[Congressional Record Volume 147, Number 67 (Wednesday, May 16, 2001)]
[Senate]
[Pages S5001-S5002]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    TAX CREDITS FOR HYBRID VEHICLES

  Mr. BIDEN. Mr. President, tomorrow the administration will unveil its 
energy plan. From the early reports we have been given, I am concerned 
that the proposals are too heavily weighted on the production side and 
fail to adequately address the need for conservation. One bright note 
that I have found is a general support for hybrid vehicles, the topic 
that I wish to address briefly today.
  Specifically, I want to voice my support for legislation creating a 
hybrid vehicle tax credit. A hybrid vehicle combines an electric motor 
and battery pack with an internal combustion engine. The engine and the 
electric motor work in tandem, with either system providing primary or 
secondary power depending on driving conditions. For example, when 
stopped at a light, the vehicle shifts from an internal combustion 
engine to electric power and then back again upon acceleration. In 
addition, the batteries are re-charged during operation, eliminating 
the need for an external charger. This is new technology and the result 
of years of hard work.
  I would like to see my colleagues join me in passing legislation to 
create a tax credit that would encourage consumers to purchase hybrid 
vehicles. I

[[Page S5002]]

have known for years that this technology would become available and I 
have been looking for the right opportunity to draft legislation that 
would help put hybrid vehicles on our roads. I think that there are two 
components that must be addressed in a tax credit bill. To begin, I 
firmly believe that we must reward the integration of the technology 
into the vehicle with a base credit. In addition, however, I feel 
strongly that an important goal that must be achieved through 
legislation is to reward a vehicle that significantly decreases the 
amount of fuel consumed. I have proposed a plan that provides both a 
base credit of up to $2000 for the use of the technology, as well as a 
bonus credit, up to $1000, calculated based upon the lifetime fuel 
savings of the vehicle.
  I think that this approach is a sound one. Placing the emphasis on 
gallons saved speaks directly to the importance of conservation and 
with our country facing an energy crisis is critical. And I also know 
that the biggest improvements in the reduction of fuel consumption will 
come from getting larger volumes of hybrid vehicles into the hands of 
consumers.
  But in crafting this legislation, there are certain realities that we 
must accept. Today, there is a significant portion of the population 
that wants to drive a larger vehicle. This is America and people are 
entitled to personal choice. It is for this reason that I applaud the 
efforts of car manufacturers who have chosen to place hybrid technology 
in larger vehicles and SUV's. For example, DaimlerChrysler has 
committed to hybridizing the popular Dodge Durango with the vehicle 
scheduled to come on like in 2003 and this will bring a 20 percent 
improvement in fuel consumption.
  I am also aware that others have advocated different approaches to 
crafting legislation that creates a tax credit for hybrid vehicles. My 
colleague Senator Hatch has introduced a bill, S. 760, that would 
provide a tax credit for hybrid vehicles as well as other advanced 
motor vehicle technologies. While his bill provides a base credit, up 
to $1,000, for the inclusion of hybrid technology, the bonus credit in 
this bill, up to $3,000, is calculated depending upon the fuel economy 
performance of the vehicle.

  In addition to the Hatch bill and the administration's general 
statements, members of the automobile industry as well as 
environmentalists are also engaged in discussions to draft language 
that will create an incentive for consumers to purchase a hybrid 
vehicle. In the next few weeks, we need to have a thorough discussion 
among members of the automobile industry and environmentalists so that 
we can reach consensus on the language of this important legislation 
and move forward to passage of a bill. There is not just one approach 
that solves the problem and I am prepared to listen to all views. I 
hope that the other stakeholders are also ready to work for a 
compromise. While we may differ on our approach to drafting the 
legislation, I am sure that we can all agree that the goal should be 
passage of legislation that creates a tax credit for hybrid vehicles 
and provides the necessary encouragement to bring this important 
technology into the marketplace.

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