I’ve been at two auto events recently where the new Dodge Durango hybrid was made available for journalists to drive and evaluate. The first was Mudfest earlier this month, where the Durango hybrid topped the Best Family SUV category, where it competed with non-hybrid vehicles.

The second event was just a few days ago, when Chrysler/Dodge brought a handful of new models to Portland, Oregon, for the press to peruse. The 2009 Dodge Durango hybrid had just that day earned its official EPA fuel economy rating of 20 mpg city, 22 highway, and the company learned that the SUV was eligible for a $2,200 tax credit. The new rating marks an improvement in the hybrid Durango’s mileage over its conventional, petrol-burning Durango sibling by 50% in the city and 40% overall.

The phrase we keep hearing from SUV manufacturers is “no compromises.” Apparently, Joe Buyer is afraid that his new hybrid SUV will be wussy, and the PR folks are working to counter that. The Dodge Durango hybrid still has a V8 engine, though four cylinders will cut out when the engine isn’t under load. It still has 4-wheel drive and eight seats, and it can still tow 6,000 pounds. (The conventional Durango pulls 8,800 pounds; it’s up to you to decide if that’s a compromise.) But it also has stop-start technology and the two-mode hybrid system. The Dodge Durango hybrid and its cousin, the Chrysler Aspen hybrid, will be at dealerships by the end of 2008 with a price tag starting at $45,340.

The curious thing was that despite the tax credit and the clamor for gas-sipping, emissions-lite vehicles, Chrysler still isn’t wholeheartedly embracing the hybrid platform. While the GM rep I spoke with a couple weeks ago said he didn’t see why all of GM’s large vehicles couldn’t be based on a hybrid system like the Yukon has, the Chrysler rep at the more recent event said his company was going to wait and see. There are plenty of reasons for auto companies to take baby steps these days, but hybrid technology shouldn’t be one of the things they hold back on. Especially if there really are “no compromises.”

Here’s the straight dope from the bill, as translated into English from Congress-ese by yours truly.

A New, Qualified, Plug-In Electric Drive Motor Vehicle, according to the recently passed bailout bill, means a vehicle that:

1. Has a battery with at least a 4 kwh capacity (your tax credit will go up with the size of your battery)
2. Uses an off-board source of energy to recharge the battery (an outlet or generator would do)
3. Is certified under the Clean Air Act and meets California’s low emissions vehicle standard
4. Will be put on the road for the first time by the taxpayer
5. Was bought for use by the taxpayer, not for resale
6. Was made by a manufacturer — home conversions do not get this credit

So your 6-year-old daughter’s battery-powered Barbie car doesn’t get the credit, nor does my friend Tim’s Porsche 914 conversion. You have to buy the car brand-new and use it yourself, no dealers or used cars allowed. And any plug-in vehicle should meet the emissions standards with flying colors.

If you have further questions, read the text of the bill here (look for Section 205 on page 186 of the PDF).

Buyers of plug-in hybrid vehicles will receive a $2500 tax credit, plus $417 per kilowatt hour for batteries greater than 4 kwh. This makes the Chevy Volt $7500 cheaper, as GM’s Volt blog was happy to point out. The credit will apply fully to the first 250,000 PHEVs sold, then will be phased out over the next year’s worth of sales after than landmark number is reached. (See Section 205 on page 186 of the bill.)

The bill also extends the 30% clean-burning fuel property tax credit to electricity, and moves the deadline for taking the credit out a year to December 2010. (See Section 207 on page 197 of the bill.)

Since that information, while useful, was dry as sand, here’s  video of a souped up Smart ForTwo beating the pants off a Ferrari in the quarter-mile (38 seconds):