Oops looks like I screwed up the link - here is the article from Bloomberg.com:
Bush Seeks $3 Bln Tax Credits for Cars in Energy Bill (Update2) By Richard Keil and Alex Canizares Washington, Feb. 25 (Bloomberg) -- President George W. Bush urged Congress to pass a plan to provide $3 billion in tax credits for people who buy hybrid or fuel cell vehicles over the next five years. Bush wants the Democratic-controlled Senate, which may take up energy legislation this week, to use tax breaks to encourage oil exploration and energy conservation. He said the $3 billion would spur commercial use of hybrid cars, which run on a mixture of gas and electric power, and fuel cell vehicles whose only emission is water vapor. Toyota Motor Corp. and Honda Motor Co. Ltd. have hybrids on the road now; U.S. automakers are planning such vehicles in the next couple of years. ``We need to have a focused effort to bring fuel cells to market,'' Bush said after inspecting vehicles on the White House driveway. ``The Congress needs to get a bill to my desk.'' Bush is promoting hydrogen technology research after dropping a program promoted by former Vice President Al Gore, Bush's 2000 Democratic presidential rival, to help automakers develop an 80- mile-per-gallon sedan. Bush said tax credits and research are needed to reduce 50 percent of U.S. oil coming from ``countries that don't particularly like us.'' Drilling Dispute Bush's energy plan would allow companies such as Exxon Mobil Corp. and ChevronTexaco Corp. to drill for oil in the Arctic National Wildlife Refuge. Senate Majority Leader Tom Daschle and other Democrats vowed to block drilling in the refuge, saying it would harm the environment without meeting U.S. energy needs. The bill passed by the Republican-led House would allow exploration in the Arctic refuge and give $33.5 billion in tax breaks and incentives to oil and coal companies. The Senate measure, approved Feb. 13 by the Finance Committee, wouldn't allow drilling in the refuge. Instead, it would increase the use of ethanol in gasoline and seek to triple by 2020 the amount of energy produced using solar, wind or geothermal resources. The Democrats' measure includes $13.5 billion in tax breaks, including incentives to promote alternative energy, conservation, technology to reduce emissions from coal, and exploration of oil and gas. Several provisions would benefit companies such as Alcoa Inc., Ford Motor Co., and Chevron Corp. Fuel-Efficient Cars The legislation aims to split tax benefits evenly, with half for energy conservation and renewable fuels development and half for incentives for oil and gas development. It contains less generous expensing provisions for oil producers than the House bill and no tax breaks to aid construction of oil refineries. The Senate Democrats' bill includes $1 billion in tax incentives over 10 years for consumers who buy fuel-efficient cars, said Bill Wicker, a spokesman for the Senate Energy and Natural Resources Committee. Toyota's Prius and Honda's Insight hybrid vehicles will be more widely available next year, according to the Energy Department. DaimlerChrysler AG plans to sell a hybrid vehicle by the end of next year, said company spokesman Sjoerd Dijkstra. General Motors Corp. may have a hybrid on the market in 2004. Democratic Party Chairman Terry McAuliffe accused Bush of ``hypocrisy'' in promoting hybrid cars. ``In 2000, he mocked Al Gore's support for hybrid cars,'' McAuliffe said, citing Bush campaign appearances in the last two weeks of the campaign. ``I am glad President Bush has discovered energy policies that come from sources other than his secret energy task force,'' McAuliffe said in a statement. Fuel Cell Vehicles Bush said fuel cell vehicles face economic obstacles. The Energy Department in January announced a $150 million program to research fuel cell technologies that run on hydrogen. A related issue that may derail passage of energy legislation this year is increased fuel efficiency standards, which is being pushed by Democrats such Senator Jeff Bingaman, chairman of the Energy and Natural Resources Committee. The Democrats' plan would require passenger vehicles made after 2006 and before 2010 to get 36 miles per gallon, and light trucks to get 27.5 miles per gallon. That's compared to the current standard of 27.5 miles per gallon for cars and 20.7 miles per gallon for light trucks. The House plan contains less strict cuts in fuel consumption from only light trucks.
