Environmental and Energy Study Institute

June 2007

• Senate Energy Bill Approves Stricter Fuel Economy Standards
• California Assembly to Reconsider Vote on Clean Vehicle Incentive Program
• Momentum Builds for Congestion Pricing Plan in Manhattan
• New Battery Pack for Plug-In Retrofit from LTC Corporation
• Advanced Development Battery Contracts Awarded by GM
• U.S. Hybrid Figures Set Record as Toyota Doubles Annual Sales, Surpasses 1 Million Globally
• The Big Three Join U.S. Climate Action Partnership
• Bloomberg Proposes Hybrid Taxi Fleet for NYC
• New Jersey Utility to Replace 1,300 Fleet Vehicles with Hybrids
• Events
• Submit Your Clean Transportation Story

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Senate Energy Bill Approves Stricter Fuel Economy Standards

On June 21st, the Senate passed the energy bill (H.R. 6) by a Yea-Nea vote of 65-27, including a compromise to CAFE legislation that raises fuel-economy requirements for new light-duty vehicles fleetwide, demanding that they get 35 miles per gallon by 2020.

“This is a victory for the American public,” said Senator Dianne Feinstein (D-CA), “it closes the S.U.V. loophole,” alluding to the current standards which are less stringent for sport utility vehicles and pickup trucks than for cars.

The standards, which have not yet been approved by the House, had been challenged by the auto industry, which is now required to meet a standard of 27.5 miles per gallon for cars and 24 mpg for light-trucks.
The concession that made the agreement possible was the removal of a requirement that automakers meet an additional 4 percent annual increase in fuel economy for the decade after 2020. Automakers had been especially opposed to that provision as well as the decision to combine the car and light-duty vehicles/SUV fleets into one standard.

The bi-partisan compromise was offered by Senators Ted Stevens (R-AK) and Thomas Carper (D-DE) and was endorsed by Senators Dianne Feinstein (D-CA), Olympia Snowe (R-ME), Daniel Inouye (D-HI), Byron Dorgan (D-ND), John Kerry (D-MA), Maria Cantwell (D-WA), Bill Nelson (D-FL), Barbara Boxer (D-CA), Amy Klobuchar (D-MN), and Larry Craig (R-ID).

Conditions of the new “Ten-in-Ten” Act (10 mpg increase in fuel economy in 10 years) include:

• Increases fleetwide average fuel economy for all cars, SUVs, and trucks up to 10,000 lbs in weight by 10 miles per gallon from model years 2011 to 2020—from 25 to 35 miles per gallon by model year 2020.

• The rules will use attribute-based classes (such as size or weight) determined by the Department of Transportation’s National Highway and Transportation Safety Administration (NHTSA). Each class of vehicles—as determined by NHTSA—will be required to meet the new fuel economy standard for that particular class to achieve the fleetwide average of 35 miles per gallon by 2020. Each automaker will no longer be required to average the fuel economy for its combined corporate fleet of cars and light trucks.

• From 2011 to 2019, NHTSA must set fuel economy standards that are the maximum feasible, and ratchet these standards up to meet the 2020 target of 35 miles per gallon, unless NHTSA determines that the achievement of the 35 miles per gallon standard would not be cost-effective for the nation. The bill defines “cost-effective” to mean that the value to the United States of reduced fuel use from a proposed fuel economy standard is greater than or equal to the cost to the United States of such standard. From 2021 to 2030, NHTSA must set fuel economy standards that are the maximum feasible, and ratchet these standards up at a reasonable rate.

• Establishes a credit system and trading program for automakers run by NHTSA. Should an automaker exceed the standards it can sell its credits to another automaker, or bank the credits for up to 5 years. If an automaker cannot meet the standards in a given year, it can purchase credits, use banked credits, or borrow from projected surpluses from future years.

• Establishes an “off-ramp”, or mechanism for alternative standards, for automakers (upon their application), if NHTSA determines that the prescribed standard is more stringent than the maximum feasible average fuel economy level that manufacturer can achieve.

• Directs NHTSA to develop a structure to evaluate and establish fuel efficiency standards for commercial trucks that increase at the maximum feasible rate. Requires improvement in the fuel economy of medium and heavy duty trucks over a 20 year period. It also removes work trucks weighing up to 10,000 pounds from the fuel efficiency standards for cars and light trucks.

• Automakers that sell less than 0.4 percent of the cars sold in the United States would have their fuel economy standard set by NHTSA at the maximum feasible level outside of the regular car standard. (Currently 0.4 percent of the cars sold in the US each year equals to approximately 60,000 cars).

• Creates a consumer labeling program that also includes greenhouse gas emissions.

• Requires the federal government to purchase the most fuel-efficient cars practicable.

• Uses money raised by fuel economy penalties to fund research into fuel-saving technologies and to expand the availability of alternative fuels. Calls for an advanced battery initiative and standards for biodiesel.

• Requires NHTSA to issue a final rule by 2018 to create safety standards that address the differences between the largest and smallest vehicles.

The final version also removes the earlier provision that mandated that 50 percent of cars be flex-fuel in 2012, increasing to 80 percent in 2015. Instead, the compromise language calls for ensuring that 50 percent of vehicles sold in the US are alternative fuel vehicles by 2015—including but not limited to flex-fuel vehicles, hybrids, electric vehicles, fuel cells and others.

California Assembly to Reconsider Vote on Clean Vehicle Incentive Program

California state legislators are reconsidering a bill (AB 493) that establishes a sliding feebate program (surcharges and incentives) based on the greenhouse gas emissions of new light- and medium-duty vehicles. The program would be administered by the California Air Resources board (ARB), would take effect in July 2010 and would apply to motor vehicles introduced for the 2011 model year.

The Clean Vehicle Incentive Program is designed to be self-financing: the surcharges for high-emitting vehicles would fund the rebates for the most-efficient vehicles. The bill was sponsored by the Union of Concerned Scientists, which says that it is seeking to establish a program that reduces vehicle emissions while protecting consumer choice.

The bill, authored by Assemblyman Ira Ruskin (D-Redwood City), requires ARB to develop regulations to implement the program. ARB will have to calculate the rebate or surcharge based on the vehicle’s emissions of greenhouse gases, compared to the emissions of all vehicles of the same model year that are subject to the Program.

The program will have a zero-band that reflects 20-25% of a fleet of a given model that will neither receive a rebate nor a surcharge. The zero-band is to be adjusted to ensure that buyers have a variety of vehicles among various types, including light trucks, that are not assessed a surcharge. ARB will consider sales-weighted data in determining the placement of the zero-band.

The maximum amount of the rebates and surcharges is to be not less than $2,250 or more than $2,500. The minimum amount is $100. Any vehicle with an estimated surcharge or rebate of less than $100 is to be placed in the zero-band.

ARB will make annual adjustments to the applied rebates and surcharges to ensure that the surcharges are sufficient to cover the cost of implementing the program, including administrative costs incurred by any state agency.

The bill directs ARB to determine how to account for alternative fueled vehicles in the surcharge and rebate calculations, and authorizes ARB to develop procedures for surcharge refunds if an approved alternative fuel conversion device is installed on the vehicle within six months of purchase.

The bill also requires ARB to consider upstream greenhouse gas emissions that occur during the production of the fuels.

Certain categories of vehicles (such as emergency vehicles and vanpooling vans) and diesel-powered vehicles are exempted from the legislation, as are very-low-income buyers and very small businesses.

The California Motor Car Dealers Association and the Alliance of Automobile Manufacturers are opposing the bill.

To view an AB 493 Fact Sheet by the Union of Concerned Scientists, please visit:
http://www.ucsusa.org/assets/documents/clean_vehicles/CCCD-Fact-Sheet-2-14.pd

Momentum Builds for Congestion Pricing Plan in Manhattan

New York City Mayor Michael Bloomberg’s congestion pricing proposal has gained modest support from Governor Eliot Spitzer and Mary E. Peters, Secretary, U.S. Department of Transportation, who raised the prospect of federal grants to assist the city’s implementation of the plan.

Governor Spitzer said of the proposal, “There will always be some congestion and the good news is there is economic growth and there’s vitality in the city…the goal is to mitigate the effects of congestion.” Spitzer has been swayed by Bloomberg’s arguments that the plan would help the Metropolitan Transportation Authority, whose precarious finances have come at a politically convenient time for the mayor.

Since April of this year Bloomberg has been waging an uphill battle to persuade Albany of the merits of his congestion pricing proposal. He has repeatedly stressed that the fees from charging drivers in Manhattan’s most heavily trafficked areas would be a boon for public transit and could potentially help delay, or minimize the impact of, a fare increase.

The plan, however, still has to overcome Albany’s skepticism and the opposition of parking garage owners and other businesses worried that they will lose revenue if fewer cars enter Manhattan’s busiest areas.

To review the transportation element of New York City’s PLANYC2030 plan, including details of the congestion pricing element, please see:
http://www.nyc.gov/html/planyc2030/html/plan/transportation.shtml

New Battery Pack for Plug-in Retrofit from LTC Corporation

Lithium Technology Corporation (LTC), a company that provides Li-ion systems for a range of sectors, including automotive and military, has retrofit a Toyota Prius to a plug-in hybrid using a battery pack based on LTC’s new product line of large-format lithium iron phosphate (LiFePO4) cells. The largest cells of their kind, the 7 kWh battery pack comprising 63 of LTC’s 3.2V, 35Ah iron phosphate cells, could support fuel economy of up to 125 miles per gallon.

The large-format technology allows the use of a significantly lower number of cells. This enables greater precision in monitoring of the cells by the battery management system (BMS) to keep cells in balance for best performance and preventing damage to the battery due to over-voltage, under-voltage, over-temperature and short-circuit, according to the company.

LTC cells use LiFePO4 licensed technology, developed by Professor John Goodenough with the University of Texas and supplied by Phostech.

More information about LTC’s lithium-ion battery products and services can be found at: http://www.lithiumtech.com/

Advanced Development Battery Contracts Awarded by GM

General Motors has awarded two separate contracts for advanced development of lithium-ion batteries and packs for the electric drive E-Flex System used in the Chevrolet Volt.

One contract will go to lithium-ion battery supplier Compact Power, Inc. (CPI), based in Troy, Mich. CPI is a subsidiary of Korean battery manufacturer LG Chem. A second contract has been awarded to Frankfurt, Germany-based Continental Automotive Systems, a division of Continental A.G., an automotive supplier that will develop lithium-ion battery packs using cells from A123Systems.

GM selected the two companies out of the 13 technical proposals it considered to provide advanced lithium batteries for both range-extender electric and fuel cell variants of the E-Flex architecture.

The E-Flex System was initially exhibited as the plug-in battery electric propulsion system for the Chevrolet Volt concept vehicle at the North American International Auto Show in January. A plug-in fuel cell variant of the E-Flex system was shown at the Shanghai Auto Show in April. The “E” stands for electric drive; the “Flex” represents the architecture’s adaptability to be configured in several vehicle packages operating on various sources of electricity.

GM said that the suppliers chosen demonstrated solutions that best met the specific energy, power, mass and durability requirements for the battery in the E-Flex range-extender variant. The battery for the fuel-cell variant requires half the energy and power, but must be integrated and connected to the vehicle in a similar way.

A123Systems recently introduced its new 32-series family of automotive-class, large-format Li-ion cells. The company designed the 32157 PHEV cells to deliver the lowest cost per watt hour ($/Wh). The 32157 offers a volumetric density of 260 Wh/L, can deliver very high power at a lower state of charge with a 10+ year projected service life, according to the company.

CPI makes large-format cells using a proprietary lithium manganese spinel (LiMn2O4) cathode with additives to improve calendar life under high temperature conditions. In work with the Department of Energy’s FreedomCAR initiative last year, CPI delivered a cell design that exceeded the FreedomCAR goal of 300,000 cycles. The company also has developed a patent-pending abuse tolerant separator (a membrane between the electrodes) that will further improve the performance of this cell design.

“The signing of these battery development contracts is an important next step on the path to bring the Volt closer to reality,” said Rick Wagoner, GM Chairman and CEO. “Given the huge potential that the Volt and its E-Flex system offers to lower oil consumption, lower oil imports, and reduce carbon emissions, this is a top priority program for GM.”

U.S. Hybrid Figures Set Record as Toyota Doubles Annual Sales, Surpasses 1 Million Globally

A partnership between Mitsubishi Corporation,U.S. sales of light-duty hybrid electric vehicles set a new record in May at more than 45,000 units sold, up 91 percent from May 2006. Those numbers do not include sales of General Motors’ hybrid vehicles, as the company does not yet break those figures out separately.

Overall, U.S. light duty vehicle sales rose 5 percent in May 2007 compared to the prior year, according to Autodata. Sales of passenger cars increased 6.1 percent, while sales of light-duty trucks increased 3.9 percent. The combined hybrid sales from Toyota, Honda, Ford and Nissan represented 2.9 percent of new vehicle sales in May—the highest percentage to date.

Ford’s hybrids- the Mariner and Escape- had their second best month yet, with sales increasing 12percent to 3,214 units, representing 13.8 percent of all Mariner and Escape models sold.

Nissan also turned in its best results to date for the Altima hybrid, with 821 units representing 3.4 percent of all Altima models sold. The Altima hybrid is currently available only in eight states, however.

Honda’s sales of the Civic Hybrid increased 56 percent to 4,520 units in May, representing 11.3 percent of all Civic models sold. The Accord Hybrid’s sales dropped 16 percent to 439 units, representing 1.4 percent of all Accord models sold in May. Honda will not offer a hybrid version of its upcoming new Accord.

Toyota accounted for the bulk of the results with the Prius selling a record high 24,009 units and the Camry Hybrid selling a record 6,853 units. With 36,101 total units sold, the company also reported a 110 percent increase in overall hybrid sales from May 2006.

Other results for May 2007 included 3,312 Highlander Hybrids (down 12 percent from May 2006); 1,746 Lexus Rx 400h vehicles (down 13 percent from May 2006); and 181 GS 450h units (down 38 percent from May 2006).

Toyota has also reported cumulative sales of its hybrid vehicles have surpassed the 1 million mark, with almost 1,047,000 units sold worldwide as of May 31, 2007. Of these, 32.9 percent were sold in Japan and 67.1 percent were sold overseas, primarily in the US. The Prius accounts for 72.4 percent of total global hybrid sales.

Toyota’s hybrid vehicles are for sale in Japan and in more than 40 countries and regions around the world. The company began overseas production of hybrid vehicles in Changchun, China in 2005 and in Kentucky in the United States in 2006. Toyota’s goal is to achieve annual sales of 1 million hybrids in the early part of the 2010s.

The Big Three Join U.S. Climate Action Partnership

The Chrysler Group and Ford Motor have joined the United States Climate Action Partnership (USCAP), endorsing and participating in its call for economy-wide mandatory reductions of greenhouse gas emissions.

USCAP, a partnership representing key sectors of the economy and non-government organizations, earlier this year issued a set of six principles and recommendations toward slowing, stopping and reversing the growth of greenhouse gas (GHG) emissions over the shortest period of time “reasonably achievable”.

USCAP’s recommendations are based on the following principles:

• Account for the global dimensions of climate change;

• Recognize the importance of technology;

• Be environmentally effective;

• Create economic opportunity and advantage;

• Be fair to sectors disproportionately impacted; and

• Recognize and encourage early action.

The group has recommended that Congress establish short- and mid-term emission reduction targets; a national program to accelerate technology research, development and deployment; and approaches to encourage action by other countries, including the developing world.

In May 2007, General Motors became the first automaker to join the group. In testimony before Congress in March, Rick Wagoner, GM chairman and CEO, said that the company is willing to engage in discussions on carbon constraints on the US economy—including caps on mobile source emissions—as part of a broader climate change strategy. GM says that its position is consistent with USCAP’s commitment toward an economy-wide policy and legislative framework that would include a mandatory, flexible cap-and-trade program.

To learn more about the U.S. Climate Action Partnership, please visit: http://www.us-cap.org/

Bloomberg Proposes Hybrid Taxi Fleet for NYC

New York City Mayor Michael Bloomberg recently announced a plan to upgrade the city’s entire yellow taxi fleet to hybrid vehicles over the next five years. The initiative is part of Bloomberg’s larger sustainability plan (PLANYC 2030) for reducing greenhouse gas emissions in New York by 30 percent in the next two decades.

It has been estimated that hybrid vehicles can provide almost double the fuel efficiency of the nearly 1,200 Ford Crown Victoria models which currently make up approximately 90 percent of the city’s fleet. The city has already experimented with using hybrids as yellow cabs in the past. In the last two years. It has added about 400 such vehicles to its fleet, including models like the Toyota Prius, Toyota Highlander Hybrid and Ford Escape.

Under the new plan, the number of hybrids in the fleet will grow to 1,000 by 2008, and will increase by 20 percent each year until 2012. New hybrids will have fuel efficiencies over 25 miles per gallon, far better than that of the current Crown Victorias. According to the Natural Resources Defense Council, Crown Victorias get only 10 to 15 miles per gallon in stop-and-go city traffic and drivers can pay up to $100 per day refueling their tanks. “It costs less to operate these [hybrids] and it puts a lot less into the air, so our kids will breathe better,” Mayor Bloomberg said.

Replacing the taxi fleet with hybrids comes as the city is also backing efforts to upgrade its buses. With support from environmental groups, the city has gradually been switching from dirty, older diesel buses to cleaner natural-gas and diesel-electric hybrid vehicles. More than 10 percent of New York City Transit’s 4,500-bus fleet now consists of natural-gas or diesel-electric hybrids, which produce lower amounts of particulates and nitrogen and sulfur oxides.

New Jersey Utility to Replace 1,300 Fleet Vehicles with Hybrids

Public Service Electric and Gas Company (PSE&G), New Jersey’s oldest and largest regulated electric and gas delivery utility serving almost three-quarters of the state’s population, recently announced plans to reduce its annual carbon emissions by more than 81,000 tons. The company will replace 1,300 vehicles with hybrid cars and light trucks as well as hybrid aerial lift (bucket truck) prototypes-- the first of their kind in the nation-- over the next decade.

In addition to its vehicle replacement program, PSE&G will also power the first of its new vehicles with alternative fuels to immediately begin reducing greenhouse gas emissions. In 2003, the utility company began fueling the diesel-powered vehicles in its fleet with B20 biodiesel.

Ralph LaRossa, president and chief operating officer of PSE&G, said the program highlights a continuing effort by the company to help the state of New Jersey achieve a goal of reducing greenhouse gas (GHG) emissions to 1990 levels by 2020, a 20 percent reduction equal to approximately 46 million tons of carbon dioxide (CO2).

Hybridfest 2007
July 21-22, 2007
Alliant Energy Center, Madison, WI

Hybridfest is one of the Midwest’s first events specifically devoted to the hybrid electric vehicle and other vehicles and fuels that can wean America off its dependence on foreign oil. The two-day event provides a venue for hybrid owners and the general public alike to interact and compare not only current favorites but also new and forthcoming hybrid car offerings. Hybridfest presents a showcase of alternative transportation solutions—from concept vehicles to vehicles that are available and affordable today. Hybridfest 2007 is expanding its focus to include ethanol, biodiesel, hydrogen, and other current and future transportation solutions.

For more information, please visit: http://www.hybridfest.com/

Submit Your Clean Transportation Story!

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 to Jan Mueller at jmueller [at] eesi.org or call 202-662-1893. 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 202-662-1893.