Hatch Calls on President to Protect U.S. Lead in Plug-In Hybrid Technology

WASHINGTON – Sen. Orrin Hatch (R-Utah) today called on President Obama to protect America’s leadership in plug-in hybrid technology as his administration moves forward to restructure the nation’s ailing auto industry.

Hatch’s remarks came as he joined auto industry entrepreneurs and officials in Upper Senate Park to unveil the 100 mpg electric Hummer H3, which has been developed by Raser Technologies in cooperation with FEV and General Motors.

“As you can see, with American ingenuity, we do stand ready to lead the world in the electrification of the transportation sector, not only for passenger vehicles, but for trucks and SUVs,” Hatch said. “However, just as we are on the cusp of this major national victory, we have learned that the General Motors restructuring plan would sell off the Hummer brand to China. Needless to say, the technology and the plug-in hybrid H3 would go with it … It is now up to President Obama and his auto task force to make use of the resources Congress has given them to ensure that America does not sell away our leadership.”

Sen. Hatch’s complete remarks at Upper Senate Park follow:

Thank you for being here. We all heard the news yesterday about President Obama’s plans for a national fuel-economy and greenhouse-gas standard that would significantly increase mileage requirements for cars and trucks by 2016. Not long ago, I also recall the president committing to put two million plug-in hybrid vehicles on the road in the United States by 2015.

I commend the President for his goal of promoting more efficient vehicles and promoting the commercial production of plug-in hybrids in America. For the purposes of this press conference I will reserve judgment on the details of the president’s plan. Personally, I would choose a different approach, but let me be clear that I do agree with the goals themselves.

Congress has taken very significant steps toward these goals already. For my part, I have been very active in promoting alternative fuel and advanced technology vehicles in the United States. My first legislative effort in this area was in 1999, when I introduced the Alternative Fuels Promotion Act along with Senator John Rockefeller. The bill offered tax incentives for electric- and alternative-fuel vehicles, alternative-fuel infrastructure, and for the retail sale of alternative fuel for vehicles.

By the next Congress, I had seen the Honda Insight, had heard that Toyota would offer the Prius, and I began to see the potential benefits of hybrid-electric vehicles. They would reduce emissions, reduce our dependency on foreign oil, and promote important bridging technologies leading to further progress in the electrification of the transportation sector. So I added incentives for hybrid electric vehicles to the legislation and re-introduced it as the CLEAR Act, which stands for Clean Efficient Automobiles Resulting from Advanced Car Technologies. I certainly didn't do it alone; Senators Rockefeller, Jeffords, and Kerry were among early and strong co-sponsors. I was finally able to get the CLEAR Act enacted into law as part of the Energy Policy Act of 2005.

The CLEAR Act has been a big success. But one of the most exciting aspects of hybrids is the groundwork they lay for the logical next step: plug-in hybrid vehicles. The progression from hybrids to plug-in hybrids is not a giant step. However, in terms of energy policy, shifting transportation away from liquid fuels to the electric grid may prove to be nothing short of revolutionary.

The idea was really brought home to me by Raser Tech. Raser Tech developed a new, very powerful AC induction motor that could be used in electric and hybrid vehicles. I had been working on the CLEAR Act for a number of years, when Raser visited me and asked me to support incentives for hybrid-electric vehicles. They were a fairly new company and didn’t know that I was the sponsor of the CLEAR Act.

It was during that first meeting in 2004 that they shared their vision of a plug-in electric vehicle that could average 100 miles per gallon.

I continue to believe our nation is strengthened when we increase our domestic production of oil and natural gas. But it's obvious to me that we must aggressively promote alternative transportation fuels at the same time. When our most significant alternative transportation fuel is ethanol, which has so many limitations, where does that leave us? It leaves us with the alternative that has the greatest potential but has gotten so little attention – the electric grid.

When you begin to add up the various benefits the grid could provide as an alternative transportation fuel, you can't help but recognize its potential. In my view, there is no shorter path to adding diversity to our transportation fuels than by shifting the transportation sector to the electric grid.

Studies show that even when a plug-in hybrid gets its electricity from a coal-fired power plant, it provides an environmental improvement over a conventional gasoline vehicle.

Immediately after the CLEAR Act was enacted into law, I began drafting S. 1617, the FREEDOM Act, which stands for Fuel Reduction using Electrons to End Dependence on the Mideast Act. Senator Maria Cantwell of Washington and, then-Senator Barack Obama were original co-sponsors.

It quickly became apparent to me that the United States was positioned to lead the world in plug-in electric motor vehicles. And the aim of the FREEDOM Act is to help protect and maintain this leadership position. The FREEDOM Act is now law, and it provides a strong tax credit for consumers who purchase plug-in electric or plug-in hybrid electric vehicles, as well as incentives for the domestic manufacture of plug-in vehicles and their technologies.

The FREEDOM Act provides tax credits of up to $7,500 for passenger vehicles and larger credits for heavier weight classes.

I have heard some argue that the grid cannot handle all these new electric vehicles. Those who express this concern generally overestimate the amount of electricity required to recharge a plug-in vehicle. However, to address this concern, Senator Cantwell and I included a provision in the stimulus package that promotes smart metering. A recent study by the Pacific Northwest National Laboratory concluded that if plug-in vehicles used smart metering, up to 84 percent of the cars on the road could be plug-in vehicles without the need for an additional power plant. The study’s findings are astounding, and I’ve included the study in my press packet so you can see it for yourself.

So Congress has been quite aggressive in passing legislation and providing large appropriations to ensure that America maintains its leadership in automotive technology.
And American industry has stepped up to the plate. Behind us you can see a working plug-in hybrid Hummer H3. It was developed by a consortium of American technology companies, with the cooperation of General Motors. The H3 has a range of 40 miles in all-electric mode, and then another 600 miles in hybrid-electric mode. In the city, this H3 has twice the fuel efficiency of the Prius, and is even more efficient than the plug-in Prius, which Toyota expects to release soon.

This new technology is specifically designed for America's best-selling vehicle class – SUVs and trucks. We must keep in mind that more than 50 percent of auto sales in this country are still SUVs and pickups. It is simply not possible to force American farmers, contractors, business owners, and larger families into small-passenger vehicles. Any solution in America must also address our real need for larger vehicles. Let’s also keep in mind that a very large proportion of government fleets are made up of SUVs and trucks. This plug-in electric vehicle already has 12,000 soft orders from cities and companies who have committed to purchases. As you can see, with American ingenuity, we do stand ready to lead the world in the electrification of the transportation sector, not only for passenger vehicles, but for trucks and SUVs.

However, just as we are on the cusp of this major national victory, we have learned that the General Motors restructuring plan would sell off the Hummer brand to China. Needless to say, the technology and the plug-in hybrid H3 would go with it.

Included in my press packet is a New York Times article highlighting China’s plans to take over the leadership in this very technology.

Congress has passed the CLEAR act, the FREEDOM Act and other strong proposals promoting these advanced car technologies. In the past year, we have also provided billions of dollars in auto bailout money and funds specifically for Advanced Technology Vehicle Manufacturing to ensure that our nation maintains its early lead in this area. It is now up to President Obama and his auto task force to make use of the resources Congress has given them to ensure that America does not sell away our leadership.

I applaud President Obama for his stated goal to put two million plug-in hybrid vehicles on the road in the United States by 2015. In the next few days, I will be circulating a draft letter to the president, calling on him to make it a top priority to protect America’s leadership and innovation in vehicle technologies as the auto restructuring moves forward.

Thank you.