Senate Axes House Bid to Trim $25 Billion Green Car Loans

By:  Brian Koenig
09/29/2011
       
Senate Axes House Bid to Trim $25 Billion Green Car Loans

Despite ongoing controversy over the federal government’s scandalous loan guarantee to the now-bankrupt Solyndra, a $25 billion green-car loan fund has managed to avoid the congressional guillotine. The Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) loan program, which was established during the Bush years and began dispensing funds during the Obama administration, is designed to provide debt capital to the auto industry and assist manufacturers in retooling facilities and equipment and improving fuel economy for vehicles manufactured in the United States.

In his 2011 State of the Union Address, President Obama vowed to "break our dependence on oil" and pledged that the United States would "become the first country to have one million electric vehicles on the road by 2015." Considering the ATVM loan program and consumer offerings such as Cash for Clunkers, the President’s proclamation is not a market goal, but a government goal, and as he perceives it, such a target is only achievable through government-sponsored loans and subsidies.

The ATVM program has become a hot target for conservatives, but Senate Republicans choked legislative efforts from House Republicans to shave the $25 billion program by $1.5 billion to help avert a government shutdown and outweigh new spending for disaster relief.

Despite ongoing controversy over the federal government’s scandalous loan guarantee to the now-bankrupt Solyndra, a $25 billion green-car loan fund has managed to avoid the congressional guillotine. The Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) loan program, which was established during the Bush years and began dispensing funds during the Obama administration, is designed to provide debt capital to the auto industry and assist manufacturers in retooling facilities and equipment and improving fuel economy for vehicles manufactured in the United States.

In his 2011 State of the Union Address, President Obama vowed to "break our dependence on oil" and pledged that the United States would "become the first country to have one million electric vehicles on the road by 2015." Considering the ATVM loan program and consumer offerings such as Cash for Clunkers, the President’s proclamation is not a market goal, but a government goal, and as he perceives it, such a target is only achievable through government-sponsored loans and subsidies.

The ATVM program has become a hot target for conservatives, but Senate Republicans choked legislative efforts from House Republicans to shave the $25 billion program by $1.5 billion to help avert a government shutdown and outweigh new spending for disaster relief.

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