Gov. Parris N. Glendening's plan to encourage the use of electric cars and other "clean-fuel" vehicles may face a rough road in the legislature.
Yesterday, representatives from four major oil companies told the House Ways and Means Committee that the administration's proposal would unfairly subsidize alternative fuels, which they said were no cleaner than reformulated gasolines now on the market.
The measure, House Bill 821, would grant an income or franchise tax credit to businesses and utilities that buy cars and trucks powered by electricity, natural gas, propane, methanol and ethanol. The credit would range from $1,300 for a car to $32,500 for buses and heavy trucks.
The bill also could run afoul of lawmakers concerned by an avalanche of special interest tax cuts before them.
"The question is, where do we make up the lost revenue?" said Del. Sheila E. Hixson, a Montgomery County Democrat and the committee chairwoman.
Steve Larsen, a lobbyist for the governor, said the tax credit would be offered only through 1998. It would cost no more than $500,000 next year and $2.25 million over three years, he said.
The administration hopes to encourage the use of "clean-fuel" vehicles as part of its program to bring the state into compliance with the federal Clean Air Act, Mr. Larsen said.
Little agreement on welfare reform
Everyone from public assistance recipients to cost-cutting conservatives wants to reform welfare. But as a House panel found out yesterday, there is little agreement about how to go about it.
A proposal that would set up a pilot program to test welfare reform in Baltimore and in Anne Arundel and Prince George's counties was roundly criticized at an Appropriations Committee hearing.
Most of the criticism was directed at two sections of the bill -- a proposal to cut off welfare after 18 months and a provision that would deny increased payments for babies born to mothers enrolled in the Aid to Families with Dependent Children program.
Some critics said the latter would penalize children. Others said it would coerce women into having abortions.
Most witnesses praised proposals that would allow recipients to save more, to own a car valued at up to $5,000 and to continue to receive Medicaid for up to two years if they took low-paying jobs.
A similar measure passed the legislature last year but was vetoed by Gov. William Donald Schaefer because it did not include the provision barring increased payments.