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Hybrid Incentives Must Set a “Standard”
7/27/07

As you know, our intrepid Program Assistant Lindsay Vidal does a remarkable job sifting through newspapers and legislative indexes all over the country trying to keep our ever-expanding list of hybrid incentives as up-to-date as possible. One incentive we are about to add is the recently enacted Illinois hybrid rebate program initiated by State Treasurer Alexi Giannoulias.

The way the program works is pretty interesting. The state has ponied-up $2 million to give $1,000 rebates on hybrids if you use a participating financial institution for a car loan. The bank that does your loan will give you the rebate. What is also interesting here is this is the first incentive I have ever seen that actually allows the rebate to extend to the purchase of a used hybrid (with less than 7,500 miles on it).

But here’s where we at UCS run into an issue with this type of incentive. First, it’s a flat $1,000 for any qualifying vehicle. Second, the qualifying vehicles are pretty much anything that calls itself a hybrid. So, amazingly enough, hollow hybrids like the GMC Sierra and Chevy Silverado “hybrid” pickups, and muscle hybrids like the Honda Accord Hybrid and Lexus GS 450h, will get buyers the same taxpayer money as buying a Prius, Escape Hybrid, or Civic Hybrid.

This incentive lacks any standard whatsoever. And standards make all the difference between policies that can push automakers and consumers into providing and purchasing better choices, and policies that just “doing something” to try and be more environmentally sensitive (or at least appear that way). Simply put, policies without standards are usually a one-way ticket to ineffectiveness.

This is why we worked hard with Congress to ensure that the federal advanced vehicle tax credit had both performance-based credits and a baseline emission standard. The both performance-based credits are based on the fuel economy improvements of the hybrid technology as compared to conventional vehicles in its class. The baseline smog forming emission standard is so that some hybrid and diesel vehicles that traded fuel economy for smog would not be eligible. Those standards have helped push consumers to cleaner cars, and make a statement to automakers that trading fuel economy for smog was not going to pass muster.

So if your county, city, or state is considering trying to be more green with a hybrid perk of its own—be it a sales tax exemption, free parking, or a rebate—be sure to push your decision maker into supporting incentives that don’t just reward the hybrid name, but give credit for how that technology is actually used.

Posted by: ScottN 7/27/07

Original post and comments can be found on Hybridblog.org.