"The more we can replace traditional gasoline cars, trucks, and busses with alternative fuel vehicles, the more we can improve the quality of the air we breath, combat global warming, curb gas prices, and reduce American reliance on foreign oil," said Senator Collins. According to the U.S. Department of Energy, replacing 10 percent of the gasoline used in American cars with alternatives such as biodiesel, natural gas, or fuel cells would reduce the cost of oil by three dollars per barrel.
"All the major vehicle manufacturers are introducing new technology and alternative fuel vehicles into the marketplace. These new technologies reduce petroleum consumption and improve air quality," said Senator Collins. "Our proposed tax incentives will help to spark consumer demand for environmentally friendly vehicles. This would encourage increased production and in turn make the clean vehicles more cost competitive with conventional vehicles. And the more affordable the alternative fuel vehicles become, the more and more people and communities will continue to buy them."
The CLEAR ACT provides tax credits that range from a few thousand dollars for an alternative fueled passenger car up to $40,000 for an electric city bus. The tax credit will help cities replace diesel buses, one of the worst sources of urban air pollution. All vehicles eligible for the tax credits under Senator Collins' proposal must meet ultra-low emission vehicle standards and would yield significant clean air benefits.
The legislation is supported by Ford, Honda, and Toyota, as well as the Natural Resources Defense Council, Union of Concerned Scientists, Environmental Defense, American Council for an Energy Efficient Economy, Natural Gas Vehicle Coalition, Propane Vehicle Coalition, American Methanol Institute, and the Electric Vehicle Association of the Americas.