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In November 2005, Senator Barrack Obama (D-IL) and Representative Jay Inslee (D-WA) introduced the "Health Care for Hybrids" bill in Congress. The bill follows closely from a new report, Compeitiveness, Accountability, & Innovation - Investing in Oil Savings, Retiree Health Care, and a Revitalized Auto Industry for a Stronger America, which outlines a model policy framework that would help the US auto industry take actions to reduce the nation's addiction to oil.
The report was written jointly by the Breakthrough Institute , the Natural Resources Defense Council. It outlines a new strategy to strengthen incentives for the auto industry to invest in good manufacturing jobs in energy saving technology by offering legacy health care cost relief. The report finds that by investing in assistance for catastrophic retiree health care costs, it would be possible to save over a million barrels of oil a day, while improving the competitiveness of US business and the retirement security of American workers.
The policy framework includes the following key elements:
- Legacy Health Care Cost Relief - By joining a voluntary program, manufacturers could receive relief for a percentage of their total retiree health care costs. The level of relief could then rise with domestic investment in oil saving technology.
- Manufacturing Incentives - Firms participating in this program would commit to reinvest a significant portion of health care cost savings into the domestic manufacture and commercialization of fuel-efficient vehicle technologies, including hybrids and clean diesels.
- Oil Savings - The incentives would be structured to ensure that firms achieve real oil savings by deploying new technology in their fleet. Continued participation in the program would be tied to ensuring that investments lead to real savings.
- Trust Fund Financing - By establishing a self-sustaining trust fund, capitalized with a one-time federal appropriation, a program could be designed to minimize costs to the treasury and ensure reliable and sustained funding of retiree benefits.
- Cost Offsets - Financing such a measure by closing tax loopholes that reward the outsourcing of U.S. jobs and accounting manipulation, or by linking this program to new revenue streams from climate policies, would further improve incentives.
Senator Obama has been outspoken about the policy framework. Video and text of his recent speeches on the subject are available at:
- Remarks of Senator Obama at the UAW Consitutional Convention - UAW website
- Energy Security is National Security - Barrack Obama Website
- Securing Our Energy Future - Resources for the Future
- Library of Congress - S. 2045 and H.R. 4370