President Obama Promises $175 Million For Sustainable Vehicle Development

The Obama administration stepped up efforts on August 10 to curb emissions from America's auto fleet, announcing plans to provide more than $175 million in fresh funding to support the development of clean and electric car technologies.

Following on from this month's announcement of new fuel efficiency standards for cars and trucks – a move President Obama hailed as "the single most important step we've ever taken as a nation to reduce our dependence on foreign oil" – the U.S. Department of Energy announced that $175 million of funding would be provided over the next three to five years to forty different projects across fifteen states.

"The Department of Energy is investing in new advanced technologies that will significantly improve vehicle fuel economy, save consumers money, and create skilled jobs for Americans," Energy Secretary Stephen Chu said in a statement.

"Investments in the next generation of autos will strengthen our economy and lead to a more fuel-efficient, clean energy future."

The department said the funding would help leverage a further $300 million in private sector investment to support a wide range of clean vehicle research projects. The new projects cover a wide range of technologies, including advanced fuels and lubricants, lightweight materials, batteries and electric motors, and fleet efficiency.

The funding is intended to help the auto industry comply with newly announced fuel efficiency standards that will require cars and vans to deliver an average fuel efficiency for their U.S. fleets of 54.5 miles per gallon by 2025, while large trucks and buses will be forced to cut emissions by a fifth by 2018.

The White House and senior Democrats have signaled that, in the wake of the controversial debt-reduction deal brokered with Republicans, the administration is keen to make clean energy and job creation a central part of their agenda through the autumn.

The latest funding from the Department of Energy follows two further clean energy grant announcements earlier this week, which saw the department award up to $39 million in research grants to advanced nuclear technology projects and nearly $7 million to support research into hydrogen fuel cells and storage systems.

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