Posted by: carboncreditsusa | February 27, 2009

“Electric Vehicles”: Dept. Of Energy Is Slow To Release $25 Billion Allocated To “Advanced Techology Vehicles Manufacturing Loan” Program As Companies And Projects Must Be “Financially Viable”

There are complicating factors. Money can be given only to companies and projects that are deemed “financially viable.” G.M. and Chrysler, which have applied for a combined $13 billion from the Energy Department, must wait until the end of March for the Obama administration to decide whether the companies’ restructuring plans would make them viable.

http://www.nytimes.com/2009/02/27/business/energy-environment/27green.html?_r=1&ref=business&pagewanted=print

The future of the American auto industry is getting off to a slow start.

The Energy Department has $25 billion to make loans to hasten the arrival of the next generation of automotive technology — electric-powered cars. But no money has been allocated so far, even though the Advanced Technology Vehicles Manufacturing Loan program, established in 2007, has received applications from 75 companies, including start-ups as well as the three Detroit automakers.

“Politicians are breaking down the door asking why the money isn’t being sent out,” said Michael Carr, counsel to the Senate Energy Committee, which oversees the Energy Department.

It is a question that Lachlan W. Seward, director of the program, says he hears a lot these days. “We’re moving with a sense of urgency,” said Mr. Seward, who also oversaw the Chrysler Loan Guarantee Board from 1981 to 1984. “But at the same time we are trying to do this in a responsible way that reflects prudent credit policy and taxpayer protections.”

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