NAT GAS Act “Benefits” Only Half of the Equation

Jul 21, 2011 |

The NAT GAS Act is flawed for a number of reasons. For starters, it is expensive. Even though “an official budget estimate has yet to be conducted” [ii] champions of the bill put the cost of the subsidies to the taxpayer at $5 billion over five years. That would put 140,000 commercial natural gas trucks and the necessary fueling stations into operation. However, add in the cost of the passenger vehicle subsidy at an assumed sales rate of one million natural gas cars and 100,000 small natural gas trucks each year, and the price tag would be $13.8 billion per year, without counting the bigger subsidies for large trucks and filling stations. [iii]

But the problems with the NAT GAS Act are far larger than a few billion dollars. The entire point of the NAT GAS Act is to get people to do something that they would not do with their own money. After all, there are natural gas cars currently available and it’s possible to retrofit large trucks to run on natural gas right now without the government stepping in. But people aren’t doing so in the numbers the promoters of the NAT GAS Act would like because it’s cost prohibitive.

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