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Hybrid electric vehicles, which use both electricity and traditional fuels, represent a technology that could reduce reliance on fossil fuels and imported petroleum.
However, the limits do not apply to fuel cell electric vehicles, which represent less than 1percentt of rebate applications.
The company has three electric vehicles, which it charges from its own solar energy and uses for local cheese deliveries.
Just over a quarter of those are pure electric vehicles, which will remain eligible for the reduced funding.
Unlike electric vehicles, which can be recharged at home, hydrogen vehicles will require a network of filling stations.
Mr. Vines said the Tesla fire was likely to generate more doubts about the performance of electric vehicles, which have been slow to catch on with American consumers.
Mr. Craver said that his company operated the nation's largest fleet of electric vehicles, which had traveled over 18 million miles in the last 20 years.
The fledgling market for electric vehicles, which might help clean up the polluted air, is losing traction because customers aren't confident they can fill up the battery.
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The company may still be testing their electric vehicle – which as yet does not have a projected production date – but for the first time they've let a reporter get behind the wheel.
Nissan Motor is planning a purely electric vehicle, which it plans to begin selling by 2010.
And then there's EV, or Electric Vehicle, which keeps the engine inoperative and disconnected provided there's enough battery and you don't go over 31mph.
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