Car Allowance Rebate System (CARS)

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Car Allowance Rebate System (CARS)
Trade in old vehicles for newer, more fuel
efficient vehicles with a 3500-4500 rebate

• 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

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Economic Incentives for Improved Vehicle
Efficiency
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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.

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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

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

• Policy Report discussion
• by Hunter Estes

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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)
• _at_ 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 wont 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 RD
• 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
  dont have to scale back production
• Remaining portion of load fluctuations met from
  Natural Gas Electricity Providers (CH4 gt CH1.6)

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EPA Standards for Heavy Vehicles

• Zachary Houston
• CHE 359

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Contents

• Introduction to Fuel Economy and Standards
• Improvements in Trucking Industry
• Improvements in Large Truck Industry
• Conclusions

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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

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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.

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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.

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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.

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Improvements to Large Truck Industry
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http//www.youtube.com/watch?vmC2piTPkWYg
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Its Not Rocket Science

• Average fuel economy
• 11 mpg
• Average Passenger Capacity
• 4 People
• One 2500 series truck
• 5 Prius

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Sources

• http//www.truckinfo.net/trucking/stats.htm
• http//www.npr.org/templates/story/story.php?story
  Id130787713.
• http//www.nhtsa.gov/cars/rules/cafe/overview.htm

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Public Policy Review for Transportation

• Teri Houle

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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
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
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Policy Recommendations SummaryIncrease 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

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Mass Transportation

• Government intervention will be necessary Taxes
• Drawbacks
• People dont like taxes, especially in recession
• Many places in US not built for it, especially
  rural areas
• Doesnt 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

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Mass Transportation is Elastic
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Transportation Policy Recommendations Federal
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
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Energy Balance for Corn-based Ethanol
Source Department of Energy, http//www.afdc.ener
gy.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
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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
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Policy Summary Slide
Goal reduce foreign oil dependence and fight
climate change
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CAFE Standards Auto Inspections

• Wesley Cole

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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
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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
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Auto Inspections

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