The Obama administration proposed ending a clean-diesel grant program and cutting research for hydrogen fuel-cell vehicles while spurring the market for electric cars.
The U.S. Environmental Protection Agency's fiscal 2012 budget reduces the Clean Diesel Program's budget from $80 million in 2010 to zero. The program was reauthorized by Congress for five years and a total of $500 million in December.
President Barack Obama is working to realign the U.S. government's vehicle-technology priorities. The White House budget proposes diverting funds from a dozen energy-company tax breaks to help pay for putting 1 million electric vehicles on the road by 2015, doubling the share of electricity from clean energy by 2035 and increasing the efficiency of energy use in buildings by 20 percent.
The budget proposal would transform a $7,500 tax credit for buyers of plug-in electric cars into a rebate at the dealership so purchasers wouldn't have to wait to claim the credit on tax returns. Obama, in his State of the Union address last month, reiterated his goal of having 1 million electric vehicles, both plug-in and hybrid electric, on U.S. roads in four years.
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