1.
 

For the MEMA Group!

Tax Credits Extended Yesterday, the President signed into law H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. Earlier in the week, the Senate passed the bill by a vote of 81 to 19 and the House of Representatives passed the bill 277-148. This tax bill was the result of negotiations between President Obama and Republicans, and will extend the 2001 and 2003 income tax cuts for all families for two years and unemployment benefits for one year. Among the these and other major provision, the bill includes some major provisions that are very beneficial to the NGV industry:

The fuel credit was extended. The bill extends until December 31, 2011 the $0.50 fuel credit for CNG and LNG when used as a transportation fuel. As expected, the extension is made retroactive back to January 1, 2010. The $0.50 tax credit for CNG and LNG had expired at the end of 2009. The tax bill includes special instructions directing NGVAmerica Newsletter 12/20/2010 the Treasury Department to develop procedures allowing for a one-time claim for any fuel used or sold in 2010.

The fueling station (infrastructure) credit was extended. The bill extends for one year the tax credit for natural gas fueling infrastructure. The extension is for 30 percent of the cost of qualified equipment up to a maximum of $30,000 and $1,000 for non-business property (i.e., home refueling). The tax credit is 30 percent and not 50 percent because Congress extended the tax credit as originally enacted in 2005 -- not according to the increased level enacted as part of the 2009 TARP legislation. The bill also allows for 100 expensing of the infrastructure costs, and it is our understanding that the tax credit may be taken along with a 100 percent expensing. This means that a taxpayer could claim up to a $30,000 tax credit for new natural gas fueling infrastructure and then expense the remaining cost (cost of station less tax credit amount of $30,000) all in the first year. The 100 percent expensing provision is good for equipment placed in service after September 8, 2010.

The vehicle credit was NOT Despite repeated and substantial efforts by many of you with Congress, the income tax credit for the purchase of NGVs was not extended. However, there is some good news relating to tax treatment of new NGVs. The bill allows taxpayers to expense 100 percent of the cost of new capital expenditures. This means that businesses purchasing NGVs will be able to write-off the full cost of buying such vehicles in the first year instead of depreciating them over five or more years. The expensing provision does not help tax-exempt entities or private consumers who purchase NGVs (unless they can depreciate them). The 100 percent depreciation provision also applies to equipment placed in service after September 8, 2010. Thanks to all companies that helped lobby for these extensions and the NAT GAS Act. We already are making plans for the introduction of a new NAT GAS Act once the new Congress convenes.

 2.
Here is a brand new guide from the Department of Energy's Clean Cities Program on alternative fuel commercial mowers. Please check this out and pass it on to commercial landscapers or fleets you know that have mowers.

This 16-page booklet features pictures and specs of mowers powered by electricity, natural gas, and propane and includes information about using biodiesel in mowers or converting mowers to run on alternative fuels. A Special Considerations section on page 14 also lists cautions to consider when using alternative fuels in mowers.

The guide can be downloaded at www.afdc.energy.gov/afdc/pdfs/48369.pdf

This document is helpful for organizations that are already using alternative fuels in their vehicles and have an alternative fuel supply or electric charging in place and can encourage organizations to try alternative fuels in off-road equipment like lawn mowers.



 3.
Hello MEMA Members,

The EPA just recently announced a proposal for DERA (Diesel Emission Reduction Act). MEMA is considering submitting a proposal on behalf of its members, if there is enough participation.

The information below will go into the background of the program, the type of projects fundable, and the amount of money for each project. MEMA is looking at exhaust controls (Diesel Particulate Filters, Oxidation Catalysts, etc), Idle Reduction, and Vehicle/Equipment Replacements.

If your agency is interested in participating, please fill out the attached Excel spread sheet and return to Jannet Malig @ jmalig@Cerritos.edu no later than MONDAY, NOVEMBER 22nd by 5:00 p.m. There is an EXAMPLE of each project. Feel free to delete the example and fill in your OWN information. Also, an agencies is allowed to participate/submit two proposals, so if an agency is already considering submitting their own, participating in MEMA should not affect their other proposal. If there are any questions, feel free to contact Allison Ellingson @ 951-283-3200.

Eligible Projects and Funding Breakdown:

- Early Replacement of engines or vehicles (incremental cleaner technology costs only - see Request for Proposals) @ 25% of   incremental cost
- Exhaust Control Devices such as DPFs, oxidation catalyst @ 100% funding
- Idle Reduction Projects @ 50% available funding or 100% available funding if combined with an Exhaust Control Device.

Background:
The National Clean Diesel Funding Assistance Program provides funding to reduce emissions from existing diesel engines through a
variety of strategies, including but not limited to: add-on emission control retrofit technologies; idle reduction technologies; cleaner
fuel use; engine repowers; engine upgrades; and/or vehicle or equipment replacement; and the creation of innovative finance
programs to fund diesel emissions reduction projects. Under this grant program, funding is restricted to the use of EPA and
California Air Resources Board (CARB) verified and certified diesel emission reduction technologies.

Eligible Applicants:
- U.S. regional, state, local or tribal agencies/consortia or port authorities with jurisdiction over transportation or air quality
- Nonprofit organizations or institutions that represent or provide pollution reduction or educational services to people or organizations that own or operate diesel fleets; or have, as their principal purpose, the promotion of transportation or air quality
- School districts, municipalities, metropolitan planning organizations (MPOs), cities and counties are all eligible entities under this assistance agreement program to the extent that they fall within the definition above.

Eligible Use of Funding
The following types of fleets qualify for funding:
- Buses
- Medium or heavy duty trucks
- Marine engines
- Locomotives
- Non-road engines or vehicles used in:
construction
handling of cargo (including at a port or airport)
agriculture
mining
energy production (including stationary generators and pumps)

Examples of verified retrofit technologies
Diesel Oxidation Catalysts
Diesel Particulate Matter Filters (wall or flow-through)
Closed Crank Case Ventilation Systems
Biodiesel
Engine Upgrade Kits

Examples of verified idle reduction technologies
Auxiliary power units
Electrified parking spaces (truck stop electrification)
Shore connection systems and alternative maritime power
Shore connection systems for locomotives
Automatic shutdown/start-up systems for locomotives
Note: Equipment that is used for testing emissions and/or fueling
infrastructure costs is not eligible for funding. Pursuant to
Section 792(d)(2) of the EPAct of 2005, no funds awarded under this
program shall be used to fund the costs of emissions reductions that
are mandated under Federal, state or local law.


The direct link to the FY2011 DERA RFP is here (it's a PDF so you will need to have the free Adobe Acrobat reader installed to view/print the
RFP:    www.epa.gov/air/grants/rfp-epa-oar-otaq-11-01.pdf


 4.
This FREE EV Event is being sponsored by the South Coast AQMD.

Attached for your information and distribution is the Save the date card for the EV 101 workshop on Dec. 9 in Carson and the registration link. There is no cost to attend but registration is required..
    www.aqmd.gov/tao/EV101/registration_form.htm