April 1, 2003
The Honorable William M. Thomas The Honorable Charles B. Rangel Dear Chairman Thomas and Ranking Member Rangel: As the Committee on Ways and Means begins consideration of the Nation’s energy tax policy, I encourage you to include incentives for advanced vehicle technologies. In particular, the near-term fuel economy benefits that advanced lean-burn diesel vehicles offer make them an ideal candidate for any such incentives package. Several points merit your consideration. First, consumer and manufacturer tax incentives for advanced technology vehicles should not favor one technology over another. Each of the various advanced vehicle innovations currently under development offers unique fuel economy benefits for different periods of time. Hydrogen fuel cell vehicles, for example, offer much promise as a long-term solution to concerns about vehicle fuel economy. Gasoline-electric and diesel-electric hybrid vehicles, on the other hand, can provide near-term fuel economy increases in smaller vehicles and have demonstrated some promise for applications in larger vehicles in the future. Second, advanced lean-burn diesel vehicles are unique in that they are poised to provide significant increases in fuel economy in the near-term without sacrificing vehicle size or performance. These engines are well suited for the light duty pick-up trucks and sport utility vehicles that are popular among American consumers today. On average, an advanced lean-burn diesel vehicle will consume between 30 and 40 percent less fuel than gasoline powered engines while providing increased towing capacity and acceleration. By significantly increasing the fuel economy of some of the least efficient vehicles, broad-based consumer acceptance of advanced lean-burn diesel could dramatically increase the Nation’s overall vehicle fuel economy. I have been working with a variety of stakeholders and interest groups on legislation that will enable advanced lean-burn diesel vehicles to penetrate the marketplace. The legislation will require that diesel fuel meet regulatory specifications for sulfur, aromatics and other properties that will enhance the vehicle technology. It will also include incentives designed to increase consumer acceptance of diesel powered vehicles. While this draft legislation is not yet in final form, I encourage you to include an advanced lean-burn diesel vehicle incentive as part of the Nation’s energy tax policy. This consumer credit should offset the increased cost to consumers of an advanced lean-burn diesel vehicle as compared to its gasoline powered counterpart. Third, it is imperative that any incentives for advanced technology vehicles also contain provisions that encourage the domestic development and production of these new technologies. As our economy begins to advance toward new innovations, we must ensure that American manufacturers and American workers are well positioned to meet the rising consumer demand for these new technologies. Thank you for your consideration of these issues. If you have any questions regarding advanced technology vehicles, please do not hesitate to contact me or have your staff contact Jonathan Cordone, Democratic Counsel with the Committee on Energy and Commerce, at extension 6-3400. Sincerely,
cc: The Honorable W. J. "Billy" Tauzin, Chairman
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