	Introduction

Congressional and consumer interest in passenger natural gas vehicles (NGVs) has grown in recent years, especially in response to higher gasoline prices, concerns over the environmental impact of petroleum consumption for transportation, and policy proposals such as the "Pickens Plan." New EPA Regulations from April 2011—Added Flexibility for Converters

On April 8, 2011, EPA issued final regulations on alternative fuel vehicle conversions. The regulations provide new flexibility for converters to certify that their conversions do not violate the CAA anti-tampering provisions. Conclusion

Higher gasoline prices and concerns about U.S. oil dependence have raised interest in NGVs. The market for NGVs will likely remain limited unless the differential between natural gas and gasoline prices remains high in order to offset the higher purchase price for a natural gas vehicle or if new incentives are established to decrease the differential in initial vehicle purchase prices. New EPA regulations on NGV conversions could help promote the expansion of NGVs by lowering the cost of entry for conversion companies.
Higher gasoline prices in recent years and concerns over U.S. oil dependence have raised interest in natural gas vehicles (NGVs). Use of NGVs for personal transportation has focused on compressed natural gas (CNG) as an alternative to gasoline. Consumer interest has grown, both for new NGVs as well as for conversions of existing personal vehicles to run on CNG. This report finds that the market for natural gas passenger vehicles will likely remain limited unless the price for natural gas remains substantially lower than gasoline to offset the higher purchase price for an NGV.
The Environmental Protection Agency (EPA) promulgated new regulations in April 2011 on alternative fuel vehicle conversions—including natural gas conversions. The new regulations allow greater flexibility for conversion companies to certify that their conversions do not lead to higher emissions—flexibility that could lead to significantly lower compliance costs. This could help spur the proliferation of natural gas conversions, especially for older vehicles.