Senator Bingaman on Alternative Fuel Vehicles

On May 1st, Senator Jeff Bingaman of New Mexico chaired a hearing to explore possible incentives Congress should consider in helping to expand the availability of advance technology vehicles in our country. He also opened conversation on how the United States can become the world leader in manufacturing alternative fuels.

Bingaman invited Martin Eberhard, CEO of Tesla Motors, to testify. The hearing in the Finance Committee's Subcommittee on Energy, Natural Resources and Infrastructure took a closer look at what incentives are needed to create a larger market for vehicles that use less - or no - fossil fuels, and to encourage more companies like Tesla Motors to manufacture their products in the U.S. Bingaman is the chairman of the Subcommittee on Energy, Natural Resources and Infrastructure.

"Right now, over 50 percent of the nearly 21 million barrels of oil we use each day in the U.S. is imported. And almost 70 percent of that oil consumption is used in the transportation sector. 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," Bingaman said.

The U.S. tax code has several incentives to encourage manufacturers and consumers to build and purchase more fuel efficient vehicles. There are 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 take the place of imported fuels.

But the Senator wants to do more. "We have taken steps that allow us to continue providing incentives to all types of advanced technologies that increase our fuel efficiency and reduce polluting emissions. What we learned today is that we also need to provide incentives for manufacturers to produce these technologies in the United States," Bingaman said. Today the Senate Energy and Natural Resources Committee met to vote on legislation to promote the efficient use of energy, expand the use of biofuels and to invest in research and development capture and storing of carbon emissions.

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United States Senator – Jeff Bingaman