[Congressional Record Volume 147, Number 68 (Thursday, May 17, 2001)]
[Extensions of Remarks]
[Page E838]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




INTRODUCTION OF THE CLEAN EFFICIENT AUTOMOBILES RESULTING FROM ADVANCED 
                  CAR TECHNOLOGIES ACT (THE CLEAR ACT)

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                             HON. DAVE CAMP

                              of michigan

                    in the house of representatives

                         Thursday, May 17, 2001

  Mr. CAMP. Mr. Speaker, today, I am reintroducing legislation that 
would provide incentives to encourage the development of alternative 
fuel technologies and consumer acceptance of these products. The 
primary purpose of the legislation is to enhance overall energy 
security and diversity goals by reducing U.S. dependency on foreign 
oil. Transportation accounts for nearly 2/3 of all oil consumption and 
is almost 97% dependent on petroleum.
  Providing tax incentives for a limited period of time to consumers is 
needed to help offset the higher costs associated with new technology 
and alternative fuel vehicles. As the vehicles gain consumer acceptance 
and production volumes increase, the cost differential between these 
vehicles and conventional vehicles will be reduced or eliminated.
  This legislation will develop market acceptance of a wide range of 
advanced technology and alternative fuel vehicles including: Fuel Cell 
Vehicles, Hybrid Vehicles, Dedicated Alternative Fuel Vehicles and 
Battery Electric Vehicles.
  Historically, consumers have faced three basic obstacles to accepting 
the use of alternative fuels and advanced technologies: the cost of the 
vehicles, the cost of alternative fuel, and the lack of an adequate 
infrastructure of alternative fueling stations.
  My legislation provides a tax credit of 50 cents per gasoline-gallon 
equivalent for the purchase of alternative fuels at retail 
establishments. To give customers better access to alternative fuel, we 
are extending an existing deduction for the capital costs of installing 
alternative fueling stations. We also provide a 50 percent credit for 
the installation costs of retail and residential refueling stations.
  Finally, my legislation provides tax credits to consumers to purchase 
alternative fuel and advanced technology vehicles. To make certain that 
the tax benefits we provide translates into a corresponding benefit to 
the environment, we split the vehicle tax credit into two. One part 
provides a base tax credit for the purchase of vehicles dedicated to 
the use of alternative fuels or vehicles using advanced technologies. 
The other part offers a bonus credit based on the vehicle's efficiency 
and reduction in emissions.
  Tax incentives will sunset within 6 years for all applications with 
the exception of fuel cell vehicles which are extended to 10 years. 
With minimum development cycles of 2-4 years for new vehicles, 
incentives are needed now to move existing designs to the market so 
they can accelerate the process for customer acceptance.

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