Several dozen Seattle taxi owners and drivers turned out Thursday morning to testify on opposite sides of a proposal before the City Council that could boost the price and the number of cabs in the city – and require cabbies drive fuel-efficient vehicles.

Mayor Greg Nickels has asked for authority to grant up to 1,000 taxi cab licenses. The current cap is 667. He also wants to bump cab rates, incorporating a fuel surcharge into the base rate and increasing the flat rate to the airport from downtown hotels from $28 to $30.

"We haven't issued any (new) licenses since 1990," said Fred Podesta, of Nickels' executive administration. "We do believe we need more taxis on the street."

Nickels' proposal would grant licenses only to people who actually drive the vehicles full time for five years. Licenses, which cost $300 a year, have been privately leased to others for more than $100,000, officials said. (The legislation would double the cost of an annual license.)

The plan aims to end such sub-letting. License holders will not be allowed to transfer their llicenses, said Denise Movius, of Nickels' consumer affairs office. "These provisions are intended to prevent speculators from obtaining taxi licenses," she said, adding that the goal is to protect drivers from exploitation.

The measures would grant Nickels' office increased authority over what sort of taxis are allowed in the city. The plan, an official with his office said, would be to require that any new cabs get at least 30 miles per gallon, except handicapped-accessible vans and vehicles using alternative fuels. "A green taxi fleet makes sense to us," Podesta said.

Still, that standard would not be set in law. Rather, it would be up to city officials to set the rules.

Cab drivers largely backed the measures, saying owners are squeezing too much from them in car lease, maintenance and other costs – while fares remain constant.

"We have a chance now to wrest some of the some of the control from the large companies," one driver told the council's Finance & Budget committee.

Cab owners complained that hybrids and other fuel-efficient cars are too expensive to purchase and maintain. The free market – namely, escalating gas prices – will push drivers to more efficient cars, some said. They also argued Seattle does not need for more licensed drivers.

Chris Van Dyk, a lobbyist for the cab owners, said the city would be overstepping its authority. Washington case law allows only that the city can impose rules to "ensure safety and reliable service," Van Dyk said.

Seattle officials responded that they'd run the measure by city attorneys and feel it's legally sound.

Council members at the meeting outlined some questions they still had but did not indicate whether they expect to support it. They did say they wanted to know more about how it might impact consumers.

"We want to have as many alternative ways of getting around town as possible and this is, of course, one of the very good ways of getting around town," said Councilwoman Jean Godden, who chairs the committee. . "We'd like to hear what customers are feeling about it."

The proposal is scheduled for a June 5 public hearing. The committee won't likely vote on it until July 7, Godden said.