Green Car Advisor

Legislation

November 20, 2009

EPA: U.S. Fleet of 2009 Cars, Trucks Only Slightly More Efficient Than 2008 Models

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The fleet of new cars and trucks sold to U.S. consumers averaged 21 miles per gallon in the 2008 model year, a modest increase over the previous year, with Honda and Hyundai having the most fuel-efficient fleets in America, the U.S. Environmental Protection Agency reported Friday.

New vehicle fuel efficiency improved 2 percent in 2008 from 20.6 mpg for the 2007 model year. The government projected it will improve slightly to 21.1 mpg in the 2009 model year.

The EPA figures are based on real-world estimates for city and highway mileage found on window stickers at dealer showrooms, instead of mileage values developed through laboratory testing.

Honda Motor Co. led the industry in 2008 with 23.9 mpg, followed by Hyundai Motor Co. and its affiliate Kia Motors Corp. with 23.7 mpg, and Toyota Motor Corp. with 22.8 mpg.

Volkswagen AG's fleet averaged 22.3 mpg, followed by Nissan Motor Co. with 21.9 and BMW AG with 21.2.

General Motors Co. led U.S. automakers with 19.7 mpg, followed by Ford Motor Co. with 19.4 and Chrysler Group LLC with 19.3. The EPA projects Ford will increase its fuel efficiency by more than 1 mpg in the 2009 model year and overtake GM.

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California Launches Online Buying Guide That Rates Vehicles by Greenness

DriveClean-website.jpgThe California agency that sets the American standard for automotive emissions today unveiled a much-improved Website that helps consumers choose the least polluting cars on the market.

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Click on art to enlarge.
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The California Air Resources Board Website, using information collected for vehicle certification in the golden state, offers a practical and easy to use system that ranks vehicles according to their emission characteristics and provides tools to compare models.

The site allows visitors to view models by technology/fuel type, smog score, global-warming score and engine family. And there's a very smart tool that, with a click of your mouse, allows you to view all the tax incentives available for a particular model.

Last year, the agency adopted a state regulation requiring automakers to affix the Environmental Performance Label to California showroom models that convey the vehicle's smog and greenhouse-gas emissions. The simply illustrated graphic has two rankings, from one to 10, that depict vehicle emissions. The higher the score, the less polluting it is.

Driveclean.ca.gov puts these same rankings in an online format, making them practical for web research. The Website also provides information about clean-car technology and guides users to consider the emissions of the models they are evaluating.

We salute CARB, once again, for taking another significant step to make the world we live in a healthier place.

 
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November 19, 2009

Dutch Are First to Adopt Pay-Per-Mile Driving Taxes to Cut CO2, Reduce Oil Use

Idea Also Is Kicking Around in U.S, at State and Federal Levels

MileageTax.jpgIt's been tested in Oregon, pondered in California, Florida, Maine and several other states, applauded in D.C. by the House Transportation Committee, and now pay-per-mile vehicle taxing is becoming a national reality - in the Netherlands.

Yup, the Dutch government has approved a plan to drop vehicle sales and registration taxes and replace them with a tax on every mile - or kilometer, in this case - a car or truck is driven.

The tax also would be variable, based on a vehicle's fuel efficiency and even the time of day the driving takes place.

The variations can be significant - basic tax for a small Renault Twingo will be 1.4 euro-cents per kilometer - that would be 1.4 euros for 100 kilometers ($2.09 for 62 miles), while a powerful Audi A8 would be taxed at about 16.6 euros ($24.76) for the same trip.

That's on top of the Netherlands' $3.50 per gallon gasoline tax and 19 percent value added tax on the total gas purchase.

Boost for EVs?

It is aimed at raising revenue while reducing greenhouse gas emissions and oil consumption by making it more economical to buy the most efficient vehicles and then drive them less often, especially during the morning and evening rush hours.

We're no fan of such taxes - we drive a lot, as do most in the U.S., where average annual passenger car mileage is around 25 percent greater than in Europe - but one benefit for the green movement is that if rates are based on fuel economy as in the Netherlands, they should encourage use of pubic transit and the purchase and use of electric vehicles, which are likely to be taxed at the lowest rates.

The Dutch government expects to see a 15 percent drop in traffic volume, a 7 percent dip in traffic fatalities and the same level of income as today, when it is charging a 40 percent sales tax on new car purchases.

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November 13, 2009

European Law Means Electric Cars Could Speed Climate Change, Group Reports

Tesla-Roadster-EV.jpgThe idea that a wholesale switch to electric cars would automatically reduce CO2 emissions and dependence on oil is one of a number of myths dispelled by a new report.

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The Tesla Roadster EV offers greener motoring than gas-powered cars, but what if we all drove them?
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The report, "How to avoid an electric shock: Electric cars from hype to reality," was conducted by the European lobby group Transport & Environment.

The report found that while there were significant potential environmental benefits to be had from a switch to electric vehicles, these were wholly dependent on changes in the way electricity was generated, energy taxed and carbon-dioxide emissions regulated. Current EU legislation contains loopholes that are likely to lead to emissions and oil use going up.

How could electric cars increase emissions?

Binding EU targets for car CO2 emissions agreed last December include "super credits" that enable carmakers to sell up to 3.5 SUVs for every electric vehicle they sell and still reach their official EU target. Electric cars are also counted as zero-emissions vehicles despite the fact that the electricity they use can come from high-carbon fossil fuels such as coal

The combined effect of these loopholes would be that carmakers that choose to market electric cars to meet EU targets would have to do less to reduce emissions of conventional cars. The overall effect would be higher CO2 emissions and oil use.

According to the report, the most certain way to promote electric-powered transport is to tighten long-term CO2 standards for cars to 80 g/km by 2020 and 60 g/km by 2025 while at the same time increasing fuel taxes. A lack of stringent CO2 standards removes the main incentive for motor industry to invest in electrification.

Electric cars must be rewarded for their energy efficiency, not for moving emissions from exhaust pipes to power station chimneys, the report concluded.

 
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November 12, 2009

Edmunds.com: EPA's Fuel Economy Guide Should Be Based on Cost, Not Mileage

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By John O'Dell and Scott Doggett

(Updated 11/13/09 to correct Chevy Aveo monthly fuel figure.)

"Miles per gallon" made sense when all cars drank gas, or diesel, and that was that.

But with the advent of rechargeable electric vehicles, whether all-electric or plug-in hybrid, the fuel-use scene gets quickly blurred.

How many miles per gallon do you assign to a Nissan Leaf, with a lithium-ion battery and no fuel tank or internal combustion engine?

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Edmunds.com proposes the EPA scrap its mileage-based fuel-economy guide, right, for one built on fuel costs.
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And how does a car shopper compare the Leaf, or any of the other all-electric cars heading our way in the next decade, to a gasoline-burning Honda Fit or a Ford Fusion hybrid or, to complicate things even more, compare any of those cars to a Chevrolet Volt or other extended-range plug-in hybrid that uses gasoline and electricity from the commercial power grid.?

Can't be done - unless the consumer's an electrical engineer with a minor in math.

To make it easier and more accurate for consumers to get honest comparative information, Edmunds.com is proposing to the EPA that it replace the mileage-based fuel-economy stickers it's been putting on new cars since 1975 with stickers that display monthly fuel costs.

That's right, replace MPG with MFC.

Then consumers could see that at 1,250 miles a month, a 2010 Toyota Prius would cost, on a national average, $67 a month at the pump, while an electric Mini E would cost $49 a month to "fill" from a 220-volt charger in the consumer's garage; the monthly gasoline bill for a four-cylinder Chevrolet Aveo would be $11 $111, and a 2011 Chevrolet Volt - running on gas and electricity - would cost $54.

That's information people can use to make informed decisions.

Edmunds.com - our parent - is submitting its recommendation and rationale in a letter being sent Friday morning to the agency and to the Department of Transportation.

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Oil Reserves Much Lower Than Officially Reported, Whistleblower Says

Estimates of reserves by watchdog group are said to be grossly inflated.

Key-oil-figures-were-distorted.jpgThe world is much closer to running out of oil than official estimates admit, according to a whistleblower at the International Energy Agency who claims it has been deliberately underplaying a looming shortage for fear of triggering panic buying.

The senior official claims the United States has played an influential role in encouraging the watchdog organization to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves.

The allegations raise serious questions about the accuracy of the organization's latest World Energy Outlook on oil demand and supply published this week. It is used by many governments to help guide their energy and climate-change policies.

In particular they question the prediction in the last World Economic Outlook, which was repeated again this week, that oil production can be raised from its current level of 83 million barrels a day to 105 million barrels.

External critics have frequently argued that this cannot be substantiated by firm evidence and say the world has already passed its peak in oil production.

A second senior IEA source, who has now left but was also unwilling to give his name, told a British newspaper that a key rule at the organization was that it was "imperative not to anger the Americans" but the fact was that there was not as much oil in the world as had been admitted.

"We have [already] entered the 'peak oil' zone. I think that the situation is really bad," he added.

 
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November 5, 2009

Clunker Program Allowed Some Truck Trades for Less Efficient Vehicles

But Language Permitting Such Trades Was In the Legislation Almost From the StartRustyTruck_Clunkers.jpg

The feds have published a detailed list of trade-ins and purchases under the summer's Cash for Clunkers program and some media have picked up on an item we cautioned about before the program became law.

It allowed owners of some older pickups and vans to trade them in for new trucks with lower fuel economy.

We don't know the details of every one of the 150 or so "worse gas mileage' trades that were made (according to an Associated Press analysis), and some may have been approved in error or even through outright fraud, but they really shouldn't have taken anyone by surprise.

Way back in May, the House Energy and Commerce Committee began considering the "Car Allowance Rebate System" or CARS bill with language that clearly approved of those "worse mileage" trades.

It specified that owners of pre-2002 work trucks could trade them in and get a $3,500 voucher for new trucks in the same or lighter weight classes, with no requirement for improved fuel economy.

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October 30, 2009

Energy Budget is Now Law, Includes $814 Million Funding for Green Vehicles, Fuels


Green-Cars-Dollar-Sign-275x.jpgIn the biggest federal boost for green car development in decades, the 2010 energy budget bill just signed into law by President Obama includes $814 million in funding for various alternative fuel and vehicle programs.

One provision, $283 million for fuel cells and hydrogen fuel, restored more than $100 million that in funds for automotive-specific programs that Energy Secretary Steven Chu initially proposed cutting from the budget.

Chu said at the time he didn't see fuel-cell electric cars as commercially viable in the next 15-20 years.

Automakers and fuel cell developers quickly rallied to persuade Congress that Chu hadn't see the whole picture and promised to have commercial quality fuel cell cars - which use hydrogen for energy production - in the market by 2015.

Other green aspects of the bill include $311 million to help fund various vehicle electrification and advanced internal combustion engine projects and $220 million for advanced biofuel development.

As expected, the bill was cheered by trade groups representing the fuel cell, biofuels and electric drive industries.

 
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October 28, 2009

Debate on Fuel Economy and Greenhouse Gas Emissions Regulation Rages On

Automakers, Green Groups Debate Standards, California's Role at Los Angeles Hearing

By Danny King, Contributor

CO2smoke.jpgCalifornia's efforts to continue imposing more stringent greenhouse gas standards than federal rules require continued coming under fire from industry groups Tuesday as the Environmental Protection Agency held the last of three hearings on implementing proposed national standards for average passenger vehicle fuel economy.

Ford, Toyota, the Association of International Automobile Manufacturers and the Sierra Club were among the groups whose representatives offered a wide range of opinions during the day-long meeting in Los Angeles.

Federal officials are trying to determine how best to reach gas mileage and tailpipe-emissions standards within the next seven years that are about 30% more stringent than they are now.

California, which has authority to set its own standards, is in agreement with the federal proposals through 2016 but already has started working on tougher state standards for 2017 and beyond - a move that automakers oppose, claiming that separate state and federal rules will impose severe economic hardships on an already beleaguered industry.

Looking Forward

So while Tuesday's hearing ostensibly was about present regulations, many in the audience were more concerned with what happens eight years from now.

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October 2, 2009

GAO Calls for Wider Environmental Reviews, Lower Federal Ethanol Subsidy

Congress should require U.S. EPA to consider more widely the environmental effects of biofuels production when deciding which fuels are eligible under the federal biofuels use mandate, according to congressional investigators.

The suggestion is one part of a wide-ranging Government Accountability Office report released today on increased biofuels production. A 2007 law requires the amount of biofuels in the nation's transportation fuels mix to reach 36 billion gallons by 2022.

"For the environment, many experts believe that increased biofuels production could impair water quality -- by increasing fertilizer runoff and soil erosion -- and also reduce water availability, degrade air and soil quality, and adversely affect wildlife habitat," the report states.

"However, the extent of these effects is uncertain and could be mitigated by such factors as improved crop yields, feedstock selection, use of conservation techniques, and improvements in biorefinery processing," it adds. Future increases in use of cellulosic feedstocks -- such as grasses and crop wastes -- can reduce harmful effects, GAO notes.

The 2007 law that boosted the renewable fuels standard requires biofuels to have lower lifecycle greenhouse gas emissions, by varying degrees, than fossil fuels.

But GAO says Congress should weigh amending that law by requiring EPA to more widely assess the environmental effects of increased production. And EPA should use this wider review to determine which fuels qualify under the standard.

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Congress Considering Allocating Energy Department Funds for Green 3-Wheelers

Aptera-from-rear.jpgAptera Motors, Elio Motors and other companies developing fuel-efficient three-wheeled vehicles got a boost from Congress this week in their quest for federal funding.

Legislation to make three-wheeled vehicles eligible for Energy Department loans passed a conference committee of House and Senate leaders Wednesday and then got approval from the full House on Thursday.

It is part of an energy spending bill likely to go before the Senate by next week for final congressional passage, a Senate aide said.

"Obsolete bureaucratic definitions should not create roadblocks and stifle innovation," said Rep. Adam Schiff, D-Calif., who co-sponsored the legislation.

If the Senate passes the bill, it would have to be signed by President Barack Obama to become law.

General Motors Co. has been critical of the bill.

The Department of Energy's Advanced Technology Vehicles Manufacturing Incentive Program is intended for large automakers that make many cars and that have the potential for large gasoline savings, the company has said.

GM spokesman Greg Martin declined comment on the latest development.

GM has applied for three department loans totaling more than $10 billion.

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October 1, 2009

eTec Signs $99.8 Million DOE Contract, Provides Scope of Work, Launches Website

The-EV-Project-logo.jpgArizona-based Electric Transportation Engineering Corp. today signed a $99.8 million contract with the U.S. Department of Energy to join Nissan in the biggest deployment of electric vehicles -- and creation of the largest charging infrastructure -- ever undertaken.

That eTec was earmarked to receive the contract is not news; we reported that in August. But along with news of the signing today, eTec provided further details regarding how it intends to use the money.

In a statement, eTec said the final scope of work will include the deployment of 10,950 Level 2 (220-volt) chargers, 260 Level 3 (440-volt) fast-chargers and 4,700 Nissan LEAF zero-emissions electric vehicles in five states: Arizona, California, Oregon, Tennessee and Washington.

In conjunction with the contract signing, The EV Project (as eTec and Nissan call it) officially commenced today. ETec marked the commencement of the project with creation of the project's official Website.

The Website is designed to provide general information about The EV Project and it provides information about how to purchase a Nissan LEAF and how to apply for a free charger at a home or work.

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September 30, 2009

Top Electric Vehicle Executive at General Motors Leaves to Start EV Consulting Firm

Bob-Kruse.jpgBob Kruse, who recently led a team that played a key role in the development of the Chevrolet Volt and who crafted the automaker's long-term electric-vehicle strategy, has resigned effective today.

Kruse, executive director of global vehicle engineering for hybrids, electric vehicles and batteries since early last year, left to focus on an EV consulting company he founded last month.

He will provide automotive and vehicle electrification expertise for companies looking to seize a piece of more than $1.3 billion in federal grants available to Michigan and Detroit's major automakers.

"My departure from General Motors has nothing to do with my view of the future success for the Volt," Kruse said. "I've left on very good terms. I have a lot of respect for the leadership of General Motors."

GM spokesman Rob Peterson told Green Car Advisor that Kruse's resignation, coming only 13 months before the Volt's scheduled production launch, "won't  have any impact" on the gasoline-electric hybrid sedan.

"There's never a good time to lose good people, but there's a deep bench with the Volt and that team was working together before Bob joined and they will continue to march on," he said.

Kruse's resignation comes at a crucial time for GM, which is banking on the Volt extended-range electric vehicle to help it meet stringent new government fuel-economy rules and to change the public's perception of the company as being an electric-car killer and a proponent of gas-guzzlers.

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September 24, 2009

GM Fuel Cell System With Gen-5 Fuel Cell Stack Could be Commercialized in 2015

GM-Fuel-Cell-stack.jpgThe second-generation hydrogen fuel cell system (pictured) in development by General Motors Co. is half the size, 220 pounds lighter and uses less than half the precious metal of the current generation in the Chevrolet Equinox Fuel Cell electric vehicle.

And, the production-intent fuel cell powertrain can be packaged under the hood in about the same space as a four-cylinder engine, GM announced in a statement today. It contains GM's fifth-generation fuel cell stack, which the company said could be commercialized in 2015.

Hydrogen-powered fuel cells are a few years away from widespread commercial use because of the need for additional investment and partnership, along with expanded availability of hydrogen fueling stations.

In a statement, Charles Freese, executive director of GM's fuel-cell program, said GM has invested more than $1.5 billion in fuel-cell technology and is committed to continuing to invest, but "we no longer can go it alone... We will require government and industry partnerships to install a hydrogen infrastructure."

Through Project Driveway, a demonstration fleet of more than 100 hydrogen-powered fuel cell electric Chevrolet Equinox crossovers has amassed more than 1 million miles of every-day driving by ordinary citizens, celebrities and others since late 2007.

In recent weeks, a consortium of the German government and leading industrial companies has announced plans to build up to 1,000 hydrogen fueling stations by 2015, about the time several automakers expect to have hydrogen fuel cell vehicles for sale. Earlier, a group of 13 oil and gas companies in Japan announced similar plans.

"Failure to act will insure the U.S. cannot meet its long-term fuel efficiency and greenhouse gas reduction objectives," Freese said. "We know what needs to be done. Now is the time to get started."

 
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Electric Vehicle Makers Try to Temper Expectations Ahead of California Rule

Valence-L-ion-Batteries.jpgCalifornia took the pulse of the zero-emissions vehicle industry this week and found plug-in electric vehicle manufacturers worried about charging infrastructure and public expectations.

The California Air Resources Board is hearing from fuel cell and EV manufacturers in preparation for releasing regulations for its Zero-Emissions Vehicle Program. Targets for 2015 and thereafter are due out by Nov. 10, with final targets due by early next year.

In its fifth major revision of the program since 1990, it voted last year to reduce the 2014 sales target from 25,000 to 7,500 vehicles.

A philosophical difference emerged between conventional car manufacturers and electric-only car companies.

Nissan, which is shooting for a 100-mile range for its Leaf EV, is playing down its perks. When asked to compare gasoline-powered and EV batteries, a company executive said not to expect comparable performance.

"Since the battery's not part of the emissions, it's not required to last 10 years and 150,000 miles," said Brian Verprauskus, senior manager of corporate planning for Nissan North America. "The issue's going to be the degradation. If the customer is OK with reduced range after 10 years, it'll definitely last that long, but after 10 years, we think there'll be more advanced batteries and the customer's going to want to swap it out with a next-generation battery."

Tesla Motors, on the other hand, is emphasizing the ways EVs differ from conventional cars. "We're trying to market cars based on the new attributes of EVs themselves," said J.B. Straubel, Tesla's chief technical officer. "It's an offensive technology shift. We can offer some new competitive advantages to customers."

EV manufacturers said the installation of charging infrastructure remained the biggest bottleneck to widespread implementation. BMW, which ran into charging issues with its MINI E pilot program, said the industry needed to agree on a standard for in-home charging infrastructure.

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September 22, 2009

To Outfox the Chicken Tax, Ford Strips Its Fuel-Efficient Transit Connect Vans

Ford-Transit-Connect.jpgWe recently reported that Ford Motor Co. was seeing brisk sales of its 2010 Transit Connect compact vans, and today we discover the fuel-efficient Turkish vehicles must first undergo a strange ritual before they are sent to showrooms.

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Right, a Ford Transit Connect "wagon."
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At least, we think it strange that some of the perfectly fine seats and windows of every Transit Connect that enters the U.S. must be ripped out before the vehicles can be sold or Ford would be in violation of a law that arose during a trade spat 46 years ago.

The "chicken law" takes its name from the high tariffs Europe put on imported chickens during the early 1960 in response to rising U.S. sales of poultry to West Germany.

President Johnson retaliated by targeting German-made Volkswagens with a tax on imports of foreign-made trucks and commercial vans.

As the story in today's Wall Street Journal (subscription required) goes, Europe still has a tariff on imports of U.S. chicken and the U.S. still hits delivery vans imported from overseas with a 25 percent tariff.

American companies have to pay, too, which puts Ford in the weird position of circumventing U.S. trade rules that for years have protected U.S. automakers' market for trucks.

You can read all about Ford's wiggle room, or by using knowing this clue and allowing your imagination to run wild: Just how do customs officials define a "delivery van"?

 
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Fuel-Cell Electric Cars Are Farther Along Than Most People Realize, Industry Says

alifornia Air Resources Board logo.jpg

Automakers addressing California air-quality regulators in Sacramento this week said work on hydrogen fuel-cell electric vehicles (FCEVs) is progressing faster than most people predicted.

Craig Louie, of Canada's Automotive Fuel Cell Cooperation Corp., said cost was still an issue but that vehicles should hit showrooms in "2015ish, not 2020," as a majority of people in the automotive industry have been predicting.

Performance benchmarks are hovering around U.S. Energy Department targets for most metrics, including energy efficiency, power density and start-up and shut-down energy, Louie said. High costs still persist, though.

"If the goal is $30 per kilowatt-hour and everyone's in the $70, $80, $90 range, the goal is really to get the cost down and become competitive with incumbent technologies like advanced diesel powertrain," he said.

Louie made the remarks before the California Air Resources Board (CARB) as it prepares to release proposed regulations for its zero-emissions vehicle program for 2015 and beyond, with final regulations due by early next year.

Hydrogen FCEVs use an on-board fuel cell stack to convert hydrogen and oxygen to electricity that powers an electric drive system. The only emissions FCEVs give off is a small amount of water and heat.

In its fifth major revision of the program since 1990, CARB voted last year to reduce the 2014 sales target from 25,000 to 7,500 vehicles.

Monday in Sacramento, CARB officials heard from fuel cell manufacturers, trade groups and car companies on the state of technology and barriers to commercialization.

Several manufacturers cited the bipolar plates that conduct electricity away from the cells as a kink in the process. Another component ripe for improvement is the hydrogen storage tank, which is currently made of stainless steel and impregnated with fibers for durability, a time-consuming process.

But just because fuel-cell systems are still too expensive doesn't mean federal and private investors should pull the plug, said Jack Gatzuras, business development manager at UTC Power. Indeed, as a zero-emissions fuel source, it must be pursued, he said.

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Study: Clunkers Programs Should Use Fuel Economy, Not Age for GHG Reductions

Clunkers.jpgFrom the isn't-it-obvious file: A university study has concluded that a cash-for-clunkers program ought to use fuel economy rather than vehicle age in determining a car or truck's eligibility for the scrappage program if its goal is reduced greenhouse-gas emissions.

Well, duh. Your Green Car Advisor has said that on a number of occasions, including a posting way back in June.

But the study conducted by the University of California at Davis, which is home to a highly respected electric-vehicle research program, contains findings that will surprise many well-informed people.

For instance, the study concluded that because the greenhouse-gas emissions associated with vehicle manufacturing, materials production, and scrapping equal roughly 10 to 15 percent of a vehicle's lifecycle emissions, any program that seeks to reduce GHG emissions through scrappage should seek to save more GHG emissions than this amount.

The study also found that the majority of cash-for-clunkers programs -- there have been many worldwide over the past 30 years -- last on the order of months rather than years, attempting to quickly and efficiently remove a set of target vehicles. For example, the recently ended U.S.  program was originally scheduled to end after four months or after $1 billion funding was spent, whichever came first.

The short timeline prompted vehicle owners to act so quickly that the funding was spent after four days. However, the study's authors concluded, a long-term scrappage program may be more suitable to GHG reductions because with such a program policymakers could "send a clear, long-term signal" to automakers to produce more fuel-efficient vehicles.

The study recommends that policymakers, when proposing a clunkers program, consider 4- to 6-year vehicle product planning, design and introduction cycles where major retooling of
automobile plants is needed.

"Such longer-term programs could actually induce technology changes," the study found.

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September 18, 2009

Study: U.S. Subsidies for Fossil Fuels Are More Than Twice Those for Renewables

Oil-rig.jpg

The vast majority of U.S. federal subsidies for fossil fuels and renewable energy from 2002-2008 supported fossil energy sources that emit high levels of greenhouse gases when used as fuel, according to research released today by the Environmental Law Institute in partnership with the Woodrow Wilson International Center for Scholars.

Applying a conservative approach, the respected organizations found that the U.S. government provided substantially larger subsidies to fossil fuels than to renewable fuels.

Subsidies to fossil fuels -- a mature, developed industry that has enjoyed government support for many years -- totaled approximately $72 billion over the study period, representing a direct cost to taxpayers.
 
Over the same period, subsidies for renewable fuels -- a relatively young and developing industry -- totaled $29 billion, the study found. What's more, of the $29 billion, more than half -- $16.8 billion -- went toward corn-based ethanol, the climate effects of which are hotly disputed.
  
The study also found that most of the largest subsidies to fossil fuels were written into the U.S. Tax Code as permanent provisions. By comparison, many subsidies for renewables were time-limited initiatives implemented through energy bills, with expiration dates that limit their usefulness to the renewables industry.

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September 17, 2009

House Passes $2.90 Billion Bill for Advanced Technology Vehicle Research

Congress-925x1200.jpg

Targeting more federal money to support the auto industry, the House on Wednesday approved an expansion of government-led research into making cars and trucks more fuel-efficient.

The House plan would allow the Energy Department to spend up to $200 million more each year on research and development for advanced-technology vehicles and auto parts.
 
Lawmakers' aides said the additional $200 million would boost government-supported research in this area to around $550 million if Congress, as expected, funds the request later this year.

The measure passed on a 312-114 vote, attracting dozens of Republican votes, even though some GOP lawmakers questioned its cost.

Wednesday's House action represented the latest move by Congress and the Obama administration to aid the auto industry. The White House stepped in with billions of dollars to rescue General Motors and Chrysler and led the companies through bankruptcy, and Congress approved $25 billion last year to help the industry retool assembly plants to meet tougher fuel economy standards.

Congress also created a $3 billion Cash for Clunkers program of incentives that successfully spurred new car sales over the summer.

Fuel-efficient technology is in great demand because of higher gasoline prices and the expectation of tightening auto regulations. Administration officials on Tuesday released plans to raise the gas mileage standards to 35.5 miles per gallon by 2016 and link greenhouse-gas emissions and fuel-economy requirements.

Democratic Representative Gary Peters of Michigan, who sponsored the green vehicle technology bill, said "there is no doubt that in the years ahead more Americans will be driving hybrids, plug-in hybrids, battery electric vehicles, and cars and trucks powered by hydrogen fuel cells."

"The only question is whether these new technologies will be researched, developed and manufactured here in the United States, creating American jobs, or whether this technology will be built overseas," Peters said.

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September 15, 2009

Frankfurt Auto Show: O'Donnell: BMW Will Fit U.S. Cars With 4-Cylinder Engines

BMW-USA-Chair-Jim-O'Donnell.jpgBMW plans to offer four-cylinder gasoline engines in the United States in an effort to meet stricter fuel economy rules, a company executive said today.

Introduction of the powerplants, equipped with the automaker's next-generation twin turbochargers, "is the goal and we will do it," Jim O'Donnell (pictured), chairman and CEO of BMW of North America, said on the sidelines of the Frankfurt Motor Show,  subscription-based Automotive News reported.

O'Donnell said the engines will allow the automaker to reach U.S. fuel-economy targets before 2015. Under federal guidelines proposed today, automakers will have to improve the fuel economy of their fleets by 5 percent annually before a national standard of 35.5 mpg takes effect in the 2016 model year.

BMW will add a four-cylinder variant for its next 3 series in the United States by spring 2012, O'Donnell said. The automaker already equips its European 3 series with four-cylinder gasoline and diesel engines.

BMW also is considering adding four-cylinder gasoline engines to its X1 and X3 crossovers and 1-series model in the United States.

In Europe, the X1 will be available with a four-cylinder, twin-turbo diesel engine when it launches this fall. The X3 and 1 series also are offered with four-cylinder gasoline and diesel engines in Europe.

"We see potentially a significant market that could get to 100,000 four-cylinder engines" in the United States, O'Donnell said.

 
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Obama Administration Unveils New Fuel Economy Rules for Cars and Trucks

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The Obama administration today released its proposed regulations to require higher efficiency standards for cars and trucks and decrease greenhouse-gas emissions, following up on the president's initial announcement of this in May.

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Right, President Obama meeting with UAW workers at a GM plant in Ohio today.
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The plan calls for a new average fuel efficiency standard of 35.5 miles per gallon by 2016 for new vehicles, which EPA Administrator Lisa Jackson said would reduce oil consumption by an estimated 1.8 billion barrels and save consumers more than $3,000 in fuel costs.

"The program we're proposing today would bring our nation a step closer to a future where the vehicles we drive actually help us to solve our energy and environmental challenges," Secretary of Transportation Ray LaHood said at the White House today.

President Obama said at a General Motors plant in Ohio today that the plan "creates an even playing field" for the automobile industry, which he said "faced uncertain and conflicting fuel economy standards."

"It's an action that is long overdue," he said in Lordstown, Ohio. "It will give our auto companies clarity and stability and predictability."

The National Resources Defense Council applauded the proposed regulations, calling it "unprecedented" and a "historic proposal moves America further down the road to cleaner, more fuel-efficient vehicles."

Jack Gillis, representing the Consumer Federation of America, a non-profit association of more than 280 pro-consumer groups, said in a statement that the new rules "are not only a victory for the consumer; they are also a win for the overall economy, national security, and the environment."

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September 14, 2009

Aptera Loan Application Fuels Debate Over Whether Electric 3-Wheeler Is a Car

Aptera-2e-cruising.jpgThe maker of the all-electric three-wheeled vehicle called the 2e (right), which is slated to enter production in coming weeks, wants Washington will view the vehicle as an automobile for the purposes of federal funding.

However, Aptera also wants the federal government to continue to classify the 2e as a motorcycle for the purposes of crash testing. That's because the government does not require motorcycles to pass vigorous crash tests as it does vehicles classified as automobiles.

The 3-year-old closely held company located in Vista, California, wants to borrow $75 million from a Department of Energy program created by Congress in 2007 to speed development of fuel-efficient cars.

But the DOE ruled last year that the plug-in electric 2e didn't qualify under the $25 billion loan program. A three-wheeled vehicle doesn't meet the definition of an automobile under federal law as being "any 4-wheeled vehicle," according to a letter to Aptera last December from Lachlan Seward, the loan program's director.

"We were dismayed," Paul Wilbur, Aptera's chief executive, told The Wall Street Journal in an article published today. Wilbur said the absence of a fourth wheel was critical to maximizing the vehicle's aerodynamics.

Aptera's backers include some big-money donors to the Democratic Party, and its quest for help has received a boost from a group of mostly California lawmakers who want to help a home-state enterprise. Allies of Detroit's big automakers are lined up against them.

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'Clunkers' Improved Overall Fuel Economy in U.S. Less Than 1 MPG, Study Finds

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Researchers at the University of Michigan say the American cash-for-clunkers program improved the average fuel economy of all vehicles purchased in the U.S. by 0.6 miles per gallon in July and 0.7 mpg in August of this year.

As you'll recall, from July 27 through August 24, the government-sponsored a vehicle-scrappage program officially called the Car Allowance Rebate System and informally referred to as the cash-for-clunkers program gave buyers a rebate when they traded in a vehicle while purchasing a new one.

Generally, the trade-in vehicles must have had fuel economy of 18 mpg or less and be less than 25 years old.  The rebate was either $3,500 or $4,500, depending on the difference between the fuel economy of the new and the trade-in vehicles.

Overall, about 690,000 vehicles were purchased (and traded in) under the program, according to the U.S. Department of Transportation. This compares to a total of about 2,260,000 vehicles sold in July and August 2009.

To estimate the benefits of the program on the overall fuel economy of the light-duty vehicles purchased, Michael Sivak and Brandon Schoettle of the University of Michigan's Transportation Research Institute calculated the expected fuel economy of purchased new vehicles without the program.

To do this, they used the relationships between economic indicators and the fuel economy of purchased vehicles that they obtained during research they did earlier research. In that study, the fuel economy of purchased new vehicles in a given month was reasonably well predicted by knowing the corresponding unemployment rate and the price of gasoline.

In the just-concluded study, they used the same approach to predict the fuel economy for July and August of 2009 without the program, and compared this baseline prediction with actual fuel economy observed for the same months. A step-by-step account of their work, complete with tables and charts, can be viewed at a University of Michigan Website.

Neither of the study's authors discussed whether the slight improvement in average fuel economy that resulted from the clunkers program justified its cost to American taxpayers.

However, another study concluded the program was a very expensive way to reduce carbon-dioxide emissions. Sivak and Schoettle's work seems to support the earlier study.

 
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September 8, 2009

Chu Says He'll Stop Push to Cut Hydrogen-Car Funding, Will Work With Lawmakers

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Energy Secretary Steven Chu will no longer seek to kill Energy Department research and development of hydrogen-powered cars, a bid Congress has rebuffed, and instead will work with lawmakers to ensure the money is "invested wisely," he said today.

The fiscal 2010 spending bills approved in the House and Senate would continue funding for the programs. "Given the reality of that, I think it would be foolish if I next year said, 'No, I'm still going to insist.' They are going to stick it back again," Chu told the subscription service E&E News.

He spoke after addressing students at Thomas Jefferson High School for Science and Technology in Alexandria, Virginia. "We will do the best we can to make sure the funds are invested wisely," Chu said.

DOE's fiscal 2010 budget request chopped $100 million of funding from hydrogen research and steered it away from vehicles. Chu, in rolling out the proposal, said vehicles face a number of barriers around storage, infrastructure and other issues. The plan would continue support for stationary fuel-cell applications.

"We asked ourselves, 'Is it likely in the next 10 or 15, 20 years that we will convert to a hydrogen car economy?' The answer, we felt, was 'no,'" Chu said in May, and instead emphasized other technologies to curb oil use like biofuels and electric vehicles.

But Chu today said there is also common ground with the lawmakers. "I still think -- in fact, many of the people who restored the funding agree with me -- that the first applications will be in stationary fuel cells," he said, according to E&E News.

"So we will do that, but then, if you want to have it [hydrogen] in automobiles, there is a hydrogen storage problem, there is a hydrogen production problem, as well as a fuel cell problem," he added.

"Fuel cells is actually the more mature, and so we will try to do our best to say, 'OK, if the goal is to try and get them into vehicles, let's design a program to actually try and do that as best we can,' rather than saying, 'I disagree with them.'"

 
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August 31, 2009

Calif. Gives eTec $8 Million for Electric Vehicle Charging Infrastructure for San Diego

eTec-logo.jpgArizona-based Electric Transportation Engineering Corp. today announced receipt of $8 million from the government of California to aid in development of an electric-vehicle charging infrastructure for San Diego.

The same company earlier this month landed a $99.8 million grant from the Obama administration to join Nissan in the biggest deployment of EVs - and creation of the largest charging infrastructure - ever undertaken.

The $8 million from the California Energy Commission is among the roughly $15 million in funds the agency is in the process of awarding to EV projects that received federal funds from the U.S. Department of Energy on Aug. 5.

With the two grants and others it expects to get from regional project participants, eTec has pledged to install about 2,550 charging stations in each of five selected markets: the states of Tennessee and Oregon, the cities of San Diego and Seattle, and the Phoenix/Tucson region.

Those approximately 12,750 charging stations will be used to recharge up to 1,000 LEAF EVs  that Nissan will provide for each of the five markets, for a total contribution of up to 5,000 EVs.

Whether the zero-emissions vehicles will be donated, leased or sold by the automaker has not been determined, according to a Nissan source familiar with the collaboration.

In a statement released today, eTec said its project will collect and analyze data characterizing vehicle use and charging patterns in diverse topographies and climate conditions; evaluate the effectiveness of charge infrastructure; and conduct trials of various revenue systems for public charge infrastructure.

By testing and analyzing electric vehicle usage and charging patterns in a simulated mature charging environment, eTec hopes the project will foster the expansion of the EV infrastructure and widespread EV use throughout the country.

ETec is a subsidiary of ECOtality, a Scottsdale, Arizona, company that has been involved in every major electric vehicle initiative in North America since the 1990's. ETec is known for its  Minit-Charger line of battery fast-charge systems for on-road EVs. 

 
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August 26, 2009

Air Line Pilots Association Seeks Ban on Lithium-ion Battery Shipments on Jetliners

Battery-free-aircraft.jpgBy Scott Doggett, Contributor

An airline pilots union is calling for a government ban on shipments of lithium batteries aboard passenger and all-cargo planes after a series of fires in recent years involving aircraft.

This development might have an adverse affect on electric vehicles and most hybrid vehicles because lithium batteries are widely regarded as the best type to propel the vehicles.

At the very least, reports of a link between lithium batteries and fires aboard aircraft won't help public perception that such batteries are safe.

Batt-tied-plane-fires.jpgIn statement released Tuesday, the Air Line Pilots Association said that federal regulators have been slow to act on the issue and that "the evidence of a clear and present danger is mounting."

The ban would not apply to devices containing batteries brought aboard by passengers, but as you can read in the adjacent boxed text, there has been at least one instance of a passenger reporting that his laptop computer was emitting smoke.

Since March of last year, six fires have been reported on board passenger and cargo jets linked to lithium-based batteries, according to the Federal Aviation Administration. None of the incidents resulted in deaths or serious injuries.

In a recent letter sent to Cynthia Douglass, acting deputy administrator of the Pipeline and Hazardous Materials Safety Administration, Captain John Prater, head of the pilots' union, pointed to three recent incidents as proof positive of the urgent need to prohibit lithium-battery shipments.

During just the past two months, fire, smoke, or evidence of fire associated with battery shipments has occurred aboard three separate U.S. airliners, he wrote in the letter.

The incidents, which took place in Minneapolis/Saint Paul, Minnesota, Santo Domingo, Dominican Republic, and Honolulu, Hawaii, were similar to a 2006 battery fire aboard a DC-8 in Philadelphia, he wrote.

Continue reading...

 
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August 21, 2009

Though They've Reached the End of the Road, In a Way Life Goes on for Clunkers

ClunkerRIP.jpgThere's nothing pleasant about the end of the road for a Clunker.

It idles one minute, unleashes a death rattle the next, then slips away as a lethal dose of liquid glass hardens engine arteries till they seize.

The lifeless vehicle is then auctioned off to the highest bidder - a person whose role mimics that of the wretch who buys fresh corpses to sell piecemeal to sickly people needing healthy organs.

The actual harvesting is done by specialists, surgeons if you will, whose job is to leave no transplantable part on the operating table, so to speak.

What remains of the auto body after harvesting then undergoes a Soylent Green-like process: The body is processed so that other bodies may live.

Enough with the analogy. For more on what is happening to all the Clunkers, read this story in today's Washington Post.

Here's another scrap-metal story we hope you like:

After the Vietnam War, some Vietnamese merchants located unexploded bombs dropped from U.S. planes, removed their detonators and explosives, and sold what remained of the bombs to Japanese steel mills, which in turn melted down the bombs and provided raw steel to Japanese automakers and parts suppliers.

As a result, it's probable that there are former U.S. Air Force pilots driving around in Toyotas and Hondas containing steel from bombs they dropped on 'Nam during the Johnson and Nixon administrations. 

 
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August 20, 2009

Cash-for-Clunkers Funding to End Monday Night, Transportation Department Says

CARS-timeframe.jpgThe Obama administration plans to cut off dealer funding for the cash-for-clunkers program on Monday night after finding that the $3 billion fund is nearing depletion, Transportation Secretary Ray LaHood said.

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CARS' original timeframe had the program ending November 1.
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"This program has been a lifeline to the automobile industry," LaHood said in a statement today.

The Transportation Department said today that dealers had applied for $1.9 billion in rebates for voucher payments made to customers.

Government surveys have also sought to determine how large a stockpile of transactions remain unclaimed by dealers.

In a related development, President Obama said today that there have not been "extraordinary delays" in the processing of dealers' cash-for-clunkers claims and that the government has to be scrupulous in reviewing them to avoid fraud.

"This is actually a high-class problem to have -- that we're selling too many cars too quickly, and there's some backlog in the application process," Obama said in a radio interview released by the White House.

Many dealers have complained that they're not getting paid on claims filed as far back as July 27, when the program formally began.

Some have said they're owed government rebates that stretch into the millions of dollars for payments to customers, and that the delays are causing cash-flow problems.

Meanwhile, General Motors Co. announced that will help cash-strapped dealers waiting for clunker rebates by advancing them a 30-day interest-free loan in the amount of rebates that are being processed.

GM said it is providing the money so dealerships will have the liquidity to run their businesses and continue to deliver vehicles to GM customers.

"Our sales performance in the past two months has exceeded our internal forecast by over 60,000 vehicles, largely driven by the CARS stimulus program," Mark LaNeve, GM vice president of U.S. sales, said in a statement.

"We want to do all we can to provide customers with timely new-vehicle deliveries and dealers the liquidity they need to run their businesses," he added.

 
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August 19, 2009

Massachusetts Moves to Ban All Biofuels Not Made From Waste Feedstocks

Seal-of-Massachusetts.jpg

The state of Massachusetts announced today that it intends to ban all biofuels not made using waste feedstocks from qualifying under the state's Clean Energy Biofuels Act of 2008.

The state said that the biofuels mandate will begin July 1 of next year and that mandated volumes would be waived in the first year but that "early action credits" will be provided for all gallons of qualified advanced biofuels, which will be applied to second-year mandate obligations.

And, the state said that its Department of Energy Resources, or DOER, will announce by the end of next year whether the second-year biofuels mandate will be set at the 2 percent or 3 percent level.

But in a surprise move, DOER said that it "will only accept applications for biofuels derived from waste feedstocks," and only then if they yield a 50 percent greenhouse-gas reduction threshold.

Under the proposed regulation, Massachusetts will ban the use of all non-waste feedstocks, which include algae, cyanobacteria, jatropha, miscanthus and switchgrass, or oils produced on a harvestable basis by microorganisms, such as employed by Joule Biotechnologies.

Curt Felix, chief executive of Wellfleet, Massachusetts-based biofuels company Plankton Power, said the DOER ruling guts the state's biofuels act and directly opposes the intention of the state's legislature and its governor.

"DOER has made impermissible all but waste restaurant oil as a biofuel feedstock in the Commonwealth of Massachusetts for compliance with the law," he said. "The ruling means that algae fuels and other 'non-waste' feedstocks that clearly meet the legal requirements of the biofuels law will not be allowed to be sold as qualifying product."

That's the way we see it, too.

Moreover, DOER's ruling that the emissions from renewable fuels have to be 50 percent cleaner than petroleum's creates an enormously high threshold that would likely disqualify many good biofuels.

And the 50-percent ruling is completely unrealistic. As Felix put it, "Why not require that next year petroleum has to lower its carbon emissions by 50 percent?"

 
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August 17, 2009

Summer of Algae Continues With Major Developments in Calif., New Mexico & U.K.

Biofuel-production.jpgAs the summer of algae continues, start-up Aquentium has announced a 475-acre project in New Mexico, Waxman-Markey climate bill co-sponsor Edward Markey has declared the legislation will generate $1 trillion in private-sector investment, and British Petroleum has plunked down $10 million in green-diesel R&D.

In New Mexico, Aquentium announced today that it has secured 475 acres in New Mexico for the development of an algae bio-fuel production facility. The company is developing green crude, and noted the potential of brackish or salt-water to host algae without disclosing the strains that it will focus on.

In Alameda, California, while touring the Aurora Biofuels laboratory, House Energy Independence and Global Warming Chairman Ed Markey described Aurora's technology as  "very exciting," adding that "with a little bit of luck, we'll pass this legislation later this year and create a marketplace for technologies like this."

Unsatisfied with that remark, Markey also predicted: "Our legislation will unleash more than a trillion dollars' worth of private-sector investment." It's wishful thinking, to be sure, but wouldn't it be nice.

And in the United Kingdom, British Petroleum and Martek have agreed to use Martek's core algae technologies as a platform for the production of diesel from microbes.

According to reliable sources, BP will invest $10 million in the research and development of Martek's technologies and will own all intellectual property that results from the R&D. BP's interest in the research being strictly "green" diesel.

For its part, Martek will have an exclusive license to apply the technology in the fields of nutrition, cosmetics, and pharmaceuticals.

 
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August 14, 2009

'Clunkers' Program Is Exorbitant Way to Cut Carbon Emissions, Economist Says

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A respected economist says the federal government's cash-for-clunkers program is paying at least 10 times the "sticker price" to reduce emissions of the greenhouse gas carbon dioxide.

While carbon credits are projected to sell in the U.S. for about $28 per ton (today's price in Europe was $20), even the best-case calculation of the cost of the clunkers rebate is $237 per ton, according to University of California transportation economist Christopher Knittel.

When burned, a gallon of gasoline creates roughly 20 pounds of carbon dioxide. Knittel combined that known value with an average rebate of $4,200 and a range of assumptions about the fuel economy of the new vehicles purchased and how long the clunkers would have been on the road if not for the program.

He even assumed drivers didn't change their habits, although some analysts have suggested that the owners of new vehicles will drive more than they would have with their old cars.

In the end, Knittel concluded that the lowest cost to remove one ton of carbon from the environment was $237.

"More likely scenarios produced a cost of more than $500 per ton, even when we accounted for reductions in pollutants other than greenhouse gases," he said in a statement issued Thursday. "That suggests the cash-for-clunkers program is an expensive way to reduce carbon."

Knittel did not analyze the program's other key objectives: stimulating the economy and providing relief for automobile manufacturers.

Knittel is an associate professor and chancellor's fellow in the UC Davis Department of Economics, a faculty associate at the UC Davis Institute of Transportation Studies, and the policy and business strategy leader of the Sustainable Transportation Energy Pathways Program at UC Davis.

 
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August 5, 2009

Grant Will Support Largest EV Deployment and Charging Infrastructure Ever

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Perhaps the most notable of the stories within a story stemming from today's $2.4 billion grants announcement is the $99.8 million the Obama administration awarded to a little-known company that, together with Nissan, has pledged the biggest deployment of electric vehicles - and creation of the largest charging infrastructure - ever undertaken.

With the grant and matching funds provided by regional project participants, Phoenix-based Electric Transportation Engineering Corp., or eTec, has pledged to install about 2,500 charging stations in each of five selected markets: the states of Tennessee and Oregon, the cities of San Diego and Seattle, and the Phoenix/Tucson region. Nissan-LEAF-frontleft.jpg

Those approximately 12,500 charging stations will be used to recharge up to 1,000 LEAF EVs  (pictured) that Nissan will provide for each of the five markets, for a total contribution of up to 5,000 EVs. Whether the zero-emissions vehicles will be donated, leased or sold by the automaker has not been determined, according to a Nissan source familiar with the collaboration.

The project will: collect and analyze data from vehicle use in diverse topographies and climate conditions; evaluate the effectiveness of the charging infrastructure; and, conduct trials of various revenue systems for the infrastructure.

As for eTec, it's a subsidiary of ECOtality, a Scottsdale, Arizona, company that has been involved in every major electric vehicle initiative in North America since the 1990's. ETec is known for its  Minit-Charger line of battery fast-charge systems for on-road EVs.  

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Detroit 3, Battery Makers Get Largest Cut of $2.4 Billion in EV Development Grants

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President Obama announced the winners today of $2.4 billion in stimulus grants aimed at spurring the development of electric vehicles and the advanced batteries they need - with Detroit's Big Three securing more than $400 million for plug-in projects.

The cash was divvied up among 48 projects in 25 states, with General Motors Corp., Ford Motor Co. and Chrysler Group LLC together grabbing some of the biggest grants. Still, the Big Three's tally was less than the combined haul of battery makers Johnson Controls Inc. and A123 Systems Inc., who together took home nearly $550 million.

"If we want to reduce our dependence on oil, put Americans back to work and reassert our manufacturing sector as one of the greatest in the world, we must produce the advanced, efficient vehicles of the future," Obama said at an event in Elkhart, Indiana, the hard-hit town he visited six months ago to drum up support for the $787 billion economic stimulus package.

The announcement comes as the administration continues its push to convince the public that the stimulus package has been a success, despite poor employment figures and other economic data showing a less than robust economic revival. As part of the grant rollout, Vice President Joe Biden was scheduled to speak in Michigan and Energy Secretary Steven Chu in Charlotte, N.C., later today.

The $2.4 billion is divided into three separate programs aimed at enticing U.S. manufacturers to produce more plug-in hybrid electric vehicles and the components and infrastructure that will support them. The first $1.5 billion is to help companies produce highly efficient batteries for plug-in hybrids and all-electric cars and trucks; $500 million is for the production of other necessary components, such as electric motors; and the final $400 million is for demonstration projects that evaluate electric infrastructure concepts.

Unlike the separate $25 billion Energy Department loan program aimed at helping retool U.S. manufacturing plants to produce more fuel-efficient vehicles, the stimulus grants do not need to be repaid. The winners do, however, have to match the federal cash with their own investments, mostly on a one-to-one basis.

GM received the largest haul of the major carmakers, receiving three separate grants totaling $241.4 million, most of which was earmarked for the high-volume production of battery packs for the company's plug-in Chevy Volt and for the deployment of a 600 strong demonstration fleet.

Ford received two separate grants, totaling $92.7 million, a third of which will go toward a commercialization project with 15 electric utility companies. Chrysler received one grant for $70 million to develop and deploy 220 advanced plug-in pickups and minivans.

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Obama Administration to Award $2.4 Billion Today to Advance EV Development

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The Obama administration today will award $2.4 billion in grants to 48 projects that promote advanced battery and electric vehicle manufacturing, according to administration officials.

The grants are designed to boost U.S. manufacturing jobs in an industry that has so far seen the leading technology come from Japan and elsewhere in the Far East.

"Today, almost all of these technologies are overseas," said Matt Rogers, a senior adviser at the Energy Department. "These are really about creating manufacturing capabilities in the United States."

The Electric Drive Vehicle Battery and Component Manufacturing Initiative was funded by the $787 billion American Recovery and Reinvestment Act. The funds are to advance and lower the cost of technologies, such as lithium-ion batteries, necessary to commercialize electric and plug-in hybrid vehicles.

President Obama has pledged to have 1 million plug-in hybrids on U.S. roads by 2015.

Only one in every five applications won funding, representing about a third of the total dollar amounts sought, said Rogers. While one-fifth of the funds went to small businesses, a number of major auto manufacturers will also benefit.

Twenty-five states will see money from the pool, with the most going to Michigan, followed by Indiana. Eleven and seven projects, respectively, will be funded in these two states, where unemployment has soared as the auto industry licks its wounds.

Information about specific project winners, dollar amounts and jobs created will be released today, Rogers said. One of the applicants is a struggling Chrysler LLC, which plans to develop
a plug-in hybrid version of its Dodge Ram pickup truck.

The money is divided into three pools: $1.5 billion will go toward expanding battery and battery component production, as well as recycling capabilities; $500 million will be for manufacturing electric drive and power electronic components; and $400 million will help purchase and test thousands of plug-in hybrid and all-electric vehicles, install vehicle charging infrastructure, and provide education and work force training.

The administration plans to roll out the funds as part of today's full-court press highlighting the economic recovery.

Continue reading...

 
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August 4, 2009

Cash-for-Clunkers' Effect on Air Pollution? Barely a Blip, Climate Experts Say

The-horror-the-horror.jpg Compared to overall carbon-dioxide emissions in the U.S., the pollution savings from the absurdly popular and taxpayer-funded cash-for-clunkers program do not noticeably move the fuel gauge, climate experts told The Associated Press in an article published today.

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The horror, the horror: Despite all of the hoopla, C4C does little to effect climate change.

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The experts told the news service that the program - which was conceived to stimulate the economy, jump-start the auto industry and a curb the amount of automotive greenhouse gases entering the Earth's atmosphere - is not a good way to attack climate change.

"As a carbon-dioxide policy, this is a terribly wasteful thing to do," said Henry Jacoby, a professor of management and co-director of the Joint Program on the Science and Policy of Global Change at MIT. "The amount of carbon you are saving per federal expenditure is very, very small."

Officials expect a quarter-million gas guzzlers will be junked under the original $1 billion setaside by Congress - money that is now all but exhausted.

Calculations by The AP, using Department of Transportation figures, show that replacing those fuel hogs will reduce carbon-dioxide emissions by just under 700,000 tons a year. While that may sound impressive, it's nothing compared to what the U.S. spewed last year: nearly 6.4 billion tons (and that was down from previous years).

That means on average,  every hour, America emits 728,000 tons of carbon dioxide. The total savings per year from cash for clunkers translates to about 57 minutes of America's output of the chief greenhouse gas.

Likewise, America will be using nearly 72 million fewer gallons of gasoline a year because of the program, based on the first quarter-million vehicles replaced. U.S. drivers go through that amount of gas every 4 1/2 hours, according to the Department of Energy.

Continue reading...

 
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Biden Reportedly to Announce Recipients of $2 Billion in Stimulus Battery Grants

Joseph Biden.jpg

Vice President Joe Biden (pictured) will announce the first round of $2 billion in federal battery research grants during a speech in Detroit Wednesday, according to a report in today's edition of The Detroit News.

As part of the $787 billion stimulus package approved in February, Congress agreed to include $2 billion in battery research grants.

Development of advanced batteries remains the last big technological hurdle preventing mass production of affordable, highway-capable electric vehicles.

Unlike the $25 billion advanced vehicle-retooling program, the grants for battery research do not have to be repaid.

Ed DeSeve, the president's special advisor on the stimulus program, said on July 21 that an announcement on the first round of battery grants would happen shortly. But he declined to say which automakers, suppliers or battery companies might be receiving the grants.  

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DOE to Award More Than $41 Million to Biofuel, Fusion and Smart Grid R&D

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Energy Secretary Steven Chu (pictured) announced today that more than $327 million in new funding from the American Recovery and Reinvestment Act will go toward scientific research, including more than $41 million to biofuel, fusion and smart-grid research and development.

The biofuels research could directly influence America's dependence on oil by shifting motorists' need for a petroleum-based fuel to a fuel that doesn't produce greenhouse gases and contribute to climate change.

The smart-grid and fusion research could indirect benefit "green" cars by providing a clean source of electricity for electric and hybrid-electric vehicles (most electricity produced in America today is generated by burning coal).

The complete list of award recipients includes:

Lawrence Berkeley National Laboratory, in Berkeley, California: $11 million for fusion energy research; $4 million for new instrumentation at the DOE Joint BioEnergy Institute; and $875,000 for mathematical analysis related to the development of smart-grid technology.

Princeton Plasma Physics Laboratory, in Princeton, New Jersey: $8.8 million for a variety of initiatives in fusion energy research and $5 million for infrastructure improvements at the laboratory.

Oak Ridge National Laboratory, in Oak Ridge, Tennessee: $5.4 million for equipment at the DOE BioEnergy Science Center; and, $180,000 for fusion energy research.

Pacific Northwest National Laboratory, in Richland, Washington: $867,000 for mathematical analysis related to the development of a smart grid.

Argonne National Laboratory, in Argonne, Illinois: $5.6 million for improvements at the Advanced Photon Source.

Lawrence Livermore National Laboratory, in Livermore, California: $810,000 for fusion energy research.

Sandia National Laboratories, in Sandia, New Mexico, and Sandia, California: $688,000 for mathematical analysis related to the development of a smart grid; and $75,000 for fusion energy research.

In March, Chu announced $1.2 billion in DOE Office of Science Recovery Act projects. In July, he announced a new Office of Science Early Career Research Program to be funded with $85 million in Recovery Act funds.

With this third and final round of projects, the Obama administration has now approved projects covering the full $1.6 billion that the DOE Office of Science received from Congress under the Recovery Act.  

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Sales of Engine Killer Brisk as Dealers Comply With Cash-for-Clunkers Requirement

pile-of-clunkers.jpg

Ever since the federal government flagged it as the agent of death for old cars turned in under its cash-for-clunkers program, the chemical sodium silicate has seen a huge upswing in demand as eager mechanics have begun "killing" motors across the country.

To receive federal funds, auto dealers must make certain the engines of cars turned in do not return to the road. To do so, a sodium silicate solution is poured into the engine, replacing its oil.
 
Soon after the engine is turned on, the chemical - consisting largely of common ingredients like salt and sand - causes the motor to seize up within minutes.

Across the country, auto mechanics are vying for the chance to kill car engines, according to a report in today's Wall Street Journal (subscription required).

At Jim Clark Motors in Lawrence, Kansas, the dealer has timed how long the chemical takes to seize an engine. It took just two minutes for a 2002 Ford Windstar to die, and just a few seconds more to kill a 1999 Jeep. However, a 1988 Dodge van lasted for more than six minutes.

"Sometimes those old engines, they're the hardest to kill," said Loris Brubeck Jr., the dealership's president.

Manufacturers have plenty of sodium silicate available, but the government failed to warn chemical distributors of the approaching demand, said John See, the owner of ChemistryStore.com near Columbia, S.C.

"It's like the government decided to put every old car in America in mothballs without giving any heads up to mothball" suppliers, he told the Journal.

Typically, See's business sells 150 gallons of sodium silicate a year. Once he saw the federal mandate for the chemical, however, he bought a prominent ad spot on Google and the orders have rolled in. Last week, his firm sold 4,600 gallons of sodium silicate, he said.  

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August 3, 2009

DOT Secretary: Unless Senate Approves Extra $2 Billion, Clunkers Program Will End

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U.S. Transportation Secretary Ray LaHood said the Cash for Clunkers program that's become the most visible of the Obama administration's economic-stimulus efforts would come to an end possibly as early as this week unless the U.S. Senate approves $2 billion in additional funding for the program.

"If we don't get the $2 billion from the Senate...we would have to suspend the program next week," LaHood (pictured) said in an interview with C-SPAN's "Newsmakers" show on Sunday.

The 10-day-old program has helped reduced inventories of unsold vehicles at many dealerships to their lowest levels in years, giving Ford, Chrysler and General Motors much-needed cash injections.

Senate Democratic leaders said today that they hoped to bring a $2 billion extension to the Senate floor this week as the program's original $1 billion in funding runs low.

But the additional funding is no slam dunk. At least one senator wants to see evidence the program is reducing automotive emissions -- that and boosting the economy are two of its goals.

And some senators have said they are opposed to extending the program unless it is changed to compel consumers to buy more fuel-efficient cars than is currently required. Those senators include Republican Susan Collins of Maine and Democrat Dianne Feinstein of California.

LaHood expressed support for the program just as it is, but he made clear that if the Senate doesn't approve the funding extension, the administration won't rescue the program.

The program offers government vouchers toward a new car to consumers who surrender for scrapping an older vehicle rated at 18 miles per gallon or less. To get a $3,500 voucher, the new car must be at least 4 mpg more efficient; a 10-mpg improvement is required for a $4,500 voucher.  

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July 31, 2009

House Approves $2 Billion 'Clunker' Extension, but Trouble Looms in the Senate

Freeway-traffic-&-smog.jpg The U.S. House of Representatives, by a vote of 316-109, today approved a $2 billion extension of the "Cash-for-Clunkers" automobile sales incentive program.

The Democratic proposal would run through September 30, 2010, and tap funds from an Energy Department loan guarantee program included in the economic stimulus package enacted in February.

An initial $1 billion in funding approved this summer to boost stagnant industry sales has already been exhausted, officials said.

Consumers stormed dealers over the past month to take advantage of federally backed rebates of up to $4,500 on trade ins of gas guzzlers for more fuel efficient vehicles.

Unofficial government and industry estimates show that close to 250,000 vehicles were sold under the program.

The Senate is expected to vote on  the House bill next week.

Already a key senator, Energy Committee Chairman Jeff Bingaman, said he opposes using Energy Department funds for the auto program.

Another senator, auto industry ally Debbie Stabenow, said pushing the measure out of Congress would potentially take a lot of work compared to the extraordinarily swift action in the House.

The White House supports new funding for the program on grounds the initiative so far has provided a viable, national economic stimulus amid recession.  

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White House Officials, Lawmakers Study Ways to Keep 'Clunkers' Program Alive

clunker-mobile.jpg White House officials and lawmakers were studying late Thursday how to keep alive the government's cash-for-clunkers incentive program because of concerns the program's $1 billion budget may have been exhausted after just one week, The Wall Street Journal reported today (subscription required).

Obama administration officials warned congressional leaders Thursday it planned to suspend the program at midnight. But the White House released a statement late Thursday saying that completed deals would be honored and the program is still under review.

A White House official said, "We are working tonight to assess the situation facing what is obviously an incredibly popular program. Auto dealers and consumers should have confidence that all valid [cash-for-clunker] transactions that have taken place to-date will be honored."

Lawmakers are discussing with White House officials where to find funding - including possibly tapping the government's Troubled Asset Relief Program, or TARP, a congressional aide said.

The clunkers program, which offers rebates of up to $4,500 to consumers who trade in old vehicles and buy new, more fuel-efficient models, began July 24 and sparked a surge in car sales.

Congress had expected the $1 billion set aside for the rebates to last several months and set up the program to expire Nov. 1.

The speed with which it took off now puts it among the most successful stimulus packages to come out of Washington since the start of the recession. The boom in car sales will give a much-needed bump not just to automakers and dealers but also local government coffers that collect taxes on car transactions.

But the program's unexpected success also will put Congress and the Obama administration in a bind. With deficits soaring, lawmakers are increasingly reluctant to spend additional billions they don't have.

On the other hand, they are sure to face a consumer and industry backlash if they end a popular program midstream, especially as dealerships across the country are in the middle of a huge advertising campaign to tout the program.  

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July 30, 2009

Government to Suspend Popular Cash for Clunkers Program at Midnight Tonight

Slated to last three months, it may have burned through its $1 billion budget in just one week.

gas-gauge-main.jpg By Scott Doggett, Contributor

The government plans to suspend its popular "cash for clunkers" program at midnight tonight - a full two months early and only one week into it - amid concerns the program could quickly use up the $1 billion in rebates alloted for new car purchases if it hasn't already.

U.S. Transportation Department representatives called lawmakers' offices earlier today to alert them to the decision to suspend the program at midnight, a congressional source said.

The Car Allowance Rebate System (CARS) program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle. It is intended to boost auto sales and put safer, cleaner and more fuel-efficient vehicles on the nation's roadways.
 
The program, which Congress approved last month, kicked off last Friday and was heavily publicized by car companies and auto dealers.

As of tonight, the CARS Website showed that of the $1 billion allocated to the program, an estimated $779 million remained in the kitty. The remaining $221 million represented transactions that dealers had submitted for government reimbursement.

But dealers have raised concerns about large backlogs in the processing of the deals in the government system. Those concerns reportedly triggered the program's suspension.

According to an Associated Press story, a survey of 2,000 dealers by the National Automobile Dealers Association found about 25,000 deals had not yet approved by the government, or nearly 13 trades per store.
 
With about 23,000 dealers taking part in the program, auto dealers may already have surpassed the 250,000 vehicle sales funded by the $1 billion program.

So, is the program over already? Yes, if there indeed is no money in the till - or unless Congress decides to put more money in it.   

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DOT to Honor Some Cash-for-Clunker Deals Based on Old EPA Numbers

CARS logo - 220.JPG

Car and truck buyers who participated in the cash-for-clunkers program before its official July 24 launch date will not lose their government rebates even if the EPA's recently updated fuel-mileage figures have made them ineligible.

Rae Tyson, speaking for the U.S. Department of Transportation, told our sister blog AutoObserver.com that deals consummated before July 24 will qualify, but deals made after that date will not.

On the other hand, Tyson said, vehicles that became eligible because of the updated EPA figures will get the rebates if the transactions were made after July 24.

As a result, about 100 models changed status - about half went from qualified to disqualified as clunkers, and the other half became eligible as clunkers.

"This is only a partial victory for consumers," said Kevin Smith, Edmunds.com editorial director. "We are disappointed that consumers that purchased vehicles over the weekend before the EPA acknowledged the mileage changes will not have their transactions honored."

Edmunds.com, parent of AutoObserver.com and GreenCarAdvisor.com, brought the glitch to the government's and public's attention after visitors to the car-shopping Web site and its various forums and message boards raised it.

Some consumers reported to Edmunds.com that their vehicles qualified as a clunker on Thursday, but when they double-checked or were at the dealership, they discovered they no longer were eligible.

The Car Allowance Rebate System (CARS, or more commonly "Cash for Clunkers") is a $1 billion government program that helps consumers buy or lease a more environmentally-friendly vehicle from a participating dealer when they trade in a less fuel-efficient car or truck.

The program is designed to energize the economy, boost auto sales and put safer, cleaner and more fuel-efficient vehicles on the nation's roadways.   The program ends on November 1 of this year.  

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July 29, 2009

Concession on U.S. Fuel Rules To Spare BMW, Mercedes but Harm GM and Ford

mercedesbenzsclass.jpg German luxury automakers including BMW and Mercedes-Benz are close to benefiting from a U.S. concession that will allow them and a few other foreign makers to keep selling cars that emit more greenhouse gases than those made by mass-market rivals such as Ford, General Motors and Toyota.

So reports the Wall Street Journal today in an article (subscription required) that points out better than most how recent U.S. legislation benefits foreign automakers and harms domestic ones.

Under a provision of a plan to curb greenhouse-gas emissions, the Obama administration has proposed to set less stringent standards for carmakers that sell fewer than 400,000 vehicles a year in the U.S. That target defines the major German brands as well as a few smaller Asian manufacturers such as Suzuki Motor Corp. and Mitsubishi Motors Corp.

The easier targets are expected to apply to a limited portion of a carmaker's sales volume, and last for about four years -- unless the government grants an extension.

In effect, the "German provision" would make it easier for Mercedes to keep selling cars like its $147,000, 12-cylinder S600 sedan (pictured), rated at 13 miles per gallon, while GM or Toyota would be required to meet tougher mileage standards with smaller, more efficient cars, the Journal notes.

The rules are expected to be formally proposed later this year by the Environmental Protection Agency and the Department of Transportation to enforce the administration's mandate that makers boost the average fuel efficiency of their fleets to 35.5 miles mpg by 2016.

A spokesman for GM -- now majority-owned by the federal government -- said the Obama administration's proposal "creates fewer concerns" than California's policy because it is expected to exempt only a quarter of each qualifying auto maker's fleet, rather than all vehicles sold by those companies. It also would be in effect for only four years, compared with seven under the California program.

Other industry experts and some former government policymakers take a more critical view of the administration's plan.

David Cole, chairman of the Center for Automotive Research at the University of Michigan, said the provision would hand "a distinct competitive advantage" to German and other exempted companies that compete with the major U.S. and Japanese brands in the U.S.

Daniel Becker, director of the Washington-based Safe Climate Campaign, which advocates tougher regulation of automotive fuel economy and greenhouse-gas emissions, said BMW and Mercedes "should be required to meet the same standards as General Motors and Ford."  

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July 27, 2009

When a Guzzler's Not a Guzzler: EPA Changes Ratings, Tosses Some Clunkers Out


CARS-Program-Rollout.jpg The EPA has "refreshed" its combined mileage ratings and the result is that some gas guzzlers that qualified as trade-ins under the new federal cash for clunkers program last week don't qualify this week.

The rules for the CARS program state that to be eligible for the $3,500 or $4,500 credit, a vehicle being traded-in under the program - which really ought to be called cash for guzzlers even if it isn't as alliterative - must be rated at 18 mpg or less in the EPA's combined city-highway mileage ratings.

But the agency updated its list late last week - we're still trying to find out why - and now some cars that had an 18 mpg rating and were eligible trade-ins are rated at 19 mpg or more and are no longer the guzzlers they once were - so sayeth the EPA.

More details are available on our sister site, Edmunds AutoObserver.  

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July 23, 2009

Starting Today Chrysler to Double U.S. Government's Cash-for-Clunkers Incentive

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Chrysler Group LLC said Wednesday that it is offering $4,500 in cash toward the purchase of one of its new vehicles as it seeks to match a government incentive for people to trade in their old gas guzzlers.

The automaker said it will offer cash or zero percent financing for six years on most of its 2009 Chrysler, Dodge or Jeep models. The incentive begins today and lasts through Aug. 31.

Chrysler emerged from bankruptcy protection last month under new ownership and is now working to lure back car shoppers in a depressed market.

Chrysler sales were down 46 percent for the first six months of the year, while industrywide sales for the same period were down 35 percent.

The automaker is clearly using the financial incentive to lure prospective buyers into its showrooms, but unfortunately once there the prospects won't have the opportunity to buy any of the electric vehicles Chrysler has been showing in recent years.

However, Chrysler has promised that it will introduce a plug-in electric vehicle next year. It's shown several concepts, including a battery-electric Dodge two-seater based on a Lotus platform and a trio of "extended range" hybrid-electrics - two Jeeps and a Chrysler Town and Country minivan - that use electric motors, lithium-ion battery packs and small gasoline engine/generators in a set-up similar to that being pioneered by General Motors Corp. in the Chevrolet Volt due out late next year.

Dodge-Circuit-EV.jpg Most industry watchers, including us, are betting on the recently named Dodge Circuit sports car (right ) - a potential rival to the Tesla Roadster - to be first out of the chute.

Chrysler said in a statement Wednesday that buyers are eligible for the new incentive even if they are not trading in a vehicle under the government's cash-for-clunkers legislation.

That program's final rules will be announced Friday. It offers tax credits to car shoppers who trade in their old, fuel-inefficient vehicles for a cleaner new vehicle.

Not all vehicles qualify under the legislation, however. Car shoppers get a voucher worth $3,500 if they trade in a vehicle getting 18 miles per gallon or less for one getting at least 22 mpg. The voucher grows to $4,500 if the new car's mileage is 10 mpg higher than the old vehicle.

Owners of sport utility vehicles, pickup trucks or minivans getting 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV got at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV was at least 5 mpg higher than the older vehicle.

That means some consumers could, in theory, get up to $9,000 off a new Chrysler vehicle if they trade in and buy the right combination of vehicles. According to our parent company, Edmunds.com, 16 Chrysler vehicles are fuel efficient enough to qualify a shopper for a tax rebate under cash for clunkers, so long as the trade-in vehicle qualifies as well.  

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July 22, 2009

Ford Puts Pedal to the Metal on Green-Car Features During 2010 MY Presentation

Ford-slide-July-21-2009.jpg Above, a slide in a Ford presentation Tuesday spells out the new importance the automaker gives green cars.

By Scott Doggett, Contributor

In its bid to survive myriad threats in a volatile automotive industry, Ford Motor Co. is pulling out all the stops.

Perhaps that has never been more evident than it was Tuesday, when the century-old automaker hosted a 2010 model-year news conference and driving event at its sprawling Dearborn Development Center.

Derrick-Kuzak-July-21-2009.jpg Led by Derrick Kuzak (left ), Ford's global product development chief, and Barb Samardzich (below ), head of Ford's global powertrain R&D efforts, the event offered a deep look into the verdant future of Detroit's healthiest automaker less than a month after it unveiled plans to spend $14 billion on advanced-technology vehicles.

The company's recently released EcoBoost engine forms the core of Ford's survival strategy, they said. The engine uses gasoline turbocharged direct-injection technology for, the company claims, up to 20 percent better fuel economy and 15 percent fewer greenhouse-gas emissions than like-sized regularly aspirated engines of similar horsepower.

EcoBoost V6 engines will debut in the 2010 model-year Ford Flex, Taurus SHO, Lincoln MKS and MKT; as we reported, the company provided details Tuesday regarding a four-cylinder version slated to appear in Fords starting next calendar year.

By 2012, Kuzak and Samardzich said, the company will produce a combined 750,000 EcoBoost V6 and I4 engines annually in the U.S. and 1.3 million globally.

The executives also said Ford will offer EcoBoost engines in 90 percent of its vehicles by 2013. It's clear from the  figures that EcoBoost engines won't be an option, but rather will constitute the stock engines found in most of Ford's lineup less than five years from now.

Barb-Samardzich-7-21-2009.jpg And Hybrids!

But there's more to the green 2010 MY offerings from Ford than vehicles fitted with EcoBoost engines. Ford is also offering two new hybrids: the Ford Fusion Hybrid ($27,270 base) and the Mercury Milan Hybrid ($27,500 base), both of which impressed us with their acceleration and handling Tuesday on the development center's high-speed track.

Both hybrids average an EPA-rated 41 miles per gallon in the city - that's 8 mpg more than the 2010 Toyota Camry Hybrid, which starts at $26,150 - making them the most fuel-efficient midsize sedans currently available in America.

Speaking of Toyota: For the first time in the 28-year history of the Global Quality Research System, a study conducted quarterly by the independent RDA Group of Bloomfield, Michigan, Ford, Lincoln and Mercury vehicles recently obtained customer-satisfaction levels on par with the Japanese car maker's.

That's important, because it's one of a spate of recent internal and external studies that show a positive trend in the percentage of consumers with favorable opinions about Ford and growing numbers of consumers who are willing to consider purchasing a Ford product, thanks in no small part to improved fuel economy.

Avoided Bankruptcy

Of course, it also helps that Ford didn't just emerge from bankruptcy, as did Chrysler and General Motors. Those companies now have to win back consumer confidence, while Ford - though driving to improve its ratings - is starting form a much higher level.

2010-Ford-Fusion-Hybrid-at-.jpg The studies also show that vehicles such as the Fusion Hybrid (left, at Ford's Dearborn Development Center on Tuesday ) are bringing new customers to Ford: 54 percent of the hybrid's buyers thus far did not previously own Fords and 66 percent of those buyers are coming out of foreign vehicles, company spokesmen said.

That's crucial as Ford tries to win back some of the market share it's lost to Japanese and European automakers in recent years.

On that chord, it's worth noting that before he assumed his current position as Ford's head of global car development, Kuzak ran the automaker's European small-car operation for five years. People within and outside Ford who are familiar with Kuzak's European efforts say the man knows what Ford needs to do to compete with fuel-efficient subcompacts produced by Old World automakers.

That knowledge includes designing vehicles that not only get excellent mileage, but that are also a blast to drive. Quickness and major fun factor are characteristics Kuzak is constantly stressing to Ford engineers, they say.

EcoBoost Just a Start

But there's more to Ford's fuel-efficiency efforts than EcoBoost.

When you factor in the incremental fuel-saving gains Ford's made with electric power-assist steering (which reduces the load on the engine since a belt-driven power steering pump is no longer required), aerodynamic modifications, six-speed transmissions, reductions in electric-system loads via electric air-conditioners, minute transmission tweaks that reduce friction - and a host of other mileage-enhancers - the fuel-economy benefits of vehicles the automaker has in the works for the short term approach 40 percent.

"We are absolutely committed to delivering new products with the best fuel economy in every segment in which we compete," Samardzich said.

We look forward to posting more Ford green-car news from Tuesday's event later today.  

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July 21, 2009

Natural Gas Vehicle Research Measure Wins Overwhelming House Approval

CNGCAMRYHYBRIDCONCEPT.jpg

Natural gas vehicles got a boost today as the House of Representatives voted 393-35 to reauthorize the Department of energy's natural gas vehicle research program and to provide $150 million in funding over the next five years.

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This Toyota Camry natural gas-electric hybrid concept might become real and sights like this Southern California CNG pump more prevalent if DOE research is approved in Senate and proposed tax incentives become law.

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The measure, H.R. 1622, focuses on development of engines for all classes of natural gas vehicles, according to a report from the subscription only Energy & Environment News service.

But it also contains funding for improving the nation's spotty natural gas refueling infrastructure, to study use of natural gas engines in hybrids and for improvements to present storage technologies.

Natural gas appears to be one of the few issues with strong bipartisan support in the lower chamber, as the lopsided vote shows.

It also appears to have support in the Senate where Majority Leader Harry Reid, a Nevada Democrat, recently said he may seek time on the floor to stump for passage of a bill to extend and perhaps increase tax incentives and other support for natural gas vehicles  

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July 15, 2009

Charities Lament Clunkers Program, Say It Will Curb Much Needed Donations

Abandoned-Beetle.jpg Starting this month, the U.S. government will give American motorists $3,500 for scrapping gas guzzlers if they buy new cars that go at least four miles farther on a gallon of gas, or $4,500 if the new vehicle gets 10 miles more per gallon.

The goals of the Car Allowance Rebate System that Congress signed into law June 24 are to stimulate the U.S. economy and to get particularly bad air pollutors off American roads. But a report by National Public Radio indicates that some charities will be victimized by the program, as will  the low-income people they try to help.

That's because most donated cars aren't given away to people who can use them, but rather charities sell the vehicles and use the proceeds to help the poor. With fewer cars being donated as a result of the $1 billion "cash for clunkers" program, the fewer dollars the charities will have in their coffers to do good deeds.

Meanwhile, Reuters is reporting that economists view the program as unlikely to contribute much beyond a brief boost to economic growth in the current quarter. They cite the program's short duration (it ends November 1) and various eligibility rules among its shortcomings as a source of economic stimulus.

"It's a very small number of people that this plan will end up helping," Wachovia senior economist Mark Vitner told the news service.

The economists say the program may simply bring demand forward from later quarters as people who may otherwise have waited longer to take advantage of the program. And economists say even the near-term impact may disappoint, because the plan may not make much financial sense for many consumers.

"When you look at the qualifications, your vehicle has to be worth less then $4,500 for it to make economic sense," said Rebecca Lindland, director of the autos group at IHS Global Insight.

People with cars valued in that range typically own them free and clear and are not likely to be able to afford anything newer, Lindland told Reuters. A new car would mean new debt, and such purchasers probably would buy a used car.

"There are not a lot of people adding debt right now," she said. "Our forecasts haven't changed because we don't think this program is going to be successful."

On a related topic, Edmunds.com has tackled the question, "Does Charity Car Donation Still Make Sense Under Tougher IRS Rules?" The answer will likely surprise you.  

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July 9, 2009

Senate Takes Up Climate Bill in September, Will Have Big Impact on Autos

Bill Was Passed by House, but Senate Okay Isn't Certain; Reid Sets December Deadline

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We're still trying to get a solid understanding of how the proposed climate and energy bill will affect the cars we drive - now and in the future.

So we offer up a quiet "thank you" to Sen. Barbara Boxer, the California Democrat  who chairs the Environment and Public Works Committee and just said she'll hold off hearings until after the August recess.

That gives us a little more time to digest the bill (and opponents and proponents more time to argue about it).

To Obama By December

Senate Majority Leader Harry Reid (D-Nev.), said today that he wants to place the measure on President Obama's desk before the big U.N. climate talks set for Copenhagen in December - a location sure to give the climate warming non-believers lots to shout about as they stand in the center of Denmark's capital city and throw snowballs).

There's some doubt as to whether the Senate can muster the 60 votes needed to pass the bill - Republicans are pretty much united in their opposition and more than a few Democrats in the Democrat-controlled upper chamber are iffy.

Most Congress watchers figure that if a bill does come out of the Senate, it will be considerably watered down from the House version, necessitating a potentially heated joint committee session to iron out differences and make compromises.

What We Know

Incentives

Right now, the House version has lots of goodies for green car boosters, including a doubling of the federal loan program to help car makers revamp old factories to build a new generation of advanced technology vehicles (plug-in hybrids, battery electric, natural gas and more).The House wants to make a total of $50 billion in loans available.

Continue reading...

 
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Natural Gas Bills in Congress Benefit Consumers As Well as Fuel's Biggest Backer

NaturalGasPumpl.jpg There's a natural gas car in Edmunds' long-term fleet and I drive it most of the time, and like it, so I ought to be banging the drums for a pair of bills promoting natural gas vehicles and filling stations that are pending in Congress this session.

But I'm a bit cautious: the bills' big backer is T. Boone Pickens, the Texas oilman who has turned his talents and substantial fortune to promoting - and investing heavily in - natural gas.

The latest, introduced just this week in the Senate, pretty much echos the language of the first, H.R. 1835, introduced in the House is April and now awaiting action in the Subcommittee on Energy and Environment.

Several sections of the bills would give hefty tax credits to manufacturers and purchasers of natural gas vehicles, but several others would provide huge tax credits to companies that build natural-gas stations - up to $100,000 per installation.

Guess what. Pickens is co-founder and a significant owner of Clean Energy Corp., the country's biggest builder and operator of natural gas filling stations.

I guess somebody benefits from most any legislation passed in Congress, but I'd be happier if Pickens had sat this one out and let a less-financially involved organization, perhaps one of the green groups, do the heavy lifting.

Instead, T. Boone stood next to Sen. Robert Menendez, a New Jersey Democrat who is co-sponsoring the bill, at the press conference when Menendez announced that the Senate measure had been introduced.

Despite all that, I still like the bill, which also would double the tax credits for purchasers of natural gas vehicles and extend the incentives for 10 years - through 2019.

Continue reading...

 
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July 1, 2009

Cash-for-Clunkers Program Officially Starts 'Around July 23'

CARS-Program-Rollout.jpg President Obama signed into law on June 24 a program the National Highway Traffic Safety Administration is calling the Car Allowance Rebate System, or CARS (cute, eh?). This is a government program that helps a motorist purchase a new and more fuel efficient vehicle when he or she trades in a less fuel efficient vehicle.

According to the CARS Website, "while the CARS Act makes transactions on and after July 1 potentially eligible for credits under the program, interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued. Issuance will occur around July 23."

See the Frequently Asked Questions portion of the official site for more details. What appears below are the nuts and bolts of the program to help the completely uninformed get up to speed.

Important-things-to-know.jpg  

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June 30, 2009

EPA Grants California Waiver It Needs To Regulate Tailpipe Emissions in the State

Tailpipe-Emissions.jpg UPDATE: Adds details, comments from state officials.

By Scott Doggett, Contributor

The Obama administration announced today that it will give California the waiver it needs to begin regulating greenhouse-gas emissions from cars and trucks, ending the state's seven-year battle to enforce its own stringent tailpipe standards.

The decision comes a little more than a month after President Obama unveiled a suite of new national auto standards that weds federal fuel-economy standards with California's proposed emissions standards, making today's announcement anticlimactic.

Still, those federal standards will not take effect until model-year 2012, meaning the waiver will allow California and other states that choose to enforce their own emissions standards to begin with this year's models.

"This waiver is consistent with the Clean Air Act as it's been used for the last 40 years and supports the prerogatives of the 13 states and the District of Columbia who have opted to follow California's lead," EPA Administrator Lisa Jackson said in a statement. "More importantly, this decision reinforces the historic agreement on nationwide emissions standards developed by a broad coalition of industry, government and environmental stakeholders earlier this year."

Under the Clean Air Act, California is the only state that can enforce its own standards -- but only with an EPA waiver. Now that California has been granted the waiver, other states will be allowed to enforce the same tailpipe standard. Thirteen other states and the District of Columbia have already moved to adopt the California's standards, and a handful of others have indicated they may follow.

"The waiver affirms California 's authority to set the standards for the cleanest cars in the nation and recognizes the ability of forward-thinking states to continue to adopt them," CARB Chairwoman Mary Nichols said in a statement. "Now we can begin to work with the manufacturers to make a new generation of cars that deliver all the comfort and power we have come to expect but with improved efficiency and far fewer greenhouse gas emissions."

The waiver gives California -- and states that choose to adopt California's standards -- permission to enforce its standards through 2009, 2010 and 2011; or three years earlier than the federal standards take effect.

Additionally, California is working on an extension beyond 2016 right now, CARB spokesman Stanley Young told Green Car Advisor. He said CARB officials are in communication with Obama administration officials regarding national fuel-economy standards, "but we're working independently in California as a kind of laboratory of innovation."

In other words, California's air-quality regulators are going to do what they feel is best for the state regardless of what the U.S. EPA does. Young said he's hopeful national regulators will follow California's lead.

"This is just the first step in a much longer journey to produce cleaner cars," he said.

California adopted the tailpipe standards in 2002 and had been fighting for a waiver since 2005. Under then-President George W. Bush, EPA denied the state's request, but Obama ordered a review of the decision soon after taking office.

The auto industry had challenged California's attempt to regulate tailpipe emissions, arguing it would create a "regulatory patchwork" that would depress overall sales and put some dealers at a competitive disadvantage. Car makers and dealers argued that because consumers buy vehicles in different quantities in different states, automakers' fleetwide greenhouse-gas averages would vary by state, forcing manufacturers to manipulate the amount of each model they make available in each state.

The litigation was unsuccessful in federal courts, and the industry agreed to drop their legal challenges as part of the compromise that led to the new federal auto standards.

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June 26, 2009

Cash For Clunkers Website Up, Even Though Program Rules Aren't

The feds have opened a Web site to explain how Cash for Clunkers works, although the National Highway Traffic Safety Administration, which is responsible for administering it, hasn't written the rules yet.

While waiting for NHTSA, which has 30 days from last week's passage of the bill to get the proposed rules written, the site has a sign-up for people interested in keeping updated on that progress, along with an FAQ section; a link to the CARS logo - 220.JPG   government's fuel economy ratings so you can figure out if your old car, and the car you want to buy, both qualify; and the actual language of the law - in case you are an insomniac seeking something to help you get to sleep at night.

Oh, and because government has never met an acronym it didn't like, cash for clunkers is now officially the Car Allowance Rebate System, or CARS.  

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GAO: PHEVs Potentially Beneficial, but Costs Can Hinder Federal Fleet Integration

GAO-report-June-2009.jpg The U.S. government has set a goal - via Executive Order 13423 , signed by President Bush in 2007 - for federal agencies to use plug-in hybrid electric vehicles, or PHEVs, as they become available at a reasonable cost.

In response to a request from several key U.S. representatives, the federal Government Accountability Office examined the potential benefits of PHEVs, factors affecting the availability of plug-ins, and challenges to incorporating plug-ins into the federal fleet.

The GAO, in a report released this week, found that increasing the use of plug-ins could result in environmental and other benefits, but also that realizing these benefits depends on several factors.

Although plug-ins could significantly reduce oil consumption and greenhouse-gas emissions, the electricity used for charging the batteries would need to be generated from lower-emission fuels such as nuclear and renewable energy rather than fossil fuels - coal and natural gas - for PHEVs to reach their full potential.

Nothing there we've not reported time and again. Same can be said for the GAO's conclusion that for plug-ins to be cost effective relative to gasoline-powered vehicles, the price of batteries must come down significantly and gasoline prices must be high relative to electricity.

Indeed, the GAO study didn't veer much from common knowledge until it turned to the topic of the future makeup of the federal fleet. To incorporate plug-ins into the federal fleet, the GAO concluded, agencies will face challenges related to cost, availability, planning, and federal requirements.

Plug-ins are expected to have high upfront costs when they are first introduced, the study concluded, and agencies vary in the extent to which they use life-cycle costing when evaluating which vehicle to purchase.

Agencies also may find that plug-ins are not available to them, especially when the vehicles are initially introduced, because the number available to the government may be limited.

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June 24, 2009

House Dems OK Nixing Land Use Impact in EPA's Biofuel Assessment Plan

Corn-Ethanol.jpg It's clear that President Obama, who hails from a corn-growing state, is a big ethanol supporter - he's said so in a number of speeches, beginning back when he was running for the job.

Now it appears that the ethanol lobby also has a lot of support in Congress.

Bowing to pressure from the industry and from House members from big corn- and soy-growing states, House Democrats have approved a plan to shelve, for at least the next five years, the EPA's controversial decision to consider the indirect land use implications of biofuels production in computing their carbon footprint.

The proposal, which would be added to the energy and climate bill now being marked up in the House,  comes as Democrats seek to mollify farmers and biofuels producers who claim the so-called land use assessment policy would unfairly penalizes them because it isn't applied to other types of fuels. They also have argued that the methodologies for assessing the carbon impact of land use changes haven't yet been proven accurate.

Proponents of the so-called land use assessment procedure maintain that demand for corn-based ethanol and soy-based biodiesel can result in land covered by forests and grasslands - land that soaks up carbon dioxide and other greenhouse gases  - being plowed under to make room for biofuel crops that need fertilizers and insecticides that help create more greenhouse gases.

Assigning carbon impact assessments to the various alternative fuels is part of the way the EPA  judges whether a fuel is one of the renewable fuels whose use is mandated by the 2007 federal energy bill. If the carbon footprint is too high, a fuel is excluded from the renewables classification.

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GM Reportedly Persuing Chrysler for Repayment of 2-Mode Hybrid R&D Costs

Chrysler-Aspen-Hybrid-profi.jpg General Motors is reportedly seeking from Chrysler full payment of development and production costs related to the two-mode hybrid powertrain that the two automakers co-developed with other partners.

PickupTrucks.com reports that GM has filed court documents saying that Chrysler has promised $173,477 to settle $531,275 in costs associated with the development and manufacture of the Chrysler Aspen (pictured) and Dodge Durango Two-Mode Hybrid SUVs.

You might recall that both of the vehicles were killed after only two months of production.

Calls by Green Car Advisor to Julie Gibson, the GM spokeswoman authorized to discuss the matter, were not immediately returned.

Under Chapter 11, Chrysler's assets and liabilities were assigned to two entities: Old Chrysler and New Chrysler. Italian automaker Fiat, which recently merged with New Chrysler after that portion of the company emerged from bankruptcy, has not assumed the two-mode hybrid contract, leaving it with Old Chrysler.

According to a report by TheDetroitBureau.com, the court documents also state that New Chrysler has assigned all production-related contracts to Old Chrysler.

The Website reported that a source outside Chrysler said that Chrysler is hoping to renegotiate many of its pre-bankruptcy production contracts so they can be signed by New Chrysler under more favorable terms. The two-mode hybrid deal reportedly is one of those.  

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June 23, 2009

NHTSA Seeks Federal Tire Rating System That Includes Fuel Economy Index

Govt-Tire-Rating-label.jpg Borrowing an idea from California's air-quality regulators , federal authorities today proposed creation of a label (pictured ) that would, for the first time, include information about a tire's impact on fuel economy and global warming.

Under the U.S. Transportation Department proposal, tire manufacturers would be required to affix such labels to replacement tires sold in the United States.

The label is, we think, a good idea. The 240 million passenger cars and light trucks in the U.S. consume about 135 billion gallons of motor fuel annually.

Finding ways to reduce this energy consumption should be a national goal for reasons ranging from ensuring economic and national security to improving local air quality and reducing greenhouse-gas emissions.

As you can see from the proposed label, consumers would also receive information about the tire's performance characteristics as well as their "greeness."

The proposal requires tire manufacturers to label their replacement tires for fuel efficiency (via rolling-resistance tests), safety (via traction tests), and durability (via treadwear-life tests) based on test procedures specified by the National Highway Traffic Safety Administration.

A measurement of traction is intended to indicate a tire's ability to stop on wet pavement. Thus, traction is one metric that corresponds to safety. A treadwear rating measures a tire's wear rate compared with that of control tires. Treadwear life, therefore, corresponds to a measure of durability.

Comparing this new proposed label across potential replacement tires would enable consumers to see how different replacement tires can affect the fuel economy they are getting from their vehicle.

The label would also allow consumers to see the tradeoff they may be facing between fuel efficiency, safety (i.e., traction), and durability (i.e., treadwear life), and how the balance of these factors may differ from tire to tire.

The NHTSA's research has found that while tire construction need not sacrifice traction or treadwear for improved fuel efficiency, maintaining the same traction and treadwear while increasing the fuel efficiency of a given tire often entails higher costs.

So, if a manufacturer seeks to improve the fuel efficiency of a given replacement tire construction while keeping cost constant, there's a good chance that the construction will sacrifice either traction or treadwear.

The Rubber Manufactuers Association, representing eight tire manufacturers, says the new testing needed to rate the tires will incur more than $20 million in industry costs and opposes the labels.  

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It's Official: Ford, Nissan and Tesla To Receive First Advanced-Technology Loans

Money-car.jpg Yesterday we reported that Nissan, Ford and Tesla will be the first auto companies to receive factory retooling loans under the $25 billion federal program to speed production of fuel-efficient vehicles in the U.S.

Today, President Obama and Energy Secretary Steven Chu confirmed that the administration has granted $8 billion in conditional loan commitments to the three automakers for the development of vehicle technologies that, as the president put it, "will create thousands of green jobs while helping reduce the nation's dangerous dependence on foreign oil."

The loan commitments include $5.9 billion for Ford to transform factories across Illinois, Kentucky, Michigan, Missouri and Ohio to produce 13 more fuel-efficient models; $1.6 billion to Nissan to retool its Smyrna, Tennessee, factory to build electric automobiles and an advanced-battery manufacturing facility; and $465 million to Tesla to manufacture electric drivetrains and EVs in California. 

The loans represent the first in a series of conditional loan commitments reached as part of the Energy Department's Advanced Technology Vehicles Manufacturing program. Chu said the department plans to make additional loans under this program over the next several months to large and small automakers as well as parts suppliers.

In a statement, Ford said it plans to invest nearly $14 billion in advanced-technology vehicles over the next seven years. "Our partnership with the Department of Energy also will help retool our U.S. plants more quickly to produce fuel-efficient vehicles and help meet the new, rigorous fuel-economy requirements," it said. 

In its statement, Nissan said construction at Smyrna was scheduled to begin by the end of this year, with production slated to start in late 2012. It said modifications at the plant include a new battery-production facility and changes in the existing structure for electric-vehicle assembly.

"When fully operational, the vehicle assembly plant will have the capacity to build 150,000 zero-emissions vehicles a year and the new plant will have an annual capacity of 200,000 batteries," it said, adding that Nissan's EV "will comfortably seat five people, drive on any American road or highway, and have an initial range of 100 miles before recharging."

Model S News

And Tesla said it will use $365 million of the $465 million it received for production engineering and assembly of the Model S, an all-electric family sedan that will supposedly carry seven people and travel up to 300 miles per charge.

The Model S has an anticipated base price of $49,900 after a $7,500 U.S. federal tax credit. According to Tesla, it will have lifetime ownership costs equivalent to a conventional car with a sticker price of $35,000, thanks to the lower cost of electricity versus gasoline and a relative lack of service and maintenance.

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June 18, 2009

$1 Billion Clunkers Program Clears Senate, Bill Now Goes to White House


Thumbnail image for crushed430.jpg Okay, cash for clunkers, the pale green version, has passed the Senate and now awaits certain approval in the White House (the president already has said he supports it).

We're not big fans - there was, for a little bit, a greener version that required some sizable increases in fuel economy, but Congress was more interested in stimulating car sales.

Is anyone happy?  Automakers, chambers of commerce, car dealers and local tax collectors, for sure.

Here's what Dave McCurdy, chairman of the Alliance of Automobile Manufacturers, had to say:

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Let Them Make Wind - Power, That Is. Solar, Too.

$30 Bn Loan Fund Proposed to Help Auto Parts Makers Switch to Clean Energy Systems wind.jpg

As the auto industry shrinks, and shrinks, and shrinks some more, thousand of parts makers are finding themselves with dramatically reduced demand for their goods.

If GM, Ford and Chrysler combined are making 5- to 6-million fewer vehicles than in their heydays, that's 20- to 24-million fewer tires and steel and alloy wheels; 10- to 12-million fewer headlamp assemblies, and on and on.

Right now, the drop in demand is making itself felt in layoffs, shutdowns and bankruptcies in the auto parts supply industry - one of the largest segments of the nation's manufacturing sector.

But manufacturers can retool and rethink and move away from the old economy's shrinking auto supplies business and into the new economy says Sen. Sherrod Brown, an Ohio Democrat whose state has been hard-hit by the carnage in the auto industry,

He's sponsoring a bill, introduced this week, to provide a revolving $30 billion federal loan fund to help parts makers and other small- and mid-sized manufacturers make the transition into the clean energy sector.

We think that's appropriate. They prospered for decades making bits and pieces for the cars and trucks that helped get us into the energy and air pollution messes we're in, so why not let them move into making bits and pieces for wind turbines, solar energy systems and other clean and green energy stuff?

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June 15, 2009

California Regulators Consider Creating a Rating System for Fuel-Efficient Tires

Stack-of-tires.jpg An agency is looking into rating the rolling resistance of passenger and light-truck tires available for sale in California so that the state's motorists would know the fuel efficiency of tires when in the market for them.

A draft proposal of the California Energy Commission's Fuel Efficient Tire program was presented June 10 at a workshop attended by tire-manufacturer representatives.

The CEC proposed a rating system for passenger and light-truck tires in which all tires of the same size and load index be ranked against each other from lowest to highest rolling resistance force (or RRF), whereby those tires with the lowest RRF would be the most efficent.

The CEC proposal suggets that the 15 percent of tires with the best RRF be designated a "fuel-efficient tire." Manufacturers would need to test all of their consumer tires using the identical ISO 28580 test protocol, the CEC proposed.

The commission wants the rating system to be consumer friendly and easy to use, but it stressed that complete tire data should also be available for anyone interested in in-depth research.

A rolling-resistance-rating system will foster market competition, the CEC concluded, resulting in more fuel-efficient tires being available for purchase.

A spokesman for the Rubber Manufactuers Association, representing eight tire manufacturers, reported that the tire companies feel the new testing needed to rate the tires will incur more than $20 million in industry costs and require the hiring of additional staff for testing as well as data managment.

Naturally, the RMA wants a "self-certification" system in place wherein the companies would watch what each other does and challenge ratings they feel are incorrect.

And borrowing from a play book useed by automakers as related to tailpipe emission, the RMA spokesman pointed out that the National Highway Traffic Safety Administration is developing a federal-level tire rolling resistance regulation, thus, he said, the "California-only rule may not be prudent."  

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June 4, 2009

Cash for Clunkers Legislation Stalls; Let's Try A Slightly Different Approach

As Delays Weaken Plan's Sales-Boosting Impact, Refocus on Environmental Benefit

Thumbnail image for crushed430.jpg Dear Congress,

It looks like the latest attempt to push a "cash for clunkers' bill through your hallowed halls with something resembling speed has instead been stuck in one of those legislative and procedural traffic jams that so often bedevil your best efforts to help run the nation.

Because you can't agree on whether this part of the ongoing auto industry bailout ought to be mostly economic or mostly environmental, or whether it ought to be at all, you seem unable to push anything through.

Hey, don't fret. Nero gets excoriated for fiddling while Rome burned, but his inactivity had a positive result - a massive urban renewal project.

Your sluggishness on the clunkers issue might have a similarly upbeat result, too,

If Federal Reserve Chairman Ben Bernacke is right, the recession will be ending by the time you can get a measure passed, Congress, and car sales won't need the boost the program is supposed to supply.

So might we here at Edmunds Green Car Advisor suggest that its time to plan ahead - something, we know, that is hard for you to do - and change your focus from pushing sheet metal to using our tax dollars to help remove gross polluters and inefficient gas guzzlers from the roads.

That, you may remember, was the original intent of the first "clunkers" bill - the one that would have required people who agreed to scrap old, fuel-swilling vehicles in exchange for a $1,500-$4,500 voucher to put toward the purchase of a new model to use it to buy a vehicle with fuel efficiency exceeding the federal CAFE rating for its class by 25 percent.

That bill was quickly changed, as the economy rotted and car sales across the nation dried up, endangering the livelihood of all those auto dealers who pump money into your members' re-election campaigns.

Instead of focusing on the environmental benefits, the identical House and Senate measures you now seem to favor, Congress, are aimed at encouraging lots of new car sales. While they do require an improvement in fuel economy in most instances, but not as much as did that that original bill.

But now that you can't seem to get things moving even on that kind of cash-for-clunkers legislation, why not take a harder look at the counter-proposal that Sens. Diane Feinstein, Susan Collins and Charles Schumer have jointly proposed.

It's not as effective, from an environmental standpoint, as the original bill, but it does set the fuel efficiency bar higher than the compromise measures you're now considering.  

Adn while it might not result in as many new cars being sold, the passage of time is making that a moot issue anyhow.

Indeed, analysts at IHS Global Insight now say that you've dragged this out so long that even if passed this week the sales-boosting clunkers measure isn't going to help move more than 300,000 to 500,000 new cars off of dealers' lots, a far cry from the 1-2 million sales originally envisioned.

So drop the sales model into the round file and go for the environmental model, Congress.

It would be an impetus for sales of cars and trucks with higher fuel-efficiency, and that's a goal that you can be proud of regardless of the state of the economy.

I know its not fashionable to think you can do good, Congress (and, to be honest, you haven't done much in recent years to change people's thinking), but we think you still can.

Sincerely,
A. Dreamer  

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Authorities, Trucking Companies Clash Over Big-Rig Emissions Rules at Calif. Ports

Cancer-Risk-LA-&-LB-ports.jpg By Scott Doggett, Contributor

Cancer is caused by hereditary and environmental factors. Little can be done about the former. But quite a lot can be done about the latter - and the American Trucking Association doesn't want to hear another word about it.

Just when the political climate seemed right for air-quality regulators and others to protect the millions of people who live downwind of America's seaports, the self-proclaimed "advocacy organization for the U.S. trucking industry" stepped forward and crushed that presumption with lawsuits.

At the heart of the conflict are old big rigs that haul goods from the seaports inland, spewing thousands of tons of carcinogenic diesel particulates annually as they go.

But the greatest concentration of their microscopic toxic emissions exists at the ports, where the trucks congregate, engines running, awaiting turns to load up and move out to destinations throughout California and beyond.

That their emissions contribute to abnormally high numbers of asthma, bronchitis and cancer victims in and around the ports is irrefutable. Studies have shown that like an atomic bomb detonated in a populated area, the casualty count is greatest at ground zero and decreases with distance from it.

For this reason, the state's air-quality regulators, port authorities, environmental groups and others have sought to reduce the amount of lethal emissions leaving tractor-trailers at the state's various seaports.

They had initial success last year with the neighboring ports of Los Angeles and Long Beach, where for a time they were initially able to require trucking firms to use new cleaner-burning diesel trucks or trucks fueled with natural gas.

Authorities say the two ports spew more soot and smog than half a million cars, an oil refinery and a power plant combined. Port trucks produce 30 percent to 40 percent of that pollution, with the rest produced by ships and locomotives at the ports.  

Trucks-at-Port-of-LA.jpg Then thanks to the truckers' advocacy group, lawyers entered the fray and cried foul. Ultimately, the 9th U.S. Circuit Court of Appeals ruled in the ATA's favor, calling the ports' requirement unconstitutional on the grounds that it interfered in interstate commerce.

The ATA claimed the ports' requirement placed a tremendous financial burden on trucking firms. Doesn't matter that the ports - the nation's busiest - offered to help with a $20,000-per-truck incentive for trucking operations that bought clean rigs.

Despite the ports' defeat in court, the Port of Oakland this week tried to pass an air-quality plan aimed at cleaning up one of the dirtiest industrial areas in the country.

The port's commissioners voted 3-2 for a truck management rule that would ban many old haulers and require others to retrofits to reduce diesel pollution. The tally was a vote shy of the four needed to clear the proposal.

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June 3, 2009

Scrappage Bonus Said to Boost German Motor Vehicle Sales by 40 Percent in May

Clunker-4-Sale.jpg Motor vehicle sales in Germany rose a whopping 40 percent in May, spurred by government scrappage incentives, but automotive shares fell, with investors unconvinced that the measures were generating a sustainable turnaround in demand.

Germany's KBA motor vehicles agency said May car registrations rose to 384,578 units, up 39.7 percent from the same month last year.

In February the Berlin government launched a subsidy that pays motorists $3,310 to scrap cars at least nine years old if they buy a new model from any automaker in exchange.

The program - aimed at getting fuel-inefficient vehicles off the road, spurring Germany's economy and reducing air pollution - runs through the end of the year. The U.S. is considering a similar cash-for-clunkers plan.

Shares in VW slipped 4.1 percent Wednesday, despite the fact that it clearly benefitted from the program; VW's new vehicle registrations for May rose 60 percent in Germany.

"People know it's steroids, it's not real," Morgan Stanley analyst Adam Jonas told Reuters. "It's pleasure upfront with the pain coming next year."

The incentive scheme proved so popular that the government agreed to boost it to $7 billion from the initial $2.1 billion, but Jonas said demand would drop off once the incentive scheme runs out.

In the absence of strong incentives, unit volume in Germany in May 2010 could be down as much as 30 percent year on year, he said.

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Chemical Giant BASF to Commercialize Argonne's Lithium-ion Battery Technology

BASF-&-Argonne-logos.jpg The U.S. Department of Energy's Argonne National Laboratory and BASF, the world's largest chemical company, have signed a worldwide licensing agreement to mass produce and market Argonne's patented composite cathode materials to manufacturers of advanced lithium-ion batteries.

BASF will conduct further lithium-ion battery material application development in its current Beachwood, Ohio, facility, the laboratory said in a statement released today. Contingent upon winning a DOE grant under the Recovery Act, BASF plans to build one of North America's largest cathode material production facilities in Elyria, Ohio.

The patented cathode materials are part of a large and diverse suite of lithium-ion battery inventions and patents developed at Argonne with funding from the Energy Department's Vehicle Technologies Program.

Argonne said the further development and commercialization of the cathode materials will result in advanced batteries that are higher-performing, longer-lasting and safer when compared to the existing technology that has dominated the market for nearly two decades.

That's a big deal because it brings us one step closer to affordable zero-emissions, all-electric cars; the high price of batteries for vehicle propulsion is now keeping EVs out of reach of most people.

Indeed, BASF spokesman Joseph Breunig said the company's goal "is to make lithium-ion battery use realistic, affordable and widely available. Partnerships like this are exactly the type of public-private investment commitment that will create a more sustainable environment, help move the economy forward, and create new jobs."

The partnership has the potential to bring the U.S. much closer to reaching President Obama's goal of having one million plug-in hybrid electric vehicles on the road by 2015.

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June 2, 2009

Valence Applies for Federal Grant to Construct Advanced Battery Production Facility

Valence logo.jpg Valence Technology, an Austin-based manufacturer and supplier of lithium iron magnesium phosphate batteries, has submitted a grant application to the Department of Energy seeking $225 million under the Electric Drive Vehicle Battery and Component Manufacturing Initiative.

The initiative supports the construction of facilities to make advanced battery technology components for electric vehicles. The company's proposed facility would manufacture lithium phosphate cathode material, high-capacity advanced cells and battery packs for electric-drive vehicles and other applications.

Funds totalling $2 billion for grants under this initiative have been appropriated under the American Recovery and Reinvestment Act of 2009, which aims to stimulate the economy and create new American jobs by specifically utilizing renewable energy technologies that will shift the nation to a low-carbon economy.

Valence's application came one day after Boston-Power Inc., a Massachusetts-based laptop battery manufacturer, announced it had developed a new lightweight, high-performance lithium-ion battery for plug-in hybrids and electric cars and sought funds from the same money pool to help produce the batteries.  

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June 1, 2009

Concessions to UAW Restrict GM's Ability to Import Its Foreign-Made Green Cars

Gettelfinger.jpg UPDATE: Lawmakers lobby for small-car plant.

One of the reasons General Motors hasn't competed more effectively against foreign automakers in recent years is the difference that exists in their labor costs.

Members of the United Auto Workers union have tended to be much better compensated for their work, which has resulted in higher per-vehicle prices for GM (as well as Chrysler and Ford).

As a result, the White House wanted some concessions from the UAW before giving GM financial aid.

But now the UAW has received a concession from the Obama administration that might well hurt the General's ability to sell small, fuel-efficient vehicles that it's already making.

UAW President Ron Gettelfinger (pictured) boasted on PBS's "NewsHour" last week that "we, quite frankly, put pressure on the White House, the [auto] task force, the corporation" to bar small-car imports from overseas.

GM is also selling its Opel operation in Europe as part of this restructuring, and The Washington Post reports that one of Treasury's sale conditions is that Opel's new owners must stay out of the U.S., and even out of China, where GM's business is strong.

Gettelfinger boasted in the "NewsHour" interview that with the concession "we got the corporation to agree that they would build a small-car platform in this country."

What he failed to see is that the benefits for GM are illusory, because the import limits mean the company will have to spend even more to retool its domestic plants to make the little green cars that President Obama and Congress are demanding.

On Monday, lawmakers started lobbying GM to locate its new small-car plant in their districts.

The company said last week it will retool an idled UAW-GM facility to make as many as 160,000 small and compact vehicles a year.

GM has narrowed its choices to Orion, Michigan,; Spring Hill, Tennessee., and Janesville, Wisconsin, GM spokesman Greg Martin said.

Scott Doggett, Contributor  

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May 28, 2009

Study: Oil Prices Will Return to $110/Barrel in 2015, Possibly Hit $200/Barrel in 2030

Yesterday's-Gas-Price.jpg Most Americans likely expect the price of gasoline to one day reach the record highs we saw last summer. The question is not so much will the price soar again, but rather when will it.

According to the Energy Information Administration's 2009 outlook report released today, oil prices will return to $110 per barrel in 2015 and could go up to $200 per barrel in 2030, depending on supply

You'll recall that the nationwide price for a gallon of regular unleaded topped $4 when the barrel price of oil reached $147. But with taxes on gasoline expected to rise, the per-gallon price of gasoline will likely be significantly higher than $4 when the barrel price of oil revisits $147.

World energy consumption - the driving force behind higher gasoline prices - is forecast to increase by 44 percent from 2006 to 2030, the report says, with almost two-thirds of that coming from developing countries and fossil fuels that continue to dominate energy supply.

Developing countries are projected to increase demand by 73 percent by 2030 in the outlook's base reference case - EIA's analysis under current laws and policies - whereas developed countries will grow by 15 percent, the report says.

Liquids, including biofuels, will reportedly continue to be the primary energy source in the world's transportation sector unless there are "significant technological advances" and despite several policy changes.

Unconventional resources such as oil sands and biofuels will become increasingly competitive, accounting for about 13 percent of the world's liquid supply by 2030, according to the report.

The U.S. in particular will see an increase in biofuels, mostly in advanced cellulosic rather than corn-based ethanol, acting Administrator Howard Gruenspecht said at the report's release event in Washington.

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May 27, 2009

Schwarzenegger: Calif. Committed to H2 Future Regardless of Washington Politics

AS-May-27,-2009.jpg By Scott Doggett, Contributor

California Governor Arnold Schwarzenegger joined the 2009 Hydrogen Road Tour today at Stop 6 of a 9-day, 28-stop, 1,700-mile road trip, telling a group of reporters at the site of the state's first integrated (H2 and gasoline) station that California remains committed to a future where hydrogen fuel-cell vehicles replace gassy rides regardless of what Washington does.

Speaking at a Shell station in West Los Angeles, Schwarzenegger reminded reporters that the California Air Resources Board, which sets vehicle-emissions standards for the state, recently passed a low-carbon fuel standard - the world's first such standard.

It will, he said, ensure that the cleanest fuels, including hydrogen, will always have a strong market in California.

"And the reason why this is so important is that on the federal level, they [politicians] make decisions based on where the oil price is. That means that sometimes the federal government, when the oil price goes up, they go in the direction of renewable energy and alternate fuels. And when the oil price goes down, they abandon those policies," the "Governator" said, his back to a row of hydrogen fuel-cell vehicles made by Daimler, Honda, Toyota, KIA, Volkswagen and Nissan.

"Well we don't do that here in California. We only march in one direction and that is forward. And we're not going to slow down. In 2010, we will have seven new hydrogen refueling stations in California and we will invest another $40 million over the next two years in hydrogen stations."

The governor reminded the automotive press that 20 percent of the new vehicles sold in the United States are sold in California, which is home to 25 million cars and trucks. (Those vehicles, not incidentally, consume 50 million gallons of gasoline and diesel a day and produce 40 percent of the state's greenhouse gases.)

As a result of California's vehicle market share, and that fact that Washington often follows the state's lead regarding tailpipe-emissions regulations, automakers can count on there being a large market for hydrogen fuel-cell vehicles and companies considering investments in an H2-refueling infrastructure can rest assured there will be vehicles requiring the fuel, he said.

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May 26, 2009

Carmakers Spurn Flex-Fuel Bill, Say Every Buck Needed for Advanced Technologies

Ford-Escape-E85-Engine.jpg By Scott Doggett, Contributor

The Detroit 3 and eight other major automakers adamantly oppose a bill in Congress that would force them to produce more flex-fuel vehicles, and their opposition has merit.

At a time when lawmakers and the White House are pressuring America's carmakers to produce vehicles that are fuel efficient and competitively priced, Democratic Rep. Henry Waxman of California has introduced legislation that would create an "open fuel standard" requiring automakers to produce more cars and trucks capable of running on high blends of alternative fuels, assuming the fuels and infrastructure supporting them are available.

Democratic Representative Eliot Engel of New York says that's not enough. He's said that he might introduce legislation that would require half of new U.S. cars and trucks to be flex-fuel capable starting in 2012, with the mandate jumping to 80 percent by 2015 - regardless of fuel availability.

To count as flex-fuel capable, internal combustion engines would need to be able to run on blends of E85 (a fuel mixture containing 85 percent ethanol by volume) or M85 (a methanol fuel mixture), and diesel vehicles would need to be able to operate on biodiesel.

The Alliance of Automobile Manufacturers, a trade group representing the automakers, contends that adding flex-fuel technology will increase the price of each vehicle by at least $100 to $300.

A high-volume engine such as the one pictured here can be converted to flex-fuel capability for $300 or less, the alliance says. But Alliance President Dave McCurdy noted in a letter to members of Congress last week that a mandate would increase costs dramatically because the technology cannot be applied easily to some powerplants.

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May 22, 2009

Legislators in Corn States Want to "Think Local, Ignore Global"

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All politics is local, which explains why Republican and Democratic legislators in corn states are joining forces to oppose some parts of a U.S. Environmental Protection Agency proposal to measure the "life-cycle emissions" created by the production of a fuel's feedstock (say, corn).

It stands to reason that the EPA must get a better handle on the overall environmental impact of the complex string of related but hard-to-measure events that come into play as more crops are grown for fuel feedstocks. That means studying such things as the increased acreage needed to grow feedstock crops, associated well drilling, mining, transporting and refining the biofuel and how it performs when burned to power vehicles.

It also is reasonable for regulators to get a better understanding of "indirect land use change" (ILUC)  that can occur as corn, soy and other crops are cultivated for use as biofuel feedstocks rather than being directed into the traditional food chain.

Environmentalists say the increased use of traditional food crops as biofuels feedstocks can prompt other farmers to plant replacement crops. Too often, environmentalists contend, that new acreage is carved out of native forests and grasslands that now help soak up carbon dioxide and other greenhouse gases.

EPA Administrator Lisa Jackson has said that the National Renewable Fuel Standards proposed earlier this month - including the ILUC proposal - are still subject to peer review and change.

But ethanol industry representatives don't want to wait for the EPA rules. On Thursday, several ethanol industry told members of the House Agriculture Committee that Congress should restrict what the EPA can do when it comes to the ILUC rule.

Brian Jennings, executive vice president of the American Coalition for Ethanol told committee members that the proposed ILUC rule was based on "a controversial and untested theory," and that  "ideology is getting ahead of science" as the EPA and the California Air Resources Board craft their low-carbon fuels initiatives.

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Hydrogen Boosters Plan 1,700-mile Road Trip To Showcase Their Technology

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It's proving to be a long and winding road to the hydrogen economy.

But the California Air Resources Board, the California Fuel Cell Partnership, the National Hydrogen Association and the U.S. Fuel Cell Council are betting that the 2009 Hydrogen Road Tour, which will stop in 28 cities in the U.S. and Canada, will give motorists an opportunity to see how hydrogen fits into the transportation future.
  

The 1,700-mile road trip will begin on May 26 in Chula Vista, Calif. and end on June 3 in Vancouver, B.C. The tour will showcase a number of hydrogen fuel cell electric vehicles from General Motors Corp., Volkswagen Group of America, Daimler and other manufacturers. Though some of the planned events are by invitation, most are open to the public, and some lucky folks will be invited to test drive hydrogen-powered vehicles.

"Fuel cell technology is on the verge of becoming a practical alternative to burning gasoline," said CARB Chairman Mary D. Nichols. "This year's road tour demonstrates how far the industry has come and how near we are to putting these cars in the public's hands."

Given recent budget cuts proposed by the U.S. Department of Energy, the hydrogen sector could use an upbeat road trip to clear its collective head.

On May 7, DoE Secretary Steven Chu proposed that more than $100 million be cut from his department's hydrogen program. The proposed cut in the 2010 federal budget would slash hydrogen fuel cell spending by 59 percent to just $68 million and shift research to stationary power generation from transportation.

Why? "We asked ourselves, 'Is it likely in the next 10 or 15, 20 years that we will convert to a hydrogen car economy?' The answer, we felt, was 'no,'" Chu said in a briefing.

Chu's action marked a dramatic reversal from 2002 when former DoE Secretary Spencer Abraham boasted that "At the Department of Energy, we're not just talking about the hydrogen economy. We're working to make it a reality."

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Senate Members Offer 'Clunkers' Measure They Say is Greener than House Version

Clunkers.jpg

Unhappy with a compromise "cash for clunkers" measure hashed out by the House of Representatives, a group of key U.S. senators has introduced an alternative  they say would substantially increase the environmental benefits of the program.

Sen. Diane Feinstein, the California Democrat who co-authored the counter-proposal, said the Senate version represents a 32 percent improvement in fuel economy gains and greenhouse gas reduction over the House bill, which has been attached to climate change legislation now moving though Congress.

Critics of the House measure also have said that it doesn't offer enough incentive to persuade many people to take the plunge and buy a new car, truck or SUV in the midst of the worst economic recession since the Great Depression. That criticism would apply to the Senate measure as well, as it doesn't increase the incentive.

The Senate counter-proposal would permit consumers to obtain cash vouchers for the purchase of new vehicles if they trade-in cars or trucks that have EPA fuel economy ratings of no more than 17 miles per gallon.

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May 21, 2009

California Air Board Chief Says Auto Emissions Regulations Must Be Tougher

CARB Already  Working on Greenhouse Gas Emissions Rules for 2017 and Beyond

CO2smoke.jpg Whoa. Just when we thought it was safe to close the filing cabinet marked "California Greenhouse Gas Effort" now that the feds are going to adopt the controversial 30 percent reduction of automotive GHG as a national standard, word comes that the Golden State's air regulators aren't going to take even a short break.

Instead, the California Air Resources Board is starting to work "immediately" on "even more stringent standards" to take effect in the state after 2016, CARB's hardworking chairman, Mary Nichols, told a Reuters reporter the other day.

Nichols was instrumental in pushing the feds to use California's proposed statewide regulation of greenhouse gases from auto emissions as the basis for the just-announced federal rule that will increase average passenger vehicle fuel economy by 30 percent, with a corresponding reduction in carbon emissions, by 2016.

The decision by President Obama to seize on California's effort eliminates the need for the federal government to grant the state a special waiver to go it alone - a waiver Nichols' board has been fighting for since 2007.

No Letting Up

But the state air board doesn't see this week's events as victory. "It doesn't signal any kind of flagging interest on the part of California in being part of a transformation of the auto fleet to something much more efficient than what it is today," Nichols told Reuters.

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Letterman Doesn't Pull Many Punches in "Late Show" Interview With GM's Bob Lutz

Lutz&Letterman.jpg If you tuned into Late Show With David Letterman last night you saw the 62-year-old talk show host do a good impersonation of Sam Donaldson, the longtime reporter for ABC News famous for asking hard-hitting questions.

Letterman's subject: None other than Bob Lutz, the 77-year-old vice chairman of General Motors Corp. The interview came three weeks after Letterman had Tesla Motors CEO Elon Musk on the show and the two shared considerable laughter at GM's expense.

In perfect Donaldson style, Letterman didn't pull many punches, asking "Maximum" Bob pointed questions such as why GM seems incapable of building a battery-electric car like Tesla's Roadster and why don't U.S. automakers do the patriotic thing and make more fuel-efficient vehicles so we're less dependent on foreign oil. Letterman all but said American troops are dying in Iraq over oil.

Lutz responded with his usual song-and-dance, variously blaming the U.S. government for stupid regulations, and successive administrations for making bad policy -- such as keeping the cost of gasoline in America low and yet expecting Detroit to produce fuel-efficient vehicles when little demand exists for them.

But perhaps sensing that Letterman wasn't about to let him off the ropes, Lutz said something he's not wont to say unless pushed:

"Let's face it. During the '70s, '80s and up through the early '90s, the U.S. car companies built some really bad cars. And a lot of people still have that memory from their family -- 'My dad said don't ever buy an American car because they're all crap.' -- and of course that was true at one point but it's no longer true."

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May 20, 2009

House Climate Bill Would Double DOE Loan Program to Help Automakers Go Green

US DOE logo.jpg The House energy and climate bill would double a $25 billion Department of Energy loan program designed to help automakers produce more fuel-efficient cars and trucks.

The provision increasing the DOE pot to $50 billion was tucked into this week's substitute bill after being absent from both House Energy and Commerce Chairman Henry Waxman's original March draft and Friday's revision.

The substitute, released Monday, was quickly followed by news that President Obama would dramatically ramp up the speed at which carmakers will need to achieve better fleetwide fuel economy.

The DOE program was established in the 2007 Energy Bill to provide loans to automakers and parts suppliers to retool their U.S. plants for making advanced technology vehicles to meet new corporate average fuel economy, or CAFE, standards.

But Congress did not provide funding to back the loans until late last year as Washington scrambled to throw a lifeline to the battered auto industry, and DOE has yet to provide the first batch of loans.

The Energy Department cash is separate from billions of dollars already given by the government to General Motors Corp. and Chrysler LLC to help keep the two carmakers operating while they undergo sweeping restructuring, downsizing and, in Chrysler's case, bankruptcy.

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House Agriculture Chair: Leave Ethanol Alone, or I'll Block Climate Change Bill

Collin-Peterson.jpg The Website AgricultureOnline is reporting that House Ag Committee Chair Collin Peterson is angry that the U.S. Environmental Protection Agency has proposed a framework for assessing the greenhouse-gas footprint of ethanol.

The Minnesota Democrat (left) has vowed to use his clout to crush the historic Waxman-Markey climate-change bill - unless Congress passes a bill that would revoke the EPA's proposed rules.

Last Thursday, the committee introduced a bill that prevents the EPA from holding U.S. ethanol and biodiesel responsible for deforestation of tropical jungles. The EPA has thrown so-called indirect land use into its first estimates of the carbon footprint of fuels.

That would make corn ethanol from new plants and much of the nation's soy-based biodiesel no longer eligible for federal mandates that require oil companies to use biofuels. The mandates, called the Renewable Fuel Standard in the 2007 Energy Bill, require the nation to use 36 billion gallons of biofuels by 2022.

The next day, Peterson told AgricultureOnline that he will work to defeat any climate-change legislation on the floor of the House of Representatives until his "Renewable Fuel Standard Improvement Act" becomes law. And he has let the House leadership know how he feels.

"I've told them I want this passed. I want it signed by the president before I'll support anything else," he told the Website Friday.

The Democrat has threatened to aid Republicans in shooting down Waxman-Markey, and said he thinks he might have enough votes to defeat the bill when the full House votes on it.

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May 19, 2009

'Cash for Clunkers' Measure Attached to House Climate Bill

Clunkers.jpg The House Energy and Commerce Committee today followed through on plans to add a "cash for clunkers" amendment to its climate bill that would give consumers thousands of dollars toward buying or leasing new fuel-efficient vehicles when they trade in older, gas-guzzling autos.

The bipartisan vote was 50-4.

"By adopting this amendment, we can preserve jobs and protect the environment at the same time," said Democratic Rep. Betty Sutton of Ohio, the lead sponsor, who offered the plan along with Democratic Reps. John Dingell of Michigan, Bart Stupak of Michigan and Bruce Braley of Iowa.

The new Transportation Department program would lead to the retiring of an estimated 1 million vehicles, Sutton said. It applies to cars and some trucks. New passenger vehicles that replace the less efficient cars must get at least 22 miles per gallon.

The size of the vouchers available would increase as the efficiency difference between the old and new vehicles grows. For passenger cars, for instance, it starts at $3,500 when the new vehicle's efficiency is at least 4 mpg greater, increasing to $4,500 if it is at least 10 mpg higher.

The program, pushed by auto-state lawmakers, is seen as a way to help the struggling industry while curbing gasoline use. The amendment authorizes $4 billion in funding for the program.  

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Obama Proposes Bold Dual Standards for Automotive Fuel Economy and Emissions

CAFE300.jpg By Scott Doggett, Contributor

President Obama today proposed new national standards that would accelerate increases in automotive fuel economy and impose the first-ever national greenhouse-gas emissions standards on cars and trucks.

"In the past, an agreement such as this would have been considered impossible," Obama said in a Rose Garden speech. "That is why this announcement is so important, for it represents not only a change in policy in Washington, but the harbinger of a change in the way business is done in Washington."

The proposed rules would respect the legal authority the Supreme Court has granted the Environmental Protection Agency to regulate greenhouse-gas emissions with the Department of Transportation's right to regulate fuel economy under the corporate average fuel economy program, while still preserving California's right to regulate air pollution under the Clean Air Act.

The proposed rulemaking would be a joint effort between the EPA and the Transportation Department and would mandate a 5 percent annual increase in fuel economy for model years 2012 through 2016. It would push the corporate average fuel economy, or CAFE, standard to a fleetwide average of 35.5 miles per gallon by 2016, four years ahead of the schedule Congress laid out in the 2007 Energy Law.

The new program would add about $600 to the price of producing a vehicle compared with the current law passed in 2007. White House officials said the fuel savings resulting from the new program would more than cover the $600 expense.

The president's plan would not specifically grant California the waiver it needs to enforce its own standards, but it would appear to make the EPA's forthcoming decision on the issue moot because both the state and Obama are seeking a 35.5 mpg fleetwide average by 2016.

The White House said that if the EPA does ultimately grant the waiver later, California has agreed to defer to the national standard through 2016 - and that if the waiver request is rejected, the proposal will move forward regardless.

In addition, the rulemaking would limit the amount of greenhouse-gas emissions from passenger cars and light trucks, the first-ever such standard for the vehicles. A draft of the rule has not yet been released, but a White House spokesperson said the limit would be set at 250 grams per mile per vehicle in 2016.

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May 18, 2009

Is CAFE Needed? Consider Prodding the Public Rather Than Pushing Automakers

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As federal regulators, automakers, enviros and state air quality officials get set to sit down together to work up a national plan for reducing greenhouse gases by improving fuel-efficiency, there's going to be a lot of talk about the federal CAFE -- corporate average fuel economy -- standard and the mileage vehicles will have to get to meet the goals.

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We'll pay for fuel economy one way or another. Let's pick the best way.

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We've lived with CAFE for decades now and while we agree that it has helped push automakers into improving vehicle fuel economy, it also is easy to see that it hasn't helped enough.

That's because some automakers find it cheaper to pay the annual fines for not achieving their CAFE numbers than to spend the money it would take to do it. Others insist that building cars to meet CAFE would ruin what they stand for -- high performance, heavyweight luxury and the like -- and destroy their ability to market their vehicles here.

The plan that the feds and the automakers will now start kicking around seems to be based on California's controversial effort to achieve a 30 percent reduction in automotive greenhouse gas emissions, and it often is rendered in journalistic shorthand to say that it will require passenger cars to hit an average of 42 miles per gallon and trucks to achieve 26.2 miles per gallon by 2016.

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Are Automakers Finally Seeing the Light? Will Government and Greens See it Too?

Auto Industry Lines Up To Praise National Program Idea, Now the Hard Work Begins

CAFE300.jpg By John O'Dell, Senior Editor

The auto industry, tired of being seen as the bad guy whenever fuel economy and emissions regulation is on the table, is wasting no time lining up in support of tomorrow's White House announcement on development of a national carbon emissions and fuel efficiency program.

A cynic might think this doesn't bode well for the ultimate result of the rulemaking process that President Obama will outline at a press conference in Washington Tuesday morning: That the auto industry figures it has enough clout left to wring the life out of any effort to significantly improve fuel economy.

But we think it simply shows that an industry on life support and dependent on government largess here and overseas has finally read the writing on the wall and realizes that this is as good as it is ever going to get and that if it doesn't play ball it will have no say in the rules it  eventually will have to live by.

Automakers also have been caught in a trap of their own making. They've been fighting California, the national leader in establishing greenhouse gas controls on motor vehicles, insisting that individual states shouldn't be able to set carbon emissions rules and that a national standard is needed.

Now the Obama administration has stepped to the table and said, as the president is wont to: "Okay, let's develop a national rule."

To oppose that would be political suicide.

In that vein, the two lobbying groups representing almost every car maker that does business in the U.S. have jumped on board and are voicing support for the so-called National Program for Autos.

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WSJ: Obama Administration Ready To Combine Calif. and U.S. Vehicle Fuel Rules

NHTSA-logo.jpg The Obama administration is poised to unveil on Tuesday a new auto fuel-efficiency policy that would resolve a major dispute between California and the U.S. government over emissions, according to a report in today's Wall Street Journal (subscription required).

The proposal to run from 2012-2016 would maintain a single national standard for fuel economy and give automakers flexibility for meeting it, the Journal reported.

The effort would harmonize California's drive to curb greenhouse gasses by reducing tailpipe emissions with the federal approach for determining miles-per-gallon targets based on vehicle size and other attributes, the sources said.

The Journal, citing people familiar with the plan, said the strategy calls for raising the overall fuel economy of cars and trucks to 35 miles per gallon by 2016, four years faster than the current schedule.

In March, the government said fuel-economy standards for all U.S. light vehicles will rise 8 percent to an average of 27.3 mpg for the 2011 model year and will cost the industry $1.46 billion to make the change.

Under that timetable, cars will be required to travel an industry average of 30.2 miles on each gallon of fuel, up from 27.5 mpg, and light-truck standards will increase by 1 mpg, to 24.1 mpg, the National Highway Traffic Safety Administration (NHTSA) said. The combined fleet average will rise by 2 mpg.

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Twin Cities Work With Ford on EV Project; Solar-Powered Stations Considered

Green-Ford-logo.jpg Nonprofit groups and government officials in Minneapolis and St. Paul are working with Ford Motor Co. and Xcel Energy to bring electric cars to the area, the Detroit News reported today .

This is latest in a string of welcome green developments for the troubled automaker. Earlier this month we reported that Ford said it will spend $550 million to transform its Michigan Assembly Plant into a lean, green and flexible manufacturing facility that will build the company's new, gasoline-powered global Ford Focus and a battery-electric version of that vehicle.

Ford is hoping to get federal stimulus money for the Minnesota project, which could be one of 34 projects to receive the money.

As part of the proposal, local governments would field a fleet of 66 electric or hybrid cars in Minneapolis and St. Paul by the end of next year. Xcel Energy would set up special stations where the cars could charge up. That could include two solar-powered stations.

If it's approved, officials hope the project would help Minneapolis and St. Paul cut down on gas use and demonstrate a new energy-saving system to the public.  

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Energy Secretary's Proposal to Cut Hydrogen Fuel Cell R&D Is A Turn for the Worse

H2-Fuel-Intake-400x262.jpg By Scott Doggett, Contributor

One week has nearly passed since Energy Secretary Stephen Chu proposed slashing more than $100 million from Uncle Sam's hydrogen research and development program, and all of us should still be mystified and bothered by his proposal.

Chu's rationale for cutting hydrogen funding by 59 percent to just $68 million: It's unlikely that the technology will become significant player during the next two decades.

In other words, Chu's litmus test for funding a technology that might avoid or at least delay the catastrophic effects of global warming is that the technology must be developed within, say, the lifetime of an old house cat.

If Health Secretary Kathleen Sebelius applied the same rationale to drug research, she'd propose slashing federal funding for cancer, AIDS and influenza research, because cures for them are probably 20-plus years out. But tossing in the towel on those problems would be nutty, wouldn't it.

And just think where we'd be today if the Wright brothers, Ladislo Biro, Stephen Poplawski, Willis Carrier, Percy Spencer, and the banjo-playing, 3M engineer Richard Drew decided not to invent anything because it'll take too much time. We might never know airplanes, ball-point pens, kitchen blenders, air-conditioning, microwave ovens and, God forbid, Scotch tape.

Other things that took years to invent include: the telephone, the light bulb, the cotton gin, the sewing machine, the personal computer, television, the camera and, lest we forget, the automobile.

Shucks, a whole lot of things that shape the lives we lead today took a long time to develop.

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May 11, 2009

Honda, Toyota and GM Pledge To Continue Hydrogen Fuel Cell R&D

Talk about a disconnect.

When the Obama Administration unveiled its proposed 2010 budget last week, Energy Secretary Stephen Chu had penciled in a proposal to cut more than $100 million from Uncle Sam's hydrogen research and development program.

Chu's rationale for cutting hydrogen funding by 59 percent to just $68 million? It's unlikely that the technology will become significant player during the next two decades.

In contrast, the California Fuel Cell Partnership in February predicted that 4,300 fuel-cell electric vehicles could be traveling California roads by 2014, and that the the hydrogen-powered fleet could grow to about 50,000 vehicles by 2017 as more manufacturers introduce their zero emission vehicles.
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What's more, the partnership believes that, by 2017, Californians will be able to fuel their Honda FCX Clarity and other fuel cell vehicles at between 50 and 100 hydrogen refueling stations around the state.

'"Fuel cell vehicles and hydrogen stations are at the cusp of transition into the early commercial market," according to the organization's report that is titled "Hydrogen Fuel Cell Vehicle and Station Deployment Plan: A Strategy for Meeting the Challenge Ahead."

So it's not surprising that the CaFCP, which counts auto manufacturers (including Toyota Motor Corp., Honda Motor Co. and General Motors Corp.),  energy companies (Shell and Chevron), fuel cell technology companies (Proton Energy Systems) and government agencies (including the DoE, which is a dues-paying member!) on Friday called for Chu to reconsider the proposed budget cut.

"Hydrogen fuel cell vehicles have progressed to the point where some automakers are ready to begin early commercialization," said CaFCP Executive Director Catherine Dunwoody. "Stopping federal investment at this point is like a coach pulling back an Olympic athlete who has trained for years, just as the trials begin. We can't wait for the next round. We're ready to go."

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May 7, 2009

Uneasy Riders Say Proposed California Clean Air Rule Is Unfair to Motorcyclists

MotorcycleExhaust375.jpg California legislators are considering a bill that would require owners of an estimated 493,000 motorcycles to line up with owners of cars and trucks to undergo smog checks.

Proponents of SB 435 - including the California Air Resources Board, the American Lung Association and the Natural Resources Defense Council - maintain that owners of two-wheelers have been getting a free ride when it comes to the estimated 5.16 tons of pollutants emitted daily by their vehicles.

Motorcycles account for 3.6 percent of the state's registered highway vehicles and less than one percent of total vehicle miles driven in California. But the Senate Transportation and Housing Committee maintains that the pollution produced by motorcycles "is about 14 times that which is produced by cars."

The proposed solution: Biennial smog checks starting in 2012 for motorcycles manufactured during or after the 2000 model year. Not surprisingly, the bill has drawn stiff opposition from motorcycle owners since being introduced in February.

No word yet on whether the legislation will be passed - or whether motorcycle-riding Gov. Arnold Schwarzenegger would sign it.

We're of a mixed mind about SB 435. Motorcycles are relatively high emitters compared to modern cars, but their cumulative emissions are still very low. Similarly, the number of miles traveled by two-wheelers is but a tiny fraction of what motorists accumulate in cars and trucks - particularly big trucks.

California also has the toughest motorcycle emissions rules in the country (which the state says many motorcycle riders are skirting by tinkering with the emissions controls). But even with a motorcycle enthusiast as governor, bikers don't enjoy the political clout of, say, commercial truckers.

So while it makes more sense to toughen up emissions regulations governing, say, big rigs or stationary sources of pollution, motorcycles arguably are an easier target from a political perspective.

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May 5, 2009

Cash For Clunkers Legislation Clears Major Hurdle in Washington, D.C.

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President Obama and House Democrats today reached an agreement on cash for clunkers legislation that would pay consumers as much as $4,500 to scrap their old cars and trucks and replace them with greener, more fuel-efficient vehicles. The proposal that still must be approved by the full Congress calls for a year-long program that could cover about one million vehicles.

We've not yet seen the details, but Uncle Sam seems to have struck a good deal for the environment, consumers and the automobile industry. Negotiators seem to have avoided the real possibility of turning the legislation into a disruptive program that would have required owners to cash out their old cars and trucks, or require the complete demolition of clunkers.

That kind of legislation would have been unfair to collectors, enthusiasts and low-income car owners who don't want to part with their aging vehicles. Mandating the complete demolition of older vehicles would have resulted in seat frames and other perfectly good car parts being kept from the resale market.

Similar programs have been introduced by state air quality regulators in California and elsewhere, to varying degrees of success. So we're hopeful that Washington, D.C. will end up getting this program right.

As for the anticipated economic stimulus?

"It's not the best long-term business solution, but it will help spur new car sales and it has some good environmental benefits," said Jesse Toprak, Edmunds.com's senior industry analyst. "We've looked previously at both House versions and don't see much difference in impact, so the compromise should mean a minimum of half a million new sales during the rest of 2009," he said, adding that some more optimistic forecasts have put that number as high as one million new sales.
 
"A similar program in Germany did see a gain of a million sales, so that's possible here,"  Toprak said. "It all depends on how responsive customers are. There's a lot of pent-up demand for new vehicles."

The program that is based upon H.R. 1550 (introduced by U.S. Rep. Betty Sutton of Ohio) and H.R. 520 (introduced by U.S. Rep. Jay Insee of Washington) will be divided into four parts. Here is the plan as described by the House Committee on Energy and Commerce:

Passenger Cars: Old vehicles must get less than 18 miles per gallon. New cars must get at least 22 mpg to qualify for vouchers. If the new car's mileage is at least four mpg higher than the old vehicle's mileage, the voucher will be worth $3,500. If the mileage is at least 10 mpg better, the voucher's value will jump to $4,500.

Light-Duty Trucks: Old vehicles must get less than 18 mpg. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the new truck or SUV's mileage is at least two mpg higher than the old truck, the voucher will be worth $3,500. The voucher will be worth $4,500 if the new truck or SUV gets at least five mpg higher than the old truck.

Large Light-Duty Trucks:
New pick-up trucks and vans weighing between 6,000 and 8,500 pounds with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least one mpg higher than the old truck, the voucher will be worth $3,500. If the new truck's mileage is at least two mpg higher than the old truck, the voucher will be worth $4,500.

Work Trucks: Consumers can trade in pre-2002 work trucks (defined as pick-up trucks or cargo vans weighing from 8,500 to 10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. The committee noted that "there are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality." Consumers can also "trade down" and receive a $3,500 voucher for trading in an older work truck and purchasing a smaller, light-duty truck weighing from 6,000 to 8,500 pounds.

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May 4, 2009

Indian EV Companies Ask Federal Government For Sales Incentives Program

hero.jpg Last year, sales of electric vehicles (led by battery-powered scooters) were on a roll in India. But sales stalled as the global economy went into recession and lower gasoline prices further dulled the allure of  greener machines.

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A Hero Electric scooter on display at a recent show.
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Mint, an Indian newspaper, is now reporting that the country's vehicle manufacturers have asked the government to offer subsidies of up to 25% to consumers who buy EVs.

"This (industry) has to be seeded by the government by incentivizing people to buy our products," Sohinder Gill, chief executive of Hero Electric, the Hero Group arm that sells electric two-wheelers, told the newspaper.

Gill told the newspaper that India should follow the lead of the U.S., which is offering up to $7,500 in rebates for buyers of electric cars. The United Kingdom last month joined Germany and other countries that also have offered incentives to help counter the relative premium consumers must pay for a green vehicle.

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April 29, 2009

Pay-Per-Mile Driving Tax Wins Support of House Transportation Chairman

MileageTax.jpg Be afraid. Be very afraid.

The idea of a pay-per-mile federal driving tax appears to be gaining ground, despite White House opposition. Without a groundswell of public outrage to tamp it down it could spread through Congress quicker than an outbreak of swine flu.

The chairman of the House Transportation Committee, where a bill to impose such a tariff would ultimately be considered, said this week he thinks Congress needs to quit studying and start acting on a proposal to charge us for every mile we drive.

The idea behind the tax is to raise money for the federal highway fund, which now is dependent on revenue from federal gasoline and diesel fuel taxes.

In the absence of a fuel tax hike, that revenue stream has been shrinking rather dramatically as our vehicles' fuel economy has increased and gasoline purchases have fallen as more of us stay home to conserve funds in the midst of a raging global recession.

Congress historically has been too cowardly to raise the federal gas tax, but some - including Transportation Committee Chairman James Oberstar, a Minnesota Democrat - think a mileage-based tax would work.

"It's going to have to be done," he said during a committee meeting earlier this week, "it's something we have to do [so] why not just move ahead...I am at a point of impatience with more studies."

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April 28, 2009

Mitsubishi Reportedly Will Double i-MiEV Production Schedule by 2013

Thumbnail image for iMiEVVeh750.jpg Here's a report that offers evidence that government-provided incentives can help to grow the market for cleaner, more-efficient vehicles.

Mitsubishi Motors Corp. hopes to increase production of its i-MiEV to 30,000 vehicles annually during its 2012/2013 fiscal year, according to a report in the Kyodo News. The Japanese automaker previously said that it would produce 15,000 i-MiEV electric cars during its 2010/2011 fiscal year, according to the newspaper.

Mitsubishi President Osamu Masuko told the newspaper that the anticipated production increase is being driven by consumer response to government-funded incentive programs around the world that encourage consumers to purchase low-emission, fuel-efficient vehicles.

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April 24, 2009

California Regulators Approve World's First Low Carbon Fuels Standard

Rule is Part of State's Controversial Greenhouse Gas Regulation Plan

CO2smoke.jpg By John O'Dell, Senior Editor

Despite an intense lobbying campaign from biofuel manufacturers, particularly in the ethanol industry, California's top air quality regulator approved the nation's first low-carbon fuel regulations Thursday, launching a plan that will require the carbon content of fuels used in the state to be reduced by10 percent by 2020.

The California Air Resources Board voted 9-1 to approve the new rule, which is likely to take months - or more - to fully implement and could well be subject to lengthy litigation by opponents who see it as biased against ethanol.

It is part of the state's effort to reduce greenhouse gas emissions originating in California by 25 percent and is designed to encourage use of low- and no-carbon fuels such as natural gas, hydrogen and electricity and to slash use of gasoline for transportation in the state during the coming decade.

The measure also contains controversial (particularly to the ethanol industry) language that requires biofuels to be assessed not only on the carbon content of the fuel but the impact transporting the fuel and cultivating land for growing the fuels' feedstock - even in foreign countries - might have on total carbon output associated with the fuel.

Neither petroleum nor any of the other alternative fuels is subject to the same land-use analysis.

Other States To Follow

As with the state's more controversial bid to regulate automotive tailpipe emissions of greenhouse gases - typically done by increasing fuel economy to reduce the amount of carbon-based fuel burned per mile traveled - the measure is now likely to be adopted by as many as16 other states that have opted, under federal law, to follow California's emissions regulations rather than the more-lenient federal standards.

The auto and fuel industries believe that allowing some states to impose one set of rules while others follow a different set will impose incredible financial and logistic hardships on them at a time the economy is already severely depressed.

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April 22, 2009

United Kingdom Creates $870 Million 'Cash For Clunkers' Program

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Consider it an Earth Day celebration of sorts.

The United Kingdom today joined the growing number of countries that are offering cash or tax incentives to consumers who agree to scrap their old cars and trucks and buy new vehicles.

The "scrappage" plan announced Wednesday by the Chancellor of the Exchequer Alistair Darling follows the lead of such European countries as Germany, France and Italy, which earlier announced similar programs that are designed to rev up stalled automotive industry sales.

On this side of the pond, Congress is considering an Obama administration plan that's been dubbed "cash for clunkers."

Depending upon how such a program is structured, it could be effective when it comes to stimulating new vehicle sales and getting older, dirtier cars and trucks off of the road. But we maintain that participation should voluntary. The government shouldn't penalize car collectors, rebuilders, hobbyists and others who have solid reasons for owning old vehicles.

The U.S. proposal has won endorsements from the United Autoworkers and the country's Big Three automakers. Goldman Sachs estimates that cash-for-clunker proposals being considered by Congress could boost vehicle demand by 500,000 to 1.5 million during this year alone.

The U.K.'s auto industry certainly could use a push. The Society of Motor Manufacturers and Traders said that 313,912 new cars were registered in March in the U.K., a 30.5% drop from last year and the 11th consecutive monthly drop.

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April 21, 2009

Schwarzenegger: California Should Lead the Way on Emissions Standards

Arnold-Schwazenegger.jpg California Governor Arnold Schwarzenegger on Monday took to Twitter to drum up support for a cohesive national automotive industry policy that would lead to the design, manufacturing and sale of fuel-efficient vehicles.

When he wasn't sending Tweets, Schwarzenegger was addressing the Society of Automotive Engineers' 2009 World Congress in Detroit.

"With billions of people around the globe entering the car market for the first time and seeking energy-efficient but high-performance and stylish cars and trucks, America has an opportunity that exceeds even what the auto industry saw at its initial expansion in the 20th century," Schwarzenegger told SAE members. "This is an opportunity we must not waste, and as the world leader in innovation, design, marketing and technology, California is here to be the auto industry's partner for this new beginning."

Associated Press reported that the governor "has had conversations with federal officials and wants California to lead the country when it comes to setting low emission standards."

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Pickens, Wesley Clark Beat Drums for Natural Gas, Ethanol at Annual Alt Fuels Fest

ORLANDO, Fla - A pair of heavy hitters with big plans for alternative fuels kicked off the annnual Alternative Fuels and Vehicles conference here Monday, energy investor and former oilman T. Boone Pickens continuing his campaign to make natural gas the nation's fuel of choice and former Army general and 2004 Democratic presidential hopeful Wesley Clark pushing for greater use of ethanol in gasoline blending.

Pickens-Standing-Tall-250.jpg Pickens' post-breakfast appearance was a repeat of his frequent calls for a much-needed federal energy policy and for inclusion of natural gas, of which the U.S. has a fairly plentiful supply, as a preferred replacement for gasoline and diesel fuels.

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T. Boone Pickens delivered his dual plea for a national energy policy and increased use of natural gas to kick off annual Alternative Fuels and Vehicles conference.

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He's updated his message, however, with a call to quickly convert many of the nation's heavy duty over-the-road cargo trucks - 18-wheelers - to natural gas as a rapid way to shave billions of dollars from the amounts we're sending overseas to buy imported oil.

According to Pickens - who also is predicting that oil will rise to at east $75 a barrel by year's end I(which would likely result in gas prices hitting $3 - $3.25 a gallon) - says that each big rig burning compressed or liquid natural gas would have the same positive environmental impact as converting 325 passenger cars to the clean-burning fuel.

In a press conference before his talk, Pickens - who is heavily invested in natural gas - told reporters that he sees the fuel as the best bridge between the present petroleum-based tranpostation system and one 20 years from now that will be based on electric vehicles - either plug-in battery or hydrogen fuel-cell.

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April 17, 2009

Auto Industry Response to EPA Greenhouse Gas Finding: 'OK, Let's Talk'


The auto industry is chiming in on the Environmental Protection Agency's greenhouse gas endangerment finding and is taking the path of applauding the federal government's recognition of the need to reduce global warming emissions while questioning whether using the EPA-administered federal Clean Air Act as a vehicle for such regulation is the best move.

Industry groups also raised the question of how increased emissions regulation - particularly because it likely will rely heavily on automakers' use of expensive new technologies - will play in a recessionary economy.

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EPA Says Carbon Dioxide, Other Global Warming Gases Are Public Danger

Ruling Opens Door to National Regulation of Automotive CO2 Emissions


greenhouse gases.jpg By John O'Dell, Senior Editor

It's official: the federal Environmental Protection Agency, as expected, has issued a ruling that so-called greenhouse gases endanger human health and well-being.

The ruling, which EPA Administrator Lisa Jackson signaled was coming during her confirmation hearings in the Senate back in January, is in response to a U.S. Supreme Court decision that said the Bush Administration had no grounds for refusing to make a determination about the health impacts of the carbon dioxide and other heat-trapping gases that are emitted by factories, motor vehicles, livestock and just about everything else on the planet, natural or manmade.

The "endangerment" finding has tremendous implications in the automotive arena because it opens the door to national regulation of tailpipe emissions of the greenhouse gases linked to global warming. Because they are a direct result of burning carbon-based fuels, the quickest way to reduce them it is to demand increased fuel economy in our vehicles.

California already has tried to do that with a set of greenhouse gas emission regulations of its own, but was blocked from implementing the rules by the Bush administration and is now awaiting a ruling from the new Obama admiministration EPA.

The administration has signaled that it might just use the California rules - which would boost average passenger vehicle fuel economy to about 42 miles per gallon by 2020 - as a blueprint for nationwide regulation.

Today's ruling by Jackson was heralded as a long-overdue victory by environmental groups.

"The U.S. is taking its first steps as a nation to confront climate change," said Vickie Patton, deputy general counsel for the  Environmental Defense Fund.

"Global warming threatens our health, our economy, and our children's prosperity. EPA's action is a wake up-call for national policy solutions that secure our economic and environmental future," she said.

Automakers, however, maintain that requiring them to nearly double average fuel economy in less than a decade would be ruinously expensive at a time when the economy is in a deep recession, car sales have plummeted and losses rather than profits are the industry norm.

The EPA's ruling comes as Congress is considering global warming legislation of its own. The House Energy Committee begins hearing next week on a measure called the American Clean Energy and Security Act and House Speaker Nancy Pelosi - a Californian sympathetic to the state's efforts to regulate automotive greenhouse gas emissions - has said she wants to bring the bill to the floor for a vote this year.

While greenhouse gases come from many sources, the EPA limits its oversight to sources with annual carbon dioxide emissions of emitting 25,000 tons or more. So while automakers and power plants could be regulated, there are no reported plans to slap carbon taxes on livestock operations and other small emitters.  

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April 16, 2009

UK Will Offer Incentives to Encourage Electric, Hybrid Vehicle Sales

Cash For Clunkers Program Could Be Next On The United Kingdom's Agenda

EVsign-191px.jpg

The United Kingdom today announced a plan to "help put electric cars into the reach of ordinary motorists" by offering consumers as much as $7,500 in government-funded vehicle purchase incentives.

"The scale of incentives we're announcing today will mean that an electric car is a real option for motorists as well as helping to make the U.K. a world leader in low carbon transport," said Transport Secretary Geoff Hoon.
 
The five-year program to encourage sales of electric and hybrid vehicles that was unveiled today by Hoon and U.K. Business Secretary Peter Mandelson is part of a $370 million plan to deliver what officials described as "a green motoring transformation."

The incentives that will run from $3,000 to $7,500 are in line with what Washington, D.C. has approved in this country. The green package also includes $30 million to fund "charging points and related infrastructure to help develop a network of 'electric car cities' throughout the U.K."

U.K. officials said that the incentives would be available when the first electric and plug-in hybrids "hit the showrooms, which we expect from 2011 onwards."

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Dept. of Energy Awards $41.9 Million To Advance Fuel Cell Technology

forkliftl.jpg

It will take some heavy lifting to ready fuel cell technology for the road. To that end, the Dept. of Energy on Wednesday announced that it is awarding $41.9 million in American Recovery and Reinvestment Act funding to help develop fuel cell technology for a variety of applications.

Some of the grants went to companies that will develop, test and demonstrate new fuel cell applications. Delphi Corp., for example, won a $2.4 million grant to create a three- to five-kilowatt solid oxide fuel cell auxiliary power unit for heavy duty commercial trucks.

(On the Delphi front, Global Insight, an economic forecasting company, suggests that the bankrupt parts supplier "would appear fortunate to have received the aid at a time when the company's viability and future prospects are in question.")

The DoE awards are a relative drop in the bucket compared to the $400 million in tax credits that Michigan awarded earlier this week and the $2 billion in economic stimulus funds that Uncle Sam plans to hand out to spur advanced automotive battery development and production.

But every dollar helps. Which brings us back to the heavy lifting. DoE anticipates that the awards, when coupled with $72.4 million that the 13 grant winners have agreed to spend, will push 1,000 fuel cell systems into operation.

A hefty percentage of those systems will involve vehicles with wheels - industrial forklifts that, as DoE notes, are a key, early market "in which fuel cells can compete with conventional power technologies."

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April 14, 2009

Michigan Awards $400 Million in Tax Credits for Advanced Battery Production

The battery wars heated up again today as Michigan awarded four $100-million tax credit packages to a quartet of advanced battery projects that could lead to the creation of thousands of new jobs in the economically distressed state. One of the $100-million tax credit packages is contingent upon state legislators passing enabling legislation.

The credits awarded by the Michigan Economic Growth Authority are part of the state's bid to build an advanced battery industry that, by 2020, would lead to the creation of 40,000 new jobs. Volt-Battery-Pack.jpg

The Detroit Free Press is reporting that the winners will spend a cumulative $1.7 billion on their proposed projects.

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GM engineers work on a Volt battery pack.

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The winners of $100-million tax credit packages are:

A joint venture between Milwaukee, Wisconsin-based Johnson Controls and French battery manufacturer Saft Advanced Power Solutions. The companies plan to build a plant in Holland, Michigan.

A123 Systems Inc. of Watertown, Massachusetts, which on Monday said it had drawn another $70 million in capital from General Electric, plans to build a plant in Livonia. Last week, A123 announced that it would supply batteries for Chrysler LLC's upcoming line of electric vehicles.

KD Advanced Battery Group, which is a joint venture between Dow Chemical, Kokam America and Townsend Ventures, has yet to say where it would build its planned facility.

Korea's LG Chem-Compact Power, which has a contract to provide batteries for General Motors Corp.'s Volt, was awarded a $100-million tax credit package that is contingent upon additional state legislation being passed.

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April 9, 2009

Obama's NHTSA Nominee Draws Flack From Environmentalists For CAFE Stand

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Some environmentalists are worried that what the Obama administration had to say today about its nominee to run the National Highway Traffic Safety Administration isn't as important as what was left unsaid.

Charles Hurley, as the White House news release states, has served as chief executive officer of Mothers Against Drunk Driving since 2005. Earlier in his 30-year career, Hurley held senior leadership positions with the National Safety Council and the Insurance Institute for Highway Safety.

There's also mention of an Obama connection. The release notes that the NHTSA nominee "was honored to work with then-State Senator Obama on his successful efforts in 2003 to strengthen Illinois' seat belt, teen driving, child passenger safety, and racial profiling laws."

So what's missing that has environmentalists grumbling?

Any mention of Hurley's opposition to tougher corporate average fuel economy (CAFE) regulations while serving as vice president of communications for the IIHS As head of the NHTSA, Hurley would play an integral role in drafting the administration's vehicle safety standards and CAFE rules.

"It would be unfortunate for someone with his hostility to CAFE to be in charge of implementing the strengthening of the program ordered by Congress" in the Energy Independence and Security Act of 2007, said Wendy M. James, president of The Better World Group, Inc., a Burbank, Calif.-based firm that represents the interest of various environmental groups.

"While at IIHS, Hurley also opposed on-board gasoline vapor recovery, a key ozone reduction tool under the Clean Air Act," James said. "This combined with his opposition to CAFE bode poorly for the kind of cooperation that we will need between NHTSA and EPA as both work with California to implement new tailpipe and CAFE standards."

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April 8, 2009

Argonne National Laboratory Joins Kentucky Universities in Battery R&D Center

It would take a heck of a lot of advanced-technology batteries for President Obama to fulfill his campaign promise to put a million plug-in hybrid electric vehicles on U.S. roads by 2015.

Unfortunately, unless the competitive picture changes dramatically, most of those cars would be powered by batteries produced in Asian countries that now dominate the advanced battery manufacturing sector.

With that hard economic reality in mind, Argonne National Laboratory is teaming up with two Kentucky universities to establish a national research and development center that will be charged with transforming the U.S. into a viable contender when it comes to manufacturing tomorrow's high-tech batteries.

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Prius test vehicles at Argonne National Laboratory

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The center that will be located in central Kentucky will be supported by the University of Kentucky and Louisville University. Its not-so-modest goal, as summed up on Wednesday morning by Kentucky Gov. Steve Beshear: ramp up domestic production capacity and turn the U.S. into "the hands-down global leader of these technologies."

The center is supposed to make it easier for federal laboratories, university researchers, manufacturers, suppliers and end-users to collaborate on technologies that can be commercialized.

Many experts believe that advanced battery design and manufacturing could become as strategically important to the global economy as oil is today. But the U.S. has reduced itself to a bit player when it comes to manufacturing increasingly high-tech batteries that will be needed to reduce global dependence on oil and cut tailpipe emissions.

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April 7, 2009

Michigan Increases Tax Credits Available For Battery Designers, Manufacturers

Thumbnail image for batteries.jpg Michigan Gov. Jennifer Granholm has upped the ante in her state's bid to become a key player in the design and manufacturing of advanced batteries.

On Monday, Granholm signed legislation that makes available an additional $220 million in state tax credits for advanced battery makers. The credits are on top of $335 million in incentives that Michigan made available in January.

Granholm said that the $555 million in tax incentives now available should put Michigan at the front of the line in an ongoing competition for $2 billion in federal battery development grants that are to be announced in May.

The flurry of battery-related activity is part of Michigan's bid to create new jobs in the wake of the traditional automobile industry's dramatic restructuring. Granholm envisions advanced battery design and manufacturing as blossoming into an $18 billion industry that, by 2020, could create 30,000 jobs in her state.

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GM, Chrysler Could Be Frozen Out of Fuel-Efficient Technology Loan Program

GM-Logo-250.jpg File this  bit of news in the "when it rains, it pours" category.

The Detroit Free Press is reporting that, at least for now, General Motors Corp. and Chrysler LLC are prohibited from receiving any of the $25 billion in federal loans available to help automobile manufacturers and parts suppliers retool factories in order to bolster production of fuel-efficient vehicles.

Automakers and parts suppliers have submitted $44.6 billion in loan requests. GM asked for $10.3 billion and Chrysler requested $6 billion.

This pool of funds differs from the $17.4 billion in loans that the two automakers received as part of Washington, D.C.'s massive economic stimulus package and the additional loans they are seeking. But the two pools are linked in a couple of ways.

For starters, Department of Energy rules limit the $25 billion loan pool to companies that "demonstrate a reasonable prospect" of being able to make principal and interest payments. Applicants must have "a net present value which is positive, taking all costs, existing and future, into account."

Last week, of course, the Obama administration rejected restructuring plans submitted by the two financially troubled automakers. GM was given 60 days to present a credible plan and Chrysler was given a month to complete a partnership with Fiat.

In today's edition, the Free Press quotes GM spokesman Kerry Christopher as saying that federal officials "can't give us the additional loans until all other issues are worked out." The newspaper also reports that GM is working with DOE and the Treasury Department to do just that.

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April 1, 2009

Rush Limbaugh Tells All (and Then Some) in the Green Car Conspiracy

Note: The quote about Ford and Honda in the third paragraph was from an article in The Los Angeles Times, and was incorrectly attributed to Rush Limbaugh.

The gospel according to Rush Limbaugh now includes another chapter in what we'll call the green car conspiracy.

Here (from a transcript on the Excellence in Broadcasting network Web site) is what Limbaugh had to say on Tuesday about why vehicle manufacturers are scrambling to design and produce fuel-efficient, cleaner vehicles:

Thumbnail image for 2008fordfusion400.jpg

"The Ford and Honda hybrids due out this month are among dozens planned for the coming years as automakers try to meet new fuel-efficiency standards and please politicians overseeing the industry's multibillion-dollar bailout."

(That's probably news to Ford, which has just said 'no' to bailouts, and Honda, which doesn't qualify. And it might be news to the million motorists worldwide who've purchased Priuses and prodded Ford to introduce the Fusion Hybrid (left) and Honda to market the Insight Hybrid.)

And why are the auto companies kowtowing? Because the president is in cahoots with environmentalists who stay awake nights trying to figure out how to get us back to the good, old days when a gallon of gas cost more than $4.

Ah, but the evil-doers in Washington, D.C. (and their cronies in Sacramento) can't fool steely-eyed consumers when it comes to hybrids.

"Nobody's buying 'em," Limbaugh said. "Nobody wants them!  The manufacturers are making them in droves to satisfy Obama!  Sorry for yelling. Nobody wants them!"

(As of March 30, Americans had purchased 1.3 million hybrids since the first one -- a two-seat Honda Insight -- was sold in December 1999. Hybrids accounted for 2.51 percent of the market in March. That's the fourth-best monthly market-share showing ever, even with the lower gasoline prices. To be fair, though, hybrid sales did fall by 44 percent in March from a year earlier, and that's a worse showing than the 37 percent drop in the overall market.)

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House Leader Promises Action on Obama's 'Cash for Clunkers' Program

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House Majority Leader Steny Hoyer (D-Md.) said Tuesday that President Obama's "cash for clunkers" proposal would get "serious attention" in Congress.

On Monday, Obama said that he wants to stimulate new-car sales by offering financial incentives (funded by the massive federal stimulus bill) to consumers who replace gas-guzzling vehicles with more new, fuel-efficient cars.

Several pieces of legislation that would create "cash for clunkers" programs have been introduced in the House and Senate, according to Environment & Energy Daily newsletter (subscription required).

The New York Times today reports on a similar fleet modernization program in Slovakia that, like others in Europe, appears to be revving up new vehicle sales.

And, for what it's worth, Hoyer's Web site is running a poll on whether states should be allowed to set their own automobile emissions standards.

Greg Johnson, Contributor  

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NRDC and Industry Group Ask EPA To Speed Controversial Biofuels Rule Review

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It's rare to find an industry trade group and an environmental organization in agreement on much of anything when it comes to how greenhouse gas emissions should be regulated.

But the National Resources Defense Council and the Renewable Fuels Assn. on Tuesday asked the Obama administration to speed up the release its long-awaited proposal for expanding the nation's biofuels mandate.

In a letter to Environmental Protection Agency Administrator Lisa Jackson and Office of Management and Budget Director Peter Orszag, the two organizations asked that the most controversial sections of the EPA's proposed rulemaking be quickly subjected to public review.

The part of the proposed rule that will pit environmentalists against industry interests will be the requirement that the EPA consider greenhouse gas emissions generated by indirect land-use changes that would occur as biofuel crops are planted and other acreage is cleared to make up for land lost to food production.

"We all recognize that there is a range of opinions on the methodology that
should be applied to this calculation," the joint letter states. "For example, there is no consensus on any proposed time horizons, discount rates or global imaging for biofuels, which means initial numbers derived from EPA's proposed calculations will likely be modified in the final regulation."

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March 31, 2009

Congress Mulls Bovine Flatulence as EPA Readies Greenhouse Gas Decision


As the federal Environmental Protection Agency moves closer to an expected ruling that greenhouse gases are harmful to the environment, there's more than tailpipe emissions from autos at stake, it appears.

It is true that cars, trucks, buses, trains, planes, boats and other forms of motorized transport that burn carbon-based fuels do pump carbon dioxide and other greenhouse gases into the atmosphere.

cow.jpg That's led most sentient observers to believe that once the EPA issues its expected "endangerment" ruling and says greenhouse gases pose a public health threat, national regulation of automotive GHG emissions will follow.

But there are other emissions, from both ends of our cows, pigs, goats, sheep and other members of the ruminating livestock population, that also contribute to the greenhouse gas overload most scientists believe contributes to global warming.

And in anticipation of regulation and, perhaps even annual fines for violating GHG emissions regulations that haven't been written yet, farm-state lawmakers in Washington have written what we like to call the cow fart bills.

Seems that livestock emit lots of methane - produced by the vegetation digesting in all those stomachs - and methane is 20 times better at trapping atmospheric heat than is the carbon dioxide that our cars get such a bad rap for spewing.

(This isn't new. Such reports have been around for years, as you can see by checking out this 2005 news report on cow versus automotive emissions in California's San Joaquin Valley.)

An Ill Wind

Cows and other ruminants burp up methane and emit it from their "tailpipes" and some lawmakers and farm groups fear that if the EPA says greenhouse gases are harmful, then all GHG emitters will be regulated and subjected to fines or other penalties for violating the permitted emissions limits.

Although Lisa Jackson, EPA administrator for the Obama administration, has said her agency has no intention of regulating livestock GHG emissions, the American Farm Bureau apparently isn't so sure that there will be clear sailing ahead.

Energy & Environment News is reporting that the farm bureau has endorsed a bill, being carried by several members of congress, that would bar the government from requiring livestock operations to obtain federal clean air permits.

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Obama Embraces "Cash For Clunkers" Program to Stimulate Auto Sales

crushed430.jpg Late last year, Republican and Democratic members of a House committee urged then President-elect Barack Obama to consider using some of the money in his proposed economic stimulus plan to pay motorists to take older, dirtier vehicles off of the roads in return for cash that could be used to buy cleaner, more-efficient models.

Obama, it turns out, was listening.

Sandwiched in between the monumental news about General Motors and Chrysler, the president on Monday proposed a fleet modernization program that would include a "generous credit to consumers who turn in old, less fuel-efficient cars and purchase cleaner cars."

Obama said that he will "work with Congress to identify parts of the (Economic Recovery Investment Act) that could be trimmed to fund such a program, and make it retroactive starting today."

We think that makes some sense. A so-called "cash for clunkers" program could stimulate new vehicle sales and help improve the nation's fuel economy picture and reduce tailpipe emissions.

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California Will Require Vehicle Service Providers To Check Tire Pressure

tireproject.jpg

File this one under "think global and act local" - with a duplicate copy under "is this really necessary?"

On March 26, the California Air Resources Board voted to require the state's 40,000 automotive services suppliers to check the tire pressure of every vehicle serviced.

CARB's rationale for the new rule that will take effect in 2010 is to improve fuel efficiency and reduce tailpipe emissions. The rule is designed to eliminate 700,000 metric tons of greenhouse gas emissions by reducing statewide annual fuel consumption by 75 million gallons. (Californians consume about 15 billion gallons of fuel per year.)

CARB estimates that 38% of vehicles on California roads have "severely under-inflated" tires, which the board defines as at least six pounds under manufacturers' tire inflation recommendations.

"Checking tire pressure is one of the many simple things that we can all do to reduce our impact on the environment," board member Barbara Riordan said after last week's vote. "While we should do this monthly, this measure makes it convenient and regular."

The rule is part of the board's response to the Global Warming Solutions Act that Gov. Arnold Schwarzenegger signed into law in 2006. It requires the board to draft and implement regulations that will reduce California's greenhouse gas contributions.

But at least one automotive trade associations complained during public hearings that the rule puts its members between a rock and a hard place.

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March 30, 2009

California Air Regulators Have No Intention Of Banning Black Cars

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Black is back in the Golden State - whether it's cool or not.

The Los Angeles Times' Up To Speed blog reported on March 27 that the California Air Resources Board has no plans "at this time" to  regulate car paint as part of its plan to reduce greenhouse gas emissions. CARB spokesman Stanley Young told the blog that "we are by no means interested in banning or restricting car colors."

Young was referring to controversy fueled by reports that California regulators were considering a ban on black cars as part of the state's ongoing bid to improve fuel efficiency and reduce tailpipe emissions.

A recent headline on Rush Limbaugh's website went as far as to state that "Tyrants Want to Ban Black Cars." The radio talk show host delighted in the prospect of those wacky Californians considering a ban that would directly impact President Obama, who regularly travels in a black limousine that is escorted by security forces riding in black SUVs.

Back on Feb. 4, we gave you an update on CARB's ongoing push to find "cool paints" and window treatments that use advanced technology to reflect or reduce the infrared and near-infrared light that causes the interiors of cars with dark paint to really heat up on sunny days.

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March 27, 2009

CAFE Rises 8 Percent for 2011 Models, to 27.3 MPG; Bigger Boosts Coming

Thumbnail image for CAFE300.jpg As expected , the feds have issued new average fuel economy rules for 2011 model-year cars and trucks, calling for an overall corporate average fuel economy (CAFE) of 27.3 miles per gallon.

The rules also drop language, inserted in the waning months of the Bush administration, that would have kept California from adopting its own greenhouse gas emissions regulations and other states (13 have signed up to do so) from following California's lead.

The new, interim CAFE regulations represent a an 8 percent, or 2 mpg, increase over the present standard and while not as high has many wanted it to be, are just the first in a series of CAFE adjustments we'll be seeing over the next few years.

The Obama administration has signaled that it is willing - and likely - to push the federal fuel economy standard well beyond the 35 miles per gallon minimum goal Congress has set for the 2020 model year.

To meet the 2011 rules, new passenger cars will be required to achieve a fleet average of 30.2 mpg, up from 27.5 mpg now, while light truck fuel economy would have to average 24.1 mpg, up from 23 mpg.

The Department of Transportation is estimating that the new CAFE standards for the 2011 model year will save 887 million gallons of fuel with a resulting cut in carbon dioxide emissions of 8.3 million metric tons.

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March 26, 2009

Green Car Proponents Say Government Support for R&D Is Growing in Importance

Honda FCX Clarity.jpg

And you thought it was tough trying to figure out which fuel-efficient car to drive off the dealer lot.

Ichiro Sakai, assistant vice president of American Honda Motor Co., said earlier this week that vehicle manufacturers face similar challenges when it comes to allocating limited R&D dollars among competing (and expensive) green technologies.

"We suffer from market preference," Sakai said during a transportation program sponsored by the Paul H. Nitze School of Advanced International Studies at Johns Hopkins University in Washington.

That's a polite way of saying Honda doesn't want to get too far ahead of the green automobile pack -- only to discover that consumers aren't interested in buying what it has to sell. A case in point: the ongoing debate over whether lower gasoline prices have dulled consumer demand for smaller, fuel-efficient cars.

Honda sees the wisdom of advancing such technologies as pure-electric vehicles and increased use of biofuels. But EE Publishing's ClimateWire (a subscription-only news service) reports that Sakai also told the audience that such market realities as fuel economy regulations force it to concentrate on picking "lots of low-hanging fruit for the future of internal combustion engines."

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Federal Funding Shifting Away From Fuel Cells, Back to Plug-In Hybrids?

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You don't need a weatherman to know which way the federal funding for green vehicle technology research has been flowing.

The Clinton administration favored plug-in hybrid electric vehicle research. The Bush administration steered funding to hydrogen fuel-cell research. And who hasn't heard President Obama's repeated pledge to have 1 million plug-in hybrid electric vehicles on American roads by 2015?

But some in Washington, D.C. are cautioning against the anticipated swing of federal funding back to plug-in hybrids at the expense of hydrogen technology research.

"I hope that we will avoid again putting all of our eggs in one technology basket," U.S. Rep. Brian Baird (D, Wash.) said while chairing a Tuesday hearing in Washington, D.C., by the House Subcommittee on Energy and Environment. "While we must be targeted in our federal R&D programs, this single-minded approach ignores the importance of balancing a diverse portfolio with sustained funding for longer-term research."

Subsequent testimony by Steven Chalk suggested that the principal deputy assistant secretary for the Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy has taken to heart Obama's 2015 pledge.

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March 19, 2009

Congressmen Want 80 Percent of New Vehicles Flex-Fuel Compatible by 2015

flex350.jpg Although it contains less energy than gasoline and thus cuts into fuel economy for vehicles that use it, ethanol helps replace gas and that makes it a valuable tool in the national effort to wean ourselves from petroleum-based fuels.

We don't believe it is particularly green, either, but none of this has kept ethanol from being the favored alt fuel of a whole lot of people.

In the latest pro-ethanol move we're aware of, a bipartisan group of congress members has just introduced a bill that would require by 2015 that 80 percent of all new autos and light trucks sold or manufacturers in the U.S. be capable of running on either E85, a blend of 85 percent ethanol and 15 percent gasoline, or M85, a methanol-gasoline blend in the same proportions.

(Methanol, a close cousin of ethanol, is widely used as a racing fuel, primarily for safety reasons - it is less flammable than gasoline. But is has even less energy content than ethanol.)

The measure, H.R. 1476, would require half of the new cars and light trucks sold or built here in 2012 to be E85 or M85 flex-fuel capable, ratcheting up to 80 percent three years later.

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March 18, 2009

Congress Gets Highway Funding Commission's Pitch for Pay-Per-Mile Driving Tax

Few motorists would dispute the National Surface Transportation Policy and Revenue Study Commission's claim that the cost of traffic congestion - in wasted time, wasted fuel and vehicle wear and tear - is tremendous.

The commission estimates the cost at more than $78 billion annually and Chairman Robert D. Atkinson on Tuesday told members of the House Budget Committee that it is getting worse.

MileageTax.jpg The federal Highway Trust Fund's average annual revenue is falling woefully short of the $100 billion needed to keep pace with repairs and increasing traffic, he said.

Atkinson's testimony summarized findings in the Feb. 26 transportation funding commission report that bluntly stated: "The federal Highway Trust Fund faces a near-term insolvency crisis, exacerbated by recent reductions in federal motor fuel tax revenues and truck-related user fee receipts."

But we disagree, as we have in the past, with the commission's proposed solution to funding decline - a  so-called vehicle mileage tax, or VMT, that would have motorists pay per mile driven.

The federal funding formula historically has relied upon taxes imposed on petroleum-derived fuels, and, by contributing mightily to the cost of gasoline and diesel fuel, those taxes provided an incentive for people to demand fuel-efficient vehicles.

A straight miles-traveled tax that replaces fuel taxes could kill consumer demand for green vehicles: the driver of a Hummer would pay the same as the driver of a Prius to travel from, say, Boston to New York.

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March 17, 2009

Congress Looks To Mass Transit Policies to Cut Fuel Use and GHG Emissions

Highway Improvements to Foster Free Flow of Auto Traffic Must Not be Overlooked

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With congressional Democrats and the White House promising to remake federal transportation policy so it works to reduce greenhouse gas emissions and fuel consumption, a big boost for mass transit, including high-speed rail, would seem to be in the offing.

We'll get a taste, perhaps, of what's to come when the House Select Committee on Energy Independence and Global Warming sits down on Thursday to ponder how each mode of transportation can affect things.

The committee's findings are likely to impact the transportation funding re-authorization bill, says E&E News, a subscription-only report on energy and environmental doings in D.C. and around the country.

That bill - no due date yet - provides the bulk of federal spending on highway, transit and rail services and by so doing becomes the national transportation strategy document.

As E&E points out, Transportation Secretary Ray LaHood says the White house intends to push for linking mass transit with development and land use in hopes we might finally have some sort of logical approach to planning our communities and the means to get about within and among them.

 Rep. James Oberstar, the Minnesota Democrat who chairs the House Transportation and Infrastructure Committee and will take the lead in drafting the measure, told a group of public transportation officials last week that he hoped to "make the 21st century the bright age of mass transit," E&E reports.

We're all for it, but hope Congress in its effort to finally make rapid mass transit an important part of the American transportation scene doesn't forget that the automobile is and will remain the most important piece of the puzzle.

Planning for highway improvements that will ease congestion and promote the flow of traffic will go a long way toward meeting the greenhouse gas and fuel economy goals.

John O'Dell, Senior Editor  

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March 13, 2009

Aptera Off to D.C. to Seek Loan Eligibility for Unconventional Advanced Vehicles

apterasideleft.jpgBy John O'Dell, Senior Editor

Dismayed to discover that its three-wheeled electric commuter vehicle won't qualify for federal green car manufacturing loans under present policies, California-based Aptera Motors says it is heading to Washington to try to get the rules changed.

The company says it wants a level playing field so it can competitively manufacture its teardrop-shaped, lightweight Aptera 2e (left).  The vehicle, still in the per-production prototype stage of development, can travel up to 100 miles on a single charge of its batteries and deliver the fuel efficiency equivalent of 200 miles per gallon.

Aptera has slated production to begin at its North San Diego County headquarters and assembly facility in October.

But the federal Advanced Technology Vehicles Manufacturing Loan program, which has $25 billion to foster manufacturing of the next generation of fuel-efficient vehicles, is only open to applicants that make automobiles and related components.

By law, the Aptera and other three-wheeled vehicles are motorcycles, not cars, and thus not eligible for the loan program.

PaulWilbur400.jpg "We've received financial backing from funders like Google and IdeaLab, and now we'd like to tell our story of breakthrough aerodynamic design and efficiency on Capitol Hill," Aptera President and CEO Paul Wilbur (right) said in a statement released late Thursday evening.

"Aptera can change everyday commuter driving forever, and even though we're a relative newcomer, we're confident our vision, purpose and results will compel federal lawmakers to rally around our cause and embrace efficiency in federal policy," said Wilbur, a former Chrysler executive who also headed independent automaker Saleen and components manufacturer ASC Technologies.

Wilbur's Washington itinerary is unclear. But his plea for inclusion of the battery-electric Aptera 2e in the federal advanced-vehicle funding program has won backing from two California congressmen, which should help open doors.

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March 12, 2009

Former GM Economist Says Automakers Have Tools to Comply With GHG Rules

ghg220.jpg The issue of "patchwork" regulation comes up in every discussion of the controversial California plan to impose its own greenhouse gas emission regulations on automakers.

We've disagreed with the auto industry's stance since the beginning, arguing that so many states representing so much of the auto market use California's air quality standards instead of the federal regs that the state's greenhouse gas rules would become a defacto national standard anyhow.

Now comes Walter McManus, director of the automotive analysis division at the University of Michigan Transportation Research Institute, to argue that, heck, the auto industry already operates its own patchwork quilt of state-by-state market mixes and sales strategies.

Why would it be any more difficult to mix and match vehicle offerings to meet individual state's GHG goals than to meet the industry's own marketing goals for each state, he asks.

Although now an academic, McManus hasn't always lived in an ivory tower.

For nine years, during the height of the buildup to SUV and big-pickup madness, he was an economist for General Motors Corp, helping devise the company's sales strategies and forecasts and researching advanced technologies.

He knows whereof he speaks.

In his commentary this week, McManus says that while they argue that federal approval of California's effort to impose its own rules would create harm by requiring them to shift product mix from state-to-state, "shifting product mix (or managing demand to match supply) is one of the key reasons the automakers have geographically based sales strategies.

"With or without a nationwide standard" for greenhouse gas emissions, he writes, " the automakers will continue to use (at least) 50 different sales and promotion strategies. The point is that now they use that strategy to promote and sell large fuel inefficient vehicles."

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March 3, 2009

Scientists, Industry Group Say California Low Carbon Fuel Standard Biased

111 University and Industry Scientists Sign Letter Claiming Proposal  Penalizes Biofuels

ethanolformula.jpg Does a wide-reaching California effort to lessen global warming unwittingly give petroleum-based energy an unfair advantage over the emerging biofuel sector?

It does according to a group of 111 scientists who sent a four-page letter (with 12 pages of signatures) opposing a portion of the plan Monday to California Gov. Arnold Schwarzenegger.

The scientists, many from prestigious institutions such as Sandia National Laboratory, Lawrence Berkeley National Laboratory, UCLA and MIT, warn that the California Air Resources Board (CARB) risks penalizing the emerging biofuels industry if it adopts a proposed carbon scoring system as part of its Low Carbon Fuel Standard (LCFS).

The letter echoes concerns voiced  by the New Fuels Alliance, which represents the interests of producers of corn-based ethanol, soy-based biodiesel and developers of cellulosic ethanol and other biofuels made from feedstocks such as switchgrass, miscanthus and woodchips.

"These regulations will stifle advanced biofuels investment and derail the industry," Brooke Coleman, head of the New Fuels Alliance, said in a statement issued Monday.

"California is moving the opposite direction of President Obama, who stated in a recent speech it is critical to support advanced biofuels."

The scientists support California's legislative mandate that, by 2020, oil companies engineer a 10 percent reduction in carbon levels in fuels sold in the Golden State. That goal is outlined in Assembly Bill 32, which Schwarzenegger signed into law early in 2007.

They also agree with CARB on the need to better understand the direct and indirect impacts of producing fuel.

But they maintain that the low carbon fuel standards CARB will review in Sacramento at an April 23-24 meeting unfairly subject biofuels to an indirect land-use measure that isn't required of, say, petroleum-based fuel extracted from Canadian tar sands.

Saddling biofuel companies with that added requirement, the objecting scientists caution, "is the equivalent of picking winners and losers, which is in direct conflict with the ambition of the LCFS."

The dispute turns on a CARB proposal to incorporate the indirect effects of producing alternative fuels -- think deforestation and other potential land conversion issues that could occur as a result of increased demand for agricultural production.

The scientists acknowledge that land-use practices must be carefully studied to "ensure that future fuels dramatically reduce GHG emissions without unintended consequences."

They cautioned Schwarzenegger that singling out biofuels for hard-to-quantify indirect land-use effects would give petroleum products "a better carbon score and a competitive advantage. For drivers in California, it means they will be buying more dirty petroleum products and less of the cleaner renewable fuels."

Greg Johnson, Contributor  

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February 26, 2009

Federal Highway Commission Urges Diesel and Gas Tax Hikes, Mileage Fees

New Revenue Source Needed To Keep Highway System Working, Panel Says

MileageTax.jpg Despite the Obama administration's unequivocal rejection of the idea, a federal transportation pane tasked with figuring out how to finance future highway construction and repairs is calling for institution of a vehicle mileage tax that would have drivers pay for each mile driven.

The National Surface Transportation Financing Commission also said in its final report, issued this morning, that the nation needs an immediate but temporary increase in federal fuel taxes, now 18.4 cents a gallon for gasoline and 24.4 cents a gallon for diesel fuel.

As the economy has tanked and fuel prices have risen, people are driving less and shifting from fuel-guzzling pickup trucks and SUVs to more efficient small cars and crossovers.

The result has been a dramatic decline of the fuel taxes that provide federal highway revenue. The highway fund last year sought, and obtained, an $8 billion infusion from Congress to remain solvent.

A mileage tax, the panel said, would replace the declining gas tax revenue that is supposed to cover the federal government's share of highway and bridge construction and maintenance costs. 

The panel is suggesting an average fee of 2 cents a mile, which means a motorist driving 15,000 miles a year would pay $300, regardless of the type of vehicle driven.

Today's gas-tax funding system means motorists pay varying rates depending on their vehicles' fuel economy but almost always are paying far less than the charge the proposed mileage tax would levy.

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February 24, 2009

Associations Team To Push the Boundaries of Biodiesel - and Vehicle Warranties

Biodiesel.jpg Diesel-powered cars and trucks are gaining popularity in the U.S., and that's got many people in America's biodiesel industry all excited.

With more diesel vehicles on American roads and concern about global warming at an all-time high, sales of biodiesel in the land of the free ought to be brisk. But they aren't.

The problem, as the producers, brokers, distributors and retailers of biodiesel will tell you, is that automakers are being total party-poopers when it comes to warranty issues.

Never mind the fact that Rudolph Diesel, the inventor of the engine that bears his name, experimented with fuels ranging from powdered coal to peanut oil.

If you use a blend that contains more than 5 percent biodiesel (or less than 95 percent petro-diesel), you can kiss your vehicle warranty good-bye.

Doesn't matter if the higher blend -- say 20 percent biodiesel and 80 percent petro-diesel -- was certified to stringent standards. Most automakers will nullify a warranty the moment they learn that a blend higher than B5 has gone into the fuel tank.

The biodiesel industry says it's not right. They say 20 percent biodiesel (B20) or even 100 percent biodiesel (B100) are wonderful fuels that don't do an engine any harm.

And now two of the industry's trade groups are trying to force this issue, pointing to the Magnuson Moss Warranty Act, a 1975 federal statute governing car warranties that prohibits any automaker from voiding a car's warranty based on the type of fuel used in that car.

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February 23, 2009

Members of the Presidential Task Force on the Auto Industry Prefer To Drive Imports

Tim-Geithner.jpg The vehicles owned by the Obama administration's auto team could reflect one reason why Detroit's Big Three automakers are in trouble: The list includes few new American cars.

Among the eight members named Friday to the Presidential Task Force on the Auto Industry and the 10 senior policy aides who will assist them in their work, two own American models. Add the Treasury Department's special adviser to the task force and the total jumps to three.

The Detroit News reviewed public records to discover what many of the task force and staff members drove, but information was not available on all of the officials, and records for some states were not complete.

At least two task force members don't own a car, and there are still two open slots on the 10-member panel that will be filled by the secretaries of labor and commerce, who have not yet been appointed.

The co-chairs of the task force -- Treasury Secretary Timothy F. Geithner and White House National Economic Council Director Lawrence Summers -- both own foreign automobiles.

Geithner owns a 2008 Acura TSX. He has also owned a 1999 Honda Accord and a 2002 Acura MDX. Summers owns a 1995 Mazda Protege.

Geithner is the president's designee for purposes of enforcing loan agreements with GM and Chrysler and must approve or reject any proposed transactions by either company that would cost $100 million or more.

While we're on the subject, President Obama traded in his Chrysler 300C for a more fuel-efficient Ford Escape Hybrid during the 2008 presidential campaign, and Vice President Joe Biden owns a 1967 Chevrolet Corvette -- a wedding gift from his dad.  

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Browner Says EPA Will Rule CO2 Emissions Endanger Public, Propose New Rules

CarolBrowner.jpg Carol Browner (right ), President Obama's climate czarina, has said the Environmental Protection Agency (EPA) will soon determine that carbon-dioxide emissions represent a danger to the public and propose new rules to regulate emissions of the greenhouse gas from a range of industries.

You'll no doubt recall that Browner headed the EPA under President Clinton for nearly eight years -- the longest anyone has held that position -- and that she sits on the board of the Audubon Society, the League of Conservation Voters and the Alliance for Climate Protection. In other words, she's green through and through.

Browner, special adviser to Obama on climate change and energy, said in an interview Sunday that the EPA is looking at a 2007 Supreme Court ruling that requires the agency to determine whether carbon dioxide endangers public health or welfare, The Wall Street Journal reported today (sub reqd). And the agency "will make an endangerment finding," she said.

"The next step is a notice of proposed rule making" for new regulations on carbon-dioxide emissions, said Browner, speaking on the sidelines of the National Governors Association meeting in Washington.

Officially recognizing that carbon dioxide is a danger to the public would require the government, under the Clean Air Act, to draw up regulations governing greenhouse-gas emissions from motor vehicles, coal-fired power plants, chemical plants and other sources.

Browner said the administration is seeking to establish a national policy for tailpipe emissions that could mean tougher efficiency mandates for automakers. The White House said Sunday that the standard would be developed as part of the continuing restructuring negotiations between the government and major automakers.

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February 18, 2009

Massachusetts Joins States Contemplating Pay-Per-Mile Road Tax Plans

MileageTax.jpg By John O'Dell, Senior Edito r

Add Massachusetts to the list of states considering the idea of replacing shrinking gas tax revenue with a pay-a-you-drive tax.

We told you last month about Oregon's flirtation with the idea that motorists should pay for road upkeep based on miles driven rather than gallons of gasoline purchased.

Now the state that hosted the Boston Tea Party is toying with the idea of sticking GPS systems in residents' vehicles so it can keep track of how much they drive around the Bay State and charge them accordingly.

The Massachusetts mileage tax being talked about is fairly mild -- 25 cents per mile, or $1 for 400 miles -- and we can see the rationale, we really can.

In this wicked economy, people are driving less and/or getting behind the wheels of more fuel-efficient vehicles, and the gas tax revenue traditionally used by states to raise funds for road building and maintenance is drying up.

A Bad, Bad Thing

So why not charge road users directly for the wear-and-tear they inflict by levying a per-mile fee?

That's the reasoning, and it makes sense -- but as we said last month, we think it's a bad idea.

There's also a little issue called energy independence, and another called harmful tailpipe emissions (which covers toxic or smog-causing gunk and greenhouse gases).

As a matter of national policy we are encouraging people to jettison their gas-guzzlers and seek out the most efficient cars and trucks they can. We want plug-in hybrids and electric cars that use no oil at all.

Taxing gasoline rewards and thus encourages purchases of fuel-efficient vehicles; charging by the mile doesn't. The driver of a 15-miles-per-gallon Jeep Grand Cherokee pays the same for a 100 miles trip as the driver of a 48-mpg Prius, even though the Jeep uses more than three times as much fuel and, as a heavier vehicle, does more damage to the road surface.

Massachusetts is at least the tenth state to be contemplating the move and there seems to be little in the way of a national debate on its wisdom.

Why not a hefty hike in gas taxes with a rebate plan to ease the burden on the poorest drivers? (Another issue in a pay-per-mile scheme is that the poorest among us often are forced by housing costs to live farthest from their jobs.)

We're wondering where all the fuel-efficiency advocates who can muster millions of voices over a tenth of a point decline in the national fuel economy average have gone.  

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February 17, 2009

Plug-In Hybrid Tax Credit Update: Economic Recovery Law Boosts Numbers Eligible

We promised to come back with any necessary updates to its green car provisions once the final version of the $787-billion economic stimulus bill became available.

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Recovery plan contains more than $2 billion in tax credits to promote sales of plug-in hybrid vehicles such as this prototype Ford Escape.

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It has, and we found one significant change in the segment on tax credits for plug-in hybrids that needs to be reported (plus a typo in our earlier report that could cause some confusion). 

We added a correction in the plug-in tax credit segment of Monday's posting on the bill's benefits, but here's a fleshed-out version:

The version of the stimulus plan initially approved by the House would have started phasing out tax credits for purchasers of plug-in hybrids after the 250,000th model was sold.

The Senate version doubled the cap to 500,000 plug-ins.  But after after an intensive lobbying effort by the advocacy group Plug In America - which sent more than 55,000 letters of support for its plan to the Senate - the measure was amended again to tie the credits to individual manufacturers' s sales.

The final version, signed into law today by President Obama, says that the credits for plug-in hybrids will extend to the first 200,000 models sold by each automaker.

Depending on how many car companies start making plug-ins, that could push the total number of models eligible for the tax credits to well in excess of  500,000.

"This bill, which invests more than $2 billion in plug-in technology, will put vastly more numbers and kinds of plug-in electric vehicles on the road," said Plug In America legislative director Jay Friedland. "It will help create jobs and spur spending by incentivizing consumers to purchase the cleanest-running vehicles made today and those just around the corner."

As a refresher: The credits start at $2,500 and ratchet up by $417 for every kilowatt-hour of battery capacity on board the vehicle in excess of 4 kWh; they top out, for most passenger vehicles, at $7,500.

For  heavier plug-in hybrid vehicles - those, mostly commercial trucks, that would tip the scales at 10,001 pounds and up - the credits start at $10,000 and rise to a maximum of $15,000.

There also are provisions that give qualified aftermarket conversions that turn conventional hybrids such as the Toyota Prius into plug-ins with additional all-electric range a credit of 10 percent of the cost up to $4,000 (or a $40,000 conversion cost), and for credits of up to $2,500 for purchasers of low speed or neighborhood electric vehicles (limited in most states to top speeds of 25 mph), and electric motorcycles including three-wheeled vehicles.  

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February 16, 2009

Economic Stimulus Act Contains Good News For Green Car Advocates

(Modified 2/17/09 to reflect amendment to plug-in hybrid credit provision and to correct a typographical error in same section.)

Now that the Economic Recovery and Reinvestment Act of 2009 has passed through Congress and is awaiting the signature of the President who so adamantly has wanted it, we thought we'd revisit, as best we can, the provisions that apply directly to the green car world.

moneystack.jpg We say "as best we can" because a full and final version of the bill is still hard to find - and we couldn't.  The closest we can come is the official White House website , which has the conference committee version that was approved on Thursday, but hasn't updated it to the final version that passed both the Hue and Senate on Friday.

So here's the most accurate info we have as of this morning:

Sales Tax Deduction

There is, of course, a sales tax deduction provision aimed at stimulating new car buying in general.

It would make state sales taxes for new car purchases a federal income tax deduction and it would apply to purchases of hybrids and other fuel-efficient vehicles as well as to purchases of Hummers and Dodge Rams and Lincoln Navigators.

It won't put a lot of money in anyone's pockets, and many automakers say it isn't likely to turn things around dramatically this year, but it will help reduce tax bills for people who've got the wherewithal to buy a new vehicles in the first place and could at least keep a bid situation from getting worse.

Status Quo For Conventional Hybrids

The measure, far as we know, doesn't alter the diminishing tax credits system already in place for conventional hybrids: Up to $3,400 until an automaker sells 60,000 hybirds, then a 50 percent drop each six months until the credit disappears.

Toyota, by dint of its sales lead in the hybrid segment, had used up all of its credits by the end of 2007; Honda's disappeared on Jan. 1; Ford's start dropping at the end of March. GM and Nissan still have full credits available for qualifying models, according to the Department of Energy website that tracks such stuff.

Plug-Ins Win

The bill aims to promote development and sales of plug-in hybrids and some pure EVs, though, by instituting a new tier of tax credits ranging from $2,500 to $7,500 for a vehicle, like the upcoming Chevrolet Volt, with a battery large enough to provide 40 miles of so of all-electric drive on a single charge (the Volt uses an on-board generator to keep things humming along once the initial grid charge is depleted).

The battery pack for an eligible vehicle has to have a capacity of at least at least four kilowatt hours, and the credit increases by $417 for each additional kilowatt hour of capacity after that, topping out at $7,500 for vehicles of 10,000 pounds or less (most cars and light trucks).

For vehicles weighing from 10,001 pounds to 14,000 pounds, the maximum credit is $10,000; it jumps to $12,500 for 14,001- to 26,000-pound vehicles; and tops out at $15,000 for vehicles in excess of 26,000 pounds.

Don't Hold Your Breath, Though

Sorry to say, though, that in most instances, the money for those credits will just be sitting there for the next 23 months.

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February 10, 2009

Wagoner on Waxman and Fuel Economy: 'The Chairman Is Very Well-Informed'

RickWagoner.jpg It happened, just as we said it would earlier today : General Motors Chairman and CEO Rick Wagoner (right ) met with Democratic Representative Henry Waxman of California, chairman of the House Energy and Commerce Committee, which among other things can make life sweet or bitter for automakers doing business in the U.S.A.

GM - and Ford and Chrysler, probably all automakers come to think of it - hate being heavily regulated. For at least the past couple of decades, the Big 3 have fought efforts to regulate automotive emissions and fuel-economy standards that would force them to make cleaner, more fuel-efficient cars and trucks.

Chief among the members of Congress who've wanted tough tailpipe-emissions and fuel-economy laws is Waxman, who is a strong proponent of letting California and other states set emissions and efficiency standards, for automobiles sold in their states, that are much higher than those of the federal government.

We'd hope we'd get some colorful description of the Wagoner-Waxman sitdown, but following the meeting Waxman and his staff zippered their lips on the subject.

Wagoner spoke briefly to reporters after meeting, saying it lasted about 30 minutes in Waxman's Capitol Hill office. The discussion included talks about climate issues and other auto issues, he said.

"I appreciated the chance to sit down," Wagoner said. "Obviously, the chairman is very well-informed on the issues."

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GM's CEO to Meet With Powerful Proponent of States' Drive to Set Emissions Rules

Dingell.jpg For more than half a century, Democratic Representative John Dingell of Michigan (right ) has been the Big 3's biggest lobbyist in Washington.

He has fought virtually every bill the automakers have opposed, from seatbelts and airbags to tailpipe emissions and fuel-efficiency standards.

Dingell's position as chairman of the House Committee on Energy and Commerce for 14 years - to say nothing of his other 38 years on the committee - has given him enormous influence over such matters.

Not by sheer coincidence, General Motors, Ford and Chrysler donated at least $650,000 toward his re-election efforts during his term as chairman.

Democratic Representative Henry Waxman of California has been on the same powerful committee since 1975, listening to Dingell decry efforts to regulate harmful tailpipe emissions and the like.

Henry-Waxman.jpg Waxman (left ) bided his time until this past fall, when he was able ride a national surge for change and unseat Dingell from his perch atop the committee by a close but decisive House vote.

It was a major change at the top, to put it mildly. Waxman has been so at odds with Dingell and the Big 3 that he didn't receive so much as a dollar from the automakers in all the years he served on the committee.

It's probably a fair bet that Waxman is despised by the men who run the Big 3 - or rather, the Detroit 3 now. Certainly, Waxman doesn't hold the men in high regard.

So it would be wonderful to be a fly on the wall today, overhearing what GM Chairman and CEO Rick Wagoner (lower right) and Waxman say to one another when Wagoner pays the new chairman of the House Committee on Energy and Commerce a visit.

Word of the meeting was supposed to be hush-hush, but it leaked out. As for the subject matter, it remains confidential.

Wagoner.jpg But one thing is certain: Waxman vehemently supports efforts by California and other states to impose emissions standards that are tougher than the federal government's.

GM, Ford and Chrysler paid millions of dollars lobbying members of Congress and the Bush administration trying to crush the states' efforts. Thus far they've succeeded, but the battle isn't over.

We'll relay whatever information we're able to glean from today's Waxman-Wagoner powwow.

By Scott Doggett, Contributor  

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February 9, 2009

Nissan Joins GM, Ford, Tesla, 71 Others Seeking U.S. Funds for Fuel-Efficient Cars

Nissan-logo.jpg Nissan Motor Co. announced today that it is seeking a federal loan under a U.S. program for fuel-efficient autos.

The decision means that it is competing for U.S. funds with numerous American companies, including General Motors Corp., Ford Motor Co. and electric-car start-up Tesla Motors Inc.

The announcement came the same day as Nissan, Japan's third-largest automaker, said it intended to cut more than 20,000 jobs worldwide and shift production out of Japan as part of a broad new effort to weather the economic downturn.

Nissan, which suffered a net loss of $908 million for the quarter that ended in December,  today projected a $1.92 billion operating loss for its year ending in March.

As for the federal loan, the U.S. Department of Energy may disburse some of the $25 billion in low-cost loans to successful applicants in coming weeks, Energy Secretary Steven Chu said Friday.

Rules for the program were set in November and the agency received 75 applications for projects totaling $38 billion, Energy Department spokesman Phil West said. Of those, only 26 were "substantially complete," he said.

U.S. officials notified Nissan that its application met initial requirements, and the request entered the second of four approval stages, according to Alan Buddendeck, Nissan's U.S. vice president of communications.

Unlike the $17.4 billion in emergency federal loans GM and Chrysler LLC won to avoid bankruptcy, the $25 billion are part of 2007 legislation creating tougher fuel-efficiency rules. Any manufacturer can apply as long as the money is used to make autos at U.S. factories that produce cars with at least 25 percent better fuel economy.

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February 4, 2009

A Change in Paint Might Be the Next Big Thing in the Greening of Cars and Trucks

The New Black.jpg California is in the process of requiring a change in the chemical makeup of paints applied to vehicles sold in the state. Because the global automotive market is served by only a handful of paint companies, the change will likely affect cars and trucks sold worldwide. Above, standard black paint (left) and a major paint company's current effort at a heat-reflecting black that's much closer to brown.
 
(Note: T
his piece has been updated by an article posted on March 30, 2009. Click here to read the update.)

By Scott Doggett, Contributor

The days of raven-black cars may be coming to an end.

That's because the pigment in automotive paint that darkens colors -- carbon black -- also absorbs sunlight.

The higher percentage of carbon black in dark automotive paint is the reason why the interior of a dark-colored car parked in the sun will generally be much warmer than the interior of a light-colored car parked in the sun only a few feet away.

By reducing the amount of carbon black in automotive paint, parked cars wouldn't get so darn hot on sunny days -- and we wouldn't be so quick to turn on the air-conditioner the moment we slip inside an automobile that's been parked in the sun with its windows rolled up.

Affect-of-AC-on-Fuel.jpg Not reaching for the A/C is a big deal in California, because automotive air-conditioners account for 15 percent of the 140 billion gallons of gasoline consumed in the sunny state annually. (The air-conditioners do this by leaching horsepower away from car engines via belt-driven compressors.)

That staggering statistic has California's air-quality regulators -- who by state law must reduce the state's carbon-dioxide emissions to 1990 levels by 2020 -- taking a good look at how they can get motorists in the Golden State to curb their use of air-conditioners.

Their looking has led them to carbon black, a material produced by the incomplete combustion of coal tar and other heavy petroleum products.

If far less carbon black were used in the automotive paint applied to vehicles sold in California, the interiors of cars and trucks there wouldn't become furnaces when parked with windows closed under a hot sun.

And that means California motorists wouldn't be so quick to reach for the A/C switch, which in turn would reduce the amount of gasoline consumed -- and tailpipe emissions spewed -- in  California.

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January 28, 2009

Gore Urges Congress to Pass Obama Plan as First Step to Controlling GHGs

Al-Gore.jpg Former Vice President Al Gore is urging lawmakers not to let the economic crisis get in the way of addressing global warming.

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Former Vice President Al Gore during his Congressional years. He served in the House (1977-85) and in the Senate (1985-93).
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Testifying today before the Senate Foreign Relations Committee, the Nobel Peace Prize winner said lawmakers should pass in its entirety the economic stimulus plan envisioned by President Obama as a first step to bringing greenhouse gases under control.

The plan's unprecedented and critical investments in four key areas - energy efficiency, renewable energy, a unified national energy grid and the move to clean cars - represent an important down payment and are long overdue, he said.

"For years our efforts to address the growing climate crisis have been undermined by the idea that we must choose between our planet and our way of life; between our moral duty and our economic well being," Gore said.

"These are false choices. In fact, the solutions to the climate crisis are the very same solutions that will address our economic and national security crises as well."

He said that as long as America continues to send hundreds of billions of dollars for foreign oil year after year to "the most dangerous and unstable regions of the world," its national security will continue to be at risk.

And as long as the country continues to allow its economy to remain shackled to the OPEC rollercoaster of rising and falling oil prices, America's jobs and way of life will remain at risk, he said.

Moreover, as the demand for oil worldwide grows rapidly over the longer term, even as the rate of new discoveries is falling, it is increasingly obvious that the roller coaster is headed for a crash, he said, "and we're in the front car."

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January 27, 2009

Revised Senate Stimulus Tax Plan Boosts Incentives for Plug-In Electric Vehicles

EV-Parking-Only.jpg Energy tax provisions slated for the massive economic stimulus bill now include expanded incentives for plug-in electric vehicles that backers call a promising way to help curb reliance on oil in the transportation sector, according to a revised Senate version unveiled today.

The package now expands an existing credit for plug-in electric vehicles by doubling the number eligible to 500,000. The change reflects part of a proposal pushed by Democratic Senator Maria Cantwell of Washington and Republican Senator Orrin Hatch of Utah and others who recently introduced legislation with several provisions to expand deployment of the vehicles.

The size of the credit begins at $2,500 and expands with the amount of battery capacity. The maximum credit for vehicles weighing 10,000 pounds or less is $7,500, and higher amounts are available for heavier zero-emissions vehicles.

Plug-in vehicles are seen as a way to curb dependence on foreign oil by effectively allowing electric power to substitute for oil-based transportation fuels.

The entire package provides a suite of renewable energy and efficiency measures, such as a three-year extension of availability of tax credit for wind and some other projects, a new credit for manufacture of advanced energy-related equipment, and extended and expanded credits for energy efficient homes.

The House is scheduled to vote on its version of the bill tomorrow, and Democrats want to send a final House-Senate plan to President Obama by mid-February. The overall economic recovery plan will cost approximately $825 billion.  

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New Agriculture Secretary Says USDA Will Help Struggling Ethanol Industry

Biofuel.jpg The U.S. Department of Agriculture will help the struggling ethanol industry identify the most efficient ways to produce the alternative fuel so more plants can stay in business, Tom Vilsack said in his first news conference as agriculture secretary.

Vilsack said the USDA should research, develop and promote "best practices" to improve efficiency at corn-based ethanol plants, which have been hit hard by volatile corn prices, followed by a sharp drop in demand for the biofuel, which is more expensive than gasoline.

"We need to make sure that the biofuels industry has the necessary support to survive the recent downturn, while at the same promoting policies that will speed up the development of second- and third-generation feedstocks for those biofuels that have the potential to significantly improve America's energy security and independence," Vilsack said.

His comments came less than a week after Panda Ethanol Inc. filed for bankruptcy for a plant it owns in Texas. VeraSun Energy Corp., the second-largest U.S. ethanol producer, filed for bankruptcy protection in October, and has closed 12 of its 16 plants.

Vilsack emphasized that the USDA needs to speed up work on biofuels made from non-food plant sources, as well as develop wind energy and other renewable sources of power.

The 2008 farm bill has several measures that should be quickly implemented to boost demand for new types of biofuels, he said, including tax credits, grants and loans for converting corn-based plants to use new feedstocks.

Vilsack also vowed that the USDA would be the "national leader in climate change" debate.

"This, of course, will involve conservation, greater efficiency with the energy we have and expanded opportunities in biofuels and renewable energy," Vilsack said, reading from prepared remarks.

President Obama has said he hopes to double renewable-energy production in the U.S.  

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January 26, 2009

Obama to EPA: Re-Visit Decision Blocking California Greenhouse Gas Plan

Agency Administrator Says Action Heralds New Era in Climate Change Policy

CO2smoke.jpg

By Terril Yue Jones, Contributor

WASHINGTON -- President Barack Obama, moving early in his administration to reverse some of the Bush administration's environmental policies, on Monday directed the Environmental Protection Agency (EPA) to reconsider the previously rejected request by California to set tough new greenhouse gas emission standards of its own.

The auto industry has long opposed the idea of letting states set their own standards and is suing in federal court to block imposition of the rules that California adopted in 2006. 

If California is allowed to proceed, 13 other states that already have adopted California's tougher-than-federal standards will follow, a scenario that terrifies financially struggling automakers.

The EPA under Bush appointee Stephen Johnson had rejected California's bid for the required federal waiver to permit the state to enforce its own rules. Johnson allegedly acted under pressure from the White House after initially deciding to grant the waiver.

Obama's directive on his first Monday in office follows through on a campaign promise to improve air quality and decrease the country's dependence on energy sources from abroad, and sharply realign the country's energy policies.

It also sends a clear signal that the new president supports efforts of the 14 states, which account for more than half of U.S. auto sales, to have more control over greenhouse gas emissions.

Green Groups Cheer

Environmental groups generally applauded the move, which has been expected. Obama's new EPA administrator, Lisa P. Jackson, said during her confirmation hearing last week that she would reconsider California's waiver request.

"It's particularly impactful because it shows a strong commitment to energy and the environment," said Eli Hopson, Washington representative for the Union of Concerned Scientists.

"It's a clean break with the past administration...and [is] saying that clean vehicles are a priority for them."

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Massachusetts To Join Four Other States in Requiring Green Label for Cars, Trucks

Environmental-Performance-l.jpg Massachusetts plans to enact a law requiring environmental-impact labels for passenger cars and trucks sold in the state, bringing to five the total number of states following California's lead.

The labels rank vehicles on a scale of 1 to 10 for their smog and global-warming contributions, with 10 representing the least greenhouse-gas emissions.

Massachusetts' Department of Environmental Protection will adopt the regulations in a couple of weeks, according to Bob Keough, spokesman for the state's Executive Office of Energy and Environmental Affairs.

But unlike Oregon and Washington, whose labeling requirements are starting next month with 2009 models, Massachusetts will begin with 2010 models.

As we reported in June, California began requiring all new passenger vehicles to display the labels at the beginning of this year. Connecticut and Florida have announced they plan to follow suit.  

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January 23, 2009

Transportation Secretary Vows to Keep Fuel Economy Improvements Coming

fuelcost.jpg

Although we see CAFE - the federal minimum average fuel economy standard - as a necessary evil to control automakers' natural tendency to build 'em to be faster rather than fuel efficient, we'd rather see government using its powers to craft measures that would push consumers to demand fuel sippers instead of horsepower hogs.

If that means gas taxes or fuel economy-based registration fees, so be it.  

But telling the auto industry that it has to meet ever-increasing fuel economy averages regardless of what the market wants is the political version of ordering high-rises to be built of wet sand.

We bring this up because in his confirmation hearing this week, Ray LaHood, the former Illinois GOP congressman who was picked by President Obama to serve as Secretary of Transportation, told the Senate Commerce Committee that Obama won't "have to push me very hard" to get DOT to increase CAFE standards beyond the 35 mpg level approved by Congress in 2007.

LaHood made the comment as he was promising the committee he'd do all he could to get the first fuel economy rules in place by April 1, the deadline for implementing the initial phase of the new CAFE standards for the 2011 model year.

As part of the '07 Corporate Average Fuel Economy legislation, automakers are supposed to improve average fuel economy by 25 percent between the 2011 and 2015 model years, with the rest of the increase to 35 miles per gallon to come by the 2020 model year.

You'd think American car and truck buyers, having been stung by $4-a-gallon gas last summer and being told by many analysts to expect it to happen again and again going forward, would run screaming from the room if anyone tried to sell them a vehicle that didn't get great mileage.

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January 22, 2009

California Moves Quickly To Win Greenhouse Gas Regulation OK From Obama EPA

But EPA Administrator-Designee's Confirmation Is Being Stalled


greenhouse gases.jpg

By John O'Dell, Senior Editor

California's top air quality regulator has resubmitted to the federal EPA the state's request for a waiver needed to enable it to implement and enforce its own limits on automotive greenhouse gas emissions.

Mary Nichols, who chairs the California Air Resources Board, is attempting to win reversal of former EPA head Stephen Johnson's denial of the waiver, which is opposed by the auto industry and had been opposed by the Bush administration.

He letter was followed by a public call by California Gov. Arnold Schwarzenegger for quick action by the new Obama Administration to let his state get moving on greenhouse gas reduction.

If California wins the waiver - which was denied by Johnson under pressure from the Bush White House and against the advice of his top scientific staff - as many as 16 other states have said they plan to use the same tough rules, which would require autos and light trucks to deliver far better fuel economy than federal rues now mandate.

President Barack Obama indicated during his campaign last year that he believed California ought to have the right to regulate its own air quality, including greenhouse gases. Lisa Jackson, his nominee to head the often-embattled Environmental Protection Agency said during confirmation hearings last week that she would act quickly to reconsider the state's waiver.

New Wrinkle

Jackson's confirmation, however, is being held up in the Senate by Wyoming Republican John Barrasso, who opposed a move to seat her by unanimous consent.

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January 15, 2009

GM Says Detroit 3 Partnership Great for U.S., but Draws Line on Sharing Technology

Voltec-Top-Secret.jpg By Scott Doggett, Contributor

General Motors, Chrysler and Ford bet on the wrong horses, so to speak, regarding the kind of vehicles they made in recent years. They made ones that, generally speaking, guzzled gas and left the automakers enormously vulnerable to a sudden rise in the price of gasoline.

But American politicians, being the reelection-driven creatures that they are, weren't about to let any of the Detroit automakers go under. GM and Chrysler received bailouts. Ford hasn't asked for funds, but it has submitted a request asking that funds be on hand should they want them.

The pitch American taxpayers have been expected to swallow in exchange for billions in taxpayer dollars is that GM, Chrysler and Ford are doing everything possible now to make cars and trucks that are fuel efficient or don't require gasoline or diesel at all.

If they do this, as they have promised, they'll produce vehicles that people will want to buy, which is good for the U.S. economy, and that are cleaner burning, which is good for the planet.

Whether it's a deal you or I wanted is immaterial now. It will be a good deal for us if the automakers live up to their promise. But an entry on GM's Fastlane Blog Wednesday suggests that GM, Chrysler and Ford won't be doing everything possible to make those wonderful green cars.

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Pretzel Logic: Taxing Motorists Based on Miles Traveled, Not Gasoline Consumed

Mileage-Tax.jpg

By Scott Doggett, Contributor

In an impressive display of boneheaded thinking, Oregon Governor Ted Kulongoski is hankering to replace the state's gasoline tax with a tax based on miles driven.

Kulongoski wants motorists in the Beaver State to pay 1.2 cents for every mile they drive regardless of whether their rides chug gasoline and spew rivers of greenhouse gas, or run on electricity supplied by happy hamsters spinning wheel-generators.

Under his plan the owner of a 48-mile-per-gallon Toyota Prius would pay the same $1.20 for a 100-mile trip that consumed just a tad over two gallons of gasoline as would the owner of a 15-miles-per-gallon Jeep Grand Cherokee that sucked down almost seven gallons of fuel.

Don't laugh. Officials in North Carolina, Ohio, Pennsylvania, Florida, Georgia, Colorado and Minnesota are of like mind, as are members of  the federal commission tasked with financing the nation's transportation infrastructure.

The reason: Gas taxes used to maintain roads and bridges are shrinking as fuel-sipping cars and trucks are increasingly replacing vehicles with ruinous drinking habits. And motorists who once thought nothing of driving to the Kwik-E-Mart every time an urge for Chunky Monkey arose are giving their wasteful ways second thought.

Together, these actions lowered gasoline consumption and its resultant tax revenues a full 10 percent last year.

In turn, the drop in tax revenues has prodded Kulongoski and others to consider raising the gas tax or to develop other revenue streams, lest they find themselves up to their necks in potholes with no money to fix them. With gas consumption expected to continue its retreat, Kulongoski et al believe it's time to chuck the gas tax and come up with a brand-new, mileage-related tax.

As Adrian Moore, a member of the federal infrastructure commission, succinctly put it the other day, "the gas tax is broken, so any increase in the gas tax is just a Band-Aid."

But a mileage tax?

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January 14, 2009

EPA Nominee Pledges Agency Will Establish Federal Greenhouse Gas Regulations

ghg220.jpg "New Look" at Predecessor's Rejection of Controversial California GHG Plan Also Promised

By John O'Dell, Senior Editor

U.S. EPA Administrator-designate Lisa Jackson promised today to take a new look at California's controversial quest to set its own greenhouse gas emissions regulations for automobiles - a plan that 19 other states want to follow and that automakers vehemently oppose.

Jackson said in testimony during her confirmation hearing that she "would immediately revisit" her predecessor's decision to deny California a required EPA waiver to implement the plan mandated in a 2004 state law.

Because greenhouse gases such as carbon dioxide are caused by burning carbon-based fuels such as gasoline and diesel, improving fuel economy is the quickest way to reduce automotive greenhouse gas emissions.

The California plan would require new cars and light trucks sold in the state to achieve an average of about 42 mile per gallon by 2020, much higher than the 35 mpg average set by Congress in the latest version of the federal CAFE (corporate average fuel economy) standard.

Outgoing EPA Administrator Stephen Johnson kicked off a storm of political controversy when he denied California's waiver request last year after being advised by his senior staff that there were no reasonable grounds to do so. 

When she takes office, Jackson told members of the Senate Environment and PublicWorks Committee, "I would immediately revisit the waiver, looking at the science and rule of law and relying on the expert advice of EPA's employees in making a determination."

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Bush Administration Takes One Last Shot at Torpedoing California's Waiver Request

Ready-torpedo!.jpg In one of its final legal briefs, the Bush administration has urged a federal appeals court to reject California's bid to curb greenhouse-gas emissions spewed from motor vehicles sold in the state.

Department of Justice attorneys on Friday defended U.S. EPA Administrator Stephen Johnson's decision last March to reject California's request for a federal waiver that would allow it to set its own tailpipe emissions standards.

In denying California's petition, Johnson claimed it did not meet the "compelling and extraordinary conditions" requirement under the Clean Air Act that previously has cleared the state for setting laws of its own that are more stringent than those of the federal government, DOJ Assistant Attorney General Ronald Tenpas said.

In this instance, Johnson's decision hinged on the notion that the greenhouse-gas emissions contributing to global warming are not local or regional in nature, and therefore the state's efforts would not adequately address the climate problem, Tenpas said.

California sued the Environmental Protection Agecny last summer over Johnson's decision, and the case is now winding its way through the U.S. Circuit Court of Appeals for the District of Columbia. Final briefs are due March 6, although it is unclear what will happen to the litigation when President-elect Barack Obama takes office next week.

Obama said last month that his legal team is reviewing the California issue and he has all but said that he will grant the waiver.

"I think it is very important just to look at the history when it comes to the regulation of emissions in California," Obama said. "Consistently, California has hit the bar, and then the rest of the country has followed."

California needs federal EPA approval before it can begin to enforce a 2002 law that would require automakers to reduce carbon dioxide emissions from new vehicles by 30 percent by 2016 -- a move that automakers say would force them to boost efficiency substantially above levels already established by a December 2007 energy law.

More than a dozen other states have followed California's lead, but they, too, cannot implement their regulations until EPA signs off on the waiver request.  

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January 7, 2009

Bush Administration, Disregarding Commitment, Defers CAFE Decision to Obama

DOT logo.jpg In a reversal on President Bush's commitment to make a key decision on the issue of Corporate Average Fuel Economy standards, the U.S. Department of Transportation today announced that it will leave the decision to the incoming administration of Barack Obama.

In a brief, unsigned statement this morning, the department said it will not issue final rules for fuel economy standards for the 2011-15 model years as planned.

"The recent financial difficulties of the automobile industry will require the next administration to conduct a thorough review of matters affecting the industry, including how to effectively implement" a new energy law requiring tougher standards, the statement said without attributing it to any individual.

The energy law, enacted in December 2007, requires standards to go up 40 percent by 2020 to a fleetwide average of at least 35 miles per gallon.

The Transporation Department's National Highway Traffic Safety Administration proposed a rule for the 2011-15 model years, raising standards by about 25 percent by the end of that period at an estimated cost of about $47 billion to the automotive industry.

The Bush administration had promised a final rule by the end of 2008. But that was before the economic downturn reached crisis proportions for the industry, necessitating federal loans to General Motors and Chrysler to keep the companies afloat.

Federal law requires NHTSA to give automakers at least 18 months lead time before imposing higher standards under the CAFE program. So time remains for the Obama administration to impose higher standards for the 2011 model year -- which, under the CAFE program, begins Oct. 1, 2010.

The deadline for a final rule would be April 1.

So, after fighting environmentalists, state air-quality regulators and other responsible people who have sought new vehicle-mileage rules for years, the administration ultimately chose not to make them. On the green-car front, the Bush administration proved once again that is nothing if not consistently irresponsible.

Scott Doggett, Contributor  

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December 22, 2008

California Agency Seeks Bids to Build Fuel Stations for Hydrogen Highway Network

Arnold-Schwazenegger.jpg Most automakers say hydrogen fuel cell vehicles are least a decade away from mass production, but that isn't stopping California from soliciting bids to build fuel stations for a hydrogen-highway network .

Some of you will no doubt recall that last April the California Air Resources Board, or CARB, amended its zero-emission-vehicles mandate to require automakers selling cars and trucks in the state to make available for sale in California no fewer than 7,500 fuel-cell electric vehicles between 2012 and 2015.

That despite the fact that there are only 26 hydrogen stations in the state and not many more on the drawing boards. Additionally, not all of the slightly more than two dozen stations that do exist are open to the general public.

California is a huge market for many automakers, but without more hydrogen fuel stations the manufacturers aren't keen to mass produce hydrogen fuel cell vehicles. Likewise, fuel companies aren't keen to invest in the fuel stations until the vehicles are being mass produced.

But this past Friday, CARB issued a statement announcing it was soliciting "competitive bids from experienced and qualified teams to design, secure permits, build, maintain and operate hydrogen refueling stations to serve as part of California's Hydrogen Highway Network."

CARB will provide up to 70 percent of the cost for the design, construction, maintenance and operation of each hydrogen station. The contractor will be on the hook for making the stations operational by June 30, 2010, and keep them operational for at least three years.

The stations will be open to the public and serve both fuel cell electric and hydrogen internal combustion engine vehicles.

Governor Arnold Schwarzenegger has been a vocal proponent of the infrastructure since he signed an executive order in 2004 creating a public and private partnership to build a hydrogen highway in California by 2010. A fan of U.S. automobiles and a big believer in American ingenuity, he is pictured here driving a Cadillac.  

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Economic Downturn Will Test Obama's Vision for an Energy-Efficient Auto Industry

Time-Person-of-the-Year.jpg President-elect Barack Obama leveled a stern warning at General Motors and Chrysler last week after the federal government promised them billions to help them survive: "The auto companies must not squander this chance to reform bad management practices."

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President-elect Obama on next week's cover of Time.
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Once he takes office, the bailout will give him a tool to prod the industry to change, but it will also test his resolve as he pushes it in new directions.

Obama, after all, has been thinking out loud about the future of the American automobile industry for years, well before his presidential campaign began. He co-sponsored two bills in 2006, during his second year as a U.S. senator -- one to raise fuel economy standards, and the other to encourage the use of alternative fuels.

His writings and speeches on the auto industry suggest a keen interest in finding ways, including new technology, to improve the fuel efficiency of the cars and trucks that Americans drive.

But with Detroit in a fragile financial state, it is unclear how many compromises he will have to make in pursuing his agenda for the auto industry, as he juggles other priorities such as providing a stimulus program for the broader economy, The New York Times reported Sunday. The United Automobile Workers union, which backed Obama, will want a say in the changes he envisions for the automakers.

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December 19, 2008

Bentley Developing Ethanol-Powered Versions of Its Large-Engined Sedans

Bentley-Logo.jpg Bentley Motors is developing ethanol-powered versions of its large-engined models and plans to reduce carbon-dioxide emissions from its range by 40 percent within three years, according to an English newspaper.

The Telegraph reported that Bentley will unveil its first ethanol-powered model at the Geneva Auto Show next spring and that the automaker is negotiating with the British royal family over supplying ethanol-powered vehicles for state use.

While the luxury carmaker won't likely have to meet the European Union emissions requirements -- they've yet to be firmed up, but companies making fewer than 10,000 cars a year are expected to be exemped -- Bentley will still be subject to some demands to reduce its greenhouse-gas output.

A Bentley spokesman told Telegraph reporter Andrew English (we kid you not) that while the carmaker was focusing on ethanol in the short term, it had not ruled out fitting its automobiles with clean-diesel engines.

If you've been looking to justify spending $200,000 or more on a Bentley to your spouse, you'll soon be able to plead "But it's good for the environment!"  And good luck with that.  

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GM, Chrysler Insist They Are Proceeding With Green Plans Despite Product Delays

Chevy Volt.jpg By Scott Doggett and John O'Dell

During weeks leading up to today's bailout decision, Detroit's automakers insisted that short of a complete collapse they were continuing with their major green initiatives because they finally understand that increased fuel efficiency, clean emissions and sustainability are critical to their long-term survival.

However, General Motors and Chrysler -- both of which today received approval for federal bridge loans, while Ford continues to await a decision on a request for a line of credit -- have delayed specific programs as they prepare to battle for survival during the global economic slump.

For GM, that included delaying construction of a factory in Flint, Michigan, where the engine for the upcoming Chevrolet Volt plug-in hybrid sedan is to be made.

And Chrysler, which has promised to field a battery-electric car in 2010 and says it is also developing plug-in hybrids, was close to financial meltdown, putting those plans in jeopardy.

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December 18, 2008

Agency Says U.S. Won't Meet Biofuels Mandate, Faults Cellulosic's Slow Growth

Corn-Ethanol.jpg The U.S. will miss by a wide mark its self-imposed, year-old biofuels mandate, according to the government's top energy forecasting agency.

The country will only blend about 30 billion gallons of fuels such as corn-based ethanol into gasoline by 2022. That's about 17 percent short of the U.S. mandate of 36 billion gallons by that year, the Energy Information Administration said this week.

The U.S. enacted the mandate, known as the Renewable Fuels Standard, late last year in an effort to provide jobs and begin to wean the country off foreign oil.

The mandate calls for corn ethanol, but also an increasing amount cellulosic ethanol made from fast-growing grasses and trees, and biodiesel made from non-food sources. Cellulosic is not yet made commercially.

Howard Gruenspecht, the Energy Information Administration's acting director, said the "key risk factor is rate of development of cellulosic biofuels technology." The near-term growth of cellulosic "is certainly a question mark," he said.

This year's oil price collapse and the credit crunch have hurt many biofuel companies financially and cut the amount of fuel some of them are making.

Loopholes in the mandate that allow regulators to waive the requirements, if needed, could also result in lower blending, Gruenspecht, said.

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December 17, 2008

European Union Lawmakers Approve Watered-Down Carbon-Dioxide Limits

EU-Nations.jpg European carmakers must cut emissions of global-warming gases from new vehicles by 18 percent within the next six years, the European Parliament agreed Wednesday after a long battle between environmentalists and automakers that ultimately resulted in greatly watered-down legislation.

In accordance with the 27-nation pact, carbon-dioxide emissions from new cars will be cut to 130 grams per kilometer in a phased approach starting in 2012 and with full compliance by 2015.

Under the phase-in, 65 percent of Europe's new-car fleet must meet the target in 2012; 75 percent in 2013, 80 percent in 2014 and 100 percent beginning in 2015.

To meet the 130 grams per kilometer average, the EU will give carmakers individual targets based on the weight of their cars. The targets range from 122 grams per kilometer for Fiat and 137 grams per kilometer for BMW and Daimler.

Car companies that miss their targets will face fines that were slashed nearly in half under intense lobbying by the automakers.

The European Commission, which originates EU laws, had envisaged the full cuts to carbon dioxide by 2012 and a CO2 target of 120 grams per kilometer on average. But Germany fought hard for BMW and Mercedes-Benz, which will now be able to produce their biggest, luxury gas-guzzlers until 2014, protecting jobs and export earnings.

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December 15, 2008

California Says 'No More' to Dirty Diesels, Requires Massive Truck Cleanup

dieseltrucks.jpg Depending on how you chose to look at it, California's air regulators have struck -- or triumphed -- again.

We're going with "triumph."

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Aerodynamic, fuel-efficient, clean diesel trucks will someday be the norm on California highways.
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Just one day after giving the green light to the nation's toughest greenhouse gas emissions limits, the California  Air Resources Board late Friday approved the nation's strictest regulations on emissions from diesel big-rigs.

The short version: Older, dirtier  diesel engines will gradually be phased out starting in 2012, so that by 2023 every diesel truck operating in California -- whether the 400,000 registered in the state or the estimated 500,000 that traveling in from other states -- will have to have engines no older than the 2010 model year.

Starting a year earlier, in 2011, trucks also will have to be fitted with the newest diesel emissions filters to slash emissions of smog-causing and toxic pollutants.

Trucks and trailers also will have to be shod in low-rolling-resistance tires and sport aerodynamic bodywork to help them slip through the air with less resistance, improving their fuel-efficiency and cutting down on their greenhouse gas emissions.

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December 11, 2008

California Regulators OK Plan for Implementing Controversial GHG Regulations; Plan Seen By Some as Precursor to National GHG Limits Under Obama EPA

ghg220.jpg By John O'Dell, Senior Editor

A greenhouse gas reduction plan scorned by the Bush Administration but now seen as the potential blueprint for an Obama Administration EPA to follow was approved today by California air quality regulators to applause from environmentalists and criticism from business groups.

The California Air Resources Board voted unanimously to approve the so-called scoping plan, or implementation blueprint, for the state's controversial greenhouse gas regulation plan.

The law, calls for greenhouse gas emissions generated within the state in 2020 to have been reduced to 1990 levels - a 30 percent cutback - and targets automotive emissions of carbon dioxide and other heat-trapping gases for a major portion of the reduction.

Because greenhouse gases from motor vehicles are directly related the amount of carbon-based fuel that is burned, the most practical way of reducing them is by improving vehicle fuel economy.

Automakers have roundly opposed the rule, often called by its legislative title, Assembly Bill 32, and claim it would require 42 mpg average fuel economy for all passenger vehicles sold in California in 2020.

That's almost twice today's average fuel economy and is 20 percent higher than the national standard of 35 mpg in 2020 set last year by Congress.

The California greenhouse gas plan, which also calls for establishment of a cap-and-trade system for buying and selling carbon emission credits, could foreshadow a national plan because Obama as a presidential candidate supported California's right to set its own regulations despite the refusal of the present administration's Environmental Protection Agency head to permit the state to move forward.
  
"We're very pleased to be able to offer this sample of what we think can and should be done in Washington by the new administration," CARB Chairwoman Mary Nichols said shortly after the plan was approved.

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Obama's Choice to Head U.S. Department of Energy Is a Big Proponent of Biofuels

Steve-Chu-400x267.jpg By John O'Dell and Scott Doggett

Steven Chu, President-elect Barack Obama's choice to head the Energy Department, has been a strong advocate of alternative fuels and a vociferous opponent of fossil fuels -- foreign oil in particular -- for years.

Most recently, the scientific interests of the 60-year-old Nobel laureate and director of the Lawrence Berkeley National Laboratory have centered on energy and finding ways to replace fossil fuels with other energy sources such as biofuels from plants.

But Chu seems to be at odds with Obama on the role of corn-based ethanol in America's future. The domestic ethanol industry had a huge friend in Obama for most of the past year, while Chu has never been a friend to corn-ethanol producers.

On a segment on PBS' The News Hour  last year, Chu said "corn, at best, is a transition crop, but very quickly we want to transition away from corn to a grass that requires far less land for the amount of fuel, far less fertilizer, far less water."

Chu sees tremendous promise in other biofuels, particularly biofuels that would propel automobiles. In an interview with an Australian radio personality last year, he said transportation fuel is the most valuable form of energy we have -- even when that fuel is electricity.

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December 10, 2008

Auto Industry Bailout Won't Make Carmakers Drop Opposition to GHG Rules

We like to see a good fight and we're not opposed to the idea that states that don't want to wait for a know-nothing federal agency to take action should be able to impose greenhouse gas regulations of their own.

greenhouse gases.jpg So it is with some degree of sadness that we report that there's no more "don't sue" provision in the auto industry bailout measure that may or may not get voted on sometime today, or tomorrow, or ...., well, you get the idea,

The provision at issue would have required the domestic auto companies seeking federal bailout funds to agree to drop their suits against California's controversial AB 32.

That's the measure that establishes goals that would, if implemented, require automakers to dramatically slash emissions of carbon dioxide and other heat-retaining gases (the greenhouse gases).

The only way to do that with present technology is to increase vehicle fuel economy (the gases are produced as carbon-based fuels are burned). The last numbers we saw suggested that the average new passenger vehicle sold in California by 2016 would have to be achieving 42 miles per gallon.

That didn't make automakers happy, and what really got them going is that, with the federal EPA under the Bush Administration dithering and dallying and refusing to set a national GHG standard, a whole bunch of other states said they would adopt the California rules in the absence of federal action.

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Law Should Be Changed to Let Detroit 3 Sell in U.S. Cars Now Only Sold in Europe

2009-Ford-Ka-1200-x-800.jpg In all their talk of Detroit's need to make fuel-efficient vehicles, members of Congress managed to overlook a simple fact: General Motors and Ford already make popular, high-quality, high-mileage automobiles.

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The 2009 diesel-powered Ford Ka, available in Europe but not the U.S., gets 60 miles per gallon.
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The trouble is, those very desirable vehicles are sold only in Europe because of regulatory differences between the U.S. and the European Union. So says an article published in The New York Times.

The automakers' reluctance to sell those cars domestically is not as simple as the vehicles' inability to meet U.S. standards for equipment, safety and exhaust emissions; there's also the cost involved in the certification process. Changing the law to allow the U.S. sale of cars compliant with European emissions and crash standards, even for just a few years, would allow GM and Ford to quickly add some of their popular, high-mileage European models to their lineups in America.

It's reasonable to think that within a year, the Times reported, GM could import the tiny Opel Agila, the sporty Chevy Spark, and the midsize Opel Insignia, which won the 2009 European Car of the Year award. Ford's improved lineup could include the Ka subcompact, the universally praised Fiesta and the S-Max minivan, which blows the sliding doors off any current domestic competition.

Crash testing for new cars, often referred to as New Car Assessment Programs, varies by geographic region, though a 10-year plan is in place to define a global standard. The NCAP test results, summarized in the United States in easy-to-grasp star ratings (five is best, one is worst), provides useful information for consumers, though it is not the same as the federal tests conducted by automakers to certify new models before they can go on sale.

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Tesla Says It Won't Make Sedan or Build Factory Without $350 Million in Federal Aid

Tesla-Roadster-1200-x-600.jpg The fate of Tesla Motors' next generation all-electric sedan rests in the same pot of federal money lawmakers want to use to bail out General Motors and Chrysler.

The maker of the $109,000 Roadster electric sports car (right) is seeking $350 million in low-interest government loans to develop a $57,499 four-door plug-in electric sedan tentatively called the Model S, CEO Elon Musk told Bloomberg news service Tuesday. The company won't build a planned $250 million manufacturing facility in San Jose, California, for the new car without the aid, he said.

You may recall that on Nov. 21 we reported that the young Silicon Valley electric-vehicle maker had applied for about $400 million of a multi-billion government loan package designed to help automakers produce more efficient vehicles and meet new fuel economy standards.

And, you may recall that on Nov. 3 we reported that Tesla's directors had approved $40 million in convertible-debt financing to step up production of the Roadster and the Model S and to expand its battery-electric powertrain sales unit. We were told that most of Tesla's major investors had pledged a combined $40 million to ensure that amount would be met.

But according to Bloomberg, Musk said the recently completed $40 million debt offering "wasn't very easy."

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December 9, 2008

Oregon Turns to China, Japan and Buffett in Bid to Be Primary U.S. EV Launch State

Ted-Kulongoski.jpg Oregon Governor Ted Kulongoski's recent sweep through China and Japan appears to have paid dividends for his bold bid to make his state America's primary launching pad for electric cars, according to an article published today by Climate Wire (subscription required).

Kulongoski (pictured), a two-term Democrat, went to Asia last month with the express purpose of attracting Asian carmakers to Oregon. He returned with a deal in hand from Nissan Motor Co. to provide electric vehicles to the state fleet starting in 2010 and a tentative commitment from a fledgling Chinese company to start a pilot program in Oregon.

And while the deal with Nissan and related talks with Toyota Motor Co. may have won the governor the most press, the meetings with BYD Auto Co., a Chinese battery manufacturer turned electric-car outfit, may ultimately do more to position Oregon as a leader in the low-emission vehicle market.

"We want Oregon to be the launch site for electric cars," Jillian Schoene, a Kulongoski aide who traveled with the governor through Asia and took part in meetings with BYD, told Climate Wire. "These car companies knew that about us before we walked into their door."

BYD, which stands for "Build Your Dreams," is shopping for a U.S. pilot site to roll out its hybrid plug-in sedan, the F3DM, which goes on the market in China in less than two weeks. Oregon could emerge as the ideal test market, given Kulongoski's vision of charging stations every 60 miles on the highway, not to mention Pacific Power's direct connection to the Chinese battery maker.

The utility, based in Redmond, Oregon, is owned by a subsidiary of Warren Buffett's Berkshire Hathaway, MidAmerican Energy Holdings, which bought a 10 percent stake in BYD this fall for $230 million. That relationship could propel the Portland area past Los Angeles, the other U.S. city in the running for the project.

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Automotive Bailout Talks Heat Up Over States' Desire to Regulate Tailpipe Emissions

greenhouse gases.jpg Congressional Democrats crafting an auto industry bailout are pushing to include language requiring carmakers to drop their legal challenge to an attempt by more than a dozen states to regulate climate-changing emissions from motor vehicles.

A Democratic draft bill would require that Detroit carmakers who receive a portion of the bailout to drop their lawsuit against state efforts to enforce greenhouse-gas tailpipe restrictions on cars and trucks. The bill would prevent the carmakers from participating in "any legal challenge (existing or contemplated) to state laws concerning greenhouse-gas emission standards."

Longtime supporters of California's request for a waiver from the U.S. Environmental Protection Agency to enforce such restrictions, which when granted would permit other state's to adopt California's car-emissions rules, are promoting the provision. Democratic Senator Barbara Boxer of California, who heads the Senate Environment and Public Works Committee, is among them.

One of the reasons the auto industry is in trouble is their fight against the waiver, Boxer told reporters Monday. Meeting California's tougher-than-federal emissions standards is in the automakers' best interests, she said.

But Republicans and auto industry supporters say the provision is unnecessary and counterproductive.

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Some Forecast $1-a-Gallon Gas in U.S. as Demand for Fossil Fuel Continues to Fall

$1 Gas.jpg The U.S. Department of Energy said Monday that pump prices are headed toward five-year lows nationally, and some analysts believe the slide might not end before gasoline drops to $1 a gallon or less.

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Are signs like this one on the horizon? Some analysts think so.
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So says an article in today's Los Angeles Times.

"I don't see any reason why $1 gasoline isn't possible, and $25-a-barrel oil is not out of the question," Phil Flynn, vice president and senior market analyst for the Alaron Trading Corp. in Chicago, told the newspaper. "I don't think the downside is over. There is a lot of surplus oil out there."

But Fadel Gheit, senior energy analyst for Oppenheimer and Co., is one of the analysts saying that oil won't stay down, even if the historic price drop isn't quite over yet.

Gheit said that "some of the same clowns who were predicting $200-a-barrel oil a few months ago are in the crowd predicting $25 a barrel. But just as we believed that oil above $100 was not sustainable by market fundamentals, oil below $30 isn't sustainable either."

He noted that even in the midst of a global recession, the world is still using 80 million barrels of oil a day.

The Times article is well worth reading and comes just a few days after Geoffrey Styles, managing director of an energy and environmental strategy consulting firm, gave some historical context to gasoline prices in his Energy Outlook blog.

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December 8, 2008

Detroit's Second Trip to D.C., by Autos Instead of Jets, Still Not Very Fuel-Efficient

Chrysler-Aspen-Hybrid-SUV.jpg As she watched the chief executives of the Big Three American automakers drive to Washington to plead for a bailout last week, Libby Rosenthal could not help noticing the gas mileage of the "fuel-efficient" vehicles they used to make the trip from Detroit to demonstrate their green goodwill weren't all that fuel-efficient.

In a short piece published in The New York Times today, the regular contributor noticed that Chrysler CEO Robert Nardelli chose to ride in a Chrysler Aspen Hybrid (pictured). That model, she correctly stated, gets 20 miles per gallon in the city and 22 mpg on the highway (and, though it launched only months ago, has already been discontinued due to low demand).

Alan Mulally of Ford arrived in an Escape Hybrid SUV (34/31 mpg city/highway), and General Motors' Rick Wagoner arrived in a Chevrolet Malibu Hybrid sedan (26/34 mpg city/high).

"What's wrong with this picture?" she asked. "For starters, although these vehicles may be hybrids, by any real-world standard they are not particularly fuel-efficient. Hybrid technology can only do so much to improve the gas mileage of a huge, heavy, overpowered car."

Ouch. She offers a reality check for those who would like to compare: The Toyota Prius -- a hybrid -- 48/45 mpg city/highway.

And she alludes to a claim by Bob Lutz, GM's vice chairman for global product development, that meeting the federal fuel-economy standards included in the 2007 energy bill would cost the consumer an additional $6,000 per car, on average. Seems like a lot of money, given the plethora of cars on the global market right now that best the fuel-economy mandate.

Traveling by not-so-efficient automobiles instead of a corporate jet -- the mode of transportation the three CEOs chose last month when they first came to Washington to plead for taxpayer dollars -- was a change for the better. But, she writes, it still shows how far American automakers have to go to match what's being done elsewhere around the globe.  

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New Gas Tax to Boost Fuel Efficiency a 'Mistake,' Obama Says, Favoring Incentives

Meet-the-Press.jpg President-elect Barack Obama opposes boosting taxes on gasoline to keep consumers away from gas-guzzlers and to raise funds for alternative energy programs.

"Putting additional burdens on American families right now I think is a mistake," Obama said during a "Meet the Press" interview with Tom Brokaw that aired Sunday, citing the current jobs and housing woes.

"What we have to do long-term is make sure that we have an energy strategy that focuses on fuel-efficient cars, that focuses on providing incentives for fuel-efficient cars. Same applies to buildings," Obama added, noting he plans to make building efficiency part of an upcoming stimulus plan.

Brokaw asked the president-elect about bumping gasoline back to $4 per gallon to fund alternative energy and to signal to consumers that the days of filling the tank cheaply are gone.

Some energy experts, including New York Times columnist Tom Friedman, support a gasoline price "floor" to keep drivers and automakers away from SUVs and similar vehicles, and to prevent new technologies from being undercut by falling energy prices.

Gasoline prices have dropped sharply in recent weeks and months, and Sunday the national average was $1.73 per gallon, far below the peak average of more than $4.11 per gallon last July.

Obama supports higher investments in alternative fuels and vehicle technologies, incentives for fuel-efficient cars and increasing the corporate average fuel economy standards for cars and trucks.

Click Video to watch the videotaped interview. Or, read the entire transcript of the show, or go to the next page to read just the portion that pertains to the automotive industry.

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Canada to Permit Low-Speed EVs on Roads Throughout Country's Largest Province

Flag of Ontario.jpg Ontario, Canada's largest province by population and second largest province by size, will soon permit low-speed electric vehicles equipped on public roads.

The zero-emissions vehicles can be driven on public roads under rules to be released this winter, the Canadian government announced on Friday.

The decision follows the recent release of a study by the National Research Council Canada, which found that low-speed electric vehicles can be driven safely on public roads as long as they include a number of additional safety requirements (headlights and seat belts among them) and obey road restrictions.

In Canada and neighboring U.S.A., low-speed vehicles are defined by authorities as motorized vehicles that can go at least 1.2 miles at 20 miles per hour and have a top speed of 25 mph on a level paved road. They are not required to meet crash-test conditions.

To date, at least 43 U.S. states and the District of Columbia allow low-speed vehicles to be used on roads with speeds not exceeding 35 mph. At least 13 states require that the vehicles be electric. In Canada, all of the vehicles must be powered by an electric motor.

In Canada, currently available low-speed vehicles are designed only for use in controlled environments such as parks and college campuses because they do not meet federal passenger car safety requirements.

In case you were wondering: Ontario, its flag shown above, is the second-largest Canadian province after Quebec. Nunavut and the Northwest Territories encompass larger areas but are not provinces.  

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December 5, 2008

Portland Officials Face Storm for Using $7-Per-Gallon Made-in-Oregon Biodiesel

Portland-City-Seal.jpg By Scott Doggett, Contributor

While most everyone else is saving money at the pump these days, city officials in Portland, Oregon, are filling up city vehicles with biodiesel costing almost $7-per-gallon -- and racking up fuel budget overruns near $300,000, to boot.

Adding to problem: Recent research that suggests that canola-based biodiesel isn't all that green.

That possibility didn't occur to city officials two years ago, when they entered into a contract with Oregon farmers to buy canola-based biodiesel from them in an effort to kick-start a local biofuel industry.

Since then, the cost of canola has skyrocketed while the cost of soy and other biofuel-based commodities have not. The result: the city is paying twice for its canola-based biodiesel what it could be paying for soy-based biodiesel.

The practice isn't helping the city's bottom line one bit. Its Office of Transportation is between $260,000 and $320,000 over budget as a result.

Commissioner Randy Leonard, who spearheaded the buy-local contract, says the expensive biodiesel accounts for just five percent of all city fuel and he insists it's worth paying more to reduce dependence on foreign oil and create a new clean industry in Oregon.

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It's Detroit's Invaluable Green Automotive Technologies That Are at Stake, Congress

Green-Thoughts.jpg A lot has been written in recent days about the job losses and economic damage that would result if Washington chooses not to offer the General Motors, Ford and Chrysler financial aid.

James E. Malackowski, president of a merchant bank specializing in intellectual property financial products and services in Chicago, says there's something else at stake.

In an opinion piece published in The Detroit News this week, Malackowski states that the value of the automakers' green technologies is great and would likely be lost to the U.S. if they went out of business.

"There is far more at stake in this debate than just the future of Detroit and the U.S. auto industry," he wrote. "The fate of vital green and energy intellectual properties is at risk, too. When it comes to the Big 3, it's the technology, Congress."

The piece is well worth the time it takes to read it. It can be viewed by clicking on DetNews.com or by going to the next page.

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December 4, 2008

Battery Makers Say Washington Must Do More to Help U.S. Electric-Car Industry

Made-In-China.jpg Unless Washington raises a new manufacturing backbone for green vehicles, a panel of battery makers said Wednesday, Americans had better get used to seeing this label on their low-emissions cars: "Not made in the U.S.A."

That's because the credit tap has run dry in America and many of the parts American automakers are buying for use in tomorrow's ultra-fuel-efficient and alternative-fuel cars and trucks are manufactured abroad.

Speaking at an Electric Drive Transportation Association conference in Washington, D.C., the panelists said the automakers will continue to buy parts from abroad--up to 90 percent of the parts they need, according to one estimate--as long as there's no low-cost way to make them in America.

And though their emphasis was on the energy storage systems that will power hybrids and electric vehicles, the problem doesn't end there. It runs through the entire supply chain, the panelists said.

Take the scenario of Michael Andrew, government affairs director for Johnson Controls-Saft, a joint venture between U.S.-based Johnson Controls Inc. and French battery maker Saft.

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USDA Offers Loan Guarantees for Non-Corn Biofuels, Up to $250 Million Per Project

USDA_logo.jpg The U.S. Department of Agriculture is seeking to support up to four advanced biofuel projects with up to $250 million in loan guarantees per project.

The USDA defines advanced biofuels as fuels that do not use corn as a feedstock.

The program provides loan guarantees for the development, construction and retrofitting of viable commercial-scale biorefineries producing advanced biofuels. Preference will be given to projects where first-of-a-kind technology will be deployed on a commercial scale.

Applications will be accepted through the remainder of this month for loan guarantees first half of Fiscal Year 2009. Applications must be submitted between March 1, 2009, and April 30, 2009, for the second half of the fiscal year.

In a statement explaining the program, the USDA states that cellulosic ethanol production--a key next-generation biofuel--may be produced from switch grass, corn stover, forest waste, fast-growing trees, woodchips, canola, algae and other plant material rather than from the edible part of crops such as corn.

"These energy crops require further research and development, but they represent a key long-term component to a sustainable biofuels industry," the statement says. Clearly, someone at the USDA is keenly aware of the plethora of studies that have come out against ethanol production the past year. 
 
The loan guarantees are available under the Biorefinery Assistance Program, authorized by the Food, Conservation, and Energy Act of 2008 (also known as "the farm bill").  

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Plug-In Electric Vehicle Proponent Proposes Automakers Pre-Sell PHEVs and EVs

Felix-Kramer-CalCars.jpg Spend more than a few minutes speaking with Felix Kramer about electric cars and very quickly you wonder if he might be a genius who's ahead of his time.

Like Better Place CEO Shai Agassi, Kramer (right) isn't afraid to think big when it comes to plug-in hybrid electric vehicles and straight electric vehicles. And this week Kramer--founder of the  California Cars Initiative, a Silicon Valley-based nonprofit organization that promote 100+ miles-per-gallon PHEVs--proferred a really big idea.

In emails sent to autowriters and at an electric-drive-transportation conference in Washington, D.C., he proposed that automakers be encouraged to accept $10,000-per-vehicle deposits on highway-capable PHEVs and EVs fitted, naturally, with at least 4-kilowatt battery packs to qualify for existing tax credits.

In return, the automakers would be obligated to deliver the vehicles as soon as possible but no later than Dec. 31, 2012. The sooner the carmakers issue preliminary specifications and maximum prices for the vehicles, the sooner they become eligible to collect prepayments.

What's more, any automaker that wants to receive federal loan guarantees beginning in January 2009 must commit by the end of this year to have at least one eligible plug-in vehicle for sale by the end of 2010 in volumes greater than 10,000.

There's a lot more to Kramer's plan than that, including this nugget: "We aim to enlist five million pre-purchasers. At an average of $10,000, this will generate $50 billion for carmakers. Buyers will get the money back in less than a year via tax credits. Credits for deposits made by 4/15/09 can be counted for the 2008 tax year."

It's a compelling proposal. It can be read in its entirety at CalCars.org or on the next page.

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December 3, 2008

DuPont CEO Proposes Detroit 3 Collaborate on 75-MPG Butanol 'Car of the Future'

Chad-Holliday-300x250.jpg The chief executive of chemical giant DuPont has called on America's major automakers to band together to create a butanol-powered, highly fuel-efficient "car of the future" within the next two years.

The endeavor could be called the Detroit Project, DuPont Chairman and CEO Chad Holliday (left) said in an address before the Detroit Economic Club on Tuesday, and would be led by General Motors, Ford and Chrysler in a collaboration akin to the atomic-bomb-making Manhattan Project of World War II.

The car that Holliday proposed would be powered with butanol, which is a solvent and biofuel made by DuPont. At 85 percent strength, butanol can be used in cars designed for gasoline without any change to the engine (unlike 85 percent ethanol) and it contains more energy than ethanol and almost as much as gasoline. It can also be used as a blended additive to diesel fuel to reduce soot emissions

"This is a unique time in history," Holliday said. "It just seems like this is the one window when you can pull something like this off."

The project would require $5 billion in seed money, he said, which could be raised by selling U.S. bonds similar to the way the government raised money for the war effort during the 1940s. The project would yield a strong return on investment, he said, and calling upon citizens to invest in the effort would "build some national pride around the project."

While the Detroit 3 would comprise the core of the project, other companies would bring "a different mindset and different answers" to it. He named Intel, Microsoft, Dell, Boeing and Google as possible collaborators, adding that he had not approached any of them with his idea.

Scott Doggett, Contributor  

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Hawaii Governor Unveils Plan to Create EV Recharging Network for Islands by 2012

Better-Place-Logo.jpg Hawaii's governor has unveiled a plan to create an alternative transportation system for the islands based on plug-in electric vehicles with swappable batteries and a battery-recharging network.

The plan put forth by Republican Governor Linda Lingle calls for creating a public-private partnership with Better Place to create 70,000 to 100,000 recharging points that would support the zero-emissions vehicles expected to be available after 2011. Hawaii's biggest utility, Hawaiian Electric, will aid in the rollout.

Lingle said the arrangement with Better Place of Palo Alto, California, will "help Hawaii get off its extreme oil addiction," which costs the state $7 billion a year.

The plan, which is the brainchild of Better Place CEO and former software executive Shai Agassi, is intended to overcome the major hurdles to electric vehicles: slow battery recharging and limited availability. The latter challenge is particularly daunting, and Better Place has yet to line up financing for the $75 million to $100 million needed for the Hawaii venture.

Tuesday's announcement follows earlier Better Place endorsements from Israel, Denmark, Australia, Renault-Nissan and a coalition of Northern California localities supporting the idea. The California company plans test deployments of vehicles in 2009 and broad commercial sales in 2012.

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Florida Commission Says State Should Adopt California Greenhouse Gas Rules

Florida took the first step Tuesday in joining the list of states that are choosing to follow California's lead on regulating automotive greenhouse gas emissions in the wake of the Bush Administration EPA's refusal to set a national standard.

ghg220.jpg Despite fierce opposition from automakers, the Florida Environmental Regulation Commission voted 6-1 to adopt the California standard, which calls for rolling back automotive greenhouse gas emissions by about 30 percent over a seven-year period.

The commission's action must be ratified by the Florida legislature, which will consider the matter in March.

Gov. Charlie Crist had asked the commission and legislature to adopt the California rules in the face of growing concern over the impact of automotive emissions of carbon dioxide and other exhaust gases that help trap heat in the atmosphere and are believed to be a major contributor to global warming.

Commissioners were told that vehicle emissions account for almost 40 percent of Florida's greenhouse gas production.

Greenhouse gases are a direct product of the combustion of carbon-based fuels and thus are linked directly to vehicle fuel economy: the less gas or diesel burned per mile traveled, the less greenhouse gas emitted.

California regulators have estimated the rules would require new cars and trucks sold in California to achieve an average fuel economy of 42 miles per gallon by 2016.

By comparison, new federal fuel economy rules imposed by Congress late last year require a 35 mpg national average by 2020.
 
Automakers have campaigned nationally against the idea of a state-by-state approach to regulating the gases, maintaining that the mix of cars and trucks sold in each state is unique and that it would be financially ruinous to force them to tailor their vehicles' fuel economy characteristics to individual state demands.

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December 2, 2008

Chrysler CEO, Seeking $7 Billion From Congress, Has Big Plans for Electric Vehicles

Robert_Nardelli.jpg Chrysler today submitted a plan requested by Congress detailing its business case for receiving government funding as part of a bailout for the struggling auto industry.

The Chrysler Viability Plan.pdf  seems to some of us to paint a picture of a corporation that's struck an iceberg and may soon reach its final resting place, deep under water, despite the valiant efforts of its captain.

The captain would, of course, be Robert Nardelli (le