WASHINGTON, June 23 (Xinhua) -- As the latest proposal to curb oil consumption and air pollution, U.S. Republican presidential candidate John McCain called on Monday for 300 million U.S. dollars to encourage innovation on new car battery to save fuel and reduce emission.

    "The prize would amount to 1 dollar for every man, woman and child in the U.S. -- a small price to pay for helping to break the back of our oil dependency," the Arizona senator told a rally at California's Fresno State University.

Presumptive Republican presidential candidate US Senator John McCain listens to a question during a news conference after delivering a speech to the Economic Club of Canada in Ottawa June 20, 2008. (Xinhua/Reuters Photo) Photo Gallery>>>

    The new car battery, as McCain said, should have the "size, capacity, cost and power to leapfrog the commercially available plug-in hybrids or electric cars."

    He opposed the U.S. government's current efforts to develop corn-based ethanol as an alternative to gasoline-powered engines, saying it "has thrown around enough money subsidizing special interests and excusing failure."

    His views also stand against his Democratic presidential rival, Barack Obama, who supports ethanol subsidies.

    "My administration will issue a Clean Car Challenge to the automakers of America, in the form of a single and substantial tax credit based on the reduction of carbon emissions," McCain said.

    He detailed his plan by saying "for every automaker who can sell a zero-emissions car, we will commit a 5,000 dollar tax credit for each and every customer who buys that car."

    He also noted the legacy of U.S. inventiveness, left from Thomas Edison, the Wright brothers, the Apollo moon landings, the silicon chip and the Internet, among others.

    "For all the troubles and dangers our energy vulnerability presents, we know that we can overcome them, because we have overcome far worse problems and met far greater goals," he added.

    Obama was also expected to address the energy issues later on Monday when talking with the working women in New Mexico.

    As the oil price hike drags the U.S. economy that is haunted by Iraq war and subprime crisis into the worse, energy becomes one of the top concerns to American voters and focuses of debates in the battles for the White House.