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4.3.3 Battery Electric Vehicle Production Incentives Government support for PHEVs and PEVs include tax credits (up to $7,500 per vehicle purchased), the federal loan guarantee program for battery and vehicle manufacturing facilities, and Recovery Act stimulus grants.133 Depending on the location of purchase and intended use, local, regional, and state-level incentives may be available also. 4.3.4 Hydrogen Fuel Cell Vehicle Research Funding and Production Incentives FCEVs receive R&D funding from the federal government. Areas of research include hydrogen production and delivery, storage, fuel cell technology, safety codes and standards, and advanced manufacturing techniques. Tax credits are available for hydrogen production and fuel blending, infrastructure projects, and FCEV purchases.134 4.3.5 Natural Gas Vehicles and Infrastructure Incentives Federal support is currently quite limited, but the Obama administration has indicated its support for a tax credit to incentivize NGV purchases.135 Local and state-level incentives do exist, many of which are quite substantial and include infrastructure grants, vehicle purchase rebates and tax credits, and loan programs.136 At least 15 states currently authorize special tariffs for natural gas sold by LDCs as CNG transportation fuel. In a few of these states, LDCs are allowed to rate base and recover their capital costs for installing CNG fueling equipment. 4.4 NaturalGasPathwaysintheTransportationSector Abundant, low-cost natural gas presents opportunities to accelerate market penetration of not only CNG and LNG fuels, but also alternative fuels. The various potential pathways for utilization all have unique characteristics, barriers to deployment, and implications for the economy at large. Figure 10 is a simplified visual framework for the potential resources, pathways, and end-uses of natural gas in the transportation sector. 4.4.1 Direct Use CNG or LNG can be burned directly in NGVs or in bi-fuel vehicles able to utilize both CNG and gasoline. In the realm of LDVs, the only commercially available dedicated natural gas car is the Honda Civic GX NGll. However, many major car companies, including Ford and Chevrolet, are releasing pickup trucks with bi-fuel gasoline–CNG engines in their 2013 fleets.137 These trucks are designed to use the inexpensive CNG first before using gasoline. While an incremental cost of $11,000 over its gasoline-only counterpart may deter consumers, the flexibility to use gasoline, the spread between CNG and gasoline costs, and the potential for inexpensive at-home refueling may shift the decision of some potential buyers. Increased adoption could lead to lower incremental costs due to gained economies of scale. Bi-fuel gasoline–natural gas vehicles may serve as a bridge technology to ease consumer adoption issues, encourage refueling infrastructure build out, and facilitate a larger penetration of light-duty NGVs. ll Some light-duty NGV owners undergo aftermarket retrofitting. 33PDF Image | Opportunities Synergy Natural Gas and Renewable Energy
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