits

Editorial: Say No To Gas Industry Subsidies

4/15/2013