Operators balk at having to comply with a California requirement to install costly nozzles and hoses to capture fumes. The governor calls on the Legislature to delay enforcement by a year.
James Hosmanek, an ex-Marine, has operated his San Bernardino Chevron station for 21 years, patiently installing equipment to control gasoline emissions, even as the region’s air grew smoggier.
Now he says he can’t, and won’t, obey the latest mandate: a state order to buy sophisticated nozzles and hoses to capture more of the vapors that cause respiratory disease and cancer. “It may be necessary to protect public health,” he says. “But it’s unaffordable.”
Today is the deadline for California’s 11,000 gasoline stations to comply with the nation’s most stringent controls on the fumes that seep from refueling cars. And Hosmanek is among the estimated one of five station owners who have joined an open rebellion against air pollution authorities.
Last week, spurred by a high-decibel campaign by gasoline trade associations, Gov. Arnold Schwarzenegger called on the Legislature to delay enforcement by a year.
“Improving California’s air is of the utmost importance,” he wrote legislators. But “enforcement flexibility is an absolute necessity to ensure against the job and financial losses that could come from stations being shut down or fined for non-compliance.”
If the Legislature agrees, it would be the second time in the last two months that business interests have succeeded in rolling back a major pollution regulation. In February, a measure was added to the state’s budget package allowing construction firms to delay retrofitting diesel bulldozers and other equipment.
A campaign against the measure in recent weeks was laced with misleading information, according to officials with the California Air Resources Board. One alert mailed by the Responsible Clean Air Coalition, a group led by a former John McCain campaign staffer, Tom Kise, charged that, “On April 1st, more than 6,000 gas stations statewide are going to shut their doors because of zealous Sacramento bureaucrats.”
But in a letter to legislative leaders Friday, local air pollution districts charged with enforcing the rule said, “Air districts do not intend to shut down any stations on April 1.” Station owners have known about the deadline for four years, the letter said.
Battered by competition from cheaper chains such as Thrifty and Arco, the 51-year-old businessman said he was refused credit by banks and equipment lenders. Refitting his eight nozzles and hoses would cost more than $60,000, he said. “Even if I could get the funding, I couldn’t make the payments.”
Single-station owners like Hosmanek aren’t the only ones hurting. David Berri, an Irvine businessman whose family owns 22 stations in Orange, San Diego and Los Angeles counties, said he put a 25% deposit on vapor equipment last year. But his bank has since canceled his credit line. His family has put seven stations up for sale, but so far, there are no buyers.
MOUNT PLEASANT, S.C. — Boat owners are abandoning ship. Gary Santos, a Mount Pleasant, S.C., councilman, checks a state notice on a forsaken sailboat. They often sandpaper over the names and file off the registry numbers, doing their best to render the boats, and themselves, untraceable. Then they casually ditch the vessels in the middle of busy harbors, beach them at low tide on the banks of creeks or occasionally scuttle them outright.
The bad economy is creating a flotilla of forsaken boats. While there is no national census of abandoned boats, officials in coastal states are worried the problem will only grow worse as unemployment and financial stress continue to rise. Several states are even drafting laws against derelicts and say they are aggressively starting to pursue delinquent owners.
“Our waters have become dumping grounds,” said Maj. Paul R. Ouellette of the Florida Fish and Wildlife Conservation Commission. “It’s got to the point where something has to be done.”
Derelict boats are environmental and navigational hazards, leaking toxins and posing obstacles for other craft, especially at night. Thieves plunder them for scrap metal. In a storm, these runabouts and sailboats, cruisers and houseboats can break free or break up, causing havoc.
Some of those disposing of their boats are in the same bind as overstretched homeowners: they face steep payments on an asset that is diminishing in value and decide not to continue. They either default on the debt or take bolder measures.
Marina and maritime officials around the country say they believe, however, that most of the abandoned vessels cluttering their waters are fully paid for. They are expensive-to-maintain toys that have lost their appeal.
Lt. David Dipre, who coordinates Florida’s derelict vessel program, said the handful of owners he had managed to track down were guilty more of negligence than fraud. “They say, ‘I had a dream of sailing around the world, I just never got around to it.’ Then they have some bad times and they leave it to someone else to clean up the mess,” Lieutenant Dipre said.
Florida officials say they are moving more aggressively to track down owners and are also starting to unclog the local inlets, harbors, swamps and rivers. The state appropriated funds to remove 118 derelicts this summer, up from only a handful last year.
In South Carolina, four government investigators started canvassing the state’s waterways in January. They quickly identified 150 likely derelicts.
Click here to read the entire report on this emerging problem.
The Carpocalypse has forced automakers to try and entice nervous buyers by offering to remove the burden of a car payment should consumers lose their jobs or worse. But which plan’s the best?
All three plans on their own are pretty confusing. Combined, all three are just a mess of different offerings of help in case you lose your job. Each offers different results for different scenarios. So, in order to make this understandable, we’ve broken down each plan and their specific option sets to allow you an opportunity to determine which will work best for you.
For starters, all three programs offer some combination of two different types of help for people facing a personal economic crisis: negative equity coverage and payment assistance. Let’s define some of these terms:
Equity: The amount of investment in an asset.
Negative Equity:This is when the amount owed on something is greater than the total value of the asset itself. In terms of cars, this means you owe more on the car than the car itself is actually worth. This is the opposite of positive equity. Positive equity would be when you have a car and you owe $2,000 but it is worth $9,000 on the used car market. In this case, you probably shouldn’t try to turn it in. Instead, if you’re smart, you’ll just sell it.
Negative Equity Coverage: This is a form of coverage that depending on the level provided, allows you to be forgiven up to a certain amount of monies still remaining in payments on the car. Each plan is different, ranging from several thousand dollars to zero.
Payment Assistance: Assuming you lose your job, the automaker will either take over payment for a certain period of time or payback the lender.
Click here to read the wonderful analysis from our friends @ Jalopnik.
For those who are impatient and wait, the winner is Hyundai (there are a lot of caveatsto this selection). You are better advised to read the whole analysis before starting to agree with the result. For those who are absolutely impatient and can’t wait to read the elaborate analysis here is the summary of comparision.
Japanese tollroads have put into effect discounted tolls under a huge subsidy program from the central government. The discounts came into effect on bridges March 22 and on most expressways March 28. The discounted tolls were a centerpiece of an economic ‘stimulus package’ prime minister Taro Aso announced last October.
The traffic stimulus measure is touted as helping revive highway travel which is down about 4%, and to revive associated spending on gasoline and diesel fuels, car service, hotels, new cars and electronics. However it is also obviously influenced by lobbying and PM Aso’s desire for public acclaim.
The measure announced as lasting two years and Y500b ($5b) has been set aside in a supplementary Japanese Government budget, but the subsidy program may end up costing a whole lot more. Meanwhile airline and rail interests complain the measure will take customers away from them.
The most spectacular discounts come on the interurban ticket or trip-based toll system run by the three regional expressway companies. Here a maximum toll of Y1000 ($10) is now in effect weekends and holidays for vehicles equipped with a transponder. This greatly encourages long trips by car.
Shinkansen or ‘bullet train’ bookings are expected to drop away.
Tokyo to northern Honshu, for example, a distance of over 400 miles (700km) normally costs about Y14k ($140) for a car but will be tolled the new maximum Y1000 toll or $10 at weekends. There are also major savings on a popular interurban run between Tokyo and Nagoya of 325km (200 miles) on the Tomei Expressway. It usually costs Y7100 ($71) in tolls so there’s a saving of Y6100 ($61) or 86%.
On many urban expressways with a single barrier toll on entry the toll is being reduced from Y700 ($7) or Y800 ($8) to Y500 ($5). Under the crude toll-on-entry ramp the toll paid is already a flat rate regardless of distance traveled.
The government’s aim in paying for the toll discounts is apparently to generate more travel when roads are relatively uncongested.
The discounts range in size. Some Tokyo metro area tolls are only discounted at night 10pm to 6am, some Sundays and holidays.
On Sundays and holidays, the Tokyo Metropolitan Expressway will charge Y500 ($5) on several Tokyo routes, down from the current Y700 ($7). The toll on its Kanagawa ‘lines’ will be cut to Y400 ($4) from Y600 ($6), while on the Saitama line will be reduced to Y300 ($3) from Y400 ($4).
Tolls on the Hanshin Expressway in the Osaka region will be discounted on full weekends and national holidays. Hanshin’s east lines will be Y500 ($5) from the current Y700 ($7), and the west and south lines will be Y350 ($3.50) from Y500 ($5).
In April there will be more discounts in the form of credits for tolls paid on other systems for long journeys through multiple toll companies roads.
In announcing restructuring hurdles for the struggling auto industry, President Obama said that he wants General Motors to create “a credible model for how not only to survive, but to succeed in this competitive global market.” The steps that he announced—such as requiring GM to cut the number of brands and reduce its debt if it is to receive further federal assistance, providing federal backing for car warranties, and providing new incentives for car purchases—will help GM survive… in the short term.
So will other steps that the president’s auto task force recommended, such as cutting the number of dealerships.
However, the president’s announcement simply does not go far enough to help GM succeed in the long run. As Susan Helper and I pointed out in a previous Brookings commentary, GM’s long-run problems are primarily problems of quality and innovation, not problems of cost. Neither the president’s statement nor his task force’s analysis addresses those long-run problems.
Improving quality requires adopting world-class production and design methods that tap the knowledge of suppliers and production workers. The federal government should condition further aid to GM and its suppliers on the company’s agreement to implement—in cooperation with the United Auto Workers and suppliers—the recommendations of a federal auto industry manufacturing assistance program patterned after the existing Manufacturing Extension Partnership Program.
Spurring innovation requires doing the necessary research to develop the next generation of alternative-powered cars. Part of any additional federal aid to automakers and suppliers should go to support their participation in a consortium that would perform that research.
Tuesday, March 31, 2009 – Surface transportation trade between the United States and its North American Free Trade Agreement (NAFTA) partners Canada and Mexico was 27.2 percent lower in January 2009 than in January 2008, dropping to $47.5 billion, the biggest year-to-year percentage decline on record, according to the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation (Table 1). The $47.5 billion in U.S.-NAFTA trade in January 2009 was the lowest monthly amount since January 2004.
The value of U.S. surface transportation trade with Canada and Mexico fell 10.3 percent in January from December (Table 2). Month-to-month changes can be affected by seasonal variations and other factors.
Surface transportation consists largely of freight movements by truck, rail and pipeline. About 88 percent of U.S. trade by value with Canada and Mexico moves on land.
The value of U.S. surface transportation trade with Canada and Mexico in January was up 3.9 percent in the five-year period compared to January 2004, and up 31.6 percent over the 10-year period compared to January 1999 (Table 3). Imports in January were up 26.4 percent compared to January 1999, while exports were up 38.1 percent.
U.S. Surface Transportation Trade with Canada
U.S.–Canada surface transportation trade totaled $29.0 billion in January, down 31.1 percent compared to January 2008 (Table 4). The value of imports carried by truck was 31.3 percent lower in January 2009 compared to January 2008, while the value of exports carried by truck was 27.2 percent lower.
U.S. Surface Transportation Trade with Mexico
U.S.–Mexico surface transportation trade totaled $18.5 billion in January, down 20.0 percent compared to January 2008 (Table 6). The value of imports carried by truck was 20.5 percent lower in January 2009 than January 2008 while the value of exports carried by truck was 10.7 percent lower.
Click here to read the entire report in HTML or click here to download the report in PDF. A read-only version of the PDF file is provided here:
General Motors has announced a new incentive program that it hopes will encourage people to enter the car buying market again. Called GM Total Confidence, the program has four prongs that includes Payment Protection if you lose your job, equity assistance if you trade in your vehicle later for another one from GM, one year of OnStar and the automaker’s 5-year/100,000-mile powertrain warranty. We’re already familiar with the last two components of GM’s Total Confidence program, so let’s focus on the first two.
GM’s payment protection program is much like Hyundai’s Assurance Program in that the automaker will cover your payments in the event that you lose your job. GM’s program covers you for 24 months and will make up to nine payments valued at up to $500/month. According to GM, if you qualify for state unemployment benefits, you’ll qualify for the payment protection to kick in.
The last element of GM’s Total Confidence incentive program is equity assistance, or what GM calls Vehicle Value Protection. This part of the program will cover the difference between what you owe on your vehicle and its NADA Clean Retail Value when you trade it in for another GM vehicle. The idea is to wipe out any negative equity caused by vehicle depreciation when you move on to your next car.
The following is an exceprt from GM’s Press Release:
Protects your Paycheck: ‘Payment Protection*’ provides up to nine months of payments on vehicle loans or leases ($500 max/month) if you lose your job for economic reasons. When looking for a job, you need a vehicle more than ever. ‘Payment Protection’ helps you get back on your feet.
Protects your Investment: Once you are halfway through your finance contract, the customer qualifies for ‘Vehicle Value Protection.*’ This helps protect customers against uncertainty in the future used car market. For example, on a 60-month contract, you become eligible after the 30th month. Much as we’ve seen home prices decline in this tough market – and homeowners may owe more than the current resale value of their house – ‘Vehicle Value Protection’ provides peace-of-mind for customers when they want to go purchase another GM vehicle.
Protects your Vehicle: GM’s 5 year/100,000 mile transferable powertrain limited warranty (whichever comes first) plus roadside assistance and courtesy transportation. GM protects your vehicle with the best coverage in the business – so you don’t have to worry. With the high quality of GM vehicles today, offering the best coverage only makes sense. See your dealer for warranty details.
Protects your Family: One Year OnStar ‘Safety and Security’ Package. Knowing that OnStar is there if you should ever need them really makes a difference. With Automatic Crash Response, OnStar’s cutting-edge technology that protects your family when they travel. Visit onstar.com for more details.
The “GM Total Confidence” plan is available for vehicles purchased April 1 through April 30, 2009. For more information, please visit gmconfidence.com.
On March 25, 2009, the U.S. Senate Committee on Environment and Public Works held a hearing to examine transportation investment prior to authorizing the next highway, transit, and highway safety legislation that will replace the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users. Witnesses’ testimonies and video of the hearing are now available online. Committee hearings in two streaming video formats — RealPlayer and Flash. Please click on one of the links below to start the live video stream. Choose Your Format: RealPlayer or Flash.
NOTE: To view streaming video, you will need to have RealPlayer or Flash installed on your computer. To download the free RealPlayer or Flash applications, click on the buttons below.
REDMOND, Washington — Should a bridge that would connect two campuses at Microsoft’s headquarters be funded with $11 million from the federal stimulus package?
Critics of using stimulus money for the bridge say it would give the software giant a break on a pet project. They also say it serves as a warning sign of how some stimulus money is not being used to finance new projects but is being diverted to public works already under way.
Supporters argue the bridge is an ideal public-private partnership that will benefit an entire community while fulfilling the stimulus package’s goal of getting people back to work.
An artist's rendering shows how the proposed bridge would be constructed over a busy highway.
“It’s going create just under 400 jobs for 18 months constructing the bridge,” says Redmond Mayor John Marchione. “It’s also connecting our technical sector with our retail and commercial sectors so people can cross the freeway to shop and help traffic flow.”
Marchione applied for federal stimulus money after costs jumped on the project from $25 million to $36 million. Marchione says the increase in costs were due to a rise in construction prices and because the bridge will be built on a diagonal in order to connect Microsoft’s original East campus with a newer West campus that are split by a public highway.
Microsoft is hardly getting the bridge for free. The company is contributing $17.5 million or a little less than half the tab of the $36 million bridge, which would be open for public use.
And even though the bridge goes from a parking lot behind Microsoft’s West campus across a highway to an entrance of Microsoft’s East campus, Marchione says, people other than Microsoft employees would use the overpass.
“We’re not a one-company town,” Marchione says. “Our traffic studies show that Microsoft traffic would be about 42 percent of the bridge, yet Microsoft is paying for about 50 percent of the bridge, so we think we are getting fair value.
“The United States taxpayer is leveraging their dollars, and I think everyone is getting a fair deal.” But a watchdog group monitoring how stimulus money is being spent says the taxpayer in this case is getting ripped off. Click here to read the entire CNN article.
Another article on Softpedia.com offers the view point from Microsoft’s General counsel, Brad Smith, and Washington’s Governor Chris Gregoire.
“In recent days, some have questioned whether this project should have been a recipient of federal stimulus funding. We think this is a very positive example of a public-private partnership, and we are pleased to be contributing roughly 50 percent of the funding to help build this public project that will benefit the entire community. The federal stimulus dollars combine with additional state, local and existing federal dollars to fund the remainder,” revealed Brad Smith, Microsoft general counsel.
Smith underlined that not only was Microsoft participating in the project with half the funding, but that the company had already spent in excess of $50 million to help local authorities build infrastructure projects. At the same time, the overpass will not benefit Microsoft exclusively. Employees from Honeywell, Siemens, Nintendo and Sears will also get to use the bridge and will contribute to reducing the congestion affecting 148th Avenue NE and 156th Avenue NE.
Washington Governor Chris Gregoire explained that the overpass was not about Microsoft but “about multiple employers. It’s about thousands of employees and residents. It’s about taking people off the congestion we have in that interchange on [State Route] 520 now, where we literally have a problem in that people have to go 2 miles rather than two-tenths of a mile which that bridge would produce…. Almost 50 percent of that project is privately funded. That’s leveraging dollars. That’s what we’re trying to do, is to use private sector dollars with stimulus dollars and get a bigger bang for the buck.” Here is a video of Gov. Gregoire discussing the issue (courtesy of Softpedia.com)
On Monday morning, President Obama announced that the Treasury Department would back the warranties of new General Motors and Chrysler vehicles.
“If you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always,” President Obama said during a speech from the White House. “Your warranty will be safe. In fact, it will be safer than it’s ever been, because starting today, the United States government will stand behind your warranty.”
The administration’s plan to stand behind new-car warranties for G.M. and Chrysler is intended to reassure consumers worried about buying domestic vehicles. And to a large extent, the plan should do exactly that. But people who already own a G.M. or Chrysler vehicle are not covered by this program and it also does not cover safety recalls, which can occur years after the warranty expires.
In a nutshell: The Obama warranty commitment program sets up special warranty accounts that will be used only if the automaker runs out of money. If that happens, the government will “appoint a program administrator who, together with the U.S. Government, will identify an auto service provider to supply warranty services.” Those accounts will be funded with 125 percent of the expected warranty cost. The automaker will contribute 15 percent and the government 110 percent. The federal funds will come from the Troubled Asset Relief Program.
That could be a lot of money (except, perhaps, by the government’s current standards). For example, G.M. paid $4.5 billion worldwide in 2007 on warranties and $3.9 billion during the first nine months of last year, according to a filing with the Securities and Exchange Commission.
Click here to read more. For those interested in reading the President’s Warranty Program, here is a PDF file.