What Will Happen To Electric Car Sales In A Trump Led America?

Like it or not, Donald Trump will be the next president of the United States. What affect will that have on the auto industry? The first hint came this morning when General Motors announced it will idle 2000 third shift workers early in 2017. Is GM worried that people will buy fewer cars and trucks when Trump is in office? Not at all. The move is designed to give The General time to rejigger its assembly lines to build more gargantuan SUVs and pickup trucks. It’s “Drill, baby, drill” time in America.

According to Green Tech Media, Trump is expected to decrease the power of the EPA and dismantle much of President Obama’s climate action program. Right now, the EPA’s CAFE regulations are scheduled for a full review to be completed in 2018. The automakers have been pushing back hard against further tightening of the standards. Since Trump says he will remove all “job-killing climate regulations,” we can expect those rules to be significantly softened if they continue to exist at all.

That means more and more larger, thirstier vehicles sucking up more fossil fuels and spewing out more pollutants. Apparently, that’s what most Americans want.

This might be a good time to load up on auto stocks. It’s time to party like its 1959 all over again. Kiss wimpy little 4 and 3 cylinder engines goodbye. It’s time to rediscover the magic of cubic inches and good old American V-8 power. The Obama administration just announced an initiative to increase EV charging infrastructure along the nations major highways. That plan could be stillborn.

Federal incentives for low and zero emissions cars could be on the chopping block. Carbon fees and tax breaks for renewable energy are endangered as well. President-elect Trump says government shouldn’t pick winners and losers in the market place. If fossil fuels are cheaper then let’s have more of them. Dig coal in Yellowstone. Frack the Grand Canyon. It’s all good as far as Trump is concerned.

The fact that fossil fuels enjoy trillions of dollars of indirect subsidies is far too abstract a concept for a man with the mental age of a 2 year old and the intelligence of Golden Retriever to comprehend. Untaxed externalities? That’s just some liberal gibberish designed to make life hard for Trump’s close personal friend Robert Murray.

Tesla Motors will continue to turn out compelling electric cars, but the rest of the industry may reduce their efforts to bring affordable electric cars to market if they can make more money  building pretty much the same cars they have been selling for generations. Electric car sales are at 1% of the new car market in the United States at the moment. There is no reason to expect that number to rise significantly while The Donald is in office.

Photo credit: Green Tech Media

Obama Encourages More Natural Gas Infrastructure

President Obama encouraged more natural gas infrastructure in Tuesday’s State of the Union speech. In it, he talked about his “all-of-the-above energy strategy”, which incorporates diverse energy sources to keep America running (and driving) with less potential disruption from global political and economic changes.

He specifically mentioned natural gas as a bridge fuel. It burns cleaner than the petroleum cars have been using, and the innovation that has gone into modern CNG vehicles is impressive. In order to get more people driving natural gas vehicles, we need more natural gas infrastructure – specifically fueling stations. Obama called on Congress to create programs to employ people and get the natural gas infrastructure built.

Natural gas is in the news a great deal partly because of fracking. Fracking can be done safely, or it can cause problems, such as earthquakes or contamination of water sources. Natural gas pipelines can also rupture with spectacular and dangerous results. Even so, natural gas represents an enormous opportunity for the U.S. to reduce dependence on foreign oil while also reducing emissions.

Here is what Obama said about natural gas production and natural gas infrastructure in the State of the Union address:

Now, one of the biggest factors in bringing more jobs back is our commitment to American energy. The all-of-the-above energy strategy I announced a few years ago is working, and today, America is closer to energy independence than we’ve been in decades.

One of the reasons why is natural gas – if extracted safely, it’s the bridge fuel that can power our economy with less of the carbon pollution that causes climate change. Businesses plan to invest almost $100 billion in new factories that use natural gas. I’ll cut red tape to help states get those factories built, and this Congress can help by putting people to work building fueling stations that shift more cars and trucks from foreign oil to American natural gas. My administration will keep working with the industry to sustain production and job growth while strengthening protection of our air, our water, and our communities. And while we’re at it, I’ll use my authority to protect more of our pristine federal lands for future generations.

Image: Mariordo59/CC

Maglev Train Proposal Promises 15 Minute Ride From Baltimore To D.C.

With President Obama failing to launch a national high-speed rail network, it may take some outside help to jumpstart our HSR ambitions. Japan has stepped in offering to provide half of the loans required to build a 37-mile maglev train between Baltimore and our national capital, Washington D.C. The saddest part? How happy officials are to have the help.

Even though the journey covers less than 40 miles, the current rail network takes more than an hour to make the trip between the two cities. In most cases, it’s quicker to drive, though finding (and paying for) a parking spot is a headache, nevermind the infamous Beltway traffic. Even so, Americans deserve a better train network, and thanks to Japan, we may get it.

The rail system is estimated to cost about $8 billion, and the Japanese government is willing to provide low-interest loans to cover half the cost, about $4 billion. Of course there is an ulterior motive here, and Japan hopes to showcase its “Super-Maglev” train system, which connects the country with high-speed trains at fairly affordable prices. America’s only other high-speed rail project in California is currently facing a number of issues, including a lack of funding, and Republican governors colluded to put a halt to Obama’s MidWest ambitions, putting the U.S. back at square one. This isn’t the first offer of outside help America has had from countries where high-speed rail is both popular and profitable, and it’s about time we swallowed our pride and got some help getting this thing going.

The system proposed by the Japanese government could cut the trip down from an hour to just 15 minutes, saving passengers a ton of time, while providing a real-world example that high-speed rail can work in the United States. Haters gonna hate, but with Japan offering the split the cost on a small-but-important showcase project, perhaps this can restart our nation’s hope for a genuine high-speed rail network.

Just don’t hold your breath.

Source: The Telegraph

Obama Wants $2 Billion In Advanced Vehicle R&D Funding

President Barack Obama wants Congress to approve the use of oil exploration royalties to provide $2 billion of funding for the research and development of advanced vehicle technologies. This funding is for a ten-year period.

The research mentioned is for the development of electric vehicle, biofuel, battery, and compressed natural gas technology. The development of battery technology is important to both electric vehicles, as well as the electricity grid, and the entire effort to switch to renewable energy sources such as solar and wind power.

The idea was proposed by Obama in the State of the Union address to obtain a share of the money obtained from leasing federal land to oil and gas companies (the royalties I mentioned above) for use in an ”Energy Security Trust” fund. In the past, Congress approved roughly half of the $650 million that Obama wanted them to provide for electric vehicle and battery research, suggesting that they are not quite as enthusiastic about that as him.

One of Obama’s most significant contributors to his environmental conservation efforts has been the development of electric vehicle and power plant battery technology, as well as the development of solar panel technology. However, his goal for putting 1 million electric vehicles on America’s roads by 2015 will almost certainly fall short.

That said, enormous strides were made for all of these technologies, such as batteries that provide electric vehicles with 500 miles of range,batteries that charge in 20 seconds , and the introduction of highly (relatively speaking) efficient hybrid electric cars that cost a few thousand dollars more than their gas counterparts. Obama’s support of the domestic car industry has also led to a rebound in the manufacturing sector.

But we still have a long way to go, and while $2 billion sounds like a lot of money, spread out over 10 years, it is but a drop in the bucket in Congress’s annual spending.

Source: Detroit News

Obama: Use Oil & Gas Lease Dollars To Fund Gasoline-Free Cars

The sequester is now with us, and Congress has lower approval ratings than South American death squads, but President Obama is doggedly pursuing his green agenda nonetheless.

Today, he will announce a plan to divert $2 billion of Federal oil and gas lease revenues over the next decade from general revenues into an energy security trust fund.

Those moneys would fund research and development of both cleaner fuels and advanced vehicle technologies, with the goal of moving toward vehicular transportation that does not use fossil fuels.

According to reports in The New York Times, Scientific American, and other sources, President Obama will announce the plan during a speech today at Argonne National Laboratory, outside Chicago.

While he first floated the idea during his State of the Union address in January, the proposal will flesh out the details of the subjects to be funded.

Those include additional research on advanced battery chemistries and materials technologies, a broad array of biofuels initiatives, and broader studies on ways to improve the efficiency of all automobiles.

As the Times notes, while there is at least some bipartisan support for moving vehicles off hydrocarbons, the proposal is "likely to encounter strong resistance from Congressional Republicans, who will portray it as a tax on energy producers."

With Congressional gridlock and vicious partisan politics preventing any consensus on a long-term energy plan for the United States, Obama has pursued what he calls an "all-of-the-above stategy" of multiple smaller initiatives.

Those include Federal support and financial incentives for renewable energy, including wind and solar power; increased development of domestic oil and gas resources, potentially including both the controversial practice of geofracturing ("fracking") and the Keystone XL natural-gas pipeline; and longer-term research into non-hydrocarbon energy.

Argonne Lab, where the president will speak, was chosen in part because it has done research and testing on advanced vehicle technologies for decades, from alternative fuels to plug-in hybrids.

But the sequester, says its director, will not only force Argonne to cancel all new programs over the next year, it will more generally devastate U.S. scientific research for decades to come.

Barack Obama

Much of the basic research in core science since World War II has directly or indirectly been funded by the Federal government.

But that funding is contained within the minority of "discretionary" spend that will be heavily affected by the mandatory cuts contained in the sequester.

Meanwhile, a slow (although growing) ramp-up of plug-in electric car sales means Obama's goal of 1 million plug-ins on U.S. roads by the end of 2015 is unlikely to be met.

Should the U.S. continue to invest in research on cleaner vehicles, renewable energy technologies, and lowering the carbon impact of our current energy use?

Or is that a function that, as some have suggested, should be left entirely to the more-efficient private sector to fund?

Source: Green Car Reports

Hyundai Sonata Hybrid Supplants Ford Fusion As Government’s Green Car Of Choice

President Barack Obama pledged to modernize the government fleet, and he has done just that…though many of these new, fuel-efficient cars aren’t American. In fact, 54% of the Obama Administration’s fleet of alternatively fueled vehicles come from Asian brands.

The Asian brands that make up a bulk of U.S. government fleets are Hyundai Motor Co, Honda Motor Co, Toyota Motor Corporation, and Mitsubishi Motors Corporation.

The Obama administration set a goal of purchasing only alternatively fueled vehicles for its fleet by 2015. They have been purchasing alternatively fueled vehicles since 2009 by the thousands. However, their purchases of these vehicles has been decreasing for years. Sales of these vehicles was 8139 in 2009, and dropped to 6,467 in 2010, it then dropped to 2,645 in fiscal 2011. In 2012, the government purchased just 1,801 hybrid vehicles, making up about 3.6% of the more than 50,000 vehicles purchase by the government last year.

It is certainly true that the U.S government should practice what it encourages, and use alternatively fueled vehicles as well to set an example, however, they don’t favor American cars as much as they used to. The Hyundai Sonata Hybrid has replaced the Ford Fusion hybrid as the most popular green car in government fleets.

One of the reasons stated for this is that the Fusion was not available in large quantities at the time as anew Fusion hybrid was coming out. The same was said for the Ford C-Max hybrid, though there is no mention of the Chevy Volt, another popular hybrid vehicle.

It’s worth asking…is the Obama administration backtracking on its hybrid fleet pledge? Is the 2015 goal even possible anymore?

Source: Bloomberg.com

U.S. Oil Prices Could Fall To $50 A Barrel

In case you haven’t noticed, gas prices seem to be falling at a fairly steady rate, and the trend shows no sign of reversing. With America’s domestic production on the rise, prices for a domestically-produced barrel of oil could fall to the lowest levels seen in years. But it is unlikely to last according to a new report.

With America’s reliance on gasoline a cornerstone of our economy, domestic production of oil has been a big deal for both political parties. Under President Obama, domestic production of oil is on the rise, though his predecessor George W. Bush really deserves most of the credit/condemnation. With a glut of oil coming from drilling operations in North Dakota, the Gulf of Mexico, and Alaska’s northern reaches analysts expect the price of a barrel of American crude to reach just $50.

But don’t get too excited. Overall, worldwide production of oil is down, though in many places (like Europe) so is consumption. A lot of this American oil is also destined for other nations, meaning that while there will be some relief of the pain at the pump, it isn’t likely to last. Oil companies can’t make a profit on $50 a barrel oil in today’s market, and I wouldn’t be surprised to see them pull some of the same tricks pioneered by Saudi Arabia, essentially turning off the spigots to artificially keep prices high.

Besides that, America still gets a lot of oil from countries with higher oil prices, like Nigeria and Venezuela. So while we may see a small drop in gas prices, like we currently are seeing (according to the AAA Fuel Gauge the national average is down about 14 cents in a month), the effects won’t last long. On one hand, the idea of paying less for gas is certain to strike a chord American consumers. But high gas prices are a primary driver of both fuel efficiency and the search for alternative energy. As history shows, the price of oil can fluctuate wildly, and for a variety of geopolitical reasons; it is an uncertain source of energy that must bow to the whims of theocracies and dictatorships.

My worry is that if gas prices stay too low, for too long, people will stop buying fuel efficient cars or pushing for alternatives to oil. It has happened before, and it could happen again. Stay tuned…

Source: CNN

Nothing Green Can Stay: Obama Falls Short Of 1 Million Electric Vehicle Goal

It’s not easy being green, or spending green in this economy either. The Obama administration invested $2.4 billion with the goal of getting 1 million electric vehicles (EVs) on America’s roads by 2015. Reports now show that only about 300,000 EVs will be buzzing on America’s roads by 2015.

GOP Opposition + Failing Companies = EV Shortfall

The Obama administration has run over many speed bumps in its energy investments.Solyndra made national headlines with the loss of half a billion tax payer dollars and 1,100 workers laid-off. While Obama’s desire and support for high speed rail also caught a lot of flak, with three Republican governors killing HSR plans in Wisconsin, Ohio, and Florida.

Bankruptcies and lower than expected production of EVs are the culprit here, and have stalled President Obama’s ambitious EV goal. A glaring example of the troubled EV market is Fisker and their EV sports car the Fisker Karma. Fisker received a $529 million taxpayer loan in 2010. However the loan was cut off after $193 million as Fisker failed to meet sales and production goals. To add insult to injury, the cars that were produced did not run very well. Fisker blamed the problems on the lithium ion battery that was used. Coincidently, the manufacturers of the poor batteries,A123 Systems, were also Obama Administration government loan recipients, and are also facing financial woes.

Survival Of The Fittest

With Fisker sidelined their estimated required output of 36,000 EVs by 2015 is most likely not going to happen – Fisker’s output numbers are looking closer to 18,000 by 2015. In addition, CBS News found that other EV manufactures that had been pinned by the White House for the 1 million EV goal are not meeting their production goals, have stopped making EVs, or are out of business. One notable exception is Tesla. Tesla is going strong, and Chevy Volt sales are picking up steam too…but it won’t be close to enough to meet the 1-million EV mark.

The EV industry has been off to a slow start. Even with tax credits people are not buying. Range, price, and maintenance issues have all contributed to the sluggish start of the EV market. Supports of EVs are still very confident that the cars will take off, and there is without doubt evidence to support their confidence. The President’s Administration seems confidant and wants to invest $4.7 billion more tax dollars in EV incentives even though their original goal of 1 million EVs is unlikely to be met.

Source: Gas2.0

Obama Administration publishes “roadmap” for solar energy development on public lands in West

The Department of the Interior and the Department of Energy are publishing the Final Programmatic Environmental Impact Statement (PEIS) for solar energy development in six southwestern states—Arizona, California, Colorado, Nevada, New Mexico, and Utah. The final Solar PEIS represents a major step forward in the permitting of utility-scale solar energy on public lands throughout the west.

The Solar PEIS will serve as a roadmap for solar energy development by establishing solar energy zones with access to existing or planned transmission, the fewest resource conflicts and incentives for development within those zones. The blueprint’s analysis will make for faster, better permitting of large-scale solar projects on public lands, according to the agencies.

The Solar PEIS planning effort has focused on identifying locations on Bureau of Land Management (BLM) lands that are most suitable for solar energy development. These areas are characterized by excellent solar resources, good energy transmission potential, and relatively low conflict with biological, cultural and historic resources.

The Final PEIS identifies 17 Solar Energy Zones (SEZs), totaling about 285,000 acres of public lands, as priority areas for utility-scale solar development, with the potential for additional zones through ongoing and future regional planning processes. The blueprint also allows for utility-scale solar development on approximately 19 million acres in “variance” areas lying outside of identified SEZs. In total, the Final PEIS estimates a total development of 23,700 megawatts from the 17 zones and the variance areas, enough renewable energy to power 7 million American homes.

Click to enlarge.

Key elements of the Final Solar PEIS:

• Establishes an initial set of 17 Solar Energy Zones on 285,000 acres across 6 Western States;
• Outlines a process for industry, the public and other interested stakeholders to propose new or expanded zones; efforts already underway include California’s Desert Renewable Energy Conservation Plan and the West Chocolate Mountains Renewable Energy Evaluation, Arizona’s Restoration Energy Design Project, and other local planning efforts in Nevada and Colorado;
• Includes incentives for development within zones, including faster and easier permitting, improved mitigation strategies, and economic incentives;
• Sets a clear process that allows for development of well-sited projects on approximately 19 million acres outside the zones;
• Protects natural and cultural resources by excluding 78 million acres from solar energy development;
• Identifies design features (best practices) for solar energy development to ensure the most environmentally responsible development and delivery of solar energy; and
• Establishes a framework for regional mitigation plans and a strategy for monitoring and adaptive management; the first mitigation pilot for the Dry Lake Solar Energy Zone is already underway.

In support of more detailed system-level analyses of transmission needs, the BLM is engaged in ongoing transmission planning efforts, including through the Transmission Expansion Planning Policy Committee and the Western Electricity Coordination Council’s transmission study.

The 27 July Federal Register Notice of Availability for the Final PEIS will begin a 30-day protest period, after which Secretary Salazar may consider adopting the document through a Record of Decision. The BLM released the Draft Solar PEIS in December 2010, and in response to the over 80,000 comments received from cooperating agencies and key stakeholders, issued a Supplement to the Draft Solar PEIS in October 2011.


Source: Green Car Congress

Obama’s New Budget Calls For $10,000 Rebate For Electric Cars

It’s an election year, which means the partisan political bickering is only getting warmed up. So it is no surprise that politicians on the right side of the aisle are already calling Obama’s proposed 2012 budget nothing more than a “campaign” document. Among the many provisions Obama outlines in his proposal is billions of dollars in infrastructure funding, in addition to a $10,000 rebate for the purchase of electric and other green-tech vehicles.

We’re going to focus on that proposal, because it would dramatically change the dynamic for electric vehicles. Right now, the $7,500 tax rebate (enacted by George W. Bush) means that buyers pay the full price of a vehicle like the Chevy Volt up front. Come tax time, they can deduct up to $7,500 from their taxable income.

The problem with this rebate is that it forces would-be EV buyers to come up with the cash up front. Obama’s proposal would turn the tax credit into a $10,000 rebate, which comes off the price of the car at the point of sale. So instead of making payments on a $41,000 Volt, buyers would make payments on a $31,000 Volt. For the Nissan LEAF, the price would come down to about $26,000; the Mitsubishi i would squeek in at under $20,000.

I’m not sure this rebate stands a chance of getting through a divided Congress, but it would be a huge boon to the electric vehicle business. Right now there is legitimate criticism that the tax credit favors wealthy buyers who can afford higher payments for a lower tax rate. It is said that the income of the average Chevy Volt buyer is about $170,000, which makes sense as a lot of celebrities like Jay Leno flocked to the Volt when it first came out. This rebate would make the payments easier to swallow for the average American.

Incredibly, the $10,000 rebate could also be applied to natural gas vehicles and other high-tech, green cars. That would open up a lot of options.

I for one would run out and buy a Nissan LEAF tomorrow if this proposal actually gets passed. How could I not? For about $300 a month, I could have an all-electric car. That’s almost my entire monthly gas tab between me and my girlfriend.

Source: Gas2.0

President Obama proposes plug-in subsidy increase

President Obama’s proposed budget yesterday has called for increasing the electric vehicle tax credit to $10,000, but the broader document was immediately dismissed by political opponents, and said by the Wall Street Journal as having zero chances of being passed.

Among a host of far reaching initiatives that are beyond the scope of GM-Volt coverage, the $3.8 trillion budget for the fiscal year starting Oct. 1 cuts subsidies for gas and oil interests while boosting funds for green energy.

The Journal wrote the proposal was rejected out of hand by Republican lawmakers and presidential candidates as “a political document that fails to seriously tackle the nation’s growing debt.” Nonetheless, the Journal added that the budget showed where the Obama administration’s priorities are.

The president proposes more money for the DOE, but his opponents and commentators say his proposed budget is DOA.

News organizations that picked up the $10k for EVs angle first were also of the conservative variety. In an article titled,“Obama hikes subsidy to wealthy electric car buyers” by The Daily Caller, and re-posted by Fox News, it was calculated the proposal would cost taxpayers $100 million assuming just 10,000 plug-in vehicles were purchased.

Obama’s plan to put one million EVs on the road by 2015 is also in contention, and has been cited as a driving force for his desire to further grease the tracks for green transportation.

But what the future actually holds is still the subject of debate. The Daily Caller quoted Pennsylvania Republican Rep. Mike Kelly who we previously reported has introduced legislation to end auto subsidies.

“The nation is $15.2 trillion in debt and climbing, so we’ve got to be a lot more careful about how we spend the money,” he told The Daily Caller in January.

The bill, said the Chevy dealer, will also shed light on “the money-losing crony-capitalist deals between Democratic legislators and business interests, such as Chevy,” wrote the Daily Caller.

“How do we get this crony capitalism across to the voters?” Kelly said. “We tell them, ‘Folks, this is your money, not the administration’s money. It’s being thrown around by this president. … It’s not a good investment, and there’s no positive return on it.”

Green energy highlights

On a more positive front, Green Car Congress sidestepped all political commentary, and merely noted elements of the budget that would boost discretionary funds for the U.S. Department of Energy by 3.2 percent, or $27.2 billion.

As pointed out in a pdf distributed by the White House, and re-listed by Green Car Congress, key elements in the proposed budget for the DOE include:

• Increases funding for applied research, development, and demonstration in the Office of Energy Efficiency and Renewable Energy ($2.3 billion). These funds are part of a broad energy strategy that emphasizes priorities in clean energy and advanced manufacturing, through grants, financing assistance, and tax incentives that accelerate fundamental research, technology development, and commercialization.

• Within EERE, the Budget increases funding by nearly 80 percent for energy efficiency activities and increases funding for the development of the next generation of advanced vehicles and biofuels. It maintains support for research, development, and demonstration of renewable electricity generation, including: $310 million for the SunShot Initiative; $95 million for wind energy, including off-shore wind technologies; and $65 million for geothermal energy and enhanced geothermal systems.

• The Budget also provides $770 million for the Office of Nuclear Energy, which includes funding for advanced small modular reactors R&D. Other priority activities include R&D on storage, transportation, and disposal of nuclear waste that supports the implementation of recommendations put forward by the Blue Ribbon Commission on America’s Nuclear Future.

• The Budget also includes $350 million for the Advanced Research Projects Agency–Energy.

• $421 million for fossil energy R&D, including $12 million to fund a multi-year research initiative aimed at advancing technology and methods to develop domestic natural gas resources. Specifically, DOE, in collaboration with the Environmental Protection Agency and the US Geological Survey, will focus on understanding and reducing the environmental, health, and safety risks of natural gas and oil production from hydraulic fracturing in shale and other geologic formations.

• More than doubles research and development on advanced manufacturing processes and advanced industrial materials, enabling companies to cut costs by using less energy while improving product quality.

• Promotes basic research through $5 billion in funding to the Office of Science.

• Works through the President’s Better Building Initiative to make non-residential buildings more energy efficient by catalyzing private sector investment. Creates jobs through mandatory funding for HomeStar incentives to consumers to make their homes more energy efficient.

• Positions the Environmental Management program to meet its legally enforceable cleanup commitments at sites across the country.

• Continues investments to maintain a nuclear weapons stockpile in support of the planned decrease in deployed US and Russian weapons under the New Strategic Arms Reduction Treaty.

• Provides funding for securing, disposing of, and detecting nuclear and radiological material worldwide.

The budget proposed for the Department of Transportation includes:

• An increase of 2 percent in discretionary and mandatory budgetary resources to $74 billion.

• $50 billion in immediate investments to support critical infrastructure projects, improving America’s roads, bridges, transit systems, border crossings, railways, and runways.

• Six-year, $476-billion surface reauthorization plan to modernize the country’s transportation infrastructure, and pave the way for long-term economic growth.

• $2.7 billion in 2013 and $47 billion over six years to develop high-speed passenger rail corridors and improve intercity passenger rail service to significantly enhance the national rail network.

• More than $1 billion for 2013 for the Next Generation Air Transportation System.

Beyond energy questions

The scope of the entire budget encompasses far more than energy issues. Among top controversies spurred by the proposal is that Obama is purportedly targeting “the rich” (albeit allegedly rewarding high income earners with an EV tax subsidy).

Among ways the proposed budget reportedly stands to hit the wealthiest Americans is by letting Bush-era tax cuts expire for families that earn more than $250,000 and restoring the estate tax to its 2009 level. This is supposed to generate $1.7 trillion in new revenue over 10 years, according to the Journal.

The Washington Post and Bloomberg reported Obama has said his proposed budget would in total save at least $4 trillion over the next 10 years and stabilize government borrowing.

The budget also projects the deficit will exceed $1 trillion for the fourth straight year in 2012, which the Journal pointed out means that “Mr. Obama will have fallen short of his promise to cut the deficit in half by the end of his first term.”

We could go on, but we’re already past the scope of automotive news, let alone Volt news.

In his defense, Obama said he is exercising “common sense,” not meaning to pick on classes.

“The budget that we’re releasing today is a reflection of shared responsibility,” Obama said in Virginia on Monday. “And some people go around; they say, ‘Well, the president is engaging in class warfare.’ That’s not class warfare; that’s common sense.”

Again, this goes way beyond Volt news but in the interest of staying on topic, we will ask: Do you think the federal plug-in subsidy might be increased? Or, as it’s already threatened, will the subsidy be taken away? Or will it remain the same?

Is the subsidy truly necessary in your view? If it were removed, how would that affect the electrified vehicle industry?

Source: GM-Volt.com

Presidential energy blueprint calls for 80-percent clean energy by 2035

As GM-Volt readers know, this week’s Volt news was about politics and GM’s efforts to rebuild its falsely maligned image. But even as certain congressional Republicans targeted GM, the Volt, and President Obama, the president said he is doubling down on his agenda for energy security.

The president’s Blueprint to Make The Most of America’s Energy Resources – delivered Wednesday during the last State of the Union Address for his term in office – focused on initiatives Obama hopes will lead to clean sources comprising 80 percent of U.S. energy by 2035.

In a fact sheet released by the White House, Obama’s plan calls for transitioning to cleaner sources of energy to “enhance national security, protect the environment and public health, and grow our economy and create new jobs.”

The White House said U.S. renewable energy use has nearly doubled over the past few years, and in 2011, the U.S. again became the “world’s leading investor in clean energy – but staying on top will depend on smart, aggressive action moving forward.”

Actually, the White House began by also calling for reliance on non-renewable and fossil fuels.

“This commitment includes the safe and responsible production of our oil and natural gas resources,” the White House said, echoing thoughts the president had already spoken:

“Nowhere is the promise of innovation greater than in American-made energy. Over the last three years, we’ve opened millions of new acres for oil and gas exploration, and tonight, I’m directing my administration to open more than 75 percent of our potential offshore oil and gas resources. Right now—right now—American oil production is the highest that it’s been in eight years. That’s right—eight years. Not only that—last year, we relied less on foreign oil than in any of the past 16 years. But with only 2 percent of the world’s oil reserves, oil isn’t enough.”

Following are the fact sheet points in their entirety:

President Obama’s Plan to Advance Safe Production of Oil and Gas Resources To Create Jobs, Enhance Energy Security, and Cut Pollution

Make a new lease sale in the Gulf of Mexico to move forward on our national commitment to safe and responsible oil and gas development: In his State of the Union Address, the President directed the Department of Interior to finalize a national offshore energy plan that makes 75 percent of our potential offshore resources available for development by opening new areas for drilling in the Gulf and Alaska. On Thursday, the President will take a concrete step forward to develop our oil and gas resources, announcing that the Department of Interior will hold a new lease sale in the Gulf of Mexico. This lease sale will make approximately 38 million acres available, and could result in the production of 1 billion barrels of oil and 4 trillion cubic feet of natural gas.

Promote safe, responsible development of the near 100-year supply of natural gas, supporting more than 600,000 jobs while ensuring public health and safety: In 2009, we became the world’s leading producer of natural gas. In the State of the Union, the President directed the Administration to ensure safe shale gas development that, according to independent estimates, will support more than 600,000 jobs by the end of the decade. These actions will include moving forward with common-sense new rules to require disclosure of the chemicals used in fracking operations on public lands.

Reducing our dependence on oil by encouraging greater use of natural gas in transportation: The President’s plan includes: proposing new incentives for medium- and heavy-duty trucks that run on natural gas or other alternative fuels; launching a competitive grant program to support communities to overcome the barriers to natural gas vehicle deployment; developing transportation corridors that allow trucks fueled by liquefied natural gas to transport goods; and supporting programs to convert municipal buses and trucks to run on natural gas and to find new ways to convert and store natural gas.

Harnessing American ingenuity to catalyze breakthrough technologies for natural gas: The Advanced Research Projects Agency – Energy (ARPA-E) will announce a new research competition in the coming months that will engage our country’s brightest scientists, engineers and entrepreneurs to find ways to harness our abundant supplies of domestic natural gas to lessen our dependence of foreign oil for vehicles. The breakthrough technologies they will develop, whether they are for new ways to fuel our cars with natural gas or a method to turn that gas into liquid fuel, promise to break our dependence on foreign oil for our cars and trucks, allow us to breathe cleaner air, and ultimately save consumers at the pump. To date ARPA-E has hosted four rounds of competitions and attracted over 5000 applications from research teams, which has resulted in approximately 180 cutting edge projects.

The President’s Commitment to Clean Energy

Doubling the share of electricity from clean energy sources by 2035: The centerpiece of the Administration’s strategy is a Clean Energy Standard, or “CES” – a flexible approach that harnesses American ingenuity and innovation, and channels it toward a clean energy future. By creating a market here at home for innovative clean energy technologies, we will unleash the ingenuity of our entrepreneurs and ensure that America leads the world in clean energy.

Supporting clean energy with targeted tax incentives: The President supports renewing and extending a number of proven and successful provisions that are crucial to the continued growth of the domestic clean energy sector. This includes tax incentives for clean energy manufacturing, which could create up to 100,000 jobs, and the Production Tax Credit to support investment in the deployment of clean energy technologies like wind and solar.

Opening public lands for private investments in clean energy: To enhance energy security and create new jobs, the Department of the Interior is committed to issuing permits for 10 gigawatts of renewable generation capacity – enough to power 3 million homes – from new projects on our public lands by the end of 2012.

Securing renewable energy for the U.S. Navy: Securing a safe, clean and reliable energy supply for our nation’s defense forces is essential to carrying out missions vital to the security of the United States. The Department of Navy has committed to adding 1 gigawatt of renewable energy produced from sources like solar, wind, and geothermal to its energy portfolio for shore-side installations – enough to power 250,000 homes. Using existing authorities such as power purchase agreements, the Navy will ensure these energy projects are cost neutral and require no up-front investments by the government.

Energy and politics

It would appear everything in the country where it has been said “United we stand, divided we fall,” has political ramifications about which various factions rally around or oppose.

With regard to energy, in which billions of dollars, millions of lives, and the future of this society depend on how it is managed, political considerations are quite explicit.

But what do you think? Is the president’s outline feasible?

His call for clean energy is harmonious with the Volt, as his opponents have more than pointed out, and his agenda naturally goes far beyond the automotive sector.

We’ve seen for decades how presidents have championed energy issues, made poignant statements, observed critical facts, warned the hand writing is on the wall …

Will facts finally sink home, and will positive “change” really take place soon enough?

Looking at the points above, would you amend the president’s focus in any way?

If the thought of “politics” turns you off, fine. You can alternately think about this as being about life as we know it.

So what are truths, policies, or directions that more people need to agree upon?

At this stage, the one truth we can all see, if nothing else, is that solutions are needed.

Source: GM-Volt.com

Alternate Energy Fuel Provisions in the Tax Relief Bill

Of course, the Tax Relief bill has alternate energy provisions. Why wouldn't it?

US President Barack Obama on Friday signed H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (“Middle Class Tax Relief Act of 2010”). The bill, among its other provisions, contains a number of provisions related to energy (Title VII, Subtitle A) and within that, provisions related to fuels.

Ethanol. The bill extends the Volumetric Ethanol Excise Tax Credit (VEETC) through 2011 at the current rate of $0.45/gallon US. The bill also extends through 2011 the existing $0.54/gallon, secondary tariff on imported ethanol and the related tariff ($0.227/gallon) tariff on ethyl tertiary-butyl ether (ETBE).

The bill also extends through 2011 the $0.10/gallon producer tax credit for small ethanol producers producing no more 60 million gallon of ethanol a year. The tax credit is applicable to only the first 15 million gallons of production for eligible producers.

Biodiesel and renewable diesel. The bill extends the $1/gallon US production tax credit for biodiesel and diesel fuel created from biomass, as well as the $0.10/gallon credit for small agri-biodiesel producers through 2011.

Alt fuel and alt fuel mixtures. The bill extends through 2011 the $0.50/gallon production tax credit for alternative liquid fuels derived from biomass, compressed or liquefied biogas, national gas and propane. The bill excludes black liquor (liquid fuel derived from a pulp or paper manufacturing process) from credit eligibility.

Alternative fuel vehicle refueling property. The measure extends the 30% investment tax credit for alternative vehicle refueling property for one year, through 2011.

Refined Coal. The bill extends through 2011 the placed-in-service deadline for qualifying refined coal facilities. As defined in Title 26 of the US Code (The Internal Revenue Code of 1986), refined coal means a fuel which is a liquid, gaseous or solid fuel produced from coal (including lignite) or high carbon fly ash, including such fuel used as a feedstock; and is sold with the reasonable expectation that it will be used to produce steam, resulting in a qualified emission reduction.

Suspension of Limitation on Percentage Depletion for Oil and Gas from Marginal Wells. The bill extends for one year the suspension on the taxable income limit for purposes of depleting a marginal oil or gas well.

President Obama Spells Out Rules for the Future of GM and Chrysler

President Obama at News Conference with Timothy Geithner




President Barack Obama said Monday that neither General Motors nor Chrysler has proposed sweeping enough changes to justify further large federal bailouts, and demanded "painful concessions" from creditors, unions and others as their price for survival.

Obama also raised the possibility of a controlled bankruptcy to help either or both "restructure quickly and emerge stronger" — uttering the term that industry and union officials have warned repeatedly could lead to the collapse of an entire domestic industry.

With his words, Obama underscored the extent to which the government is now dictating terms to two of the country's iconic corporations — forcing the departure of Rick Wagoner as CEO of General Motors, and bluntly warning it may pull the plug on either or both companies.

The Bush administration late last year approved $17 billion in federal funds to help GM and Chrysler survive. It also demanded both companies submit restructuring plans that the Obama administration would review.

Even as he pronounced their effort unsatisfactory, the president said the administration will offer General Motors "adequate working capital" over the next 60 days to produce a reorganization plan acceptable to the administration.

He said Chrysler's situation is more perilous, and the government will give the company 30 days to overcome hurdles to a merger with Fiat, the Italian automaker. If they are successful "we will consider lending up to $6 billion to help their plan succeed," he said.

Obama spoke at the White House with the Big 3 standing at yet another crossroads. As the president noted, the industry has shed over 400,000 jobs in the past year as the recession took hold. Officials announced last week bailout funds would be made available to companies that supply the automakers, an attempt to keep them afloat.

Obama said he is committed to the survival of an auto industry — on terms that will allow it to compete internationally.

"But we also cannot continue to excuse poor decisions," he said. "And we cannot make the survival of our auto industry dependent on an unending flow of tax dollars."

He also said some of the industry's progress has scarcely been noticed. He mentioned that the North American car of the year in 2008 was produced by GM.

"Let me be clear: the United States government has no interest or intention of running GM," he said.

But that was at the same time he was formally announcing the departure of Wagoner, whom administration officials forced into retirement on Sunday in preparation for the president's remarks.

"This is not meant as a criticism of Mr. Wagoner, who has devoted his life to this company; rather it's a recognition that it will take a new vision and new direction to create the GM of the future."

Other changes at GM include new directors on its board. Fritz Henderson, GM's president and chief operating officer, became the new CEO. Board member Kent Kresa, the former chairman and CEO of defense contractor Northrop Grumman Corp., was named interim chairman of the GM board.

"The board has recognized for some time that the company's restructuring will likely cause a significant change in the stockholders of the company and create the need for new directors with additional skills and experience," Kresa said in a written statement.

The Obama move comes amid public outrage over bonuses paid to business leaders and American International Group executives — set against a severely ailing economy.

GM failed to make good on promises made in exchange for $13.4 billion in government loans. Chrysler, meanwhile, has survived on $4 billion in federal aid during this economic downturn and the worst decline in auto sales in 27 years. In progress reports filed with the government in February, GM asked for $16.6 billion more and Chrysler wanted $5 billion more.

GM owes roughly $28 billion to bondholders. Chrysler owes about $7 billion in first- and second-term debt, mainly to banks. GM owes about $20 billion to its retiree health care trust, while Chrysler owes $10.6 billion.

GM and Chrysler employ about 140,000 workers in the U.S. In February, GM said it intended to cut 47,000 jobs around the globe, or almost 20 percent of its work force, close hundreds of dealerships and focus on four core brands — Chevrolet, Cadillac, GMC and Buick.

Source: Yahoo News