Senate Energy Committee approves $3.6B for electric vehicles

The Senate Energy Committee has approved a $3.6 billion bill to boost electric vehicles.

The bill approved on a 19-4 vote this morning is a scaled-back version of an $11 billion bill first proposed in May.

But its fate is still in doubt as Senate Democrats are debating whether to include new electri vehicle funding as part of an energy bill they hope to approve before Congress goes home next month.

Separately, the committee approved a bill introduced by Sen. Debbie Stabenow, D-Lansing, that would extend the $25 billion retooling loan program for advanced technology vehicles. But the Senate hasn't yet said how much more it might add to the program.

The Stabenow measure expands the eligibility of vehicle technologies that would qualify for the program, including natural gas vehicles. It would also urge the Energy Department to carry out research programs for advanced technologies for vehicles, and to study whether the federal government could convert thousands of government vehicles to natural gas power.

The Stabenow measure would also make medium- and heavy-duty trucks eligible for the program.

The bill approved by the Energy Committee, which was authored by U.S. Sen. Byron Dorgan, D-N.D., seeks to promote the deployment of plug-in electric vehicles through a series of "deployment communities."

The Promoting Electric Vehicle Act of 2010, would extend and expand national incentives to accelerate the introduction of electric vehicles.

"Passing this legislation will strengthen our national security and improve the air we breathe, while relying on our abundant and diverse electricity supply to fuel our cars," Dorgan said. "We are now one step closer to dramatically reducing our dangerous dependence on foreign oil that hurts our economy, helps our enemies and puts our security at risk. Domestic petroleum will always be an important part of our country's energy strategy, but we also must invest in alternative energy approaches including electric cars."

The bill would create "deployment communities" across the country, where targeted incentive programs for electric vehicles and charging infrastructure systems would help demonstrate rapid market penetration and determine what best practices would be helpful for nationwide deployment of electric vehicles.

Dorgan wants to electrify half its cars and trucks by 2030, which if achieved, would cut U.S. demand for oil by about one-third.

Advocates of electric vehicles praised the vote.

"Republicans and Democrats have taken another critical step toward finally ending our nation's dangerous dependence on oil," said Robbie Diamond, president of the Electrification Coalition.

Congress has already set aside billions of dollars to boost electric vehicles, including $2.4 billion in grants for electric vehicle and battery research. It also approved a $7,500 tax credit for purchasing electric vehicles.

Source: Detroit News