Car Allowance Rebate System (CARS)

1. Car AllowanceRebate System (CARS) Trade in old vehicles for newer, more fuel efficient vehicles with a $3500-4500 rebate • Avgswitch: 16 mpg 26 mpg • ~750,000 oldvehiclesswapped • 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

2. Economic Incentives for Improved Vehicle Efficiency

3. 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.

4. 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

5. Electric Power for PHEVs(Plug-In Hybrid, Electric Vehicles) Policy Report discussion by Hunter Estes

6. 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)

7. EPA Standards for Heavy Vehicles Zachary Houston CHE 359

8. Contents • Introduction to Fuel Economy and Standards • Improvements in Trucking Industry • “Improvements” in Large Truck Industry • Conclusions

9. What about CAFE Standards? • Trucks larger than 8,000 lbs. gross weight have been exempt from NHTSA CAFE standards since inception • Buses • Semi-trucks • Large Vans • Large Trucks • Utility Vehicles

10. But 10% is not much. • 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.

12. The Trucking Industry Drives Economy • 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.

13. Obama Makes Progress through EPA • 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.

14. “Improvements” to Large Truck Industry

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

16. It’s Not Rocket Science • Average fuel economy 11 mpg • Average Passenger Capacity 4 People • One 2500 series truck 5 Prius

17. Sources • http://www.truckinfo.net/trucking/stats.htm • http://www.npr.org/templates/story/story.php?storyId=130787713. • http://www.nhtsa.gov/cars/rules/cafe/overview.htm

18. Public Policy Review for Transportation Teri Houle

19. Transportation Policy Review 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

20. 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

21. 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

22. Mass Transportation is Elastic

23. Transportation Policy RecommendationsFederal Subsidies for Corn-Based Ethanol Energy return on investment (EROI) for corn-based ethanol is too low to justify subsidies. Brad Podkulski CHE 359 Fall 2010

24. 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

25. 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

26. Policy Summary Slide Goal: reduce foreign oil dependence and fight climate change

27. CAFE Standards & Auto Inspections Wesley Cole

28. 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 CAFE Constant until 2004 Minor CAFE Change

29. CAFE (continued) • Cost: $52 billion • Benefits: $182 billion in savings • 61 billion gallons of motor fuel • 655 million metric tons of CO2 emissions

30. Auto Inspections • Tire pressure • Octane rating recommendations • General engine performance • 7% increase in mpg (max)