The electric vehicle industry may be getting a jump-start in Oregon.
The state legislature is considering whether Drive Oregon, a program initiated by the Oregon Innovation Council last August to foster the growth of the electric vehicle-related companies, should receive $2.45 million in funds next year as suggested in Gov. John Kitzhaber’s recommended budget.
The funding would be a first for the new program, which already comprises more than 40 businesses across the state involved in the manufacturing of electric vehicles. Drive Oregon officials claim that the state is an ideal place for this industry, and they see the funding as a crucial step in the right direction.
“Oregon already has a bit of a head start on electric vehicles,” said Tim Miller, Drive Oregon board president. “Major companies test their vehicles here, and a lot of businesses that are based here are innovating vehicles, components and infrastructure like charging stations. This new funding would help pull all this together and really make it grow.”
A significant portion of the state allocations would go toward establishing and staffing the Drive Oregon organization so it can better serve its affiliated businesses, most of which are small producers or start-up companies. The funding would also be used to pursue additional financial support from corporations, other state programs and federal grants.
“State funds would also strengthen the industry by enabling us to go after federal and other programs in a concerted way so that we can actually land some of those dollars,” Miller said.
Even without the funding, Drive Oregon has assisted its affiliated businesses by promoting collaboration throughout the industry, encouraging them to work among themselves to grow.
Mark Brady is a clean technology strategist for Business Oregon, a state agency branch that provides most of the staffing for OIC initiatives. He said that despite a lack of previous state funding, Drive Oregon has been successful since its inception in August.
“Considering that a lot of these are emerging businesses without a lot of resources, I think they have accomplished quite a lot,” Brady said. “They are trying to add value that is completely separate from the OIC. Their sole reason for existence is not to feed off the OIC. They have been trying to find out ways that they can use their existing resources.”
Still, the potential state funding currently under consideration in the legislature represents a significant boost for the industry, and many electric vehicle
companies are eager to see it pass.
“The fact that we were included in the budget has allowed us to move forward more aggressively,” said Mark Frohnmayer, CEO of the Eugene-based Arcimoto company. “It has helped even in the volunteer capacity that we are operating at now, knowing that we may have catalytic funds available come this fall.”
Drive Oregon stands for a little less than 15 percent of total anticipated OIC program funding. If Kitzhaber’s budget proposals are approved by the legislature, the OIC would receive approximately $19 million in lottery funds for all of its initiatives. The strain of the state’s immense revenue deficit means that the OIC is by no means guaranteed this full amount.
However, many feel that the strong reputation of the OIC should be enough to provide programs like Drive Oregon with their recommended funding.
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