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January 22, 2015

Inhofe Meets with GM about NGVs, CAFE standards

WASHINGTON, D.C. — U.S. Sen. Jim Inhofe (R-Okla.) today met with General Motors (GM) to discuss how Corporate Average Fuel Economy (CAFE) standards are impacting automakers. GM provided an update on the impact of Inhofe’s provision in the Fiscal Year 2015 National Defense Authorization Act (NDAA) that streamlines regulations for the production of natural gas dual-fueled vehicles (NGV). 

“I am proud of GM and other automakers for investing in natural gas vehicle technology, allowing consumers to buy NGVs off the lot instead of having to convert vehicles after-market,” Inhofe said. "The CAFE program is broken and it needs to be reviewed by Congress.  I’m glad we were able to address in the last Congress a small portion of the inequality of the CAFE program with legislation that now will empower automakers to bring NGVs to the market more quickly. I am committed to helping the industry identify and remove red tape so that natural gas can become a mainstream transportation fuel, not just in Oklahoma, but across the nation.” 

On Dec. 12, the FY’15 NDAA passed congress and included a provision authored by Inhofe and former-Sen. Carl Levin (D-Mich.) to incentivize the production of NGVs. The provision was based of S.2065, the Alternative Fuel Vehicle Development Act, authored by Inhofe and Levin and first introduced on Feb. 28, 2014. 

The law allows automakers to earn credits for compliance with the CAFE program by producing alternative fuel dual-fueled vehicles, and are subject to a cap. Prior to the Inhofe-Levin provision, automakers earned the majority of their allowed credits by producing E85 Flex-Fuel vehicles, leaving none left for NGVs. Their provision modified the program by removing the credit cap for natural gas dual-fueled vehicles. 

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