U.S. Cash-for-Clunkers deal reportedly nearing congressional compromise

April 24, 2009 at 1:29 pm

(Source: Autoblog & The Detroit News)

It’s looking increasingly likely that the United States will soon have its own Cash-for-Clunkers program. According to The Detroit News, two bills are currently competing for Congressional votes, and while they would both offer sizable rewards for turning in older vehicles, they vary in what new cars and trucks would qualify for the program.

One bill, sponsored by Rep. Betty Sutton (D-Ohio) would give the largest voucher – up to $5,000 – to purchasers of new vehicles made in the United States. Slightly smaller amounts would be granted for other vehicles made in the rest of North America, and no cash would be granted for the purchase of foreign-made cars. All cars would need to manage at least 27 mpg to qualify, and trucks would need to hit at least 24 mpg.
 
The other bill, sponsored by Rep. Steve Israel (D-New York), would offer up to $4,500 for the purchase of a new vehicle, assuming that the vehicle being traded-in gets 18 mpg or less, and the new vehicle’s fuel efficiency is at least 25% better than average for its class. No distinction would be made based on the vehicle’s country of origin.
Both would require the scrapping of older vehicles to remove them from the roadways and both would give drivers the option of trading in an old car for a bus or subway pass.

In addition to promoting energy efficiency, the idea is to boost new car sales and get vehicles on the roads with updated safety features.

The program could cost as much as $4 billion and help retire at least 1 million older vehicles. Senior congressional aides and members of the Obama auto task force met earlier this month in search of the best way to pay for and structure it.

Toyota spokesman Charles Ing said his company wants legislation to apply to all fuel efficient vehicles and adhere to U.S. obligations under the World Trade Organization.

 

Over the past months, TransportGooru has published a series of articles on this topic, following developments in the US, UK and Germany. For the ones interested in learning about the schemes in Germany (that is now labelled a “roaring success”) and US & UK (the introduction of a similar scheme in the works but still a long way away from getting it done), here is a list of articles that TransportGooru published.

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

Goodbye, Gas Guzzlers? – Washington Post editorial analyses the keys to succesful implementation of US’ Cash for Clunkers” initiative

Time examines the “Cash for Clunkers” initiative: A Deal to Help Detroit — and the Planet?

Following Germany, Britain introduces “Cash for clunkers”scrappage scheme. U.S. is next?

California adopts first-in-the-world regulation to minimize the amount of carbon in fuel

April 24, 2009 at 12:15 am

(Source: CBS, LA Times, SF Chronicle)

California took aim today at the oil industry and its effect on global warming, adopting the world’s first regulation to limit greenhouse gas emissions from the fuel that runs cars and trucks.

Photo: AP/Rich Pedroncelli via CBS

The regulation requires producers, refiners and importers of gasoline and diesel to reduce the carbon intensity of their fuel by 10% over the next decade. And it launches the state on an ambitious path toward ratcheting down its overall heat-trapping emissions by 80% by mid-century — a level that scientists deem necessary to avoid drastic disruption to the global climate.

Gov. Arnold Schwarzenegger praised the regulation immediately after the vote.

“California’s first-in-the-world low carbon fuel standard will not only reduce global warming pollution – it will reward innovation, expand consumer choice and encourage the private investment we need to transform our energy infrastructure,” Schwarzenegger said in a statement.

At the all-day public hearing prior to the vote, backers of corn-based ethanol criticized the regulation because it counts – as part of the carbon intensity – the indirect effects of manufacturing the fuel. With corn-based ethanol, that means counting the impact of creating new crop land when existing land is converted to growing corn for fuel instead of food.

Backers of the regulation applauded in the auditorium after the vote.

Trailblazing 71 year old Mayor of Berkeley, Calif. gives up his car; sends a strong & green message!

April 23, 2009 at 11:36 pm

(Source: SF Gate)

Some mayors tool around in Priuses and hybrid Civics. But Berkeley Mayor Tom Bates has taken green transit a step further.  

Image: Paul Chinn/The Chronicle

No more cars for him, at all.

The 71-year-old mayor is trading in his 2001 Volvo for an AC Transit pass and a sturdy pair of walking shoes.

“I’m trying to reduce my carbon footprint to the absolute minimum,” he said. “I figure, if I really want to go someplace I can just rent a car.”

Bates’ long farewell to the Volvo began about a year ago, when he started walking to work as a way to lose weight and stay in shape. The 18-minute trek from his home in South Berkeley to City Hall was so invigorating he started walking everywhere he could – to Berkeley Bowl, the BART station, city council meetings.

He even bought a pedometer to tally his footsteps. His goal: 10,000 steps a day, which he has achieved nearly every day since the tabulations began May 10, 2008. Since then he’s walked 4,908,970 steps, according to the daily log he enters in his computer.

The Bates household is not entirely automobile-free. His wife, State Sen. Loni Hancock, owns a Toyota Camry hybrid, which she uses to commute to Sacramento. Hancock and the Camry are at the Capitol four days a week, however, leaving Bates with nothing but his TransLink card and his Rockports.

Bates’ decision to set the Volvo free was not easy. Like most Americans, he has a deep passion for the open road, quick acceleration and a good sound system. He has fond memories of cruising in the Volvo down Highway 1, Beethoven on the CD player, sunroof wide open.

“A car represents freedom,” he said. “For a long time I kept thinking, how would I really feel about getting rid of it? Finally I just came to the conclusion that keeping the car was ridiculous. It was just depreciating in my driveway.”

Many Bay Area mayors are taking a greener approach to transportation. San Francisco Mayor Gavin Newsom rides in a hybrid police car for city business, and on weekends he drives his all-electric Tesla Roadster.

Following Germany, Britain introduces “Cash for clunkers”scrappage scheme. U.S. is next?

April 23, 2009 at 11:17 pm

(Source: Autoblog, Telegraph UK) 

After weeks of dithering, the Government announced a car scrappage scheme in yesterday’s Budget.  Anyone with a car registered after July 31, 1999 will get a cash incentive of £2,000 to trade in their old vehicle for a brand new one.

However, only £1,000 will come from the Government, with the remaining £1,000 coming from car firms; the motor industry had hoped that the Government would foot the entire £2,000 bill.

Participants will be able to buy any new vehicle, including small vans, rather than just low pollution models. Motorists taking advantage of the scheme must have owned the car for at least one year; it will also have to be taxed, insured and have a current MoT in order to qualify.

About £300 million has been set aside to fund the scheme, to be launched in mid-May. About 300,000 consumers are expected to benefit until the scheme ends in March 2010, unless funding runs out before then.

In the below video, you can hear Mr. Tony Whitehorn, Managing Director of Hyundai UK, welcoming Chancellor Alistair Darling’s ‘cash for bangers’ scheme announcement in the Budget.

Not everyone has been warm to the Chancellor’s scheme. The reactions have been mixed thus far.  However, the RAC Foundation said the scheme risked “consigning perfectly good, and relatively ‘clean’, vehicles to the dustbin”, while CleanGreenCars said the Chancellor’s failure to set a limit on CO2 emissions of new cars bought under the scheme was “senseless”.  A columnist on the Telegraph claims that the Chancellor’s scrappge scheme fails to deliver.
For the ones interested learn about the schemes in Germany (that is now labelled a “roaring success”) and US (the introduction of a similar scheme in the works but still a long way away from getting it done), here is a list of articles that appeared earlier on 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”

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

Goodbye, Gas Guzzlers? – Washington Post editorial analyses the keys to succesful implementation of US’ Cash for Clunkers” initiative

Time examines the “Cash for Clunkers” initiative: A Deal to Help Detroit — and the Planet?

Scoopful of GM news – April 22, 2009: GM shocks Ford, Loan default & hedging a big bet, Chevy Mystery, Buick Business, Dominator in China, How to Rescue?, Lobbying while dying, etc

April 22, 2009 at 6:25 pm

(Source: AutoBlog, New York Times, Jalopnik)

 REPORT: Bill Ford, Jr. “shocked” at Wagoner’s ousting…Some say GM taking government loans (as opposed to private sector loans) changed the rules, and the government needed to protect its investment; others say it was government interference. Regardless, the way things are going, we would be surprised if that were the last “shocking” development in the car industry saga.[Source: The Detroit Free Pre…

REPORT: GM hedges bets, plans to miss $1B debt payment deadline
GM, Earnings/FinancialsThe familiar expression goes “Better the devil you know,” meaning it’s preferable to deal with the nasty things you don’t like but are at least familiar with. General Motors, however, doesn’t seem to think so. The troubled automaker appears more ready to take its chances with bankruptcy than continue to fight the weight of…

2010 Chevy Camaro Gets Mysterious Brake Weights [Offbeat News]
GM has not answered to the confusion yet, but the leading theory is they were place on the caliper as a quick and dirty fix to alleviate brake squeal. From a physics perspective, this explanation is plausible, as resonant frequency is in large part determined by mass, and by changing the vibrating mass of the caliper with the weights, a troubles…

Shanghai 2009: Buick Business Concept hybrid comes to light
GM took the wraps off of the Buick Business MPV concept in Shanghai. The hybrid concept vehicle fits into the class of executive transport vehicles in China, hence the Business name. GM partnered with the Pan Asia Technical Automotive Center (PATAC) on the vehicle, which uses li-ion batteries and an improved electric motor to get fuel economy th…

In China, G.M. Remains a Driving Force
… Ford may be standing taller than General Motors in Detroit these days — flush with cash while its rival is forced to go repeatedly to Washington, hat in hand, seeking government bailouts. But in China the tables are turned.G.M. is a powerful presence here with 8 to 10 percent of the market for cars, minivans and sport utility vehicles, making it the second-largest automaker in China for such vehicles, passed only by Volkswagen. One of G.M.’s local joint ventures, Wuling, dominates the sale of bare-bones pickups and vans, hugely popular in rural areas, with nearly half the market…

GM Said to Idle 15 Assembly Plants in May-July Period..
General Motors Corp., contending with a 49 percent decline in US sales this year, will idle 15 North American assembly 

 How U.S. Will Save GM and Chrysler

… My guess is that when it’s all over, both companies will have been run through a quickie bankruptcy process and will emerge smaller, with less debt, a lower cost structure and Uncle Sam as the majority owner….

…proposed legislation that would explicitly ban the use of TARP money for lobbying or campaign contributions. GM spokesman…

 

Good news, Earthlings – A California engineer makes a $100-million bet on mass producing fuel from trash

April 22, 2009 at 2:02 pm

(Source: Los Angeles Times)

As the state moves to reduce the carbon footprint of fuel, an engineer hopes to build a plant in Lancaster that will convert garbage into an alcohol-based mixture.

Arnold Klann has a green dream.
It began 16 years ago in a sprawling laboratory in Anaheim. This year, he hopes, it will culminate at a Lancaster garbage dump.  There, in the high desert of the Antelope Valley, Klann’s company, BlueFire Ethanol Fuels, plans to build a $100-million plant to convert raw trash into an alcohol-based fuel that will help power the cars and trucks of the future.

It’s just the sort of improbable concoction that California is now demanding. On Thursday, the state is expected to adopt the world’s first regulation to reduce the carbon footprint of fuel. And, just as California created the first market for catalytic converters decades ago, this rule, a likely model for national and even global calculations, could jump-start a huge demand for new technologies.

Fuel is a critical front in the battle against global warming. Nearly a quarter of the man-made greenhouse gases that the United States spews into the atmosphere comes from transportation. And although cars have reduced unhealthy pollutants such as nitrogen oxides by 99% in recent decades, the gasoline they burn emits as much carbon dioxide as it did a century ago.

California’s proposal “is the first time anyone has attempted, for environmental purposes, to change the content of what goes into cars and trucks,” says Mary D. Nichols, state Air Resources Board chairwoman. “It would revolutionize transportation fuel.”
 
President Obama has also called for a low-carbon standard for the nation’s $400-billion transportation fuel market. A version similar to California’s is incorporated in climate legislation pending before Congress.

But by measuring the “cradle-to-grave” effect of various fuels, the new rule would favor ethanol such as Klann’s, made from non-food sources. Even “low-carbon” corn ethanol — such as the kind produced in California using gas-fired electricity and efficient machinery — has a far higher carbon footprint than so-called cellulosic fuel from landfill waste, trees, switchgrass or sugar cane.

“This is fantastic for us,” said Klann, who uses recycled sulfuric acid to transform paper, construction debris and grass clippings into ethanol. “The paradigm is changing from oil to sustainable fuels. The ones with the lowest carbon footprint will be the winners.”

By 2020, the air board estimates, new-technology fuels along with electricity to power hybrid and electric cars would replace a quarter of the gasoline supply. And that is a critical element of the state’s sweeping plan to reduce its global warming emissions. 

Battered corn ethanol investors have mounted an intense lobbying effort against California’s proposal. Several, including Pacific Ethanol, California’s biggest, had planned to diversify from corn into cellulosic ethanol. They argue that by diminishing the value of their existing plants, the new rule also would cripple their advanced biofuel efforts. 

At issue is the Air Resources Board’s complex modeling, which would calculate each fuel’s carbon footprint not only by its “direct” emissions from drilling or planting to refining to burning, but also “indirect” emissions caused by clearing forests or fields to compensate for food crops such as corn or soy that are diverted to fuel. Opponents say the science behind the indirect modeling is inaccurate. 

Among entrepreneurs like Klann, the mood has never been more hopeful. In an Anaheim lab, the 57-year-old electrical engineer guides a visitor through a maze of pipes, filters, heat exchangers, fermentation tanks and vats of acid like a small boy showing off a chemistry set. “We’re in the forefront of this industry,” he said of his patented “concentrated acid hydrolysis” process. “We expect to have the first plant to produce cellulosic ethanol on a commercial scale.”  

Financing for his Lancaster plant, which recently obtained its final permits, has been delayed by the credit crunch. But if it comes through, the facility will process 170 tons of garbage a day to produce 3.7 million gallons of ethanol a year. Estimated cost per gallon: about $2, Klann says.  

He already has plans for 20 more facilities across the country. Next on the block: a plant outside Palm Springs, partly funded by the U.S. Department of Energy, that would produce 19 million gallons annually. 

Click here to read th entire article.  For interested readers, here is a TransportGooru article on California’s ambitious new fuel regulation standards. 

Tightening the “Green” Screw! California regulators consider instituting first-in-the nation low-carbon fuel standards

New report from The Brookings Institute: Transportation and Climate Change: The Perfect Storm

April 22, 2009 at 10:52 am

(Source: The Brookings Institute)

As Vice President Biden’s Earth Day speech at a Washington area subway station makes clear, the connections between transportation and climate change are undeniable. Therefore, exactly how our metropolitan areas grow—and what type of transportation people use to get from place to place—will have a great impact not only on the economy, but also on global environmental sustainability.

Brookings fellow, Robert Puentes, argues in a new report that we need to change, in a systemic way, how we think about, design and implement transportation policies. Beyond more fuel efficient and alternatively powered vehicles, we need to act to reduce demand for driving by linking housing, land use, and economic development.

Report Excerpts:

Transportation is the single largest contributor to the nation’s carbon footprint, causing more damage than industry, homes or commercial buildings. More than four-fifths of transportation emissions come from the tailpipes of our cars, trucks and buses.  

Three factors affect the amount of carbon released into the air from transportation: the type of fuel we use, the fuel efficiency of the automobiles we drive and the amount of driving we do. Some improvements are being made on the first two legs of this stool with the push for hybrid/electric vehicles and tighter fuel economy standards.

Progress is much slower on the third leg: curbing the demand to drive. Though driving is down now because of our economic malaise, studies show that even small increases will spew out so much carbon that they will wipe out the benefits of fuel-efficient cars and the expansion of clean-fuel alternatives.  Take the Washington metropolitan area. This region is projected to grow from 7.6 million people in 2000 to 10.6 million in 2030. Employment could grow from 4.4 million to 6.4 million workers, and non-residential development from 3.6 billion square feet to 5.2 billion. That means about 60 percent of the buildings that will be here in 2030 will have been built after 2000.

How we accommodate this growing population and economy – whether we break the pattern of “sprawl as usual” – will significantly influence whether we secure our energy independence and forge solutions to global warming and climate change.

Click here to read the entire report.

Tightening the “Green” Screw! California regulators consider instituting first-in-the nation low-carbon fuel standards

April 21, 2009 at 8:16 pm

(Source: San Jose Mercury news Calif. ARB)

SACRAMENTO—California air regulators are taking another step to reduce greenhouse gas emissions, considering first-in-the nation standards to require the use of so-called low-carbon fuels.

The California Air Resources Board, which will debate the standards Thursday, considers the regulation a framework for a potential national policy advocated by President Barack Obama on the campaign trail last year. Democrats have included a goal for low-carbon fuels in the latest climate bill they have introduced in Congress.

“We see this as a model for the rest of the country and the world to follow,” said Air Resources Board member Dan Sperling, a transportation expert and professor at the University of California, Davis.

 The proposed regulation calls for reducing the carbon content in California’s transportation fuels 10 percent by 2020, but representatives of the petroleum and ethanol industries are objecting to how the state proposes to achieve that.

California oil producers and refiners are skeptical that cleaner fuels and vehicles powered by hydrogen and natural gas will be available in time to meet the new standards. They are asking the Air Resources Board to delay a decision until next year.

“This is the most transforming fuel regulation we’ve ever done,” said Kathy Rehis-Boyd, executive vice president of the Western States Petroleum Association. “We think there’s still more homework to do on this. There’s a lot of uncertainty.”

“We have a long history of what I call ‘fuel du jour’ approaches,” Sperling said. “What we need is a broad policy framework that doesn’t pick winners.”

The Air Resources Board is not just targeting the emissions of the fuel once it is burned in a vehicle. It also wants to account for all carbon emissions related to the production of the fuel.

For example, refineries could choose to stop buying a heavy crude oil extracted from Canadian oil sands, which takes more energy to convert into gasoline. But accounting for emissions during the entire production cycle of a fuel also would discourage certain fuels from being used in California.

Corn-based ethanol, for example, burns cleanly in a car engine. But making it can take a heavy toll on the environment: Massive tracts of land must be cleared, which requires fuel-powered tractors, then coal- or natural gas-fired plants convert the corn into fuel and petroleum is used to transport the end product to distant markets.

The board’s attempt to estimate emissions from such indirect land use has sparked debate in California and elsewhere.

More than 100 scientists—including those from the National Academy of Engineering, Sandia National Laboratories and a host of universities—petitioned the California Air Resources Board to rethink its position.

They said regulators are acting prematurely because scientists remain divided over how best to calculate carbon emissions tied to biofuels. They also criticized the board for penalizing biofuels by not applying the same standard to oil and natural gas production, although the air board does factor in the emissions tied to drilling, transporting and refining oil and gas.

Click here to read the entire article. For those interested in learning more, visit the California ARB website on this issue.  Shown below is the45-day Notice of Public Hearing to Consider Adoption of a Proposed Regulation to Implement the Low Carbon Fuel Standard   that is made public on the agency website.

Virgin America Becomes First US Airline to Report Its Greenhouse Gas Emissions

April 21, 2009 at 3:29 pm

 (Source: Virgin America & Tree Hugger)

California-based Virgin America (which is an entirely separate company than Virgin Atlantic, by the way…) has announced that it has become the first US airline to join The Climate Registry, committing to report all of its greenhouse gas emissions:

Young Fleet Helps Lower Emissions
Founded in 2007, Virgin Atlantic touts its fuel saving measures: It operates a very young fleet of aircraft (Airbus A320s) which on a fleet-wide basis means that Virgin America emits about 25% fewer emissions than other domestic carriers on the routes it flies. It also undertakes techniques such as single-engine taxiing, a limiting cruising speeds.

The Virgin America press release states that the airline’s move to voluntarily report emissions comes at a critical time as U.S. legislators and the U.S. Environmental Protection Agency (EPA) have recently solicited public input about mandatory GHG emissions reporting policies. In addition, Congressmen Waxman (D-CA) and Markey (D-MA) recently proposed legislation that would require EPA to create greenhouse gas emissions standards for aircraft and aircraft engines by the end of 2012. 

“We are very pleased to welcome Virgin America as our first airline Member. The company is known for being a pioneer in delivering innovative service. Being a pioneer in environmental responsibility, though, makes a significant impact in addressing our very urgent issue of climate change. For taking such a visible leadership role among its peers and other businesses across the U.S., Virgin America should be recognized and serve as a model for other highly visible businesses,” said Diane Wittenberg, Executive Director of The Climate Registry.

Tata Motors sends executives on an environmental tour to Europe – looks to raise eco-awareness;

April 21, 2009 at 2:46 pm

(Source: Autobloggreen & Financial Times)

Executives at India’s Tata Motors admit that their company is a bit behind the times when it comes to environmental awareness when compared to established players in Europe. “We are behind as far as the world is concerned. There are many Scandinavian companies because they are more conscious of this than the rest of us,” says JJ Irani, a director for Tata’s automotive business. He adds, “We are not shy of learning.”

Img. Source: Flickr

“Tata is new at this game,” Mr Irani told the Financial Times, explaining that the Indian group had not concentrated much on environmentally friendly products until now.

 “What we wanted was the experience of other global conglomerates who have been on this journey before,” he said.

For this reason, Irani and a few of his colleagues are currently visiting a number of large European companies in an attempt to pick up a few pointers on how to improve their eco-credentials. In addition, the group has plans to meet with executives at some of the world’s largest oil companies. Irani hopes these meetings will allow Tata to “catch up faster” than if they were on their own.  Mr Irani said he was taking managers from Tata companies to see how other groups behaved. “We want to see what sort of problems they face and how they deal with it so we can catch up faster.”

Tata has come in for heavy criticism from some environmentalists about the Nano, the world’s cheapest car, but the Indian company retorts that it is more fuel-efficient than a motorbike.

Tata sees a big opportunity because it operates in some of the biggest polluting sectors such as power generation, steel manufacturing and chemicals and carmaking. It has set up a group dedicated to exploring ways of becoming more environmentally friendly and has about 100 people working on it across all its companies.

The Tata managers will also meet some grandees of the oil industry including Lord Browne, the former BP chief executive, and Lord Oxburgh, ex-chairman of Shell.

They will also visit executives at banks Standard Chartered and Deutsche Bank as well as Siemens, Europe’s largest engineering group.

On a related note, TATA is releasing its all-electric Indica for the Norwegian market and eventually for the rest of the world. 


Although the all-electric Tata Indica on display at the SAE World Congress in Detroit this week is not the soon-to-be-released model, there’s a lot we can learn from the vehicle – and from TM4’s Eriz Azeroual – about how the technology will be implemented when the new model goes on sale in Norway either later this year or in early 2010 (yes, this is later than previously expected).  A limited number of the Indica’s are already testing in Norway and the TM4 reps are heard saying that Tata Motors is “a cool company. Very aggressive.” Even though they’re most famous for the Nano and apparently wanting to dominate the low-end automobile market, in Europe market they want to be known for electric vehicles.   Norway is a perfect entry point to bring an EV to Europe because there is a high tax on gasoline-powered vehicles. The high cost of electric vehilces isn’t totally equalized by the taxes, but EVs and gas-powered vehicle prices end up being “comparable” in Norway.