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May 20, 2011
Bills Aim
to Galvanize Advanced Vehicle Technology Development and Deployment
The Clark Hill Automotive and
Government and Public Affairs Practice Groups want to make you
aware of two pieces of federal legislation that would have a
significant impact on the emerging vehicle
technologies industry if enacted into law.
Yesterday, Clark Hill attended a full
committee hearing of the Senate Energy and Natural Resources
Committee which focused on two pieces of legislation: S. 734, the Advanced Vehicle Technology Act
of 2011 [Sponsored by Senator Debbie Stabenow
(D-MI)] and S. 948, the Promoting
Electric Vehicles Act of 2011 [Sponsored by Senators Jeff
Merkley (D-OR) and Lamar Alexander (R-TN)].
The Committee supported similar
versions of both of these bills during the 111th Congress, but the
Senate failed to consider the bills prior to final
adjournment last December.
S. 734 would:
- Bolster federal vehicle technology
research and development across conventional and alternative
technologies;
- Ensure that the Department of Energy
(DOE) maintains a portfolio of near-, medium- and long-term
technology development activities;
- Establish a program at DOE to advance
the development and adoption of electric drive truck
technologies for medium and heavy duty commercial and transit
vehicles; and
- Defer to appropriators on amounts needed
to match available funding with the goals outlined in the bill.
S. 948 would:
- Authorize $100 million over 5 years
for the establishment of a national program to assist state,
local and tribal governments deploy plug-in electric vehicles
and infrastructure through technical assistance, national
assessments of deployment, data synthesis and dissemination,
workforce training, and developing and sharing best practices;
- Authorize $150 million to universities
and other qualified training institutions for workforce
development to support the emerging electric drive car and
infrastructure industry;
- Authorize $2 billion over 3 years for
the Targeted Plug-In Electric Drive Vehicle Deployment
Communities Program, which would provide maximum awards of $250
million (federal cost share in project cannot exceed 20%) to
local communities to facilitate the rapid deployment of 400,000
plug-in vehicles;
- Authorize $300 million for a Plug-in
Electric Drive Private Fleet Upgrade Grant Program;
- Add new federal Section 1703 loan
guarantee authorities for 'Plug-in electric drive vehicle
fleets;'
- Establish an R&D program for
advanced batteries, plug-in vehicle components, plug-in
infrastructure, etc.;
- Authorize $15 million over 5 years for
a grant program to demonstrate the secondary uses of vehicle
batteries;
- Authorize $200 million over 10 years
for a high-risk, high-reward R&D plug-in vehicle and
infrastructure grant program administered by the Advanced
Research Projects Agency;
- Establish the Advanced Batteries for
Tomorrow Prize to award a $10 million cash prize to develop and
commercialize a 500-mile battery.
Despite some concerns about cost and
the federal government's role in the market, the bills enjoy broad
support in the Committee, and we expect them to be reported
to the full Senate during the 112th Congress. Companion
legislation is also likely to pass out of the appropriate House
committees. The real barrier will be whether House Republicans
and Senate Democrats will prioritize these bills by finding floor
time for debate that could get the bills to a House-Senate conference
and the President's desk.
We will continue to monitor
developments relating to these bills and other legislative efforts to
shape automotive policy. Please do not hesitate to contact us
should you have any questions regarding these or other federal
initiatives.
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