Cash for Clunkers "borrows" from Energy Dept Innovative Loan Program

From Solar Nation:

"The Obama Administration has diverted one-third of the $6 billion allocated to the DOE Innovative Technology Loan Guarantee Program to the ‘Cash for Clunkers’ program, which has proved so popular that it was in danger of running out of money. The rationale of the Administration and Congress is that DOE will not be able to spend that part of its funds before the end of the year, so will not miss it in the short term. And White House staffers have assured concerned clean energy supporters that the Loan Guarantee Program fund will be replenished by that time."

As popular as the cash for clunkers program has been, pilfering the funds from the solar R&D fund seem a wee bit short-sighted don't you think? Why not raid funds set aside for the oil and gas industry or nuclear programs instead?


The way to fund this program so that it doesn't keep collapsing under the weight of its own success is to create a "fee-bate." Gas guzzlers - SUVs and trucks included - would pay a premium for the privilege of crapping up the planet and making us choke on excessive smog. That premium would subsidize purchases of highly efficient cars (and even SUVs and trucks if they are as fuel sipping as the top tier cars).


Not my idea by any stretch. The concept has been advocated by Amory Lovins of the Rocky Mountain Institute for decades.