(Source: Reuters) 

Image: Seth Anderson via Apture

The Obama administration is expected to unveil its plans on Thursday for accelerating development of high-speed rail, a concept that in the past has had mixed political support and little public funding.

“It will be broad and strategic,” Karen Rae, acting head of the Federal Railroad Administration, told Reuters in an interview on Tuesday about the initiative described by officials as President Barack Obama‘s top transportation priority.

“It’s going to talk about how we begin to create this new vision for high-speed and intercity rail,” Rae said.

White House and transportation officials have spent the past several weeks weighing plans for developing at least six high-speed corridors.

High-speed rail initiatives are in various planning stages in California, Florida, Nevada, the Carolinas and the Northeast. States are already formulating how to use the large appropriation for high-speed rail projects in the economic stimulus act.

“Some of these plans are 20 years old,” said Transportation Secretary Ray LaHood in an interview this week with Reuters Financial Television.

In February, Congress included $8 billion for rail development in the American Recovery and Reinvestment Act and Obama has included another $5 billion for the efforts in the White House’s proposed budget.

LaHood said the $8 billion in stimulus money will “jump-start” the process, but rail advocates and transportation officials agree that financing high-speed rail nationally will cost significantly more.

(Source: Washington Post) 

Without higher gas taxes, ‘cash for clunkers’ won’t do the job 

CAR SALES in Germany jumped an astonishing 40 percent in March, thanks in large part to a “cash for clunkers” program in which the government gave those handing over old-model cars roughly $5,000 toward the purchase of newer, more fuel-efficient vehicles. Lawmakers in the United States have crafted similar proposals, hoping both to provide a boost to the U.S. auto industry and to spur sales of environmentally friendlier cars. But even the best of these proposals is not likely to provide the punch of the German initiative.

Click here to read the entire article (free regn. required).  

Note:  Below is a list of articles on this issue, previously published on TransportGooru.  This compilation of articles offer an insight into state of various “Cash for Clunkers” style programs implemented (or currently being debated) across the globe (Germany, UK, etc,). Stay plugged in to TransportGooru for more on this topic in the days to come.

 Consumer Assistance to Recycle and Save (CARS) Act revives “Cash for Clunkers” scrapping plan in U.S

Germany plans to extend Abwrackprämie aka “Environmental Bonus”

The bickering starts over the implementation of the Cash for Clunkers legislation

Obama Favors “Cash for Clunkers”

Germany increases subsidy to 5 Billion Euros, tripling incentives for its “Cash for Clunker” (Abwrackprämie) program

Britain mulls implementation of “Cash for Clunkers” scheme to boost ailing auto sales 

Where the US stands in pushing “Cash for Clunkers”- Four bills in Congress; Details Needed

(Source: Jalopnik, Wired, Autoblog, Detroit News)

GM chair fears deal can’t be reached: Kent Kresa, interim chairman of General Motors Corp., is not optimistic money-saving concessions can be reached with bondholders and the United Auto Workers to avoid bankruptcy before a June 1 deadline. “I’m hopeful we can get there,” Kresa told The Detroit News today. “Everybody understands we would be in a much better situation if we can resolve this among all the players without going through bankruptcy.” GM is trying to restructure about $28 billion in unsecured debt held by GM’s bondholders and $20 billion in obligations to the United Auto Workers. The federal government also may agree to swap some of its $13.4 billion in General Motors Corp. debt for new equity in the company in a move to help boost GM’s balance sheet.

GM chairman looking to turn over half of board of trustees by June? According to the Detroit Free Press, General Motors interim chairman, Kent Kresa, has been asked by president Obama’s administration to replenish the automaker’s board with fresh blood. Kresa said that while the board did achieve “historic things” recently, like renegotiating the UAW pay scale, he also said that the board didn’t fully comprehend the magnitude of the downturn. 

 GM Says Volt Won’t ‘Pay the Rent’ : General Motors won’t make money on its electric car for quite awhile. That’s to be expected, and it should be supported. The Obama administration doesn’t understand that.

GM, Task Force preparing for “surgical” bankruptcy: According to a lengthy report by the New York Times, the Treasury Department is directing General Motors to begin work on a bankruptcy filing by June 1. Based on sources close to the talks who were unable to officially discuss the process, the report outlines the “fast ‘surgical’ bankruptcy” of the automaker if GM is unable to reach an agreeme…

GM‘s new offer for bondholders may contain no cash, just equity: …GM, Earnings/FinancialsGM’s most recent offer to its bondholders offered a little bit of cash and a little bit of equity. GM CEO Fritz Henderson’s example was that a holder of $1,000 in bonds would end up with $333 and a some equity. After conferring with the Auto Task Force, however, that offer was deemed excessive in light of GM‘s situation so…

(Source: Tree Hugger)

Leader in the Pack 
Rep. Sutton’s Consumer Assistance to Recycle and Save (CARS) Act would give consumers incentives of $3,000 to $5,000 for turning in vehicles that are 8 years or older to buy more fuel-efficient vehicles or to obtain a transit voucher. She says that support is growing every day. The bill has gathered 21 co-sponsors so far, up from 19 a couple of weeks ago. The bill is still working out the metric of how cars would need to be traded in and what fuel efficiency would need to be for the new car. Sen. Dianne Feinstein has a similar proposal (with a short title of Accelerated Retirement of Inefficient Vehicles Act of 2009) that would mandate that the new car be 25% aboveCAFE standards . There has not been anything mentioned about how many cars one person or family can switch for the credit. Also, some states already have incentives for buying cleaner cars, so will individuals be able to get both state and federal credits? If so, in places like Texas , a person could get a combined total of as much as $8,500.00 for a new car.

Click here to read the entire article.  Here is the CNBC video of  the Cash for Clunkers featuring industry experts Dave McCurdy, Alliance of Automobile Manufacturers and John Wolkonowicz, IHS Global Insight.

 Note:  Below is a list of articles published on TransportGooru, offering insight into state of various “Cash for Clunkers” style programs implemented (or currently being debated) across the globe (Germany, UK, etc,).

Consumer Assistance to Recycle and Save (CARS) Act revives “Cash for Clunkers” scrapping plan in U.S

Germany plans to extend Abwrackprämie aka “Environmental Bonus”

The bickering starts over the implementation of the Cash for Clunkers legislation

Obama Favors “Cash for Clunkers”

Germany increases subsidy to 5 Billion Euros, tripling incentives for its “Cash for Clunker” (Abwrackprämie) program

Britain mulls implementation of “Cash for Clunkers” scheme to boost ailing auto sales

(Source: Spiegel Online via Business  Week)

To boost ailing carmakers, the British government is expected to offer customers a premium to exchange clunkers for new vehicles—as Germany has done

The paper writes that Darling and officials in the Treasury have been impressed by the results the programs have delivered in other countries. Last month, Britain experienced a 30 percent drop in new car registrations at a time when Germany recorded 40 percent more vehicle sales than during the same period a year earlier. In Germany, Treasury officials noted, the precipitous drop in auto sales has been reversed.

The Times reported that details are still being hashed out between the Economics Ministry and the Treasury in London, but that the plan will look a lot like Germany’s. According to the paper, a £2,000 (€2,200) scrapping premium is to be given on trade-ins of any car over nine years old.

In contrast to Germany, though, Darling and Economics Minister Peter Mandelson are also seeking industry participation in the program. At the very least, they want a binding commitment that existing rebates will not be dropped because of the government program. So far though, the paper reports, the British automobile industry is resisting the government’s push for it to support the program with its own means.

In addition to Germany, a number of European countries including Austria, France, Italy, Portugal and Spain also have stimulus programs in place for carmakers suffering from thecredit crunch and global financial crisis—and the success of these stimulus efforts has been measurable. China and Brazil have also succeeded in increasing car sales again.

“A scrapping scheme will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand,” Britain’s Society of Motor Manufacturers and Traders (SMMT) chief executive Paul Everitt told the Times. “The UK is the only major European market not to implement a scheme.” SMMT estimates the one-year program would cost about £160 million.

Last week, the United States also said it would adopt the successful European recipe. During a dramatic speech to the auto industry, US President Barack Obama praised the scrapping premiums as exemplary and “successful” and pledged to introduce a similar program in the US. But the program could be a lot more expensive for the United States than Britain: Already, an estimated 250 million cars and trucks are driven in America. Of those, close to 30 percent are at least 15 years old, meaning the country could have as many as 75 million candidates for scrapping.

In Germany, demand has been so strong that the government plans to extend its scrapping bonus through the end of the year. Last week, Chancellor Angela Merkel’s cabinet moved to extend the scheme until Dec. 31 and to provide €5 billion in government funding—enough to cover up to 2 million cars.

Click here to read more.   Transportgooru has already published a number of articles on this topic in earlier months.  Please feel free to explore them:

Consumer Assistance to Recycle and Save (CARS) Act revives “Cash for Clunkers” scrapping plan in U.S

Germany plans to extend Abwrackprämie aka “Environmental Bonus”

The bickering starts over the implementation of the Cash for Clunkers legislation

Obama Favors “Cash for Clunkers”

Germany increases subsidy to 5 Billion Euros, tripling incentives for its “Cash for Clunker” (Abwrackprämie) program

(Source: Wall Street Journal)

DALLAS — Since Henry Ford began mass production of the Model T nearly a century ago, car-loving Americans have gulped ever-increasing volumes of gasoline. A growing number of industry players believe that era is over.

Among those who say U.S. consumption of gasoline has peaked are executives at the world’s biggest publicly traded oil company, Exxon Mobil Corp., as well as many private analysts and government energy forecasters.

The reasons include changes in the way Americans live and the transportation they choose, along with a growing emphasis on alternative fuels. The result could be profound transformations not only for the companies that refine gasoline from crude oil but also for state and federal budgets and for consumers. Much of contemporary America, from the design of its cities to its tax code and its foreign policy, is predicated on a growing thirst for gasoline.

 As Americans commute less, use more fuel efficient cars and take more public transportation, gas stations have shut down. There are 11% fewer places to pump gas in the U.S. today than there were a little over a decade ago.

In the vast market for crude oil, American gasoline consumption matters. One of every 10 barrels of crude ends up in U.S. gasoline tanks, more than is used by the entire Chinese economy.

Right now, the recession is curbing U.S. gasoline consumption, as laid-off workers stop commuting and budget-conscious families forgo long road trips. Drivers filled their cars with 371.2 million gallons of petroleum-based gasoline every day in 2007, according to the U.S. Energy Information Administration. It expects that to fall 6.9% to 345.7 million gallons in 2009, as demand at the pump declines and the use of plant-based ethanol increases. Even if usage climbs after the recession ends, it won’t exceed 2007 levels, according to EIA forecasts.

Demand for all petroleum-based transportation fuels — gasoline, diesel and jet fuel — fell 7.1% last year, according to the EIA. This is the steepest one-year decline since at least 1950, as far back as the federal government has reliable data.

Many industry observers have become convinced the drop in consumption won’t reverse even when economic growth resumes. In December, the EIA said gasoline consumption by U.S. drivers had peaked, in part because of growing consumer interest in fuel efficiency.

Exxon believes U.S. fuel demand to keep cars, SUVs and pickups moving will shrink 22% between now and 2030. “We are probably at or very near a peak in terms of light-duty gasoline demand,” says Scott Nauman, Exxon’s head of energy forecasting.

If Exxon is right, the full impact of falling demand for fuel would take years to be felt. But some deep changes are under way.

Click here to read the entire article.    Also, don’t forget to explore the interactive graphic that offers some stunning statistics.  Below is a video report from WSJ for this story. 

(Source: USDOT Press Release)

 President Barack Obama today announced funding for the 2,000th transportation project under the American Recovery and Reinvestment Act (ARRA), only six weeks after approving the first project.  The President made the remarks at the U.S. Department of Transportation with Vice President Biden and Transportation Secretary Ray LaHood.

“Just 41 days ago we announced funding for the first transportation project under ARRA and today we’re approving the 2,000thproject,” said President Obama.  “I am proud to utter the two rarest phrases in the English language – projects are being approved ahead of schedule, and they are coming in under budget.”

“The Recovery Act is being implemented with speed, transparency and accountability,” said Vice President Biden.  “Don’t take my word for it – just look at what’s happening today. We have the 2000th transportation project now underway – that’s going to help create jobs, make it easier for folks to get to the jobs they have, and improve our nation’s infrastructure all at the same time. The Recovery Act is full- steam ahead on helping us build an economy for the 21st century.”

“This is the government working for the people, creating jobs today and laying the foundation for a bright economic future,” said Secretary LaHood.

The 2,000th project is in Kalamazoo County, Michigan.  The $68 million project involves widening of I-94 from two lanes both east and westbound to three lanes in each direction.  The project will improve safety and ease congestion by providing a more efficient interchange.  

State departments of transportation around the country have reported to FHWA intense competition by contractors for ARRA projects.  Bids have been roughly 15 to 20 percent lower on average, and as much as 30 percent lower in some cases, than engineers anticipated.  For example, in Colorado, the state’s first five ARRA transportation projects announced on April 2 were 12 percent lower than anticipated.   In Maine, one bridge project was 20 percent lower than estimated.  In Oregon, during February and March 2009, bids have averaged 30 percent lower than expected. 

President Obama secured passage of the ARRA and signed it into law on February 17, less than one month after taking office.  Less than two weeks later, on March 3, the President, Vice President Biden and Secretary LaHood released the first funding to the states and localities for highways, roads and bridge projects.  That release of funds came eight days earlier than required by law.   

ARRA provides a total of $48.1 billion for transportation infrastructure projects to be administered by the U.S. Department of Transportation.  Of that $27.5 billion is for highways and bridges, $8.4 billion is for transit, $8 billion is for high speed rail, $1.3 billion is for Amtrak, $1.5 billion is for discretionary infrastructure grants $1.3 billion is for airports and Federal Aviation Administration facilities and equipment and $100 million for shipyards.   

In early February, prior to the passage of the ARRA, Secretary LaHood established within the U.S. Department of Transportation the TIGER (Transportation Investments Generating Economic Recovery) team to ensure that economic recovery dollars for transportation infrastructure projects is rapidly made available and that project spending is monitored and transparent.  On March 3, the President unveiled a TIGER logo, as well as an ARRA logo, that will be placed on construction signs across the country, to mark projects being built and jobs created with Recovery Act funds. 

—————————————————————————————————————————-

Due to heightened competition among contractors for recovery construction work, Transportation agencies across the nation are receiving project bids substantially lower than engineers’ initial estimates.  These lower than expected bids are allowing states to stretch economic recovery funds to pay for additional projects, which the Department of Transportation predicts will create even more jobs and yield further infrastructure repair nationwide. Below is a sampling of state transportation projects set to break ground across the country at a fraction of initial estimates. 

“At Baltimore-Washington International Marshall Airport, a recent project to reconstruct the area around Piers C and D received six bids instead of the usual two or three. The result: The estimated $50 million project will be built for $8 million less than was budgeted, and the savings will be allocated to other projects. There were 21 bidders for a $200,000 drainage project in Carroll County, more than anyone could remember.” [Washington Post, 4/8/09] 

Click here to read the entire presser.

(Source: TED)

Forget about the hybrid auto — Shai Agassi says it’s electric cars or bust if we want to impact emissions. His company, Better Place, has a radical plan to take entire countries oil-free by 2020.

Just over a year ago, BusinessWeek ran a great piece aboutShai Agassi and his audacious plans to produce a mass market electric vehicle and thereby revolutionize the auto industry. So it was great to get an update from the former software entrepreneur turned zero emission transport guru on the main TED stage earlier today.

Business Week’s report on Mr. Agassi’s TED presentation offers this:  “Much of what Agassi had to say was familiar, but it was fascinating to hear how the Better Place project is scaling to places such as Australia and Hawaii (it started life in Israel, with the support of politician Shimon Peres.) The emergence of Car 2.0, as Agassi described it, entails an entirely new business model for car ownership, whereby drivers will pay for miles as they currently pay for minutes on a phone. And Agassi, who cut an imposing and definitive figure on stage, professed to be interested in only two figures: Zero, as in zero emissions; and infinity, as in this model should be available for every driver, worldwide.”

The quote from Wired Magainze nicely captures Mr. Agassi’s personality – Charismatic &  convincing. 

“Shai Agassi has only one car, no charging stations, and not a single customer—yet everyone who meets him already believes he can see the future.” – Wired

Here is Mr. Agassi’s presentation at TED. 

Image: Thingermejig@ Flickr

(Source: New York Times)

 BEIJING — Senior Chinese officials on Friday outlined how they aimed to turn their country into the world’s largest producer of electric cars, including a focus on consumer choice rather than corporate subsidies.

Speaking at a conference at the government’s prestigious Diaoyutai guesthouse here, the officials acknowledged that their efforts faced challenges in terms of the cost and safety of electric cars. They promised a nationwide effort by manufacturers, universities, research institutes and government agencies to overcome these obstacles.

(Source: CNN)

Their livelihood was being threatened, and they were tired of waiting for government help, so business owners and residents on Hawaii’s Kauai island pulled together and completed a $4 million repair job to a state park — for free.

Volunteers bring in a heavy crane for work on a bridge to Polihale State Park on Kauai last month.

Polihale State Park has been closed since severe flooding destroyed an access road to the park and damaged facilities in December.

The state Department of Land and Natural Resources had estimated that the damage would cost $4 million to fix, money the agency doesn’t have, according to a news release from department Chairwoman Laura Thielen.

“It would not have been open this summer, and it probably wouldn’t be open next summer,” said Bruce Pleas, a local surfer who helped organize the volunteers. “They said it would probably take two years. And with the way they are cutting funds, we felt like they’d never get the money to fix it.”

And if the repairs weren’t made, some business owners faced the possibility of having to shut down.

Ivan Slack, co-owner of Napali Kayak, said his company relies solely on revenue from kayak tours and needs the state park to be open to operate. The company jumped in and donated resources because it knew that without the repairs, Napali Kayak would be in financial trouble.

“If the park is not open, it would be extreme for us, to say the least,” he said. “Bankruptcy would be imminent. How many years can you be expected to continue operating, owning 15-passenger vans, $2 million in insurance and a staff? For us, it was crucial, and our survival was dependent on it. That park is the key to the sheer survival of the business.”

So Slack, other business owners and residents made the decision not to sit on their hands and wait for state money that many expected would never come. Instead, they pulled together machinery and manpower and hit the ground running March 23.  Watch the volunteers repairing the road »

And after only eight days, all of the repairs were done, Pleas said. It was a shockingly quick fix to a problem that may have taken much longer if they waited for state money to funnel in.

“We can wait around for the state or federal government to make this move, or we can go out and do our part,” Slack said. “Just like everyone’s sitting around waiting for a stimulus check, we were waiting for this but decided we couldn’t wait anymore.”

Thielen has been waiting, too. She wants the legislature to approve her Recreation Renaissance project, a $240 million booster shot to help fix parks across the state. Without it, at least five state parks may be forced to close, and there would be no emergency repair money to fix Polihale State Park.

“We shouldn’t have to do this, but when it gets to a state level, it just gets so bureaucratic, something that took us eight days would have taken them years,” said Troy Martin of Martin Steel, who donated machinery and steel for the repairs. “So we got together — the community — and we got it done.” 

Click here to read the entire story and to view awesome pictures from this wonderful community initiative.