The Obama administration has put a lot of weight behind electric and alternative-fuel cars, offering tax incentives in order to increase their sales and reduce fuel consumption and CO2 emissions.
According to a DetNews report, the chairman of the House Science Committee’s panel on energy and environment, Andy Harris, has sent a letter to Energy Secretary Steven Chu requesting information about Obama’s proposal to spend more than US$1 billion in tax incentives and related infrastructure.
In his letter, Harris questions the proposed increase of tax incentives by US$2,500 for buyers of “clean” vehicles. He says that, according to GM, the average Chevrolet Volt owner has an annual income of US$170,000.
Harris also notes that Ecototality, a charging-station company that has received a US$114.8 million federal grant, has installed only half the charging stations it was supposed to. Moreover, it is currently under investigation by the Securities and Exchange Commission for inside trading.
The House panel chairman asks “what is the status of and outlook for President Obama’s goal of putting 1 million EVs on the road by 2015” – something that the current president had promised during his 2008 election campaign. He also cites the problems faced by the Volt and the Fisker Karma, and questions whether electric cars can be competitive without government subsidies.
Additionally, the letter states that the Obama administration has spent more than US$13 billion in federal loans and grants to make electric vehicles more attractive to buyers and “has generated great concern regarding the potential for waste, duplication and cronyism and the potential of picking ‘winners and losers’ among competing companies and technologies.”
The Energy Department did not respond directly to the letter, however its spokesman Jen Stutsman made the following statement:
“As part of President Obama’s sustained and comprehensive approach to lowering energy costs for American consumers, the administration is pursuing an all-of-the-above energy strategy. This includes… investing in cutting-edge electric vehicle technologies that will insulate American drivers from high prices at the pump over the long-term.”
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