U.S. Senate Democrats unveiled an energy bill that includes almost USD 4 billion in subsidies for natural gas powered vehicles. House lawmakers are expected to vote on their version of the legislation before Congress breaks for recess in August.

   The proposed Senate legislation would provide a federal rebate of USD 10.000 for natural gas cars and up to USD 64.000 for heavy trucks. The rebate would be larger and more direct than the USD 7.500 tax credit now offered on electric vehicles like the Chevy Volt and the Nissan Motor Co (7201.T) Leaf.

   It also would give fuelers cash grants of up to USD 50.000 to install natural gas pumps through 2015, and authorize research, development and demonstration grants by the Energy Department.

   Legislation is being introduced in the U.S. Senate by Senate Majority Leader Harry Reid (D-NV), and intended for introduction in the U.S .House of Representatives by Ways & Means Committee Chairman Sander Levin (D-MI).