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Posts from the "Fuel Efficiency" Category

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EPA: Energy Efficiency Is About Location, Location, Location

Where we live has an enormous impact on energy use, according to new research commissioned by the EPA. The report, “Location Efficiency and Housing Type — Boiling It Down to BTUs” finds that Americans use far less energy if they live in an apartment building in a transit-oriented neighborhood than if they live in a detached suburban house, even if that house has green building features and sports fuel-efficient cars in the driveway.

When it comes to this report, a picture’s worth a thousand words. As the graph above shows, the biggest energy efficiency gains come from living in transit-oriented neighborhoods.

A household living in a single family detached house located in a typical sprawl development uses an average of 240 million BTU (British Thermal Units, a unit of energy output) of energy a year, while the same household would only use 147 million BTU if the exact same house were located in a compact neighborhood. Make that single family house an apartment and energy use is down to 93 million BTU.

“While energy efficiency measures in homes and vehicles can make a notable improvement in consumption, the impact is considerably less dramatic than the gains possible offered by housing type and location efficiency,” the authors write. The ideal solution, of course, is to combine smart growth with green technology.

The report serves as a high-level rebuke to those who dismiss the importance of smart growth for curbing energy use, a point of view that was reinforced by a recent report from the Pew Center on Global Climate Change. While putting a stop to the country’s many sprawl-inducing policies may not be easy, the EPA’s numbers show it’s necessary.

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Report: Cleaner Cars Could Put More Pumpkin Pies on Americans Tables

11 23 10 chart

Environment California has been leading the charge for a cleaner automobile fleet for California and the rest of the country for years.  Earlier today, they released a new report, Gobbling Less Gas for Thanksgiving, promoting a “sixty miles per gallon” fuel efficiency mandate for American cars to be in place by 2025.  If that goal seems unrealistic considering that the average miles per gallon for the American fleet is only 26.4 miles per gallon today, consider that recent studies show that American cars are 99% cleaner today than they were fifty years ago.

To view the report, click ##http://www.environmentcalifornia.org/uploads/a6/6c/a66c8704ccb83d8df1025ec981157cda/CA.Gobbling-Less-Gas-for-Thanksgiving-report.pdf##here.##

To view the report, click here.

As the Obama administration considers new fleet-wide fuel efficiency and global warming pollution standards for cars and light trucks through 2025.  Despite election results in November that would suggest that environmental concerns aren’t at the top of voters’ to-do list for the White House, Environment California notes that almost three-quarters of American voters (74%) support a sixty miles-per-gallon standard when polled.

And when it comes to fuel efficiency, the Obama Administration practices what it preaches.  Nearly one-quarter of all hybrid cars bought since January 19, 2009 from Ford Motor Company and General Motors were purchased by the Federal Government.

While some find this a sign that hybrids and alternative fuel vehicles aren’t capable of earning a market share without record-high gas prices, others find it encouraging that the administration isn’t just setting standards while still cornering the market on gas guzzlers.  Bloomberg news reports:

“It is good that the government leads by example,” Dan Becker, director of the Washington-based Safe Climate Campaign, said in an interview. “At a time when we’re just beginning the era of the hybrid, it’s a positive sign that the government is stepping up to the plate and helping build that market.” Read more…

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EPA/USDOT Wants Our Input on Fuel Economy Stickers for New Cars

The E.P.A. is considering new "fuel economy stickers" for new cars.  This one is favored by the industry.  A better explanation of the stickers ##http://www.epa.gov/fueleconomy/gas-label-2.htm##can be found here.##

The E.P.A. is considering new "fuel economy stickers" for new cars. This one is favored by the industry. A better explanation of the stickers can be found here.

This Thursday, the United States Environmental Protection Agency (EPA) is coming to town to hold a public hearing on the design of new fuel economy stickers that will be placed on “for sale” cars.  The agency, in partnership with the USDOT, will select either the sticker type pictured above, or a more simple “letter grade” sticker that would have an “A, B, C, or D” letter grade and a brief explanation of the grade. The new sticker will be the first change in environmental information given to consumers in three decades.  The hope is that by informing car buyers of the environmental consequences of their vehicle choice that they’ll make better choices.

The hearing details can be found at the end of the article.  If you wish to testify in person, you have to email lucie.audette@epa.gov ahead of time.  If you’d rather testify online, you can do so by clicking here.

At an earlier hearing on the new stickers held in Chicago, two familiar factions each backed a different sticker.  Environmentalists favor the “letter grade” sticker because its easy to understand.  The automobile industry prefers the more detailed yet confusing one pictured above.  Environmentalists seem thrilled that the government is considering an easy way to warn drivers away from the worst polluting vehicles.  Meanwhile, car dealers are worried.  After all, these stickers could end up being the “Surgeon General’s Warning” for cars. Read more…

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Final Obama Fuel-Efficiency Rule Gives Breaks to Electric, Luxury Cars

The Obama administration today released its final rule raising U.S.
auto fuel-efficiency standards to an average of 35.5 miles per gallon
(mpg) by 2016, winning plaudits from environmental groups while
offering extra benefits to makers of electric and luxury cars.

Transport_Chief_LaHood_EPA_Head_Jackson_Announce_CPZZNkkxGw4l.jpgTransportation Secretary Ray Lahood, at left, with EPA chief Lisa Jackson at right. (Photo: Getty Images)

The
final rule was jointly unveiled by Transportation Secretary Ray LaHood
and Environmental Protection Agency (EPA) chief Lisa Jackson, who
described the higher fuel standards — known as CAFE, for Corporate
Average Fuel Economy — as "a win for automakers and drivers, a win for
innovators and entrepreneurs, and a win for our planet." 

Environmental advocates joined the auto industry in
welcoming the higher CAFE standards, which the EPA estimates would
yield $240 billion in total benefits over the life of the rule –
compared with a total cost of $52 billion for carmakers and drivers.

“By
completing these rules, the Obama administration is putting our country
on the road to creating thousands of clean energy jobs and cutting our
dangerous dependency on oil," Roland Hwang, transportation director at
the Natural Resources Defense Council, said in a statement.

Dave
McCurdy, president of the Alliance of Automobile Manufacturers, urged
the White House to follow the rule by beginning "to work on [fuel
standards for] 2017 and
beyond.” 

The new CAFE rule includes a notable break for
electric cars, giving a zero-emissions rating to the first 200,000 such
vehicles made by each manufacturer despite the fact that carbon
emissions would result from the power needed to charge them.

Jackson
said the benefit was included to bolster the administration’s "bullish"
stance on plug-in technology. "We all know that’s not entirely true,"
she acknowledged of the government’s zero-emissions designation,
"because when you plug in, there’s
some emissions associated with the power you’re using  … but we
wanted to incentivize them."

In the text of the final rule,
the EPA described its 200,000-vehicle zero rating as a compromise with
green groups that objected to its initial proposal to offer the rating
to all electric vehicles.

"Many
state and environmental organization commenters
believed that the combination of these incentives could undermine the
GHG [greenhouse gas] benefits of the rule, and believed the emissions
compliance values
should take into account the net upstream GHG emissions associated with
electrified vehicles compared to vehicles powered by petroleum based
fuel," the rule’s authors wrote.

The EPA’s earlier proposal
also had included a "multiplier" that would effectively count electric
or hybrid cars as more than one vehicle when automakers calculated the
average fuel efficiency of their fleets. The final rule, however,
abandoned the "multiplier" concept.

The benefit for luxury carmakers, nicknamed the "German provision,"
would give manufacturers selling fewer than 400,000 cars per year in
the United States extra time to comply with the new fuel rules between
the model years of 2012 and 2015. Automakers which stand to gain from
that efficiency "lead-time allowance" include BMW and Mercedes.

The
EPA and U.S. DOT estimated that their stronger fuel-efficiency standard
would increase the average cost of cars by $950 as of the 2016 model
year, but Jackson noted that most auto buyers would "offset the costs"
by saving on fuel bills during their first three years of driving.

Asked
about the auto industry’s eagerness for certainty from the federal
government for 2017 and beyond, LaHood told reporters that "anything
post-2016 will come after people get a good week of sleep … they’ve
been working night
and day to get this right."

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Automakers Oppose Congressional Bid to Bar EPA From Limiting Emissions

The auto industry today aligned with the White House
in the debate over a congressional bid to block the Environmental
Protection Agency (EPA) from regulating carbon emissions while
lawmakers work to pass a climate bill, warning that such an attempt to
yank EPA authority "would collapse" last year’s agreement to raise fuel-efficiency standards.

US_regulate_national_auto_emissions.jpg(Photo: TreeHugger)

"Automakers agree with the fundamental premise that Congress should determine how best to reduce greenhouse gas emissions," Alliance of Automobile Manufacturers
president Dave McCurdy wrote in a letter to congressional leaders of
both parties. "However, if these resolutions are enacted into law, the
historic agreement creating [a higher national fuel standard] would
collapse."

The congressional proposals at issue are sponsored
by Republicans and Democrats alike. Sen. Lisa Murkowski (R-AK) has won
Democratic support for her resolution of disapproval aimed at the EPA’s ability to regulate emissions under the Clean Air Act, though she has stopped short of seeking a vote as Sen. Jay Rockefeller (D-WV) pursues a separate plan to force a two-year delay in EPA activity on the issue.

The Obama administration, which has used the specter of EPA action as a means to spur congressional movement on climate change, argues that
any bid to remove the agency’s clean-air authority would nullify its
deal with automakers to raise fuel-efficiency (CAFE) standards to 35.5
miles per gallon by 2016.

In his letter, McCurdy echoes the White House’s concern and counters assertions made by auto dealers
and other business groups that the Murkowski and Rockefeller
resolutions would not imperil any CAFE deal. Automakers view the
anti-EPA resolutions as "express[ing a] legitimate concern," McCurdy
wrote, but would prefer lawmakers focus on crafting a national
fuel-efficiency policy that ranges beyond 2016.

An excerpt from McCurdy’s letter follows after the jump.

Read more…

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Study: Clean-Car Subsidies Alone Can’t Meet White House’s Climate Goals

Government subsidies for hybrid and electric cars, while
"politically seductive," will fail to achieve the Obama
administration’s national pollution-reduction goals if they are not
coupled with a significant increase in fuel prices, according to a new study by Harvard University researchers.

The
team at Harvard’s Belfer Center for Science and International Affairs
used U.S. Department of Energy economic models to evaluate six possible
outcomes for Washington’s newly reinvigorated push for a 17-percent cut in U.S. emissions by 2020, in keeping with President Obama’s pledge at the global Copenhagen climate talks.

Five
of the Harvard team’s six outcomes assumed a future carbon price of $30
per ton (higher than the price envisioned in the House-passed climate
bill) that rises over time, with other tweaks added to the system,
including continued government tax credits for hybrid and electric
vehicles, an immediate 50-cent hike in the gas tax, and more increases
in auto fuel-efficiency standards.

The researchers
concluded that taxpayer-funded clean-vehicle credits "are expensive and
not particularly effective at reducing CO2 emissions, at least in the
near term." In order to trim transportation’s 30-percent contribution
to total U.S. emissions, the Harvard team recommended an
all-of-the-above approach:

[O]ptions now being
discussed in Congress cannot by themselves achieve the significant
reductions in the transportation sector needed to meet the Obama
administration’s targets for total U.S. greenhouse gas emissions by
2020. The most effective policy for reducing CO2 emissions and oil
imports from transportation is to spur the development and sale of more
efficient vehicles with strict efficiency standards while increasing
the cost of driving with strong fuel taxes. Without addressing both,
CO2 emissions from the U.S. transportation sector will continue to grow.

Of course, higher gas taxes are as anathema to politicians as clean-car
subsidies are alluring — which is leaving green groups wary of a
bipartisan Senate proposal
to include a new motor-fuel fee in climate legislation. The oil
industry has said it prefers a new carbon tax on fuel because companies
can more easily pass on the costs to consumers, attributing the resulting gas-price hikes to congressional climate action.

From the Harvard researchers’ perspective, however, expensive fuel is merely a means to an end.

Read more…

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The Big Trouble with “Miles Per Gallon”

22821423_14e1d70f4a.jpg(Photo: snoweyes via Flickr)

Can you answer this riddle?

A town maintains a fleet of vehicles for town employee use. It has two types of vehicles. Type A gets 15 miles per gallon. Type B gets 30 miles per gallon. The town has 100 Type A vehicles and 100 Type B vehicles. Each car in the fleet is driven 10,000 miles per year. The town’s goal is to reduce gas consumption and thereby reduce harmful environmental consequences.

Choose the best plan for replacing the vehicles with corresponding hybrid models:

a. Replace the 100 vehicles that get 15 miles per gallon (mpg) with vehicles that get 20 mpg.

b. Replace the 100 vehicles that get 30 miles per gallon (mpg) with vehicles that get 40 mpg.

c. a) and b) are equivalent.

d. I don’t know.

The answer is a, but a 2008 study by two Duke University researchers found that most who answer the question incorrectly choose b. After all, a 10-mpg increase in the same number of vehicles sounds a lot better than a 5-mpg hike, right?

Read more…

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Consumer Group: White House Left Fuel-Efficiency Savings on the Table

The Obama administration’s proposal
to raise auto fuel-efficiency (CAFE) standards to 35.5 miles per gallon
by 2016 could have gone even further in order to reap the maximum
environmental and economic benefits of cleaner cars, according to a new
analysis [PDF] released today by the Consumer Federation of America.

In
his analysis, Consumer Federation research director Mark Cooper used
data from federal regulators to compare the pollution and cost savings
achieved by the Obama CAFE plan — which would yield an actual average
standard of 34.1 mpg if automakers take advantage of available
"credits" — to a hypothetical standard of 38.1 mpg by 2016.

Cooper
found that a 38.1 mpg standard would achieve a net societal benefit of
$50 billion, including considerable gas savings for drivers and
reductions in pollution (visible in the below chart). Setting that
higher standard, Cooper added, would pay for itself within four years
and yield a 9 percent return on buyers’ investment as the higher cost
of more efficient cars was offset by fuel savings.

consumer_fed.png(Chart: Consumer Federation)

Cooper wrote in the Consumer Federation report:

The proposed [Obama CAFE] rule delivers far smaller benefits than could
be achieved, if the [auto] industry were not holding the agencies back.

Read more…

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Higher Gas Prices Alone Won’t Make Cleaner Cars a Reality

epa_chart.pngThe average carbon emissions of U.S. vehicles. (Image: EPA)

It’s a storyline that the media and the auto industry
have embraced: Higher gas prices are the magic ingredient that U.S.
carmakers need in order to sell more fuel-efficient vehicles to
consumers. 

The narrative is tempting, especially for those who believe
federal gas taxes need to rise in order to fairly price the
environmental impact of driving. But if it were true, the record rise
in U.S. fuel prices that began in 2007 and lasted through 2008 might be expected to spur a notable increase in production of cleaner cars.

And that didn’t happen, as the Environmental Protection Agency (EPA) reported today in a new analysis [PDF]
of carbon emissions and fuel economy trends in the U.S. auto fleet. The
average fuel-efficiency of American cars went from 20.6 miles per
gallon (mpg) in 2007 to 21.0 mpg in 2008, according to the EPA, and is
poised to rise by just 0.1 for the 2009 model year.

In real
pollution terms, that means the average American car will emit just 2
grams fewer CO2 per mile this year than it did in 2008. For Dan Becker,
a longtime environmental advocate who directs the Safe Climate
Campaign, that paltry progress is an argument for stronger, consistent
increases in the nation’s fuel-efficiency and emissions standards.
Becker said in a statement:

Conventional wisdom — and auto company
lobbyists — maintain that high-priced gasoline is enough to improve fuel
economy. Both are wrong. Gas prices have risen each year from 2002 to 2008; industry
has failed to keep pace by improving mileage. This report demonstrates that
even when gas hit more than $4 a gallon, mileage barely improved.

High gasoline prices won’t be enough to put
cleaner cars on our roads. They do not force industry to change its wasteful
and polluting ways. Strict laws do. The Obama administration must repeatedly
ratchet up mileage and tailpipe standards. 

Sadly, the administration’s plan to raise fuel-efficiency standards to 35.5 mpg by 2016 contains enough accounting loopholes to make Enron proud.

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Takeaway From This Week’s EPA Hearing: Fuel Efficiency is a Money-Maker

A major step towards more fuel-efficient U.S. vehicles is being taken today in Detroit, where the Environmental Protection Agency (EPA) and the U.S. DOT are holding their first in a series of public hearings on the new emissions standards the Obama administration released in May.

New_CEO_Fritz_Henderson_Addresses_GM_Challenges_Hu1CQuvWBA4l.jpgThese GM executives long resisted higher fuel-efficiency standards. Now a new report from one of their own says higher standards mean more profits. (Photo: Getty Images)
Domestic automakers testifying today emphasized their willingness to comply with the new rules, though not necessarily with a smile on their faces. The fine print of the EPA and DOT's final efficiency rule contains several potent loopholes long sought by car companies, and the Detroit News found General Motors vice president Michael Robinson stressing the downside of cleaner cars: "The proposal will not be easy nor will it be inexpensive, but we are up to the challenge." 

But the most compelling aspect of today's hearing has yet to show up in the mainstream media: testimony from Walter McManus, a veteran GM economist who now leads the automotive analysis division at the University of Michigan's Transportation Research Institute.

Since leaving Detroit's inner sanctum, McManus has candidly admitted that his former colleagues failed to comprehend consumers' desire to burn less fuel; in a November column for the Daily Beast, he described GM as filled with "individually brilliant people who are collectively stupid."

Today in Detroit, McManus put his data where his mouth is by testifying on a report he released last week [PDF] that shows the new fuel-efficiency rules will lead to an annual profit increase of $3 billion at the three U.S. automakers (GM, Ford, and Chrysler), compared with an $800 million annual profit gain for the so-called "Japan 3" (Toyota, Nissan, and Honda).

McManus' report found that consumers' prioritization of fuel costs over total vehicle prices, as well as the likelihood of gas price increases in future years, would turn the costs of complying with the administration's new efficiency standard by 2016 into a net upside. "Most importantly," the report states, "complying with the [35.5 mpg fuel standard by 2016] renders the vehicles in the majority of segments more cost effective for consumers; the present value of the fuel saved will be greater than the increase in purchase price associated with the new fuel saving technology."

Interestingly, McManus' research, conducted with Citigroup's investment research department, Ceres, and the Investor Network on Climate Risk, does not take into account two factors that could further boost the economic benefit of less fuel consumption:

the economic savings of reduced foreign energy dependence or the direct savings of reduced military expenditures necessary to protect that dependence.

So why have U.S. automakers fought higher fuel-efficiency standards for decades?

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