McKinsey Quarterly: Andy Grove, former CEO of Intel, proposes an electric plan for energy resilience

April 3, 2009 at 1:04 pm

(Source: McKinsey Quarterly ;Video:  The Auto Channel @ YouTube)

The fastest way to reduce America’s dependence on oil imports is to convert petroleum-driven miles to electric ones by retrofitting the SUVs and pick-ups now on the road with rechargeable batteries. Here’s how.

Our aim should not be total independence from foreign sources of petroleum. That is neither practical nor necessary in a world of interdependent economies. Instead, the objective should be developing a sufficient degree of resilience against disruptions in imports. Think of resilience as the ability to absorb a significant disruption, bigger than what could be managed by drawing down the strategic oil reserve.

 Our resilience can be strengthened by increasing diversity in the sources of our energy. Commercial, industrial, and home users of oil can already use other sources of energy. By contrast, transportation is totally dependent on petroleum. This is the root cause of our vulnerability.Our goal should be to increase the diversity of energy sources in transportation. The best alternative to oil? Electricity. The means? Convert petroleum-driven miles to electric ones.

Electric miles do not necessarily mean relying on all-electric cars, which would require building an extensive and expensive infrastructure. They can be achieved by so-called plug-in electric vehicles (PEVs). (Since many plug-in cars are modified hybrid automobiles, they are sometimes called PHEVs.) PEVs have both a gasoline-fueled engine and an electric motor. They first rely on the electricity stored onboard in a battery. When the battery is depleted, the vehicle continues to run on petroleum. The battery then can be charged when the vehicle is not in service.

The engineering and organizational issues involved in retrofitting on a large scale are far from trivial. The biggest problem, however, is the availability of batteries. The most suitable battery technology, which offers both a sufficient range and enough power to provide the acceleration required by today’s drivers, is the lithium-ion battery system. Current battery-manufacturing capacity is limited, and nearly all of it is dedicated to supplying batteries for the nearly 200 million laptop computers and other handheld electronic devices built each year. Making the batteries required for one million vehicles would mean doubling current manufacturing output.

Click here to read the entire article (Register for Free to read and hear the entire discussion).
NOTE:
TransportGooru is proud to share Andy Grove’s keynote address on the critical importance; and business opportunity and viability; of moving transportation from oil to electricity.

 

“Rushed” into judgement – “Republican God” Rush Limbaugh blasts green car movement – “nobody” wants hybrids

April 2, 2009 at 8:09 pm

 (Source: AutoBlogGreen)

In an attempt to stay politically neutral, we’re going to stop short of offering opinions about Rush Limbaugh’s recent statements regarding hybrid automobiles and the intent of automakers like Ford and Honda to “please politicians overseeing the industry’s multibillion-dollar bailout.” What we will say, though, is that Limbaugh’s a little off when he suggests that hybrid vehicles are entirely unwanted. So sayeth Rush:

Nobody’s buying ’em. Nobody wants them! The manufacturers are making them in droves to satisfy Obama! Sorry for yelling. Nobody wants them!

While it’s true that hybrid vehicle sales tend to rise and fall with the ebb and flow of fuel prices, which are currently down from the record highs from a year ago, Edmunds’ Green Car Advisor points out that 1.3 million hybrid vehicles have been sold in America since 1999, the first year the fuel-saving vehicles entered the market. Obviously, there are more than a few people out there who want to cut down on their fuel usage. Further, these hybrid vehicle programs have been in development since well before President Obama was elected.

When TransportGooru took a sneak peek into the trascripts posted on Mr. Limabugh’s website, the following golden statements caught the attention:   “I will only say that those people have probably given up their individuality for what they think is a larger cause, but nobody wants them.  That doesn’t matter, because as I mentioned earlier in the program, a couple hundred more million acres placed off-limits, energy rich, shale oil, natural gas, placed off-limits by the US Congress.  We’re gonna become more dependent on foreign oil, more dependent on foreign oil.  Gasoline prices are going to go through the roof at some point, Big Oil will be blamed by the Obama administration, and then you will be forced to start considering cars you do not want and you are not buying.  Good-bye freedom.  We have got to drive these people out of office before it’s too late. 

TransportGooru’s research found another rushed judgement on this issue back in June 2006 , as described in a Huffingtonpost article and the author David Franklin offers his counter along the way:

Rush says that, “Contrary to any loose statements made by our marketing partners in the environmental community and media, petroleum not consumed by Prius owners is not ‘saved.’ It does not remain in the ground. It is consumed by someone else. Greenhouse pollutants are released.” I find this statement baffling! Is there a backlog of “oil orders” that lies unfulfilled somewhere that I am unaware of? Are there companies out there just waiting for people to buy more hybrids, so that they can have their oil orders taken off backorder? Not to my knowledge. Logic would dictate that if demand for oil decreases, drilling and production of oil will decrease as well!

Perhaps if it was put another way it would be easier for Rush to grasp the cold hard logic behind what hybrids can do for this nation; “If every privately owned vehicle in America was traded in today for a Prius, it would reduce the amount of oil our nation requires to a level that could be fully supported by our own resources!”

Let me say that again in case it didn’t sink in fully the first time; “If every privately owned vehicle in America was traded in today for a Prius, it would reduce the amount of oil our nation requires to a level that could be fully supported by our own resources!” (and that’s without having to drill in Alaska!)

NOTE 1: Rush Limbaugh is slowly but steadily moving himself towards a spectrum of insanity that only he can fathom. TransportGooru is perplexed by his stands on this issue.  Look, it is very simple, Mr. Limbaugh:  Every drop of fossil fuel we don’t consume saves a whole lot for our future generation.  Trust me! You are not speaking for the republican masses here, at least on this one issue.   BTW, Mr. Limbaugh, start planning your “objections” for the upcoming electric vehicle revolution, spearheaded by Tesla.
Note 2: The above shown picture of Rush and the golden words inscribed in them are too golden to pass.  It clearly demonstrates how Mr. Limbaugh can quickly drive himself off a cliff on certain topics, like Iraq’s Abu Graib prison abuse! 

CNN’s “State of the Union” explores the impact of transit cuts on communities across the U.S.

April 2, 2009 at 6:27 pm

(Source: Transportation For AmericaCNN via Youtube)

As painful transit cuts cripple more and more agencies across the country, major national networks are gradually tuning in to the story and seeing just how bad things are. CNN is the latest to cover the transit cuts phenomenon that’s wreaking havoc on the largest and smallest of our public transportation systems.

In a four-minute segment last week, CNN used Transportation for America’s handy map — which we created to document the 85 communities that are being forced to either cut service, increase fares, or lay off workers due to budget crises at the local and state level — and took an in-depth look at some of the impacts of cutting back public transportation at a time when Americans are riding transit in record numbers.   This peice on transit is part of CNN’s “State of the Union,” in which host and chief national correspondent John King goes outside the Nation’s  to report on the issues affecting communities across the country. 

 

At one stop Wednesday, a handful of developmentally disabled passengers boarded outside a local facility where they work. One told CNN she optimistic “something will get done about it” but said she isn’t sure how she is supposed to get around after Friday.

Kimberly Barge is a staff attorney at Paraquad, the gym where the Falks and other local disabled residents attend classes.

“People are frustrated, angry — almost to the point of hopeless in some cases because there aren’t many other alternatives for the disability community as far as transportation goes,” Barge told CNN.

Jean McPherson boarded the bus with her infant daughter. The 20-year-old is going back to school to get her high school diploma and though short on cash, she says she is now forced to explore buying a used car.

“I might end up losing my job or not being able to take my daughter to day care,” is how she sees the consequence of her bus route being shortened so that it no longer stretches out to her community. “You can’t afford a car; that is why you use public transportation. So a lot of people are going to be in a bad situation.”

 

Click here to read more.

“Are We There Yet?” – AASHTO launches national campaign to build awareness and provide information on the critical needs of our nation’s transportation system

April 2, 2009 at 4:31 pm

(Source: AASHTO)

Photo: Zen Skillicorn@flickr

Washington, DC – “Are we there yet? The perennial question asked by kids on a long car trip is the same one all Americans should be asking about our entire transportation network,” said John Horsley, Executive Director of the American Association of State Highway and Transportation Officials (AASHTO). “Improving our transportation system must be a top priority for all of us since we are only investing half of what it would take to meet the needs of our nation’s growing population, demand for freight, and aging roads, bridges, and transit.”

 With the expiration date looming for the current federal transportation authorization, AASHTO has today launched a national campaign to build awareness and provide information on the critical needs of our nation’s transportation system.

Are We There Yet? We Can Be! is designed to be a one-stop shop for current information on the condition of the country’s infrastructure, state examples of successful projects, innovative technology, and focused solutions that can be shared with the public, the media, business and community groups, and lawmakers. The website highlights AASHTO’s proposals for the upcoming authorization, developed during the past year by representatives of the state departments of transportation.

“By working collaboratively across the nation – using common language and themes, we can ensure that our messages will be heard,” Horsley said.

The campaign stresses three key points: State DOTs are accountable; their projects are community-driven; and their work is performance based – on-time, on-budget and using the most innovative technologies.

The campaign website, AreWeThereYet.transportation.org, outlines the AASHTO authorization proposals and includes facts about America’s transportation infrastructure as well as a host of examples and information on issues ranging from safety and congestion, to freight and transit. AASHTO’s new television webchannel,www.TransportationTV.org, offers interviews with key Members of Congress, information on issues such as the Highway Trust Fund, backgrounders, and a weekly news show devoted to transportation issues.

Click here to explore the campaign.

Oregon’s mileage-based taxation experiment declared a roaring success; Final Report now available

April 2, 2009 at 12:04 pm

(Source: Streetsblog & WorldChanging)

The Oregon Department of Transportation (ODOT) has compiled a 100-page report on the experiment that covers a lot of ground, but basically describes the trial as a roaring success. A few interesting features of this report :

  • Overhead is low. Because the mileage tax piggybacks on the existing gas tax collection system, it’s easy and cheap for the state to administer.
  • Payment is simple. From the driver’s perspective, the mileage tax differs little from the gas tax, other than the fact that their gas station receipts contain interesting information on miles driven.
  • Privacy is protected. The state only gets odometer information, not information about vehicle location.
  • Evasion is difficult. Even if you tamper with the GPS receiver, you’re still going to pay the gas tax.
  • Phased implementation is possible. Oregon doesn’t foresee a complete changeover to mileage taxes happening until 2040. This is a bit too slow for my taste (I really hope gas stations don’t exist in 2040), but the point is that gas taxes and mileage taxes can happily coexist as the vehicle fleet turns over.

Technically, the system worked. Just as importantly, public acceptance was high. 91% of [self-selected] test participants preferred the system to paying gas taxes.… Before the experiment began, media portrayals of the system were almost uniformly negative — and inaccurate. By the middle of 2006, media coverage ranged from neutral to positive, and were far more accurate. Citizen comment reflected this broader trend. ODOT concludes, “Effective communication can lead to public acceptance.”

Click here to read blogger Adam Stein’s take on this subject at WorldChanging.com.  For those interested here is the final report in PDF form. 

 

China Invests to Be Leader in Electric Vehicles

April 1, 2009 at 8:04 pm

(Source: New York Times)

China wants to raise its annual production capacity to 500,000 hybrid or all-electric cars and buses by the end of 2011, from 2,100 last year, government officials and Chinese auto executives said. By comparison, CSM Worldwide, a consulting firm that does forecasts for automakers, predicts that Japan and South Korea together will be producing 1.1 million hybrid or all-electric light vehicles by then and North America will be making 267,000.

TIANJIN, China — Chinese leaders have adopted a plan aimed at turning the country into one of the leading producers of hybrid and all-electric vehicles within three years, and making it the world leader in electric cars and buses after that.

The goal, which radiates from the very top of the Chinese government, suggests that Detroit’s Big Three, even as they struggle to stay alive, will face even stiffer foreign competition on the next field of automotive technology than they do today.

“China is well positioned to lead in this,” said David Tulauskas, director of China government policy at General Motors.

To some extent, China is making a virtue of a liability: it is behind the United States, Japan and other countries, when it comes to making gas-powered vehicles. But by skipping the current technology, China hopes to get a jump on the next.

Japan is the market leader in hybrids today, which run on both electricity and gasoline, with cars like the Toyota Prius and Honda Insight. The United States has been a laggard in alternative vehicles. G.M.’s plug-in hybrid Chevrolet Volt is scheduled to go on sale next year, and will use rechargeable batteries imported from LG in South Korea.

China’s intention, in addition to creating a world-leading industry that will produce jobs and exports, is to reduce urban pollution and decrease its dependence on oil, which comes from the Mideast and travels over sea routes controlled by the United States Navy.

Premier Wen Jiabao highlighted the importance of electric cars two years ago with his unlikely choice to become minister of science and technology: Wan Gang, a Shanghai-born former Audi auto engineer in Germany who later became the chief scientist for the Chinese government’s research panel on electric vehicles.

Beyond manufacturing, taxi fleets and local government agencies in 13 Chinese cities are being offered subsidies of up to $8,800 for each hybrid or all-electric vehicle they purchase. The state electricity grid has been ordered to set up electric car charging stations in Beijing, Shanghai and Tianjin.

Click here to read the entire article.

Obama Favors “Cash for Clunkers”

April 1, 2009 at 7:43 pm

(Source: TreeHugger); Video: YouTube)

 Yesterday President Obama told Chrysler and GM that it is time to shape up or ship out. He also said he supports a program that would pay people to trade in older cars for newer, more fuel efficient vehicles. Europe has successfully tried this, but could it work here and would it be good for the planet? 

Speaking about a so called “cash for clunkers” program, Obama said:

“Such fleet modernization programs, which provide a generous credit to consumers who turn in old, less fuel-efficient cars and purchase cleaner cars, have been successful in boosting auto sales in a number of European countries.”

Here is an analysis from a News portal on what it could mean for consumers.

This is especially true in Germany, where new auto sales are said to have risen 20 percent last month. Of course, Europe has much higher gas prices than we do, increasing the desire to go with a greener car. They are also taxing people for their carbon output, again incentivizing people to get rid of heavier, more inefficient cars and trucks., A gas tax and other complimentary taxes that would bring our prices in line with Europe’s is politically unlikely, so a trade-in program may have some political legs given Congress’s new found attention on the climate. 

Another supporter is Ohio Rep. Betty Sutton, who sponsors the CARS Act, which creates vouchers of between $3,000 and $5,000 for people to trade-up. Given the president’s announcement yesterday, it’s suddenly a viable question to ask if there will be any American cars to buy if a cash for clunkers plan was enacted.

Here are some of the related posts from TransportGooru:

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” (in plain english, car scrapping program)

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

Calfornia gas station owners rebel against pollution rules; Half of California gas stations could be forced to close for failing to install new nozzles

April 1, 2009 at 6:43 pm

(Source: Los Angeles Times)

Gas station protest

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.

Click here to read the entire article. 

Stimulus needed for boat owners? Boats Too Costly to Keep Are Littering Coastlines

April 1, 2009 at 1:46 pm

(Source: New York Times)

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. 

Hyundai Vs Ford Vs GM: What Car Payment Protection Plan’s Best?

March 31, 2009 at 6:22 pm

((Source: Jalopnik)

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?

Hyundai was first on the “car payment protection” scene with their Hyundai Assurance Program, followed today by Ford and GM with their Ford Advantage and GM Total Confidence plans, respectively.

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 caveats to 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.