Rep. Peters Urges Budget Committee to Double Advance Technology Vehicle Program, Fund Grant Program, Increase MEP

Washington, D.C. – Congressman Gary Peters testified today before the House Budget Committee in support of increased funding for programs to help the U.S. auto industry and other programs supporting America’s manufacturing sector.  Congressman Peters urged the committee to double funding to retool manufacturing facilities in the U.S. to produce advanced technology vehicles and vehicle components such as next generation batteries.  He also testified in favor of increased funding for the Energy Efficiency and Renewable Energy (EERE), 21st Century Truck Partnership and FreedomCAR programs, as well as the Manufacturing Extension Partnership.

Excerpts of Congressman Peters’ testimony as prepared for delivery below, full remarks follow.

“President Obama and many in Congress have called for our domestic auto industry to transition into producing new green vehicles, using advanced battery and fuel cell technologies.  If building the next generation of clean automobiles here in America is truly a priority, we need to make stronger Federal investments in the automotive research and development arena….
 
“The economic recovery package President Obama recently signed into law includes $2 billion for advanced vehicle manufacturing, and this is a great first step.  But $2 billion more is still not enough when compared to the tens of billions of dollars that the Japanese, Chinese, and Korean governments are investing in these technologies.…

“The global race to create the ultra-efficient cars of the 21st Century has begun, and the United States is already giving other nations a tremendous head start….  Other nations have committed billions of dollars to support new manufacturing technologies because they know they represent the jobs of the future.  Our country and our government need to do the same or we’ll get left behind.”

CONGRESSMAN GARY PETERS
TESTIMONY TO THE HOUSE COMMITTEE ON THE BUDGET

Remarks as Prepared for Delivery

March 11, 2009

Mr. Chairman, Thank you for the opportunity to testify today.  Of the 4.4 million jobs lost so far in this recession, 1.3 million have been lost from the manufacturing sector.  A healthy manufacturing base is critical to ensure the security and prosperity of the American middle class and critical to our overall economic recovery.  In order to maintain competitiveness in the global marketplace, U.S. manufacturers must adapt to new technological developments and economic changes.  They must retool and retrain as they implement the next generation of manufacturing practices and green technologies.

The State of Michigan, the domestic auto manufacturers, and many other companies in the state and across the country are investing heavily in new technologies that will help renew our manufacturing sector and auto industry.  Leaders in the private sector and in our states are determined to maintain America’s place as a world leader in manufacturing technologies.  I believe that determination must be matched at the federal level to achieve the technological change being demanded. 

President Obama and many in Congress have called for our domestic auto industry to transition into producing new green vehicles, using advanced battery and fuel cell technologies.  If building the next generation of clean automobiles here in America is truly a priority, we need to make stronger Federal investments in the automotive research and development arena.

There is a lot of exciting technology being developed right now – traditional hybrids, plug in hybrids, clean diesels, ethanol – and we’re going to need to invest in all of them if we are to achieve energy independence.  At the federal level there are several programs in place to put significant resources behind efforts to renew the domestic automobile industry, but funding levels are not currently adequate for these programs to achieve their stated goals.
 
Section 135 of the Advanced Battery Loan Guarantee and Grants Program was authorized by Energy legislation passed by Congress in 2007.  This program authorizes both loan guarantees and grants for the construction of manufacturing facilities for advanced vehicle batteries and battery systems.  However, this critical job-creating, fuel-saving program has yet to receive any funding.  Congress needs to fund and implement this program.
Section 136 of the Advanced Technology Vehicles Manufacturing Loan Program (ATVMLP) provides up to $25 billion in direct loans that will be made available to eligible applicants for the costs of reequipping, expanding, and establishing manufacturing facilities in the U.S. to produce advanced technology vehicles and vehicle components.  However, based on the number of applications already submitted to the 136 program, it is likely more funding will be necessary to accommodate worthy projects. With credit markets frozen, federal loans are virtually the only means through which auto companies can secure the financing to continue this research and development.  This is another job-creating program crucial to our industry and we should double its funding.
The economic recovery package President Obama recently signed into law includes $2 billion for advanced vehicle manufacturing, and this is a great first step.  But $2 billion more is still not enough when compared to the tens of billions of dollars that the Japanese, Chinese, and Korean governments are investing into these technologies.

The global race to create the ultra-efficient cars of the 21st Century has begun, and the United States is already giving other nations a tremendous head start.  All of these programs to help develop the next generation of clean cars need more Federal support if we are to ensure that we do not trade our dependence on foreign oil for a dependence on foreign batteries.

The Department of Energy’s office of Energy Efficiency and Renewable Energy (EERE) has additional programs performing R&D of hydrogen fuel cells, batteries, and other advanced technologies.  The 21st century truck partnership and FreedomCAR are prime examples of programs that partner with our domestic automakers and which need more federal support in order to move these technologies out of the laboratory and into the showroom. 

The FreedomCAR and Fuel Partnership’s ultimate objective is a clean and sustainable transportation energy future that reduces the nation’s dependence on foreign oil and minimizes regulated emissions and CO2, yet preserves freedom of mobility and vehicle choice for consumers.  The goal of the 21st Century Truck Partnership is for our nation's trucks and buses to safely and cost-effectively move larger volumes of freight and greater numbers of passengers while emitting little or no pollution, with dramatic reduction in dependence on imported oil.  Commercial trucks and buses are some of the least fuel efficient vehicles on the road, and I know there are companies in my district developing new innovative technologies to make these vehicles run cleaner and greener, and more cost effectively.  Imagine what else could be possible with more federal R&D backing.

Big 3 automakers have been active in participating in the EERE programs, and we should encourage their research and collaboration with the industry in developing these technologies. Without a systematic investment in the long term for these programs, we will not see the results at which these programs aim.

Finally, support for the Manufacturing Extension Partnership, or MEP, and Technology Innovation Program under National Institute of Standards and Technology must be maintained. 

The Manufacturing Extension Partnership is a national program that provides technical services and assistance to increase productivity and efficiency of small and medium sized manufacturers.  MEP services are available at 443 locations in all 50 states.  The MEP was credited with creating or retaining 52,000 jobs in 2006 and stimulating $1.65 billion in economic growth.  Participants in the program reported sales increases of $6.8 billion and more than $1 billion in cost savings.  The success of these programs is uncontested and they should continue to be part of our domestic manufacturing strategy moving forward.

Thank you again for the opportunity to testify today.  The United States has begun making investments into batteries and other advanced technologies, but it is not enough.  If we want to maintain our economic competitiveness, create jobs and truly become energy independent, we must support our manufacturing sector and auto industry at the same pace as other countries.  Other nations have committed billions of dollars to support new manufacturing technologies because they know they represent the jobs of the future.  Our country and our government need to do the same or we’ll get left behind.