Michigan's economy is facing challenges today, especially our backbone, the automotive industry. New federal regulation mandating dramatically higher fuel efficiency from cars, trucks, and SUVs. These mandates will cost the domestic auto industry at least $85 billion dollars to implement, adding between $5,000 to $7,000 to the price of cars, and forcing the Big Three to totally change their lineups. Unfortunately, Washington continues to send hurdles to the Big Three and not help.
The solution is to find a way to:
- Stimulate our economy
- Create and retain high-paying jobs
- Help the Big Three compete
- Foster research and development
- Promote alternative fuel technology
That is why I have introduced the The New Bridging Industry and Government Through Hi-Tech Research on Energy Efficiency (New BIG THREE) Act. This legislation is a comprehensive strategy for the Big Three and Michigan's economy. It creates plan that will help the automakers meet the new regulations, help make Michigan a national leader in alternative fuel technologies, and help stimulate the economy by creating high-paying jobs.
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"Joe Knollenberg knows exactly what we need. Oakland County is perfectly positioned to take advantage of his plan."
- Oakland County Executive Brooks Patterson
"Congressman Knolleneberg's plan will greatly accelerate market acceptance of advanced technology and alternative fuels"
- Robert Babik, Director of Emissions, Environment and Energy, General Motors
"Congressman Knollenberg's proposal would provide critical help to the auto industry as we meet the challenges of moving forward with advanced power trains in the midst of intense global competition"
- Charlie Pryde, Director of Government Relations, Ford Motor Company
"Expanding the tax credit to cover our research and development on alternative fuels, as Congressman Knollenberg, suggests, is one of the most important steps Congress could take."
- Fred Hoffman, Director of Government Relations, Chrysler LLC
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Provisions in the New BIG THREE Act:
- Permanently extends the R&D Tax Credit at 20% and makes it fully refundable for expenditures that help meet the new CAFE standards, which are estimated to cost the domestic auto industry $85 billion over the next twelve years.
- Authorizes federal funding for R&D of new, leap-ahead technology to help meet CAFE standards, including:
• $750 million over five years for advanced battery R&D
• $250 million over five years to install hydrogen fuel pumps at commercial gas stations
• $150 million over three years for the federal government to purchase hydrogen fuel-cell vehicles to reduce federal fleet fuel emissions
• Harmonize biodiesel standards nationally so that highly-efficient biodiesel engines can run throughout the country
- Establishes an Interagency Group on CAFE Standards, which would:
• Meet quarterly and report annually on federal advanced fuel technology R&D
• Produce a comprehensive budget of all federal advanced fuel R&D expenditures
• Propose recommendations for future federal advanced fuel technology R&D.
Fact Sheet on the New BIG THREE Act
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