Administration Unveils Budget Proposals, Cuts for Transit and Clean School Bus Program

On February 6th 2006,  U.S Transportation Secretary Norman Y. Mineta unveiled a $65.6 billion fiscal year (FY) 2007 Budget to fund the nation’s roadways, rail and air transportation.  The proposal includes cuts for the Small Starts Program, new resources for cleaner buses, reduced support for Amtrak passenger rail and an initiative to explore alternatives to the gas tax, currently the principal source of transportation revenue.  

Key provisions in the Department of Transportation (DOT) Budget include: 

Transit funding increases by $300 million from $8.5 billion (appropriated) in FY 2006 to $8.8 billion in FY 2007.   However, the budget request falls $100 million short of the $8.9 billion authorized by the transportation bill, “Safe, Accountable, Flexible, Efficient Transportation Equity Act - A Legacy For Users" (SAFETEA-LU, P.L 109-59).  The budget request for Formula and Bus Grant Programs, which fund transit in urban and rural areas, transportation needs of the elderly and paratransit, is $7.26 billion, up from $6.9 billion in FY 2006.  

·      Bus and Bus Facilities Program - The request for the Bus and Bus Facilities Program, the principal source of funds for bus and bus-related infrastructure projects is $846.9 million, down from $855.5 million authorized in SAFETEA-LU.

·      Clean Fuels Grant Program - The Clean Fuels Grants Program receives a huge boost with the administration requesting $45 million in funding.   This is the first time that the DOT has requested separate funding for this program since it was authorized in 1999.   The Clean Fuels Grants Program should be a very valuable resource for promoting clean bus deployment through the funding of advanced technologies and fuels in buses.   It is authorized at $238.1 million over five years in SAFETEA-LU.

·      Small Starts Program – The Budget request for the Small Starts Program is $100 million less than the SAFETEA-LU authorized amount of $200 million.  Small Starts is a new program designed to support the construction of smaller fixed guideway projects (capital investment grants less than $75 million) such as streetcars, trolleys, commuter rail, and certain bus rapid transit systems.  

·      Transit Research – The DOT is also requesting $40.4 million for National Research and Technology Programs to develop solutions to improve public transportation.  Included in the proposal is a $1.2 million request for the clean fuels and electric drive bus deployment program to encourage deployment of hybrid and zero-emission buses by transit agencies across the country.

·      Amtrak – After zeroing out funding for Amtrak in its FY 2006 request, the DOT is now proposing a funding level of $900 million.  While this level is $400 million below what Congress appropriated for Amtrak in FY 2006, inclusion of any funding represents a victory for supporters of intercity passenger rail. 

·      Gas Tax Alternatives – The DOT proposal includes $100 million for a pilot program to test alternatives to the gas tax which is the principal source of transportation funds.  The DOT will partner with five states to implement approaches such as fees and tolls to raise revenues for transportation projects. 

The Environmental Protection Agency (EPA) which oversees the Clean School Bus Program sees a $300 million cut in its overall budget. The EPA’s FY 2007 Budget proposal eliminates the Clean School Bus Program, a principal source of funds for the retrofit and replacement of dirty school buses.  Instead, the program is now rolled into a new Diesel Emissions Reduction Grant Program.  This grant program, which is focused on reducing particulate matter from existing diesel engines, was authorized at $200 million per year (2007-2011) in Sections 791-797 of the Energy Policy Act of 2005.  The EPA FY 07 budget funds it at $49.5 million, one fourth of the authorized amount.   The elimination of a dedicated source of funding severely hampers efforts to clean up existing school buses as school districts will now have to compete with other diesel sources such as trucks, transit buses and construction equipment for funding under the new program. 

For more detailed budget analyses, please see:

Transportation Budget http://www.eesi.org/publications/Press%20Releases/2006/
FY07%20Transportation%20Budget%20release.PDF

Environmental Protection Agency http://www.eesi.org/publications/Press%20Releases/2006/
FY07%20EPA%20Budget%20Analysis.pdf

Department of Energy http://www.eesi.org/publications/Press%20Releases/2006/
FY07%20DOE%20EERE%20Budget%20Analysis_Updated%202.14.06.pdf

  Consortium Orders 157 Hybrid Buses

Eleven transit agencies have pooled their resources together to purchase hybrid buses in an effort to deploy this cleaner, more efficient technology on a large scale.   Transit agencies in California , Nevada and New Mexico have partnered to place an order for 157 diesel-electric hybrid buses, one of the largest orders for hybrid buses in recent times.  The buses will be manufactured by Gillig Corporation and will be equipped with GM-Allison’s hybrid electric drive train. 

Leading the consortium is San Joaquin Regional Transit District (SJRTD) which plans on buying 50 buses.  SJRTD had previously purchased two GM hybrid buses in June 2004.  Based on their experience with the buses, they decided to expand their purchase.   According to Bobby Kuhn, Director of Maintenance for SJRTD, the first hand experience of reductions in fuel consumption, noise levels and emissions convinced them to purchase additional buses and share their experience with other transit agencies. 

Growing interest in hybrid technology and a desire to clean up their fleets prompted transit agencies in California , Nevada and New Mexico to form a buying consortium.  Participating agencies include Benicia Transit, Fairfield Transit, Golden Gate Transit, Humboldt Transit Authority, Livermore Amador Transit Authority, Monterey-Salinas Transit, SamTrans (San Mateo County), and Santa Barbara MTD in California.  Citifare in Reno Nevada and ABQ RIDE in Albuquerque New Mexico are also part of the consortium.   Agencies will begin receiving buses in mid-2006 with the final deliveries due in late 2007.

Several transit agencies in California have opted to go the hybrid route. In 2005, six counties, including Long Beach , Orange , Norwalk , Gardena , Montebello and Fresno , combined individual bus purchases to place a 76-bus order with New Flyer Industries, thus helping to bring down the cost per bus.  Increasingly, transit agencies are looking at ways to reduce the cost of purchasing hybrid buses by ‘piggybacking’ on other transit agency bus orders.  Large volume orders will help make hybrid buses more affordable and develop the market for this cleaner, advanced technology.

 Ford Introduces World’s First Flexible Fuel Hybrid SUV

The Washington Auto Show held in late January was the stage for the introduction of Ford Motor Company’s latest automobile offering – a flexible fuel hybrid sports utility vehicle.  The Ford Escape Hybrid E85 is a research prototype capable of running on 85 percent ethanol.   The vehicle which is built on the Ford Escape hybrid platform, is the world’s first flexible fuel hybrid.  According to the company estimates, if 5 percent of the U.S vehicle fleet were powered by hybrids running on E85, oil imports could be reduced by 140 million barrels a year. 

The challenge Ford faces with its ethanol-powered hybrid is controlling evaporative emissions.   Standard flexible-fuel vehicles are equipped with an evaporative vacuum system to control emissions from ethanol which is more volatile than gasoline.  However, the vacuum system requires the combustion engine to be running in order to operate.   In the case of hybrids, the vehicle often runs solely on electric power, thus failing to activate the evaporative vacuum system.    Ford engineers are hoping to address this issue with the goal of certifying the flexible- fuel hybrid as a partial zero-emissions vehicle.  

Ford plans on introducing several hybrids in the coming years, with the Mazda Tribute Hybrid debuting in 2007, followed by the Ford Fusion and Mercury Milan hybrids in 2008.   Hybrid counterparts of the Ford Five Hundred, Mercury Montego, Ford Edge and Lincoln MKX will become available to consumers in the 2008 to 2010 time period.

More information on the Ford Escape Hybrid E85 available at:
http://media.ford.com/newsroom/feature_display.cfm?release=22424

  Hybrid School Bus on the Way

School bus manufacturer IC Corporation and technology provider Enova are teaming up to make hybrid school buses a reality.  The bus will be powered by an International VT365 V8 diesel engine with an 80kW hybrid-electric powertrain.  The system will be able to recover energy by the process of regenerative braking making this technology ideal for school buses which operate primarily in stop-and-go traffic. The recovered energy will recharge the battery pack.  Manufacturers hope that this new technology will achieve a 40 percent increase in fuel economy and significantly reduce diesel emissions. A current prototype of the bus is being tested in IC’s research facility in Fort Wayne , Indiana . The bus will be delivered to a customer in the spring and will be the first hybrid school bus in the United States .

Hybrid school buses present a promising opportunity to address diesel emission concerns while helping to reduce fuel consumption.   Advanced Energy’s Hybrid Electric School Bus Project was recently awarded an $840,000 grant from the State Technologies Advancement Collaborative (STAC) to help fund the purchase of approximately 20 hybrid electric school buses, demonstrate these vehicles in school districts across the country, gather and disseminate operational data as well as conduct an economic feasibility study.  Participants in this project include Advanced Energy, New York State Energy Research and Development Authority (NYSERDA), North Carolina Department of Public Education, North Carolina Department of Environment and Natural Resources, Florida Department of Education, South Carolina Department of Education, New York Power Authority, and school districts in Arkansas , California , Iowa , Texas , and Washington .  The project is expected to advance the development and commercialization of plug-in hybrid vehicle technology and eventually promote the adoption of plug-in hybrid school buses throughout the country.

Read more about IC Corporation’s hybrid school bus at:
http://www.enovasystems.com/news/
PR-20060202%20Enova%20works%20with%20IC%20Corporation%20to%20produce%20Nation’s
%20First%20Hybrid%20School%20Bus.htm

 Fuel Cell Bus Joins SunLine Transit Fleet

The SunLine Transit Agency in California recently added a hydrogen fuel cell-powered bus to its fleet of 47 transit buses.  The 40-foot Van Hool bus is powered by a PureMotion™ 120 kW fuel cell power system.  The PureMotion™ fuel cell which is manufactured by Connecticut-based UTC Power, provides very high fuel efficiency by combining oxygen with hydrogen stored on-board at near ambient temperature, hence eliminating the need for a compressor. The bus, which is one of four hydrogen fuel cell-powered transit vehicles of its kind, is twice as efficient as a standard diesel bus, with water being the only emission. 

See more about SunLine’s fuel cell bus at:
http://www.sunline.org/home/index.asp?page=16&recordid=582&returnurl=index%2Easp%3Fpage%3D16

 DaimlerChrysler Approves B20 for Pickups

DaimlerChrysler has become the first U.S. automaker to officially approve the use of a B20 blend (20 percent biodiesel, 80 percent petroleum diesel) for one of its vehicles and cover its use under warranty.  The approval applies to the 2007 Dodge Ram pickup for government and commercial operators.  In the past, automakers have been reluctant to approve the use of B20, making DaimlerChrysler’s approval a big step in helping biodiesel reach mainstream markets.   Chrysler already uses a B5 blend (5 percent biodiesel, 95 percent petroleum diesel) in its Jeep Liberty CRD diesel sports utility vehicle.  

In addition, DaimlerChrysler is working with the National Biodiesel Board to develop testing procedures which would create an industry standard for B20.  With quality assurances in place, more automakers can cover biodiesel use under warranty.

For more information on Daimler Chrysler’s decision, please see: http://www.biodiesel.org/resources/pressreleases/fle/20060123_dcxapprovesb20indodgeram.pdf

New Hybrid Buses Arrive in Washington DC

Washington DC , the nation’s third most congested area, recently received some respite with the introduction of a cleaner, more efficient public transportation option.  In January, the Washington Metropolitan Area Transit Authority (WMATA) pressed into service six diesel-electric hybrid buses with 44 more to be deployed by the end of March.  The 40-foot New Flyer buses equipped with GM Allison’s hybrid drivetrain are the first hybrid buses to join the WMATA fleet.   The buses which were purchased at $521,980 each are equipped with a host of features such as onboard video cameras, wheelchair ramps, and an automatic vehicle maintenance monitoring system to name a few. 

WMATA is committed to purchasing a total of 100 hybrid buses with funding from its Infrastructure Replacement Program.   According to Metro Board member Charles Deegan, “Metro is taking an important step by making sure that the buses we put on the roadways are environmentally friendly.  These hybrid electric vehicles help us accomplish that mission.” 

A recent study by the Metropolitan Washington Council of Governments reported that highway congestion in the Washington region is so severe that virtually all major commuter routes are chronically clogged and unable to move motorists efficiently.  The Texas Transportation Institute’s 2005 Urban Mobility Study ranked the Washington DC area as the third most congested area in the country.

WMATA operates the fifth largest bus service in the country, with a fleet of 1,473 buses, serving 350 routes in the District of Columbia , Maryland and Virginia .   Experts estimate that public transportation in the Washington metropolitan area cuts commuting costs by $997 million per year.  “We are committed to being a leader when it comes to improving regional air quality,” says Deegan. 


For more information on WMATA’s hybrid buses, please
see:
http://www.wmata.com/about/MET_NEWS/PressReleaseDetail.cfm?ReleaseID=1080

Medford School District Pioneers Biodiesel Use in School Buses

We would like to introduce a new section in the National Clean Bus Update - The Clean Bus Spotlight.  Each month, we will highlight the effort of a transit agency, school district or other fleet making efforts to deploy cleaner fuels and advanced vehicle technologies in its bus fleets.  The goal is to draw attention to these efforts and share success stories with stakeholders and individuals in order to foster replication by those interested in deploying clean bus solutions in their communities.   This month we spotlight the efforts of Medford Township Public School District in New Jersey to use biodiesel in its entire fleet.  

Medford Township Public School District has been a pioneer of biodiesel use, using the fuel in its fleet since 1997.  The district operates 62 school buses on a B20 blend (20 percent biodiesel, 80 percent petroleum diesel), transporting 3,500 students daily.  Through its use of biodiesel, the school district has displaced more than 70,000 gallons of petroleum diesel and significantly reduced toxic emissions, resulting in increased public health and energy security benefits, as well as improvements to air quality in the community.  In addition, the district has adopted a host of energy efficiency and renewable energy measures which have strengthened its energy portfolio and contributed to increased sustainability.

In 1997, in partnership with New Jersey ’s Alternative Fuels Project Manager Ellen Bourbon, they applied for and were awarded a $115,000 grant by the US Department of Energy (DOE) to fund their biodiesel project.  This funding was used to subsidize the incremental costs of purchasing the B20 and purchase an above-ground biodiesel fuel storage tank.  The Board of Public Utilities and Medford Township also made cash and in-kind contributions to the project.  Thus began Medford ’s highly successful experiment with biodiesel.

For the past eight years, Medford Township Public School District has been able to achieve significant petroleum displacement and emissions reductions through its use of biodiesel.  During the four- year DOE biodiesel demonstration program, the fleet of buses traveled 1,247,653 miles consuming 178,428 gallons of biodiesel (B20), resulting in the displacement of 35,685 gallons of petroleum diesel.  Since the inception of the program, the district has successfully displaced 70,000 gallons of petroleum diesel, representing a substantial contribution to reducing dependence on foreign oil.  The district has also realized significant emission reduction benefits from the use of biodiesel.  Preliminary emissions monitoring data suggest particulate matter reductions by 39 percent, 35 percent carbon monoxide reductions and 89 percent reduction in total hydrocarbons.  The district also recorded nitrogen oxide emissions reductions of almost 34 percent, which was contrary to expected results and a real bonus for the program.  These emissions reductions have helped the district’s school children breathe a little easier.

Medford Township Board of Education’s Director of Operations and Technology Joe Biluck Jr. offers high praise for biodiesel.  “Our experience with biodiesel has been nothing short of positive,” he says.  Maintenance issues related to fuel use have been virtually non-existent.  According to Biluck, there have been no problems with filter plugging at low temperatures or fuel system failure.  He has found that ease of integration, broad application and availability have made biodiesel a viable and workable means of improving local air quality and domestic sustainability.  Consequently, Biluck has elected to expand the use of biodiesel to groundskeeping equipment.

The success of the Medford School District ’s biodiesel program, coupled with efforts of the State Energy Office, has led to the wide-scale adoption of biodiesel in New Jersey .  Biodiesel is now included in the State of New Jersey ’s State Contract Purchasing Program, and the State also recently developed a Biodiesel Rebate program to offset the incremental cost of integrating biodiesel into public fleets.  By demonstrating the workability and benefits of its biodiesel program, Medford has helped promote state and local change toward alternative fuels like biodiesel.

Medford District has served as a model for other school districts and institutions by demonstrating that environmental stewardship, energy efficiency, and fiscal responsibility can go hand in hand.  It has proven that high startup costs alone should not be a deterrent when looking at cleaner transportation options.  Schools should rather look at the “big picture” long-term operational costs as well as the health benefits when making transportation investments.  According to Joe Biluck, the added benefit of this philosophy is the insulation against severe market fluctuations. “No longer are we shackled by spikes in energy costs,” he says.  This kind of foresight serves as an example to other school districts struggling with spiraling diesel costs and tight budgets.

Medford Township Public School District was recently recognized as a National Clean Bus Leader by EESI.  As early adopters of biodiesel, the District has proven the sustainability of a cleaner fuel choice while setting an example for other school districts eager to find cost-effective ways to mitigate the harmful effects of diesel emissions on children’s health.   Medford School District ’s commitment to reducing the emissions of its fleet, in concert with the implementation of several sustainable energy initiatives across the board, promotes a consciousness among students, parents, employees, and local residents. 

American Public Transportation Association Legislative Conference
March 5-7, 2006
Washington , DC

With the implementation of SAFETEA-LU underway, APTA’s 31st Annual Legislative Conference will take place at a time when the Administration is implementing key policy changes mandated by the new legislation and Congress is developing its annual appropriations legislation within the framework of SAFETEA-LU. In addition, Congress will begin examining future transportation financing options, a key task mandated by the new law, and addressing transit security needs.

APTA will offer workshops on important legislative issues including SAFETEA-LU implementation and funding opportunities.  Transit CEOs, board members, business members, and others are encouraged to attend.

For more information and to register, please see:
http://www.apta.com/conferences_calendar/legconf/full_06.cfm

Michigan Clean Fleet Conference: Driving Technologies, Fuels, and Funding for Cleaner Air


March 22, 2006
7:30 a.m. to 4:30 p.m.
Next Energy Center
461 Burroughs
Detroit , Michigan 48202

This event will educate and inform attendees about the various strategies, fuels, and technologies available to help Michigan fleets reduce fuel usage, decrease emissions, and save money. A series of presentations and panels will cover a wide range of topics including examples of fleets using alternative fuels and technologies as well as available funding opportunities. Participants will have the opportunity to network with other fleet managers, governmental and planning officials, as well as representatives of technology applications, including hybrids, idle reduction, emissions controls, and fuel suppliers. This event is sponsored by NextEnergy, the EPA, the Michigan Department of Environmental Quality, and the Michigan Department of Labor and Economic Growth – Energy Office.

For more information on the program, please visit: http://www.michigan.gov/deq/0,1607,7-135-3308_3333_4169---,00.html


EESI’s National Clean Bus Project is eager to learn about your clean bus fleet. If you are in the process of procurement, or if you already operate buses that produce fewer emissions and consume less fuel than conventional diesel buses, let us know if we haven’t heard – and told -- your story!  Provide (1) the name of your organization and primary contact person; (2) type of bus engine, fuel, and other emission control devices used; (3) number of buses; (4) funding sources; (5) costs and benefits; (6) and lessons learned. We’ll post this information on our website and include it in future editions of the Clean Bus Update! Send this information to Shefali Ranganathan at sranganathan@eesi.org or call 202-662-1883. More information can be mailed to 122 C St., NW, Suite 630 , Washington , DC 20001 .

The National Clean Bus Update is sponsored by the State Energy Office, North Carolina Department of Administration and the U.S Department of Energy, with State Energy Program funds, in cooperation with North Carolina State University Industrial Extension Service. However, any opinions, findings, conclusions, or recommendations expressed herein are those of the author and do not necessarily reflect the views of either the State Energy Office, North Carolina Department of Administration, or the U.S Department of Energy.
The National Clean Bus Update is a monthly periodical providing an overview of current program and policy activities related to the deployment of low-polluting, energy-efficient buses in the United States . Topics include technology developments, clean vehicle deployment, energy consumption, the environment, government policy, and public health. The National Clean Bus Network is an informal coalition of public and private sector organizations working to increase the use of cleaner bus technologies and fuels. The National Clean Bus Network is a free resource to all clean bus stakeholders. If there are issues we are missing and you think we should cover, please let us know.

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 Shefali Ranganathan at sranganathan@eesi.org or call 202-662-1883.

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