DC 2010: Would a federal diesel tax rebate be in order? Diesel coalition thinks so

Last year, BorgWarner and Robert Bosch LLC founded the U.S. Coalition for Advanced Diesel Cars. For the first anniversary party, the group is present in the EDTA advanced technology section of the Washington Auto Show to announce three new menbers – Tenneco, Dow Automotive and Umicore – and to explain that the latest diesel vehicles are clean, available today and need to stop being the ignored child in federal green vehicle policy.

Scott Gallett, vice president of marketing and public relations for BorgWarner, told AutoblogGreen that the U.S. Coalition for Advanced Diesel Cars is about more than simply promoting diesel in the U.S. Yes, it is U.S.-focused and it's pro-clean diesel, but it's specifically about passenger vehicles and it's only an advocacy group, not an educational organization, and lobbies to give diesel a level playing field against other technologies.

Specifically, the group is working on the consumer tax credit that applies to hybrid and other lean burn vehicles. The tax break is currently available but it is being phased out and no longer applies to some popular models, The value of that tax credit is based on how that vehicle performs in the city, which "is not really technologically neutral," Gallett said. At the very least, the Coalition is asking that the credit be based on a vehicle's city and highway miles per gallon rating. Gallett doesn't fault the lawmakers for this situation – the law was written for hybrids, which perform better in the city, after all. "I think it was just missed," he said.

The other side of the tax law they want to go after is the discrepancy at the pump, where diesel taxes are 33 percent higher than gasoline taxes (diesel is federally taxed at 24.4 cents per gallon, gasoline at 18.4 cents per gallon). Gallett said:
There's a good reason why it's like that. In the past, fuel prices and taxes went to repair roads, and they still do. Diesel was used only in large commercial trucks, which have a little more wear and tear on the roads, so they should pay more to have the roads maintained. That all makes sense. Now, though, there is clean diesel available in passenger cars.
The Coalition's proposal is to bring back a federal tax return rebate similar to a rebate that was available in the 1980s (worth, say, $400 a year for driving a diesel car). Gallett said that, for the most part, when lawmakers learn about the disparity, they are receptive to adjusting the laws, but just when and how things will change is unclear. Since the five members of the Coalition supply parts to automakers for all sorts of powertrains, Gallett said:
We're not trying to have some special push for diesels. We don't think it needs it. We think if you make the playing field level, consumers will vote and diesel will play its proper role in the U.S. market.
More details after the jump.

PRESS RELEASE

Clean Diesel Coalition Expands Membership, Unveils New Members at Washington Auto Show

Tenneco, Dow Automotive and Umicore join the only advocacy group exclusively dedicated to clean diesel passenger vehicles

Washington, D.C., January 26, 2010 - The U.S. Coalition for Advanced Diesel Cars, a partnership committed to promoting the energy efficiency and environmental benefits of advanced clean diesel technology for passenger vehicles in the United States, today announced an expansion of its membership to include three leading fuel efficiency and emission control technology companies: Tenneco Inc., Dow Automotive and Umicore.

"We are proud to welcome these organizations into the Coalition as we broaden our stable of partners working to ensure all automotive technologies receive equal treatment among federal, state and local legislators and regulators," said Jeffrey Breneman, executive director of the Coalition. "The increasing awareness and excitement about advanced clean diesel in Washington and nationally is spurring growth in membership of our Coalition. These new member companies have an impressive track record of developing advanced technologies that improve energy efficiency and lower exhaust emissions. We look forward to a fruitful partnership ahead."

As the only advocacy group exclusively dedicated to clean diesel passenger vehicles, the Coalition advocates for public policies and regulations that reward innovation and encourage a broad portfolio of technologies to maximize fuel efficiency and greenhouse gas emission reductions. As it strives to encourage development of clean diesel cars in the U.S. marketplace, the Coalition is educating lawmakers about advanced clean diesel's benefits and how it helps foster energy independence, reduce greenhouse gas emissions and create jobs.

"Tenneco, Dow Automotive and Umicore each offer a breadth of solutions that today's sophisticated consumers want in their vehicles," said Scott Gallett, vice president of marketing for BorgWarner and president of the board of directors for the Coalition. "While they understand the benefits of different vehicle technologies, they all agree that clean diesel should be more available in the U.S. market if we want to achieve our near term efficiency and emission reduction goals. This approach fits perfectly into our Coalition's mission."

Founding members Robert Bosch, LLC and BorgWarner, alongside the newest Coalition member companies, are at the forefront of a new era in advanced automotive technology. Each company offers an innovative approach to developing solutions that reduce the impact on the environment, while still maintaining the torque and performance that drivers want in their vehicles. Today, clean diesel cars provide the highest fuel economy in real-world driving, performing with 30 percent better fuel economy, up to 25 percent less CO2 emissions and 50 percent better torque than comparable gasoline vehicles.

The Coalition is located on the first floor at the Bosch booth (Hall A, Booth 16) at the Washington Auto Show. Attendees are invited to visit the booth and learn about the advanced technology powering clean diesel automobiles on the road today. Member company executives will be on hand to discuss expectations for the diesel industry in 2010, as well as policy and regulatory implications impacting the adoption of clean diesel in the U.S. market.

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The U.S. Coalition for Advanced Diesel Cars
The U.S. Coalition for Advanced Diesel Cars is a partnership committed to promoting the energy efficiency and environmental benefits of advanced clean diesel technology for passenger vehicles in the U.S. marketplace. It is the only advocacy group exclusively dedicated to clean diesel passenger vehicles. The Coalition advocates for technology-neutral public policies and regulations rewarding innovation and providing equal market opportunities for advanced technology passenger vehicles. The Coalition is based in Washington, D.C. and is national in scope. For more, please visit www.cleandieseldelivers.com.

BorgWarner
Auburn Hills, Michigan-based BorgWarner Inc. (NYSE: BWA) is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The FORTUNE 500 company operates manufacturing and technical facilities in 60 locations in 18 countries. Customers include VW/Audi, Ford, Toyota, Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, John Deere, PSA, and MAN. For more information on the company visit www.borgwarner.com.

Robert Bosch, LLC
The Bosch Group is a leading global supplier of technology and services. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in roughly 50 countries. This worldwide development, manufacturing, and sales network are the foundation for further growth. In North America, the Bosch Group manufactures and markets automotive original equipment and aftermarket products, industrial automation and mobile products, power tools and accessories, security technology, thermo-technology, packaging equipment and household appliances. Bosch employs approximately 25,000 associates in more than 70 locations throughout the U.S., Canada and Mexico. For more information on the company, visit www.boschusa.com.

Dow Automotive
Dow Automotive Systems is a leading provider of polyurethanes, elastomers, films, fluids, adhesives, emission and clean powertrain solutions and acoustic-management materials to the global transportation industry. By working collaboratively with passenger vehicle, commercial transportation and aftermarket customers, Dow Automotive Systems is developing industry-leading solutions to address a wide range of critical market needs – increasing energy efficiency, improving safety and health, reducing exhaust emissions and enhancing vehicle quality and appeal. For additional information about Dow Automotive, visit www.dowautomotive.com

Tenneco, Inc.
Tenneco is a $5.9 billion global manufacturing company with headquarters in Lake Forest, Illinois and approximately 21,000 employees worldwide. Tenneco is one of the world's largest designers, manufacturers and marketers of emission control and ride control products and systems for the automotive original equipment market and the aftermarket. Tenneco markets its products principally under the Monroe®, Walker®, Gillet™ and Clevite®Elastomer brand names.

Umicore
Automotive Catalysts is a business unit of Umicore, a materials technology group with industrial operations and research and development activities on all continents. We are one of the world's leading producers of catalysts used in automotive emission systems – our strong technology focus has secured us a leading position for light-duty Diesel emission systems meeting the most stringent regulatory standards globally
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Our travel and lodging for this media event were provided by the Auto Alliance.

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