Reid Report

The road to economic recovery won’t be quick and easy, but last week we took some big steps in the right direction. After working closely with the Obama Administration over the past several months, I am pleased that Nevada has scored major victories, which will create jobs  in our state and help struggling homeowners stay in their homes.

Last week, at my request, Secretary Salazar came to Nevada to join me in announcing the designation of solar energy zones in Nevada. Our state can provide power to millions of Americans, and create thousands of jobs in Nevada by harnessing solar energy. After meeting with Secretary Salazar in Las Vegas, I convened my Blue Ribbon Energy Panel to discuss our state’s clean energy future and chart our progress. Just yesterday, I announced the 2nd Annual National Clean Energy Summit in Las Vegas on August 10-11. I truly believe that harnessing our state’s clean energy resources will provide jobs for decades to come, just as mining our hard rock resources has provided jobs throughout our history and today. 

Tourism is responsible for a quarter of a million jobs in Nevada, and one in four visitors to Las Vegas comes from Southern California, yet there is no high speed rail connecting us. I have been fighting for years to have the federal government designate a railroad corridor to encourage visitors from Southern California to travel to our state, because I know it will create jobs.  Last week, Secretary LaHood joined me in Las Vegas to announce that Nevadans have won this fight. This victory comes at a time when we desperately need the jobs that will be created by rail construction and increased tourism.

The other major factor in Nevada’s economic recovery is stabilizing the housing market by keeping families in their homes. Nevada has the worst foreclosure rate in the nation, but too many troubled homeowners don’t qualify for federal assistance because their problems were too severe! I have been fighting for months to change this policy and help Nevadans struggling under the weight of foreclosure. Last Wednesday, Secretary Donovan joined me in Las Vegas to announce an increase in the loan-to-value eligibility for homeowners who wish to participate in the Making Home Affordable refinance program. Under this program, Nevadans who owe up to 125 percent of the current value of their homes can now qualify for refinancing.  This is one important step in helping to stabilize the housing market in Nevada.

These are important measures, but they won’t solve Nevada’s problems overnight, however they will help us climb out of this hole we’re in and get us back on the road to recovery. As I spent Independence Day in Boulder City, I saw Nevadans hopeful and optimistic for our future.

Reid, Menendez, Hatch, Pickens Announce New Proposal For Clean Natural Gas Vehicles

Nevada Senator Harry Reid, Senator Robert Menendez, Senator Orrin Hatch and T. Boone Pickens announced the introduction of legislation supporting vehicles that run on clean natural gas. The NAT GAS Act is sponsored by Senator Menendez, with Senators Reid and Hatch as original co-sponsors.

“Each day, our nation consumes about 21 million barrels of oil- more than 25 percent of the world’s oil supply,” Reid said. “Nearly 70 percent is imported from outside our borders.  With only 3 percent of the world’s oil reserves, we cannot produce our way to a safe and secure energy future. I’m proud to join with Senators Menendez and Hatch in introducing legislation that will help encourage the development of natural gas vehicles to help save consumers and operators thousands of dollars per year, protect our environment, and decrease our dependence on foreign energy. We must get serious about using cleaner burning natural gas and renewable energy, and this legislation is a strong step in the right direction.”

Said Menendez: “We saw last summer how the wild fluctuations in oil prices helped to wreck our economy and we’ve seen how pollutants from dirty fuels are wrecking our planet. Our economic crisis has shined a spotlight on the urgent need for alternative, cleaner and cheaper sources of energy that we don’t have to import. By making it easier and cheaper to own a vehicle that runs on natural gas, we can help families save money on energy, create new manufacturing jobs and clean our air.”

"Natural gas is an important alternative fuel to help pave the way to energy independence, which will not only help keep us safer, but will also help reduce the high cost of fuel and, thus, high utility bills across the board,” Hatch said. “In our current economic downturn, it’s crucial to provide appropriate incentives that lead to lower prices for all Americans. This piece of legislation does just that while also helping clean up our environment; I am a proud cosponsor.”

Said Pickens: “I am proud to stand with Senator Menendez and co-sponsors Majority Leader Reid and Senator Hatch in support of this important natural gas legislation. This bipartisan legislation does more to reduce our foreign oil dependency crisis than any other piece of legislation in the past 40 years. As I have said many times before and will continue to say, natural gas is cleaner, cheaper, it’s abundant and it’s American. This bill will accelerate the use of natural gas in vehicles and is the only way I know to quickly and effectively reduce our dependence on foreign oil. For too long, our dependence on foreign oil has been one of the factors influencing our foreign policy and if we can eliminate that issue by using our own domestic natural gas resources I am confident that it will benefit our national security, our economy and the environment.”

Background on legislation

• Extends for 10 years the alternative fuel credits for natural gas used as a vehicle fuel, the purchase of natural gas-fueled vehicle, and the installation of natural gas vehicle refueling property credit

• Expands and modify the alternative fueled vehicle and refueling property tax credits as follows:
  • Makes all dedicated natural gas-fueled vehicles eligible for a credit equal to 80% of the vehicle’s incremental cost. Only some dedicated natural gas vehicles currently can qualify for an 80% federal tax credit
  • Makes all bi-fuel natural gas-fueled vehicles eligible for a credit equal to 50% of the vehicle’s incremental cost.  This is the first time bi-fuel vehicles would be eligible for a federal tax credit
  • Increase the allowable incremental cost limits to more accurately reflect the cost of producing or converting natural gas vehicles:
    • For light-duty vehicle, the purchase tax credit cap would be increased by to $12,500 (currently $5,000)
    • For all other vehicle weight classes, the purchase tax credit cap would be doubled
  • Increases the refueling property tax credit from $50,000 to $100,000 per station

• Allows the natural gas vehicle and natural gas fueling infrastructure credits  to be transferred by the taxpayer back to the seller or to the lessor

• Allows state and local governmental entities to issue tax exempt bonds in order to finance natural gas vehicle projects

• Allows 100% of the cost of a natural gas vehicle manufacturing facility that is placed in service before January 1, 2015 to be expensed and to be treated as a deduction in the taxable year in which the facility was placed in service.  This decreases to 50% after December 31, 2014 and is phased out by January 1, 2020

• Requires that when complying with mandatory federal fleet alternative fuel vehicle purchase requirements, federal agencies shall purchase dedicated alternative fuel vehicles unless the agency can show that alternative fuel is unavailable or that purchasing such vehicles would be impractical

• Provides for grants for light- and heavy-duty natural gas engine development

Background on natural gas

·         According to the EPA, cars running on natural gas cut overall toxic emissions by 93-95 percent

·         Natural gas is an abundant resource, with 98% of natural gas used in the U.S. originating right here in North America

·         There are nearly 10 million natural gas vehicles in the world

·         Natural gas has the ability to displace 100 percent of the petroleum used in heavy-duty vehicles.