[Congressional Record Volume 158, Number 41 (Tuesday, March 13, 2012)]
[Senate]
[Pages S1591-S1592]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              NAT GAS ACT

  Mr. MENENDEZ. Mr. President, I have come to the floor to talk about 
an amendment I will offer later today--the NAT GAS Act.
  What if I were to tell the Chair there was a transportation fuel that 
is over $1.50 cheaper than gasoline and roughly $2 cheaper than diesel? 
What if I were to tell the Chair this fuel is also cleaner and has 
fewer smog-causing pollutants than diesel and, if wisely used, could 
reduce the cases of asthma and lung cancer?
  What if I were to tell the Chair this fuel is abundant right here in 
America, so much so that we may soon become one of the world's largest 
exporters of this fuel? I think I might hear him say: Sign me up. What 
is the name of this wonderful fuel? The name of this fuel is natural 
gas.
  We can see in this chart that as gasoline prices are already 
skyrocketing toward $4 per gallon, the price of compressed natural gas 
is barely above $2 equivalent. Natural gas prices used to follow oil 
prices, but now they are on their own stable, inexpensive price levels. 
The same holds true for liquefied natural gas. As we can see, gas 
prices here, liquefied natural gas down here. Diesel prices now exceed 
$4, and LNG is still hovering around a $2 equivalent
  Why aren't we all driving around in natural gas vehicles, paying a 
little over $2 per gallon equivalent? The reason this inexpensive fuel 
is not widely used is because there are not many natural gas vehicles 
in the United States, and there are also very few places to refuel. 
Currently, there are nearly 14 million natural gas vehicles in the 
world but only about 117,000 in the United States. The car and truck 
manufacturers want to see that the natural gas utilities will invest in 
refueling infrastructure, and the natural gas utilities want to see 
more natural gas vehicles on the road. It is a classic chicken-or-the-
egg problem.
  What both the manufacturers and the utilities need to see is a strong 
stance by the Federal Government to jump-start this market.
  The NAT GAS Act will do that by jump-starting the industry and, in 10 
years, add over 700,000 natural gas vehicles to our roads and help 
incentivize the installation of refueling stations around the Nation. 
In addition, it is estimated the bill will displace over 20 billion 
gallons of petroleum fuel and create over 1 million direct and indirect 
jobs.
  I know what some of my colleagues are thinking: Isn't this just 
another handout to energy companies? The answer to that question is a 
resounding no. This legislation is fully paid for with a small fee on 
natural gas used as a vehicle fuel. As I mentioned earlier, natural gas 
is over $1.50 cheaper than gasoline or diesel. This amendment would use 
some of those savings to help overcome the market barriers for natural 
gas vehicles and supporting infrastructure. The fee starts at 2.5 cents 
per gallon equivalent in 2014 and grows to be 12.5 cents in 2020 and 
2021. In 2022, the fee is eliminated. In this way, we can still keep 
natural gas less expensive than other fuel options, while investing in 
infrastructure to help grow the market, make natural gas vehicles 
cheaper, and put the industry on a path to flourish on its own.
  While the legislation itself is designed to provide a temporary 
boost, it is important to note that the natural gas supplies we are 
sitting on are enormous. North America's natural gas resource 
discoveries have more than doubled over the past 4 years, meaning that 
at the current rate of consumption, this resource could supply current 
consumption for over 100 years. If we do not use our natural gas here 
in America, it will be exported abroad, benefiting consumers in other 
countries, while American families will continue to pay higher prices 
at the pump. Already, one U.S. facility has received a permit to export 
natural gas and four more are following suit. We can use that natural 
gas in the United States to displace oil. We are sending trillions of 
dollars abroad to countries that are despotic and wish us ill or we can 
export it so other countries can gain the benefits. I say we use it 
here.
  The NAT GAS Act will also increase our Nation's energy independence 
and make us less dependent on regimes that do not have America's 
interests at heart. This is especially important at a time when Iran is 
attempting to develop a nuclear weapon and is threatening to block oil 
supplies. Natural gas is not the only solution, but it can be an 
important part of a solution that will allow us to ignore future OPEC 
threats because we have alternatives to

[[Page S1592]]

oil. But until we get to that point, we need to do all we can to 
supplant oil.
  It is also important to note that natural gas vehicles are an 
important way to improve air quality. According to the EPA, natural gas 
as a vehicle fuel has very low emissions of ozone-forming hydrocarbons, 
toxins, and carbon monoxide. By producing less of these harmful 
emissions, natural gas vehicles can reduce smog in our cities and lower 
incidents of asthma and lung cancer. These health benefits are one 
reason why Los Angeles County has made almost its entire fleet of 2,200 
buses run on compressed natural gas.
  Let me talk about one issue some are concerned about. While natural 
gas vehicles can have important environmental and health benefits, we 
must also keep in mind that natural gas is still a fossil fuel and 
there are serious risks that need to be weighed when it is extracted. 
For that reason, I think we need to do better to regulate a practice 
called fracking. I also believe these risks mean that certain 
environmentally sensitive areas remain off-limits for fracking, and I 
will continue to work with my colleagues, such as Senator Casey, to 
better formulate Federal rules to protect our drinking water from 
possible contamination. At the same time, we should not kid ourselves. 
This amendment will not cause natural gas vehicles to be the main 
driver of natural gas demand, and fracking is used to extract oil as 
well. So voting against this amendment will not reduce the amount of 
fracking.
  We cannot let this opportunity to use this cheaper fuel to increase 
our energy security, improve our air quality, and relieve the pain at 
the pump slip by. It is time to put in place the temporary, fully paid 
for incentives of the NAT GAS Act to allow the natural gas vehicle 
industry to flourish. Remember, if one votes against this amendment, 
they cannot go home and tell their constituents that they have done 
everything they can to reduce gas prices.
  I hope our colleagues will join us when the time comes to offer the 
amendment on the floor and to support it.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mrs. HUTCHISON. Mr. President, I ask unanimous consent the order for 
the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.

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