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LEGISLATION INTRODUCED TO PROVIDE INCENTIVES FOR NGVS

Sen. Jim Inhofe (R-OK) and Sen. Carl Levin (D-MI) recently introduced the Alternative Fuel Vehicle Development Act (S.2065), a bill that would incentivize the production and purchase of natural gas and other alternative fuel vehicles. The legislation would incentivize automakers to bring NGVs to the market more quickly by streamlining regulations and removing red tape with which automakers currently must comply. Current law allows automakers to earn credits for compliance with the CAFE program by producing alternative fuel dual-fueled vehicles, but these credits are subject to a cap. Today, automakers earn the majority of their allowed credits by producing E85 Flex- Fuel vehicles, leaving none for more advanced alternative fuel vehicles, such as NGVs. The bill modifies the program by removing the credit cap for natural gas and other alternative fuel vehicles, excluding E85 Flex Fuel Vehicles, which will help to encourage the production of more advanced alternative fuel vehicles. The legislation would also encourage the purchase of natural gas and other alternative fuel vehicles by giving states the option of allowing these vehicles to use high-occupancy vehicle (HOV) lanes without passenger restrictions. Efforts like these will help increase customer acceptance of advanced technologies, and NGVAmerica commends the Senators for their initiative and looks forward to working with them on this legislation.