TAP found this interesting little ditty:

I don't find myself agreeing with Republican representative Dan Lungren very often, but this strikes me as a great idea. He's sponsored legislation offering a $1 billion prize to the first American automaker able to create, market, and sell 60,000 cars that get 100 mpg. He explains, "[c]ompetition for a prestigious prize is far more likely to get results than government programs aimed at anticipating and funding 'winners.' Although occasionally effective, federal subsidies are paid before an industry proves it can achieve what it set out to do, and all too often such subsidies are given to the politically influential, not the meritorious. But prize money is paid out only when the goal is achieved."

Quite right. I'd quibble with leaving this to American automakers -- if the intent is to popularize the car rather than subsidize politically influential corporations, other companies should get to play. Maybe the prize can be limited to the first company that develops, builds, and sells the automobiles in America (the Japanese makers, after all, are opening tons of domestic production plants). Nevertheless, it's a good concept, and the sort of outside-the-box thinking that could generate some interesting, unexpected results. 

My initial reaction is that this is the beginning off a very good idea (see, I’m not a partisan!). As is Ezra’s suggestion to open it up to outside innovators (not likely in a GOP congress).

However, there has to be a better yardstick for success than simply selling 60,000 cars. Otherwise, for a billion dollar handout, they will simply get rich investors to foot the bill and buy the damn things.

I still think the idea is good in principle. However, a more sound end goal ought to be the ability to manufacture within a 'reasonable' price range. This doesn't have to be the kind of thing everybody can afford (the free market should take care of the inflated price over time). However, it should be no more than, say $50,000.

Also, acceptance of the award should imply a mandatory agreement to freely share the technology.