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Make sure your next vehicle is powered by alternative fuel and there’s a chance the federal government will subsidize your transportation costs.

That’s what Sen. Bob Casey is proposing as part of a bill that also would provide rebates for school buses and transit buses that use alternative fuel.

Mr. Casey is expected to unveil his proposal tomorrow at the EQT natural gas fueling station on Smallman Street in Pittsburgh.

He wants to provide a tax credit of 50 cents per gallon for everyone who uses alternative fuels to power their vehicles.

His legislation also would provide a 30 percent rebate capped at $15,000 to school systems and public transit operations that buy buses that run on natural gas, liquid petroleum gas, hydrogen and fuel cells.

The bill also calls for an extension of a tax credit for installing non-residential infrastructure for refueling with alternative fuels. The credit is valued at 30 percent of the cost, up to $30,000. Those tax credits expired last year but Mr. Casey’s bill would be retroactive.

The intent is to improve availability of clean fuels, to reduce dependence on foreign oil, to provide energy choices, to create jobs in the energy sector and to utilize the nation’s natural gas resources.

The Congressional Budget Office hasn’t yet calculated the cost of implementing the legislation.

Republicans have been critical of Democrats’ efforts to boost natural gas production, saying the more supplies would result in prices that are too low to entice energy companies to invest.

Mr. Casey said that hasn’t been the case in Pennsylvania. "There’s been a huge economic benefit that we’re realizing," he said in an interview this evening.

 

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