There's hope for Hummer drivers who want to "go green."

Raser Technologies, a Provo, Utah-based environmental energy technology company, demonstrated its new Electric Hummer H3 Thursday at the California State Capitol in Sacramento, Calif.

Gov. Arnold Schwarzenegger was on hand to view the new plug-in and take a test drive. He said the SUV represents the changes necessary to get the auto industry out of its slump.

"The Hummer is not what is wrong with the vehicle; it is the engine and technology," he said. "What we have to change is not the cars and the size of the cars, but the technology."

The plug-in H3, which is a mid-sized SUV similar in size to a Jeep Commander, is designed to achieve 100 miles per gallon for a typical daily drive of 60 miles. With a range of up to 400 miles, it drives its first 40 miles exclusively on batteries before turning on its combustion engine.

The H3 uses an extended range electric vehicle (E-REV) powertrain developed by Raser Technologies, which is focusing on extended-range plug-in-hybrid vehicle solutions with its transportation and industrial division.

Kraig Higginson, chairman of Raser, said California was a natural location for Thursday's demonstration because of its leadership in emissions and fuel economy standards, helping lead to changes in the national CAFE standard.

"We believe Raser's E-REV powertrain will enable trucks and SUVs to meet or exceed this new standard while dramatically reducing emissions in larger vehicles," Higginson said.

According to a 2008 report by the U.S. Department of Transportation, trucks and SUVs account for nearly half the vehicles on the road and a majority of the emissions and fuel consumption.

Schwarzenegger, a well-known fan of the Hummer, said he fell in love with the electric version after seeing it in April during a trip to Detroit.

"I loved it right away because it was a Hummer," he said. "The Hummers are known to use a lot of fuel and get very low mileage, so they always get a bad rap off being not environmentally sound."