(Source: The Brookings Institution)

The Obama administration’s move to increase vehicle fuel economy standards and reduce greenhouse gas emissions addresses the source of one-third of U.S. CO2 emissions—transportation. In this report, the authors analyze the current state of carbon emissions by metropolitan area, listing the places that emit the least per capita and proposing policy avenues to move the entire nation toward reduced climate impact.   

America’s Challenge

The nation’s carbon footprint has a distinct geography not well understood or often discussed. This report quantifies transportation and residential carbon emissions for the 100 largest U.S. metropolitan areas, finding that metro area residents have smaller carbon footprints than the average American, although metro footprints vary widely. Residential density and the availability of public transit are important to understanding carbon footprints, as are the carbon intensity of electricity generation, electricity prices, and weather. 

Limitations of Existing Federal Policy
Numerous market and policy distortions inhibit metropolitan actors from more aggressively addressing the nation’s climate challenge. Economy-wide problems include underpriced energy, underfunded energy research, missing federal standards, distorted utility regulations, and inadequate information. Policy impediments include a bias against public transit, inadequate federal leadership on freight and land-use planning, failure to encourage energy- and location-efficient housing decisions, and the fragmentation of federal transportation, housing, energy, and environmental policies. 

A New Federal Approach
Federal policy could play a powerful role in helping metropolitan areas—and so the nation—shrink their carbon footprint further. In addition to economy-wide policies to motivate action, five targeted policies are particularly important within metro areas and for the nation as a whole:

• Promote more transportation choices to expand transit and compact development options
• Introduce more energy-efficient freight operations with regional freight planning
• Require home energy cost disclosure when selling and “on-bill” financing to stimulate and scale up energy-efficient retrofitting of residential housing
• Use federal housing policy to create incentives for energy- and location-efficient decisions
• Issue a metropolitan challenge to develop innovative solutions that integrate multiple policy areas

Click here to Read/Download Full Report

(Source:  The Infrastructurist & Asia Times)

The Chinese are at it again.  The Asian juggernaut is rolling ahead with its investment in beefing its modern infrastructure – this time with a massive investment in railways.   With the dedication and determination that has become a hallmark of all things Chinese, be it sports or the development, the country has proved time and again that it is among the best in the world.  Dithering and doing things half-way are not among the national character flaws that might be pinned on the Chinese.  And, perhaps, they’re already at it with this plan to build the world’s largest high-speed rail network. 

China’s rail links totaled 76,600km by end of 2006. But most of them were built at least 30 years ago and some even date back to the early 20th century.   The economic boom of the past two decades has generated soaring demand for rail transportation. In 2006, China’s rail network handled 25% of the world’s cargo and passenger travel, although the country’s railway network only accounts for 6% of the world’s total by mileage. 

In 2006, China’s railway network carried 662.2 billion passenger-kilometers – 2.7 times that of Japan – while it carried 2.87 billion tons of freight, a billion tons more than in the US, and 4.8 times that in India.  To cope with the skyrocketing demand for rail transport, the Chinese government has kept expanding its plans for rail construction. As of March 31, China has committed $259 billion to building its high-speed rail network project, and plans to spend nearly a half trillion dollars more in the next three years, boosting the total investment to $730 billion by 2012.

Of the Chinese investment, at least $1 billion is going to the German conglomerate Seimens for the purchase 100 high speed train sets. They will be, on average, 16 cars–or 1300 feet–in length, capable of carrying 1000 passengers, and capable of traveling 218 mph. Moreover, they will be running on tracks designed to accommodate that speed. Unlike, say, the Acela.  Ultimately, the Chinese government plans to buy 1000 high speed trains to run on a track network of around 25,000 miles. 

A little context here: The US–a country with a per capita GDP about 16 times that of China–has set rail as a national priority and has committed… $13 billion. Or, about 2 percent as much in China. This, of course, is in a place where it costs a hell of a lot more to get anything done.   In the U.S., President Obama’s decision to make high-speed passenger rail service a centerpiece of his transportation agenda is funded in part through the recently passed $787 billion stimulus plan including a total of $8 billion for improvements in the U.S. rail system. The Obama plan also proposes a separate five-year, $5 billion investment in high-speed rail as part of the administration’s suggested fiscal year 2010 budget (FY10 budget outline) to make a down payment on constructing enhanced rail network.

(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.

(Source: Reuters) 

Image: Seth Anderson via Apture

The Obama administration is expected to unveil its plans on Thursday for accelerating development of high-speed rail, a concept that in the past has had mixed political support and little public funding.

“It will be broad and strategic,” Karen Rae, acting head of the Federal Railroad Administration, told Reuters in an interview on Tuesday about the initiative described by officials as President Barack Obama‘s top transportation priority.

“It’s going to talk about how we begin to create this new vision for high-speed and intercity rail,” Rae said.

White House and transportation officials have spent the past several weeks weighing plans for developing at least six high-speed corridors.

High-speed rail initiatives are in various planning stages in California, Florida, Nevada, the Carolinas and the Northeast. States are already formulating how to use the large appropriation for high-speed rail projects in the economic stimulus act.

“Some of these plans are 20 years old,” said Transportation Secretary Ray LaHood in an interview this week with Reuters Financial Television.

In February, Congress included $8 billion for rail development in the American Recovery and Reinvestment Act and Obama has included another $5 billion for the efforts in the White House’s proposed budget.

LaHood said the $8 billion in stimulus money will “jump-start” the process, but rail advocates and transportation officials agree that financing high-speed rail nationally will cost significantly more.

(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: Jalopnik,  Freep & World Car Fans)

Looks like American automakers have found at least one more buyer for their vehicles. The U.S. government is planning on the purchase of $285 million worth of fleet vehicles that get better gas mileage than the current fleet. Under the plan, the General Services Administration will purchase more than 17,500 vehicles as a part of their existing deals with Chrysler, Ford, and General Motors.

U.S. President Barack Obama, and his administration, have said the purchases will take place by 1 June. Although it is unclear what will happen to the older fleet vehicles being replaced, many will likely be sold at government auctions.

The purchase is hardly a surprise. In the much talked about stimulus package approved by Congress, $300 million was included for the automotive purchase. This is not a gigantic purchase in the grand scheme of things, as the Big Three sold a combined total of 380,000 vehicles for March 2009. Still, the move may help to bolster confidence in the sector, while even a marginal increase in revenue would be welcomed by the automakers.

More than 14% of the vehicles will be hybrid sedans. 2,500 orders for the vehicles, which will likely include the Chevy Malibu, Ford Hybrid Fusion, and Saturn Aura, will be placed by the end of next week.

Image: Jalopnik

If nothing else, the move underscores the administration’s willingness to put its money where its mouth is: Last week, Obama sent GM and Chrysler back to the drawing board, saying they needed more aggressive restructuring plans if they were to get more government loans to survive. 

But he also promised this big government buy of fuel-efficient vehicles and created a special office to help communities in Michigan and elsewhere struggling with the downturn in the industry. In a prepared statement released today along with details of the planned purchases, Obama said, “The problems that caused this economic crisis weren’t created in a day and it will take time and hard work to get our economy back on track. But I am 100% committed to a strong American auto industry, and we will stand with America’s auto workers and their families during these difficult times.”

(Source: Autoblog)

When the next step in the road to 35 mpg by 2020 CAFE standards was announced recently, those in the know made it clear that the Obama administration’s upcoming goal of 27.3 mpg by 2011 would not be hard for automakers to meet. In fact, the 2007 average was already 31.3, so the 2011 goal would not require any change in product lineup (more difficult changes are scheduled to come into effect down the line). The 2011 standards were so light, in fact, that the Center for Biological Diversity (CBD) took the National Highway Traffic Safety Administration and Department of Transportation to court last week, saying that the Obama administration’s standards “ignore greenhouse gas emissions and the climate crisis, are illogical, illegal, and very disappointing from a president who has promised to make the United States a leader in the fight against global warming.”

“These low standards, which ignore greenhouse gas emissions and the climate crisis, are illogical, illegal, and very disappointing from a president who has promised to make the United States a leader in the fight against global warming,” said Kassie Siegel, who directs the organization’s climate law project.

The group asked the Ninth U.S. Circuit Court of Appeals in San Francisco to declare that the administration violated a federal law requiring that fuel economy standards be set at the maximum feasible level, in light of current technology, economic impact, and the nation’s need to conserve energy. The same court ruled in a similar lawsuit in 2007 that the Bush administration’s fuel standards for light trucks and SUVs for the 2008 through 2011 model years were invalid.

(Source:  New York Times; Photo: Jay Mailin/Bloombern News)

Obama’s Top Auto Industry Troubleshooter

After 26 years as one of the most politically connected investment bankers on Wall Street, Steven Rattner finally took a job in Washington — only it is not quite the one friends and business associates thought it would be.

 (Source: New York Times – Wheels)

Mr. & Mrs. Wagoner- R.I.P (Relaxing in Propsperity)

(Source: ABC News)

(Relaxing in Prosperity)R.I.P Rick Wagoner – Gets $20Mil for losing tens of billions of dollars and tanking stock price from $60 (June 2000) to $1.27 (March 2009)

Rick Wagoner will leave his post as CEO of bailed-out General Motors with a $20 million retirement package, the company’s financial filings show.

Although the Treasury Department has barred GM from paying severance toWagoner or any other senior executive, Wagoner is eligible to collect millions in retirement benefits from his former employer, according to the documents reviewed by ABC News.

The Obama administration asked for Wagoner to resign Sunday, as part of its restructuring of the auto industry. President Obama said this morning that forcing Wagoner out indicated it was a time for new leadership. 

Under Wagoner’s leadership, GM lost tens of billions of dollars, took billions in taxpayer-financed aid, and announced plans to cut 47,000 employees by the end of 2009.

Click here to read the entire article.  For those interested in reading Wagoner’s farewell e-mail, please visit The Truth About Cars.  

For those who care to know, here is what GM’s Executive Officer Severance Policy  looks like (Thanks, an0nymous poster @EVcast): 

General Motors executive officers are generally at-will employees who serve at the discretion of the Board. In early 2005, GM adopted a policy applicable to executive officers requiring stockholder approval of any severance benefits if: 
• The executive’s employment was terminated prior to retirement; and 
• The present value of the proposed severance benefits would exceed 2.99 times the sum of the executive’s annual base salary and target annual incentive. 

Note: TransportGooru wonders if this culture of execessively compensating under-performing, over-paid must-be-retired executives will ever come to an end?   If Mr. Wagoner has any iota of ethics that his alma mater (Harvard Business School) tries to inculcate in its wards, he must politely decline and walk away without taking a penny from this $20mil payout.