Ford Urges Frist To Reduce US Dependence On Foreign Oil

WASHINGTON – Congressman Harold Ford sent a letter to Senate Majority Leader and fellow Tennessean Bill Frist today urging his help in keeping incentives for the manufacture and use of hybrid automobiles in this year's energy bill. The increased use of hybrid technology will reduce the national dependence on foreign oil and reduce pollution from fossil fuel burning automobiles.

Earlier this year, Ford passed an amendment to the energy bill to provide $3 billion over 10 years in the form of incentives for producers and consumers of hybrid technology. Although the amendment passed the House, it is currently before a committee of conferees appointed by the House and Senate to reconcile both versions of the energy bill and send the agreed upon legislation to the President.

The text of Congressman Ford's letter is below.

Dear Senator Frist,

I am writing to request your assistance with regard to House Amendment 85 to the Energy Policy Act of 2005. The original amendment, which I sponsored, authorized a total of $3 billion over 10 years for incentives to domestic manufacturers and consumers to promote the production and sales of efficient hybrid and advanced diesel vehicles.

This amendment holds great promise for Tennessee, which has the seventh highest automobile industry employment in the country, with more than 8 percent of the state's workforce employed either in the automobile industry or in a job dependent on the auto industry. Tennessee workers put more than half a million cars and trucks on the road in 2004, and they are poised to help lead this country in the production of the next generation of fuel efficient vehicles.

Unfortunately, while the amendment has been included in the current draft of the energy bill, the conferees have informed me that they have made three substantive changes, each of which threatens to undermine its spirit and intent.

First, rather than define "domestic manufacturers" broadly to include companies that manufacture, assemble or produce efficient hybrid and advanced diesel vehicles in the United States as I requested, the conferees have left the matter open to future interpretation. The amendment is intended to promote the widespread production and adoption of energy efficient vehicles. But should the program be interpreted to apply to just those producers headquartered in the United States, the achievement of this goal would be seriously jeopardized.

Indeed, a narrowly tailored rule would exclude companies such as Nissan, which recently designated its facility in Smyrna, Tennessee as its plant of choice to produce Nissan's first hybrid vehicles. Such an interpretation would be a blow to the 6,700 men and women employed at the Smyrna plant who can produce up to 550,000 vehicles each year. I urge you to work with the conferees to insert clear and unambiguous language in the bill that the program should include all qualifying vehicles manufactured, assembled or produced in the United States.

Second, while the amendment originally called for $3 billion over ten years, the conferees have dropped the authorization of a pre-determined amount of funding for the program. By eliminating the strong monetary commitment behind the program, the conferees have signaled their belief that this is a hollow amendment – a good idea unsupported by funding. A toothless program will hardly be welcome news to the 5,700 men and women working at Saturn's Spring Hill, Tennessee plant or the more than 1,300 Peterbilt workers in Madison, Tennessee who produce approximately 60 large trucks each day. It certainly will not help them remain on the cutting edge of fuel-efficient vehicles.

Finally, the conferees have eliminated the consumer component of the program, meaning that the bill will not provide the kind of rebates and promotional programs that are needed to make widespread adoption of hybrid and advanced diesel vehicles a reality. Despite recent advances in technology, hybrid vehicles remain more expensive than their conventional counterparts. For example, the difference between the manufacturer's suggested retail price of a 2005 hybrid Honda Civic and a 2005 conventional Honda Civic is $4,290. Even factoring in fuel cost savings and the income tax deduction for energy efficient vehicles, the net price difference is still more than $1,500.

Without meaningful purchase incentives, consumers across the state – from farmers in Carroll and Maury counties to trucking companies like Averitt Express, which puts 3,000 trucks on the road each year – will be less able to afford the higher cost of the next generation of fuel efficient vehicles.

If we are serious about weaning ourselves off foreign sources of oil and improving the quality of air that our children and grandchildren breathe, then it is imperative that we adopt strong and meaningful incentives supported by funding commitments. Unfortunately, the changes proposed by the conferees turn what could be a significant step forward into several steps back. Without programs like the one contemplated by this amendment, this energy bill will leave us mired in the status quo – dependent on foreign oil and captive to countries who may not share our interests.

I therefore urge you to help keep this amendment intact and extend its applicability to every maker of hybrid and advanced diesel vehicles in the United States, with real funding authorization and meaningful incentives for manufacturers and consumers alike. I know that you are committed to sound energy policy that serves our long term interests. I appreciate your efforts in this regard and I stand prepared to work with you to ensure that America remain strong, safe and clean for generations to come.

Sincerely,

HAROLD FORD

From: Press release