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 VehiclesFY 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