The energy bill, hybrid critics and American political ineptitude

The energy bill isn't a complete waste, but the amount of pork-barrel legislation that becomes part of any legislation is truly astounding.

Anyway, the clean vehicle tax credits were initially meant to reward technological innovations that provide clean energy and reduce foreign oil dependency. The original intention of the clean vehicle tax credits was to reward expensive and advanced technologies, such as hybrid cars and fuel cell vehicles, as an incentive for greater production and development amidst high costs.

Since neither GM nor Chrysler have any hybrid vehicles, they successfully lobbied Congress to add clean diesel vehicles to the tax credit as well.

At first glance this might seem fine. Shouldn't any clean technology be able to utilize the clean vehicle tax credit?

That might be OK if not for the caps on the amount of vehicles that can qualify for the tax credits. Under the clean vehicle tax credit, not everyone who buys a hybrid car, for example, will be able to utilize the tax credit. Additionally, Chrysler and GM can utilize the tax credits to promote diesel, instead of hybrids. In fact, tax credits for diesels offer GM and Chrysler incentives NOT to produce hybrids, since there are only a limited number of credits available.

So what? Diesel can achieve the same fuel efficiency as hybrids at a cheaper cost, some diesel advocates will reply.

Hogwash. The only way a super clean diesel engine will match the efficiency of true hybrid vehicles is by utilizing EPA fuel efficiency testing methodologies.

Well, the Toyota Prius hybrid doesn't achieve EPA fuel efficiency estimates the critics will clamor.



The truth is, very few vehicles achieve EPA fuel efficiency ratings. This isn't a hybrid vehicle issue. In fact, in real world driving it is large trucks, SUVs, and overly-horsepowered cars that miserably fail to achieve their EPA estimates. I'm still waiting for the hybrid-hating editors at AutoWeek to address this one (more on this).

There are number of problems with EPA fuel efficiency estimates, but the biggest is the EPA's assumption that Americans do most of their driving on the highway going 55 mph.

This simply isn't true. Congestion is becoming more and more commonplace in America, and the problem is only going to get worse. Don't believe me? Check out what the Department of Transportation has to say on the matter (click here).

In congested traffic, hybrid vehicles achieve their best fuel efficiency and, in such conditions the Toyota Prius, contrary to its many critics, can achieve the EPA estimated 60 mpg, or even higher. On the contrary, conventional vehicles perform their worst in these conditions, and that is the problem with clean diesel.

In congestion, clean diesel does not perform as well as hybrids. If not only congestion, but increased congestion, is the future for the American driver, then diesels luster truly beings to tarnish.

More important, in terms of congestion, hybrids offer significant untapped potential. Plug-in hybrids and new hybrid batteries will offer the potential for hybrids to become significantly more fuel efficient. A 100 mpg Prius is possible with today's technology. Even a 100 mpg Ford Escape hybrid SUV, or a 100 mpg Toyota Highlander hybrid SUV, isn't that far off if hybrid batteries continue their current gains in efficiency and size and/or if plug-in capabilities are added.

Ultimately, the technology that has made computers faster, more powerful, smaller and more portable is essentially the same technology that is key to hybrid vehicles. Equally important, this same technology will ultimately be key to fuel cell vehicles.

Quite simply, diesel technology will never be the answer to foreign oil dependency, but advanced hybrids can not only end foreign oil dependency, but they could do it almost pollution-free.

While I agree that diesel technology offers important gains in fuel efficiency and can be a good buy today, diesel technology simply doesn't compare to the potential of hybrid technology. With a limited number of tax credits available, and a Congress that refuses to address fuel efficiency - even in the midst of oil wars in Iraq and oil-driven terrorism - technology offers the only hope for change.

Thus, only the most promising technologies should be rewarded with tax credits. Otherwise tax credits for clean vehicles become another loophole for the Big 3 to increase our foreign oil dependency, as a new EPA report - withheld until the passage of the energy bill - is going to show (Read).

Sure GM can continue to assure Congress that cheap fuel cell vehicles are just around the corner, as GM has done for decades. Nonetheless, too many smart people have noted that this simply doesn't seem possible, and how many decades does it take to get around the corner?

How long will Americans continue to tolerate such unAmerican leadership from one of America's most important American companies. Neither consumers, nor citizens, but shareholders, are the only concern to GM.

Ultimately, the clean vehicle tax credits and much of the energy bill promotes and endorses complacency, rather than technological innovation. With such political and corporate ineptitude leading America, is it really any wonder that America continues to fall further and further behind in the technological battlefield?

Congress and corporation, an American disgrace.