In today’s hearing in the new Finance Subcommittee on Energy, Natural
Resources, and Infrastructure, we look forward to hearing testimony on
advanced technology vehicles. As we discuss energy policy and the most
efficient path toward energy security and independence, we naturally
turn to the issue of transportation fuels.
Right now, over 50% of the nearly 21 million barrels of oil we use each
day in the U.S. is imported. And almost 70% of that oil consumption is
used in the transportation sector. In 2007, we expect American to use
over 14 millions barrels of oil to drive to work and do their chores, to
travel within their communities, and to travel on vacation. We will also
use over 4 million barrels of fuel on industrial transportation. Ten
million gallons of that fuel will be imported.
These numbers suggest that in order to achieve energy security, we need
to reduce our use of imported fuels. We can begin this effort by
becoming efficient users of transportation fuels.
In our tax code, we have several incentives aimed at encouraging
manufacturers and consumers across many industries to build and purchase
more fuel efficient vehicles. We have tax credits for the purchase of
vehicles featuring technologies that greatly increase their fuel
economies. And we have tax penalties that apply to the purchase of the
least fuel efficient vehicles. The tax code also features credits,
against income or excise tax, for bio-based fuel blends that displace
imported fuels.
And while we pursue energy security, we are always mindful of
environmental concerns. Our vehicle tax credits have minimum emissions
standards. And our alternative fuels credits are intended to encourage
clean burning fuels.
We hope during this hearing to establish a record regarding the response
of the market in general, and of vehicle manufacturers in particular, to
the current tax incentives for efficient and clean vehicles. And as
always, we are interested in hearing testimony on new incentives that
might be more effective in helping us achieve our energy policy goals
with respect to transportation fuel usage.
In particular, we sought testimony from:
- Manufacturers who employ cutting edge power storage technologies;
- Manufacturers who are active in the traditional and diesel markets;
- Producers of alternative transportation fuel who can speak to fueling
station needs, and
- Scholars from the automotive industry who have long studied the
response of the industry to Federal energy policies.
Witnesses
- Mark
Chernoby,
Vice President, Advance Vehicle Engineering, DaimlerChrysler
Corporation
- David
Vieau,
CEO, A123Systems
- Martin
Eberhard,
CEO, Tesla Motors
- Dr. Walter
McManus,
University of Michigan, Transportation Research Institute
- Phillip Baxley, President, Shell Hydrogen,
LLC
Senate Finance Committee
Energy, Natural Resources, and Infrastructure Subcommittee
215 Dirksen
05/01/2007 at 10:00AM