The energy bill isn't a
complete waste, but the amount of pork-barrel
legislation that becomes part of any legislation is
truly astounding.
Anyway, the clean vehicle tax credits were initially
meant to reward technological innovations that provide
clean energy and reduce foreign oil dependency. The
original intention of the clean
vehicle tax credits was to reward expensive and
advanced technologies, such as hybrid
cars and fuel cell vehicles, as an incentive for
greater production and development amidst high costs.
Since neither GM nor Chrysler have any hybrid vehicles,
they successfully lobbied Congress to add clean diesel
vehicles to the tax credit as well.
At first glance this might seem fine. Shouldn't any
clean technology be able to utilize the clean vehicle
tax credit?
That might be OK if not for the caps on the amount of
vehicles that can qualify for the tax credits. Under the
clean vehicle tax credit, not everyone who buys a hybrid
car, for example, will be able to utilize the tax
credit. Additionally, Chrysler and GM can utilize the
tax credits to promote diesel, instead of hybrids. In
fact, tax credits for diesels offer GM and Chrysler
incentives NOT to produce hybrids, since there are only
a limited number of credits available.
So what? Diesel can achieve the same fuel efficiency as
hybrids at a cheaper cost, some diesel advocates will
reply.
Hogwash. The only way a super clean diesel engine will
match the efficiency of true hybrid vehicles is by
utilizing EPA fuel efficiency testing methodologies.
Well, the Toyota
Prius hybrid doesn't achieve EPA fuel efficiency
estimates the critics will clamor.
The truth is, very few vehicles achieve EPA fuel
efficiency ratings. This isn't a hybrid vehicle issue.
In fact, in real world driving it is large trucks, SUVs,
and overly-horsepowered cars that miserably fail to
achieve their EPA estimates. I'm still waiting for the
hybrid-hating editors at AutoWeek to address this one (more
on this).
There are number of problems with EPA fuel efficiency
estimates, but the biggest is the EPA's assumption that
Americans do most of their driving on the highway going
55 mph.
This simply isn't true. Congestion is becoming more and
more commonplace in America, and the problem is only
going to get worse. Don't believe me? Check out what the
Department of Transportation has to say on the matter (click
here).
In congested traffic, hybrid vehicles achieve their best
fuel efficiency and, in such conditions the Toyota Prius,
contrary to its many critics, can achieve the EPA
estimated 60 mpg, or even higher. On the contrary,
conventional vehicles perform their worst in these
conditions, and that is the problem with clean diesel.
In congestion, clean diesel does not perform as well as
hybrids. If not only congestion, but increased
congestion, is the future for the American driver, then
diesels luster truly beings to tarnish.
More important, in terms of congestion, hybrids offer
significant untapped potential. Plug-in hybrids and new
hybrid batteries will offer the potential for hybrids to
become significantly more fuel efficient. A 100 mpg
Prius is possible with today's technology. Even a 100
mpg Ford
Escape hybrid SUV, or a 100 mpg Toyota
Highlander hybrid SUV, isn't that far off if hybrid
batteries continue their current gains in efficiency and
size and/or if plug-in capabilities are added.
Ultimately, the technology that has made computers
faster, more powerful, smaller and more portable is
essentially the same technology that is key to hybrid
vehicles. Equally important, this same technology will
ultimately be key to fuel cell vehicles.
Quite simply, diesel technology will never be the answer
to foreign oil dependency, but advanced hybrids can not
only end foreign oil dependency, but they could do it
almost pollution-free.
While I agree that diesel technology offers important
gains in fuel efficiency and can be a good buy today,
diesel technology simply doesn't compare to the
potential of hybrid technology. With a limited number of
tax credits available, and a Congress that refuses to
address fuel efficiency - even in the midst of oil wars
in Iraq and oil-driven terrorism - technology offers the
only hope for change.
Thus, only the most promising technologies should be
rewarded with tax credits. Otherwise tax credits for
clean vehicles become another loophole for the Big 3 to
increase our foreign oil dependency, as a new EPA report
- withheld until the passage of the energy bill - is
going to show (Read).
Sure GM can continue to assure Congress that cheap fuel
cell vehicles are just around the corner, as GM has done
for decades. Nonetheless, too many smart people have
noted that this simply doesn't seem possible, and how
many decades does it take to get around the corner?
How long will Americans continue to tolerate such
unAmerican leadership from one of America's most
important American companies. Neither consumers, nor
citizens, but shareholders, are the only concern to GM.
Ultimately, the clean vehicle tax credits and much of
the energy bill promotes and endorses complacency,
rather than technological innovation. With such
political and corporate ineptitude leading America, is
it really any wonder that America continues to fall
further and further behind in the technological
battlefield?
Congress and corporation, an American disgrace.
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