Playing ACES: Electric Cars Get a Big Democratic Push

(MoneyWatch)  The bill from two House Democrats, Ed Markey of Massachusetts and Henry Waxman of California, is more like a rough outline for an climate and energy plan than a final draft. But if enacted it will be sweeping indeed in its implications, not only the auto industry (which would be required to build more electric cars), but for our entire energy grid (which would get "smarter"). Predictably, conservatives see it as creeping socialism and environmentalists say it doesn't go far enough.

The American Clean Energy and Security Act (ACES) would "create millions of clean energy jobs," says Waxman. He adds that it will also promote carbon sequestration, low-carbon fuels, energy efficiency in buildings, appliances, transportation and industry; place limits on greenhouse gas emissions; and promote the aforementioned jobs. It would also put brakes on any new coal plant construction.

The ACES bill is sketchy on details of how the cap-and-trade program would work, including how pollution allowances would be handed out and whether they'd be auctioned or initially given away. President Obama's own plan calls for two-thirds of revenue from permit auctions to go back to the public in the form of tax breaks.

Joe Romm, a former DOE official turned clean energy campaigner, gives the bill a B+ at ClimateProgress.org. Some greens chide the plan for allowing industry to comply by invoking carbon offsets (such as planting trees).

The bill is 600 pages long, but it's key automotive provisions are:

· Requiring electric utilities to develop a plan to support plug-in hybrids and electric vehicles (EVs) with charging stations; · Asking the Secretary of Energy to design a program to "deploy and integrate" plug-in electric drive vehicles. The program should "demonstrate the viability of a vehicle-based transportation system that is not overly dependent on petroleum as a fuel and contributes to lower carbon emissions than a system based on conventional vehicles"; · Providing carmakers with DOE "financial assistance" for the U.S. manufacturing of both EVs and battery packs. This is already being done through the $25 billion Advanced Technology Vehicles Manufacturing Loan program, established in 2007. Carmakers on both sides of the Atlantic are vying for that money, but none has yet been awarded.

According to Plug-In America, the existing stimulus bill includes $14.4 billion for electric cars, notably $2 billion for advanced battery manufacturing, a $2 billion plug-in vehicle tax credit, and $400 million for plug-in infrastructure.