The mayors of both cities have urged congress to support the new generation of auto companies developing electric alternatives to traditional construction site and farming vehicles (SUVs) used on the roads today.

In an open letter to congress San Jose Mayor Chuck Reed and San Francisco Mayor Gavin Newsom (below) said "Innovation is the key to ensuring America's economic future. It is critical that any agreement to assist the American auto manufacturers not divert funds from innovative emerging transportation technologies that will help our nation grow out of the current recession by creating thousands of new green jobs, reduce dependence on foreign oil, and improve our trade balance, while protecting our planet.

Specifically, we oppose redirecting the $25 billion dedicated to the "Advanced Technology Vehicles Manufacturing Incentive Program" (Section 136 of the Energy Independence and Security Act of 2007) from its intended purpose of accelerating advanced transportation technologies, especially at a time when those funds are immediately needed by innovating American companies to bring new products to market. Other options are available to finance a federal response to the auto manufacturing industry cash flow problem.

We all believe that a vibrant American auto industry is critical to our nation's economic future. California has tens of thousands of jobs tied to the existing auto industry, from hundreds of suppliers and the General Motors/Toyota NUMMI manufacturing facility in Silicon Valley to repair/maintenance shops and retail sales franchises across the state. For this reason, we support efforts to improve the long-term sustainability of the traditional American auto manufacturers.

However, applying the Section 136 funds toward operating costs of the auto manufacturers will stunt innovation, stifle economic growth, and stall our national transition towards low-emission vehicles. As a result of private investment and supportive government policies in California, we are experiencing an explosion in the innovation of next generation alternative fuel vehicles. In Silicon Valley, companies like Tesla are developing long-range electric vehicles that have the potential to revolutionize the auto industry. Start-ups including Better Place and Coulomb are developing the infrastructure technologies needed to make electric vehicles a viable form of transportation, while companies including recent California Clean Tech Open winner ElectraDrive are developing electric car conversion systems. These companies are leading the way towards a green economy and have the potential to create tens of thousands of jobs nationwide.

Unfortunately, much of this growth in green industry is threatened if Congress adopts a plan that will eliminate all Section 136 funding for an indefinite period by diverting those dollars when other sources are options. Availability of Section 136 funding is critical to advancing Bay Area innovations that have the potential to help solidify America's position as the world leader in electric vehicle production. For example, the repurposing of the Section 136 funds could force Tesla Motors to defer their announced plans for a new 700,000 square foot manufacturing complex in Silicon Valley, costing 1,000 projected jobs, including more than 500 manufacturing jobs, setting back the company and undermining immediate and long-term economic benefits.

Therefore, we urge that any efforts to assist the existing auto manufacturers also protect the current availability of Section 136 funding and avoid the unintended consequence of irreparably harming American clean transportation companies of the future."

PlanetTesla: We thank you.

Source: City of San Jose public site: http://www.sanjoseca.gov/mayor/news/releases/December08/2008.12.05ReedNewsomAutoBailout.pdf