Washington – Senator Evan Bayh today urged Department of Energy (DOE) Secretary Steven Chu to immediately provide vital funding to expand advanced automotive technology manufacturing in the United States.

In a letter to Secretary Chu, Bayh called on the DOE to execute the Advanced Technology Vehicles Manufacturing Incentive Program, which provides direct loans to domestic manufacturers of advanced technology vehicles and parts, “as soon as possible… in a transparent and expeditious manner.”

Continuing his plan to help position the United States and Indiana as the global leader in automotive technology, Bayh is pushing for increased federal support of advanced vehicle technologies through this program, as well as in any stimulus package that emerges in Congress. Last month, Bayh urged Senate leaders to include full funding of next-generation vehicles and battery components in the economic stimulus package to help create quality jobs in the manufacturing and automotive sectors.

With the automotive and manufacturing sectors shedding jobs and idling plants, Bayh underscored the current economic situation compels Secretary Chu to administer the $25 billion program now, saying, “Because Congress appropriated money for the direct loans to meet emergency needs, I believe the Department is under an obligation to issue the loans as soon as possible.”

To date, the DOE has received 75 applications totaling $38 billion in requested funding for the first tranche of loans, but has yet to make any awards. Despite the urgent need to grow this sector of the economy, there is no deadline for the DOE to issue the loans.

The Advanced Technology Vehicles Manufacturing Incentive Program, part of the Energy Independence and Security Act of 2007, direct loans for the costs of reequipping, expanding and establishing manufacturing facilities in the United States to produce advanced technology vehicles or components. In the letter, Bayh warned that the United States is “falling behind,” as evidenced by Chinese car company BYD’s recent introduction of the world’s first plug-in hybrid electric vehicle for mass production.

Bayh advised Chu that advanced vehicle technologies “will help create and save jobs, stimulate the economy, and decrease our dependence on foreign oil, while also positioning the U.S. as a global manufacturing leader in advanced vehicle technologies.”

To ensure the program is both timely and transparent, Bayh recommended that the DOE award loans every quarter until the funds are expended and notify loan applicants of the progress of their applications at key stages in the decision making process.

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