Economic Stimulus to Boost Electric Car Industry

Finally. Federal support for the investment, manufacturing and sales of cleaner automotive options is on the horizon. It’s all part of President Obama’s American Recovery and Reinvestment Plan (H.R.1) that was recently passed by Congress and is expected to be signed into law soon. Translation: hybrids, plug-in hybrids, fuel cell vehicles, electric vehicles and battery technologies are going to receive a big boost. Here’s the quick and dirty on what H.R.1 contains, according to a recent press release from the Electric Drive Transportation Association (EDTA):

• $2 billion available for immediate investment in the advanced technology battery and component manufacturing industry.
• Plug-in electric drive vehicle credit will be increased to 200,000 vehicles per manufacturer, along with additional consumer incentives to purchase ready-to-drive plug-in electric vehicles.
• $400 million will be earmarked for the creation of electric vehicles and charging station infrastructure, with $300 million allocated for regional electric vehicle and alt fuel vehicle deployment, plus another $300 million for high-efficiency federal fleet vehicle purchases.
• $4.5 billion for updating the electric grid for renewable energy—development and deployment.

But it’s not all about economic stimulus—although we all know how much it’s needed right now. There is also energy security at stake. According to Pacific Northwest National Laboratory, almost half of the current oil imports could be forgone if 73 percent of our country’s passenger vehicles were electric. Now that’s some serious electron-power—especially since it would negate the need for 6.2 million barrels of oil per day.

We say, “the sooner the better” that this bill gets the President’s signature. For although there are over 1.3 million hybrid vehicles on the roads, this country still has a long way to go to clean up its act and wise investment in electric drivetrain technology is paramount to a solid core of urban transportation infrastructure. It’s about time we get started in a serious way.

photo © Scott Gable - Electric charging station in Portland, OR