From Deseret News archives:
Utah senators urge fuel-efficient cars
The Senate Finance Committee is expected to take up a major energy tax bill next week that would then be included in the energy bill already under consideration on the Senate floor. Sens. Orrin Hatch and Bob Bennett, both R-Utah, would like to see the bills they introduced Thursday included in the final energy bill.
Hatch's proposal, which he co-authored with Sens. Maria Cantwell, D-Wash., and Sen. Barack Obama, D-Ill., would create three different incentives designed to compliment each other and push the development of plug-in hybrids and other electric-drive vehicles. Hatch is a senior Republican on the Senate Finance Committee where Cantwell is also a member.
At a press conference Thursday with two plug-in hybrids that can get more than 100 miles per gallon in the city, Hatch said higher prices at the pump will only get worse "unless we start shifting our transportation sector away from liquid fuels and onto electrons.
"Electricity can be much cheaper and cleaner than petroleum, and electricity can be generated domestically and independent of the global oil market," Hatch said. "We believe that the United States is in a unique position to take the leadership role in developing the market, the technology and the domestic production capacity for this dramatic shift in the transportation sector."
The bill would provide a tax credit to people who buy a pure-battery electric car, extended-range electric, plug-in hybrid electric and plug-in fuel cell vehicles. Congress passed Hatch's similar proposal for alternative fuel and hybrid electric vehicles in the Energy Policy Act of 2005.
The bill would also provide tax incentives for the U.S. production of the plug-in vehicles and incentives for electric utilities to give rebates to customers who have the plug-in cars.
A similar bill is pending in the House.
Meanwhile, Bennett, along with Sen. Ron Wyden, D-Ore., reintroduced the Oil Independence, Limiting Subsidies and Accelerating Vehicle Efficiency or OILSAVE Act, which offers a tax credit to those who buy an energy-saving vehicle.
Bennett's proposal takes a "technology-neutral approach" so any vehicle with a certain fuel efficiency can qualify for a tax credit, regardless of the technology it uses, according to his office.
People who buy vehicles that are at least 25 percent more fuel efficient than the current federal fuel economy standard for cars, trucks or sport utility vehicles will get a tax credit of at least $630 and as much as $1,860 for the most fuel-efficient models, Bennett said. This would be printed on the window stickers of the cars and customers can get the money via tax return or transfer it to an auto dealer who can give a "cash back" option when they buy it.
"This proposed tax credit will open the door for consumers to purchase a variety of fuel-efficient vehicles, not just hybrids," Bennett said .
Bennett and Wyden introduced the same bill late last year as a way to get the ball rolling on the issue.
Bennett now drives a hybrid 2005 Ford Escape and was the first member of Congress to buy a hybrid car when he bought his Honda Insight, which he drove for four years.
E-mail: suzanne@desnews.com
