THIS SEARCH THIS DOCUMENT THIS CR ISSUE GO TO
Next Hit Forward Next Document New CR Search
Prev Hit Back Prev Document HomePage
Hit List Best Sections Daily Digest Help
Doc Contents
This bill's tax incentives will make those vehicles more cost competitive. With their environmentally-friendly fuels, these vehicles will mean significant benefits to the air we breathe. The levels of pollutants emitted by these alternative fuels vehicles are a tiny fraction of those released from a conventional gasoline or diesel engine. Some of these cars don't even have tail-pipes. To assure that owners of alternative fuel vehicles can find fuels
[Page: S4200] GPO's PDF
Passing this bill would mean cleaner air, energy independence, and more jobs in a developing sector of the auto industry. We have the technology and the resources to accomplish these goals. And we have manufacturers ready to deliver. It shouldn't take another oil crisis for us to get moving on this.
Mr. HATCH. Mr. President, I rise today with my friend and colleague, Senator JEFFORDS, to introduce the Alternative Fuels Tax Incentives Act. I am pleased that we are being joined by Senators ROCKEFELLER, ROBB, CHAFEE, and BRYAN as original cosponsors.
This bill is an outgrowth of S. 1003, the Alternative Fuels Promotion Act of 1999, which was sponsored by many of the same sponsors of this year's bill. And, like S. 1003, the bill we are introducing today is designed to achieve two vital goals--reduce our dependency on foreign oil and reduce air pollution from motor vehicles.
While the goals of both of these bills are the same, Mr. President, the Alternative Fuels Incentive Act takes a similar, but more comprehensive approach to achieving them.
There is a little dispute that our growing dependency on imported oil is dangerous, not only to our continued economic growth, but also to our national security. We are witnessing again this year just how volatile the price of gasoline and other motor fuels are and how decisions made by oil producers far from our shores affect the everyday lives of all Americans. As we increase our dependence of energy from others nations, we are literally placing our future in the hands of foreign entities. Yet, we are stymied at every turn in trying to significantly increase the discovery and development of new domestic sources of oil.
At the same time, we continue to face serious air quality challenges from our almost exclusive use of conventional fuels for motor vehicles. Just in my home state of Utah, transportation vehicles account for 87 percent of carbon monoxide emissions, 52 percent of nitrogen oxide emissions, 34 percent of hydrocarbon emissions, and 22 percent of coarse particulate matter in the air. All of these emissions can be harmful to individuals suffering from chronic respiratory illnesses, heart disease, asthma, and other ailments.
More than just harming our health, however, these emissions detract from the natural beauty of our country. Furthermore, as the United States grows in population and dependency on automobile transportation, these problems will only become worse unless something is done to turn the tide.
Fortunately, Mr. President, answers to both problems exist. Vehicle technology using domestically plentiful and clean-burning alternative fuels have advanced to the point that, if widely adapted by Americans, we could reverse the course on both foreign dependence and clean air. The challenge is in getting over the hurdle of initial acceptance of the new technologies by the American public.
In essence, there are currently three market barriers to this initial acceptance of alternative fuels vehicles by Americans--the incremental cost of the vehicles over conventionally-fueled vehicles, the cost of the fuel, and the lack of convenient fueling stations. Providing incentives--not mandates--to overcome all three of these barriers is what this bill is all about.
Mr. President, the bill addresses the first barrier--the extra cost of the alternative fuels vehicles--by providing a tax credit for a portion of the difference in cost. This is key component of the bill that was lacking in S. 1003. By bringing the cost of these vehicles within the range where savings on the cost of the alternative fuel will make owning these vehicles economically viable over the life of the vehicle, public acceptance of the technology should rapidly increase. Once this occurs, production economies of scale will bring the price of the vehicles down further.
The bill addresses the second and third market barriers, that of fuel cost and availability, by providing tax credits for the alternative fuels and tax benefits for suppliers who decide to sell it to the public. This is important because the ready availability of the fuel in all geographic locations where the public needs to go or to send goods is key to their acceptance of alternative fuels vehicles. These tax benefits, when combined with the market effect caused by the demand for more fueling stations created by the purchase of more vehicles, will help ensure that such stations will appear where people need them.
Mr. President, the incentive approach taken by this bill is meant to provide a temporary bridge over these barriers. If this approach works, the tax incentives will not be needed in the long run. This is why we have placed a seven-year sunset on these provisions. At the end of this period, Congress should take a close look at how well these incentives worked and how the market has developed.
There is little doubt that sooner or later this Nation will have to turn to alternative fuels to help solve the two problems I mentioned earlier. I believe it should be sooner and the move should be incentive-based and market-driven. The bill we are introducing today can create the momentum to get us to a cleaner and more secure America much sooner. I urge my colleagues to support this legislation.
Mr. ROCKEFELLER. Mr. President, today I gladly lend my support to the Alternative Fuels Tax Incentives Act being introduced by Senator JEFFORDS, along with Senators HATCH, ROBB, KERRY, BRYAN, and CHAFEE. I join with my colleagues because of my longstanding dedication to increasing the use of alternative fuels for transportation, and my understanding that to do so we must stimulate interest in the still fledgling alternative fuel vehicle industry. The success of this industry, and the acceptance of these vehicles in the market place, is critical to lowering our dependence on imported oil, improving the quality of the air we breathe, and reducing the greenhouse gases our nation emits.
Let me take a few moments to relate some of the reasons why it is so important that we reduce our consumption of petroleum and use alternative sources of energy. The first and most tangible reason is the need to reduce our nation's dependence on foreign oil. Currently, we import more than half of the oil consumed in this nation. That translates to $180,000 per minute that is being spent to purchase foreign oil. That's bad for our balance of trade, but more important, none of us want to continue to have our energy costs fluctuate and spike at the whim of OPEC or any other foreign organization. The recent price increase shows just how important this is, and how vulnerable we are.
A second reason is that it is critical that we reduce the transportation sector's negative impact on air quality. While the automobile industry has made great strides in reducing the emissions of cars and trucks, the improvement has been largely offset by the dramatically increasing number of miles these vehicles are driven each year, and by our increasing desire for larger, more powerful vehicles. In 1980, light trucks, a category that includes minivans and SUVs, accounted for only 19.9 percent of the U.S. automobile market. Traditionally, these vehicles have been exempted from corporate average fuel economy (CAFE) standards. In the past couple of years, some in Congress have been successful in blocking any adjustment to CAFE standards, including the inclusion of SUVs and minivans. Now the reason for including them is even more obvious. By 1998, these larger vehicles accounted for 47.5 percent of the automobile market, with SUVs alone accounting for 18.1 percent. Clearly, doing something to cut air pollution and to reduce greenhouse gas emissions will require an enormous change in our transportation sector.
Because I believe it is the right thing to do for the people of West Virginia, and for the nation as a whole, I have been a long-time supporter of research into, incentives for, and commercial implementation of alternative fuel technologies. During my first term in the United States Senate, I introduced the Alternative Motor Vehicle Act of 1988. That legislation has been credited with a dramatic increase in the production of alternatively fueled vehicles,
[Page: S4201] GPO's PDF
Energy Policy Act (EPAct), I authored and supported a number of provisions in that law to promote the use of alternatively-fueled and electric vehicles through tax credits for vehicle purchase and installation of supporting infrastructure.
Finally, just over a year ago, along with my colleagues Senators HATCH, CRAPO, and BRYAN, I introduced the Alternative Fuels Promotion Act, S. 1003. Both the Alternative Fuels Tax Incentives Act introduced today, and the Alternative Fuels Promotion Act introduced last year, would provide the alternative fuel vehicle industry some of the help it needs to begin to get a sustainable foothold in the market place. While these bills differ in the size and type of tax incentives, I strongly believe that both bills are appropriate steps toward a cleaner environment and a more energy independent nation.
As I have stated on the Floor of the Senate before, the options for bringing about change in the transportation sector are somewhat limited. Congress could impose new taxes, mandates, or regulations. However, these approaches are sometimes unpopular with both the American people and our colleagues in Congress. I believe the best way to bring about the change we need is to provide incentives for manufacturers to develop and sell clean technology and for consumers to buy and use this technology. I believe that the Alternative Fuels Tax Incentives Act being introduced today offers manufacturers and consumers these necessary incentives.
Our domestic automobile manufacturers have developed a number of clean-running and efficient vehicles. These vehicles are virtually indistinguishable from their gasoline-powered counterparts in terms of performance, safety, and comfort. However, there are still two major barriers to widespread acceptance. The first is cost. Though manufacturers have made great strides in reducing the cost of these vehicles, most, including those powered by natural gas, propane, methanol, and electricity, are still significantly more expensive than their gasoline-powered counterparts.
A second critical roadblock impeding acceptance of alternatively fueled vehicles is the lack of an adequate refueling infrastructure. I received a call a few months ago from a woman who had just purchased a compressed natural gas-powered car made by a domestic manufacturer. Her entire car pool loved the car, especially the absence of any ``exhaust smell'' when you stood behind the car. She was calling to find out if we could help her locate more places to fuel it. She lives in Boston, and knew of only three fueling stations within a reasonable driving area. If this is the case in a major metropolitan area--which has a significant number of compressed natural gas-powered fleets in operation--it is clear that we have a long way to go. The Alternative Fuels Promotion Act offers strong incentives aimed at minimizing these roadblocks.
We know that when national policy supports the creative energies and potential of the private sector, progress is made at a faster rate. The private sector is leading the way in developing alternative fuel vehicle technology. We need to provide consumers with a strong financial incentive to use this technology. Certainly, our continued dependence on foreign oil and the contribution of conventionally-powered vehicles to air pollution--including greenhouse gases--compels us to try. I encourage my colleagues to take a hard look at our environment and our national energy security, and to pass the Alternative Fuels Tax Incentives Act during this Congress.
I ask unanimous consent that this statement be inserted in the RECORD immediately after Senator JEFFORDS' statement introducing the Alternative Fuels Tax Incentives Act.
Mr. ROBB. Mr. President, I am pleased to be an original co-sponsor of the Alternative Fuels Tax Incentive Act. This legislation will help accomplish two things. First, it will promote the production and use of cars that use clean fuels, and will consequently improve air quality. Secondly, the tax credit will improve our energy independence. I honestly believe that one of the best things we can do for this country is to find a way to fuel transportation that is cleaner, and more reliable. Our automobile emissions get cleaner every year. But there are more of us on the road every year, and we drive more miles every year. So we have to keep increasing our efforts in the direction of more efficient vehicles and cleaner fuels.
Earlier this year, we experienced a sharp spike in fuel prices, courtesy of OPEC. It wasn't the first time and it won't be the last. It is imperative for our country to keep moving in the direction of energy independence, and I am convinced that it can be done without sacrificing convenience, mobility, or the environment. But we need to find a substitute for gasoline, and we need to combine the most efficient technologies in a way that provides convenient transportation.
New automotive technologies are being developed by automobile companies, in concert with some of our fine engineering schools. All these technologies show promise, but after the pilot stage and before achieving mass appeal, there is a critical phase at which we can help a new idea grow, or we can ignore it and perhaps let it fail. This tax credit is a tool that can be used to bridge the gap between an experimental vehicle and a commercially available vehicle. It encompasses the kind of creative thinking that we need to employ if we are going to reach a new standard of efficiency in automotive technology.
I look forward to a full discussion of the benefits of this bill, and hope my colleagues will join me in supporting this bill, and move for quick passage.
By Mr. SARBANES (for himself, Mr. DASCHLE, Mr. DODD, Mr. KERRY, Mr. BRYAN, Mr. JOHNSON, Mr. REED, Mr. SCHUMER, Mr. BAYH, and Mr. EDWARDS):
S. 2592. A bill to establish a program to promote access to financial services, in particular for low- and moderate-income persons who lack access to such services, and for other purposes; to the Committee on Banking, Housing, and Urban Affairs.
FIRST ACCOUNTS ACT OF 2000
Mr. SARBANES. Mr. President, I rise today to address a very serious problem facing our nation: millions of low- and moderate-income Americans lack adequate access to basic financial services. I am pleased to introduce the First Accounts Act of 2000 (``FAA''). This bill, which has been proposed by the Administration, establishes a pilot program within the Department of the Treasury designed to promote access to financial services for the millions of low- and moderate income persons currently facing barriers to affordable and convenient banking services. Joining as original co-sponsors in the introduction of this legislation are the Senate Democratic leader, Senator DASCHLE, and my fellow Democratic members of the Banking Committee--Senators DODD, KERRY, BRYAN, JOHNSON, REED, SCHUMER, EDWARDS, and BAYH.
Access to basic banking services is essential for Americans seeking to participate fully in our increasingly complex financial and economic system. Unfortunately, recent studies show that millions of families lack access to affordable banking accounts and safe and secure ATMs, and do not have adequate knowledge of beneficial financial services and products. The lack of information and access to such financial services limits economic opportunities for low- and moderate-income persons, steers them toward high cost services offered by fringe operators in the financial services industry, reduces their ability to manage their finances and plan for the future, and may even place these individuals at a risk to their personal safety. Under the bill, the Treasury Department is authorized to partner with financial institutions, community organizations, and financial services electronic networks to improve access to mainstream financial services in four ways: affordable banking accounts, safe and secure ATMs, extensive financial literacy, and research and development efforts.
AFFORDABLE BANKING ACCOUNTS
First, the bill would promote access to financial services by helping write-down the cost to depository institutions of establishing low-cost accounts
[Page: S4202] GPO's PDF
Althoguh seven states currently require banks to offer some form of low-cost banking accounts, there is a growing recognition that banks would voluntarily expand access to affordable accounts with appropriate encouragement. For instance, Treasury currently provides incentives under the Electronic Funds Transfer (``EFT'') program to banks that provide low-cost accounts for recipients of government checks. More than 538 federally-insured institutions signed up to offer the low-cost account during the first nine months of the EFT program.
I am pleased to have worked closely with Treasury in developing the EFT program to extend its benefits to the ``unbanked'' who receive government checks. This legislation would build on that experience to extend the benefits of direct deposit accounts to those who receive private sector checks.
THIS SEARCH THIS DOCUMENT THIS CR ISSUE GO TO
Next Hit Forward Next Document New CR Search
Prev Hit Back Prev Document HomePage
Hit List Best Sections Daily Digest Help
Doc Contents