Congressman Mike Rogers (R-Brighton) dropped in to chat with the Rotary Club of Oxford last week about his low-interest loan program designed to get the Big Three building alternative fuel vehicles.
‘This was the Arsenal of Democracy (during World War II),? he said. ‘It certainly can be the arsenal for our economic freedom as well.?
Rogers, who represents Oxford, Addison and seven other townships in northern Oakland County, introduced legislation on Thursday through which the federal government would co-sign loans for Ford, General Motors and DaimlerChrysler that would allow them to borrow money for research and development of the ‘next generation of alternative fuels.?
A total of $20 billion would be set aside in the federal budget as collateral for these loans.
Rogers emphasized this is not a ‘bail out.?
‘Not one penny of taxpayers? dollars needs to be spent,? he said.
The only way taxpayers would be liable for these loan debts would be if one of the Big Three went bankrupt and ‘completely went away,? the congressman explained.
Otherwise, the $20 billion just sits there as insurance. ‘All we have to do is set that money aside just in case,? Rogers said.
Having the federal government as a co-signer drops the interest rate on loans from 12 percent, which Rogers said no person or company can ‘survive? paying, to a more reasonable 5 percent.
‘We’re talking about hundreds of millions of dollar difference,? he said.
Only auto companies and research and development companies headquartered in the United States would be eligible under the proposed legislation. Money can also be borrowed at the same low rate to build the new green vehicles ‘as long as it’s in the United States.?
‘It’s very specific,? Rogers said. ‘Right now, the only companies who qualify are the Big Three.?
Instead of having the federal government mandate what the next generation of alternative fuels is going to be or arbitrarily increasing fuel economy standards, Rogers wants to ‘unleash? the Big Three and let them decide whether the future’s going to be lithium batteries, ethanol, hydrogen or some other form of fuel.
‘We ought to say here’s the goal, now go get it, figure it out,? he said. ‘We’ve asked the Big Three to help us out of problems before, why don’t we ask them again and let them pay for it??
Making green vehicles an affordable reality will boost Michigan’s troubled economy, benefit the environment and most importantly, eliminate America’s dependency on foreign oil, something Rogers said, ‘We must end as soon as possible.?
‘That is a national security issue for this country,? the congressman said.