FY 08 Omnibus Appropriations Act
On December 26, 2007, President Bush signed into law the FY 08 Omnibus Appropriations Act:

• The Department of Energy received $215 million for vehicle technologies, an increase of more than $38 million over the President's budget request. This appropriation includes: $95 million for hybrid vehicle electric systems development ($14 million over the budget request, to be spent for advanced battery storage research, and development and demonstration of electric, hybrid-electric and plug-in hybrid vehicles). DOE is directed to spend $45 million for advanced combustion engine R&D, $40 million for materials technology, $18 million for fuels technology, and $17 million for technology integration. DOE is directed to competitively bid an award for an Advanced Vehicle Testing Activity to test and evaluate all vehicles developed in an upcoming plug-in hybrid electric vehicle demonstration.

President's FY 09 Budget Request
On February 4, 2008, President Bush released his FY 09 budget request, asking for $221 million for advanced vehicle technologies development at DOE:

• The request includes $103 million for Hybrid Electric Systems. Within this program-focused on advancing hybrid electric (HEV) and plug-in hybrid (PHEV) vehicles-$21 million is requested for vehicle and systems simulation and testing, $14 million for technology validation, $49 million for energy storage R&D, and $15 million for advanced power electronics and electric motors R&D. Activities planned for FY 09 include: expanded simulation studies of control strategies and components for PHEV, PHEV fleet evaluations, hydrogen fuel cell vehicle testing, and the operation and testing hydrogen fueling stations. Ongoing advanced battery R&D in partnership with universities, national labs, and industry will focus on innovative materials and electrochemical couples for energy storage for HEV and PHEV vehicles, advanced diagnostic techniques to investigate lithium-based batteries in transportation applications, and development of nanoscale materials and architectures for electrical energy storage. DOE plans to continue to solicit proposals and award subcontracts for development of batteries for PHEV applications. A request for proposals is planned to support the development of advanced materials for lithium-ion batteries.
• In the advanced combustion engine R&D program, a new solicitation is planned with the intent of working in partnership with industry to incorporate new technologies into a complete engine system capable of achieving 55% efficiency by 2013, while meeting prevailing emissions standards. One or two participants will be selected to develop a complete heavy-duty diesel engine system incorporating technologies such as optimized combustion, fuel injection, emissions control, and waste heat recovery systems.

New Comprehensive Energy Legislation
After tough deliberations, Congress passed the Energy Independence and Security Act of 2007 (Public Law 110-140) and President Bush signed it into law on December 19, 2007. This comprehensive energy legislation authorizes new programs and increased support for high efficiency vehicles, advanced batteries, and energy storage. Some of the provisions include:

• Lightweight Materials Research and Development: Establishes a DOE R&D program to determine how to reduce: the weight of vehicles to improve fuel efficiency, and the cost of lightweight materials for vehicles (i.e., steel alloys, fiberglass, and carbon composites). Authorizes $300 million over FY 08-12.
• Advanced Technology Vehicles Manufacturing Incentive Program: DOE is authorized to provide funding to automobile manufacturers and component suppliers to cover up to 30% of the cost of re-equipping, expanding, or establishing a U.S. manufacturing facility to produce certain advanced technology vehicles or components, and the cost of engineering integration of these vehicles and components. Facilities and equipment placed in service, and engineering integration costs occurring before December 2017 are eligible. There is a 30% set aside for small automobile manufacturers and component suppliers or consortia led by these small entities. No funding authorizations included.
• Energy Storage Competitiveness: DOE is authorized to establish a research, development, and demonstration program to advance energy storage systems for motor transportation, and electricity transmission and distribution. Basic research is to focus on materials design and synthesis, electrode-active materials, materials surface and interface dynamics, modeling and simulation, and thermal behavior. Applied research is to focus on ultra capacitors, flywheels, batteries and battery systems, compressed air energy systems, power conditioning electronics, manufacturing technologies for energy storage systems, and thermal management. DOE is authorized to establish, through competitive bids, up to four energy storage research centers to translate basic research into applied technologies. Over 2008-2017, the basic research program is authorized at $500 million, the applied research program at $800 million, and the energy storage research centers at $1 billion.
• Advanced Transportation Technology Program: A multi-pronged initiative that includes:
• • Electric Drive Vehicle Demonstration Program: DOE is authorized to establish a competitive grant program for demonstrations of pre-commercial plug-in electric drive vehicles. State and local governments, metropolitan transportation authorities, air pollution control districts, private companies, and non-profits would be eligible. $300 million is authorized for this program over 2008-2012.
  • Near-Term Electric Drive Transportation Deployment Program: Establishes a program to provide grants and loans for electric transportation projects that both reduce pollutants and greenhouse gas emissions, and petroleum usage by at least 40% over commercially available petroleum-based technologies. These projects are to involve: shipside or shore side electrification for vessels; truck-stop electrification; truck refrigeration units; battery powered auxiliary power units for trucks; electric airport ground support equipment; electric material and cargo handling equipment; electric or dual-mode electric freight rail; any distribution upgrades needed to supply electricity to a project; and any ancillary infrastructure. Priority would be given to large-scale projects and large-scale aggregators of projects. Other: The Advanced Transportation Technology Program is also to carry out: a market assessment to inventory electric drive and hybrid transportation technologies, and remove barriers to the application of these technologies; and an electricity usage program to work with utilities on a range of issues related to plug-in electric vehicles. For the grant and loan program, market assessment, and work with utilities, $750 million is authorized over 2008-2013.
  • Plug in Electric Drive Vehicle Research and Development: DOE is authorized to conduct an applied research program for plug-in electric drive vehicle technology and engine dominant hybrid vehicle technology, including: high capacity, high energy storage devices; on-board and off-board charging components; high-power and energy-efficient drive train systems; control systems and power trains; application of nano-materials to energy storage devices and fuel cell systems; and use of smart vehicle and grid interconnection devices and software to enable communications between the grid and electric drive vehicles. $1.2 billion over 2008-2013 is authorized for this research.
• Advanced Battery Initiative: An initiative to support research, development, demonstration, and commercial application of battery technologies through competitively awarded grants. DOE is to competitively select an Industry Alliance made up of U.S. battery manufacturers to advise the Secretary. While small businesses, researchers, national labs, and universities are eligible for grants, participants in the Industry Alliance will receive preference in the award process. No specific funding authorized.

Recent PHEV Solicitation
On January 17, 2008, DOE announced that it is offering $30 million over the next three years for companies to design and build plug-in hybrid vehicles (PHEV) and then test them in fleets. PHEVs must be able to travel at least 10 miles using only their electric drives, although DOE would prefer vehicles that come closer to achieving the goal of a 40-mile electric range. Vehicles must be comparable to current vehicles in terms of emissions, safety, comfort, and performance, and the projects must either involve a high-volume vehicle manufacturer or a company with the capability of producing vehicles in high volumes. DOE will fund up to half the cost of the selected projects, providing $7 million in FY 08 and an additional $23 million in FY 09 and FY 2010, subject to congressional appropriations. The first round of applications is due on February 13, and a second round will be due on April 30.

New Advanced Vehicle Partnership
The Department of Energy has signed a Memorandum of Intent with the State of Michigan and the Original Equipment Suppliers Association to participate in a cooperative, pre-competitive R&D alliance called the United States Automotive Partnership for Advancing Research and Technologies, or USAutoPARTs. The new alliance will initially consist of three research consortia that will focus on lightweight materials, electrical and electronic thermal management, and engine combustion and emission after-treatment. USAutoPARTs will be located in a 56,000 square-foot vehicle R&D center in Shelby Township, Michigan.