October/November 2007

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Climate Bill Targets Transportation Emissions, Lacks VMT Reduction

Greenhouse gas (GHG) emissions from the transportation sector are treated as a special case by a draft climate bill now moving through the Senate Environment and Public Works Committee.  “America’s Climate Security Act” S.2191, sponsored by Senators Lieberman (D-CT) and Warner (R-VA), takes an “upstream” approach to the transportation sector, choosing to regulate refiners and importers of transportation fuels, as opposed to “downstream” fuel users.  The bill proposes a downstream approach for other regulated energy use sectors, including electric utilities and industrial users as “covered facilities”.

Covered facilities in the bill will be required to obtain allowances for the GHG emissions for which they are responsible under the provisions of the bill.  These allowances will be distributed to regulated entities through a proposed schedule of free and auctioned allowances, with the total number of allowances and the percentage of free allowances declining over time through 2050. 

For transportation, overall GHG emissions and future reductions are a function of vehicle fuel economy, fuel type, and vehicle use.  Fuel economy standards are not addressed in the Lieberman-Warner bill, but are being debated in the context of other legislation.  Funding for vehicle and fuel technology improvements could be a designated use of auction proceeds in the climate bill; however, vehicle use is not addressed at all in the current draft. 

Trends in vehicle use, as measured by vehicle-miles-traveled (VMT), have been steadily increasing nationally and are projected to continue to increase unless transportation policies and current development growth patterns change.  Growing Cooler, a new collaborative report on the connection between urban development and climate, estimates that growth in VMT, if uncurbed, would counteract many, if not all, greenhouse gas reductions prescribed by targets set in the Kyoto Protocol.

Overall, the bill as drafted raises at least three key questions for the transportation sector:  

1) How will refiners and importers respond to a cap on emissions for which they have limited control, unlike other more regulated sectors in the bill?

2) How might proceeds from proposed auctioning of emission allowances be used to reduce transportation-related GHG emissions?

3) Should the bill include policy and funding mechanisms to address vehicle use, as measured by total vehicle-miles traveled (VMT)?

Transportation accounts for about 28 percent of all U.S. GHG emissions, second only to electricity utilities which generate approximately 34 percent.

To review a copy of Growing Cooler: the Evidence on Urban Development and Climate Change, published by the Urban Land Institute, please visit:
http://www.uli.org/AM/Template.cfm?Section=Home&CONTENTID=104276&TEMPLATE=/CM/ContentDisplay.cfm

 House Committee Advances Bill for Energy Storage Systems  

The House Science and Technology Subcommittee on Energy and Environment recently moved forward with legislation focused on energy storage technologies and industrial energy efficiency research and development.  “The Energy Storage Technology Advancement Act of 2007” (H.R. 3776), passed and was referred by the House to the Senate Committee on Energy and Natural Resources.

The bill calls for research and development of competitive energy storage systems for stationary and vehicular applications-- both of which could provide significant economic and environmental benefits if achieved.  Demonstration projects are to be carried out by the Department of Energy (DOE). 

Major provisions of the bill include:

  • Basic research in areas including: materials design; materials synthesis and characterization; electrolytes; surface and interface dynamics; modeling and simulation; and thermal behavior and life degradation mechanisms.  The bill authorizes $50 million for each of the fiscal years 2009-2014.
  • Applied research in areas including: ultracapacitors; flywheels; batteries and battery systems (including flow batteries); compressed air energy systems; power conditioning electronics; manufacturing technologies for energy storage systems; thermal management systems; and hydrogen as an energy storage medium. $80 million is authorized for each of the fiscal years 2009-2014.
  • Transportation energy storage demonstrations in areas such as advanced vehicle battery technologies and related components, and new manufacturing technologies for these devices. The program will demonstrate one or more of the following:
    • Novel, high capacity, high efficiency energy storage, charging, and control systems, along with the collection of data on performance characteristics such as battery life, energy storage capacity, and power delivery capacity.
    • Advanced onboard energy management systems and highly efficient battery cooling systems, with, integration of such systems on a prototype vehicular platform, new technologies and processes that reduce manufacturing costs and, integration of advanced vehicle technologies with electricity distribution system and smart metering technology.
  • A program of research, development, and demonstration of secondary applications of energy storage devices following service in electric drive vehicles, and of technologies and processes for final recycling and disposal of those devices. $5 million is authorized for each of the fiscal years 2009 through 2014.
  • Six large-scale demonstrations of electricity storage to meet specific goals, such as integrating renewable energy technologies into electric power supply. Each of the following objectives need to be included in at least one of these technology demonstrations:
    • Energy storage to improve the feasibility of micro-grids or islanding, or the transmission and distribution capability to improve reliability in rural areas.
    • Integration of an energy storage system with self-healing circuits.
    • Use of energy storage to improve security to emergency response infrastructure.
    • Integration with a renewable energy production source, either at the source or away from the source.
    • Use of energy storage to provide ancillary services, such as frequency response or spinning reserve services, for grid management.
    • Advancement of power conversion systems to make them smarter, more efficient, able to communicate with other inverters, and able to control voltage.
    • Use of energy storage to optimize transmission and distribution operation and power quality, which could address overloaded lines and maintenance of transformers and substations.
    • Use of advanced energy storage for peak shaving by homes, businesses, or the grid.
    • Use of energy storage devices such as plug-in hybrid vehicles to fill up the night time valley for electricity demand to make better use of existing grid assets (Vehicle-to-Grid, V2G).
  • Cost sharing to be carried out in accordance with EPACT 2005.
  • $30 million to be authorized for each of the fiscal years 2009-2014.

For updates on the progress of H.R. 3776, please visit:
http://www.thomas.gov/cgi-bin/bdquery/z?d110:HR03776:@@@X

California Sues EPA Over Carbon Emissions Standards for Automobiles

California Attorney General Jerry Brown announced recently that the state has sued the U.S. Environmental Protection Agency (EPA) in an attempt to force the agency to decide whether to let California and 11 other states enforce stricter emissions standards for certain vehicles. 

California first asked the EPA to rule on whether the state could impose stricter regulations on emissions of greenhouse gases from cars, pick up trucks and SUVs in December of 2005.  Now 22 months later, the state is still committed to implementing a 2002 state law that would require automakers to begin making vehicles that emits significantly lower greenhouse gases by model year 2009. 

The law, which if implemented would result in a one-quarter reduction in emissions by 2030, can only take effect if the EPA grants California a waiver under the Clean Air Act.  Hearings held by the EPA this past summer regarding the state’s waiver request resulted in the EPA promising a decision by the end of the year, which the agency still intends to make, according to EPA spokeswoman Jennifer Wood.  In addition, the agency also plans to introduce new, comprehensive national standards for vehicle emissions.

According to state officials, Washington, Pennsylvania and Connecticut plan to join California in the lawsuit.  Although the federal government regulates national air quality rules, under the Clean Air Act, California has unique authority to pass its own standards—given EPA approval.  Other states may then abide by either the federal rules or California standards, if they are more stringent.

If California receives the waiver from EPA, eleven other states—Washington, Oregon, Maryland, Pennsylvania, New Jersey, New York, Connecticut, Rhode Island, Massachusetts, Vermont and Maine—are set to adopt its emissions standards.  Additionally, the governors of Arizona, New Mexico and Florida have made tentative commitments to implement California’s standards.

In opposition, the Association of International Automobile Manufacturers, which represents 14 foreign auto companies including Toyota, Honda and Nissan, will counter sue to block the standards from being adopted.  The organization argues that stricter emissions standards would increase vehicle sale prices and could force manufacturers to discontinue certain pick up and SUV models.

The Alliance of Automobile Manufacturers also opposes the EPA granting California a waiver, arguing there should be one federally regulated national standard for tailpipe emissions.

For more information from the Office of the Attorney General, see:    http://ag.ca.gov/newsalerts/release.php?id=1490

G.M. Announces New Independent Hybrid Research Center in China 

General Motors Corporation (GM) announced recently that it will build an advanced research center in Shanghai to develop hybrid technology.  GM already has a 1,300-employee research center in the city with its Chinese counterpart, the Shanghai Automotive Industry Corporation (SAIC).  The new, independently-owned facility is intended to pursue the most advanced vehicle engineering and development and could help GM maintain greater control over new technologies as opposed to research conducted jointly, as it is with SAIC.

A primary motivation for GM’s decision to pursue independent research in China is that the company’s sales there have increased to an estimated 1 million units this year alone, up from 20,000 in 1999.  Rick Wagoner, GM’s chairman and chief executive, believes that it is essential to do advanced hybrid technology research in China so that technological improvements can be quickly made to locally sold models.

In recent years, automakers in China have caused controversy by introducing vehicles that some consider identical to those produced by western auto companies.  However, there has been no accusation of a Chinese auto company replicating advanced western engine technology.  With these issues in mind, Wagoner does not think matters of intellectual property will be an issue for GM and that pursuing cutting-edge research in China will be a manageable risk as well as a prudent trade-off. 

The new research center will work on electric vehicle technology, including hybrid development and fuel cells, energy efficiency in the manufacturing process, and the use alternative fuels such as ethanol.  This could bode well for GM products in the Chinese market as the country’s powerful National Development and Reform Commission recently disclosed that it is drafting strict local content rules for alternative fuel vehicles to qualify for likely government subsidies.     

Other foreign automakers, including Volkswagen, Honda and Ford, have each announced plans to open research centers in China, although none have been as aggressive as GM in shifting technology to China. 

More information available on GM’s website at: http://www.gm.com/corporate/about/news/index.jsp?deep=press

EPA Certifies First E85 Conversion Kit for Gasoline Engines

A kit for converting conventional gasoline-fueled vehicles to run on fuels containing up to 85 percent ethanol (E85) has, for the first time, been certified by the U.S. Environmental Protection Agency (EPA) for use in select vehicle models.   The “Flex-Box Smart Kit” manufactured by Flex Fuel US has been developed for use on vehicles common to many police, taxi, and government fleets, such as the Ford Crown Victoria, Mercury Grand Marquis, and Lincoln Town Car using a Ford 4.6-liter engine.  Flex-Fuel US is also seeking and anticipating EPA approval for kits suitable for other makes and models of passenger vehicles, light trucks, and performance vehicles.

Fleet operators and individual car owners can have these conversion kits installed at AAMCO Transmission Centers, as part of their new “Eco-green Auto Service” program. AAMCO has more than 700 locations nationwide. 

The compact conversion unit mounts in the engine compartment and controls fuel injection levels by continuously monitoring emissions and engine performance.  The unit adjusts the fuel mix to allow the engine to operate at optimal performance regardless of the fuel blend in the tank.

While other E85 conversion options are available, they would likely be illegal according to the EPA.   Certification by the agency requires testing of the emissions profile after the conversion has been installed, to ensure compliance with federal air quality regulations and emissions standards.

Converting a conventional vehicle to a flexible-fuel vehicle yields several benefits, including:

  • An approximate 15 percent  per gallon fuel cost saving over gasoline
  • Increased horsepower
  • Support for domestically-source fuels and enhanced energy security
  • Potential reductions in overall greenhouse gas emissions

A copy of EPA’s Updated Certification for Alternative Fuel Converters is available at:  http://www.epa.gov/otaq/cert/dearmfr/cisd0602.pdf

2008 Guide Rates Most Least-Efficient Vehicles 

Earlier this year, the U.S. Environmental Protection Agency (EPA) announced it was finalizing updated fuel economy standards for all new cars and light trucks sold in the United States beginning in 2008.  In support of these new methods, EPA and the U.S. Department of Energy (DOE) have released the 2008 Fuel Economy Guide.  

In an effort to better reflect current driving conditions and habits and ultimately improve fuel economy, new test methods have been designed which take into account factors such as higher average driving speeds, quicker acceleration, the impacts of air-conditioning use during vehicle operation and how vehicles are affected during operation in cold weather.  As a result, most vehicles—fuel-efficient gas-electric hybrids included—will receive lower fuel economy estimates. 

Among 2008 models, the Toyota Prius heads the list as “most fuel-efficient” with a 48 miles per gallon (mpg) city and 45 mpg highway rating, resulting in a combined 46 mpg rating overall.  Honda’s Hybrid Civic is second on the list with a combined fuel efficiency rating of 42 mpg.  The Nissan Altima Hybrid ranks third with a combined 34 mpg rating.  Toyota, Ford, Mazda and Mercury share both the fourth and fifth spots on the list with models that achieve a combined overall fuel efficiency rating of between 32 and 34 mpg.      

Ranked lowest in the 2008 Fuel Economy Guide are models commonly known to offer poor gas mileage.  For vehicles weighing in at less than 8,500 pounds, including models by Lamborghini, Bentley, Mercedes-Benz, Ferrari and Jeep, fuel efficiency is rated as low as 11 mpg city and 14 mpg highway, for a combined rating of only 13 mpg overall.  

EPA Reports Highlight Fuel Economy Trends

Foreign and U.S. Model Ratings Converge

A new report by the U.S. Environmental Protection Agency (EPA) highlights a 32-year trend among major car manufacturers:  foreign-based companies such as Toyota and Honda have seen lower average fuel economy for the cars they sell, as these companies have diversified their product lines.  Major domestic manufacturers, meanwhile, have improved their fleet averages over the past 32 years. 

Toyota and Honda still top the list for average fleet fuel economy among major car companies, at 29 and 28.7 miles per gallon (mpg), respectively (down from 35.5 mpg for Honda in 1977).  But the leader board varies and the differences become less significant when companies are viewed side-by-side by different vehicle weight classes, according to the report, Light-Duty Automotive Technology and Fuel Economy Trends: 1975 Through 2007.

Although GM, Ford and Chrysler improved their total fleet averages over the past 32 years, those averages are still the lowest of the major groups.  However, GM and Toyota turned in relatively equivalent average new car fuel economy results for vehicles in, for example, the 2,750-3,000 pound weight class for much of the period—until Toyota introduced the Prius in 2002 and strong sales improved their average in that class.
For heavier vehicles between 6,000-6,500 pounds, however, GM comes out on top in 2007 with an expected 20.1 mpg average—the best of any automaker.

Overall, the unadjusted laboratory results for model year 2007 for the major automakers by weight category show increasing convergence in average fuel economy with the increasing size of the vehicle.

Sales Increase for Higher and Lower Fuel-Efficient Vehicles

The same report found that U.S. sales for automobiles with relatively high fuel economy ratings have increased as a percentage of total sales since 2000; however, the percentage of sales for vehicles at the lower end of the range has also increased comparably.

Sales of vehicles rated to get from 25 to 30 miles per gallon (mpg) climbed 5.1 percentage points from 10.5 percent in 2000 to 15.6 percent in 2007.  For the same period, however, sales of vehicles in the 15-20 mpg range have also increased by 3.7 percentage points, from 38.1 percent to 41.8 percent.  This low fuel economy category continues to represent the largest percentage of projected new vehicle sales in the United States for 2007.

Accordingly, sales for vehicles with fuel economy ratings in the in-between range, from 20-25 miles per gallon, dropped nine percentage points, from 43.3 percent to 34.3 percent in 2007.  Since 1992, average fuel economy has been relatively constant, ranging from 20.6 to 21.4 mpg. 

U.S. average fleet fuel economy actually peaked back in 1987 at 22.1 mpg.

Improved Agricultural Management Key to World Biodiesel Potential

A University of Wisconsin (UW) report estimates that improvements in tropical oilseed agriculture could multiply the potential for global biodiesel production 12-fold.  The study by UW’s Nelson Institute for Environmental Studies evaluated production volumes and prices across 226 countries and territories and estimated current worldwide production potential at 51 billion liters or 13.5 billion U.S. gallons from 119 countries.  That volume could meet roughly 4-5 percent of the world’s existing demand for petroleum diesel.

Research on yields from well-managed agricultural land, however, suggests that global biodiesel volumes could reach more than 600 billion liters per year, distributed over 106 countries, or more than 50 percent of current diesel demand.  This 12-fold increase would be spread over several crop types, but mostly attributed to tropical oilseeds—namely palm and coconut—for which current yields are considerably below their estimated well-managed yields.

Even under conservative estimates for increased demand in annual vegetable oil demand for food purposes, more than 400 billion liters could be produced on remaining agricultural land growing fuel crops.  Malaysia and Indonesia would together account for almost 75 percent of the potential volumes from increased yields.

There is, however, serious risk of deforestation in these two countries due to the current practice of clear-cutting to increase palm production.  Agricultural intensification associated with boosting yields can introduce other problems including pressure on fresh water supplies, nutrient runoff, and soil degradation.  But yield increases through improved management could also alleviate pressure to clear-cut tropical forests.  

The study cautions that biodiesel must be developed in a responsible manner, noting that advanced production techniques such as optimized crop selection, the growing of dedicated energy crops such as jatropha on marginal lands, and the eventual use of algae-based oils that do not compete for fresh water or farmland are all important to expanding biodiesel production.

The study ranked Malaysia, Thailand, Colombia, Uruguay and Ghana as the developing nations most likely to attract biodiesel investment, not only because of their strong agricultural industries, but also due to their relative safety and stability and lack of debt, among other economic factors.  Of all the vegetable oils and animal fats examined in the study, soybean and palm oil were by far the most common. The world’s top five soybean and palm oil producers—Malaysia, Indonesia, Argentina, the United States and Brazil—accounted for 80 percent of the potential global biodiesel production, the researchers found.

A copy of the University of Wisconsin report is available online at:  http://www.sage.wisc.edu/energy/Biodiesel_Manuscript.pdf

UPS Expands Investment in Cleaner, Lower-Carbon Fuel Vehicles

Having already invested more than $15 million in alternative fuel vehicles, UPS is expanding its fleet of delivery trucks running on compressed natural gas (CNG) and Liquefied Petroleum Gas (LPG, or propane).  The company has also launched an initiative to use fuel containing 5 percent biodiesel (B5) in its ground support vehicles at its air service hub in Louisville, Kentucky.

UPS will be taking delivery on 167 CNG trucks and 139 LPG trucks in North America, expanding the global alternative-fuel fleet to 1,629 vehicles—the largest such private fleet in the transportation industry.  They will join more than 800 CNG trucks already operating in the United States and nearly 600 propane trucks already operating in Canada and Mexico.  The company’s North American fleet includes CNG, liquefied natural gas, propane and electric and hybrid electric vehicles. The company also is working with the U.S. Environmental Protection Agency (EPA) to develop and deploy a hydraulic hybrid delivery vehicle.

While there’s a great deal of interest in the research we’re doing with new types of hybrids, 70 years of testing alternative fuel vehicles has taught us there are multiple technologies that can effectively reduce our dependence on fossil fuels as well as our carbon footprint. Adding this many propane and CNG vehicles is going to have a very positive impact.—Robert Hall, UPS director of vehicle engineering

CNG and LPG vehicles are estimated to provide these benefits over comparable gasoline-powered vehicles:

  • Reduce carbon monoxide emissions 90-97 percent
  • Reduce carbon dioxide emissions 25 percent
  • Reduce nitrogen oxide emissions 35-60 percent
  • Potentially reduce non-methane hydrocarbon emissions 50-75 percent
  • Emit fewer toxic and carcinogenic pollutants
  • Emit little or no particulate matter
  • Eliminate evaporative emissions

The biodiesel initiative in Louisville is being launched with the support of a $515,000 federal grant that is helping offset some of the cost of building a fuel infrastructure at the airport.  The infrastructure will provide a B5 biodiesel blend of fuel to run 366 ground support vehicles starting early next year.

2007 Transportation Finance Summit
December 2- 4, 2007
Washington, DC

Hosted by the International Bridge, Tunnel, and Turnpike Association, this summit, which will kick off with a debate on funding America’s highway transportation system, is designed to explore congestion management, pricing, innovative institutional funding models, indexing tolls and fuel taxes, alternatives to the gas tax, and the technological underpinnings of new funding models.

For more information, please visit http://www.ibtta.org/Events/content.cfm?ItemNumber=2925 or phone 202-659-4620.

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@eesi.org or call 202-662-1883. More information can be mailed to 122 C St., NW, Suite 630, Washington, DC 20001.

Clean Motion is a free monthly periodical providing an overview of current program and policy activities related to the deployment of low-polluting, energy-efficient transportation in the United States. Topics include technology developments, clean vehicle deployment, energy consumption, the environment, government policy, and public health. 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. 

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