Obama wants more funding to boost plug-in vehicle sales
Effort to get million vehicles on road includes more funds for green programs
DAVID SHEPARDSON
Detroit News Washington Bureau
Washington — President Barack Obama renewed his call to get 1 million plug-in vehicles on the nation's roads by 2015, and he wants more government funding to make it a reality.
"With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have 1 million electric vehicles on the road by 2015," Obama said in his State of the Union Address Tuesday night. "We are the nation that put cars in driveways and computers in offices; the nation of Edison and the Wright brothers; of Google and Facebook."
He said the administration would pay for more funding for electric vehicles by asking Congress to eliminate the billions in subsidies for oil companies.
"Instead of subsidizing yesterday's energy, let's invest in tomorrow's," Obama said.
In advance of his State of the Union address, the White House said Tuesday that the president planned to support about $8 billion in annual government aid — an increase of more than $2 billion over current levels — for green energy programs such as those to develop advanced-generation vehicles and batteries.
"We're not just handing out money. We're issuing a challenge," Obama said.
As an example, he singled out the California Institute of Technology, where "they're developing a way to turn sunlight and water into fuel for our cars."
In the next few weeks, the administration plans to unveil still more efforts to boost electric and plug-in vehicles, such as the Nissan Leaf and Chevrolet Volt.
"This (effort) will focus on electric, plug-in cars and reaching that goal," said White House National Economic Council Director Gene Sperling.
Sperling said the president's budget proposal, to be released in mid-February, will target funds to select communities, enabling them to ramp up infrastructure, such as charging stations, to attract and support the rapid deployment of electric vehicles.
Vice President Joe Biden is traveling to Indiana today to visit Ener1 Inc., a lithium-ion battery manufacturer, to discuss how the administration intends to boost electric vehicle sales.
He will outline the president's three-part plan — "supporting electric vehicle manufacturing and adoption in the U.S. through generous new consumer rebates, investments in R&D, and a competitive program to encourage communities to invest in electric vehicle infrastructure."
Biden is expected to propose converting the $7,500 tax credit given to buyers of electric vehicles to a $7,500 rebate to be deducted from the purchase price at the time of purchase. The current rebate doesn't apply to all buyers, and some must wait months or longer to claim the rebate on their taxes and receive the money from the IRS.
Obama also noted that technology has sharply reduced the number of workers many industries need. Michigan has lost half of its factory jobs since 2000.
"Steel mills that once needed 1,000 workers can now do the same work with 100," Obama said. "I've seen it in the shuttered windows of once booming factories, and the vacant storefronts of once busy Main Streets. I've heard it in the frustrations of Americans who've seen their paychecks dwindle or their jobs disappear — proud men and women who feel like the rules have been changed in the middle of the game."
Obama wants to boost the amount of renewable energy that powers the nation's grid from 40 percent to 80 percent, and called for boosting high speed rail.
"Within 25 years, our goal is to give 80 percent of Americans access to high-speed rail, which could allow you go places in half the time it takes to travel by car. For some trips, it will be faster than flying — without the pat-down," Obama said.
