About 5 million barrels of oil per day, one third of the petroleum consumed in the US, is imported from OPEC countries. OPEC countries include Iran, Libya, Nigeria, Saudi Arabia, Venezuela, and other unfriendly regimes. Petroleum is predominantly used as diesel and gasoline for transportation. Achieving energy security means we must reduce our consumption of diesel and gasoline.

In response to these pressures, on May 11^th, 2010 Senators John Kerry (D-MA) and Joe Lieberman (I-CT) introduced the American Power Act (APA), a broad legislative effort to address US energy policy, greenhouse gas emissions and energy sector jobs.

The Pickens Plan is a straightforward road map to energy security that encourages trucking (and other) fleets to use natural gas fuel instead of diesel. Why the focus on trucking fleets? Trucking fleets consume tremendous amounts of fuel per vehicle compared to passenger cars. With many trucking operations operating in localized areas (local pickup and delivery, port drayage, and corridor shipping) they can easily be served by a small number of strategically placed fueling stations, allowing infrastructure to be deployed rapidly. Another factor that makes trucking an obvious target for natural gas adoption can be found in how carriers routinely turn over their trucks, allowing them to introduce natural gas vehicles to their fleet incrementally.

The supply chain is under extreme pressure to reduce carbon emissions. Compared to diesel, natural gas reduces carbon by over 20% - up to 90% in the case of renewable biogas. It's also been pointed out that having a competing fuel on the market will help keep diesel prices in check by reducing demand and inserting competition that does not exist today. Last but not least, our country will benefit from the lower cost of fuel and with jobs created in the USA.

Now, what does the American Power Act do for natural gas vehicles? Incentives are provided to industry to deploy natural gas vehicles. Tax credits that exist today will be extended for 10 years and in some cases increased. Heavy duty trucks currently have a maximum $32,000 tax credit. The new tax credit will be up to 80% of the incremental cost of the natural gas truck with a maximum credit of $64,000. Since the incremental cost of a natural gas truck is quite reasonable, the actual tax credit will be less than $64,000 in most cases. The amount of the vehicle purchase tax credit is indexed to the vehicle class from light duty to heavy duty. Public agencies will be able to take advantage of the tax credit for their natural gas vehicle purchases.

The American Power Act has other provisions to encourage natural gas vehicles. Vehicle manufacturers will be eligible for a tax credit for their jobs-producing manufacturing facilities. Incentives will apply to dedicated natural gas vehicles, mixed fuel vehicles (engines using a mixture of natural gas and diesel or gasoline), and bi-fuel vehicles (engines that can use either natural gas or diesel/gasoline). The bill contains other technical provisions to help improve access to the tax credits.

These provisions of the American Power Act are vitally important to help natural gas vehicles bridge the gap in today's marketplace. The incentives are temporary so industry has the opportunity to develop economies of scale, infrastructure, and acceptance in order to compete without incentives. The choice is quite simple. Five years from now, do you want the USA to: (a) continue to export our wealth to OPEC; or (b) have a robust and flourishing alternative that keeps our money in the USA and grows American jobs?