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Credit Pacific Service Union Senator John Kerry, who is presiding over Senate Commerce Committee hearings on auto fuel-economy standards, supports tax credits for consumers who buy vehicles powered by hybrid gasoline-electric engines. But he will press to apply more stringent requirements than those passed by the House to determine which vehicles receive credits, Democratic Congressional aides said today.

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Credit First Service Union The House energy bill includes tax credits ranging from $250 to $4,500 for consumers who buy automobiles powered by the hybrid engines and other technologies. The incentives would help offset the higher costs of such vehicles, two of which, the Toyota Prius and the Honda Insight, are already on the market.

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Card Credit Mobile Service But Congress differs on the approach to planned hybrid versions of larger trucks, like the Dodge Durango. The auto industry has argued that broad incentives would encourage incremental gains for all sizes of vehicles. Senator Kerry, Democrat of Massachusetts, prefers a version of the tax-credit idea, previously proposed by the Senate, that would restrict the credits to vehicles that not only use such technology but also achieve certain mileage goals.

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Card Credit Discover Service Senator Kerry is also trying to build support for raising corporate average fuel-economy standards by tying them to tax benefits for automakers, aides said.

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Credit Public Service Union Though the big automakers remain firmly opposed to raising the fuel-economy standards, Senator Kerry hopes to build some level of bipartisan support by offering tax breaks. The standards require each automaker's annual fleet of new cars to average 27.5 miles a gallon; light trucks, which include sport utility vehicles, pickups and minivans, must average 20.7 miles a gallon.

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Card Credit Processing Service The standards have not been significantly raised since the 1980's, but the tone of the debate has changed since Sept. 11. Senator Kerry plans to make a speech on Tuesday, "Energy Security Is American Security," at the Center for National Policy in Washington. In a draft, he is sharply critical of the energy policies put forth by the administration and the House, saying they will not reduce dependence on Middle East oil.

Center Credit Service Union "The administration sees a world where our principal effort is to drill our way out of our problem," the draft says, while the policy focus should be shifted "to cajoling and exciting a new marketplace" for alternative and renewable energy. The senator supports a government initiative to shift 20 percent of the nation's electricity needs to renewable fuel sources by 2020, an idea already in a bill sponsored by James M. Jeffords, the Vermont independent.

Card Credit Service Wireless On automobiles, he does support the administration's recent initiative to finance research on hydrogen fuel cells, a technology that automakers see someday replacing internal combustion engines. But the speech draft states that the program was "no substitute, whatsoever, for modernizing our CAFE standards." The speech does not offer specifics on how much the standards should be raised.

Credit Security Service Union By Danny Hakim
New York Times - 1/22/2002

Topic: Petroleum Industry

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