Incentives for Low-Emission Vehicles
By Pat Spillman

In Houston, like in the rest of the United States, the trend toward driving ever-larger sport utility vehicles, trucks, and cars is increasing oil consumption and automobile emissions. Shifting drivers from large, low-gas mileage automobiles to more fuel-efficient, less polluting electric, gasoline/electric, and hydrogen fuel cell cars could help reduce dependence on oil and air pollution. And incentives to purchase these vehicles provided by the City of Houston and Harris County could facilitate this shift.

Jane Laping of Mothers for Clean Air and Sarah Doss of CEC take a spin in Jane's new hybrid Toyota® Prius

The City of Houston acknowledges the need to reduce pollution from cars. Mayor Lee P. Brown has mandated that new City fleet vehicles have the lowest possible emissions. Two City departments recently purchased more than 20 Toyota Prius gasoline-electric hybrids in response to the Mayor’s mandate.

But Houston as well as Harris County could also provide incentives for area motorists to buy and drive low-emission vehicles. Incentives currently being used in other areas would help clean the air and defray the cost of low-emission vehicles, which are currently more expensive than their gasoline-only counterparts. Hybrid models cost about $5,000 more than similar-sized gasoline-powered models because production volume for the U.S. market, although rising, is small. A zero-emission electric car currently can cost more than $40,000. Hydrogen fuel cell cars show great promise in early development but will be expensive until produced in substantial numbers. Even with the one-time $2,000 federal tax deduction for electric cars and hybrids and potential savings of hundreds of dollars a year in fuel expense, the cost differential may dissuade buyers from trading in the SUV.

Although the number of low-emission vehicles on the road is small, as more drivers demand them, production and competition among manufacturers will increase and prices will fall relative to gasoline only models. Demand can be stimulated by giving drivers incentives to make the switch. Several states offer tax breaks, or cash incentives or will reduce or waive auto registration and licensing fees for low-emission vehicles.

Here are three sets of incentives that Houston and Harris County could provide with relative ease and no major up-front cash outlay:

First, free or preferential parking for low-emission vehicles could be allowed downtown, at Hobby and Intercontinental Airports, at City venues like Reliant Stadium, and in the museum and hospital districts. Sacramento offers free downtown parking for electric vehicles. LAX airport in Los Angeles allows electric vehicles to park for free and provides stations for battery charging. Hawaii exempts electric vehicles from fees in public parking areas including metered spaces. The ease of close-in parking and reduced parking fees could be an attractive economic incentive for downtown workers.

Second, tolls on Beltway 8 and the Hardy Toll Road could be reduced or eliminated for low-emission vehicles. This could easily be accomplished by issuing special toll tags matched to license plate numbers to prevent their use with non-qualifying vehicles. The savings in toll charges could add up to hundreds of dollars a year, providing another strong incentive to trade in the gas-guzzler.

Third, low-emission vehicles could be allowed single-occupancy use of HOV lanes at all times. California and Hawaii exempt electric cars from the HOV multi-passenger requirement. Virginia extends a similar exemption to hybrids. This convenience would be of value to long-distance commuters into the inner city. Qualifying vehicles could use a windshield sticker for easy recognition by police.

Altogether, such positive, non-coercive incentives could make low-emission vehicles much more financially attractive to Houston car buyers and produce real and lasting environmental benefits for the region. They could also give Houston’s dismal environmental image a much-needed improvement.