Washington – Senator Evan Bayh today wrote the Secretary of Energy Steven Chu asking him to explain why the Department of Energy (DOE) has not released a single dollar of loan or grant money to bolster America’s advanced technology vehicle program—almost four months after Congress authorized the program.
Concerned that the Chinese government is aggressively moving to become the world’s leader in hybrid and all-electric vehicle production, Bayh sent a letter today to Secretary Chu asking for a status report on the department’s progress in awarding loans and grants to domestic manufacturers of advanced vehicles and batteries.
“If we fail to provide funding promptly, we will not only fail in an area of immediate and significant job creation, but we will end up substituting dependency on a different form of imported energy—batteries—for our current dependency on foreign oil,” Bayh wrote.
Congress has appropriated more than $27 billion for the DOE to implement the Advanced Technology Vehicles Manufacturing Incentive Program and other advanced battery initiatives. These programs are the nation’s first substantial federal commitment to electric drive transportation. It will create and save jobs, stimulate the economy, and decrease the country’s dependence on foreign oil, while positioning the U.S. as a global manufacturing leader in advanced technology vehicles.
“While substantial funding resources have been made available by Congress to develop advanced technology vehicles and batteries here in the U.S., DOE has not awarded a single dollar to domestic manufacturers developing these technologies,” Bayh wrote. “It appears that DOE’s plan for a timely distribution of tax dollars is not keeping pace with rapidly evolving circumstances around the world.”
The U.S. invented the plug-in hybrid electric vehicle (PHEV) and the lithium-ion battery, but Asia now manufacturers the vast majority of lithium-ion batteries and a Chinese automaker rolled out the first mass-produced PHEV. Recent media reports indicate that China has adopted an aggressive plan to transform the country into a leading producer of hybrid and all-electric vehicles within three years. Countries in Asia have already dedicated vast resources to build and support these industries.
“Our automotive industry, already struggling to remain relevant in the midst of new global realities, now faces even stiffer foreign competition,” Bayh wrote. “The country or region that becomes the leading producer of batteries and electric drive vehicles may ultimately control green vehicle production worldwide.”
The Advanced Technology Vehicles Manufacturing Incentive Program, part of the Energy Independence and Security Act of 2007 (EISA), provides direct loans and grants to domestic manufacturers for the costs of reequipping, expanding and establishing manufacturing facilities in the United States to produce advanced technology vehicles or components.
Bayh is a member of the Senate Energy and Natural Resources Committee. Electrification of the nation’s transportation sector was a key component of the DRIVE Act, bipartisan legislation which Bayh introduced in 2007. Key electric drive provisions were signed into law by President Bush as part of EISA. The Bayh provisions signed into law included:
-Incentives for domestic manufacturers to refurbish their facilities to produce advanced technology vehicles, such as PHEVs and advanced diesel vehicles;
-A requirement for federal fleets to reduce their petroleum use by 20 percent by 2015;
-Provisions that allow federal agencies to purchase electric-drive vehicles; and,
-The creation of a Department of Energy research and development program to improve vehicle fuel efficiency through the use of lightweight materials like high-strength steel alloys and advanced carbon composites.
Source: Office of Senator Evan Bayh
