New York’s 10,000 Black Cars to Go Hybrid

1 March 2008

New York City Mayor Michael R. Bloomberg announced that the Taxi and Limousine Commission (TLC) will require black cars—the large sedans (often Lincoln Town Cars) that primarily service corporate clients—to increase fuel efficiency standards to a level currently achievable only by using hybrid technology.

In December, the TLC voted unanimously to approve regulations that will require all yellow taxis licensed after 1 October 2008, to meet fuel efficiency standards currently only achievable through the use of hybrid technology. Black cars currently release 272,000 tons of CO₂ equivalents annually, which make up 2% of the City’s transportation-related emissions. Under the new standards, emissions from black cars will be cut in half.

Currently, black cars average 12-15 mph. The TLC will require fuel efficiency standards for new licensed black car vehicles of 25 mpg in 2009 and 30 mpg in 2010. Many black cars line up, idling in front of office buildings in Midtown and Lower Manhattan awaiting customers. With hybrid powertrains, the engines will shut down instead. Also included in the proposed rule change is a requirement for vehicle retirement. The TLC currently does not set a vehicle retirement age for for-hire vehicles like it does for the yellow taxis. There will be a retirement phase-in cycle that will ensure almost all vehicles associated with black car bases are more fuel-efficient by 2013.

To help drivers finance the down payment associated with buying a new car, the City has worked with partners in the financial sector, auto dealers, and black car fleets to develop a range of solutions that will finance the higher down payment.

Over the past several months, the companies that use black cars have been meeting with drivers, base operators, car dealerships, and financing groups to figure out the best way to achieve a greener fleet. In the end, they asked the City to take a regulatory approach. We’ve come up with a proposal similar to the new yellow cab standards, which the TLC board approved unanimously last December. Between yellow taxis and black cars, more than 23,000 TLC regulated cars will be required to be more efficient. This will allow us to achieve substantial emissions reductions for our City—and keep us moving towards our long-term goal of creating a truly sustainable City.

—Mayor Bloomberg

Hybrid cars will save owner-operator drivers upwards of $5,000 per year in gasoline expenses—approximately 50% of their current fuel costs. These savings will allow drivers to cover, in just one year, the additional cost of purchasing a new hybrid car over the currently used Lincoln Town Car. As part of PlaNYC, the City proposed a State law to waive the City portion of the sales tax for vehicles that meet the EPA Elite standards for energy efficient vehicles, and the City is looking forward to working with State Legislators this year to enact that proposal. The City is also working with the Partnership for New York City and several financial institutions on a program to provide financing.

In addition to an Investment Fund spearheaded by the Partnership for New York City, SmartTransportation.org and Deutsche Bank, Lehman Brothers has partnered with Executive Transportation Group (ETG), the largest black car supplier in New York, to jointly fund a first-of-its-kind lending company, Green Car Funding Corp. to provide low interest loans to ETG black car owner operators to purchase new hybrid vehicles.

Through extensive consultation with users, fleets, and drivers—including demonstrations of the new vehicle types&madsh;the Mayor’s Office of Long-term Planning and Sustainability and the TLC have identified several efficient vehicle models that will have widespread acceptance, including: Toyota Camry Hybrid, 33 mpg (city); Toyota Highlander Hybrid, 27 mpg (city); Nissan Altima Hybrid, 35 mpg (city); and Mercury Mariner Hybrid FWD, 34 mpg (city). In addition, other models may include: Lexus Rx400h AWD, Ford Escape Hybrid AWD, and Toyota Prius.

Outreach to dealerships indicates that there will be an adequate supply of vehicles. In addition, two networks of dealers of the most promising vehicles&mash;Best Ford Taxi and Hudson Toyota / Penske Automotive Group—have committed to making financing packages available to black car drivers. TLC will not penalize drivers who show proof that they have ordered a vehicle that meets the standard, but the vehicle has not yet arrived.

The plan to improve the fuel efficiency of the 10,000 black car fleet was envisioned as part of the Mayor’s PlaNYC 2030, a set of 127 initiatives aimed at reducing New York’s carbon emissions and meeting the challenges of the City’s growing population. (Earlier post.)