http://www.eenews.net/EEDaily/Backissues/042501d.htm Environment & Energy Daily
Air Pollution/Transportation Senators float bill to boost alternative fuels, cars A bipartisan band of senators introduced a bill Tuesday to promote the use of alternative fuel vehicles and advanced car technologies through tax credits. With support in place from environmentalists, electric vehicle and alternative fuel industry groups, as well as Ford Motor Co., Honda and Toyota, congressional action on the legislation is likely this year, said Sen. Orrin Hatch (R-Utah), one of the bill's lead cosponsors. The cost of implementing the "Cleaner Efficient Automobiles Resulting From Advanced Car Technologies (CLEAR) Act," S. 760, ranges from $8 billion to $10 billion over 10 years, Hatch said. Included in the bill, which had been introduced over the last two years in less broad incarnations by Sens. Hatch, Jim Jeffords (R- Vt.) and John Rockefeller (D-W.Va.), are incentives to offset the costs of alternative fuels, vehicle sticker prices and new fuel infrastructure. While last year's Hatch-Jeffords bill focused only on alternative fuels such as compressed natural gas, liquified natural gas and propane, this year's legislation directly addresses incentives for both fuel cells and hybrid vehicles. As well, tax incentives kick in when emissions reductions are shown, a pleasing component to both environmentalists and automakers. Should the bill pass into law, Hatch said direct benefits would be seen first by both businesses and individuals residing in the 121 regions in the United States that have failed to attain the Environmental Protection Agency's National Ambient Air Quality Standards. The bill, he said, would provide incentives for large fleet operators to purchase "green" transportation which in turn produces exponentially fewer pollutants while displacing petroleum needs and stabilizing national security. "Every alternative fuel or advanced technology car, truck or bus on the road will displace a conventional vehicle's lifetime of emissions and need for imported oil," Hatch said. Legislation in support of efficient and environmentally friendly cars and trucks has already appeared this year on Capitol Hill. Sen. Frank Murkowski (R-Alaska), chairman of the Energy and Natural Resources Committee, included language from last year's Hatch-Jeffords bill in the comprehensive GOP energy package. A Hatch aide also said CLEAR Act supporters have held two "good, comprehensive meetings" with the White House's energy task force as a way to lay out the bill's possibilities. The Bush administration is expected to release its own comprehensive energy policy next month. Among the provisions in the CLEAR Act is a 50 cents per gasoline-gallon equivalent tax credit for the purchase of alternative fuels at retail. A Rockefeller proposal two years ago had set this standard at the same amount, but last year's Jeffords-Hatch bill reduced the figure to 25 cents. To improve access to alternative fuel, the bill would extend by 10 years the $100,000 credit for existing deductions on the capital costs of installing alternative fueling stations. The bill also creates a 50 percent credit for the installation costs of retail and residential refueling stations. CLEAR Act incentives are also likely to pave the way for fuel cell technology that is not even expected to reach consumers for almost a decade, environmentalists and automakers say. Michelle Robinson, senior advocate for the Union of Concerned Scientists clean vehicles program, said the new technology will "spell the eventual demise of the internal combustion engine." In all, green groups such as the Natural Resources Defense Council and Environmental Defense Fund were pleased because the bill addresses climate change, air quality and national energy security. "That's the three-legged stool that they're putting up there," said one alternative fuels energy consultant. "And that's the beauty of the bill's design." "Hybrid electric, fuel cell and alternative fuel vehicles are poised to revolutionize the way we travel," Robinson added during the bill's introduction. Toyota and Honda this year joined with Ford in support of the bill. In written statements, Toyota said the act would "stimulate and accelerate the penetration of advanced-technology vehicles," while Edward Cohen, Honda's vice president for government and industry relations, said the bill works by assuring the incentives are tied to a vehicle's performance rather than simply a specific technology. "We have broken new ground," he said. The tax incentives are spread across the range of advanced technologies, differing in size and scope depending on the specific type of fuel. Overall, the bill provides a base credit for the purchase of alternative fuel vehicles, while it more specifically provides a sliding scale, bonus credit based on the vehicle efficiency and reduction in emissions. Cosponsors to the bill are Sens. Lincoln Chafee (R-R.I.), Susan Collins (R-Maine), Michael Crapo (R-Idaho), John Kerry (D- Mass.) and Joe Lieberman (D-Conn.). CLEAR Act supporters say they are focusing their efforts on finding House cosponsors for similar legislation. -- Darren Samuelsohn Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html To unsubscribe, send an email to: [EMAIL PROTECTED] Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/