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Public to Obama Administration: Adopt New Auto Fuel Efficiency and Carbon Standards

2012-01-17T13:10:00Z

Luke Tonachel, Vehicles Analyst, New York City

Greetings from the Motor City! Obama Administration officials are in Detroit to gather public input on the EPA and Department of Transportation proposal to raise new automobile efficiency standards to the equivalent of 54.5 mpg by 2025, nearly double that of today’s new vehicles. As I’ll be testifying later today, the standards are a huge step forward. They will dramatically cut U.S. oil consumption and dangerous emissions carbon pollution. The standards are good for consumers and the economy and will spur job creation. The Obama Administration should keep the standards strong and adopt them as final regulations this summer.

The Detroit hearing is the first of three public hearings, including Philadelphia on January 19th and San Francisco on January 24th. Anyone is invited to testify or submit written comments to the agencies. NRDC makes it easy to send in written comments, just click here.

Today, I expect to hear support for the standards from a broad range of stakeholders. Thirteen automakers and individual dealers have already recognized that the standards are good for business. Labor leaders, local elected officials, economists and consumers will add their supportive voices.

Not everyone is on the same page, however. The National Automobile Dealers Association (NADA) and a few House Republicans have opposed the proposal. Others in the automotive industry want them to reconsider. Writers at Automotive News have urged NADA to be “reasonable” and let the standards move forward. As they say, “there is general agreement that the most reasonable approach for the industry is to get on with it.”

I agree. Below is my testimony, as prepared for delivery:

Testimony of Luke Tonachel

Hearing on EPA and NHTSA Proposed Rule for 2017 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions and Corporate Average Fuel Economy Standards

January 17, 2012, Detroit, MI

Good morning. Thank you for the opportunity to testify today. My name is Luke Tonachel, and I am a senior analyst in the Energy and Transportation program at the Natural Resources Defense Council. I am pleased to be here on behalf of NRDC’s 1.3 million members and online activists.

The model year 2017 to 2025 car and light truck standards, proposed jointly by EPA and NHTSA, are a giant step forward. The standards are good for the environment, consumers, and the economy. The standards ensure that, as a nation, we are investing in our future instead of being beholden to a status quo of our heavy dependence on oil which is fueling dangerous emissions of carbon pollution and draining our economic wealth.

These standards present the U.S. with a choice of how to spend a half trillion dollars over the next 20 years. A half trillion dollars is a conservative estimate of the value of the fuel savings from this program from 2017 to 2030. Without the standards, we will unneccessarily send $350 billion overseas to OPEC and other oil producing countries. We will also pad the revenues of the oil industry by another $150 billion.

By strengthening these standards to the equivalent of 54.5 mpg by 2025, we will invest that $500 billion back into our economy and create almost 500,000 new jobs while cutting carbon pollution by the equivalent of 76 coal power plants. Under the rule, the U.S. would invest about $300 billion in new vehicle technologies, bringing cleaner, more fuel-efficient cars and trucks to the marketplace. Consumers would have an additional $200 billion in their pockets to spend in the economy, thanks to the fuel-sipping vehicles.

Making better vehicles means more U.S. jobs. A recent report from the investor group Ceres estimates that auto industry investments and consumers savings triggered by the proposed standards would generate 484,000 jobs across the country.[1]

This is not surprising. NRDC recently partnered with the UAW and National Wildlife Federation to quantify the jobs being spurred by the current 2012 to 2016 standards. In our joint report, Supply Ingenuity, we found that over 150,000 workers are currently employed in 300 automotive supply companies across 43 states to make parts that enable cars and trucks to cut pollution and go farther on a gallon of gas.[2]

Consumers win under this proposal because they will have more choices of cleaner, fuel-efficient offerings in the showroom. As the agencies’ analysis shows, consumers will have net savings of up to $4,400 over the life of their vehicles under the standard. Importantly, for most consumers that finance their vehicles, the net savings will be brought home immediately. Under the standards, the combination of fuel expenditures and new car loan payments will be lower in the first month. By 2030, the aggregate national savings will provide the equivalent of an annual tax rebate of $330 for every American household.[3]

Consumers want cleaner, more fuel-efficient vehicles and they are buying them. According to data from the University of Michigan, the average fuel economy of new vehicles since data was first collected in October 2007 has been increasing year-over-year.[4]

Improved efficiency is being achieved across the fleet. Gone are the days when V-8s were king. Six- and four-cylinder engines are the norm, with thrifty four-cylinders being the most popular choice. Adding turbochargers to gasoline direct injection engines can provide the same power as larger engines while reducing fuel consumption and carbon dioxide pollution. Transmissions are evolving with more gears that allow engines to stay longer in efficiency sweet spots. Automakers are improving aerodynamics and increasing the use of lighter weight, high-strength materials to reduce load while maintaining or improving safety.

The agencies analysis shows that internal combustion engine vehicles will continue to reign through the 2017 to 2025 standards. Over 80 percent of new vehicles in 2025 will be internal combustion engine-powered vehicles with more advanced and innovative engines, transmissions and bodies. Hybrid electric and plug-in electric vehicles will continue to grow in the marketplace but most new cars and trucks will run solely on gasoline, just less of it.

In addition to using less gas, these new vehicles will cut emissions of dangerous global warming pollution in half compared to today’s average vehicles. NRDC estimates that the 297 million metric tons of greenhouse gas reductions in 2030 from the standard is equivalent to the avoiding the annual emissions from 76 coal-fired power plants. These standards will help protect our economy by helping to reduce extreme weather events such as hurricanes, heat waves and floods.

The numerous and large benefits of the 2017 to 2025 standards has resulted in very broad support. Since the agreement was forged to reach this proposal, support has come from almost all of the auto industry[5], and from prominent Republicans and Democrats[6], consumer advocacy groups[7],[8], national security groups[9],[10], economists[11], business leaders[12], small business owners[13], the UAW[14], and environmental organizations[15]. A poll from the publishers of Consumer Reports is just the most recent example of this support. Of the respondents, 77 percent wanted the government to raise and enforce stronger fuel efficiency standards.[16]

The National Program and this latest set of standards are example of good government. Despite the gridlock in Congress, the EPA, NHTSA and the California Air Resources Board have demonstrated an effective partnership to develop policy that meets the objectives of the Clean Air Act and the Energy Policy and Conservation Act. Each agency has played an important and critical role in shaping this proposal. The proposal is also a product of discussions with automotive industry, labor, environmental and consumer stakeholders and the result is strong set of standards.

In conclusion, the U.S. has an opportunity to invest half a trillion dollars over the next 20 years. Implementing the 2017 to 2025 standards will allow us to invest that money in America. It will promote vehicle technology leadership, protect the environment, help consumers and create U.S. jobs. Some in Congress seek to disrupt this standards-setting process. If they were to succeed, Americans would be robbed of more choices in cleaner, more efficient vehicles, the automotive industry would struggle under market uncertainties driven by volatile fuel prices, and the nation would be faced with greater oil dependence and pollution. The agencies should forge ahead, keep the model year 2017 to 2025 vehicles standards strong and make them final this summer.

Thank you for your attention.

[1] Ceres. More Jobs per Gallon: How Strong Fuel Economy/GHG Standards will Fuel American Jobs. July 2011.

[2] NRDC, NWF and UAW. “Supplying Ingenuity: U.S. Suppliers of Clean, Fuel-Efficient Vehicle Technologies.” August 2011. www.nrdc.org/transportation/autosuppliers.

[3] NRDC and UCS. “Saving Money at the Gas Pump: State-by-State Consumer Savings from Stronger Fuel Efficiency and Carbon Pollution Standards”. September 2011. http://www.go60mpg.org/docs/NRDC_UCS-State_by_State_Savings-FINAL_9-11.pdf.

[4] University of Michigan Transportation Research Institute, “Average sales-weighted fuel economy of purchased new vehicles for October 2007 through December 2011”. http://www.umich.edu/~umtriswt/EDI_sales-weighted-mpg.html.

[5] Commitment letters from 13 automakers to Secretary LaHood and Administrator Jackson. Dated July 2011 . Letters from BMW, Chrysler, Ford, GM, Honda, Hyundai, Jaguar Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota Volvo. http://epa.gov/otaq/climate/regulations.htm

[6] Bipartisan Joint Letter to President Obama. Signed by The Honorable Diane Feinstein, US state Congress, D-California, et al. Dated July 25, 2011. http://feinstein.senate.gov/public/index.cfm/2011/7/feinstein-snowe-call-for-maximum-feasible-fuel-economy-standards.

[7] American Consumer Advocacy Groups. Joint Letter to President Obama. Signed by Consumer Federation of American, et al. Dated September 22, 2010. http://www.consumerfed.org/pdfs/60MPG-Obama.pdf.

[8] Consumer Union. Consumers Reports Says 56 Miles-Per-Gallon Vehicle Standard is Good, but 62 MPG is Better Aggressive Fuel Economy Standard by 2025 Will Save Consumers Money and Dramatically Cut Oil Consumption. Press Release. June 30, 2011. http://www.consumersunion.org/pub/core_telecom_and_utilities/017853.html.

[9] Securing America’s Future Energy. Oil Savings from the Proposed 2017–2025 Fuel Economy Standards. Issue Brief. June 8, 2011. http://www.secureenergy.org/sites/default/files/SAFE-Oil-Savings-from-Fuel-Ecomony_Standards.pdf.

[10] Ashley Howe. Truman Thanks Obama in POLITICO. Blog. Truman Project. August 3, 2011. http://www.operationfree.net/2011/08/03/truman-advertisement-featured-in-politico/

[11] American Economist Group Joint Letter to President Obama. Signed by Michael Anderson, Ph.D. University of California, Berkley, et al. Dated June 7, 2011. http://www.ucsusa.org/assets/documents/clean_vehicles/clean-cars-economists-letter-2011.pdf.

[12] Environmental Entrepreneurs (E2) Joint Letter to President Obama. Signed by Curtis Abbott, Lucesco Lighting Inc., et al. Date June 30, 2011. http://www.e2.org/jsp/controller?docName=petition%28Go60_2011%29.

[13] Small Business Majority. Small Businesses Strongly Support Raising Fuel Efficiency Standards. Press Release. July 29, 2011. http://smallbusinessmajority.org/reports/Fuel_Efficiency_Poll_Exec_Sum_072911.pdf.

[14] UAW. UAW supports administration proposal on light-duty vehicle CAFE and greenhouse gas emissions reductions. Press Release. July 29, 2011. http://www.uaw.org/articles/uaw-supports-administration-proposal-light-duty-vehicle-cafe-and-greenhouse-gas-emissions-r.

[15] Environmental Advocacy Groups Joint Letter to President Obama. Signed by Cindy Shogan Alaskan Wilderness League, et al. Dated September 9, 2010. http://docs.nrdc.org/energy/files/ene_10090903a.pdf.

[16] Consumers Union. “Consumer Reports Survey: Large Majority of Consumers Support Stronger Fuel Economy Standards to Save Money, Lower Fuel Costs”. November 14, 2011. http://www.consumersunion.org/pub/core_other_issues/018227.html.

Obama Takes Big Step toward Cleaner, Fuel-Sipping Cars

2011-11-16T19:29:08Z

Luke Tonachel, Vehicles Analyst, New York City

The Obama Administration formally proposed new car and light truck fuel economy and carbon pollution standards today. This blog will give you a ‘first read’ on what they mean for consumers, the environment and our energy security.

Overall, the standards are strong. They are a good deal for consumers because owning these cars will be cheaper. Fuel savings will far outweigh the cost of new fuel-saving technologies. Less pollution and oil consumption under the standards will bring huge environmental and national security benefits, too. The standards will also give the auto industry a needed roadmap for another 14 years, which will guide investments, spur innovation and secure jobs.

The official proposal is consistent with the landmark agreement struck by the Obama Administration with domestic and foreign automakers. In July, President Obama announced a fuel economy and carbon pollution program for model years (MY) 2017 through 2025 that will reach 49.6 miles per gallon and cut carbon pollution to 163 grams CO2 per mile.

Below I describe the main components of the rule, including stringency, benefits and costs and advanced technology incentives. I conclude with an outline of the next steps to finalize the standards.

Program Stringency

U.S. Environmental Protection Agency Pollution (EPA) Standard of 163 gram per mile of CO2. The EPA pollution standard is equivalent to a fuel efficiency level of 54.5 mpg if the standard was met all through fuel economy technologies. Model year 2010 passenger vehicles averaged 314 grams per mile and the 2016 standard is 250 grams per mile.
A separate, but jointly coordinated National Highway Safety Traffic Administration (NHSTA) fuel economy standard of 49.6 mpg. The Corporate Average Fuel Economy (CAFE) standard is lower than 54.5 mpg since the fuel economy standard, unlike the EPA standard, cannot consider air conditioning emission reductions and other measures not captured over the official certification test cycle. The current standard for 2011 is 27.3 mpg and the 2016 standard is 34.1 mpg.
Average fuel economy window label value of about 40 mpg, according to the agencies. Because of the differences between the laboratory certification test cycle and the on-road fuel efficiency, drivers can expect to see the average window fuel economy label to be about 40 mpg, compared to today’s average of about 22.5 mpg

Separate car and light truck (SUV, minivans, pickups) standards. The 2025 fleet is expected to reach the 163 g/mi and 49.6 mpg levels when cars and trucks are combined. However, 2025 cars will average about 144 g/mi and 56 mpg, which is an improvement from a MY 2011 standard of 30.2 mpg (equivalent to 294 g/mi). Trucks will average 203 g/mi and 40 mpg, an improvement from MY 2011 standard of 24.1 mpg (equivalent to 369 g/mi).

Program Benefits and Costs

According NHTSA and EPA, the proposed program will:

Save consumers up to $6600 in fuel costs over the life of their vehicle. New fuel-saving, lower emission technologies needed to reach the 2025 standards are projected to cost about $2000. Consumers can expect to see net savings of $4400. For consumers that purchase their vehicle with five-year loan, the fuel savings will outweigh the increased loan cost resulting in lower total bills in the first month.
Reduce U.S. dependence on oil by 1.7 million barrels per day. We estimate that this is more than the U.S. imports from Saudi Arabia and Iraq in 2010 based on Energy Information Administration statistics.
Reduce harmful air pollution that causes climate change by 297 million metric tons per year by 2030, which is equivalent to the annual emissions of 76 coal-fired power plants.

Program Incentives to Accelerate New Technology Deployment

Through the standards proposed today, automakers have several ways to promote new, innovative technologies. Done right, these incentives can accelerate the deployment of technologies that we ultimately need to reach long-term carbon reduction goals in transportation. The agencies have asked stakeholders to submit their views on these proposed program elements and once we thoroughly review them, we will submit detailed comments. Here’s an initial take on some key incentives:

Plug-in electric vehicle emissions accounting: EPA compliance ignores carbon pollution from the production of electricity at the power plant, scoring electric drive miles of plug-in vehicles as 0 gCO2/mi. EPA estimates that this generous incentive could result in about a 5% reduction in total carbon reductions from the 2017-2025 standards but recognizes that it can be helpful in spurring the low-carbon plug-in vehicle market. EPA proposes to cap the 0 gCO2/mi treatment beyond 2021 at 200,000 vehicles per manufacturer. The proposal also encourages early action by raising the cap to 600,000 if a manufacturer produces 300,000 vehicles during 2019 to 2021.
Off-cycle technology credits: The benefits of some fuel-saving technologies cannot be quantified in the standard compliance laboratory test (specified according to a 1975 law). EPA and NHTSA propose to allow automakers to take limited credits for a set of deployed ‘off-cycle’ technologies including active aerodynamics, electric heater pumps, active engine and transmission warm up, high efficiency lights, start-stop systems, and solar roof panels for plug-in vehicle battery charging. What is critical here is that there is a system in place to verify that the technologies actually achieve the emissions reductions commensurate with the credit allowance.
Pickup-truck incentives: Large pickups have historically been laggards in the adoption of fuel efficient technologies. The agencies propose extra credits for mild hybrid pickup trucks provided that the penetration of mild hybrid technologies beyond simple start-stop systems are deployed in 30% of new vehicles in 2017 and ramp up to 80% by 2021, when the credit is removed. Credits for strong hybrid pickup—which have minimum requirements for regenerative breaking and energy recovery—are available through 2025 but also require minimum deployment of at least 10%.

A Chance to Make Your Voice Heard: Next Steps in the Process

As my colleague Roland Hwang points out, there is tremendous support for new vehicle efficiency and pollution standards. But there are more opportunities to weigh in the Administration’s work.

Now that proposal is done, the federal agencies will follow their regular process for finalizing the regulation. The proposal will be published in the Federal Register and a 60 day window will start for the collection of comments (submitted electronically) from the public and interested stakeholders. NHTSA and EPA will also solicit comments in public hearings scheduled for January 17th in Detroit, January 19th in Philadelphia and January 24th in San Francisco. After addressing comments received, the agencies plan to finalize the new standards in July 2012.

Recent history in America has been filled with a culture of driving. We love our cars (but not their fuel or pollution). These standards make them cleaner and guzzle a lot less gas. In the process they will save drivers money. That’s something to cheer about.

Oil Industry Attacks Analysis of Cleaner Future

2011-10-18T20:26:51Z

Luke Tonachel, Vehicles Analyst, New York City

Once again the oil industry is saying ‘no’ to change. They want Americans to stay addicted to their product. Moving to cleaner, alternative fuels is a threat to their bottom line, and they won’t stand for it. Their latest attack is on a recent economic analysis of a clean fuels standard for the Northeast and Mid-Atlantic region. The oil industry says we can’t move to cleaner fuels, but we should decide for ourselves and reject the industry’s forecast for gloom and failure.

As I wrote about previously, an economic analysis conducted by NESCAUM on behalf of 11 regional states concluded that there is a huge up-side to moving off oil. Thousands of jobs could grow from new businesses, we’d have less pollution and our economic security would be strengthened by reduced dependence on the volatile oil market.

The oil industry charges that the economic analysis uses assumptions that are not based on today’s market. An IHS report funded by the oil industry’s Consumer Energy Alliance front group claims that American companies couldn’t possibly achieve the price and volumes of advanced biofuels modeled by the states.

The oil industry misses the point. A world with a Clean Fuels Standard for the Northeast and Mid-Atlantic is a new future. The economic analysis of a regional Clean Fuels Standard (CFS) assumes that the policy takes us in a new direction, away from the pollution and risks of oil, and incentivizes investment and deployment of clean fuels.

The market-based CFS policy provides a long-term signal to alternative fuel entrepreneurs, giving the certainty needed to bring their products to market in larger volumes. We know electric vehicles are already starting to hit the road and cellulosic biofuels are being produced in small volumes. The CFS would provide a more even playing field in the transportation fuels market for the clean fuels.

The NESCAUM economic analysis looks at the costs and benefits of aggressively getting off oil and cutting carbon pollution. The analysis looks at multiple scenarios and puts bounds on the potential outcomes of a CFS. A CFS sets a technology-neutral requirement to reduce the carbon intensity of fuels over time. The very likely outcomes cut pollution and oil dependence while keeping more American fuel dollars in this country.

The most costly thing we can do is continue our heavy reliance on oil. The business-as-usual favored by the oil companies will line their pockets at the expense of consumers, our security, our economy and our environment.

The CFS is not the best for boosting sales of oil and that has the oil companies in full attack mode. The CFS may not be good for big oil, but it would be good for all of us that live here in the Northeast and Mid-Atlantic states.

It's Official: N.E. Clean Fuels Standard Is a Win for the Environment, Businesses and Jobs

2011-08-19T18:08:35Z

Luke Tonachel, Vehicles Analyst, New York City

Yesterday, it became official: 11 Northeast and Mid-Atlantic states officially published an economic analysis of a Clean Fuels Standard (CFS) for the region, following a leak of the report earlier in the week.

The CFS would promote investment in transportation fuels cleaner than gasoline and diesel, leading to less pollution, new business opportunities and more American jobs.

Specifically, as described in posts earlier this week (here and here), the study shows that the CFS could:

Create up to 50,000 jobs annually
Increase personal disposable income in the region by up to $3.2 billion
Grow our state economies by up to nearly $30 billion dollars
Reduce our region's dependence on oil by as much as 29 percent
Reduce harmful air pollution that causes climate change up to 9 percent

The CFS would achieve these results with a market signal that drives down carbon pollution from today’s oil-based fuels by 10 percent over 10 years toward cleaner alternatives like electricity, natural gas and advanced biofuels.

This is good news for the business community, job-seekers in the region, environmental advocates and all of us who want America to become less dependent on oil for our energy.

That’s why this news has been welcomed by business leaders and investors focused on a more sustainable future. A group of forward-thinking investors comprising the Ceres Investor Network, for example, notes that the standards would provide market clarity for directing investments into clean energy and delivering long-term monetary value.

And veterans heralded the Clean Fuels Standard as good for our national security because it will help cut our oil dependence and carbon pollution. Further, it will help the U.S. stop sending a billion dollars each day overseas for oil and instead invest it at home.

Meanwhile, who are the naysayers of a cleaner and stronger path forward? Predictably, it’s the industries that want to protect their own multibillion dollar dirty fuel profits at our expense – the oil companies, whose views are often represented by a front group called the Consumer Energy Alliance. This group has been most prominently involved in promoting dirtier fuels like tar sands that risk our security and climate – which a CFS will help us move away from.

The CFS can growth the economy and help the planet. We can’t let the oil companies decide our future. It’s time for the Northeast and Mid-Atlantic states to continue the push forward and demand cleaner transportation fuels for our health, our economy and our national security.

New Study: Clean Fuels Are Good for the Economy in Northeast, Mid-Atlantic

2011-08-17T12:35:40Z

Luke Tonachel, Vehicles Analyst, New York City

The state of Maine recently released an economic analysis of a regional clean fuels standard for 11 states in the Northeast and Mid-Atlantic.

The verdict: The region can cut air pollution, slash our dangerous dependence on oil, bring in billions of dollars to local economies, and create thousands of American jobs under a Clean Fuels Standard (CFS).

This is welcome news as drivers struggle with gasoline prices that are up nearly a $1 per gallon from this same time last year. And it’s particularly significant here in the Northeast and Mid-Atlantic, where transportation is the single largest emitter of carbon air pollution and nearly 100 percent of our fuels are imported from outside the region.

Fortunately, a clean fuels standard can promote stability in fuel costs, while improving our self-sufficiency with cleaner, domestic fuels and put us on a pathway away from oil.

How it works:

Under a CFS, our region follows a gradual trajectory away from today’s reliance on oil as a transportation fuel, to fuels that emit less carbon dioxide air pollution. The clean fuels standard doesn’t ban any single fuel or require use of any single fuel. Rather, it sets a cleaner performance threshold for transportation fuels, which encourages innovation and investment in all fuels cleaner than petroleum, and lets the market decide which ones flourish. Clean, low-carbon fuel examples include electricity for electric vehicles and advanced biofuels.

And on the flip side, it encourages companies to move away from the dirtiest sources, like fuels made from tar sands that emit more carbon than conventional gasoline fuel.

Economic benefits:

The economic analysis, led by 11 Northeast and Mid-Atlantic states and the Northeast States for Coordinated Air Use Management (NESCAUM), evaluated the benefits of cutting the carbon intensity by 10 percent in 10 years in cases with both low and high oil prices. In all cases, the results are positive. In just the 10th year, the study found the following:

Employment increases by 9,490 to 50,700 jobs. Gross regional product, a measure of the states’ economic output, increases by $2.1 billion to $4.9 billion.
Household disposable income increases by $1 billion to $3.3 billion.
Gasoline and diesel demand drops 12 to 29 percent.
Carbon pollution from transportation is cut by 5 to 9 percent.

Looking over the whole 10-year period, the net benefits range from $26 billion to $55 billion when including reductions in petroleum consumption and the costs of clean fuels, vehicles and infrastructure.

Job growth comes from the provision of cleaner fuels and their infrastructure as well as the increase in disposable income being reinvested in the economy. Electricity and natural gas for transportation need charging and fueling stations and biofuel manufacturing facilities need to be built, supplied with biomass, and operated. Industry sectors dependent on household and business spending, such as healthcare, finance and insurance also see a boost.

As my colleague Nathanael Greene points out, it’s no surprise that the oil industry, which has invested heavily in the status quo of dirty fuels and is trying to bring in more, dirtier tar sand fuels, is already trying to dismantle clean fuel policies.

We cannot let Big Oil stand in the way of American jobs and economic progress. A Clean Fuels Standard can put us on the right path to a stronger, more secure economy and cleaner air.

New Report: Strong Vehicle Standards are Key to U.S. Jobs

2011-08-09T17:20:00Z

Luke Tonachel, Vehicles Analyst, New York City

UPDATE, Aug 10: NRDC, UAW and NWF, identified a mistake in the supplier report issued yesterday. The jobs in North Carolina were overestimated. The actual number is 5,928. The corrected figure brings to 151,168 the total number of U.S. workers at automotive suppliers that make components for clean, fuel-efficient vehicles. The post below has been updated to reflect these changes and the interactive map and PDF of the report have been updated at http://www.nrdc.org/transportation/autosuppliers/.

On Thursday, President Obama will visit a Johnson Controls, Inc. advanced vehicle battery manufacturing plant in Holland, Michigan to speak about how strong fuel economy and carbon pollution standards can boost American jobs. We agree. A new report released today by NRDC, the automotive workers union UAW and the National Wildlife Federation shows that the production of cleaner cars and trucks is employing over 150,000 workers across the United States today. As vehicle standards ramp up and the production of clean vehicle technologies grow there is tremendous potential for job growth.

View an interactive version of this map at http://www.nrdc.org/transportation/autosuppliers/, where you can select individual facilities to find the company name, products and employment.

The new NRDC-UAW-NWF report, titled “Supplying Ingenuity: U.S. Suppliers of Clean, Fuel-Efficient Vehicle Technologies,” catalogs over 300 companies with over 500 facilities across 43 states and the District of Columbia that are supplying the parts and components that make cars and trucks go farther on a gallon of fuel and emit less of the pollution that threatens our climate and health.

These suppliers and automaker component operations develop and produce the critical components for traditional, but advanced internal combustion engines and vehicles, for conventional hybrids and for emerging plug-in electric vehicles. Technologies include advanced combustion controls, turbochargers, improved transmissions, lightweight structures, electric traction motors, electronic controllers, advanced battery materials, traction batteries, and smart charging systems.

The states with the largest employment in the fuel-efficient parts supply chain are not just the traditional auto assembly states. While Michigan and Ohio are the top employers, thousands are also employed in North Carolina, Kentucky, Pennsylvania, Illinois, Virginia, Arizona, Texas and Alabama as well as other states.

The supply chain also suggests a melding of Midwest manufacturing prowess with West Coast Silicon Valley-type entrepreneurship. California is second only to Michigan in terms of number of facilities but the California facilities are typically smaller, indicating the start-up nature of new entrants into the automotive space driven by the need for fuel saving technologies, especially with hybrid and plug-in vehicles.

Fuel-efficient and low-emission vehicle component suppliers and automaker component operations are on the front lines of innovation, driven in part by the ramp up in fuel economy standards to 34.1 mpg by 2016 and expectations of further increases. A prime indicator of new innovation is patents. As the report notes, “In 2010, U.S. patents awarded for hybrid and electric vehicle technologies reached an all-time high, jumping 60 percent from the year before. General Motors, Toyota and Ford held the first, second, and third spots, respectively, for the most new patents in 2010. Largely due to the investments in the auto sector, Michigan is the home of the most U.S. clean energy patents granted from 2002 to 2010.”

Strong vehicle efficiency standards provide suppliers with the needed certainty that their investments in innovative, fuel-saving technologies will pay off. While today’s high oil prices may fuel current demand for clean, efficient vehicles, businesses greatly increase their risks if they rely solely on the volatile oil market to plan for the future.

Improved car and light truck standards to reach 54.5 mpg by 2025 announced recently by President Obama give suppliers a long-term signal for investment which leads to more jobs. Suppliers will make fuel-saving technologies that will be placed in increasing portions of the vehicle market. As the demand for the technologies grow, more engineers, managers, and construction and production workers will be needed to produce them. The report released today identifies over 150,000 workers building technologies mainly for the current vehicle pipeline, for which automakers typically plan three to five years ahead. Supplier employment is very likely to jump much higher with the upcoming, more forward-looking 2025 car standards and the first-ever fuel efficiency and carbon pollution standards for heavy trucks.

Developing and producing technologies that cut fuel consumption and pollution from vehicles represents an important opportunity to maintain and create domestic jobs. Suppliers employ more than 427,000 (or 61 percent) of the 700,000 direct workers in the auto industry. Recently announced strong standards provide the impetus for greater innovation that can lead to more jobs. (However, as my colleague David Doniger points out, Congressman Issa has launched a recent attack on the standards, which could undermine auto sector job growth.)

Strong standards are also the cheapest and fastest way to cut our nation’s oil dependence while reducing dangerous pollution that disrupts our climate. With more efficient vehicles we can improve our national and economic security. Instead of buying more oil, we’ll keep billions of dollars to invest in American jobs. Strong standards will put automotive engineers and production workers on the job, supplying ingenuity for cleaner, more fuel-efficient vehicles.

Obama Finalizing First-ever Efficiency and Carbon Pollution Standards for Heavy Trucks, Saving Money and Boosting Jobs

2011-08-08T12:30:52Z

Luke Tonachel, Vehicles Analyst, New York City

Tomorrow, President Obama will announce new fuel efficiency and carbon pollution standards for heavy-duty trucks. This is a historic step forward because these are first-ever standards of this type and they start the of process of what are expected to be ongoing improvements in heavy truck performance. The standards will result in freight moving farther on a gallon of fuel and trucks that are cleaner, adding less carbon pollution to the atmosphere.

The Tuesday announcement marks the finalization of rules that were initiated in May 2010 to cover model years 2014 to 2018. By 2030, the standards are expected to cut annual emissions by over 50 million metric tons of carbon dioxide and save over 300,000 barrels of oil per day. The truck standards are the third of a series of vehicle efficiency and carbon pollution improvements that also includes two sets of standards for cars and light trucks that will reach 35.5 mpg in 2016 and 54.5 mpg in 2025. Collectively, the car and truck standards comprise the National Program for vehicle efficiency and are a giant step toward reaching President Obama’s goal of cutting oil imports by one-third by 2025 and for reducing heat-trapping greenhouse gas emissions.

The trucks covered by the Heavy Duty National Program include the tractors of combination tractor-trailers (“18-wheelers”), city buses, garbage haulers, delivery vehicles and work trucks over 8,500 lbs. These trucks consume about 20 percent of the oil used in the transportation sector and emit about 20 percent of transportation sector carbon pollution yet trucks represent only 4 percent of the vehicles on the roads. They are truly the energy hogs of American highways but they will become more efficient in the near future.

Improvements to lower emissions and fuel consumption will come from more sophisticated combustion engine systems and controls, aerodynamic adjustments, fuel-efficient tires, and fuel-sipping auxiliary power units for idling, all of which are off-the-shelf technologies.

According to the standards as proposed jointly by the Environmental Protection Agency and National Highway Traffic Safety Administration last October, trucks will cut carbon dioxide pollution and fuel consumption by 7 to 20 percent, as shown in the table below. We expect the final rules released tomorrow will have the same stringencies and achieve at least the same level of benefits. Note that the savings below were calculated by the federal agencies using a fuel price forecast that assumes diesel at less $3.00 per gallon at the pump today and $3.41 in 2018. Diesel prices, however, are already much higher--averaging about $3.90/gal for the last month—making the payback for more fuel-efficient technologies even faster than projected in the proposal.

Data from EPA, NHTSA Notice of Proposed Rulemaking, 75 Federal Register at 74152, available at http://www.epa.gov/otaq/climate/regulations.htm#1-2.

A new long-haul tractor-trailer typically averages over 100,000 miles per year and consumes at least 15,000 gallons of fuel per year. At $3.50/gallon, a 20 percent reduction in fuel consumption as a result of the standards would save $10,700 in expenditures at the pump in one year. Similarly, a heavy-duty pickup truck averaging 14 miles per gallon and traveling 13,000 miles per year will see annual fuel savings of $325 with just a 10 percent drop in consumption.

Diesel fuel prices are about a dollar more than a year ago and stronger standards couldn’t come at a more important time. By making trucks more efficient, the standards give the truckers and the businesses that depend on them the tools they need to save on fuel.

We all depend on trucks to deliver the goods we consume. Making trucks more fuel efficient means the delivery costs of goods is less influenced by volatile world oil prices, which is good for consumers as well as businesses.

The standards are good for truck engine and vehicle manufacturers and jobs too. By setting a stable signal to the market, the standards provide the certainty that industry needs to invest in cleaner, fuel-savings technologies. Adding more technology to trucks means more jobs to build and install the equipment. And just like in the automobile industry, strong U.S. standards can help make U.S. manufacturers world leaders in innovation.

We expect that the standards announced tomorrow are the first in an ongoing set of improvements that extend beyond 2018. The next round of heavy truck standards can continue the trend to make the way we move our freight better for the planet, businesses, consumers, American jobs and our nation’s security.

Improved Standards for Cars Will Cut Oil Dependence and Pollution while Saving Consumers Billions at the Gas Pump

2011-07-28T21:40:33Z

Luke Tonachel, Vehicles Analyst, New York City

UPDATE, July 29, 2011: I snapped the picture below this morning as President Obama described new clean, efficient vehicle standards. NRDC Executive Director Peter Lehner and I had the great pleasure of attending today’s exciting and important event. Very cool!

Tomorrow, President Obama is expected to announce a plan to raise the average fuel economy of new cars, SUVs, minivans and pickups to the equivalent of 54.5 miles per gallon (mpg) by 2025. The new vehicle standards, set to be finalized next summer, will give consumers more choices of clean, fuel-efficient models leading to dramatically less carbon pollution and gasoline consumption.

The new standards apply to model years 2017 to 2025 and extend the light-duty vehicle National Program that currently ramps up fuel economy to 34.1 mpg and reduces carbon pollution to 250 gCO2-equivalent per mile (gCO2e/mi) by 2016. Today’s new cars and light trucks average about 28.3 mpg and 314 gCO2e/mi in the EPA standards test. Under the Administration’s plan, the 54.5 mpg target is equal to an emissions level of about 163 gCO2e/mi, and achieving the target will result in a 48% reduction in carbon pollution and about a 43% reduction in fuel consumption compared to today’s vehicles.

For consumers, the more efficient vehicles mean less money is spent on gasoline. Drivers can expect to save over $3,000 over the life of the vehicle, even when considering the added cost of the cleaner, more fuel-efficient technologies. New fuel savings will pay for the added technologies in about 4 years.

Nationally, savings from fewer trips to the gas pump under the new standards could total over $80B annually by 2030. Instead of padding the profits of oil companies or propping up petro-dictators overseas, that money could be invested in the U.S. economy, driving growth in jobs and prosperity. A recent report conducted by UAW, NRDC and the Center for American Progress showed that reaching 40 mpg by 2020, in line with the standards announced today, could create 150,000 domestic jobs.

The new standards are a good for our security and environment. Based on analysis conducted jointly with the Union of Concerned Scientists, we estimate that by 2030, the standards will cut U.S. oil consumption by as much as 1.5 million barrels per day, which is equivalent to U.S. imports from Saudi Arabia and Iraq in 2010. The standards will also reduce dangerous carbon pollution by as much as 280 million metric tons annually by 2030, equivalent to shutting down 72 coal-fired power plants.

Reaching 54.5 mpg by 2025 is a strong step forward for the U.S. economy and security and for the planet. More work lies ahead, however. The Administration and State of California must work together to convert the vision into robust rules, rules that avoid large compliance loopholes that could significantly reduce the potential savings. The U.S. has a great opportunity and the President is putting us on the right path.

Study Follows Auto Industry Pattern of Overestimating Costs of Clean, Efficient Vehicles

2011-06-15T17:31:33Z

Luke Tonachel, Vehicles Analyst, New York City

The Center for Automotive Research released a new version of a previously discredited analysis claiming that the cost to meet improved fuel economy and pollution standards for cars and light trucks in 2025 will be about double those estimated by three government agencies. The estimates follow an auto industry pattern for overestimating regulatory compliance costs by two to ten times, as my colleague Roland Hwang points out in his blog.

With the study, the Center for Automotive Research (CAR), which receives funding from the automobile industry, shows little regard for automotive engineers’ ability to reduce the costs of technology from today’s levels. The CAR study relies on the findings of a National Academies of Science study of near-term (2009 to about 2014) technology costs. The standards analyzed by CAR, however, ramp up over nine model years from 2017 to 2025. During this period, there is ample time for engineers to improve technology and reduce costs.

We are already seeing progress. Ford Motor Company recently announced that their new C-Max 5-passenger hatchback, going on sale next year, will have a hybrid system that is 30 percent less expensive than the system included in their 2010 Ford Fusion Hybrid. Hyundai’s new Sonata also features a new hybrid configuration that cuts cost. CAR discounts the ability of automakers to effectively downsize engines for efficiency while meeting consumer needs for power but the EcoBoost technology employed on the 2011 Ford Explorer and F-150 pickup trucks are clear examples of success in this area.

CAR claims that reaching a standard of 62 mpg in 2025 must rely primarily on plug-in hybrid electric vehicles (64 percent of sales), which increases CAR’s overall cost assessment. Analysis by the Department of Transportation, Environmental Protection Agency and the State of California shows that 62 mpg can be reached with only modest plug-in electric vehicle penetration of 4 to 16 percent. Non-pluggable hybrids, already shown to be cost-effective today are likely to be a main part of a future clean, high-efficiency fleet, as shown by the agency analysis and our analysis. In fact, today’s Toyota Prius (which is scored for fuel economy regulatory compliance at 71 mpg) would already meet a 62 mpg standard.

U.S. automakers are bouncing back from record losses in 2008 and 2009 in large part due to strong fuel economy and pollution standards adopted for model years 2012 to 2016. Auto jobs are recovering and Ford’s recent announcement highlighted more jobs to come as they triple production capacity of hybrids and plug-in vehicles over the next two years.

Strong standards reaching 60 mpg in 2025 are good for jobs, our environment and energy security. A 60 mpg standard will give automotive engineers the certainty they need to innovate and deliver what consumers want at the price they will pay. The folks at CAR—and their supporters—should give auto engineers more credit for what they can do to cut fuel consumption given the right signal.

First-ever Fuel Efficiency and Carbon Pollution Standards for Heavy Trucks Move Closer to Adoption

2011-06-07T15:07:14Z

Luke Tonachel, Vehicles Analyst, New York City

This week, the Department of Transportation and Environmental Protection Agency took one of the final steps toward adopting the first-ever standards to improve fuel-efficiency and cut carbon pollution from highway trucks by seeking final approval from the White House Office of Management and Budget. This is a welcome development toward cleaning up our freight transport and easing the pain at the pump for truckers and businesses.

With diesel fuel prices hovering around $4 per gallon—about a dollar more than one year ago—stronger standards couldn’t come at a more important time. By making trucks more efficient, the standards give the truckers the tools they need to save on fuel.

As I’ve said before, heavy trucks and buses are the energy hogs of America’s roadways, but they don’t have to be. Well-known technologies can make trucks, including construction-site pickup trucks, delivery vans, transit buses, garbage trucks and long-haul 18-wheelers, go further on a gallon of fuel. Engine and transmission improvements, fuel-efficient tires and aerodynamic styling can all deliver significant savings at the pump for drivers and for the companies that depend on them to move their products. According to the agencies’ original proposal, a $6,000 up-front investment in a long-haul tractor-trailer rig can result in fuel savings of over $73,000 over the life of the truck.

The standards are good for the truck manufacturers and jobs too. The standards, which initially cover model years 2014 to 2018, give the industry needed certainty to invest in cleaner, fuel-savings technologies. Adding more technology to trucks means more jobs to build and install the equipment. And just like in the automobile industry, strong U.S. standards can make U.S. manufacturers world leaders in innovation.

Truck standards are an important part of a suite of policies that can dramatically cut U.S. oil consumption and meet the Obama Administration’s goal of reducing imports by one-third by 2025. Trucks consume more than 2 million barrels of oil a day, or roughly 20 percent of all transportation fuels so it’s very important that these initial truck standards get finalized as expected in July.

The work is not done, however. EPA, DOT and the California Air Resources Board expect to propose new fuel economy and carbon pollution standards in September for cars and light trucks, which consume about 60 percentof the petroleum used in the transportation sector. To meet the Administration’s oil reduction goals and save automobile drivers the most money at the pump, the agencies should follow the new truck standards with car standards that reach 60 mpg in 2025.

Government Fleet to Include Plug-in Electric Vehicles

2011-05-26T16:07:05Z

Luke Tonachel, Vehicles Analyst, New York City

Last Tuesday the federal government announced that the General Services Administration (GSA) will launch a pilot program to incorporate plug-in electric vehicles into the Federal fleet. The GSA manages over 600,000 federal government vehicles, coast to coast, and is the nation’s largest vehicle operator.

Initially the GSA will purchase 116 electric vehicles, including the Chevrolet Volt, Nissan Leaf, and Think City EV. These plug-in vehicles are highly energy efficient and cheap to operate. According to DOE and EPA data, the Leaf, powered by electricity, costs roughly $0.94 to drive 25 miles.

These cars will go to 20 agencies, including the Department of Energy, and will be located in Washington, DC; Detroit, MI; Los Angeles, CA; San Diego, CA; and San Francisco, CA. President Obama also directed federal agencies to ensure purchases of cars and light trucks vehicles are 100% “alternative fueled vehicles, such as hybrid or electric, compressed natural gas, or biofuel” by 2015.

The GSA already has more than 9,000 hybrid-electric vehicles in its fleet. Yesterday’s announcement by the GSA is another important step in this direction to cut government fleet fuel use and incentivize automakers to produce highly efficient, low cost fuel vehicles, in greater quantity, bringing down the cost for all Americans.

This blog was authored by Brian Kauffman, NRDC intern

New Labels Expected to Boost Information for Consumers Hungry for Clean, Efficient Vehicles

2011-05-24T12:56:35Z

Luke Tonachel, Vehicles Analyst, New York City

This week, federal agencies are expected to release a revamped window label for new cars and light trucks starting with model year 2012. With drivers looking for relief from high gasoline prices, it’s important that the improved label gets out as soon as possible, even if not perfect. The new label should enable consumers to more easily find a vehicle that meets their needs and causes less pain at the pump.

A very important improvement we expect is that new the label compares a vehicle’s efficiency and pollution to all cars and light trucks offered for that model year. According to surveys conducted by EPA prior to their proposal, over 60 percent of car buyers considered more than one vehicle type or class, which means a single scale for all vehicles would be extremely useful.

Consumers are hungry for vehicles that sip instead of guzzle fuel. Sales of hybrids and other fuel-efficient vehicles are hot. And surveys show that consumers want future innovations in efficiency with strong support for fuel economy standards that reach 60 miles per gallon (mpg) by 2025.

Our preferred approach for labeling vehicle performance is with a bold letter grade on the window sticker, a format that was originally proposed by the EPA and National Highway Traffic Safety Administration (NHTSA). A letter grade system that puts all vehicles on the same rating scale would make it simple to find the cleanest, most efficient vehicle that meets one’s driving needs.

Recent articles previewing the release of the final label claim that the agencies left out the letter grades. Assuming the agencies instead go ahead with the second of the two proposed designs (Label 2), some useful information will have been added. Here are some highlights of Label 2:

Comparison across all vehicles in terms mpg and pollution: A vehicle shopper can see how one car compares with the range of vehicles available in that model year. Label 2 also compares mpg and pollution within the vehicle’s class (small car, midsize car, large car, minivan, pickup, station wagon, SUV, and van).
Emphasis on cost: Especially when gas prices are high, the cost of operating a vehicle provides an important and useful metric. Label 1 (the letter grade version) provided an even more useful five-year cost estimate which was compared to that of the average vehicle so the consumer immediately knew if the vehicle they were looking at would save them money or cause them to spend more to operate compared the average vehicle available. A five year perspective can also help consumers see how accumulated fuel savings can more than offset potential higher up-front purchase costs of a more efficient vehicle.
Addition of important environmental impacts, including carbon dioxide and smog pollution: Including environmental impacts is a requirement of the legislation that calls for a revision of the label. Consumers looking for clean vehicles need to know how one vehicle compares to the rest in the model year and emissions performance allows a simple comparison regardless of fuel type (gasoline, diesel, electric, ethanol, compressed natural gas, hydrogen, etc.). The letter grade was a very prominent indicator of environmental performance. Label 2 has only a more modest display of emissions but includes the important comparison to all vehicles.

Missing from both the proposed Label 1 and Label 2 was an accurate description of emissions from plug-in electric vehicles. When operating on electricity from a battery, plug-in electric vehicles have no tailpipe emissions, but charging the vehicle batteries contributes to emissions at the electricity generation plants. This fact is common sense to most consumers and information about emissions from plug-in electric vehicle charging should be clearly denoted on the label. We’ll see if the agencies have made the important modification to include charging emissions.

Faced with high and volatile gas prices and on-going auto-related carbon and smog pollution, consumers need more options of clean, efficient vehicles. Starting next year, as new fuel economy and greenhouse gas standards start to ramp up from 2012 to 2016 the improved labels can help consumers identify the best performers in the showroom. Going forward, improved fuel economy and carbon pollution standards to reach 60 mpg by 2025 can ensure cleaner, fuel-sipping vehicles continue to reach the showroom. The Obama Administration should grab the opportunity to provide consumers the biggest relief from pain at the pump by setting a 60-miles-per-gallon standard.

With 60 MPG, U.S. Automakers and Workers Can Lead World in Vehicle Manufacturing

2011-05-11T13:55:09Z

Luke Tonachel, Vehicles Analyst, New York City

During his most recent weekly address, President Obama stated that the U.S. can “out-innovate and out-compete” the rest of the world by investing in and adopting clean energy. The President can realize this vision and grow good jobs in the U.S. automotive industry by setting standards that reach 60 miles per gallon (mpg) by 2025. Around the world, nations concerned about oil dependence and carbon pollution are ramping up efforts to make cars and trucks more efficient. If our standards fall behind, so will our technology leadership.

We already know high and volatile gas prices can affect the domestic car business. When prices spiked in 2008, car buyers shunned large, gas-guzzling SUVs that were the foundation of the Detroit 3’s profits. Buyers instead flocked to foreign models, like fuel-efficient cars and crossovers, built to go further on a gallon of gasoline. It’s not surprising that foreign automakers had a stable of vehicles to meet consumer needs. For years, companies based outside the U.S. have been building vehicles that meet more stringent efficiency and pollution standards.

The graph below, produced by the International Council on Clean Transportation, demonstrates that the U.S. has been a laggard on standards. Asian and European car makers have consistently been subject to stronger requirements at home and have been first movers in efficient technologies such as hybrids and advanced diesels.

The U.S. is making some progress but it could be short-lived. Between now and 2016, the first phase of the National Program for clean cars requires vehicles sold in the U.S. to reach 34 mpg. The Obama Administration, working with the State of California, is now considering a second phase of the program out to 2025 with annual improvements ranging from 3% to 6%.

According to analysis by the U.S. Department of Transportation, Environmental Protection Agency and California Air Resources Board, a weak 3% trajectory can be achieved primarily through modest improvements to conventional vehicles. Hybrid-electric vehicles would not need to expand from the current 3% of annual sales.

Only the 6% scenario, reaching about 60 mpg in 2025, will keep the U.S. on-pace with proposed efficiency increases in the EU and China. And there are at least two reasons why this is important for U.S. competitiveness in the global car market.

First, a weak U.S. requirement can be a barrier to the export of U.S.-made vehicles to other regions. That’s a big missed opportunity. Both the EU and China have higher annual sales than the U.S. and China’s market will grow steadily as its economy continues to rapidly expand. These foreign markets, however, demand more efficient vehicles than those currently required in the U.S. market. Strong U.S. standards can spur U.S. production of efficient technologies to sell abroad.

Second, only a strong standard like 60 mpg will catalyze growth in the nascent U.S. plug-in electric vehicle industry. The timing couldn’t be more important. The Chinese, in particular, are charging forward to win the global race in plug-in vehicles. Under their New Energy Vehicle Development Plan, the Chinese government is investing $15 billion in its auto industry with a focus on electric vehicles. China plans to put 500,000 plug-in electric vehicles on its roads by 2015, and while this is half the current U.S. target of a 1 million vehicles by 2015, the Chinese also have a goal of 5 million vehicles by 2020.

A 6% per year, 60 mpg standard is critical to the U.S. auto industry competiveness since it is the only level that creates the regulatory certainty necessary to ensure that the U.S. auto industry maintains and grows its plug-in electric vehicle investments.

A 60-miles-per-gallon standard is the clear choice for keeping the U.S. globally competitive in clean energy. It’s the clear choice for U.S. jobs. (It’s also the clear choice for dealing with high gas prices and our oil dependence.) The Obama Administration should seize the opportunity to out-compete the rest of the world by setting clean car standards that reach 60 miles per gallon by 2025.

Innovation Motorcade: Electric Drive in the Nation's Capitol

2011-04-19T17:13:04Z

Luke Tonachel, Vehicles Analyst, New York City

This morning, Secretary of Energy Steven Chu kicked-off the Innovation Motorcade from the Department of Energy Headquarters in Washington. This was not a typical motorcade for the Capitol City. Instead of long black limos with government plates, this was a parade of quiet, clean electric vehicles occupied by citizens proud to be driving around on little, if any, gasoline.

President Obama recently announced a goal to cut our oil imports by one-third by 2025. We can meet the President’s goal using efficiency in our transportation sector. Strong new vehicle fuel efficiency and lower pollution standards—reaching 60 mpg by 2025—can dramatically cut our oil consumption and clean our air.

Secretary Chu agrees. When asked today about what we can do cut our oil dependence and deal with high gas prices the Secretary responded: 1. Improve fuel efficiency of new vehicles and 2. Deploy electric vehicles. During his remarks, the Secretary reiterated the President’s goal to put 1 million plug-in electric vehicles on the road by 2015, which my colleague Simon Mui points out is a very achievable target.

Strong vehicle efficiency standards are key to bringing plug-in vehicles to the mass market. And while gas prices are high today we don't know what future years will bring. We are dependent on an extremely volatile global oil market and we don’t know what future prices will be. Strong standards, however, provide market certainty needed by automakers to continue to invest in plug-in electric and other innovative vehicles. A weak standard, conversely, will do nothing to incentivize plug-in electric vehicles and leave consumers will fewer choices in fuel-efficient vehicles.

The Secretary said we are in a global race to be a leader in clean energy technology. We need to seize the moment and take leadership. We are already lagging other countries in auto efficiency and carbon emission standards. But we can catch up with strong model year 2017 to 2025 standards.

Along with efficiency standards, public-private partnerships can help drive deployment of advanced, electric-drive vehicles and their infrastructure. Secretary Chu pointed out that past partnerships are responsible for cultivating American invention and creating market dominance in the semiconductor, computer and aviation industries. Due partly to existing investments by both DOE and the private sector, Secretary Chu expects battery costs to drop precipitously and that electric vehicles will be at cost parity with internal combustion engine-only vehicles by the end of this decade.

He said new public-partnerships are being formed. Today he announced a partnership between DOE and Google in which the internet giant will map out electric vehicle charging stations so you find them on your smart phone. The Secretary also said DOE is making $5 million available to local communities to help them plan and deploy plug-in vehicle infrastructure.

Getting the infrastructure ready for electric vehicles is an important part of wide-spread plug-in electric vehicle deployment. We need charging systems that are easy to use and draw power from excess electricity production capacity such as at night. Infrastructure deployment will be among the topics discussed at this week’s annual DC electric-drive conference sponsored by the Electric Drive Transportation Association. The conference brings together automakers, charging infrastructure companies, public interest groups and policymakers to share ideas about moving electric-drive vehicles into the mainstream.

Today’s clean car and truck parade is a clear example that we can innovate to solve our oil addiction. We need to grab the moment by setting strong efficiency and pollution standards that will encourage clean advancements like plug-in electric vehicles and we need to execute plans to deploy needed infrastructure. With the right policies clean, efficient vehicles can be more than just part of an oil-free parade; they can be an option for every household. That’s good for consumers, the environment and our nation’s security.

Obama's Oil Savings Plan at Work: UPS

2011-04-01T12:32:07Z

Luke Tonachel, Vehicles Analyst, New York City

In a speech in Georgetown earlier this week, President Obama restated his goal to cut oil imports by a third by 2025, and laid out a plan to get there: by increasing vehicle carbon pollution and fuel economy standards and expanding domestic drilling. (My colleague Deron Lovaas has pointed out earlier that expanding drilling ain’t gonna work, and the President agrees that “it’s not a long term solution to our energy challenge.”)

Raising carbon pollution reduction and fuel economy standards, on the other hand, is a proven solution. Setting a high federal performance bar based on carbon pollution cuts and fuel economy boosts gives Detroit the confidence it needs to invest in innovation and speed better cars to market. According to the White House, the new standards enacted last year will save 1.8 million barrels of oil and save consumers about $3,000 dollars over the lifetime of the plan. Under the president’s direction, federal agencies are working on a proposal to raise the mileage bar even higher this fall. The Administration has also introduced the first-ever carbon pollution and fuel efficiency standards for medium and heavy-duty trucks. In his speech yesterday, the president also announced a new federal directive for all government agencies to purchase only alternative fuel, hybrid or electric vehicles by 2015.

The private sector is already starting to embrace these vehicles. UPS boasts a fleet of nearly 2,000 alternative fuel and alternative technology vehicles, one of the biggest in the business. The company has taken a lot of smart measures to save fuel, and the President will visit a UPS plant in Landover, Maryland today to see their policies in action.

UPS already has a no-idling policy, which saves fuel and cuts down on emissions. They use a route-planning software system that minimizes the number of left turns a driver has to make – this simple metric cuts down on waiting time at intersections, and has saved the company 100,000 metric tons of carbon emissions since the software was implemented in 2004.

Photo: http://pressroom.ups.com/Image/Electric+Package+Car

Where the company gets really ingenious is in their willingness to explore alternative vehicles. They were actually using electric vehicles as far back as 1930s, testing them out in New York City. Today, they’re using electric vehicles in London and Manhattan, and tractors that run on liquefied natural gas in Northern California. They’re running 250 hybrid-electric vehicles across the country, reducing fuel consumption by 220,000 gallons annually, and they are expected to deploy 130 more this year.

UPS is also testing out hydraulic hybrids, a pretty cool technology that a lot of people don’t know about. Instead of storing energy in a battery like a conventional hybrid, these vehicles use a simple hydraulic pump and motor to capture energy from braking and move the wheels. Hybrid hydraulics emit 40 percent fewer pollutants than conventional UPS trucks, according to the EPA.

The sooner we get more of these vehicles on the road, the more secure our nation will be.