Senate Panel Approves $2 Billion in Aid for Electric Vehicles

The Senate Energy Committee has approved a $2 billion program that aims to put 400,000 electric vehicles on the road in three years.

The Promoting Electric Vehicles Act (PEVA) of 2010 approved on a 19-4 vote this morning is a scaled-back version of an $11 billion bill first proposed in May.

The legislation from the Senate Energy and Natural Resources Committee also authorizes a $1.5 billion research program to lower the cost of vehicle batteries and connecting them to the electricity grid.

The program, to be run by the Energy Department, would provide electric-car grants to “deployment communities” across the U.S., said Senator Byron Dorgan.

The goal is to put the United States on a path to electrify half the country’s cars and trucks by 2030, which would cut U.S. demand for oil by about one-third.

[source: Electric Cars Report]