Jun29
House bill passes, may give loans up to $50 billion
Energy Secretary Steven Chu could get another $25 billion to dole out to automakers and suppliers.
WASHINGTON -- Federal loans to automakers and suppliers for development of electric vehicles and other advanced-technology cars would be doubled to $50 billion under a bill passed by the House on Friday night. The climate-change legislation -- the centerpiece of which is a cap-and-trade system for power plants, oil refineries and factories -- now goes to the Senate, where its fate is uncertain. The Senate rejected a similar bill last year. The Obama administration lobbied hard for the 1,200-page bill, which passed 219-212. It is the first legislation to address global warming by seeking to curb heat-trapping gases. A portion of the bill aims to develop vehicles that would reduce dependence on foreign oil and curb pollutants. It also tries to spur development of an infrastructure of charging stations for electric vehicles. With a current budget of $25 billion for development of advanced-technology vehicles, Energy Secretary Steven Chu last week awarded $5.9 billion in loans to Ford Motor Co. The company originally requested $11 billion to retool plants to produce fuel-efficient models, including electric vehicles. The U.S. Department of Energy also awarded $1.6 billion to Nissan Motor Co. to make more than 100,000 electric cars a year in Tennessee and $465 million to Tesla Motors Inc. to develop electric vehicles in California. It wasn’t clear how much the companies originally had requested. The Energy Department has said it plans to award much of the remaining $17 billion in the next few months to automakers and parts suppliers. The legislation that passed the House on Friday also would require each electric utility to consider creating charging stations on the street, in parking garages and lots, in homes, at gasoline stations and at highway rest stops. Under the bill, state regulators would have to develop standards for integrating electric vehicles into an electrical distribution system. The Energy Department also would have to try to integrate electric vehicles into the electrical grid in a number of regions, the bill says. General Motors has said it plans to start selling its Chevrolet Volt plug-in hybrid car late next year for about $40,000. At those prices, it’s unclear what kind of market there will be for advanced-technology vehicles, especially if gasoline prices continue to be much lower than they were a year ago. President Barack Obama has set a goal of having 1 million electric and plug-in hybrid vehicles on U.S. roads by 2015. The U.S. currently has 250 million vehicles on the road, according to Edmunds.com.
Source; [ Automotive News }
This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com