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President Clinton Supercharges PNGV Initiative, Proposes $50 Million Boost in R&D on Fuel-Efficient Vehicles

5 February 1998

President Clinton Supercharges PNGV Initiative, Proposes $50 Million Boost in R&D on Fuel-Efficient Vehicles

              FY 1999 Budget Increases Investment in Fuel Cells,
     Advanced Combustion Engines, Advanced Batteries, and Advanced Fuels

    WASHINGTON, Feb. 4 -- President Clinton has requested a
substantial budget increase for the Partnership for a New Generation of
Vehicles, requesting $277 million in Federal funding for the government-
industry partnership in his FY 1999 budget, a $50 million (22 percent)
increase over FY 1998 spending.
    Announced in September 1993 by President Clinton and the CEOs of Chrysler
Corp., Ford Motor Co., and General Motors Corp., the Partnership for a New
Generation of Vehicles (PNGV) is an historic partnership between the Federal
government and the U.S. auto industry (under their U.S. Council for Automotive
Research umbrella organization) to develop a new generation of vehicles with
very low emissions and up to three times the fuel efficiency of conventional
cars.
    At the program's outset, a large number of promising technologies were
identified for simultaneous research and development to improve the
probability of achieving the needed technology breakthroughs.  A major program
milestone was to narrow these technology development efforts by the end of
1997 and focus resources on the most promising.  Last month, the partnership
announced the results of its Technology Selection, narrowing the program's R&D
efforts to four key system areas deemed most promising:  hybrid electric
vehicle drive, direct-injection engines (especially emissions controls), fuel
cells, and lightweight materials.  The President's FY 1999 budget reflects the
Technology Selection priorities.
    As in years past, the Department of Energy receives the lion's share of
the President's PNGV budget request at $164 million, an increase of $36
million (28 percent) above its FY 1998 appropriation.  Increases in the Energy
Department's PNGV budget include:
    -- $21 million for fuel cell research;
    -- $10 million for research on direct-injection engines and advanced
       fuels; and
    -- $6 million for advanced battery research.
    The Environmental Protection Agency's PNGV budget would more than double
under the President's FY 1999 request from $17 million to $35 million.  This
increase primarily reflects EPA research to demonstrate emission control
technologies for advanced combustion engines, including alternative fueled and
petroleum fueled clean Diesel engines.
    The Commerce Department's proposed $22 million budget includes ongoing
funding for the PNGV Secretariat under the Technology Administration, and
research in "Advanced Automotive Manufacturing," a focus area under the
Department's Advanced Technology Program (ATP) managed by the National
Institute of Standards and Technology. The decline in the Commerce budget
between FY 1998 and FY 1999 reflects the paydown on mortgages on ATP projects
that were initiated in 1997.  No new projects were initiated in 1998.  Future
ATP funding may, or may not, include new PNGV-related projects.
    The Department of Transportation's FY 1999 budget for PNGV is $4.0
million, equal to its FY 1998 appropriation.  The National Science
Foundation's PNGV budget, which supports long-term research, drops slightly in
FY 1999 to $52 million, down from $53 million in FY 1998.
    In addition, the budget reflects decreases in some areas of research
deemed, as a result of the Technology Selection process, to be less important
for the Federal government to pursue.  Some of these technologies -- such as
gas turbines and ultracapacitors -- were deemed less promising, while others -
- such as hybrid vehicles system designs -- reached a point in the development
process where the industry partners were moving the research into more
proprietary, commercial applications.
    Four years into the 10-year partnership, PNGV has made solid progress
toward developing the enabling technologies for affordable, midsize, family
sedans capable of achieving up to 80 miles per gallon with very low emissions.
The advanced concepts unveiled by Chrysler, Ford and GM at the 1998 North
American International Auto Show in Detroit in January reflect this continued
progress toward PNGV goals.
    However, while the new concepts unveiled in Detroit are impressive,
significant additional technology breakthroughs and advancements will be
required to achieve the ambitious PNGV goals.  Chrysler, Ford, and GM are all
working on high-mileage PNGV concept vehicles to debut in 2000, to be followed
by production prototypes in 2004.  As demonstrated in the President's FY 1999
budget, the government partners and their national laboratories will continue
to pursue high-risk, cooperative research and development with the auto
industry to advance critical enabling technologies for possible use in these
vehicles.
    Research conducted through the Partnership is performed on a cost-shared
basis.  The Federal government funds a proportionately larger share of
fundamental research, but as R&D moves closer to commercial viability,
industry provides an increasing share of the cost.  Under PNGV, teams of
scientists and engineers from 19 Federal government laboratories are working
with their counterparts at Chrysler, Ford, GM, and more than 300 automotive
suppliers and universities.  Currently, most Federal funding for PNGV flows to
the Federal laboratories, auto suppliers, and universities.
    The research and commercial applications resulting from the ambitious PNGV
timeframe are stepping stones to the next technological breakthroughs that
could yield even greater benefits for the nation's energy security,
environment, and economic well-being.

                 Partnership for a New Generation of Vehicles
                        Budget Authority ($ millions)

                                      FY 1998        FY 1999        Dollar
           Agency*                  Appropriation   President's     change
                                                      Request

    Total PNGV Budget                    $227           $277          +$50
      Department of Energy               $128           $164          +$36
      Environmental Protection Agency     $17            $35          +$18
      Department of Transportation         $4             $4             0
      Department of Commerce              $25            $22           -$3
      National Science Foundation         $53            $52           -$1

    * PNGV also coordinates its efforts with other agencies, such as the
Department of Defense, which -- though not part of the core PNGV budget -- are
pursuing complimentary research and development.

SOURCE  U.S. Department of Commerce