Environmental and Energy Study Institute

February 2007

• Administration Requests $9.4 Billion for Transit, $309 Million Less Than
  SAFETEA-LU
• Congress Finally Completes Work on FY 2007 Spending Bills
• IndyCar Goes Green with Switch to Ethanol
• CARB Makes $25 Million Available for Clean Vehicles and Fuels
• NYSERDA Awards Contracts for Plug-Ins
• EU Announces Biofuels Target as Part of Climate Package
• London’s Congestion Plan Boosts Hybrid Sales
• Canadian Town Seeks to Add Hybrid Buses
• Plans Afoot for Plug-In Hybrid Truck
• Volvo Joining Plug-In Race?
• Saab To Introduce Ethanol-Optimized Car at Geneva Auto Show
• Hybrid School Buses Arrive in Florida
• EPA Awards $145,000 for Retrofit Projects
• Air Pollution Heightens Risk of Heart Attack in Women
• Events
• Submit Your Clean Fleet Story

Print Version

Administration Requests $9.4 Billion for Transit, $309 Million Less Than
SAFETEA-LU

On February 5, 2007, U.S, Transportation Secretary Mary Peters unveiled a $67 billion fiscal year (FY) 2008 Budget to fund the nation’s roadways, rail and air transportation. The proposal includes $9.4 billion for transit, $40.3 billion for highways, resources for cleaner buses, reducedsupport for Amtrak passenger rail and a $175 million initiative to reduce traffic congestion.

The Administration has requested $9.42 billion for transit programs for FY 2008, an increase from FY 2007. But this is $309 million less than the $9.73 billion authorized in the transportation law “Safe, Accountable, Flexible, Efficient Transportation Equity Act - A Legacy For Users" (SAFETEA-LU, P.L 109-59).Specific budget request for transit-related programs include:

• Formula and Bus Grant Programs - The budget request for Formula and Bus Grant Programs, which fund transit in urban and rural areas, as well as transportation needs of the elderly and paratransit, is $7.872 billion, matching SAFETEA-LU authorized levels.
• Clean Fuels Grant Program – Once again, the administration has requested separate finding for the Clean Fuels Grants Program at $49 million, up from $45 million in the FY 2007 request. This request matches levels authorized in SAFETEA-LU ($238.1 million over five years). The Clean Fuels Grants Program will be a critical resource for promoting clean bus deployment through the funding of advanced technologies and fuels in buses.
• Congestion Mitigation and Air Quality Improvement Program (CMAQ) - $1.6 billion is requested for the CMAQ program, which supports transportation projects including transit that help meet air quality standards.
• Amtrak – Administration support for the nation’s passenger rail service Amtrak continues to be weak. DOT is proposing only $900 million in funding. The proposal includes $300 million for Amtrak’s operating budget, $500 million for Northeast Corridor infrastructure rehabilitation and a new $100 million grant matching program for states to prioritize capital investment for Amtrak projects. Amtrak was funded at $1.29 billion in FY 2006. A year-long joint resolution (H.J Res. 20) for FY 2007 funds Amtrak at $1.294 billion (FY 2006 levels).
• Congestion Relief - The DOT proposal includes $175 million for the new National Strategy to Reduce Congestion initiative, with $100 million to be available for partnerships with select states under the Value Pricing Pilot Program, $25 million for Corridors of the Future investments, $25 million for the Real-Time System Management Information Program and $25 million for expansion of congestion-related research under the Intelligent Transportation Systems Research and Development Program.
  
  This new initiative appears to duplicate the efforts of the Congestion Mitigation and Air Quality Improvement Program (CMAQ), which was specifically authorized in TEA-21 and SAFETEA-LU to reduce congestion on highways through innovative measures. Further, this new proposal by the administration does not include any efforts to increase transit-related investments which can help reduce congestion as well as provide numerous other benefits.

For highlights of the FY 2008 Budget request, please visit:
http://www.dot.gov/bib2008/2008budgetrequest.htm

For a detailed DOT budget, please see:
http://www.whitehouse.gov/omb/budget/fy2008/.

Congress Finally Completes Work on FY 2007 Spending Bills

On February 14, 2007, the Senate passed a year-long continuing resolution (H.J Res 20) to complete work on the fiscal year (FY) 2007 spending bills. The continuing resolution was signed into law (P.L. 110-5) on February 15. Last year, Congress failed to complete work on FY 2007 Appropriation Bills resulting in transportation programs being funded at FY 2006 levels by a series of continuing resolutions. The latest year-long joint resolution authorizes funds for the rest of FY 2007, including $8.975 billion for transit – a record, funding it at SAFETEA-LU levels for FY 2007. The resolution appropriates $39.08 billion for highways as guaranteed by SAFETEA-LU.

The resolution includes a $3.47 billion rescission directive – the largest ever in recent years. States will be required to return previously allocated but unobligated highway dollars from the five core highway programs including Interstate Maintenance (IM), National Highway System (NHS), Bridge, Surface Transportation Program (STP) and Congestion Mitigation and Air Quality Improvement Program (CMAQ). DOT has yet to publish a notice on state funds to be rescinded.

States often have used CMAQ dollars disproportionately to comply with such rescission directives in the past. During prior rescissions in FY’05 and ’06, millions of dollars in CMAQ money was rescinded by states, particularly those with significant air quality problems. CMAQ money is used to fund cleaner transit projects like alternatively- fueled buses, advanced technologies like hybrid electric and fuel cell vehicles, and related infrastructure. Therefore, it is important for stakeholders to get engaged and press for a satisfactory resolution of these issues given the amounts of spending authority involved with this rescission. If state transportation officials return CMAQ funds, resources shrink for innovative clean transportation projects.

For text of the recently enacted continuing resolution, please see:
http://thomas.loc.gov/home/approp/app07.html

IndyCar Goes Green with Switch to Ethanol

The IndyCar Series has switched to 100 percent ethanol (E-100), the first motorsports event in the United States to do so. What began as an experiment with 10 percent ethanol in IndyCar cars, culminated with a complete shift to E-100 this February. Race car drivers got a chance to test the new fuel out in their cars at an “Open Test” at the Daytona Speedway, with very satisfactory results. E-100 powers a 3.5L Honda Indy V-8 engine, which is the official engine for the IndyCar Series. “I really didn’t notice any difference at all, which I think is the point,” 2005 IndyCar Series champion Dan Wheldon said. All 17 cars in the IndyCar Series will be powered by E-100 this year.

CARB Makes $25 Million Available for Clean Vehicles and Fuels

The California Air Resources Board (CARB) recently announced the availability of $25 million in grants for biofuels and low-emission, fuel efficient vehicles. The funds were authorized by legislation (AB 1811) to reduce pollution and greenhouse gas emissions. The funds are allocated as follows:

• Infrastructure for dispensing E-85 (85 percent ethanol, 15 percent gasoline) and other alternative fuels - $7 million
• Startup of small biofuels production facilities - $5 million
• Plug-in hybrid electric vehicle demonstration projects - $5 million
• Transit bus projects - $2 million for demonstrating zero-emission bus technology
• Incentives for PZEVS (partial zero emission vehicles) and ZEVs (zero emission vehicles) - $1.5 million
• Alternative fuel vehicle research - $3.5 million
• Funding for consumer education and outreach - $1 million

Proposals are due on March 12, 2007 and awards will be announced in April.

For more information and to apply, please visit:
http://www.arb.ca.gov/fuels/altfuels/incentives/incentives.htm

NYSERDA Awards Contracts for Plug-Ins

New York State continues to lead the nation in efforts to deploy plug-in hybrid electric vehicles (PHEV). The New York State Energy Research and Development Authority (NYSERDA) recently awarded four contracts for the conversion of hybrid vehicles into plug-in hybrids. The awards were made to Hymotion, Hybrid Plus, Electrovaya and EnergyCS to build plug-ins as part of Phase One of the state’s $10 million initiative to accelerate the development, testing and deployment of plug-in hybrid vehicles.

Builders of successful prototype vehicles may then apply for a second round of funding to convert the state's fleet of hybrids into plug-in hybrids. Peter R. Smith, president and CEO of NYSERDA said, “The second phase of the program will be to bulk-purchase the selected technologies for installation on the remaining hybrids in the State fleet. Phase One, with design and prototyping will cost up to a million dollars; Phase Two is budgeted for up to $9 million. It is anticipated that the technology will attract more manufacturers and drive the technology into the public market. Once the technology becomes popular, that’s when unit costs will decline considerably.” New York State owns approximately 600 hybrid cars and light trucks, and is looking to convert 574 of these vehicles to plug-ins. PHEVs can be charged in a standard electric socket, allowing an all electric range of 20 to 60 miles. The vehicles then switch to liquid fuel which can be gasoline or biofuels.

Hymotion, in partnership with A123Systems, was awarded multiple contracts to deliver three converted plug-in hybrids – a Honda Civic, a Toyota Prius and a Ford Escape - for testing. The U.S. Department of Energy’s Argonne National Laboratory, which has been designated as the lead national lab for the simulation, validation and laboratory evaluation of PHEVS, will test the converted vehicles.

EU Announces Biofuels Target as Part of Climate Package*

In its energy and climate change package, the European Commission proposed that the European Union commit now to cut greenhouse gas emissions by at least 20 percent by 2020, in particular through energy measures. To reach this goal, the Commission proposed a number of concrete actions based on a determinate reduction of energy consumption (20% energy savings by 2020, according to the objective of the Energy Efficiency Action Plan adopted in November) and the development of an energy mix based on low-carbon technologies.

The Commission proposed a binding target of 20% of its overall energy mix to be sourced from renewable energy by 2020. This will require a three-fold growth in all renewable energy sectors: electricity, biofuels, and heating and cooling. This renewables target will be supplemented by a minimum target for biofuels of 10 percent.

Speaking after the conclusion of the European Energy Council Meeting, Irish Minister for Communications, Marine & Natural Resources Noel Dempsey said, "I am very pleased that the [biofuels] target set today is binding. It is a welcome further step towards getting countries on the sustainable energy path. Ireland has already committed to reaching a 5.75 percent biofuel target by 2009 and meeting or exceeding the EU's 10 percent 2020 target by continuing to promote the development and use of biofuels."

London’s Congestion Plan Boosts Hybrid Sales

London’s efforts to reduce congestion in the city boosted hybrid sales in the city. The plan, which was introduced in 2003, imposes fees on cars and trucks driving into the city at peak hours and has been highly successful in reducing congestion, improving air quality and spurring transit use. Hybrid and electric cars are exempt from the fee prompting demand for these vehicles to skyrocket. Honda reports that it has tripled its supply of gasoline-electric Civic hybrids to 3,000 in 2007 to keep up with demand. Toyota has reported that sales increased 135 percent compared to 2006. Experts forecast that more than 6,500 hybrids will be added to London’s roads by 2008. From 2005 to 2006, the percentage of hybrid cars in London rose from 1 to 2 percent – an increase of almost 1,100 cars.

The London congestion plan has proven so successful that the city plans to triple the congestion charge on large trucks and cars to 25 British pounds ($47.83) to reduce congestion further. The current fee is 8 pounds a day. The plan will be introduced in 2009, with hybrids and electric cars being exempted from the fee.

Canadian Town Seeks to Add Hybrid Buses

St. Catharines Transit Commission in St. Catharines, Canada is exploring the possibility of adding five new diesel-electric hybrid buses to its fleet this year. The commission is proposing a 25 percent fare hike to pay for the buses which cost $628,000 each, a $200,000 premium over a standard diesel bus. In addition to the fare raise, the commission has recommended that city funds and gas tax reserves be used to fund the buses. The city’s transit system transports 27,000 riders a day.

Plans Afoot for Plug-In Hybrid Truck

The Electric Power Research Institute (EPRI) is partnering with Eaton Corporation, Ford and the South Coast Air Quality Management District (SCAQMD) to develop a plug-in hybrid utility trouble truck. SCAQMD is contributing $300,000 to the $1.6 million project. Other partners in the project include Southern California Edison (SCE), Los Angeles Department of Water and Power (LADWP), and Pacific Gas and Electric (PG&E) who have contributed $900,000 in total. The truck will be based on Ford’s F-550 truck; will have plug-in capability with a goal of 20 miles of all- electric range for the vehicle, as well as 5kW of export power for customers and accessory tools. In the second phase of the project, the scope will be expanded to 50 trucks and Ford’s E-450 based vans.

The F-550 truck will be equipped with a 6.0L V8 diesel engine or a 6.8L V10 gasoline engine and will use a parallel hybrid propulsion system. The battery pack will be recharged though regenerative braking which recaptures energy lost during braking.

SCE, PG&E and LADWP will each test the PHEV truck for durability and reliability as well as to determine final vehicle specifications for Phase 2. PG&E and SCE will demonstrate the diesel plug-in truck while PG&E and LADWP will test the gasoline truck.

For more information on this project, please see:
http://www.airquality.org/mobile/cff/CleanCities/20050922PGandE.pdf

Volvo Joining Plug-In Race?

Volvo Cars, a subsidiary of the Ford Motor Company, is developing a diesel plug-in hybrid based on its prototype C30 hatchback. The car is expected to have an all-electric range of up to 45 miles. The plug-in will have the capacity to be recharged overnight. The car is expected to be a series hybrid, with the diesel engine being used solely to charge the battery pack which will power four in-wheel motors to propel the vehicle. Volvo plans to have the vehicle ready in time for the Michelin Challenge Bibendum in Shanghai in November 2007.

Saab To Introduce Ethanol-Optimized Car at Geneva Auto Show

General Motors-owned Saab is all set to introduce its latest ethanol-optimized BioPower100 concept car at the Geneva Auto Show in March 2007. The car features a production-based engine optimized to run on 100 percent ethanol (E-100). The 2.0L engine will be turbocharged to improve fuel economy, addressing a common issue with ethanol-powered cars which have lower fuel economy as a result of the lower energy content of ethanol when compared to gasoline. In addition, compression ratios have been increased in this concept car to further boost fuel economy.

Domestic car manufacturers in the United States have pledged to increase production of flexible-fuel cars (cars that can be powered by 85 percent ethanol or gasoline). However, it is important to note that these flex-fuel cars are optimized to run on gasoline rather than ethanol. The fuel economy penalty of ethanol (25 -30 percent lower versus gasoline) can be lowered through the use of existing technology such has turbochargers or changing the compression ratios.

Domestic automakers have benefited from the production of flexible-fuel vehicles because of the Corporate Average Fuel Economy Standards (CAFE) credits available to them. CAFE provisions provide automakers a credit for the manufacture of flex-fuel vehicles to encourage their production. However, these vehicles reduce oil consumption only if they use alternative fuels. This loophole has allowed automakers to take credit for manufacturing flex-fuel vehicles despite the reality that these vehicles have been primarily fueled with gasoline rather than ethanol. The fact that today’s flex-fuel cars are optimized for gasoline use (no inclusion of ethanol efficiency boosting technology) further diminishes consumer motivation to use cleaner burning, renewable ethanol instead of gasoline. Flex-fuel vehicles should be optimized for use with the alternative fuel (rather than fossil-based gasoline) to make it more attractive for consumers to make the switch to ethanol.

Industry Abuzz with Electric Cars

A Santa Rosa-based company ZAP is looking to bring an electric sports car to the light-duty vehicle market by the end of 2008. The company, which manufactures electric scooters and small electric cars, announced that the sports car ZAP-X will be based on England-based Lotus Engineering’s APX concept car. ZAP estimates that their car will go 350 miles between charges, far greater than Tesla Motors’ Roadster which has a range of 250 miles. The ZAP-X is expected to be priced around $60,000, which is less than the Tesla Roadster which retails at approximately $92,000. ZAP-X will have an estimated recharge time of 10 minutes and can go from zero to 60 miles per hour in 4.8 seconds.

In related news, Tesla Motors has picked Albuquerque, New Mexico as the site for its new manufacturing plant to produce 10,000 cars a year. Beginning in 2009, the newly announced “WhiteStar” car, a four door, five-passenger sports sedan, which is 100 percent electric, will roll out of the $35 million New Mexico facility. The new plant will bring 400 new jobs to the state. The “WhiteStar” is expected to cost $50,000 for the standard model and $65,000 for the premium model. New Mexico Governor Bill Richardson has directed the state's General Services Division to explore the purchase of 100 WhiteStar vehicles for the state fleet over a two year period. Tesla has design, engineering and manufacturing facilities in California, Michigan, Taiwan and the United Kingdom.

For more information about the ZAP-X, please see:
http://www.zapworld.com/ZAPWorld.aspx?id=4472

To learn more about Tesla’s new manufacturing facility and WhiteStar, please see:
http://www.teslamotors.com/media/press_room.php?id=25

Hybrid School Buses Arrive in Florida

Manatee school district in Florida recently became the proud owner of the first hybrid school buses in the state. The district received two 71-seater buses which are powered by a V-8 engine and use an 80-watt electric drive system. The buses are capable of recharging the battery pack through regenerative braking. The buses will join the district’s fleet of 250 buses, all of which run on biodiesel. The Manatee district received a grant of $50,000 to purchase the buses which are expected to improve fuel economy to 12 miles per gallon (up from 9 miles per gallon), helping the school district to save on fuel costs.

The buses were purchased through a Buyers Consortium of school districts across the country seeking to lower the cost premium associated with the purchase of these advanced technology buses. Currently, the buses cost $225,000, a significant premium over comparable diesel school buses. Ten other states will receive hybrid school buses through the consortium. Last year, the Hybrid School Bus Project coordinated by North Carolina-based Advanced Energy issued a request for bids for the manufacture of these buses. School bus manufacturer IC Corporation, in partnership with Enova Systems, responded to this request and won the bid to produce these buses. Volume purchases can help bring down the per bus cost while helping to build the market for this cleaner technology.

More information about this project is available at:
http://www.hybridschoolbus.org/

EPA Awards $145,000 for Retrofit Projects

The U.S. Environmental Protection Agency (EPA) recently announced two grants totaling $145,000 to facilitate the cleanup of diesel vehicles in Wisconsin and Illinois. The diesel retrofit projects will benefit school buses in the Chicago area and reduce emissions from heavy-duty trucks in Wisconsin. Both awards were made through EPA’s Region 5 office.

The American Lung Association will receive $94,876 to retrofit 43 school buses with pollution-reduction devices. School buses in Green Oaks, Mundelein, Grayslake and Ingleside will benefit from the Clean School Bus USA grant.

Air Pollution Heightens Risk of Heart Attack in Women

A new study suggests that women exposed to air pollution are at greater risk of developing and dying from cardiovascular disease. The research, which was recently published in the February issue of the New England Journal of Medicine, monitored nearly 66,000 women over the age of 50 across the United States. Researchers found that women living near areas with high levels of fine particulate pollution were more likely to develop heart disease or suffer from strokes or heart attacks regardless of their weight, smoking history, blood pressure or cholesterol levels. The primary source of fine particulate pollution in urban areas is from motor vehicles.

Researchers found that for every 10 micrograms per cubic meter of air increase in particulate matter concentrations, a woman was 76 percent more likely to die from heart disease. “Our study provides evidence of the association between long-term exposure to air pollution and the incidence of cardiovascular disease,” said Dr. Joel Kauffman, University of Washington Seattle, one of the study researchers. Results from this study help bolster the case for more stringent fine particulate standards. In September 2006, the U.S. Environmental Protection Agency adopted new standards for fine particles strengthening the 24-hour fine particle (PM2.5) standard from the 1997 level of 65 micrograms per cubic meter (μg/m3) to 35μg/ m3. The agency chose to retain the current annual fine particle standard at 15μg/ m3 despite recommendations from its own scientific advisory panel to strengthen the standard.

For the research paper, please see:
http://content.nejm.org/cgi/content/full/356/5/44

Alternative Fuels & Vehicles Conference + Expo
April 1-4, 2007
Anaheim, CA

The 13th national Alternative Fuels and Vehicles Conference and Expo will offer information, resources and products to help shape transportation decisions for fleets. The conference will feature the latest policy and technical developments related to alternative fuels such as ethanol, biodiesel; alternative fuel vehicles (AFVs), hybrid-electric and plug-in hybrid technologies; blends, including hydrogen; fuel cells; and idle-reduction devices.
For more information and to register, please visit:
http://www.afvi.org/NationalConference2007/info.html

EESI’s Transportation Program is eager to learn about your clean vehicle fleet/efforts. If you are in the process of procurement, or if you already operate heavy or light-duty vehicles that produce fewer emissions and consume less fuel than conventional diesel or gasoline powered vehicles, let us know if we haven’t heard – and told -- your story! We’ll post this information on our website and include it in future editions of Clean Motion!

Send this information Jan Mueller at jmueller [at] eesi.org or call 202-662-1883. More information can be mailed to 122 C St., NW, Suite 630, Washington, DC 20001.

The Environmental and Energy Study Institute is a non-profit organization established in 1984 by a bipartisan, bicameral group of members of Congress to provide timely information on energy and environmental policy issues to policymakers and stakeholders and develop innovative policy solutions that set us on a cleaner, more secure and sustainable energy path . EESI's valuable work in energy, climate change, agriculture, transportation and smart growth is made possible through financial support from people like you.

Your tax deductible contribution will help EESI develop innovative policy solutions for a cleaner, safer, healthier world. For more information, go to our website or contact Jan Mueller at jmueller [at] eesi.org or call 202-662-1883.