|
Federal Government Turns Its Attention
to Michigan
Transportation
The United States Senate has reached a
deal that will allow a vote this evening on a $2 billion extension of
the popular "Cash for Clunkers" program from the
President's economic stimulus legislation, which took effect on July
24. Cash for Clunkers pays people up to $4,500 for trading an
older-model vehicle with low fuel efficiency for new vehicles that
get better miles per gallon. $1 billion was provided for the
program, which was expected to last through the end of
September. Instead, consumers took full advantage of the
program -- using all of the federal funding within the first 10
days.
The House of Representatives approved a $2 billion extension of the
program last week before it adjourned for the annual August
recess. There had been some speculation that an extension might
be held up in the Senate, but after two key Senators, Dianne
Feinstein (D-CA) and Susan Collins (R-ME), declared their support for
the extension after expressing initial opposition, the outcome was no
longer in doubt.
Majority Leader Harry Reid (D-NV) announced yesterday that the vote
would follow another high-profile vote today on the confirmation of
the nomination of Sonia Sotomayor to serve on the U.S. Supreme
Court. There will be limited debate on and amendments to the
Cash for Clunkers extension. The extension is expected to last
through Labor Day.
The vote is good news for the automotive industry and comes on the
heels of a major announcement by Vice President Joe Biden in Detroit
yesterday in which at least $1.1 billion in advanced battery
technology grants were awarded to Michigan-based companies and
universities to spur the development of advanced battery
technology and electric and hybrid vehicle manufacturing in the
United States.
Clark Hill PLC played a significant role in developing and conducting
federal outreach for Michigan's efforts, part of a highly aggressive
strategy developed by the Michigan Economic Development Corporation
to capture a significant share of $2.4 billion in recovery funds for
vehicle electrification. The result was stunning: a single-day
federal investment of more than $1 billion for advanced battery
technology for hybrid and electric-drive vehicles, through 15 separate
grant awards that will help build a new green industry and diversify
Michigan's economy.
Industry officials expect that the $2.4 billion in grants, coupled
with other investments from the award winners, will directly result
in the creation of tens of thousands of manufacturing jobs in the
U.S. battery and auto industries.
According to the Department of Energy's press release:
"Reflecting the state's leadership in clean energy
manufacturing, Michigan companies and institutions are receiving the
largest share of grant funding of any state. Two companies, A123 and
Johnson Controls, will receive a total of approximately $550 million
to establish a manufacturing base in the state for advanced
batteries, and two others, Compact Power and Dow Kokam, will receive
a total of over $300 million for manufacturing battery cells and
materials. Large automakers based in Michigan, including GM,
Chrysler, and Ford, will receive a total of more than $400 million to
manufacture thousands of advanced hybrid and electric vehicles as
well as batteries and electric drive components. And three
educational institutions in Michigan-the University of Michigan,
Wayne State University in Detroit, and Michigan Technological
University in Houghton, in the Upper Peninsula-will receive a total
of more than $10 million for education and workforce training
programs to train researchers, technicians, and service providers,
and to conduct consumer research to accelerate the transition towards
advanced vehicles and batteries."
|
