Alternative-Fuel Car Plan Leaves Lawmakers in Jam

Gary King suspects he knows how the state will recoup the runaway costs from its botched subsidy program for alternative-fuel vehicles: his wallet.

“We’re all going to have to pay for this one,” said the planning consultant from Chandler as he stood in an absentee voting line Monday.

The subsidy program, expected to cost about $3 million, will run some $483 million, and the fallout might show on election day as the Republican Legislature feels the heat. Some lawmakers face criminal investigations for fraud, bribery and conflict of interest; the House speaker faces an ethics inquiry.

Approved this year by the Legislature, the program offered people large incentives to use cars that run on so-called clean fuels, such as natural gas or propane.

It proved unexpectedly popular: So many residents rushed to take advantage of the tax breaks offered by the state that the program’s costs have spiraled nearly out of control.

Thousands of Arizonans poured into dealerships to buy or convert an estimated 22,000 vehicles.

It has left people such as Phoenix schoolteacher Evangeline Rivera shaking her head. “I can’t believe they didn’t run a projection--a well thought-out projection--before they started this,” Rivera said.

The fallout could be more than just public disgust, judging by criticism on the radio and newspaper editorial pages.

“This is an embarrassment to the whole Republican Party,” said state Sen. David Petersen, a Republican. “Not only do we have the speaker involved, we have a number of legislators who voted for it and a governor who didn’t catch this early on.”

Six Republican House members who voted for the law were also among the first to take advantage of the credits. Applications provided by the Department of Commerce show the lawmakers either bought new vehicles or converted cars to run on compressed natural gas or propane. That made them eligible for tax rebates of up to $19,000. At least three of them since have said they either have canceled the planned purchases or will not claim the credits.

State Atty. Gen. Janet Napolitano, a Democrat, launched a criminal investigation that could involve allegations of fraud, bribery and conflict of interest. She declined to identify potential targets.

House Speaker Jeff Groscost, the program’s chief architect, faces ethics scrutiny because he has purchased and leased several vehicles from a conversion company whose president was involved with drafting the law.

Groscost has denied he profited from his work, saying his only motive was to reduce air pollution and dependence on foreign oil. But it has left him suddenly vulnerable in next week’s election, despite his heavily Republican district. He is running against Democrat Jay Blanchard, an Arizona State University professor and former Marine pilot.