Car Allowance Rebate System (CARS)

• Avg switch: 16 mpg 26 mpg

• ~750,000 old vehicles swapped– 16mpg 940gallons/yr &

18,000lbs CO2/yr– 26mpg 580gallons/yr &

7,000lbs CO2/yr

• Effectiveness?– 1% CO2 emissions– 0.2% gas consumption

• Not enough participants!• Advantages

– Save $ on gas– Remove dirtiest cars off roads– Recycle steel parts

Trade in old vehicles for newer, more fuel efficient

vehicles with a $3500-4500 rebate

Economic Incentives for Improved Vehicle Efficiency

Tax Incentives for Hybrid Vehicles

• On average, hybrid vehicles save consumers $2500 in fuel costs over a 10 year lifespan

• The cost of purchasing a hybrid vehicle is $5000-$9000 greater than the cost of purchasing a comparable non-hybrid vehicle.

• Tax incentives are provided to the first 60,000 consumers who purchase a hybrid model each year. Federal tax reductions should be applied to every consumer who purchases a hybrid vehicle.

Feebates

• Consumers purchasing inefficient automobiles will be charged a “fee” at the time of vehicle purchase

• Consumers purchasing an efficient automobile receive a “rebate” at the time of vehicle purchase

• This system is financially self-sustaining

Electric Power for PHEVs(Plug-In Hybrid, Electric Vehicles)

Policy Report discussionby Hunter Estes

Electric Power for PHEVs(Plug-In Hybrid, Electric Vehicles)

• Proliferate EVs & PHEVs through $0.10/gal ($0.0264/L) gas excise tax. (We currently pay $0.1/L in taxes per Liter. Tax helps to modify behavior & generate revenue)

• @ 42 gallons per barrel, this would generate revenue of $87 M/day, or $31.7B/year (20.7M bbl/day x 42 x $0.1 x 365)

• Cost to average consumer is (10,000 miles/yr)/(25 mpg) x $0.10 = $40/yr– Note: Cost will also be observed in airline travel, commercial goods shipped Nationwide, etc.– Perhaps real cost to consumer will be more like $150/yr– This amount won’t likely cripple the U.S. Economy, but will help with revenue & conservation

• If only $4.5B were set aside for the purpose of giving $9,000 in tax credits towards the purchase of qualified EVs or PHEVs, this would help offset the price of 500,000 new green vehicle purchases, annually. Also set aside another $4.5B worth of credits for home charging stations.

• Grant businesses a $4.5B tax credit for granting employees free charging stations at the workplace.• When (If?) tax credits run out, employees charge vehicles via credit card transactions, like at gas

stations. Or, workplace might potentially pick up the tab as a benefit to employees.• Use remaining $18.2B of revenue for R&D• Home charging stations have separate meters & billing statements break out cost times to consumers

much like cell phone bills already do (peak hours, group rates, recommendations…)• Programmable charging stations for household nighttime charging, or control charging via Energy

Providers (much like what was done via controlled cycling, to mitigate peak production demand)• Allows wind producers a valuable market so they don’t have to scale back production• Remaining portion of load fluctuations met from Natural Gas Electricity Providers (CH4 > CH1.6)

Zachary Houston

CHE 359

EPA Standards for Heavy Vehicles

Introduction to Fuel Economy and StandardsImprovements in Trucking Industry“Improvements” in Large Truck IndustryConclusions

Contents

Trucks larger than 8,000 lbs. gross weight have been exempt from NHTSA CAFE standards since inception

BusesSemi-trucksLarge VansLarge TrucksUtility Vehicles

What about CAFE Standards?

According to the NHTSA, 10% of vehicles on the road are “heavy vehicles”

Those 10% consume as much as 30% of fuel in the U.S.

But 10% is not much.

According to American Trucking Association, there are about 1.9 million Semis on the Road

They average between 6 and 7 miles per gallon

Can drive up to 150,000 miles per year each.

The Trucking Industry Drives Economy

In October, Obama Administration and EPA announced plans to require 20% reduction in carbon dioxide emissions by 2018.

This save $41 billion per year in oil imports, more in fuel costs.

And the technology exists today.Bill Graves, president of the American Trucking

Associations welcomes the proposal, feels regulations are “feasible… through technology currently available.

Obama Makes Progress through EPA

“Improvements” to Large Truck Industry

http://www.youtube.com/watch?v=mC2piTPkWYg

Average fuel economy

11 mpgAverage Passenger

Capacity4 People

One 2500 series truck

5 Prius

It’s Not Rocket Science

http://www.truckinfo.net/trucking/stats.htmhttp://www.npr.org/templates/story/story.php?

storyId=130787713.http://www.nhtsa.gov/cars/rules/cafe/overview.ht

m

Sources

Teri Houle

Public Policy Review for Transportation

Transportation Policy Review

Policy Pros Cons Recommendation

Congestion Tolls

•Encourages alternate transportation at heavy usage

•Money for public infrastructure

•Disadvantage to lower income

•Impact to neighboring businesses

•Use only as one lane, not congestion toll areas, allow for alternative routes

•Advantage to HOV and high efficiency vehicles

Use of public policy to effect supply side (with fuel efficiency) and demand side (with active congestion management) to lower

oil usage in U.S. transportation

Policy Recommendations Summary:

Increase Diesel Options in U.S.•Diesel engines are more efficient than comparable

gasoline engines because of their higher compression ratios and auto ignition

–Diesel cars go on average 30% farther per gallon than comparable gasoline cars

•Pollution problems of the past are not as significant with new emission technology and the use of ultra low sulfer diesel (ULSD).

–As of 2007, most stations are required to sell ULSD–All diesel cars manufactured after 2006 run only on ULSD

•Policies in the U.S. encouraging Diesel engines can reduce GHG emissions and oil imports

–Diesel vehicles account for only .5% of light duty vehicles in the U.S. compared to 43% in Europe (OECD, 2005)–Tax credits and rebates can encourage purchases along with equalizing diesel and gasoline taxes

Mass Transportation

• Government intervention will be necessary = Taxes• Drawbacks

– People don’t like taxes, especially in recession– Many places in US not built for it, especially rural areas– Doesn’t benefit me– Nobody will use it: seems too inconvenient

• Benefits– Can reduce energy use– Can benefit all: reduce traffic, increase property value– Can be elastic

• Increasing fares by 10% causes a 4% decrease in usage

Mass Transportation is Elastic

Transportation Policy Recommendations

Federal Subsidies for Corn-Based Ethanol

Brad PodkulskiCHE 359Fall 2010

Energy return on investment (EROI) for corn-based ethanol is too low to justify subsidies.

fuelofunitoneproducetoinputEnergy

fuelofunitonefromoutputEnergyEROI

Energy Balance for Corn-based Ethanol

Source: Department of Energy, http://www.afdc.energy.gov/afdc/vehicles/emissions_balance.html

Net Energy Value = (Energy output from fuel) - (Energy required to produce fuel)One gallon of ethanol ≈ 80,000 BTU

Key Summary Points•Carbon emissions from petroleum usage are a significant problem•Plug in Hybrid-Electric vehicles can help to remedy these issues for typical commuters. Natural gas can reduce the carbon emitted by large commercial vehicle fleets•To help build a charging infrastructure for these vehicles, the government should subsidize the charging stations for home users and install charging points in public locations (highly visible)•LNG for commercial vehicle fleets and longhaul trucks.

Fred Engelkemeir

Raise federal gas tax

•Causes drivers to seek mass transit opportunities• Revenue can be used to fund mass transit and set up new infrastructure for plugin vehicles

Improve Infrastructure for new vehicles

•Increase the transition time for people to adopt a new technology•Cheap method of increasing economic revenue in shopping centers

Encourage mass transit systems

•Economically viable, about $4 into the economy for $1 spent•Extremely efficient by creating transit oriented developments•Also improves health lifestyle

POLICY SUMMARY SLIDE

Goal: reduce foreign oil dependence and fight climate change

CAFE STANDARDS & AUTO INSPECTIONS

Wesley Cole

CAFE Standards(Corporate Average Fuel Economy)

Introduced in 1975 Fine of $5.50 per 1/10 mpg rating per car

CAFE Decreased

Last CAFE Change

Minor CAFE

Change

CAFE Constant until 2004

CAFE (continued)

Cost: $52 billion Benefits: $182 billion in savings

61 billion gallons of motor fuel 655 million metric tons of CO2 emissions

Current 2012 2013 2014 2015 2016

Cars 27.5 33.3 34.2 34.9 36.2 37.8

Light Trucks

22.2 25.4 26.0 26.6 27.5 28.8

Average 24.9 29.7 30.5 31.3 32.6 34.1

Auto Inspections

Tire pressure Octane rating recommendations General engine performance 7% increase in mpg (max)