LB 421 would provide a tax exemption for compressed natural gas (CNG) until the year 2015. Currently, CNG is subject to a tax of $0.26 per gasoline gallon equivalent (GGE). The five year window provided by this bill will help CNG establish itself as a mainstream fuel to power cars and trucks in Nebraska.

Natural gas burns cleaner and is an average of 40% cheaper than gasoline. It also is readily available domestically and from Canada; currently, 98% of natural gas consumed in the United States is produced in North America. CNG-powered vehicles can be part of the solution -- along side ethanol and electric power -- to our country’s transportation energy problems.