The Obama Administration today announced $8 billion in conditional loan commitments for development of green cars, including some which is expected to create up to 650 Bay Area jobs.

The money includes $5.9 billion for Ford Motor Company to transform factories across Illinois, Kentucky, Michigan, Missouri, and Ohio to produce 13 more fuel efficient models; $1.6 billion to Nissan North America, Inc. to retool their Smyrna, Tenn., factory to build advanced electric automobiles and to build an advanced battery manufacturing facility; and $465 million to Tesla Motors to manufacture electric drive trains and electric vehicles in California.

The first Tesla loan will finance a Southern California factory – with an estimated 1,000 jobs – to produce the Tesla Model S sedan, which is expected to be about $50,000 cheaper than Tesla’s first vehicle, the Roadster. The all-electric car consumes no gasoline, running entirely on electricity from any conventional 120V or 220V outlet; it’ll get the equivalent of more than 250 miles per gallon, which is far better than the 32.7 mpg minimum efficiency required for large sedans. Model S production is to start in 2011 and ramp up to 20,000 vehicles per year by the 2013’s end. This integrated facility expects to create 1,000 jobs in Southern California.

The second part of the Tesla loan will support a Bay Area factory – employing an estimated 650 workers – making battery packs and electric drive trains to be used in Teslas and in other automakers’ cars including the Smart Fortwo city car by Daimler. Early pilot battery pack production is to start in 2011, reaching about 10,000 by 2012 and 30,000 packs in 2013.

These are the first conditional loan commitments reached as part of the Energy Department’s Advanced Technology Vehicles Manufacturing program; more loans are coming in the next few months to large and small auto manufacturers and parts suppliers up and down the production chain.

“We have an historic opportunity to help ensure that the next generation of fuel-efficient cars and trucks are made in America,” President Obama said in a news release. “These loans – and the additional support we will provide through the Section 136 program – will create good jobs and help the auto industry to meet and even exceed the tough fuel economy standards we’ve set, while helping us to regain our competitive edge in the world market.”

Although he’ll be here to talk about American Recovery and Reinvestment Act economic stimulus funding for clean energy projects, watch for Energy Secretary Steven Chu to mention the Tesla loan when he visits the Edison Electric Institute’s annual convention Thursday in San Francisco.

UPDATE @ 1:36 P.M.: This makes Gov. Arnold Schwarzenegger happy, it seems.

“Today’s announcement is just the sort of sustainable energy policy I have been talking about. It is more important than ever that we secure our nation’s energy independence and lay the foundation for long-term competitiveness, and no time is better to do so than right now when our country is facing tough economic times. California is leading the country’s transition to a clean energy future, and with companies like Tesla based here and the assistance of the Department of Energy’s new program, we are spurring the development of green technologies and jobs – setting the stage for robust 21st century growth.”

UPDATE @ 3:51 P.M.: More love and kisses, this time from Rep. Anna Eshoo, D-Palo Alto.

“I’m extremely pleased that Tesla has been named a recipient of the Department of Energy’s AVTM Incentive Program loan. The new loan will allow Tesla to increase its manufacturing capacity and will create 650 green jobs in the Bay Area alone. I voted to create the AVTM Incentive Program because investing in innovative technologies that decrease our dependence on foreign oil is critical to our long-term energy needs.

“Tesla was chosen through a competitive application process and this loan is a testament to their creative work to advancing electric vehicle technology throughout the past decade. Tesla is building the cars of the future and reinventing the American automobile industry right here in Silicon Valley.”