Policy
[Due to the increasing size of the archives, each topic page now contains only the prior 365 days of content. Access to older stories is now solely through the Monthly Archive pages or the site search function.]
Smith Electric Vehicles Shortlisted for UK £50M Low Carbon Vehicle Procurement Program
November 28, 2008
Smith Electric Vehicles (SEV) is one of a small group of van manufacturers to reach the second stage of the UK’s £50 million (US$76.5 million) Low Carbon Vehicle Procurement Program (LCVPP). The scheme, funded by the Department for Transport and operated by Cenex (Centre of Excellence for low carbon and fuel cell technologies), aims to jump-start sales of low-carbon vehicles for use in public sector fleets. (Earlier post.)
The government plans to use the majority of program funding in the initial phase on the procurement of lower-carbon vans. The Department for Transport says that its consultation and research suggests that development of such a model for use in the public sector fleets could have a significant wider market impact. It will also conduct smaller procurement of all-electric vans, a lower-carbon minibus, and potentially a small demonstration fleet of plug-in hybrid passenger cars.
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British Columbia Joins California Challenge of Denial of Automotive GHG Waiver; Province Converting 34 Vehicles to Plug-in Electrics
November 27, 2008
The Province of British Columbia, Canada (BC) has filed a legal brief with the US Court of Appeals for the District of Columbia Circuit in support of California’s legal challenge to the Environmental Protection Agency (EPA), which denied a waiver to implement the AB 1493 (Pavley) greenhouse gas emissions standard for vehicles. (Earlier post.)
BC introduced legislation in April that allows adoption of California greenhouse gas emission standards for vehicles. The California model will achieve greater GHG emission reductions than the proposed US federal fuel economy standards that have also been committed to by Canada as a minimum starting in 2011. An analysis by the staff of the California Air Resources Board concluded that implementing the Pavley rules in Canada would result in a cumulative total of 87 MMT of GHG reductions by calendar year 2020, compared to 58 MMT of GHG reductions achieved by the proposed federal standards.(Earlier post.)
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European Commission Proposes €200B Economic Recovery Plan; €5B Green Cars Initiative
November 26, 2008
The European Commission presented a €200 billion (US$257 billion) Recovery Plan—equivalent to 1.5% of European GDP—to pull Europe’s economy out of its current crisis. One of the elements of the plan is a €5 billion (US$6.4 billion) “European green cars initiative”.
The plan will use a wide range of policies and instruments. The co-ordinated fiscal stimulus of around €200 billion comprises around €170 billion (1.2% of GDP) from Member States, and around €30 billion (0.3% of GDP) as EU level action within the EU budget and from the European Investment Bank (EIB). The stimulus will stay within the Stability and Growth Pact, while making use of the full flexibility offered by the Pact.
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U-M Researchers Developing Interactive Tool to Assess Viability of Transportation GHG Reduction Technologies and Policies; PHEVs as Test Case
November 25, 2008
Researchers at the University of Michigan (U-M) are launching a project to develop a Web-based, interactive modeling tool that can be used to analyze the likely impact and potential viability of proposed technologies and policies for reducing greenhouse gas emissions from the light-duty vehicle sector. As a test case for the development of the tool, the researchers are using President-elect Barack Obama’s proposal to put a million US-made plug-in hybrid electric vehicles (PHEVs) getting 150 mpg on the road by 2015.
The U-M Michigan Memorial Phoenix Energy Institute is providing $365,000 in seed money for the project, which is an adjunct to a four-university, $1.9-million project funded though the National Science Foundation MUSES program (Materials Use: Science, Engineering and Society). The goal of the MUSES project is to produce modeling tools and methods that can be used to analyze changes in materials flows that would result from policy instruments aimed at reducing GHG emissions from passenger cars and light trucks. (Earlier post.)
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Report Outlines Transport Policies for Cutting GHG Emissions from UK Transport by 26% by 2020
November 24, 2008
A new research report recommends a comprehensive package of transport policies that could reduce UK transport sector greenhouse gas emissions by 26% by 2020 from 2006 levels. The research comes as the Climate Change Bill passes into law and the Committee on Climate Change prepares to release its first proposal for UK carbon budgets up to 2022 on 1 December.
Current government policies, including intensive improvements to vehicle efficiency, will achieve less than a 5% reduction in CO2 on 1990 levels by 2020, according to the report, “A low carbon transport policy for the UK.” The report was prepared by Keith Buchan of Metropolitan Transport Research Unit (MTRU) and sponsored by Campaign for Better Transport.
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US Emergency Bridge Loan Package to Automakers Would Tap $25B Retooling Fund
November 21, 2008
Under a proposed compromise legislative package, the $25 billion emergency bridge loans to the auto industry—if approved by Congress and signed by the President—would tap into the $25 billion in funds already approved under Section 136 of the Energy Independence and Security Act of 2007 (P.L. 110-140) for retooling older factories to produce more fuel-efficient advanced vehicles. (Earlier post.)
Earlier in November, Democrats in the US House of Representatives sought to provide funding for emergency loans via the $700 billion Troubled Assets Relief Program (TARP) targeted at the financial sector. (Earlier post.) In the face of strong opposition to that from the White House, Congress developed a new bi-partisan package drawing from the Section 136 funds.
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SF Bay Area Mayors Announce Coordinated Policies to Accelerate Establishment of EV Infrastructure; Better Place to Enter US Market in California
November 20, 2008
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| Better Place introduced a second EV prototype to work with its infrastructure: the Better Place Rogue, based on the Nissan Rogue crossover SUV. Click to enlarge. |
San Francisco Mayor Gavin Newsom, San Jose Mayor Chuck Reed and Oakland Mayor Ron Dellums announced a nine-point policy plan to establish a pervasive infrastructure to transform the SF Bay Area into the “Electric Vehicle (EV) Capital of the US”. In conjunction with the news, Better Place announced that it would enter the US market with California as its first state, beginning in the Bay Area.
Commercial availability of electric cars is targeted to begin in 2012, and Better Place estimates its network investment in the Bay Area will total $1 billion when the system is fully deployed. The three Mayors said they welcomed Better Place’s announcement and anticipate many other EV companies will focus on the Bay Area as a top-priority market.
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EPA Raises Renewable Fuel Requirement to 10.21% for 2009; 11.1B Gallons
November 19, 2008
The US Environmental Protection Agency (EPA) raised the 2009 Renewable Fuel Standard to 10.21% to ensure that at least 11.1 billion gallons of renewable fuels be blended into transportation gasoline. This standard is used by obligated parties—refiners, importers and blenders (other than oxygen blenders)—to calculate their renewable volume obligation. The EPA expects the 11.1 billion gallons of renewable fuel required in 2009 ultimately to include approximately 0.5 billion gallons of biodiesel and renewable diesel.
The 2009 standard marks a 23.3% increase by volume of the 2008 RFS of 9 billion gallons, but a 31.6% increase by percentage volume from 7.76% in 2008. The larger relative increase is due to expectations of lower fuel consumption in 2009.
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Study Examines Short-Term Economic Impact of Worst-Case Scenarios for Contraction of Detroit Three
November 18, 2008
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| Projected job losses—direct, indirect and spin-off—under two contraction scenarios. Click to enlarge. Data: CAR |
Researchers at the Center for Automotive Research (CAR) in Ann Arbor, Michigan, estimated the short-term (1-3 years) impact on the US economy would be substantial were all—or even half—of the three Detroit-based automotive manufacturers’ US facilities to cease operations. CAR has carried out the majority of national level automotive economic contribution studies completed in the United States since 1992.
The immediate impact to the economy would be felt well beyond the Detroit Three companies, negatively impacting the US operations of international manufacturers and suppliers as well. Nearly 3 million jobs—239,341 jobs at the Detroit Three; 973,969 indirect/supplier jobs; and more than 1.7 million spin-off (expenditure-induced) jobs—would be lost in the first year if there is a 100% reduction in Detroit Three US operations, according to the study.
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IEA Calls for “Global Energy Revolution” Despite Economic Crisis
November 12, 2008
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| World primary energy demand in WEO 2008 Reference Scenario. Click to enlarge. |
In his release of the IEA’s World Energy Outlook (WEO) 2008—the latest edition of the International Energy Agency’s annual publication—IEA Executive Director Nobuo Tanaka said that the report highlights that current trends in energy supply and consumption are “patently unsustainable, environmentally, economically and socially. They can and must be altered.”
In the WEO-2008 Reference Scenario, which assumes no new government policies, world primary energy demand grows by 1.6% per year on average between 2006 and 2030—an increase of 45%. This is slower than projected last year, mainly due to the impact of the economic slowdown, prospects for higher energy prices and some new policy initiatives.
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US Department of Energy Issues Rules for $25B Automaker Loan Program
November 06, 2008
The US Department of Energy (DOE) issued an Interim Final Rule for implementing the $25-billion retooling loan program authorized by EISA 2007 and funded by the FY09 Continuing Resolution. (Earlier post.)
The program is to provide direct loans to eligible applicants for the costs of reequipping, expanding, and establishing manufacturing facilities in the United States to produce advanced technology vehicles, and components for such vehicles. These vehicles must provide “meaningful” improvements in fuel economy performance, defined as at least a 25% improvement in fuel economy over a baseline established for vehicles of a given class.
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Honda: New US CAFE is a “Game Changer”
November 02, 2008
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| Historic CAFE fuel economy (unadjusted for EPA rating) and projected MY 2011-2015 targets. Click to enlarge. Data: EPA, Honda |
American Honda Motors (AHM) views the new CAFE regulations under development as a “game changer” both in terms of how fuel economy is determined and in likely responses by automakers. Honda supports the CAFE rules as “good energy policy”, said John German, AHM’s Manager, Environmental Policy Analysis, in a recent briefing. However, he noted, the new rules will be challenging for the auto industry, as the percentage annual increases in fuel economy are triple the historic rate for the US market, and twice the actual rate of increase in Japan and in Europe over the last 10-15 years.
The structure of the new rules will likely result in higher new vehicle prices, German said. Because the rules also now include societal benefit—including CO2 reduction—as well as direct benefit in the analysis of technology potential, the cost of the new technology may be higher than the customer’s perceived benefit value, he noted.
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Study: Very Long Term Strategy Needed for Reducing Greenhouse Gas Emissions
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| Implications of the G8 50% policy. Top panel shows historical and future emissions. The middle and bottom panels show the resulting changes in concentrations and temperature respectively. Click to enlarge. Credit: IOP |
A team of scientists in the UK have combined the outcomes of proposed policies by the G8 countries and the UK Government’s Stern Review for greenhouse gas emissions reductions with the latest knowledge of climate change feedbacks relating to the carbon cycle (the way carbon moves between the oceans, atmosphere and land).
Their findings, published in the journal Environmental Research Letters, show that short-term cuts alone will not solve the problem and that policy makers need to plan for hundreds of years into the future.
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Nearly All Gasoline in Maine Now E10, Without State Mandate
November 01, 2008
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| Current percentage use of E10 and projected use for 2010. Click to enlarge. Source: KinderMorgan |
Nearly all gasoline now distributed in the state of Maine is now an E10 blend (10% ethanol), according to the state’s Department of Environmental Protection (DEP). The introduction of ethanol-blended gasoline in the market is not a state requirement, but resulted from a combination of state and federal regulations, state and federal tax incentives and current fuel market forces, DEP says.
As of August, 39 states provide incentives promoting ethanol production and use, according to the Pew Center on Global Climate Change. Twelve have also introduced their own Renewable Fuels Standard (RFS); of these, eight mandate E10 and one (Minnesota) has an E20 by 2013 requirement. Nationwide, however, the fuel industry is rapidly closing in on an almost universal use of E10, and should reach that within several years, given a combination of factors.
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European Automakers Look for a “Supportive Framework” Including €40B in Low-Interest Loans
October 30, 2008
The European automotive industry needs a supportive framework to secure its future, according to a mid-term review of CARS21 (Competitive Automotive Regulatory System for the 21st Century) held at the European Commission in Brussels. Hosted by European Commission Vice-President Guenter Verheugen and with the participation of five automaker CEOs, national ministers and other stakeholders, the meeting reviewed progress since the start of CARS21 in 2005, and looked ahead to 2020 and beyond.
The meeting concluded that such a supportive framework should consist of four components: “better regulation”; a €40 billion (US$51.7 billion) low-interest loans package to support the development and deployment of fuel-efficient technologies (earlier post); market incentives; and favorable, reciprocal trade relations. Following the meeting, Verheugen told a news conference that the European Investment Bank could help the car industry with low-interest loans.
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New UK £100M Low-Carbon Vehicle Program Contains Funding for EV Demonstration Projects and Development
October 27, 2008
The UK government is putting £100 million (US$157 million) into a new £200-million public-private investment program to speed up the introduction of new low carbon vehicles onto Britain’s roads. (Earlier post.) The UK’s Technology Strategy Board will manage the five-year program through its Low Carbon Vehicles Innovation Platform, and it will be guided by an industry-led advisory panel.
Demonstration project. Included in that commitment, as outlined by UK Transport Secretary Geoff Hoon at an international experts meeting convened in the UK to explore the challenges of bringing electric vehicles to market, is an ultra low-carbon vehicle demonstration competition that aims to see up to 100 new innovative cars on the road in several locations around the UK by the end of 2009.
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DLR Outlines Approaches for 40% Reduction in Global Light-Duty Vehicle GHG Emissions by 2050
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| Well-to-wheel CO2 emissions of light duty vehicles in the reference and energy [r]evolution scenarios from 2000 to 2050. Click to enlarge. |
A combination of higher efficiency vehicle technologies, a major switch to grid-connected electric vehicles and incentives for travellers to save CO2 could result in a reduction of well-to-wheel greenhouse gas (GHG) emissions in the global light-duty vehicle sector in 2050 by roughly 25% compared to 1990 and 40% compared to 2005, according to a new report produced by the European Renewable Energy Council (EREC) and Greenpeace International.
Total LDV sector energy consumption in total is reduced by 23% in 2050 compared to 2005, in spite of tremendous increases in some world regions. Even with the aggressive focus on new technologies and demand reduction, 74% of the final energy used in cars will still come from fossil fuel sources, 70% from gasoline and diesel, according to the findings. Renewable electricity covers 19% of total car energy demand, biofuels cover 5% and hydrogen 2%.
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Europe Incorporates Aviation into EU Greenhouse Gas Trading System as of 2012
October 26, 2008
The European Council on Friday adopted a directive (doc. 3657/08) that includes aviation activities in the EU greenhouse gas emission allowance trading system (ETS). As of 1 January 2012, all flights arriving at or departing from an EU airport will be included in the scheme.
Operators from all states providing such flights will therefore be included, regardless of whether they are based in the EU. US-based carriers flying to and from Europe, for example, must participate in the ETS. In this context, the EU considers that the new directive is only a first step towards its final goal of a global sectoral agreement concerning the reduction of greenhouse gas emissions from aviation.
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ARB Publishes Latest Draft of New Regulations for In-Use Heavy-Duty Trucks
October 24, 2008
The California Air Resources Board (ARB) published for public comment its latest draft version of a new regulation that, if adopted at the Board’s 11 December hearing, will further reduce emissions from the approximately one million in-use heavy-duty diesel trucks that operate in California beginning in 2010. (Earlier post.)
The regulation, which originates from the board’s diesel program, is targeted at further reductions in NOx and PM emissions, and will require truck owners to install diesel PM filters on their rigs starting in 2010, with nearly all vehicles upgraded by 2014. Owners must also turn over engines older than the 2010 equivalent to cleaner engines according to a staggered implementation schedule between 2012 and 2022.
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Biofuel Companies Question ARB’s Inclusion of Indirect Effects in Low Carbon Fuel Standard
More than two-dozen advanced biofuel companies, joined by researchers and investors under the aegis of the New Fuels Alliance, submitted a letter to the California Air Resources Board (ARB) questioning ARB’s intent to include indirect land use change (ILUC)—or any kind of indirect effects enforcement against biofuels—as part of the agency’s Draft Regulation for the California Low Carbon Fuel Standard (LCFS) unveiled last week in Sacramento. (Earlier post.)
Signed by 25 biofuel company executives and CEOs, investor Vinod Khosla, and Dr. Frances H. Arnold, the letter notes that the biofuels industry generally supports indirect effects research, including its subset indirect land use change, but warns that enforcing indirect effects prematurely or in a piecemeal way would be catastrophic for advanced biofuel development.
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California ARB to Hold Public Meeting on Feebate Program for New Vehicle GHG Reduction
October 22, 2008
The California Air Resources Board (ARB) is holding a public consultation meeting to discuss ARB’s proposed research contract titled “Potential Design, Implementation, and Benefits of a Feebate Program for New Passenger Vehicles in California” at the CalEPA Headquarters Building, in Sacramento, California, 5 November.
As described in the Proposed Scoping Plan (earlier post), ARB is commissioning a study to analyze the implementation of feebates for new vehicles in California both in place of and in addition to the Pavley (AB1493, greenhouse gas emissions) standards. The study will assess elements of program design including fee and rebate levels, point of regulation, implementation strategy, consumer response, and interaction with other AB 32 programs.
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Wisconsin Awards $7.3 Million in Biofuels, Clean Energy Funding
October 21, 2008
The state of Wisconsin recently awarded $7.3 million in grants and loans from the Wisconsin Energy Independence Fund (WEIF) for research and development and commercialization or adoption of new energy technologies, including biofuel and renewable hydrocarbon production.
The Wisconsin Energy Independence Fund is part of Clean Energy Wisconsin, Governor Jim Doyle’s strategy for promoting renewable energy, creating new jobs, increasing energy security and efficiency, and improving the environment. The Governor’s plans include generating 25% of electricity and 25% of transportation fuels from renewable sources by the year 2025; and capturing 10% of the market share for renewable energy and bioproducts. Funded fuels and transportation projects include:
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Study Finds That Aggressive Combination of Land Use, Enhanced Transit and Travel Pricing Show a Median 14.5% Reduction in Vehicle Kilometers Traveled for 10 Year Time Horizon
October 17, 2008
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| Box plots of combined policy VKT reductions by time horizon. Click to enlarge. Source: Rodier (2008) |
A review of modeling literature on land use, transit and auto pricing policies designed to reduce vehicle kilometers traveled (VKT) found that an aggressive combination of land-use, enhanced transit, and pricing policies compared to a business-as-usual scenario can reduce VKT for a ten-year time horizon by a median 14.5%. Over a 40-year time horizon, the median decrease is 24.1%.
In the study, Dr. Caroline Rodier at UC Berkeley’s Transportation Sustainability Research Center reviewed more than 20 modeling studies from California, other states and Europe. The California Air Resources Board references the study in its Proposed Scoping Plan for greenhouse gas reductions. (Earlier post.)
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California Air Resources Board Releases Proposed Scoping Plan for GHG Reductions; Increasing Importance of Land Use and Regional Transit Policies
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| Potential impacts of land-use and transit strategies on greenhouse gas emissions in California. Click to enlarge. Source: ARB, Rodier (2008) |
The California Air Resources Board (ARB) released its proposed Scoping Plan to reduce California’s greenhouse gas (GHG) emissions to 1990 levels by 2020. In June, ARB had released a discussion draft version. (Earlier post.) The final proposed plan released reflects additional analysis, and public input that ARB has received over the past several months. The plan is slated to go before the Board for approval at its December meeting.
Development of the Scoping Plan is a central requirement of AB 32, the Global Warming Solutions Act of 2006. In 2007, ARB established a 2020 GHG target of 427 MMTCO2e, requiring a reduction of 169 MMTCO2e—approximately 30%—from the state’s projected 2020 of 596 MMTCO2e in a business-as-usual scenario.
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UK Throttles Back on Biofuels; More Funding to Study Algae and Pyrolysis
October 16, 2008
UK Transport Minister Andrew Adonis outlined plans to take a more cautious approach to biofuels, as part of the Government’s response to concerns about the indirect environmental and social impacts of producing them.
Adonis published a consultation taking forward key findings from the Gallagher Review (earlier post), including the proposal that the rate of increase of the Renewable Transport Fuel Obligation (RTFO) be slowed to reach 5% in 2013-14 rather than in 2010-11. At the same time he dedicated a further £6 million (US$10.3 million) to research being conducted by the Carbon Trust to accelerate the development of advanced sustainable biofuels technologies.
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NHTSA Releases Final EIS on New Fuel Economy Rules With Alternative Scenarios; Most Aggressive Reaches 42 MPG by 2015
October 13, 2008
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| The NHTSA FEIS concludes that the most extreme technology scenarios combined with higher economic inputs could deliver or beat the 2020 CAFE target by 2015. Click to enlarge. |
The National Highway Traffic Safety Administration (NHTSA) has released the final environmental impact statement (FEIS) on the new CAFE rules for light-duty vehicles from model years 2011 to 2015. This period represents the first stage of a series of CAFE increases that are to result in a minimum new vehicle fleet average of 35 mpg by 2020.
Under Council on Environmental Quality (CEQ) National Environmental Policy Act (NEPA) regulations, NHTSA must compare the potential environmental impacts of its proposed action and a reasonable range of alternatives. In fulfillment of this requirement, NHTSA analyzed the impacts of six “action” alternatives and the impacts that would be expected if NHTSA imposed no new requirements (the No Action Alternative).
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California ARB Posts Draft Regulation for Low Carbon Fuel Standard
October 11, 2008
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| Proposed compliance schedule for gasoline and diesel fuels and substitutes. Click to enlarge. |
The staff of the California Air Resources Board has posted the Draft Regulation for the California Low Carbon Fuel Standard (LCFS) which contains the latest staff proposals on the regulatory approach following the March 2008 concept outline. (Earlier post.) ARB is seeking comments on this document, which will be discussed during the LCFS workshop on 16 October 2008, in Sacramento, California.
The draft LCFS maps out a 10.5% reduction in carbon intensity for gasoline or fuels used to substitute for gasoline from 2010 to 2020 (from 96.7 gCO2e/MJ to 86.5 gCO2e/MJ) and a 10% reduction in the carbon intensity of diesel or diesel substitutes (from 95.8 gCO2e/MJ to 86.2 gCO2e/MJ).
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USDA & DOE Release National Biofuels Action Plan; UN FAO Report Calls For Review of Biofuels Policies
October 07, 2008
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| NBAP top-level advanced biofuels commercialization timeline. Click to enlarge. |
The US Departments of Agriculture (USDA) and Energy (DOE) released the National Biofuels Action Plan (NBAP), an interagency plan detailing the collaborative efforts of Federal agencies to accelerate the development of a sustainable biofuels industry.
Separately, in a new edition of its annual publication The State of Food and Agriculture (SOFA) 2008, the UN Food and Agriculture Organization (FAO) called for an urgent review of biofuel policies and subsidies to preserve the goal of world food security, protect poor farmers, promote broad-based rural development and ensure environmental sustainability.
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Biofuels Accounted for 2.6% of UK Road Fuel in First Reporting Quarter
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| Biodiesel accounted for 84% of the renewable road fuel in the UK in the first reporting quarter. Click to enlarge. Source: RFA |
The Renewable Fuels Agency (RFA), the UK’s independent sustainable fuels regulator, released its first interim quarterly report which includes disclosure of company performance on the supply of biofuels under the Renewable Transport Fuel Obligation (RTFO).
In the year to April 2009, fossil fuel companies are obliged to supply 2.5% biofuel in UK road fuel. Biofuels accounted for 2.61% in the first quarter. More biodiesel (84%) has been supplied than bioethanol (16%). The carbon reduction achieved by the use of biofuels (44%) during the first three months of the obligation is greater than the 40% target set by the Government for the first year of the RTFO.
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European Automakers to Seek €40 Billion in Loans from EC
October 06, 2008
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| Sales of personal cars are on the decline in Europe. Click to enlarge. Source: ACEA |
European automakers will approach to European Commission (EC) seeking €40 billion in loans (US$54 billion) to support their shift to lower GHG-emitting vehicles, according to Fiat CEO and former ACEA (European Automobile Manufacturers Association) president Sergio Marchionne, in interviews given to several financial newspapers at the Paris Motor Show.
The request mirrors the new program of US$25 billion in loans from the US government to domestic automakers and suppliers for retooling factories to produces more fuel-efficient vehicles. (Earlier post.)
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Transportation and Fuel Components of the Bailout Bill
October 05, 2008
The Emergency Economic Stabilization Act of 2008 (EESA 2008), a rework of the “Wall Street bailout bill” by the US Senate, was passed by the US House on Friday and shortly thereafter signed into law by President Bush. During the past week, EESA 2008 rapidly became more than only a bill directed at stabilizing the financial sector: the final legislation consists of three main parts (divisions).
The first is the stabilization component, the actual Emergency Economic Stabilization Act of 2008, which provides the $700 billion for dealing with “troubled assets.” The second is the Energy Improvement and Extension Act of 2008 (EIEA 2008), which provides a large number of tax incentives related to energy and fuel production and energy conservation. The third is the Tax Extensions and Alternative Minimum Tax Relief, a broad amalgam of tax policies ranging from extensions of the alternative minimum tax credit; to disaster relief; to specific elements such as income averaging for amounts received in connection with the Exxon Valdez litigation and providing special relief for “certain wooden arrows designed for use by children”.
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Australia Seeks Public Discussion of Measures to Encourage the Adoption of More Fuel-Efficient Vehicles
September 30, 2008
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| Projected average CO2 emissions of the Australian LDV fleet under a range of CO2 targets. Fleet-wide improvements take a long time even with aggressive new vehicle targets. Click to enlarge. |
The Australian Transport Council and the Environment Protection and Heritage Council (EPHC) Vehicle Fuel Efficiency Working Group, with support from the Australian Government, have released a public discussion paper on potential measures to increase the adoption of more fuel-efficient, low-carbon emission vehicles.
Among the measures considered are a CO2 emissions standard for new vehicles; standards for non-engine components; and feebate programs. Closing date for public comments is 7 November 2008.
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Senator Bingaman Says Auto Loan Program Not to Be Limited to 30% of Facility Cost
September 29, 2008
The $25-billion loan program for automakers and suppliers to retool older facilities, passed by the Senate on Saturday and heading to President Bush for signature, does not intended to cap loans to 30% of the cost of a facility as reported here earlier (earlier post), according to Senator Jeff Bingaman (D-NM), Chairman of the Energy & Natural Resources Committee.
Loans will be uncapped and can go up to 100% but are typically limited by regulation to 80% of total costs, according to Michael Carr, Counsel for the Committee.
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US Senate Approves $25B Loan Package for Auto Industry (corrected)
September 28, 2008
In a special session on Saturday, the US Senate passed leglislation including authorization for $25 billion in low-interest loans to automobile manufacturers for retooling older factories. The program passed as part of the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009 (H.R. 2638), also called the continuing resolution on the budget. The bill now goes to President Bush for his signature.
The retooling provision instructs the Department of Treasury to provide up to $25 billion in low-interest loans to American automakers to finance the retooling of existing manufacturing facilities. These facilities can then be utilized to produce the next generation of alternative fuel and advanced technology vehicles.
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European Parliament Environment Committee Holds Firm on 2012 CO2 Reduction Target for New Cars
September 25, 2008
The Environment Committee of the European Parliament today voted 46-19 to hold to an average target of 120g of carbon dioxide per kilometer from new passenger cars (the M1 category) by 2012. It also voted for a new long-term target of 95g CO2/km for 2020. The current level is around 160 g/km.
Of the 120 g/km target, 130 g/km is to be reached by improvements in vehicle motor technology. The further 10 g/km reduction is to be obtained by using other technical improvements such as better tires or the use of biofuels.
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Report Calls for US$100B Federal Investment in Clean Energy Over Two Years
September 17, 2008
A US$100-billion federal investment in clean energy technologies over the next two years would result in the creation of 2 million new jobs with a significant proportion of that in the struggling construction and manufacturing sectors, according to a report released by the Center for American Progress. The report, Green Recovery: A Program to Create Good Jobs and Start Building a Low-Carbon Economy, was prepared by Dr. Robert Pollin and University of Massachusetts Political Economy Research Institute economists.
The report proposes six investment areas: building retrofitting; mass transit/freight rail; smart grid; wind power; solar power; and advanced biofuels.
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APS Report Calls for Policy Focus on Efficiency to Reduce Oil Consumption and GHG Emissions
A new report from an American Physical Society (APS) study panel concludes that improving energy efficiency of vehicles and buildings through numerous existing technologies is a relatively easy and inexpensive way to significantly reduce the US’ demand for imported oil and its greenhouse gas emissions without loss of comfort or convenience.
However, the report continues, without federal policies to overcome market barriers, the US is unlikely to capitalize on these technologies. Far greater increases in energy efficiency are available in the future, but realizing these potential gains will require a larger and better focused federal research and development program on energy efficiency than exists today.
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US Congress Passes $8 Billion Highway Trust Fund Bill
September 12, 2008
The US House of Representatives voted 376-29 to give final approval to a measure that would immediately appropriate US$8.017 billion of general revenue to the Highway Trust Fund, sending the bill to President Bush for his expected signature.
The House originally passed the bill, HR 6532, on July 23. Senators approved it by voice vote Wednesday evening, amending the legislation to make it effective upon the president's signature rather than on Sept. 30. The House today concurred with the Senate amendment and sent the bill to the White House.
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Euro Parliament Maintains Target of 10% Renewables in Road Transport Fuel by 2020; 40% of That From Non-Food Biofuels, Electricity or H2
September 11, 2008
The European Parliament’s Industry Committee has approved a co-decision report that maintains a 10% renewables component in transportation fuels by 2020, but specifies that at least 40% of this overall share must be met by non-food second-generation biofuels, electricity or hydrogen.
The decision came in the context of growing pressure to reduce the biofuels obligation given concerns of rising food prices and sustainability.
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New Zealand Passes Climate Change Emissions Trading Bill; Coverage of Liquid Fossil Fuels for Transportation Begins in 2011
New Zealand’s Parliament passed the Climate Change (Emissions Trading and Renewable Preference) Bill, thereby establishing the framework for the New Zealand Emissions Trading Scheme (NZ ETS).
The emissions trading scheme will include liquid fossil fuels used in New Zealand transportation beginning in 2011, and cover gasoline, diesel, aviation gasoline, jet kerosene, light fuel oil, and heavy fuel oil. The transportation sector accounts for 19.2% of New Zealand’s CO2emissions.
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Transportation Scenarios for Meeting California’s 80% GHG Reduction Target by 2050
September 08, 2008
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| None of the “Silver Bullet” scenarios explored by the UC Davis researchers achieve the 80in50 reduction goal, implying that no single technology can successfully meet California’s 80% emission reductions goal; a portfolio approach is necessary. Click to enlarge. |
A new study by researchers at the Institute of Transportation Studies, University of California, Davis analyzes mitigation options and presents future scenarios for meeting California’s ambitious greenhouse gas emission reductions goal (80% below 1990 levels by 2050, earlier post), focusing specifically on the transportation sector, including light-duty, heavy-duty, agricultural, off-road, rail, aircraft, and marine vehicles.
The report, 80in50 Scenarios for Deep Reductions in Greenhouse Gas Emissions from California Transportation: Meeting an 80% Reduction Goal in 2050, concludes that such a deep reduction in GHG emissions from the California transportation sector is challenging but potentially feasible. While no one single mitigation option can meet the target by itself, the goal can be met in multiple ways, utilizing a combination of technological and behavioral options. The study focuses on three main areas: travel demand, fuel efficiency and fuel carbon intensity.
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European Parliament Calls for 40% of EU Transport Appropriations for Railways and Freight
September 06, 2008
The European Parliament adopted a resolution calling on the European Commission to allocate at least 40% of EU transport infrastructure appropriations to the railways and prioritize freight to reduce the need for road transport.
Members of Parliament (MEPs) urged the Commission to concentrate EU co-financing on improving the efficiency, interoperability and upgrading of rail infrastructure, inter-modal hubs and other freight transport modes. The report was adopted with 541 votes in favor, 6 against and 15 abstentions.
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European Parliament Adopts Legislative Report for EU Type Approval of Hydrogen Vehicles; Support for Hydrogen Blends and European Hydrogen Filling Station Network
September 05, 2008
The European Parliament adopted a legislative report proposing the establishment of harmonized technical provisions for the type approval of hydrogen-powered vehicles for the first time. There is a need to introduce EU-wide approval criteria for such vehicles, to safeguard not only the operation of the single market but also to ensure a high level of safety and environmental protection, according to the Parliament.
Since hydrogen-powered vehicles are not currently included in the EC type-approval system, Member States may grant approvals for such vehicles on a one-time basis without having to lay down new laws. In such a practice there is a risk that every Member State will draw up its own approval conditions.
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French Government Declares Car Feebates System a Success
August 28, 2008
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| Basic parameters of France’s feebate system. Click to enlarge. |
French environment minister Jean-Louis Borloo declared a bonus/malus (“feebate”) system introduced to encourage car buyers to make greener purchase choices a success.
According to official figures, sales in France of vehicles consuming less than 130 g/km CO2 increased 45% increase in the eight months since the scheme was introduced. In that time, average CO2 emissions from new cars sold fell by 9% (8 g CO2/km). There was, however, a surge in purchases of 4x4s between the scheme’s announcement and its introduction.
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UNEP Report Urges Global Energy Subsidy Reform, Including Cutting Fossil Fuel Subsidies; Reductions in GHG Emissions and Increase in Global GDP
August 27, 2008
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| Economic value of energy subsidies in Non-OECD countries, 2005. Click to enlarge. Source: IEA World Energy Outlook 2006. |
Globally, approximately US$300 billion—0.7% of global GDP—is spent annually on energy subsidies. The bulk of this is being used to artificially lower or reduce the real price of fuels like oil, coal and gas or electricity generated from such fossil fuels.
A new report—Reforming Energy Subsidies: Opportunities to Contribute to the Climate Change Agenda—by the UN Environment Programme (UNEP) calls for the elimination of these environmentally harmful subsidies and major reform in three main areas: (1) Reporting and compiling consistent data on energy subsidies as well as analyzing their effects (transparency and accountability); (2) enhancing mechanisms of communication with policymakers to show them the need for and benefits of reforming subsidies as well as to assist them in implementing policy reforms at the national level; and (3) capacity building for government officials and other stakeholders from both developed and developing countries, and assistance in reforming subsidies.
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Study Concludes That Tolls More Equitable Than Taxes for Road Improvements
August 20, 2008
A new joint study by UCLA and USC researchers shows that pay-as-you-go transportation options may be fairer to all income levels than paying for road improvements through sales taxes. Many voters and elected officials oppose proposals for “congestion tolls” on equity grounds, therefore road projects are usually funded by more politically acceptable sales taxes. The researchers found that this reasoning is flawed.
In the study, Brain D. Taylor, professor and chair of urban planning at UCLA and director of the UCLA Institute of Transportation Studies, and co-author Lisa Schweitzer, assistant professor at USC’s School of Policy, Planning, and Development, compared how two distinct transportation-funding mechanisms—a toll road and a tax measure—affect Orange County’s lower-income residents.
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US EPA Denies Texas Waiver Request; Biofuel Mandates Remain 9B Gallons for 2008, 11.1B for 2009
August 07, 2008
US Environmental Protection Agency (EPA) Administrator Stephen L. Johnson has denied the waiver request submitted by the state of Texas temporarily to halve the levels of biofuels required by the Renewable Fuels Standard (RFS). (Earlier post.) As a result, the required total volume of renewable fuels, such as ethanol and biodiesel, mandated by law to be blended into the fuel supply will remain at 9 billion gallons in 2008 and 11.1 billion gallons in 2009.
In his request for the waiver, Texas Governor Rick Perry said that the “artificial demand for grain-derived ethanol is devastating the livestock industry in Texas and needlessly creating a negative impact on our state’s otherwise strong economy while driving up food prices around the world.”
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Researchers Suggest Changes to Biofuels Incentives Rather Than Rollbacks or Moratoria
July 30, 2008
Over the last six months, the focus of the biofuel debate in Europe and the United States has shifted from emphasizing the potential contribution of biofuels to increase energy security and reduce greenhouse gas emissions to concern about the impact on food prices, possible increase in greenhouse gas emissions and the loss of forests and biodiversity.
A report from reserachers at Harvard Kennedy School concludes that despite growing pressure from biofuels critics, governments should avoid simplistic and precipitous changes in course such as rollback or moratoria on existing biofuels mandates or incentives. Instead, the report urges governments to i