[Congressional Record (Bound Edition), Volume 154 (2008), Part 5]
[Extensions of Remarks]
[Page 7273]
[From the U.S. Government Publishing Office, www.gpo.gov]




 NEW BRIDGING INDUSTRY AND GOVERNMENT TOUGH HI-TECH RESEARCH ON ENERGY 
                   EFFICIENCY (BIG THREE) ACT OF 2008

                                 ______
                                 

                          HON. JOE KNOLLENBERG

                              of michigan

                    in the house of representatives

                        Tuesday, April 29, 2008

  Mr. KNOLLENBERG. Madam Speaker, I rise today to introduce the New 
Bridging Industry and Government Through Hi-Tech Research on Energy 
Efficiency (BIG THREE) Act of 2008. This important legislation is a 
bold step to foster innovation, create and retain high-paying jobs, and 
promote efficient and alternative fuel technology to ensure that 
automakers meet the increased Corporate Average Fuel Economy, CAFE, 
standards.
  It is impossible to overlook the importance of the automotive 
industry to the U.S. economy. Our history and our heritage as a nation 
are deeply rooted in the automotive industry, which has greatly 
improved the quality of life in our time. Nearly 400,000 Americans jobs 
are provided directly by the automotive industry on assembly lines, in 
research facilities, and offices across the country. Additionally, 
approximately 3.5 million other jobs are supported by the automotive 
industry through parts suppliers, hospitals, schools, and police 
stations that serve them. That means that every automotive job equals 
nearly 9 other jobs for U.S. workers.
  It is also impossible to ignore the current struggles of the 
automotive industry. When Congress enacted energy legislation that 
increased CAFE standards to 35 miles per gallon by 2020, it placed the 
burden of cost on the auto industry to meet the aggressive efficiency 
targets. Increased CAFE standards represent only the latest hurdle 
thrown at the automotive industry from Washington, with little help 
delivered to assist the industry's pursuit of higher efficiency and 
lower emissions. During a time of an economic slowdown, Washington 
should take steps to protect these valuable jobs, not jeopardize them.
  CAFE will cost the domestic automotive industry an estimated $85 
billion to research, develop, and implement the efficient and 
alternative fuel technology required to meet the aggressive new 
standards. For an industry that already spends approximately $16 
billion per year on research and development, finding the extra funds 
to develop this technology without compromising drivers' safety will be 
extremely difficult. This means that the increased costs will have to 
be passed on to the consumer, with some estimating that it will cost an 
extra $6,000 per car to meet CAFE standards.
  Instead of throwing the automotive industry up the creek without a 
paddle,
  Washington should play a part in increasing energy efficiency. Energy 
security is an issue of national security and must be addressed over 
the short term and the long term. This requires a comprehensive 
strategy and steadfast dedication to meet our goal.
  That is why I have introduced this legislation, which will help 
automakers meet the new regulations, help make our country a leader in 
alternative fuel technologies, and help stimulate our slowing national 
economy. Michigan's economy has been in unique and deep trouble for 
some time.
  The first step in my plan is to permanently extend the research and 
development tax credit at 20 percent and make it fully refundable for 
expenditures that help meet the new CAFE standards. Automakers and 
suppliers have not been able to take advantage of the tax credit 
because they have not made substantial profits in recent years. 
Allowing an industry that currently invests significant funding in 
advanced research and development to take advantage of the tax credit 
will help defray the costs of increased research and development. This 
will enable them to reinvest these funds and create more high-paying 
jobs in the U.S.
  The New BIG THREE Act will also invest significant Federal funding in 
research and development of leap-ahead technologies that will help us 
meet the new CAFE standards. Advanced battery technology is one of the 
most promising ways to dramatically increase fuel efficiency. However, 
there is no domestic production of advanced battery technology that is 
applicable to vehicles. By investing $750 million over 5 years to 
research and develop advanced battery technology, my bill will help 
ensure that America is the epicenter of hybrid and plug-in electric 
vehicles that will help reduce our dependence on oil.
  Hydrogen fuel cell technology has always been regarded as the long-
term goal of extremely low-emission transportation. The New BIG THREE 
Act will invest $250 million over 5 years to install hydrogen fuel 
pumps in commercial gas stations in at least two pilot regions. By 
establishing a hydrogen infrastructure, we can promote use of currently 
available hydrogen vehicles and provide an incentive to produce more of 
these leap-ahead vehicles. The New BIG THREE Act will also invest $150 
million over 3 years for the Federal Government to purchase hydrogen 
vehicles in order to reduce the emissions of our fleets and demonstrate 
the viability of the technology.
  The New BIG THREE Act also has a provision that will affect short-
term efforts to increase fuel efficiency. Clean diesel technology is 
one of the best ways to reduce emissions in the short term, and 
utilizing biodiesel is a promising way to reduce our dependence on 
Middle East oil. However, not all current biodiesel blends are 
compatible with all biodiesel engines. My bill will direct the 
Environmental Protection Agency to make a harmonized national standard 
for biodiesel composition.
  Finally, my comprehensive plan will establish the Interagency Group 
on CAFE Standards, which will make sure Federal agencies work together 
and that all money spent on auto-related projects is used wisely and 
most effectively.
  Ultimately, my plan is about jobs and our economy. The New BIG THREE 
Act is about working with one of our most important industries to 
create and retain good jobs, allow the industry to be competitive in 
the global market, and help move to a cleaner and more efficient line 
of American cars. The strong position of the Federal Government created 
by CAFE on all of these issues mandates a strong commitment to make 
sure the goals are accomplished. I hope you will help American 
manufacturing succeed by supporting this important legislation.

                          ____________________