Texas capital proposing to allocate $1 million to provide $1000 each to the first 1000 purchasers of plug-in hybrids.

A top Texas utility executive is pushing an initiative to promote the use of plug-in hybrid cars and trucks as a means of decreasing the cost and environmental impact from both the transportation and electric power industries. If adopted by the Austin, TX city council, this executive plans to package his plan of tax incentives for other U.S. cities' consideration.

The program would promote the use of plug-in hybrids -- similar to hybrids on the market today like Toyota's Prius, but with the option of operating the vehicle purely on electricity -- through a combination of utility rebates, government fleet purchase orders, foundation grants and regulatory means. Plug-in hybrids, just as the Prius does, operate on an electric motor at low speeds and recharge the battery from heat generated while braking. However, the driver also may plug in the vehicle, allowing it to operate solely on the electric power from the battery.

The official, Roger Duncan, deputy general manager of Austin Energy, said at a background briefing in Washington, D.C., that the proposal is also a plan to promote renewable energy, such as wind, solar and biomass, so if adopted, emission credits would be given to utility companies for emissions reduced in the transportation sector in proportion to the incentives they receive and based on the source of fuel for the electrification of the vehicles.

According to Duncan, the city would allocate $1 million to provide $1000 each to the first 1000 purchasers of plug-in hybrids. Like today's hybrids, plug-in hybrids are expected to be at least $3,000 more than their conventional counterparts.