Michigan, home of the Big-3 automakers, is the heart of the U.S. automobile industry. The auto industry is responsible for 6.6 million jobs nationwide or about five percent of private sector jobs. For every worker directly employed by an automaker, more than six spin-off jobs are created. Senator Levin has played an active role in promoting the U.S. auto industry through his work in the Senate Auto Caucus and the Auto Parts Task Force.
The sections below detail some of Senator Levin's efforts.
Senator Levin co-chairs the bipartisan Senate Auto Caucus with Senator George Voinovich, R-Ohio. The Senate Auto Caucus provides a forum for senators to exchange ideas and influence policy on issues affecting the U.S. automotive industry. The Senate Auto Caucus sponsors educational briefings for senators and staff on issues such as trade, transportation and advancements in technology.
Initiatives of the Senate Auto Caucus have included letters calling on the Administration to press Japan to end manipulation of the yen, and introducing a Senate resolution calling on Korea to open its market to U.S. vehicle exports. The Senate Auto Caucus coordinates with the House Auto Caucus on trade, regulatory and safety issues of interest to the industry.
As co-chairman of the Senate Auto Caucus and Senate Auto Parts Task Force, Senator Levin pressed the Administration to take strong measures to persuade China, Japan and other trading partners to end the practice of undervaluing their currencies, which makes their exports less expensive and puts U.S. workers and exports at a disadvantage.
He urged the Administration to press China to adhere to the market opening commitments it made when joining the World Trade Organization (WTO), particularly regarding automotive manufacturers’ ability to fully participate in the Chinese automotive market and to reduce the rampant intellectual property theft that occurs in China. He also joined the Michigan congressional delegation in urging the Administration to focus WTO negotiations on removing non-tariff barriers in the automobile sector.
Senator Levin and Senator Arlen Specter, R-Penn., serve as co-chairs of the bipartisan Senate Auto Parts Task Force. The Senate Auto Parts Task Force has advised the Bush Administration on auto parts trade policy, particularly with Japan and Korea.
The Auto Parts Task Force sponsors briefings for senators and staff on issues of concern to the U.S. auto parts industry. The task force brings together industry representatives, administration trade negotiators and members of Congress to discuss trade-negotiating strategies. It also coordinates and sends letters to the administration weighing in on U.S. trade policy.
PRESERVING AUTO INDUSTRY JOBS IN MICHIGAN
Corporate Average Fuel Economy (CAFE)
In 2007, Senator Levin led the effort in the Senate to develop a structure and appropriate mechanisms for new fuel economy standards for vehicles that will lower our dependence on foreign oil and decrease greenhouse gas emissions without harming U.S. manufacturers and auto workers. The Energy Independence and Security Act of 2007 contained an ambitious increase in fuel economy standards for cars and light trucks, requiring auto manufacturers to achieve 35 miles per gallon by 2020.
Senator Levin worked with a coalition of senators and obtained key reforms to the Corporate Average Fuel Economy (CAFE) system to set fuel economy standards based on vehicle attributes and to eliminate the requirement for a fleet-wide average for each manufacturer. This critical reform will end many years of discriminatory impacts on domestic manufacturers. Senator Levin was also able to obtain critical concessions on some of the most important issues, including requiring separate car and truck standards, preserving domestic jobs with an anti-backsliding provision, and extending existing fuel credits until 2014 to provide flexibility to our domestic manufacturers to make it more practically possible for them to reach the ambitious level of 35 miles per gallon by 2020.
FORMING A PARTNERSHIP BETWEEN THE DEFENSE DEPARTMENT AND THE AUTO INDUSTRIES
National Automotive Center & Automotive Research Center
Senator Levin has been instrumental in working with the Army's Tank Automotive Research and Development Command (TARDEC), the Army's National Automotive Center (NAC) and the Automotive Research Center (ARC) to encourage partnerships between DOD and the automotive industry. The ARC enables the Army to work with our university system and industry to help bring about the technologies on which our future Army and civilian vehicles will depend.
Senator Levin helped conceive of the idea of the NAC as an innovative way for the Army and government to work with the automotive industry on collaborative research and development for mutually interesting vehicle technology.
Advanced Vehicle Technology Development
Senator Levin wrote legislation in the National Defense Authorization Act for fiscal year 2003 for a cost-shared vehicle fuel cell program at DOD and has secured funding for this program in all subsequent years. The program identifies and supports technological advances necessary to develop fuel cell technology for use in DOD vehicles. The program also includes development of vehicle propulsion technology and fuel cell auxiliary power units as well as pilot demonstration of such technologies. The program also focuses on technology to address hydrogen storage issues and to develop a hydrogen fuel infrastructure. The program is to be carried out in cooperation with industry and other federal agencies.
In 2005, 2006 and 2007, Senator Levin developed three companion programs focused on hydrogen development and use and biofuels. A new hydrogen logistics initiative was established in fiscal year 2006 to develop a comprehensive and integrated strategy for the appropriate use and acquisition of hydrogen to meet Department of Defense requirements in the future. In fiscal year 2007, a new merit-based program was established for research, development, and demonstration of solid hydrogen storage technologies. In fiscal year 2008, a new merit-based program was established for research, development and demonstration of advanced biofuels technology for use by the military.
In fiscal year 2008, Senator Levin also established a new merit-based program at TARDEC focused on hybrid engine development to be carried out in cooperation with industry and academia.
Specific Funding Levels for Automotive Research and Development Projects
Senator Levin worked to secure funding for the following automotive research and development projects in fiscal year 2008:
- $8.0 million to continue the Vehicle Fuel Cell and Hydrogen Logistics Program. This Defense Logistics Agency-managed competitive program continues the development of fuel cell technologies for use in DoD vehicles and the development of the hydrogen infrastructure to support use of those vehicles. Additionally, a critical component of this program is the development of a comprehensive and integrated strategy for the appropriate use of hydrogen to meet DoD requirements in the future. The U.S. Army's Detroit Arsenal participates in this merit-based program.
- $8.0 million to initiate a coordinated hybrid engine development program at TARDEC. This merit-based program will include both basic and applied research in engine technology, power electronics, control technology and other areas. Research areas will include theoretical, computational design and analysis, and experimental verification components.
- $5.0 million to continue the Defense Logistics Agency's hydrogen storage program. This funding will continue a merit-based research initiative focused on solid hydrogen storage systems that would weigh less and take up less volume, allowing vehicles to safely carry more hydrogen onboard, increasing driving range, and reducing refueling frequency and cost. Issues being addressed by the program include development of materials to maximize storage potential, improving the ability to quickly charge and recharge the solid storage systems with hydrogen, devising hydrogen release systems that can flow hydrogen from the solid storage system into fuel cells in a controlled, repeatable manner, and making the entire storage system cost-effective relative to other storage systems or more traditional engine technologies.
- $4.8 million to continue the development of an advanced thermal management system to increase the engine efficiency for Army vehicles. Engineered Machined Products in Escanaba has partnered with TARDEC in the development of these systems.
- $4.4 million to continue development of an advanced mobile microgrid system for the Army. This system would significantly reduce the logistics footprint of deployed forces by supplying power from a myriad of power sources including conventional generation, renewable generation, vehicles with exportable power sources, and encampment waste. The NextEnergy Center in Detroit has been developing this concept in cooperation with other Michigan entities, including the University of Michigan 's Transportation Energy Center and TARDEC.
- $3.2 million to continue the research and development of an advanced vehicle propulsion system. Funding for the next generation non-tactical vehicle propulsion system will allow the Army, Navy, and Marine Corps to continue research, development, and demonstration of fuel cell technology in commercially-based vehicles for military requirements. General Motors is currently working with the DoD on this program.
- $2.4 million for the development of an innovative solid hydrogen hybrid storage system. Onboard storage of hydrogen is the largest technological challenge to the use of hydrogen as a major transportation fuel. Ovonic Hydrogen Systems in Rochester Hills has developed a solid hydrogen storage system that offers significant potential for scientific breakthrough.
- $1.6 million for an initiative focused on obtaining significant cost reductions and improved performance of fuel cell power systems that can be utilized in military equipment. Under this program, field trials of material handling equipment utilizing fuel cell technologies will likely be carried out at Selfridge Air National Guard Base and other locations in the State of Michigan. These deployments of fuel cell technology in material handling equipment will provide important benchmarking to gauge necessary improvements in the technology in order to meet military needs. This program will be managed by TACOM.
- $1.6 million to initiate a competitive biofuels research program at the Defense Logistics Agency. Interest in biofuels is driven by high oil prices, environmental concerns, as well as national security concerns. Aggressive efforts are required to develop advanced biofuels such as cellulosic ethanol and butanol, high yield biodiesel, and wood-derived bio-oil, all of which have significant potential to be utilized by DoD. Michigan universities and other entities with extensive background in the area of biofuels will be well-positioned to compete for these funds.
