WHAT IS THE 'New Alternative Transportation to Give Americans Solutions Act of 2011'

The New Alternative Transportation to Give Americans Solutions Act of 2011 was a bipartisan proposal that amended the Internal Revenue Code of 1986 to encourage more domestic production, alternative energy investments and corresponding job creation. It also became known as the NATGAS Act.

BREAKING DOWN THE 'New Alternative Transportation to Give Americans Solutions Act of 2011'

The New Alternative Transportation to Give Americans Solutions Act of 2011's provisions included the following:

  • Created an excise tax credit through 2016 for alternative fuels involving compressed or liquefied natural gas.
  • Created an income tax credit through 2016 for vehicles powered by compressed or liquefied natural gas.
  • Changed the tax credit percentage for vehicles fueled by natural gas or liquefied natural gas.
  • Allowed a new tax credit for the production of certain vehicles.
  • Extended tax credits through 2016 for property used in refueling vehicles fueled by compressed or liquefied natural gas.

The act provided tax credits to encourage investments in compressed, natural and liquefied natural gas, and it required the U.S. Secretary of Energy to provide funding to support alternative energy. In addition, the act authorized the Secretary of Energy to make grants to manufacturers of light and heavy-duty natural gas vehicles to develop reduced-emission engines, improve performance and efficiency, and lower costs.

The act also indicated that Congress preferred the Environmental Protection Agency (EPA) streamline the process for certification of natural gas vehicle retrofit kits to promote energy security and incentivize manufacturers who produce natural gas powered vehicles. In addition, the act amended the Energy Policy Act of 1992 to allocate funds for vehicles that are repowered or converted to operate on an alternative fuel.

The Pickens Plan

A large bipartisan coalition introduced the New Alternative Transportation to Give Americans Solutions Act of 2011, many of whom were backers of the Pickens Plan. Proffered by energy hedge funder and philanthropist T. Boone Pickens, there were several main components to the Pickens Plan:

  • Use the country’s abundant natural gas to replace imported oil as a principal transportation fuel for fleets and heavy-duty trucks.
  • Build a 21st century electrical transmission grid.
  • Develop a vast supply of renewable energy sources, including wind and solar power.
  • Increase energy efficiency in home and commercial buildings with technology improvements and upgrading insulation.

Broadly, the goal of the Pickens Plan was to raise awareness about which alternative energy resources the U.S. could use and to take a long-term view of fuel’s role in the nation's economy and our daily lives.

RELATED TERMS
  1. Alternative Motor Vehicle Credit

    The alternative motor vehicle credit is a tax credit for buying ...
  2. Natural Gas ETF

    A natural gas ETF is an exchange-traded fund designed as a commodity ...
  3. United States Natural Gas Fund ...

    The United States Natural Gas Fund (UNG) is an exchange-traded ...
  4. Energy ETFs

    Energy ETFs are a broad class of ETFs that includes funds focused ...
  5. Alternative Investment

    An alternative investment is an atypical asset not traditionally ...
  6. Energy Sector

    The energy sector is a category of stocks that relate to producing ...
Related Articles
  1. Investing

    A Look Inside The Natural Gas Pipeline

    The United States is the Saudi Arabia of natural gas, but natural gas stocks were a mixed bag last year.
  2. Insights

    Top 5 Positions in T. Boone Pickens' Portfolio

    Learn about the top five positions in T. Boon Pickens' portfolio and how they're performing.
  3. Investing

    Clean Energy Puts the Squeeze on Natural Gas

    Clean energy sources are crimping natural gas, but fossil fuels still have a major foothold on the global energy market.
  4. Investing

    Do Natural Gas Prices Always Follow Oil Trends?

    Prices for oil and natural gas are highly correlated. But investors should be aware of different factors affecting the prices of these commodities.
  5. Insights

    T. Boone Pickens Biography

    With more than six decades in the oil and energy business, T. Boone Pickens is often called "Oracle of Oklahoma" for his uncanny ability to anticipate the changes and challenges in those always-unpredictable ...
  6. Investing

    4 Reasons Natural Gas Is So Cheap

    An unseasonably warm winter wasn't the only reason why prices were cheap.
  7. Investing

    Top 3 Natural Gas ETFs for 2018

    The three most actively traded natural gas ETFs for 2018.
  8. Financial Advisor

    The 5 Best Dividend Stocks in the Energy Sector (KMI, EPD)

    Learn about the top five dividend companies that operate in energy-related industries that explore, develop, drill, extract and transport energy sources.
RELATED FAQS
  1. What economic indicators do oil and gas investors need to watch?

    Leading indicators for oil and gas investments are centered around the levels of production, consumer demand and inventory ... Read Answer >>
  2. What is the best way to get exposure to electric cars when investing in the automotive ...

    Learn more about the electric vehicle industry and what investment opportunities are available among auto manufacturers and ... Read Answer >>
  3. Which types of industries have the largest capital expenditures?

    Discover the significance of capital expenditures and learn what types of businesses or industries have the largest capital ... Read Answer >>
  4. How did the financial crisis affect the oil and gas sector?

    Learn how the financial crisis affected the oil and gas sector. The financial crisis led to a contraction in economic activity ... Read Answer >>
  5. To what extent will changing fuel costs affect the profitability of the airline industry?

    Learn how changing fuel costs affect the profitability of the airline industry and why airline operators do not immediately ... Read Answer >>
Hot Definitions
  1. Monero

    Monero is a digital currency that offers a high level of anonymity for users and their online transactions.
  2. Risk Tolerance

    Risk tolerance is the degree of variability in investment returns that an individual is willing to withstand.
  3. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  4. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
  5. Federal Funds Rate

    The federal funds rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve ...
  6. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
Trading Center