[Congressional Record Volume 149, Number 39 (Tuesday, March 11, 2003)]
[Senate]
[Pages S3507-S3508]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN:
  S. 587. A bill to promote the use of hydrogen fuel cell vehicles, and 
for other purposes; to the Committee on Finance.
  Mr. WYDEN. Mr. President, today, I am introducing the Hydrogen 
Transportation Wins Over Growing Reliance on Oil, H2 GROW, Act to 
accelerate getting cars and trucks powered by hydrogen on our roads as 
a way to reduce our Nation's dependence on foreign oil. In the House, 
Congressman Chris Cox will also be introducing the H2 GROW Act, so we 
will have the first bipartisan, bicameral bill to provide incentives 
for commercialing hydrogen-powered cars and the fueling stations needed 
for hydrogen cars to have widespread acceptance.
  Our legislation has the support of a diverse coalition of interest 
groups, ranging from the Natural Resources Defense Council to the 
automobile industry. It is not a coalition that naturally flocks 
together. In fact, on many environmental issues, these groups are 
skirmishing, not coalescing.
  Just as these groups have come together, Congressman Cox and I have 
felt, on a bipartisan basis, that he and I could find common ground on 
the critical issue of hydrogen fuel cells. Unlike some other proposals 
to promote hydrogen fuel cell vehicles, the H2 GROW Act goes beyond 
researching hydrogen to kickstart the market for hydrogen fuel cell 
vehicles and fueling equipment. Legislation he and I will introduce 
today, the H2 GROW Act, uses marketplace incentives so that a 
significant number of fuel cell vehicles can hit American streets in 
the next decade. In effect, our legislation goes beyond the popular 
wisdom that you can't do much to actually get these vehicles on the 
street anytime soon.
  Our legislation stipulates that when someone opens a fueling station, 
sells fueling equipment, sells hydrogen fuel for use in vehicles, or 
buys a hydrogen fuel cell vehicle, the tax man won't cometh for the 
next 10 years. By creating incentives this way, our legislation, can 
catalyze commercialization of fuel cell vehicles. Tax holidays and tax 
incentives will stimulate a private market for everything from creating 
the infrastructure needed for fuel cell vehicles, to direct incentives 
for American consumers.
  By using this approach, our legislation only pays for performance. It 
does not subsidize research that may or may not advance the goal of 
getting hydrogen-powered cars on the road. The tax credits and other 
incentives only reward actions that actually put cars on the road or 
fueling equipment in use.
  Best of all, the price tag is minimal. The government isn't expecting 
any significant revenue from fuel cell vehicles anyway in the next 10 
years--and that's the life of our bill. So there's no enormous cost to 
the government.
  Congress has a clear choice between taking 20 years to get a 
significant number of hydrogen vehicles on the road and making real, 
measurable progress in the next 10 years. In my view, reducing this 
country's dependence on foreign oil is a national security priority. At 
a time when more than half our energy is imported, enacting policies 
that promote energy independence is a true act of patriotism. Our 
legislation would promote that energy independence.

  Here are two examples of how our legislation provides critically 
needed incentives for the fuel cell market:
  Congressman Cox and I want to make it worth the consumer's while to 
buy a fuel cell vehicle in the first place. So a tax credit will help 
make up the difference between the cost of a gasoline-powered vehicle 
and a fuel cell car. For example, if in 2009, a consumer buys a fuel 
cell car for $25,000, the consumer can write $3,750 off his or her 
taxes to make the fuel cell car more affordable.
  To help gasoline stations begin to shift to serving consumers with 
hydrogen fuel cell vehicles, our bill provides a 20-percent tax credit 
for every unit of hydrogen fuel sold equivalent to a gallon of 
gasoline.
  The bill also helps taxpayers get the most of the fuel cell vehicle 
in terms of convenience and ease of use. With hydrogen fuel cells, 
filling up your car could be something you do at your home or your 
office as well as a retail filling station. So our bill gives taxpayers 
who install hydrogen fueling equipment in their homes a tax credit for 
up to 50 percent of the cost of the refueling equipment.
  In my view, these are practical steps away from our reliance on 
foreign oil and toward better, cleaner transportation for all 
Americans. I also believe this plan is the best, most effective use of 
taxpayer dollars on this issue.
  Companies like GM and Toyota--two car companies that are endorsing 
the H2 GROW Act--are already developing the technology to improve the 
performance and reduce the cost of fuel cell vehicles with more 
reliable, affordable

[[Page S3508]]

materials. These companies are already putting the money and time into 
that effort. What Congress needs to do is help the American people and 
American businesses take advantage of these new products as they're 
perfected, and help them hit the streets as quickly as possible.
  I firmly believe the H2 GROW Act is a strong step toward helping 
consumers to shore up this Nation's economic and environmental 
stability for future generations. I know Congressman Cox feels the same 
way, and I encourage my colleagues to support our bipartisan 
legislation to accelerate commercialization of hydrogen fuel cell cars 
and help reduce our Nation's dependence on foreign oil.
                                 ______