Office of the Governor Rick Perry

Gov. Perry: Incentives Lead to Better Technology and Smarter Approaches

Speaks at rollout of UPS hybrid electric vehicles
Thursday, May 06, 2010  •  Stafford, Texas  •  Press Release

Gov. Rick Perry today reiterated the importance of providing incentives, rather than onerous mandates, to encourage innovation in business and technology. The governor spoke at the rollout of UPS' expanded fleet of hybrid electric vehicles (HEV), the first to be introduced in Texas through Senate Bill 1759 of the 81st Legislative Session, which provides grants from the Texas Emissions Reduction Plan Fund for large fleet owners to convert old diesel vehicles to alternative fuel vehicles.

"When we apply incentives instead of crushing mandates, we appeal to the innovators and visionaries and end up with better technology and smarter approaches," Gov. Perry said. "UPS is clearly stepping out ahead of the pack with this initiative, and setting an example for their peers in the marketplace that will make the competition even more productive."

Texas has a record of working proactively to protect natural resources and improve environmental quality, and air in Texas is cleaner today than it was 10 years ago. We have reduced nitrogen oxide emissions by 46 percent and cut ozone levels by 22 percent, all without government mandates or extravagant fines. Rather than making traditional energy sources more expensive, Texas leaders continue to support making alternative energy technologies less expensive, thereby encouraging widespread commercial use and removing barriers to innovation and competition.

UPS plans to deploy 200 next-generation hybrid electric delivery trucks this year, including 25 in Houston and 30 in Austin, to add to its existing fleet of 50 HEVs already operating in Atlanta, Dallas, Houston and Phoenix. These new trucks are part of more than 2,000 alternative-fuel vehicles already in use by UPS that are powered by compressed natural gas, liquefied natural gas, propane and electricity.

HEV technology can yield a 35 percent increase in fuel economy and a dramatic decrease in vehicle emissions over traditional UPS delivery vehicles. The 200 trucks UPS plans to deploy are expected to save 176,000 gallons of fuel annually and reduce CO2 emissions by more than 1,700 metric tons each year.

UPS was the first package delivery company to introduce an HEV into daily operations with a research program launched in early 1998. In 2001, the company deployed the industry's first hybrid electric package car into regular service in Huntsville, Ala.

For more information about UPS' HEV fleet, please visit

For more information about the Texas Emissions Reduction Plan, please visit

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Danny Smith
Public Affairs, UPS
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