(Source: Bloomberg)

Cars and light trucks will be required to meet a U.S.fuel-economy average of 27.3 miles per gallon for 2011 models, a 2 mpg increase from the previous year’s level, the Transportation Department said.

The 8 percent gain announced today in Washington carries out a 2007 law intended to curb emissions and fuel use. The change, being put in place asGeneral Motors Corp. and Chrysler LLC face possible bankruptcy, isn’t as aggressive as the 27.8 mpg target that President George W. Bush proposed in April 2008.

“This isn’t going to be a stretch for them to meet this,” David Kelly, former acting head of the National Highway Traffic Safety Administration under Bush, said of automakers. New-car fuel economy already averaged 31.3 mpg by 2007, NHTSA said in today’s rule.

Cars must average 30.2 mpg, up from 27.5 currently, under the rule. Light trucks will average 24.1, up from 23.5 mpg for 2010 models. The December 2007 law called for vehicles to meet a 35 mpg standard by 2020 models, a 40 percent increase from the average in 2008.

“The bad news is that the 27.3 mpg standard means that they’ll have to make up for it in future years,” said Dan Becker, director of the Safe Climate Campaign, a group in Washington that works for environmentally “clean” cars. “The goods news is that they have promised that they will.”

President Barack Obama’s administration had a March 31 deadline for setting the standard, giving the industry about 18 months to prepare its 2011 models to meet the requirement. Bush never issued his proposed standard before he left office.

Click here to read the entire article.

(Source: Boston Globe)

Mass. officials say public works that would have the biggest impact – and create the most jobs – may be left out

TransportGooru is proud to team up with David Rizzo, better known as Dr. Roadmap,  a Commute Management expert who writes about issues such as improving gas mileage (mpg), alternate routes, traffic congestion, ridesharing, commuting behavior and intelligent transportation systems on California’s Orange Country Register.  He is well known for his comprehensive guide ever written on off-freeway commuting in Southern California, published in 1990.  Two years later he became the first traffic reporter to offer daily alternate routes in real time over the air on one of the most popular morning radio shows in Los Angeles.  Starting today, he will be contributing bi-weekly columns exclusively for TransportGooru.   Here is his first column on tax breaks, just in time for the tax season as we sharpen our pencils and start crunching the numbers before the arrival of April 15:

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Perhaps October 31, Halloween, is the scariest day of the year, or even Friday the Thirteenth and its specter of 24 hours of bad luck? Maybe. But the one day most working Americans dread most is April 15, the deadline for filling our income tax returns. However, a silver lining surrounds this annual dark cloud for those who share the ride on their way to their job.

On February 17, President Obama single-handedly doubled the tax-free benefit for ridesharers with the signing of the American Recovery & Reinvestment Act of 2009. Now people who take a train, bus or a vanpool to work can receive up to $230 per month from their employer, TAX FREE. That works out to $2760 annually. Anyone treated to a W-2 form at the end of the year qualifies.

Photo Courtesy: Paul Keleher@Flickr

Previously, this amount was limited to just $120 per month, or $1440 per year, as outlined in the Internal Revenue Code, Section 9010.

This fringe benefit encourages commuters to abandon their cars in favor of transit and vanpools, which feature a lower carbon footprint per passenger mile.

Referred to as the Commuter Choice program, it even benefits employers who provide these transportation fringe benefit funds in addition to, or in lieu of, existing compensation paid to their workers. What this means for those of us who haven’t earned a CPA credential lately, is employers realize a savings of at least 7.65% on the amount set aside, since payroll taxes do not apply.

Of course, you know there has to be a “gotcha” or two, but they’re not too bad.

The main catch is that your employer must pay for your commuting expenses by way of a bus pass, rail pass or Transit Check — which is a universal voucher produced by Commuter Check Services Corporation that acts like a gift certificate to purchase transit passes. Most transit agencies honor these.

An employer can also pay money to a vanpool provider, be it a company-sponsored vanpool or otherwise, just as long as the van seats seven adults (including the driver), and at least 80 percent of the mileage is for transporting employees from home to work and back again.

However, an employee cannot receive any cash directly. Otherwise, the IRS will seek a piece of the action.

Additionally, these benefits do not accrue to commuters who carpool. A possible reason behind this exclusion includes the fact that a van, bus, or train can remove far more vehicles off the road than a normal passenger car. Additionally, keeping track of what qualifies as a bona fide carpooling arrangement for commuting purposes only, could prove contentious and time consuming for any employer.

For the first time, though, anyone who pedals to work gets a break. Called the Qualified Bicycle Commuting Reimbursement, a biker can receive up to $20 per month from his or her employer, tax free, for reasonable expenses which include the purchase of a bike, bike improvements, repairs or storage.

President Obama also raised the tax-free parking allowance to $230 per month. And, yes, an employee can take advantage of BOTH benefits. Such would be the case for an employee who drives to a transit station that lacks free parking, then hops on a train for the rest of the trip to work. The potential tax-free income here adds up to a significant $5,520 per year.

While each state clings to its own interpretation of how employers can reimburse their employees for ridesharing, at least the feds have taken some of the sting out of tax time.

We need no longer lie panic stricken when April 15 rolls around.

©2009, Dr. Roadmap®

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Note: This is copyright-protected content.  Please contact Transportgooru if you like to use this article or portions of this article.  Thank you.

(Source: National Journal; Photo: Cliff @ Flickr)

Is High-Speed Rail Worth It?

Lisa Caruso @ the National Journal has kicked off an interesting dialogue on America’s proposed investment in Highspeed rail.  She asks:  “What do you think of President Obama’s decision to make high-speed passenger rail service a centerpiece of his transportation agenda? Is it a wise use of taxpayer dollars to spend $33 billion in the next five years (according to the stimulus and his FY10 budget outline) to make a down payment on constructing a rail network that could take decades to create? Or are there better ways to spend this money on transportation?

 So far the following folks, including Virginia Governor Tim Kaine, Secretary of Transportation Ray Lahood, have recorded their opinions on this interesting dialogue.  7 responses: Steve Heminger, Phineas Baxandall, Greg Cohen, Gov. Tim Kaine, Peter Gertler, Ray LaHood, Bob Poole  

So, continue to watch the thread as more folks step up to share their take  on why HSR is very important for this nation.

Click here to read and follow the entire discussion.

(Source: NPR;  Photo Courtesy: Hans Splinter@ Flickr)

NPR.org, March 19, 2009 –  When I went to Europe, I loved to ride the trains, especially the French TGV and other high-speed trains. So President Obama’s goal of building high-speed rail in the United States sounded good at first.

Randal O'Toole is a Cato Institute Senior Fellow working on urban growth, public land and transportation issues. Courtesy of the Cato Institute

But when I looked at the details, I discovered that — while high-speed rail may be good for tourists — it isn’t working very well in Europe or Japan.

Japan and France have each spent as much per capita on high-speed rail as we spent on our Interstate Highway System. The average American travels 4,000 miles and ships 2,000 ton-miles per year on the interstates. Yet the average resident of Japan travels only 400 miles per year on bullet trains, while the average resident of France goes less than 300 miles per year on the TGV — and these rail lines carry virtually no freight.

Click here to read the entire “Opinion” of Mr. O’ Toole.  

Throughout the world and throughout history, passenger trains have been used mainly by a wealthy elite and have never given the average people of any nation as much mobility as our interstate highways.

(Source: Fast Lane, The offical blog of the U.S. Sec. of Transportation)

March 19, 2009

(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: USA Today; Photo: Dmitry Lovetsky, AP)

 

“For so long, Americans have viewed the automobile and the airplane as our transportation vehicles,” says Anne Canby, a former transportation secretary for Delaware and train advocate. “Until now, rail hasn’t been a major player in the discussion.”

Driving the new-found interest in trains is $8 billion that was tucked into the president’s economic stimulus legislation signed last month.

“People in this country don’t appreciate what modern rail travel is,” says Doyle, referring to the 180 mph Talgo system. “It is as smooth as riding in an airplane without any turbulence.”

Click here to read the entire article.

(Source:  Autobloggreen)

This week, Congress and President Obama have approved a bill that includes a June 30th deadline for the EPA to decide whether or not to allow California the right to enact its own greenhouse gas rules. Earlier this year, President Obama directed the EPA to reconsider California’s request for a waiver that would allow it to regulate gases like carbon dioxide, which is widely seen as a way for the state to set its own fuel efficiency requirements

Click here to read the entire article.

(Source: Detroit News via Autobloggreen)

 After driving the Chevy Volt prototype and sitting down for a number of discussions, the members of the president’s task force on the auto industry have returned to Washington. While the team was in Michiganover the past few days, they had a chance to see GM’s latest technology, look at what Chrysler has brewing, and spent time reviewing the viability plans of the automakers.

“We have been and will continue to work as hard and tirelessly as we can,” the official said. “This is obviously a very substantial undertaking and we want to move with all deliberate haste.”

The group spent most of the day in Detroit, visiting UAW President Ron Gettelfinger and other union officials in the morning before heading to Warren for meetings with GM and Chrysler.

Advisers to the task force visited Chrysler’s Warren truck assembly plant, meeting Chairman and CEO Robert Nardelli and other top executives, the company said in a written statement.

“In addition to meeting, the group toured the assembly plant and reviewed Chrysler current and future products, including electric and hybrid vehicles,” the company said. The meeting also included Chrysler Vice Chairmen Tom LaSorda and Jim Press and Chief Financial Officer Ron Kolka.