The Auto Writer

Frequently the federal government will mandate that the states, local governments, or private companies meet certain requirements, without providing the funds to reach these goals. In education, the “No Child Left Behind” act is one example of an unfunded mandate.

In the world of automobiles, the automakers have to meet scads of federal safety, crash, emissions, and fuel economy standards. These costs are absorbed by the automakers and/or passed on to consumers in the form of higher prices. For America’s three big domestic auto producers — General Motors, Ford, and Chrysler — these types of mandates are often viewed as a drag on their businesses.

A Michigan congressman, Joe Knollenberg, is proposing that the federal government provide aid to help the automakers meet tough goals including where they must improve fuel economy by 4.5% annually between 2011 and 2015. Knollenberg introduced his “Bridging Industry and Government /Through Hi-Tech Research on Energy Efficiency Act,” or Big Three Act, at a press conference Tuesday in Troy, Michigan.

Knollenberg says that the act is needed because the new fuel efficiency rules have placed unfunded mandates on a struggling industry. The bill would provide:

• Funding to pay for $750 million in advanced battery research and development spending over a five year period and

• Set aside $50 million annually for five years for grants to add hydrogen fueling stations, to provide adding 200 stations by 2013.

Knollenberg is in the middle of a tough reelection campaign and some critics have charged that his bill doesn’t go far enough. Being that it is an election year, the congressman’s initiative isn’t likely to be tackled by Congress before November’s election.

(Source: Detroit News)