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 <subject>Fuel taxes</subject>
 <subject>Gasoline</subject>
 <subject>Motor vehicles</subject>
 <subject>Petroleum products</subject>
 <subject>Alternative energy sources</subject>
 <subject>Energy costs</subject>
 <subject>Tax credit</subject>
 <subject>Energy consumption</subject>
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 <title>Alternative Motor Fuels and Vehicles: Impact on the Transportation Sector</title>
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<abstract>The transportation sector accounts for the bulk of the petroleum
consumption in the U.S., currently representing about two thirds 
of total petroleum use and roughly a quarter of the nation&apos;s	 
total energy consumption. A number of measures have been taken	 
over the past 25 years either to reduce petroleum consumption or 
to increase fuel diversity in the transportation sector,	 
including tax incentives, mandates for alternative fuel vehicles,
and laws to promote automobile fuel efficiency. This testimony	 
discusses the extent of alternative fuel vehicle acquisition and 
fuel use, some of the barriers inhibiting greater use of	 
alternative fuels and vehicles, and the federal tax incentives	 
used to promote the use of alternative motor fuels and vehicles. 
So far, based on GAO&apos;s studies and the Energy Information	 
Administration&apos;s statistics, alternative fuels and vehicles have 
not made much of a dent in the conventional fuel and vehicle	 
dominance of the U.S. vehicle fleet, primarily because of	 
fundamental economic obstacles such as the relatively low price  
of oil, insufficient availability of alternative fuel refueling  
infrastructure, and the relatively high cost of certain 	 
alternative fuel vehicles. As GAO reported in its February 2000  
report, any significant increase in the use of alternative motor 
fuels and vehicles by the general public will depend on two main 
factors (1) a dramatic and sustained increase in the price of	 
gasoline and (2) very large incentives, far above the current	 
levels, to reduce the cost of using alternative fuels and	 
vehicles. Depending on what happens to conventional fuel prices, 
these incentives would likely need to be maintained for some	 
time--at least until the number of vehicles reaches the level	 
necessary to support an economically sustainable infrastructure.</abstract>
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<note>Testimony</note>
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<subject>
 <topic>Fuel taxes</topic>
 <topic>Gasoline</topic>
 <topic>Motor vehicles</topic>
 <topic>Petroleum products</topic>
 <topic>Alternative energy sources</topic>
 <topic>Energy costs</topic>
 <topic>Tax credit</topic>
 <topic>Energy consumption</topic>
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