Disturbing News from Department of Energy – Audit Cites Nuclear Weapons Drivers Got Drunk (sometimes?!) on Job

November 22, 2010 at 8:52 pm

(source: Washington Post’s Federal Eye)

This is very disconcerting, to say the least. But I’m glad at ths ame time they are working to fix the problem.

Federal agents responsible for driving nuclear weapons and other sensitive materials sometimes got drunk and were detained by police while on the job, according to a new watchdog report.

report released Monday by the Energy Department’s Office of Inspector General found 16 alcohol-related incidents between 2007 and 2009 involving personnel with the National Nuclear Security Administration‘s Office of Surface Transportation (OST). About 600 OST agents are responsible for safely transporting or shipping nuclear weapons and other materials across the country.

Two incidents involved extended overnight missions where OST agents parked convoy vehicles in safe harbor before checking in at nearby hotels, the report said. In separate incidents, an agent was arrested in 2007 for public intoxication while two agents were handcuffed and temporarily detained by police officers in 2009, according to the report.

Click here to read the entire story.

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New Study Report Makes a Strong Case for Plug-In Hybrid Electric Vehicles

November 16, 2010 at 6:04 pm

The U.S. Department of Energy’s Alternative Fuels and Advanced Vehicles Data Center has released a report that evaluates value-added propositions for plug-in hybrid electric vehicles (PHEVs) that might help overcome the initial price premium related to comparable internal combustion engine and hybrid electric vehicles. The report also assesses other non-monetary benefits and barriers related to an emerging PHEV fleet, including environmental, societal, and electric grid impacts.

Image Courtesy: Dept of Energy - Click image to access the entire report

Image Courtesy: Dept of Energy - Click image to access the entire report



Here is a quick peek into the study’s background, objectives, results and conclusions as shown in the fact sheet:

Background:
PHEVs have been the subject of growing interest in recent years because of their potential for reduced operating costs, oil displacement, national security, and environmental benefits. Despite the potential long-term savings to consumers and value to stakeholders, the initial cost of PHEVs presents a major market barrier to their widespread commercialization.
Study Objectives:
  1. To identify and evaluate value-added propositions for PHEVs that will help overcome the initial price premium relative to comparable ICEs and HEVs and
  2. To assess other non-monetary benefits and barriers associated with an emerging PHEV fleet, including environmental, societal, and grid impacts.

Results:

Study results indicate that a single PHEV-30 on the road in 2030 will:

  • Consume 65% and 75% less gasoline than a comparable HEV (Hybrid Electric Vehicle) and ICE (Internal Combustion Engine),  respectively.
  • Displace 7.25 and 4.25 barrels of imported oil each year if substituted for equivalent ICEs and HEVs, respectively, assuming 60% of the nation’s oil consumed is imported.
  • Reduce net ownership cost over 10 years by 8-10% relative to a comparable ICE and be highly cost competitive with a comparable HEV.
  • Use 18-22% less total W2W energy than a comparable ICE, but 8-13% more than a comparable HEV (assuming a 70/30 split of E10 and E85 use in 2030).
  • Emit 10% less Well to Wheel (W2W) CO2 than equivalent ICEs in southern California and emits 13% more W2W CO2 than equivalent ICEs in the ECAR region. This also assumes a 70/30 split of E10 and E85 (ethanol blends) use in 2030.
Image Courtesy: Dept of Energy - Click image to access the entire report

Image Courtesy: Dept of Energy - Click image to access the entire report

Conclusions:

PHEVs and other plug-in vehicles on the road in 2030 may offer many valuable benefits to utilities, business owners, individual consumers, and society as a whole by:

  • Promoting national energy security by displacing large volumes of imported oil.
  • Supporting a secure economy through the expansion of domestic vehicle and component manufacturing.
  • Offsetting the vehicle’s initial price premium with lifetime operating cost savings (e.g., lower fuel and maintenance costs).
  • Supporting the use of off-peak renewable energy through smart charging practices. However, smart grid technology is not a prerequisite for realizing the benefits of PHEVs.
  • Potentially using its bidirectional electricity flow capability to aid in emergency situations or to help better manage a building’s or entire grid’s load.

PHEVs and other plug-in vehicles still face barriers to commercial acceptance:

  • In the near term, the cost of energy storage, charging equipment, and PE&EM components must continue to descend to competitive levels, such as the ones assumed in this study. Industry trends imply that these cost reductions are on track to reach competitive price levels.
  • PHEVs’ inability to reduce carbon emissions relative to ICEs unless they are powered primarily by non-carbon energy sources. A grid-connected vehicle’s high dependence on its region’s generation mix is very evident in this study’s findings. Operating in regions with a high percentage of non- or low-carbon energy sources (e.g., renewable, nuclear, and natural gas) would ultimately help improve the long-term environmental impacts of PHEVs.

Note: The Acronym PHEV-30 stands for Plug-in Hybrid Electric Vehicle with an All Electric Range (AER) equivalent of 30 miles.

Click here to download/access the entire report (PDF – 218 pages long).

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Publication Alert: U.S. Dept. of Energy Publishes 29th Edition of Transportation Energy Data Book

August 17, 2010 at 1:29 pm

The U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy has released the latest issue of its annual statistical compendium designed to characterize transportation activity and explore data on other factors that influence transportation energy use.

Published by Oak Ridge National Laboratory (ORNL) under contract with the U.S. Department of Energy, this report is designed for use as a desk-top reference.  The Data Book represents an assembly and display of statistics and information that characterize transportation activity, andpresents data on other factors that influence transportation energy use. The purpose of this document is to present relevant statistical data in the form of tables and graphs. The latest edition of the Data Book is available to a larger audience via the Internet (cta.ornl.gov/data).
This edition of the Data Book has 12 chapters which focus on various aspects of the transportation industry.  The sources used represent the latest available data. There are also three appendices which include detailed source information forsome tables, measures of conversion, and the definition of Census divisions and regions. A glossary of terms and a title index are also included for the reader’s convenience.

Information on ordering printed copies of the report is available online.

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National Renewable Energy Laboratory Publication – Plug-in Electric Vehicle Infrastructure: A Foundation for Electrified Transportation

August 3, 2010 at 3:41 pm

(Source: via Transportation Research Board Weekly E-Newsletter)

The National Renewable Energy Laboratory has released a report that explores the components of plug-in electric vehicle infrastructure, challenges and opportunities related to the design and deployment of the infrastructure, and the potential benefits.

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Senate resuscitates Hydrogen Car Project with $187M funding approval

October 16, 2009 at 12:10 pm

(Sources: Washington Post, Fuel Cell Today & Huliq News)

The hydrogen car may have legions of fervent fans, but Energy Secretary Steven Chu apparently is not among them. Earlier this year, the Nobel prize-winning scientist essentially zeroed government funding for the clean vehicles and came close to mocking their potential, saying the technology needs four “miracles” before it can become widely adopted.

“Saints only need three,” he cracked in a magazine interview.

But the hydrogen car is back. On Thursday, the Senate agreed to restore nearly all the money for hydrogen car research that the administration had proposed to cut.

The measure, part of an appropriations bill previously approved by the House, is expected to be signed by President Obama.

“It’s the right set of priorities,” said Sen. Byron L. Dorgan (D-N.D.), a leader in the effort to fund the technology. “If you discontinue the research, you shortchange the future.”

This year’s revival of government funding is unlikely to end the broader dispute over hydrogen cars, however. Before the cars can become much more than an experiment on American roads — it is estimated that there are fewer than 200 operating in the United States — the industry may need as much as $55 billion more in government support over the next 15 years, according to industry sources and a National Research Council report last year. That money would pay for more research and subsidies to build fueling stations.

By comparison, the amount appropriated Thursday is meager: $187 million. But even that level of government support has critics, who say the possibilities and benefits of the technology have been wildly exaggerated. In a press release published on the Fuel Cell Today, the USFCC said ” The bill approved by Congress is a significant win for fuel cells overall. The Obama administration requested $68 million for the EERE program. Under the final Congressional compromise, funding for fuel cells and hydrogen will receive $174 million, or $106 million higher than the Obama administration’s request.”

Funding for research into production of the hydrogen car is highly controversial. There are currently less than 200 of these cars operating in the United States.

The issue is the additional funding that will be required to establish fueling stations across the country to support these vehicles. It is currently estimated that an additional $55 billion of government support could be required to make that a reality.

Nevertheless, hydrogen cars might represent the future for automobiles in this country. These cars are fueled with hydrogen gas which combines with oxygen in the air. The only byproduct of this fuel is water vapor. This means that hydrogen fuel cell cars may provide the best means of reaching the goal of emission-free vehicles.

The reality of hydrogen powered vehicles is really not such a stretch. In Iceland, the first country to begin making a truly concerted effort to break free from the constraints and costs of fossil fuel, hydrogen powered cars and ships are already a reality. Iceland has been working on this technology for years, and does have an advantage over many other countries in the world because so much of the energy sources in Iceland are from renewable sources, such as geo-thermal and hydro-electric power.

The governments of Norway, Japan and Germany also are investing hundreds of millions in the technology, with the Germans aiming to build 1,000 stations by 2015, according to auto industry sources.

Here are some articles on the investments around the world:

Click here to read more.

Cash for Clunkers Update: $2B Additional Funding Taken from Renewable Energy Loan Guarantee Program

August 8, 2009 at 11:09 am

(Source: Green Car Congress, CNN & Streetsblog)

On Friday, President Obama signed into law H.R. 3435, which provides $2 billion FY 2009 emergency supplemental appropriations for the Consumer Assistance to Recycle and Save Program (Cash-for-Clunkers, C4C).

The additional $2 billion for the supplementary funding to keep the C4C program going is being transferred from the amount made available for Department of Energy–Energy Programs—Title 17—Innovative Technology Loan Guarantee Program in title IV of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5).

One of the arguments in favor of passing the bill prior to the Senate showdown, that offering $2 billion in extra “clunkers” cash would not amount to deficit spending, stems from Democratic leaders’ decision to shift the funds over from a Department of Energy (DoE) loan guarantee program.

That strategy was designed to appeal to fiscal hawks who would have a difficult time voting to add to the already trillion-dollar federal deficit. Indeed. Sen. Claire McCaskill (D-MO) already put her leaders on notice (via Twitter) that she could only vote yes on “clunkers” if no new money was spent.

But the DoE loans in question were approved to encourage the development of alternative energy and biofuels, two “green job” creators that have influential allies on Capitol Hill. Senate Energy Committee Chairman Jeff Bingaman (D-NM) is already criticizing the shift as a raid on the clean-energy pot, and Renewable Fuels Association chief Bob Dineen said he wants Congress to promptly put the $2 billion back home at the DoE:

The ethanol industry understands the trying economic times this country finds itself in and thus supports ideas like the “cash for clunkers” program, but is concerned to see the program paid for by depleting the renewable energy loan guarantee program. We hope Congress will move quickly to replenish the fund. One of the advantages of the “cash for clunkers” program is putting more fuel efficient cars on the road, however those new cars should also be running on renewable fuels like ethanol in order to benefit both the changing climate and the domestic economy. For the U.S. long term auto and fuel needs, it seems counterproductive to limit the renewable fuels industry.

We support the efforts to improve fuel efficiency, and this program is a good step. But it should not come at the expense of technologies that will lead America away from petroleum all together. We strongly encourage Congress to replace the $2 billion borrowed at the first possible opportunity.

Replenishing the DoE fund would take place in a separate vote later this year, however, making it easier for lawmakers to claim they’re not adding to the deficit with this week’s “clunkers” vote.

“It has proved to be a highly successful vehicle marketing tool,” said Tim Evans, energy analyst for Citi Futures Perspective in New York. “But you would need a microscope to see the demand impact for gasoline from this program because it involves a relatively small number of vehicles.”

The Reuters estimate assumes an average upgrade in fuel efficiency of 10 miles per gallon, which is in line with initial auto industry statistics on new trade-ins.

Click here to read the entire article.

President Obama Announces $2.4 Billion in Grants to Accelerate the Manufacturing and Deployment of the Next Generation of U.S. Batteries and Electric Vehicles

August 6, 2009 at 3:51 pm

(Source: DOE & Tree Hugger)

President Obama was in Indiana yesterday to announce how $2.4 billion dollars from the Recovery Act will be divided up between 48 different battery and electric vehicle projects.”If we want to reduce our dependence on oil, put Americans back to work and reassert our manufacturing sector as one of the greatest in the world, we must produce the advanced, efficient vehicles of the future,” said President Obama. “With these investments, we’re planting the seeds of progress for our country and good-paying, private-sector jobs for the American people,” he said.

Image Courtesy: Department of Energy - map of the award locations

“For our nation and our economy to recover, we must have a vision for what can be built here in the future – and then we need to invest in that vision,” said Vice President Biden. “That’s what we’re doing today and that’s what this Recovery Act is about.”

“These are incredibly effective investments that will come back to us many times over – by creating jobs, reducing our dependence on foreign oil, cleaning up the air we breathe, and combating climate change,” said Energy Secretary Steven Chu. “They will help achieve the President’s goal of putting one million plug-in hybrid vehicles on the road by 2015. And, most importantly, they will launch an advanced battery industry in America and make our auto industry cleaner and more competitive.”

The announcement marks the single largest investment in advanced battery technology for hybrid and electric-drive vehicles ever made. Industry officials expect that this $2.4 billion investment, coupled with another $2.4 billion in cost share from the award winners, will result directly in the creation tens of thousands of manufacturing jobs in the U.S. battery and auto industries.

So Where’s All That Money Going?

The money is going to three main categories of projects:

  • $1.5 billion in grants to U.S. based manufacturers to produce batteries and their components and to expand battery recycling capacity;
  • $500 million in grants to U.S. based manufacturers to produce electric drive components for vehicles, including electric motors, power electronics, and other drive train components; and
  • $400 million in grants to purchase thousands of plug-in hybrid and all-electric vehicles for test demonstrations in several dozen locations; to deploy them and evaluate their performance; to install electric charging infrastructure; and to provide education and workforce training to support the transition to advanced electric transportation systems.

Most of the grant winners are familiar names, with Detroit firms getting a substantial share. But who’s the biggest winner? Here are some of the winners:

  • Johnson Controls: $299.2 million for the production of nickel-cobalt-metal battery cells and packs, as well as production of battery separators (by partner Entek) for hybrid and electric vehicles.
  • A123 Systems: $249.1 million for the manufacturing of nano-iron phosphate cathode powder and electrode coatings; fabrication of battery cells and modules; and assembly of complete battery pack systems for hybrid and electric vehicles.
  • General Motors: $105.9 million for the production of high-volume battery packs for the GM Volt (the cells will be from LG Chem, Ltd. and other cell providers to be named), plus another $105 million for the construction of U.S. manufacturing capabilities to produce the second-generation GM global rear-wheel electric drive system. That’s not all. There’s also another $30.5 million to develop, analyze, and demonstrate hundreds of Chevrolet Volt Extended Range Electric Vehicles (EREVs) –125 Volt PHEVs for electric utilities and 500 Volt PHEVs to consumers. (for a total of $241.4 million)

The complete list of the 48 grants can be found here (pdf).

National lab wants to save seven billions gallons of gasoline/year spent on running A/C in American cars

June 29, 2009 at 11:24 pm

(Source: Wired)

Image Courtesy: Apture

Seven billion gallons of gasoline. That’s how much fuel America consumes each year just running the air conditioning in their cars. And don’t think riding with the windows down is the answer; the Mythbusters have long since debunked that solution.

That’s 5.5 percent of the country’s fuel use, and the Environmental Protection Agency (EPA) says auto air conditioning contributes more than 58 million metric tons of carbon dioxide emissions annually. Factor in a 50 million additional tons of CO2 due to refrigerant leakage and you have a environmentally unhealthy result that no American would be proud of.

In the age of gaining independence from oil and seeking responsible consumption, the Department of Energy (DOE) has funded the National Renewable Energy Lab (NREL) to seek solutions to make air conditioning and other similar ancillary systems more efficient. The findings of this research can help automakers hit President Obama’s target for increased average fuel efficiency and put a dent in the carbon footprint of American cars. Research on cabin cooling efficiency is aimed at three areas:

  • System View: A full system analysis and redesign of the vehicle cabin thermodynamics using UV glass coatings, insulation and electrically driven compressors vs. traditional belt driven units
  • Efficient Delivery: Using more direct delivery methods such as low-mass seats, ventilated, and thermo-electrically cooled seats. The approach – Why make the whole cabin comfortable when your aims are only to make the passengers comfortable?
  • High Risk Research: Investigating ways to turn waste heat and ambient noise, generated by an engine, into usable energy. Thermal acoustics, for instance, uses sound waves to transform heat into usable electricity.

What’s in it for the OEMs and to us – the consumers? Here are some of the reasons:

  • The Obama Administration plans to increase the average fuel efficiency of America’s cars from 27.5 mpg to 35.5 mpg within seven years. It also requires automakers to curb tailpipe emissions by 40 percent. Given the impact air conditioning and other ancillary systems has on fuel consumption, any improvements in that area will be embraced by automakers.
  • Air conditioning systems have a big impact on hybrid and electric vehicles. In a typical gasoline vehicle, the air conditioning will cut your fuel efficiency 15 to 20 percent. But in a hybrid, it can cut the effective fuel efficiency and range by 15 to 35 percent. Increasing the efficiency of the cooling system could boost fuel economy and range.
  • The UK’s ban of hydrofluorocarbon-134a (HFC-134a) gas, more commonly known as the stuff that makes your A/C work. Because HFC-134a is a known greenhouse gas, the ban could lead to the use of less-efficient alternatives as was the case when the U.S. banned CFCs. The UK ban was adopted in 2004 and takes effect early next year.

The National Renewable Energy laboratory says its work, if it is implemented by the auto industry, could save us 3 billion gallons of gas a year.

Click here to read the entire article.

TransportGooru Musings:  The OEMs are already cranking up their own research and the market is seeing a glimpse of what’s been cooking in the labs thus far.  The Energy Department in December awarded $4.2 million to Ford and $2.3 million to General Motors to help them develop thermoelectric climate control systems. From the Japanese stable, the latest model of Toyota Prius features an solar electric panel on the roof that powers the air-conditioning, saving on gallons of gasoline that most cars use to power the A/C.   The solar panels on the roof of the new Prius model will provide 2 to 5 kilowatts of electricity, enough to power the A/C fan, making it a wonderful option for folks living in hot climate zones.  Wanna know what’s even more fun?  You can activate the A/C  from inside your house (actually, anywhere within 30 ft radius) remotely using your key fob, making the car cool and comfortable when are ready to climb into it for your saturday afternoon shopping trip.  You don’t have to dread getting into your car anymore after leading it outside in your drive baked under the sun.  Not forget, Toyota made an awesome commercial showing off this new feature, which you can check it out here.

GAO says Plug-in Vehicles Offer Potential Benefits, but High Costs and Limited Information Could Hinder Integration into the Federal Fleet

June 11, 2009 at 5:32 pm

(Source: U.S. Government Accountability Office)

The U.S. transportation sector relies almost exclusively on oil; as a result, it causes about a third of the nation’s greenhouse gas emissions. Advanced technology vehicles powered by alternative fuels, such as electricity and ethanol, are one way to reduce oil consumption. The federal government set a goal for federal agencies to use plug-in hybrid electric vehicles–vehicles that run on both gasoline and batteries charged by connecting a plug into an electric power source–as they become available at a reasonable cost. This goal is on top of other requirements agencies must meet for conserving energy.

In response to a request, GAO examined the:

(1) potential benefits of plug-ins,

(2) factors affecting the availability of plug-ins, and

(3) challenges to incorporating plug-ins into the federal fleet. GAO reviewed literature on plug-ins, federal legislation, and agency policies and interviewed federal officials, experts, and industry stakeholders, including auto and battery manufacturers.

Increasing the use of plug-ins could result in environmental and other benefits, but realizing these benefits depends on several factors. Because plug-ins are powered at least in part by electricity, they could significantly reduce oil consumption and associated greenhouse gas emissions. For plug-ins to realize their full potential, electricity would need to be generated from lower-emission fuels such as nuclear and renewable energy rather than the fossil fuels–coal and natural gas–used most often to generate electricity today. However, new nuclear plants and renewable energy sources can be controversial and expensive. In addition, research suggests that for plug-ins to be cost-effective relative to gasoline vehicles the price of batteries must come down significantly and gasoline prices must be high relative to electricity.

Auto manufacturers plan to introduce a range of plug-in models over the next 6 years, but several factors could delay widespread availability and affect the extent to which consumers are willing to purchase plug-ins. For example, limited battery manufacturing, relatively low gasoline prices, and declining vehicle sales could delay availability and discourage consumers. Other factors may emerge over the longer term if the use of plug-ins increases, including managing the impact on the electrical grid (the network linking the generation, transmission, and distribution of electricity) and increasing consumer access to public charging infrastructure needed to charge the vehicles.

The federal government has supported plug-in-related research and initiated new programs to encourage manufacturing. Experts also identified options for providing additional federal support. To incorporate plug-ins into the federal fleet, agencies will face challenges related to cost, availability, planning, and federal requirements. Plug-ins are expected to have high upfront costs when they are first introduced. However, they could become comparable to gasoline vehicles over the life of ownership if certain factors change, such as a decrease in the cost of batteries and an increase in gasoline prices.

Agencies vary in the extent to which they use life-cycle costing when evaluating which vehicle to purchase. Agencies also may find that plug-ins are not available to them, especially when the vehicles are initially introduced because the number available to the government may be limited. In addition, agencies have not made plans to incorporate plug-ins due to uncertainties about vehicle cost, performance, and infrastructure needs.

Finally, agencies must meet a number of requirements covering energy use and vehicle acquisition–such as acquiring alternative fuel vehicles and reducing facility energy and petroleum consumption–but these sometimes conflict with one another. For example, plugging vehicles into federal facilities could reduce petroleum consumption but increase facility energy use. The federal government has not yet provided information to agencies on how to set priorities for these requirements or leverage different types of vehicles to do so. Without such information, agencies face challenges in making decisions about acquiring plug-ins that will meet the requirements, as well as maximize plug-ins’ potential benefits and minimize costs.

The recommendations are listed below:

  • To enable agencies to more effectively meet congressional requirements, the Secretary of Energy should, in consultation with Environmental Protection Agency (EPA), General Services Administration (GSA), Office of Management and Budget (OMB), and organizations representing federal fleet customers such as Interagency Committee for Alternative Fuels and Low-Emission Vehicles (INTERFUEL), Federal Fleet Policy Council (FEDFLEET), and the Motor Vehicle Executive Council, propose legislative changes that would resolve the conflicts and set priorities for the multiple requirements and goals with respect to reducing petroleum consumption, reducing emissions, managing costs, and acquiring advanced technology vehicles.
  • The Secretary of Energy should begin to develop guidance for when agencies consider acquiring plug-in vehicles, as well as guidance specifying the elements that agencies should include in their plans for acquiring the mix of vehicles that will best enable them to meet their requirements and goals. Such guidance might include assessing the need for installing charging infrastructure and identifying areas where improvements may be necessary, mapping current driving patterns, and determining the energy sources used to generate electricity in an area.
  • The Secretary of Energy should continue ongoing efforts to develop guidance for agencies on how electricity used to charge plug-ins should be measured and accounted for in meeting energy-reduction goals related to federal facilities and alternative fuel consumption. In doing so, the Secretary should determine whether changes to existing legislation will be needed to ensure there is no conflict between using electricity to charge vehicles and requirements to reduce the energy intensity of federal facilities, and advise Congress accordingly.
  • The Administrator of GSA should consider providing information to agencies regarding total cost of ownership or life-cycle cost for vehicles in the same class. For plug-in vehicles that are newly offered, the Administrator should provide guidance for how agencies should address uncertainties about the vehicles’ future performance in estimating the life-cycle costs of plug-ins, so agencies can make better-informed, consistent, and cost-effective decisions in acquiring vehicles.
  • Once plug-in hybrids and all-electrics become available to the federal government but are still in the early phases of commercialization, the Administrator of GSA should explore the possibility of arranging pass-through leases of plug-in vehicles directly from vehicle manufacturers or dealers–as is being done with DOD’s acquisition of neighborhood electric vehicles–if doing so proves to be a cost-effective means of reducing some of the risk agencies face associated with acquiring new technology.

Click here to read or download the entire report.

U.S. Energy Secretary Steven Chu rules out raising petrol prices to European levels through increased taxes or regulation; says politically infeasible

May 28, 2009 at 11:10 pm

(Source: Financial Times)

Reducing America’s reliance on oil by raising petrol prices to European levels through increased taxes or regulation is not politically feasible, says Steven Chu, US secretary of energy.

The admission comes as Congress considers a cap- and-trade system that opponents say will substantially increase petrol prices just as oil prices soar to their highest level in six months.

In the past Mr Chu, a Nobel laureate, has argued that, if the US wanted to reduce its carbon emissions, policymakers would have to find a way to increase petrol prices to levels in Europe. But in an interview on Wednesday with the Financial Times, Mr Chu said: “At this moment, let me be frank, it is not politically feasible.”

Higher petrol prices are likely to be one of the biggest potential sticking points ofPresident Barack Obama’s cap-and-trade system when the bill moves from the Democrat-controlled House of Representatives to the more conservative Senate late this year.

Mr Chu’s move against using taxes to raise US petrol prices is likely to frustrate environmental advocates who believe that the only way seriously to change Americans’ consumption habits is through higher prices.

Unlike Europe, the US hardly taxes its fuel, leading to pump prices that are often one third of those in Europe and to the average American consuming double the amount of oil of his European counterpart.

But Mr Chu warns that Americans will have to learn to live with higher petrol prices even if Washington does not enact policy that boosts them.

“Regardless of what one does in any sort of taxation, I believe that prices of oil and natural gas will go up in the coming decades,” he said, adding: “They will naturally go up just because of fundamental supply and demand issues.”

Mr Chu was adamant that a cap-and-trade system would be necessary to cut emissions. “We need to begin to put a price on carbon. We need to ratchet down the carbon,” he said.

The bill currently under consideration in Congress would reduce emissions by about 2 per cent a year.

A key question, however, was “how to help the US make the transition”, he said. Many states are heavily dependent on coal, or have energy-intensive industries, and the administration will need to win over lawmakers from these states to have a chance of passing the legislation.

Click here to read the entire article.