(Source: USDOT, Infrastructurist; YouTube)

President Barack Obama, along with Vice President Biden and Secretary LaHood, announced a new U.S. push today to transform travel in America, creating high-speed rail lines from city to city, reducing dependence on cars and planes and spurring economic development.

The President released a strategic plan outlining his vision for high speed rail in America. The plan identifies $8 billion provided in the ARRA and $1 billion a year for five years requested in the federal budget as a down payment to jump-start a potential world-class passenger rail system and sets the direction of transportation policy for the future. The strategic plan will be followed by detailed guidance for state and local applicants. By late summer, the Federal Railroad Administration will begin awarding the first round of grants.

The Infrastructurist summaries this nicely: ” In fact, he (President Obama) doesn’t pull any punches in saying that rail is a *better* way to travel than car or plane. It’s “faster, easier, and cheaper than building more freeways.” And he conjures the appeal of travel from city center to city center without having to dash out to far-flung airports — “no sitting on the tarmac, no lost luggage, no taking off your shoes.” And: “High-speed rail is long-overdue, and this plan lets American travelers know that they are not doomed to a future of long lines at the airports or jammed cars on the highways.”

The report formalizes the identification of ten high-speed rail corridors as potential recipients of federal funding. Those lines are: California, Pacific Northwest, South Central, Gulf Coast, Chicago Hub Network, Florida, Southeast, Keystone, Empire and Northern New England. Also, opportunities exist for the Northeast Corridor from Washington to Boston to compete for funds to improve the nation’s only existing high-speed rail service.

President Obama’s vision for high-speed rail mirrors that of President Eisenhower, the father of the Interstate highway system, which revolutionized the way Americans traveled. Now, high-speed rail has the potential to reduce U.S. dependence on foreign oil, lower harmful carbon emissions, foster new economic development and give travelers more choices when it comes to moving around the country.

“My high-speed rail proposal will lead to innovations that change the way we travel in America. We must start developing clean, energy-efficient transportation that will define our regions for centuries to come,” said President Obama. “A major new high-speed rail line will generate many thousands of construction jobs over several years, as well as permanent jobs for rail employees and increased economic activity in the destinations these trains serve. High-speed rail is long-overdue, and this plan lets American travelers know that they are not doomed to a future of long lines at the airports or jammed cars on the highways.”

“Today, we see clearly how Recovery Act funds and the Department of Transportation are building the platform for a brighter economic future – they’re creating jobs and making life better for communities everywhere,” said Vice President Biden. “Everyone knows railways are the best way to connect communities to each other, and as a daily rail commuter for over 35 years, this announcement is near and dear to my heart. Investing in a high-speed rail system will lower our dependence on foreign oil and the bill for a tank of gas; loosen the congestion suffocating our highways and skyways; and significantly reduce the damage we do to our planet.”

Ten major corridors are being identified for potential high-speed rail projects:

 (Source: Time)

A Lot Full of Old Clunkers For Sale

It’s no secret that one of the biggest reasons the U.S. auto industry is teetering on collapse is that, quite simply, Americans have stopped buying cars. U.S. auto sales were down 37% in March from 2008, the latest in a nearly unbroken year-and-a-half streak of falling sales. And if the cratered economy is the main culprit behind backed-up inventory at U.S. car dealers, another is that American automakers have failed to produce the more fuel-efficient vehicles that gas-price-conscious car buyers are beginning to demand. As a result, the U.S. still sends hundreds of billions of dollars overseas for oil — and adds ever more greenhouse-gas pollution into the atmosphere. 

Now what if there were a way to tackle both these problems with one policy: to stimulate demand for American cars while making the U.S. auto fleet cleaner, greener and more efficient? It sounds like the kind of slick two-for-one pitch you might hear from a used-car salesman, but that’s exactly what proponents of a “cash for clunkers” program are promising.

But is cash-for-clunkers really two-for-one? That depends. There are currently two main bills in the House and Senate, which, according to greens, are not created equal. One, sponsored by Democratic Ohio Representative Betty Sutton, allows any car from model year 2000 or earlier to be traded in, without any restriction on fuel economy. In return, car buyers will get $4,000 if they buy a new U.S. car that gets a minimum mileage of 27 m.p.g. and $5,000 if they buy a U.S. car with at least 30 m.p.g. Crucially, the new cars have to be made in the U.S. — foreign brands can qualify, but only if they’re manufactured on U.S. soil, which would disqualify super-efficient vehicles like Toyota’s Prius hybrid, made only in Japan.

Whichever bill is chosen — and others are being circulated as well — a successful cash-for-clunkers program wouldn’t be cheap. Germany’s program may end up costing the government some $6 billion, three times the initial price tag. Since Obama has said that money for the cash-for-clunkers program needs to come out of existing stimulus spending, that might take some creative accounting. But a cash-for-clunkers program, whatever its environmental benefits, would provide the government with a way to aid the domestic auto industry without giving Detroit any more direct handouts. “There’s a lot of justifiable taxpayer reluctance to keep helping the auto industry,” says Goldstein of the Center for American Progress. “Politically this is a viable alternative to sending them additional loan money.”

(Source:  Autobloggreen)

Upon returning from a recent trip to Thailand, some friends of mine related experiences of what it’s like to travel on somewhat primitive roads in somewhat primitive vehicles. Disconcerting at first, apparently, but totally acceptable after a few trips prove that it’s (relatively) safe. The vehicles of choice in Thailand, along with a bunch of other far-away locales, are Tuk Tuks, three-wheeled machines that marry the front end of a scooter to the rear end of a passenger car. Soon, you’ll be able to get one in America.

We just got an email message from Tuk Tuk North America informing us that the company has officially been granted both DOT and EPA approval for its line of Mitsubishi-powered three-wheelers. This means that the Tuk Tuk will be completely road legal here in the United States. We’re not so sure you’d want to drive one cross-crountry (though we understand it’s fully capable of such trips), but as an around-town errand-runner, the little scoots might work out just fine, returning an estimated 55 miles per gallon.

Click here to read the entire article.

(Source:  Greenwire – New York Times; AutoBlogGreen)

Chuck Hurley - Image Courtesy: Dickinson College

Hurley has served as CEO of Mothers Against Drunk Driving since 2005 and has spent more than three decades working on a host of driving safety initiatives. He previously held senior leadership posts at both the National Safety Council and the Insurance Institute for Highway Safety, a nonprofit research group funded by auto insurers.

The insurance institute has been critical of past CAFE proposals and has backed an auto industry argument that a disproportionate focus on increasing fuel mileage would lead to smaller and less safe cars (See a related article on TransportGooru that discussed the latest IIHS crash test results correlating vehicle safety during crashes to the size and fuel effieicency factors of small cars). The group helped lead a successful industry push for CAFE standards that use an attribute-based system that requires cars and trucks to achieve different standards depending on each vehicle’s footprint.

Hurley’s work with the institute during the 1990s was enough to worry Dan Becker, director of the Safe Climate Campaign, which has advocated for fuel economy increases. “It would be awkward to have an administrator of NHTSA who’s spent much of his career attacking fuel economy standards that NHTSA administers,” he told the Wall Street Journal.

With exception of the fuel economy concern, Hurley’s nomination drew near-universal praise from highway safety advocates.  In addition to his extensive work on drunk-driving issues, Hurley has also worked with law enforcement agencies on air bag and seat belt issues, child passenger safety and teen driving initiatives.  “Chuck is a passionate safety advocate whose career has been dedicated to reducing motor vehicle deaths and injuries on the highways,” said Vernon Betkey Jr., chairman of the Governors Highway Safety Association.

(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: Washington Post)

For the Defense Department, the largest consumer of energy in the United States, addiction to fuel has greater costs than the roughly $18 billion the agency spent on it last year.

(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: 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.