Taxing Issues: How Will the Feds Handle Electric Vehicles?

March 10, 2009 at 12:29 pm

(Source:  Bnet.com Auto)

When people use the word “tax” and the phrase “electric car” in the same sentence, they’re usually talking about the lucrative tax credits you can grab onto by buying one.

But there’s another way to look at the tax issue. Suppose, as many analysts are now concluding, the bulk of the car fleet shifts from gasoline to electric. Will we tax EV recharges the way we now tax gas (at 18.4 cents a gallon)? Dr. Lyle Dennis, whose website GM-Volt.com champions Chevrolet’s plug-in hybrid, asks, “Will they raise taxes on electric rates and make EV recharging more expensive? It’s an important question.”

It seems to make more sense to simply switch to a “vehicles miles traveled” tax that’s agnostic on how cars get around. Mileage could be tracked with GPS devices installed in cars. But that’s off the table for now. Transportation Secretary Ray LaHood said his department was studying the idea, but an Obama spokesman quickly denied it is now or ever will be U.S. policy.

Click here to read th eentire article.

Should the U.S. institute a vehicle scrapping plan?

March 9, 2009 at 3:19 pm

End of the British Motor Industry

 (Source:  Autobloggreen)

Last month, Germany reported a shocking 21 percent improvement in auto sales, and the greatest driver in the uptick was a used vehicle scrapping plan that pays drivers 2,500 euros ($3,150) to remove their old car from the road. With new car sales in most other countries down by at least that much, it was widely speculated that other governments would look closely at Germany’s new system to see if it would be worth adopting in their areas.

An opinion piece at Automotive News (sub. req’d) suggests that it’s time for the United States to implement its own vehicle scrapping program. President Obama’s recently-passed economic stimulus plan does contain provisions that are intended to help spur new vehicle sales, but has nothing as dramatic as what’s been enacted in Germany. 

Click here to read the entire article.

California And Detroit Go To War Over Gas Mileage

March 8, 2009 at 6:58 pm

 (Source:  Time

For more than three decades Detroit’s Big Three and their allies have successfully blocked or limited changes to the nation’s fuel economy rules. However, with General Motors and Chrysler LLC facing bankruptcy, the carmakers are making what could be one last stand, and this one they may well lose.

Currently fuel economy standards are set by the Environmental Protection Agency. But President Obama, moving to fulfill one of his campaign promises to the state of California, has asked the EPA to consider revising Bush-era rulings so California can impose its own limits on greenhouse gas emissions from motor vehicles. On Thursday, the EPA held public hearings on a possible revision, and it will accept written comments until April 6th with a decision, hopefully, soon to follow. But the EPA has already indicated its discomfort with the original decision made several years ago to deny California the right. Environmentalists, take heart. (See TIME’s portraits of American autoworkers)

Automakers argue that the state’s greenhouse-gas emission standards amount to new fuel-economy rules because about the only way to meet the California standard is to limit the use of fuel burned in the engine: Cars and trucks would have to get 43 miles per gallon on average by 2016, which is far higher than the 35 miles per gallon by 2020 target currently approved by Congress in the Energy Act of 2007. Such a leap would require sweeping changes in the vehicles American drive.

Click here to read the entire article. 

High-Speed Rail Drives Obama’s Transportation Agenda

March 8, 2009 at 1:20 pm


(Source: Washington Post)

The Northern Lights Express is little more than an idea — a proposal for a 110-mph passenger train between Minneapolis and Duluth, Minn., that has crept along in fits and starts for years.

But the slow ride may soon be over. The project is one of dozens nationwide that are likely to benefit from President Obama’s initiative to fund high-speed and intercity passenger rail programs, including $8 billion in stimulus money and $5 billion more over the next five years in the administration’s proposed transportation budget.

The money represents the first major step toward establishing a genuine high-speed train network in the United States and has sparked a stampede among states, advocacy groups and lobbyists who are not accustomed to this level of funding.  

“We’re going to turn over every stone we can,” said Steve Raukar, a commissioner in St. Louis County, Minn., who chairs the Northern Lights Passenger Rail Alliance, which is spearheading the drive for the $500 million project. “We’re trying to get everything moving as fast as possible with the understanding that this is a once-in-a-lifetime opportunity for funding.”

 High-speed rail has emerged as the cornerstone of Obama’s ambitious attempt to remake the nation’s transportation agenda, which for half a century has focused primarily on building highways and roads. Nearly half of the $48 billion in stimulus money for transportation projects will go toward rail, buses and other non-highway projects, including $1.3 billion for Amtrak and its successful rapid rail service, Acela. The Transportation Department also would receive $2 billion more under Obama’s proposed 2010 budget, most of it for rail and aviation improvements.Click here to read the entire article. 

Financial Times reviews President Obama’s Infrastructure Spending – Highway to hell revisited

March 5, 2009 at 7:57 pm

(Source: Financial Times)

History reminds us,” President Barack Obama told both houses of the US Congress on Tuesday night, “that at every moment of economic upheaval and transformation, this nation has responded with bold action and big ideas.” By “the nation”, Mr Obama means “the government”. We can tell by the episodes he uses to make his point: the establishment of universal public education, the GI Bill of Rights and – alluded to but not named – the Highway Act of 1956, at the time of its passage the largest public works project in US history.

Mr Obama’s praise for the Highway Act is disturbing. In arguments over his stimulus package and his preliminary budget released on Thursday, Republicans have made the lazy assumption that government intervention in the economy can never succeed. Mr Obama shows signs of the opposite error – believing it can never fail.

The Highway Act probably has more defenders than detractors. But Mr Obama should be among the latter. The act, which budgeted $25bn in federal money to build 41,000 miles of motorway, exacerbated the very problems Mr Obama has been most eager to solve – spoliation of the environment, dependence on foreign oil, overburdening of state and local budgets, abandonment of the inner-city poor and reckless speculation in real-estate development, to name a few.

A lot of people complain today about the rump of Republican disbelievers in Keynes, feckless though they may be, who fiddle while Rome burns. There was no hint of such heresy in 1956. The Senate passed the bill 89-1. Otherwise, the political climate bore some resemblance to our own: conformism bred of confusiofinancial meltdown whodunnit in FTn. A 40,000 mile highway network had been on the wish list of the armed forces since 1944. Eisenhower was a big backer, and had hopes of justifying it as a stimulus during the recession of 1954. That downturn was long past when the bill came to a vote, but the vested interests remained, and so did the fear that one’s constituents might think it a bit communist to vote against a highway bill.

Click here to read the entire article.  (Free registration required at FT.com)

The Trains in Spain Go Faster Than the Planes

March 5, 2009 at 6:55 pm

TransportGooru recommends all readers to listen to this interesting coverage on NPR.

(Source:  NPR)

 President Obama’s economic stimulus package includes $8 billion for speeding up train travel. America is far behind other industrial countries in high speed rail. A few years ago, Spain was also behind the curve. But the Spanish network is expanding fast, and the trains are beating planes.

File:Renfe clase 100.JPG

Ready, Set, Go! Paving the Way for Plug-In Vehicles

March 5, 2009 at 1:03 pm

(Source:  Rocky Mountain Institute Via Tree Hugger)

plug in vehicle photo

Image credit:RMI

President Obama has set the goal of adding one million plug-in vehicles to the country’s fleet by 2015. And while the recently passed stimulus bill, the American Recovery and Reinvestment Act, contained some very generous incentives for plug-in vehicles, much work remains to be done.

One million is one half of a percent of the fleet—a good start, but a small start. How do we make sure the first million are a screaming success, and that we accelerate to 10 million, and 100 million soon?

Rocky Mountain Institute believes the solution lies with preparing our cities and communities, and we recently launched Project Get Ready to speed up the transition.

Getting ready for plug-ins isn’t going to be a massive overhaul, but it does require some planning, and targeted shifts in several important sectors. Examples include changing electrical code to allow for charging spots, creating special electricity pricing for plug-ins, and teaching citizens what to expect from a plugged-in lifestyle.

Click here to read the entire article.

Obama administration works on U.S. fuel rule

March 5, 2009 at 12:57 pm

State standards could be supplanted

(Source: Freep.com, Detriot Free Press)

WASHINGTON — Even as his administration moves toward allowing California and other states to set limits on vehicle fuel economy, President Barack Obama has begun crafting a new national standard that will likely supplant the states’ efforts.Hello again, cheap gas

The moves would allow the president to fulfill a campaign promise to let the California limits take effect while addressing the chorus of concerns from a financially beleaguered U.S. auto industry about meeting a so-called patchwork of state-level greenhouse gas controls, in addition to federal fuel economy rules.

The rules are different but the effect is similar — greater fuel efficiency from vehicles leads to reduced emissions.

The administration has raised the idea for a national limit as part of its talks with Detroit automakers and suppliers for additional aid, an administration official said Wednesday.

“The president believes that one national policy for autos would provide the industry with certainty while achieving our environmental and energy independence goals,” the official said, speaking on condition of anonymity.

The California rules would have little immediate effect on automakers if adopted, but the standards would toughen annually through 2020.It´s the economy, stupid!

Click here to read the entire article.

Stimulus Flows Into Patchwork of State Transport Projects

March 3, 2009 at 8:31 pm

(Source:  New York Times)

Kansas will widen U.S. Route 69 to remove a bottleneck outside Kansas City, along with three other expensive projects. Maryland will spend its money in smaller pieces, resurfacing dozens of rutted roads and highways. Colorado will build an interchange on Elk Creek Road in Jefferson County, complete with an underpass for the elk.

There is nothing monumental inPresident Obama’s plan to revive the economy with a coast-to-coast building spree, no historic New Deal public works. The goal of the stimulus plan was to put people to work quickly, and so states across the country have begun to spend nearly $50 billion on thousands of smaller transportation projects that could employ up to 400,000 people, by the administration’s estimates.

Stimulus for Transportation Projects

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Shovels Are In Motion, Says Obama

March 3, 2009 at 7:44 pm

(Source:  Whitehouse.gov via Planetizen)

The President and V.P. addressed the Department of Transportation today, stating that the new investment in infrastructure “will create or save 150,000 jobs by the end of next year, most of them in the private sector.”

Excerpts from the Vice-President Biden’s address:

Just two weeks after signing that legislation, we’re about to start the biggest investment on our nation’s road, bridges, highways and tunnels since we built the Interstate Highway System over 50 years ago.  It’s a big deal.  The work is beginning now, with hundreds more projects getting underway in the next few months.  Some project will start this month, some won’t get going until the summer.  We’re going to do everything we can to get them moving as quickly as possible.  But Americans didn’t get in this mess overnight.  And unfortunately, unfortunately, it’s going to take some time for us to get out of this.

     Mr. President, you also made it clear that we have an obligation to the taxpayers of this nation to make sure their money is being used wisely, to make it accountable and transparent.  Folks, we’re going to ask of you a sense of diligence and transparency and responsibility as has not been asked before, because we’ve never made this kind of investment before.  This is a big deal.  Never before in the history of this country have the people been more able to see with such complete transparency how we’re going to put their money to work, not just in this agency but particularly here. 

Excerpts from President Obama’s address:

20081207_VA_Presser-1079

     Of the 3.5 million jobs that will be created and saved over the next two years as a result of this recovery plan, 400,000 will be jobs rebuilding our crumbling roads, bridges, and schools, repairing our faulty levees and dams, connecting nearly every American to broadband, and upgrading the buses and trains that commuters take every day.  Many of these projects will be coordinated by Secretary LaHood and all of you at the Department of Transportation.  And I want you to know that the American public is grateful to public servants like you — men and women whose work isn’t always recognized, but whose jobs are critical to our nation’s safety, security, and prosperity.  You have never been more important than you are right now, and for that we are all grateful.  (Applause.) 

     Now, in the coming days and weeks, my administration will be announcing more details about the kinds of transportation projects that will be launched as part of the recovery plan.  But today, I want to speak about an investment we are making in one part of our infrastructure.  Through the Recovery Act, we will be investing $28 billion in our highways, money that every one of our 50 states can start using immediately to put people back to work.  It’s an investment being made at an unprecedented pace, thanks in large part to Joe Biden, who’s leading the effort to get the money out the door quickly.  Because of Joe, and because of all the governors and mayors, county and city officials who are helping implement this plan, I can say that 14 days after I signed our Recovery Act into law, we are seeing shovels hit the ground.

 

Click here to read the entire addresses of both the President and Vice President.