Energy Literacy Advocates Newsroom

Energy Literacy Advocates has been closely following the Cash for Clunkers debate on capital hill since several different versions of the legislation were floated months ago. We previously published a white paper discussing the pros and cons of such legislation, as well as key components we felt needed to be considered (Click here for details). Unfortunately the bill passed by the House on Tuesday does not contain several of these key components.

But first the good news: Only vehicles with fuel efficiencies of 18 MPG or less are eligible for the program in the current version of the bill (H.R. 2751). There is a cap on the new vehicle purchase price of $45,000 and you must prove you have been driving your clunker for the past year by providing proof of insurance. These parameters are both reasonable and logical, as avoiding the creation of a black market for clunkers and only incentivizing the purchase of reasonably priced vehicles (not luxury vehicles) is common sense.

However the hurdles set for the purchase of a new car (+4 MPG for $3,500 and +10 MPG for $4,500) are uncomfortably low and the hurdles set for trucks (+2 MPG and +5 MPG for Category 1 trucks, which include light trucks and SUVs) are woefully inadequate. Not to mention the incentives for Category 2 and 3, or “work” trucks, which are nothing short of a handout.

If we are going to commit $4 Billion for a program that replaces roughly 625,000 vehicles (as estimated by the Congressional Budget Office), or 0.31% of the entire fleet, we deserve to have a meaningful increase in fleet wide efficiency over time. Mind you any program that swaps for fuel efficient vehicles will be a small percent of the outstanding fleet, but all the better to make sure the program puts US consumers and the auto industry on a path to producing safe, fuel efficient vehicles well into the future, and without further incentives. (One could argue the one year duration of the program is too short as well, since charting a new path will surely take longer). Practically giving away $3,500 - $4,500 for modest gains in car efficiency and what would be difficult to even measure in trucks is simply unacceptable. We have a very unique opportunity right now to:

1. Set the course for a far more fuel efficient vehicle fleet, from an average of 22 MPG now to well over 30 MPG in the very near future, and
2. Provide much needed financial stimulus to the American economy, but in a way that results in the foundation for a more secure future wherein we become less dependent on oil and reduce our emissions.

If fiscal stimulus is all you seek, the current bill will provide it, but little more. However if you think we can take this opportunity to provide a stimulus that is more than just consumptive spending – something that might actually set a viable course for the American transportation fleet in the future – then we need to ask for much more of our elected officials. This is a once in a lifetime opportunity to choose a new path. Let’s take it.

Labels: automakers, CAFE standards, efficiency, energy policy

The New York Times - California’s tough new auto-emissions rules are set to be combined with the existing corporate average fuel economy standard to create a single new national standard. President Obama is expected to announce these changes as early as Tuesday.

The move is expected to resolve discrepancies between state and federal emissions and mileage standards. Obama's new federal standard will put in place new mileage requirements to be administered by the Department of Transportation that would match the stringency of the California program.

Under the new standard, the national fleet mileage rule for cars would be roughly 42 miles a gallon in 2016. Light trucks would have to meet a fleet average of slightly more than 26.2 miles a gallon by 2016. As a result, cars and light trucks sold in the United States will be roughly 30 percent cleaner and more fuel-efficient by 2016.

To read more, click here.

Labels: automakers, CAFE standards, efficiency, u.s. energy policy

The U.S. fuel economy average for 2011 models of light trucks and cars must be 27.3 miles per gallon. This represents a 2 mpg increase from the previous year’s level, though slightly lower than the 27.8 recommendation from the Bush administration.

The 8 percent gain announced this week from Washington carries out a 2007 law intended to curb emissions and fuel use.

To read the full article in Bloomberg detailing this mandate, click here.

Labels: automakers, CAFE standards, efficiency, energy policy, u.s. energy policy

A recent article on the front page of the New York Times makes some excellent points regarding the proposed increase in CAFE standards sought by the energy bill currently under consideration by congress. Some key excerpts:

“Gas mileage would go up under the compromise reached by Congressional leaders last week, but not as high as the trumpeted numbers. And despite the tougher 35 m.p.g. standard, a growing population of drivers would push up total fuel use, as well as greenhouse gas emissions — but not as rapidly as would occur without the legislation. Those are some of the conclusions of auto policy experts, who were still struggling on Monday to determine exactly what the proposal would do…”

“The fleet average for vehicles in the 2020 model year would be set at 35 miles per gallon, versus about 25 miles per gallon for cars and light trucks today. Both numbers, though, come with a familiar caveat: actual mileage may vary. In fact, the actual performance falls short of the current standard by about 20 percent, as would be true as well of the higher standard if the proposal becomes law.”

“Even if the bill becomes law, the fuel-economy improvement that it calls for will probably not be great enough to prevent some increase in American fuel consumption because of the expected growth in the number of cars on the road and miles traveled. In 2020, the combined total of gasoline and ethanol use would be slightly higher than it is today, according to David Friedman of the Union of Concerned Scientists, on whose calculations the Democratic leaders relied.”

Clearly every option for efficiency must be evaluated for the ACTUAL affect it will have on consumption in order to sort out the best policy options. While estimates are just that, we must be careful to stick to the facts when analyzing each option.

Labels: CAFE standards, efficiency, energy policy