honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Sunday, December 14, 2008

Green-auto activists fear funds lost

By Sharon Silke Carty
USA Today

Environmental groups are disappointed that money put aside to aid automakers to produce more fuel-efficient cars is now going to fund their operations.

Although the bill promises the money for retooling plants will be replenished in the future, environmentalists are skeptical. And they're also upset the bailout doesn't ban automakers from suing states that set tougher emissions limits than federal rules.

"We know they need help retooling their factories, and we feel very strongly that if those funds are going to be diverted and not replenished, Congress is walking away from their own commitment to fuel efficiency," says Phyllis Cuttino, head of the U.S. Global Warming Campaign for the Pew Environmental Group.

The Energy Independence and Security Act of 2007 called for increasing fuel efficiency to 35 miles per gallon by 2020. In exchange for agreeing, automakers would get $25 billion in loans to help revamp their plants. They waited over a year for Congress to allocate the money. Now, some will go to the bailout.

"The funding Congress is considering now is just a Band-Aid, and it diverts funds originally intended to help the Big 3 and other companies produce more fuel-efficient vehicles," says Michelle Robinson, director of the Clean Vehicles Program for the Union of Concerned Scientists. "Those funds should be replenished when the new Congress convenes in January."

What particularly irks environmentalists is that the automakers will continue their quest to stop individual states from enacting their own emissions rules.

Roland Hwang, vehicle policy director for the Natural Resources Defense Council, said, "The White House has decided they want to hold up this entire bailout bill in order to remove this litigation provision. We're very disappointed."