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Dear Representative Boren:
On behalf of the American Public Transportation Association (APTA) and its nearly 1,500 member organizations, I write to express our support of H.R. 1835, the New Alternative Transportation to Give Americans Solutions Act of 2009.
The legislation would extend through 2027 the 50 cent per gasoline gallon equivalent (gge) tax credit for natural gas (both CNG and LNG). It would also extend and expand the tax credits for the fueling infrastructure necessary to facilitate CNG utilization. Public transportation agencies that utilize natural gas for a portion or all of their fleet fueling needs have experienced significant budget savings from this provision. Lower fueling costs enable improvements elsewhere in an agency’s service and operations.
As part of our package of legislative proposals for surface transportation authorization, APTA’s members are urging that the current tax credit for CNG be made permanent. This new law should make clear that all vehicles used by public transportation systems, including staff and other agency vehicles are eligible for the tax credit.
America’s public transportation providers utilize a diverse set of fuel and power sources. Each individual system has its own unique needs and policies determined by their local boards and communities. APTA has long advocated for the extension of tax provisions such as this one as these provisions improve the affordability and diversity of agency fueling options.
By extending these tax provisions, public transportation can continue to meet the needs of its growing ridership (10.7 billion rides in 2008), while doing its part to combat global warming by reducing the emission of harmful greenhouse gases. Further, extending the CNG tax credit signifies that we are committed to a long-term strategy for energy security.
If you have questions about these views, please have your staff contact Paul Dean of APTA's Government Affairs Department at (202) 496-4887 or email email@example.com.
William W. Millar