(Source: Wall Street Journal & Politico via Yahoo)

WASHINGTON — The Obama administration plans to order auto makers to increase the overall fuel economy of automobiles sold in the U.S. to 35 miles per gallon by 2016, four years faster than current federal law requires, people familiar with the matter said Monday.

The move is part of a broader overhaul of fuel economy rules aimed at cutting greenhouse-gas emissions.

Image: Fueleconomy.gov

The Obama administration is expected to announce a plan to revamp federal vehicle fuel-efficiency standards to bring them into harmony with the goals of a California greenhouse-gas law. The Environmental Protection Agency and the Department of Transportation will jointly raise fuel-economy standards and reduce greenhouse-gas pollution under the plan.

Separately, auto makers have agreed to drop litigation challenging the legality of state-level curbs on tailpipe emissions of greenhouse gases, people familiar with the matter said.

An announcement of the agreement is expected Tuesday, with representatives of several large auto companies, including General Motors Corp. Chief Executive Fritz Henderson, and the president of United Auto Workers, Ron Gettelfinger, planning to participate, people familiar with the matter said.

The agreement worked out by aides to President Barack Obama represents a partial victory for the auto industry. The industry will be able to operate under a single national standard on fuel economy, rather than multiple regimes at the federal and state levels. Auto makers have long opposed California’s tailpipe emissions program as tantamount to state-level regulation of fuel economy, traditionally a federal responsibility.

But the standards will require huge investments by auto makers to remake their U.S. fleets so that they have roughly the same overall efficiency as vehicles they now sell in Europe, where gasoline is two to three times more expensive as in the U.S. By moving the 35 mpg requirement to 2016 from 2020, the administration is stepping up the pressure on the industry to overhaul its product lineup faster. It typically takes three to four years for auto makers to design and bring a new vehicle to market.

Auto executives are flying into Washington from around the world for the White House announcement.   California Gov. Arnold Schwarzenegger, a Republican, is expected to attend, the sources said.

The CAFE standard was established by Congress in 1975 in response to the Arab Oil embargo.   A 2007 energy law requires auto makers to boost the average fuel economy of their vehicle fleets to at least 35 miles per gallon by 2020, a 40% increase from the roughly 25 mpg standard for the current fleet.  Last summer, the Transportation Department estimated that requiring auto makers to achieve 31.6 mpg by 2015 would cost the industry $46.7 billion, a sum the agency said would make it among the most expensive rule makings in U.S. history.

“This rule will be a down payment on a broader and sustained effort to reduce our dependence on foreign oil,” he said. “Going forward, my administration will work on a bipartisan basis in Washington and with industry partners across the country to forge a comprehensive approach that makes our economy stronger and our nation more secure.”

According to two industry officials familiar with the plan, mileage standards would rise slowly at first — from a combined requirement of 27.3 miles per gallon for cars and trucks in 2011 — and faster approaching roughly 35 miles per gallon in 2016. That would give auto makers more time to adjust — and collect credits if they can manage to exceed earlier targets — before the steeper increases kick in.

It is unclear how quickly the EPA and the Transportation Department’s National Highway Traffic Safety Administration will be able to make a formal proposal for curbing emissions and boosting fuel economy. The EPA on Monday was holding a public hearing on its proposal to find that greenhouse gases endanger public health, the first step toward regulating them.

The Energy Department has requested $30 million to relaunch a program to make radioactive plutonium-238, the supply of which is running low.

The Energy Department plans to restart its program of making radioactive fuel for NASA’s deep space missions, the agency announced Thursday, a decision that came only hours after the National Research Council warned that the nation was fast running out of the fuel.

Jen Stutsman, a spokeswoman for the department, said the agency had requested $30 million in its fiscal 2010 budget proposal to restart the fuel-making process. In its budget statement, the agency said it had “a long and successful history” of supporting NASA’s needs. It said it welcomed the National Research Council findings.

For such research, which includes the New Horizons mission now heading for Pluto and the Cassini mission now orbiting Saturn, the electricity that powers onboard instruments comes from devices called radioisotope power generators. The RPGs make electricity with the heat from the radioactive decay of small amounts of plutonium-238 carried on board. 

According to Ralph McNutt, a space scientist at Johns Hopkins University and co-chairman of the committee that produced the report, the United States stopped making Pu-238 about 20 years ago, with the end of the Cold War. Although Pu-238 is not weapons-grade material, it is a byproduct of making the more dangerous Pu-239, he said.

(Source: LA Times)

(Source: Autobloggreen)

The message has been hinted at before, but the federal government is now serious about shifting the focus away from hydrogen and onto plug-in vehicles. In an important statement yesterday, Department of Energy Secretary Steven Chu said that hydrogen vehicles are still 10 to 20 years away from practicality and that millions in federal government funding for hydrogen programs will be cut from the 2010 federal budget. Chu said, “We asked ourselves, ‘Is it likely in the next 10 or 15, 20 years that we will covert to a hydrogen car economy?’ The answer, we felt, was ‘no'” (well, duh).

Did we mention this is a big reversal? Just a few weeks ago, Chu announced $41.9 million for hydrogen projects. A major switch, but not totally surprising. During the presidential campaign last fall, Obama did call for a million PHEVs by 2015.

The U.S. Fuel Cell Council and the National Hydrogen Association quickly released a joint statement against the budget cuts.  Here is the full presser:

PRESS RELEASE:

Hydrogen and Fuel Cell Associations Criticize DOE Program Cuts

Official Joint Statement
Washington, DC

May 7, 2009-The National Hydrogen Association (NHA) and U.S. Fuel Cell Council (USFCC) issued the following joint statement regarding the Obama Administration’s FY 2010 budget request for the U.S Department of Energy:

“The cuts proposed in the DOE hydrogen and fuel cell program threaten to disrupt commercialization of a family of technologies that are showing exceptional promise and beginning to gain market traction.

“Fuel cell vehicles are not a science experiment. These are real vehicles with real marketability and real benefits. Hundreds of fuel cell vehicles have collectively logged millions of miles. 

“Both the National Academy of Sciences and NHA’s recent Energy Evolution report conclude that a portfolio of vehicle technologies is needed to achieve the nation’s energy and environmental security goals and that hydrogen is essential to success. Hydrogen also advances the Obama Administration’s goals of greener power generation and a smarter power grid.

“The National Academy recommended a portfolio approach and we are frankly puzzled at the Energy Department’s decision to ignore that recommendation even as the Department uses other material from the same report to justify its proposed cut.

“We are also concerned that the Department appears to be walking away from its Market Transformation activities, which support fuel cell deployment in early commercial applications. This Congressionally-mandated program is demonstrating the ability of fuel cells to provide a competitive and green alternative to battery-based systems in vehicles and in power supply.

“Finally, we are concerned that the Department has proposed to cut funds for the Solid State Energy Conversion Alliance (SECA). SECA success could dramatically lower the cost of carbon sequestration, improve power plant efficiency, and enable a virtually pollution-free coal plant in the future. Additional funding will hasten SECA progress.”

The NHA and USFCC collectively represent more than 200 companies and organizations.

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A related post on TransportGooru.com: 

Biofuels Get a Boost – Secretary Chu Announces Nearly $800 Million from Recovery Act to Accelerate Biofuels Research and Commercialization

(Source: GreenBiz via Reuters)

The Obama administration established a Biofuels Interagency Working Group this week in a move that carries implications for the industry on several fronts, including regulatory and research and development. 
 
The Biofuels Interagency Working Group, comprised of the U.S. Environmental Protection Agency, Department of Energy (DOE)  and Department of Agriculture, will develop a biofuel market development program, coordinate biofuel infrastructure policies, study biofuel lifecycle and help existing biofuel producers secure credit and refinancing.

Meanwhile, the DOE will spend $786.5 million in stimulus funds on demonstration projects and research to accelerate the adoption of next-generation biofuels. 

For example, the agency will dole out $480 million on 10 to 20 pilot-scale and demonstration-scale projects, with a ceiling of $25 million and $50 million, respectively. Another $176.5 million shall be used to increase funding for two or more commercial-scale biorefinery projects that previously received government assistance.

The DOE biomass program also will dedicate $130 million toward research into ethanol, algal biofuels and biofuel sustainability research.

The proposal breaks down renewable fuels into four categories: cellulosic biofuels, biomass-derived diesel, advanced biofuels, and total renewable fuel. The fuels must produce fewer greenhouse gas emissions than conventional fuels, but there is great debate within the biofuel industry about how these lifecycle assessments should be calculated.

$480 million solicitation for integrated pilot- and demonstration-scale biorefineries

Projects selected under this Funding Opportunity Announcement will work to validate integrated biorefinery technologies that produce advanced biofuels, bioproducts, and heat and power in an integrated system, thus enabling private financing of commercial-scale replications.

DOE anticipates making 10 to 20 awards for refineries at various scales and designs, all to be operational in the next three years.  The DOE funding ceiling is $25 million for pilot-scale projects and $50 million for demonstration scale projects.

These integrated biorefineries will reduce dependence on petroleum-based transportation fuels and chemicals. They will also facilitate the development of an “advanced biofuels” industry to meet the federal Renewable Fuel Standards.

(Source: NY Times)

WASHINGTON — Ray LaHood, the secretary of transportation, is not one to toot his own horn over how much he knows about planes, trains and automobile bailouts. On the contrary.

“I don’t think they picked me because they thought I’d be that great a transportation person,” Mr. LaHood says with refreshing indifference as to how this admission might play if, say, he were ever to bungle a bridge collapse.

Yes, transportation is Mr. LaHood’s day job, a post that a few days ago required him to attend a groundbreaking ceremony for a highway in New Hampshire, speak to a group about the dangers of tailgating trucks and discuss “bird strikes” on CNN.

But one of the astonishing things about Mr. LaHood, 63, is how limited his transportation résumé is, how little excitement he exudes on the subject (other than abouthigh-speed rail) and how little he seems to care who knows it. So why exactly did President Obama pick this former seven-term Republican congressman from Illinois to oversee everything that moves?

Mr. LaHood posits a theory. “They picked me because of the bipartisan thing,” he explained, “and the Congressional thing, and the friendship thing.”

The “bipartisan thing” and the “Congressional thing” are self-evident: Mr. LaHood is a Republican with close ties to Capitol Hill. One White House insider described Mr. LaHood as “a master of odd jobs,” whose knowledge of Washington allows him to take on assignments as varied as lobbying lawmakers on the budget and helping political novices in the cabinet navigate Beltway social rituals (“cocktail situations,” as Energy Secretary Steven Chu calls them).

In the White House, Mr. Chu describes Mr. LaHood, a former junior high school social studies teacher, as a source of “fatherly advice” for Washington newcomers like himself.

One “cocktail situation” occurred recently at the annual Gridiron Club dinner. Mr. LaHood was seated at the head table near Mr. Chu, and between Arne Duncan andTimothy F. Geithner, the education and Treasury secretaries. The men asked Mr. LaHood if they could flee the dinner before the interminable speechifying ended. No, Mr. LaHood counseled.

“I said, ‘Look, you’re window dressing,’ ” Mr. LaHood said. “ ‘You’re more of a prop. But it’s part of what we have to do.’ ” Mr. Chu and Mr. Duncan heeded the advice; Mr. Geithner did not.

(Source: SUBCOMMITTEE ON TECHNOLOGY AND INNOVATION COMMITTEE ON SCIENCE AND TECHNOLOGY, UNITED STATES HOUSE OF REPRESENTATIVES)

(From L to R): Mr. David Matsuda, Ms. Catherine Ciarlo, Dr. Laurence Rilett, Mr. Steven Winkelman, and Mr. Mike Acott

On Tuesday, March 31, 2009, the Subcommittee on Technology and Innovation convened a hearing to address the research agenda required to mitigate the environmental impact of the transportation infrastructure on the environment, with an emphasis on climate change. Witnesses will address the components of such an agenda and possible implementation strategies.

The second hearing explored the R&D agenda required to improve energy efficiency and lessen the environmental impact of the pavements used in our transportation infrastructure.  The focus of today’s hearing was to examine the R&D that is required to help mitigate the impact of our transportation infrastructure on the climate.

The press release from the event outlines the DOT’s efforts.  The Department of Transportation (DOT) funds research on strategies to reduce the impact of the transportation sector on the environment, but the interest in addressing climate change is relatively new. The following research categories would support the reduction of carbon emissions from transportation:

• Forecasting and analytical tools to support state and local global warming studies;
• Tools to assess system performance;
• Travel behavior;
• Demand management;
• Congestion; and
• Energy use in materials.

“We need to think about improving the energy efficiency of our transportation system, not just the cars and trucks on it,” added  Chariman David Wu. “For example, what are the modeling tools that would help communities develop an effective mixed-use transportation system of cars, buses, light rail, trolleys, and bikes like we have in Portland? If we are serious about congestion mitigation and traffic management, what’s required to realize these goals?”

Throughout the 111th Congress the Technology and Innovation Subcommittee will continue its work to decrease the impact of our transportations systems on the environment. In May 2007, the Subcommittee held a hearing to address the regulatory barriers preventing the utilization of green technologies. This hearing resulted in creation of H.R. 5161, the Green Transportation Infrastructure Research and Technology Transfer Act. In June of 2008, the Subcommittee held a hearing to review sustainable, energy-efficient transportation infrastructure.

• Mr. Steven Winkelman
• Mr. Mike Acott
• Mr. David Matsuda
• Ms. Catherine Ciarlo
• Dr. Laurence R. Rilett

The testimony of U.S. Department of Transportation Acting Assistant Secretary for Transportation, Mr. David Wu, is in PDF viewer below and also available for download at the subcommittee website alongside the Chairman’s (David Wu) remarks and other witness testimonies.

(Source: U.S. Department of Energy; Photo Courtesy: MANDEL NGAN/AFP/Getty via Autoblog)

DOE Support for Advanced Battery Manufacturing and Electric Vehicle Deployment to Create Tens of Thousands of U.S. Jobs

On March 19th, President Barack Obama announced the availability of $2.4 billion in funding to put American ingenuity and America’s manufacturers to work producing next generation Plug-in Hybrid Electric Vehicles and the advanced battery components that will make these vehicles run. The initiative will create tens of thousands of U.S. jobs and help us end our addiction to foreign oil. Americans who decide to purchase these Plug-in Hybrid vehicles can claim a tax credit of up to $7,500.

“This investment will not only reduce our dependence on foreign oil, it will put Americans back to work,” President Obama said. “It positions American manufacturers on the cutting edge of innovation and solving our energy challenges.”

While visiting Southern California Edison’s Electric Vehicle Center, the President announced the following:

• The Department of Energy is offering up to $1.5 billion in grants to U.S. based manufacturers to produce these highly efficient batteries and their components.
• The Department of Energy is offering up to $500 million in grants to U.S. based manufacturers to produce other components needed for electric vehicles, such as electric motors and other components.
• The Department of Energy is offering up to $400 million to demonstrate and evaluate Plug-In Hybrids and other electric infrastructure concepts — like truck stop charging station, electric rail, and training for technicians to build and repair electric vehicles.

Click here to read the entire DOE press release. Or, Click here to read the President’s remarks.  Shown below is Part I of the video from the event, courstey of  You Tube (Part I & Part II).

(Source: Washington Post)

In the viability plans General Motors and Chrysler submitted to support their federal aid requests, the companies pledged to try to meet new fuel economy standards. 

Click here to read the entire article.