Drive For Natural Gas Vehicles Faces Big Test In California

SAN FRANCISCO -(Dow Jones)- The notion of spending taxpayers’ money to help fill U.S. roads with natural gas-fueled vehicles faces a major test when voters in California, the nation’s largest auto market, go to the polls in November.

Natural gas providers are spending millions of dollars on advertising to convince Californians to pass a ballot initiative allowing the state government to invest in the now-tiny market for natural gas-fueled cars and trucks. The push comes as gas producers, emboldened by a windfall of domestic production, press federal lawmakers to help expand the market for gas as a means for reducing dependence on foreign oil and cutting greenhouse-gas emissions.

If the California ballot initiative passes, up to a million vehicles fueled by compressed natural gas, or CNG, could ultimately end up on the state’s roads. If the proposal – called Proposition 10 – fails, backers will face a tougher task selling authorities on the wisdom of investing in infrastructure for natural gas-fueled vehicles, compared with spending on biofuels or electric cars and trucks.

CNN Money