Transportation

Some Heavy-Duty Good News

At a time when political gridlock in Washington has blocked climate legislation, EPA and NHTSA have jointly come forward with a sensible proposal that will substantially reduce oil consumption and greenhouse gas (GHG) pollution from heavy-duty trucks. EPA and NHTSA’s proposed new rules build on their recent success in finalizing GHG and fuel efficiency standards for cars and light-duty trucks. Once again, the two agencies collaborated with industry to make sure their standards accomplish environmental and energy security goals in a practical manner.

The transportation sector is responsible for 27 percent of our nation’s GHG emissions. Within this sector, heavy-duty vehicles are the second largest source of emissions (after light-duty vehicles), accounting for 20 percent of the sector’s total. The new proposal covering heavy-duty vehicles (long-haul trucks, large pick-ups and vans, school and transit buses, and utility trucks) manufactured from 2014 through 2018 is estimated to reduce emissions by 7-20 percent from these vehicles (depending on the category of truck) from current levels, achieving an overall reduction of 250 million metric tons of carbon dioxide over the life of the vehicles sold during this five-year period. As a result, emissions in 2030 from this fast growing subsector will be 9 percent below what they would have been in the business as usual case. The proposed rule is also estimated to reduce oil consumption by 500 million barrels over this same period. 

Cost and Benefits

To achieve the proposed standards, truck manufacturers will need to modify their vehicles drawing from a range of existing technologies including improvements in aerodynamic designs, lower rolling resistant tires, advanced transmissions, and reduced idling. The agencies report that the cost of meeting the standard for many trucks will be recouped in less than 2 years in the form of fuel savings. The regulatory impact analysis accompanying the proposed rule looks at both the costs and benefits of meeting the proposed standards. It shows the following:

Estimated Lifetime Discounted Costs and Benefits for 2014-2018 Model Year Heavy-Duty Vehicles

3 percent discount rate$ billions
Costs$7.7
Benefits$49
Net Benefits$41


Source: Table I-4 of the proposed regulations.

The bottom line is clear – with a net benefit to society of $41 billion, the proposed rule is a worthwhile investment in reducing both our reliance on foreign oil and our emissions of greenhouse gases.  

Steve Seidel is Vice President for Policy Analysis

Ambitious GHG Targets for California Drivers

On September 23, the California Air Resources Board (CARB) announced the adoption of ambitious, though aspirational, greenhouse gas (GHG) emission reduction targets associated with the total miles traveled by California drivers. This is the latest step in the process of implementing Senate Bill 375, signed by Governor Schwarzenegger in 2008. The significant increase in stringency of the CARB target levels over recommendations made by Metropolitan Planning Organizations (MPOs) last May was surprising and although praised by some, has received significant criticism.

The law provides incentives, not mandates, for MPOs to use regional transportation strategies that encourage smart growth. Incentives for MPOs, which meet the GHG targets, can include easier access to federal funding and exemption from certain environmental review requirements. Although called ‘precedent setting’ by the media, it establishes growth policies considered similar to others that have already been implemented in California, and this law would not have a strong impact without stringent GHG reduction targets. SB 375 required CARB to set the targets, giving it the power to determine how seriously MPOs would have to invest in new development plans if they wish to take advantage of the incentives. Using 2005 as a baseline, the GHG emissions per capita reduction targets set by CARB for 2020 and 2035 were, respectively:

 

Region2020 Target2035 Target
San Diego Area7%13%
Sacramento Region7%16%
Bay Area Region7%15%
Southern California8%13%
San Joaquin Valley (to be revisited in 2012)5%10%
Targets for the remaining six MPOs making up 5 percent of the population match or improve upon their current plans for 2020 and 2035

The targets CARB defined were more ambitious than what the largest MPOs recommended in May. For example, recommendations for the Bay Area were 5 percent per capita for 2020 and 5 percent for 2035 (the same to account for projected population growth, which would make higher targets more difficult to achieve in 2035). Critics complained that these targets were “hijacked” by environmentalists, as CARB did not provide an explanation for the increase.

While more stringent targets are a victory for champions of climate change policy, some Californians have claimed CARB’s numbers as irresponsible because MPOs cannot afford to implement the plans needed to meet the targets. Given the state’s budget deficit and lingering impacts from the global economic recession in 2008 and 2009, budget crises for transit agencies have resulted in decreased service and increased fares. To combat expected costs, CARB has promised to help seek out more state and federal funding, although CARB member and San Diego County Supervisor Ron Roberts is pessimistic about their chances. Business groups angrily predict that such funding will have to come from increased transportation taxes such as vehicle miles traveled fees, parking fees, and congestion pricing. Critics (Example 1, Example 2) also cite the prediction by the Metropolitan Transportation Commission (MTC) of San Francisco that gas would reach a cost of $9.07 per gallon if there were a carbon or ‘vehicle miles traveled’ (VMT) tax.

CARB could address these concerns by clarifying the rationale for its decision and exposing half-truths propagated by some of its critics. For example, whether or not targets are too ambitious, SB 375 requires CARB to review them regularly and consider revisions based on economic and demographic conditions, as well as actual results achieved. The critics’ references to the MTC’s $9.07 per gallon gas are disingenuous warnings. The MTC’s gas price forecast is actually for 2035, not the immediate future, and the MTC considers a carbon or VMT tax as just one of multiple policy options. Only when this tax is added to the MTC’s unlikely forecast of gas prices (a linear extrapolation based on gas prices in 2008, the highest price ever, hitting $7.47 per gallon by 2035) does the cost of one gallon reach $9.07 in 2035. This forecast is significantly different from that of the U.S. Energy Information Administration, which, as of 2010, expects a national average of $3.91 per gallon gas in 2035. In addition, sustainable development experts Calthorpe Associates’ ‘Vision California’ study highlights attainable smart growth savings for Californians that would provide a significant boost to the economy. It quantifies savings, potentially achievable through SB 375, at $6,400 per year per household by 2050, among other significant opportunities.

While it is natural to be wary of the ambitious goals, California has previously defied naysayers and achieved ambitious policy goals at lower costs than initially predicted, as happened with Title 24 building energy efficiency standards in 1978. Furthermore, it is worth noting that SB 375 will remain intact no matter the fate of Proposition 23, which seeks to suspend the Global Warming Solutions Act, Assembly Bill 32, in the upcoming elections. By providing incentive-based aggressive targets, MPOs now have greater reason to invest significantly in future transportation and land use plans. With such an investment, Californians can look forward to a more comfortable life with shorter commutes, reduced air pollution, and long-term economic growth.

Sam Wurzelmann is the Innovative Solutions intern

Making the Case for Plug-in Electric Vehicles: Smart Shopping

This is the third post in a three-part series on PEVs. This one examines the reasons to consider purchasing a plug-in electric vehicle. Part 1  Part 2 

In our previous posts, I described some of the benefits to national security and the environment with the use of plug-in electric vehicles (PEVs). This final post takes a look at what is often the most important issue to Americans: their wallets. PEVs are not cost-competitive with conventional vehicles in most situations yet, but there are some considerations that could be compelling for consumers to consider this winter when the first PEVs hit the market.

Making the Case for Plug-in Electric Vehicles: Breathing Easier

This is the second post in a three-part series that examines the reasons to consider purchasing a plug-in electric vehicle. Part 1  Part 3

Last week, I discussed why consuming oil is bad for U.S. national security. In this post, I’ll look at another reason to consider a plug-in electric vehicle (PEV) – helping the environment. I’ve previously explored the effect PEVs will have on greenhouse gas (GHG) emissions. It is clear that PEVs have the potential to reduce GHG emissions significantly so long as society also reduces the carbon intensity of the electrical grid. But the environmental benefits of PEVs are not limited to climate change.

Figure 2: It's hard to see through all the smog, but that’s the Brooklyn Bridge in NYC in 1988. (Source)

PEVs also benefit local air quality, which might matter a lot if you live in a city with poor air quality. Despite enormous strides in the U.S. to reduce air pollution, the EPA estimated in February of this year that nearly 127 million Americans live in areas where air quality concentrations are above the National Ambient Air Quality Standards (NAAQS). The Clean Air Act requires the EPA to establish and periodically update and evaluate the NAAQS. While air quality has improved significantly since 1990, nearly half of Americans still face air quality-related health risks, including decreased lung function, aggravated asthma, and premature mortality.

Air pollution primarily comes from stationary fuel combustion, industrial processes, and vehicles. Transportation mainly contributes to two air pollution problems: ground-level ozone and particle pollution. Particle pollution or particulate matter (PM) consists of solid particles and liquid droplets in the air; coal fired power plants, as well as diesel vehicles including cars, trucks, and buses, are some of the sources of PM. Ground-level ozone, a serious air pollutant also known as smog, results when sunlight reacts with oxides of nitrogen (NOx) and volatile organic compounds (which are components, for example, of vehicle exhaust).

The health effects of air pollution include decreased lung function, respiratory infection, and even increased risk of heart attacks and strokes under certain conditions. While the U.S. EPA and state governments are moving ahead with regulations that improve the air quality for Americans, most people (especially in urban areas) remain at risk of effects from excessive ozone and PM. The American Lung Association recommends the EPA reduce air pollution from vehicle tailpipes. One way consumers can help is by purchasing vehicles with lower tailpipe emissions such as PEVs.

The more miles Americans travel in passenger vehicles powered by electric motors, the more local air quality will improve according to a study completed by the Electric Power Research Institute (EPRI) and the National Resources Defense Council (NRDC). It is difficult to quantify air quality benefits from using PEVs since air pollution can come from multiple sources, including vehicle tailpipes as well as power plants. All-electric vehicles in cities will almost certainly improve local air quality since a mile traveled that is powered by electricity does not produce any vehicle emissions and the power plants that produce the electricity are often located away from city centers. For plug-in hybrid electric vehicles, those improvements are tempered by the percentage of miles that rely on the gasoline or diesel-powered backup energy source rather than by the batteries. In fact, using PEVs can result in more local air pollution at the electricity generation source, especially if the source is a coal power plant. This potential problem underscores another reason (in addition to the goal of reducing GHG emissions) that we should work on reducing power plant pollution as we green the vehicle fleet.

PEVs will not end air pollution in the United States, but increasing the market penetration of these vehicles will help reduce air pollution in cities throughout the country. In the next post, I’ll look into how the financial numbers might work out with a PEV for your next vehicle purchase.

Nick Nigro is a Solutions Fellow

Making the Case for Plug-in Electric Vehicles: National Security

This is the first post in a three-part series that examines the reasons to consider purchasing a plug-in electric vehicle. Part 2  Part 3

Though it is unlikely that the first generation of plug-in electric vehicles (PEVs) will be adopted by the masses, there is a compelling case for everyday consumers to take a look at these vehicles when they become available this winter.  There is no silver bullet to solving climate change, but PEVs could play an important role as one of a broader set of solutions. As is the case for many climate solutions, the benefits from PEVs are more than environmental. In this three part series, I’ll make the case for PEVs based on the gamut of issues that matter to Americans – national security, the environment, and their wallets.

Electric Vehicles and the Need for Public Policy

This post was written with Cynthia J. Burbank, National Planning and Environment Practice Leader at Parsons Brinckerhoff.  It first appeared in the National Journal Transportation Experts Blog in response to the question: What should transportation departments do for electric cars?

The call for the government to act to promote plug-in electric vehicles (PEVs), and all clean alternative fuels for that matter, is to correct the clear market failures that exist in today’s petroleum-based transportation sector.

Historically, petroleum has been a key driver in the growth of the economy and development of nations worldwide. Gasoline and diesel fuel’s impressive energy density, portability, and low production cost made it the fuel of choice for nearly a century. All the while there have been costs, although they haven’t always been obvious. Petroleum’s impact on climate change and U.S. energy security, and the risks of drilling, result in real and significant costs to society, and currently the price of petroleum does not include those externalities.

A Big Tent for Fuel Economy Standards

Through a recently signed Presidential Memorandum, Barack Obama is continuing the push to regulate greenhouse gas emissions from the transportation sector using its authorities under the Clean Air Act (CAA) and the Energy Independence and Security Act of 2007 (EISA). While the memorandum includes provisions for passenger cars, light-duty trucks, and support of an electric vehicle charging infrastructure, the most notable component involves vehicles that have eluded fuel efficiency regulators.

When it comes to GHG emissions and the transportation sector, the elephant in the room has been medium- and heavy-duty vehicles (freight trucks). The recently released memorandum will bring these vehicles under the regulatory umbrella and increase the likelihood that the transportation sector will contribute its share to economy-wide GHG emission reductions.

Plug-In Electric Vehicles Could Help the Grid: Prospects with Frequency Regulation

This is the third post in a three-part series that explores potential impacts of electric vehicles on the electrical grid. Part 1 and Part 2.

Previous posts in this series discussed how the demand for electricity from plug-in electric vehicles (PEVs) would affect the grid as well as a potential problem related to clustering. This final post describes an opportunity for these vehicles to help increase the stability of the grid and hold down utility rates for consumers.  As a reminder, a PEV is either an all-electric vehicle (EV) or a plug-in hybrid electric vehicle (PHEV).

Plug-In Electric Vehicles Could Help the Grid: Following the Crowd

This is the second post in a three-part series that explores some potential impacts of electric vehicles on the electrical grid. Part 1 and Part 3.

In our previous post in this series, we provided evidence that the existing electrical grid has enough spare capacity to accommodate plenty of plug-in electric vehicles (PEVs), if the right incentives are put in place. In this post, we will discuss a technical problem that has its roots in social behavior.

The transition from traditional powered vehicles to electric vehicles will not be without its hiccups. While the aggregate impact of PEVs on the grid is likely moderate, one concern is clustering, which can be thought of as the realization of the famous comic strip Keeping up with the Joneses. If people buy what their neighbors have, this could lead to a clustering of PEVs in certain neighborhoods which might place excessive demand on local areas of the grid.

Plug-In Electric Vehicles Could Help the Grid: The Capacity Question

This is the first post in a three-part series that explores some potential impacts of electric vehicles on the electrical grid. Part 2 and Part 3.

One of the main concerns over the electrification of vehicles is their impact on the electrical grid. Will they lead to power outages due to the increased demand in certain areas? Will a marked increase in electricity demand raise prices for consumers who don’t own a plug-in hybrid electric vehicle (PHEV) or an all-electric vehicle (EV)? In a series of blog posts, we’ll take a look at a claim from some utilities that vehicle electrification could actually help improve the stability of the grid while keeping costs low through a process called frequency regulation.

In this post, we’ll try to answer the capacity question. In order to determine whether the grid has the capacity to handle the influx of Plug-in Electric Vehicles (PEVs or PHEVs/EVs), utilities must estimate at what time of day these vehicles will demand power from the grid and how many of them the grid can charge at a time without causing power disruptions.

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