(Photo by Tim Kelley on Flickr)
The $787 billion economic stimulus package that has been the centerpiece of President Barack Obama’s recovery plan has a bit of money reserved for green transportation. President Obama toured an auto production plant in Pomona, California on Thursday as he announced a $2.4 billion program to promote plug-in hybrid production in the United States. Since the PHEV program is part of the massive economic stimulus package, President Obama couched the funding as a jobs program as well as a step forward for America’s competitiveness in the global economy.
Obama claims that PHEV development in the United States would create at least 10,000 jobs. The president wants at least one million eco-friendly cars on American roads by 2015, a task that may require additional jobs to be created. The overarching theme of Thursday’s press conference, however, was America’s need to stay competitive with foreign countries in green vehicle and component production.
According to President Obama, Germany is the leader in producing solar power and Spain is creating 30% of its energy using wind power. The exclamation point on Obama’s PHEV announcement was that Japan is creating the advanced battery technology needed to move American-made hybrids. In addition to the short-term goal of creating new jobs in the floundering American economy, President Obama seems to be goosing complacent Americans into a little competition with their foreign rivals.
The PHEV initiative will be managed by the Department of Energy and broken into three programs. The federal government will provide $1.5 billion to battery makers and utilities that can produce advanced batteries for American hybrids. An additional $500 million is slated for manufacturers creating recycled paneling, efficient lighting and other green parts for PHEVs. The final leg of the $2.4 billion program is $400 million to test PHEVs, assess infrastructure options and fund public charging projects in major cities.
President Obama’s PHEV initiative answers the criticism that the economic stimulus package is all flash and no substance. While $2.4 billion is a drop in the bucket, the federal government’s commitment to production, testing and infrastructure is necessary to get American companies behind plug-in vehicles. An additional incentive for consumers is a proposed $7,500 tax credit for PHEV buyers akin to similar tax credits for hybrids and alternative-fuel vehicles in the past. While the funding is a good start, President Obama and Congress need to show the political will to follow this plan beyond the first step.
