SEPTEMBER 15, 2009
Debate Arises on 3 Wheeler
By STEPHEN POWER
WSJ
WASHINGTON -- Is a three-wheeled vehicle an automobile? That question is at the center of a vigorous lobbying effort in Washington. The vehicle in question is the Aptera 2e, a machine that looks like a cross between a Cessna plane and a tricycle. It's the brainchild of Aptera Motors Inc., a three-year-old, closely held car company in Vista, Calif.
Aptera wants to borrow $75 million from a Department of Energy program created by Congress in 2007 to speed development of fuel-efficient cars. Aptera's backers include some big-money donors to the Democratic Party, and its quest for help has received a boost from a group of mostly California lawmakers who want to help a home-state enterprise. Allies of Detroit's big auto makers are lined up against them. The DOE ruled last year that the electric 2e didn't qualify under the $25 billion loan program. A three-wheeled vehicle doesn't meet the definition of an automobile under federal law as being "any 4-wheeled vehicle," according to a letter to Aptera last December from Lachlan Seward, the loan program's director.
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Enter Congress. A provision in a spending bill approved by the House before its August recess would expand eligibility for the loan program to include any fully enclosed vehicle designed to carry two adults and that averages at least 75 miles a gallon. Those criteria would cover Aptera's vehicle, which company officials say will go 100 miles on an electrical charge. The legislation, which must still be reconciled with a Senate bill and signed by President Barack Obama, also stipulates that the DOE "shall reconsider applications for assistance" that were filed last year and rejected on the basis they didn't meet the definition of a qualifying vehicle... "We need to think outside the box when developing new fuel-efficient vehicles," said Rep. Adam Schiff (D., Calif.), who led the push to attach the provision to the spending bill. "Obsolete bureaucratic definitions should not create roadblocks and stifle innovation."
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Aptera's quest for federal help raises a bigger question about Washington's effort to subsidize fuel-efficient vehicles: How much of the money should go to traditional companies with the most customers, versus start-ups with unorthodox ideas? "Novelty vehicles are not really the ones that will help the U.S. address the growing concern over U.S. oil consumption," said General Motors Co. spokesman Greg Martin. GM, majority-owned by the government, is awaiting a decision from the DOE on three loan applications totaling more than $10 billion. A DOE spokeswoman said the Obama administration hadn't taken a position on the provision, but "shares the goal of ensuring that the program is flexible enough to account for the full range of available technologies." So far, the agency has awarded roughly $8 billion in loans to three companies: Ford Motor Co., Nissan Motor Co. and Tesla Motors, a California start-up.
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Printed in The Wall Street Journal, page A16