Green Bailouts, Green Stimulus Could Be On The Way

Though spending on environmental efforts has long been considered an extra expense, it seems that two famously big spenders -- the United States government and the "big three" automakers -- may be turning to green spending as a way out of grave financial danger.

President-elect Barack Obama is said to be considering an economic stimulus package that includes environmental considerations:

President-elect Barack Obama is considering a stimulus package that will include a heavy dose of spending on environmentally friendly projects aimed at creating "green-collar jobs" and saving energy.

While the package will focus on short-term outlays for traditional infrastructure projects to jumpstart an economy now officially declared to be in recession, it will also include longer-term measures to safeguard the environment.

Meanwhile, GM, Chrysler and Ford are due to submit "viability plans" to Congress today as they haggle for financial support from the federal government. As part of its plan, Ford says that it will be focusing more on environmentally-friendlier cars:

Ford Motor Co. Chief Executive Alan Mulally plans to tell Congress he is accelerating his company's development of hybrid and electric vehicles and is willing to cut his salary to $1 a year if Ford uses any federal funds.

How things have changed. Under such financial duress, the CEOs have been reduced by ridicule to driving themselves -- in hybrid cars -- to Washington, rather than making use of their corporate jets. From the Wall Street Journal:

In another symbolic move, Mr. Mulally plans to drive a Ford Escape hybrid to Washington, where he and his GM and Chrysler counterparts are set to appear later this week. They were criticized by Congress for flying private jets to the hearings last month. GM's Mr. Wagoner plans to drive a Chevrolet Malibu hybrid to the hearings, while others in his group will travel in a Chevy Cobalt hybrid and a Buick Lucerne that can run on 85% ethanol, said a GM official. Chrysler said CEO Robert Nardelli -- who told Congress last month he would take $1 in salary -- has ruled out flying by private jet this time but didn't say how he would travel.

If written into any viability plans approved by Congress for federal funding, the greener plans could have a real lasting impact on the country's infrastructure, especially if coupled with a green stimulus (or bailout) as people like Van Jones have opined.

Comments

[humanbeinghuman]

we had a 01 jetta tdi, it purred on 99% biodiesel and got 45 to 53 mpg.

[sheila]

3 words, Obama:

FEED IN TARIFFS!

point of use generation that people, not Big Energy, is paid for will provide MORE LOCAL SKILLED JOBS, MORE ECONOMIC STIMULUS, NO ENVIRONMENTAL HARM (UNLIKE BIG SOLAR AND BIG WIND), MORE RELIABILITY AND GRID STABILITY, NO EMINENT DOMAIN, and NO MONOPOLISTIC MERCENARY BIG ENERGY PAYOFFS.

we have GOT to break free of the tyranny of the Big Centralized Monopoly in an era of sun and wind power, and get power on our own roofs.

PLEASE will people insist that we stop allowing Big Renewables to kill our open spaces, including amazing carbon sinks like the Mojave, emit huge amounts of GHGs and hijack ratepayers, and insist that WE start getting PAID FOR DOING THE RIGHT THING?

[jacobomorales]

Green tech and energy independence must be supported until it succeeds, the same way that the oil and coal industries have been supported for the last 100 years. Lets have a level playing field and make sure we (America) succeeds. Tax breaks, subsidies, funding, all the perks the oil giants get and are still getting.

[goldrush]

Why not just drop all "tax breaks, subsidies, funding [and] all the perks" for every industry. Why should we try to prop up anybody or pick winners and losers? We'll have a level playing field this way without all the extra tax burden.

[tenzindorje]

Maybe they could drive in a Toyota Prius, and tell the American people they want to
BUILD CARS LIKE THESE.

[EinChicago]

Cheap plastic made in China pieces of crap that cost $25K to get basically poorer performance than a Chevy Nova and slightly better gas mileage than a Geo Metro?

Why the eheck would they do that? If VW was the People's cars, the Prius is the sheeple's car; crappy quality but great marketing for the weak minded.

[KillTheMessenger]

What's a Chevy Nova and a Geo Metro? Are those the rust buckets that I see being used as mice hotels on the parking lot next to student housing?

:-)

[Exusian]

Ein keeps spreading his innuendo that the Toyota Prius sold in the United States is made in China, which is flat out not true. It is, in other words, a lie.

[Tricina]

Toyota has built a successful brand because they listen to what people want and make it. They have economy vehicles, mid-range vehicles, hybrids, compacts and trucks. Their cars are extremely reliable, very safe and cheap to fix. Toyota doesn't make flashy cars. They make economical cars that people can afford and run for a long time. Toyota customers aren't sheep. Sheep buy flashy cars that are expensive and require constant upkeep, like, VWs, for instance.

[Caliwoman]

I have 85k miles on my '04 Prius and have only paid for oil changes and a repainted bumper, as I backed into a tree. The car looks, great, runs great, and has spewed a lot less crap into the air. Less asthma for kids was more important for me than cash savings on gas. Most Prius owners are more concerned about human and environmental health than saving on gas. And I support Saudi Arabia's repression of women less. My next car will be all electric with solar panels on the barn. Battery technologies already exist, don't let the big three lie to you about that. Then I'll just rent a hybrid for long distances as needed. Recycling at end of life will be important too. A Prius is not perfect, but its a step in the right direction.

[KillTheMessenger]

Mulally could come in a Ford Focus hybrid. Ford has been showing that thing off for years. Time to prove that it actually moves without being towed. And Wagoner should be able to bring a Chevy Volt prototype.

Now that would be impressive. But I wouldn't hold my breath.

[EinChicago]

Or they could drive a Prius and save a whooping 2-3 mpg.

That would be a nice fig leaf gesture. (Like the Prius).

[freethinking moderate]

Why should the Big Three build inefficient cars like the Prius when they could make 70MPG diesels like the VW Polo Bluemotion. Top Gear in the UK just had an episode where they drive diesels across Europe from Austria to Blackpool on one tank and even a Jaguar XJ made it. Cleaner diesels are more efficent than the Prius ever will be as it runs of gasoline and not just electric batteries.

[jackpinesavage]

The 1985 Ford Escort diesel got gas mileage as good as the Prius. And there's something to be said for applying the simplest solution.

[research]

We Should keep raising CAFE, rather than choosing a technology.

[ImpressedByHonesty]

Volt blows the Prius out of the water, actually. If only they would drive in on one of those.