A combination of new tax credits, government incentives and education and industry partnerships could help spark Oregon’s nascent electric vehicle cluster.

So say government and business leaders who’ll soon unveil ideas to urge economic development within the growing sector. The Alternative Fuel Infrastructure Working Group will make its economic development recommendations to Oregon Gov. Ted Kulongoski, who wants to attract more electric vehicle investment to the state. The group believes Oregon can grow on the backs of electric vehicle manufacturers and ancillary suppliers, such as technology companies that could create software and dashboard equipment to help operate the cars.

Kulongoski, who leaves office in 2011, has long encouraged the state to tie climate change strategies to economic development. He convened the group to goad electric vehicle-making sectors.

“Oregon has a heck of a chance to be a leader in transportation electrification,” said Charlie Allcock, a group member and Portland General Electric’s economic development director. “It’s a good time to be looking at this because the market is maturing.”

The recommendations also come during a flurry of activity aimed at establishing Oregon as an electric carmaking hub. The group Environment Oregon released a report detailing how electric cars can lower global warming emissions, oil consumption and toxic air pollution. The group includes Mark Frohnmayer, founder of the Arcimoto electric car company and an alternative fuel committee member. Frohnmayer’s company has collected $1 million from angel investors as it develops three-wheeled vehicles to sell for less than $20,000.

The alternative fuel group had no estimates of their proposals’ costs. Most industry analysts believe electric vehicle sales will comprise 5 percent of all cars sold by 2020. Research and Markets, a Dublin, Ireland-based researcher, estimates the industry will generate $227 billion in worldwide revenue by 2015.

Among the Oregon group’s proposals:

• One Oregon university would host an automotive engineering program backed by such private industry partners as Daimler Trucks North America, Intel Corp. and Ziba Design. Organizers could work with Clemson University, which established the $200 million International Center for Automotive Research. A Clemson official has already reached out to Intel Capital’s Steve Saltzman, a group member, to work on a similar Oregon project.

• The state could also provide as-yet undetermined funding to the Oregon Nanoscience and Microtechnologies Institute. The institute would use the funds to study ways to improve energy storage and lower electric vehicles’ usage costs per kilowatt hour. The institute typically receives funding through the Oregon Innovation Council, which received $16 million during the 2009 legislative session and $28 million during the 2007 legislative session.

• Electric vehicles would be folded into the state’s business energy tax credit program. Lawmakers are examining potential reforms to the program, which has lured several companies to the state but, critics say, has spawned abuses. Lawmakers had rejected, in the program’s 2007 expansion proposal, including provisions for electric vehicle-related manufacturing.

The state would establish a new “transportation electrification tax credit” for electric vehicles and infrastructure. The group gave no direction on how to shape the credit, but believes the option could increase electric vehicle usage and add more jobs in Oregon.

via Sustainable Business Oregon – Electric vehicle proponents urge Oregon to take the lead.