Conversion supporters petitioning Obama Administration to extend tax incentives to plug-in conversions

The Obama Administration provides an online platform for grassroots petitions urging action on a range of issues. Entrepreneurs and advocates for electric and plug-in hybrid vehicles conversions have taken advantage of the platform to create a petition urging the Administration to extend the Qualified Plug-in Electric Drive Motor Vehicles (IRC 30D) tax incentives, currently granted for new plug-in vehicles, to plug-in conversions.

Conversions target 250M existing vehicles on the roads, can save over 40% of fuel use or no fuel at all, have a smaller carbon footprint than new car since they reuse most of the original vehicle, and cost less to buy as an incremental expense making plug-in more affordable.

Supporting Equal Incentives for Conversions will: stimulate jobs to a different workforce segment than new cars, more quickly expand the number of fuel saving vehicles on the road, develop plug-in / EV industry expertise more broadly and quickly across the country and reach 1M plug-ins by 2015.

—Equal Incentives for Conversions petition

Jack Chen, of Enginer, Inc. (Troy, Michigan and Shanghai, China), who created the petition, notes that aftermarket plug-in conversion should be a big component of solving energy security and global warming issues. However, he notes:

The US Federal policy discourages aftermarket plug-in conversion in general with no tax incentives that are provided to new plug-in vehicles ($2,500-$7,500 tax credit). Without the same incentives, the plug-in conversion industry will be put into a disadvantaged position and can’t be formed.

A petition needs to reach 25,000 signatures in order to be reviewed by White House staff (and 150 to be searchable); the Equal Incentives for Conversions petition currently has 106.

Source: Green Car Congress

80% of America’s Electricity Could Be Supplied By Current Green Energy Tech

The Department of Energy (DOE) has conducted the largest ever examination of the America’s potential renewable energy capacity. The outcome – the DOE found that currently existing renewable energy technology would be able to supply up to 80% of America’s daily electricity use by the year 2050.

This massive finding was done by the DOE’s National Renewable Energy Laboratory. The DOE concedes that achieving the 80% rate is going to be an uphill battle, but it is possible. For starters, massive changes will have to be made to America’s infrastructure in order to get the full benefit from renewable energy power sources. The technology might be good enough but the national grid is not. Another challenge foreseen by the DOE is increasing the transmission capabilities for wind energy. Wind energy must expand beyond 439 gigawatts if the 80% figures are to be fulfilled. Current wind energy capacity in America is anticipated to hit 50 gigawatts by the year 2016.

Progress is being made. President Obama’s administration has invested more money into renewable energy research and grid capacity growth than any other administration. Globally renewable technology supplied about 20% of the world’s energy in 2011; an increase of around 8% from 2010. In the America, renewable energy generated close to 13% of all electricity used in the nation during 2011. Additionally, from 2009 the price of solar cells dropped by almost 50% and wind turbine prices fell by around 10%.

Despite the DOE predictions fossil fuels will not be going away; but their roll could be greatly diminished. Currently nuclear, coal, and fossil fuels supply more than 60% of America’s energy needs.

Source: Gas2.0

Obama Wants to Add Rebates to CNG Vehicles as Well as EV's

Continuing his efforts to reduce U.S. dependence on imported oil, President Barack Obama yesterday proposed expanding tax credits now offered to buyers of plug-in cars to those who buy natural-gas vehicles as well.

Given the ugly politics around electric cars and the presidential election season, the proposals aren't given much chance of getting enacted this year, if ever.

But Obama doubled down on his calls to end tax incentives for the petroleum industry, calling oil the "fuel of the past" and urging that U.S. transportation migrate over time to a mix of fuels.

His speech continued a consistent theme of the current administration: Gas prices hurt, but oil dependency is worse.

The president made his proposals at a Daimler truck plant in North Carolina--The New York Times noted that it was his fourth trip to the contested state in six months--and called for Congress to end $4 billion of tax incentives and subsidies to the oil industry to offset the cost.

"Promising" new energy sources

“It’s time to end that taxpayer giveaway," Obama said, calling the oil industry one that's "never been more profitable" and repeating his call for the country to invest in new sources of clean energy that have "never been more promising."

Specifically, Obama called for the existing maximum tax credit of $7,500 for purchase of an electric car to be raised to $10,000.

He proposed that the credit be converted to an effective purchase rebate, which buyers receive within weeks--rather than a tax credit whose effect is seen up to 15 months later--by letting buyers transfer the credit to dealers or financial entities when they purchase.

2013 Chevrolet Silverado 2500 HD bi-fuel (natural gas & gasoline) pickup truck

Plug-ins plus natural gas

He also suggested that credit be expanded to include not only plug-in cars, but those fueled by natural gas and hydrogen as well.

And Obama proposed a new tax incentive for commercial buyers of such vehicles, cutting their taxes over five years by half the increased cost of the alternative-fuel vehicle against a comparable gasoline or diesel vehicle.

Together, those proposals would total $3.7 billion in new incentives, according to the Detroit News.

Infrastructure for up to 15 cities

Finally, the president proposed a second Department of Energy "grand challenge" of $1 billion, to fund installation of alternative-fueling infrastructure in up to 15 cities, accompanied by $650 million in R&D funding to increase the range of electric, natural-gas, and hydrogen vehicles.

Roughly one-third of those cities would install infrastructure for fueling natural-gas vehicles, with the rest continuing to add public charging stations for plug-in electric vehicles.

Barack Obama in Detroit

Addressing concerns over higher gas prices, Obama cited statistics that indicate domestic oil production has increased, more acres are being explored for drilling, and the number of permits issued for pipelines has risen during his time in office.

Beware proposals for $2 gas

The president continued on the path of what he called an "all of the above" energy strategy, but engaged in a bit of political positioning when he warned against politicians proposing "phony election-year promises" for reducing gasoline prices to $2 a gallon "that never come about."

The New York Times coverage noted that Obama did not mention his longstanding goal of having 1 million plug-in vehicles on the nation's roads by 2015.

Source: Green Car Reports

White House annouces $4.7b effort for advanced-technology vehicles, including EV Everywhere

It's a big week for compressed natural gas vehicles, thanks to President Obama's announcement today that his administration wants to increase federal support for CNG vehicles by introducing a tax credit similar to the one in place for plug-in vehicles. Plug-in vehicles, too, could get a big boost – and a double-whammy at that – with the current tax credit exchanged for a point-of-sale rebate and an increase in the maximum value from $7,500 to $10,000. The President made the announcement today at a Daimler Trucks North America plant in North Carolina.

The White House is proposing spending $3.7 billion on the the tax credits and another $1 billion that would go directly 10 or 15 communities through a "Race to the Top" challenge that
will allow the local governments "to invest in the necessary infrastructure, remove the regulatory barriers, and create the local incentives to support deployment of advanced vehicles at critical mass." This challenge is "fuel neutral" and thus allows "communities to determine if electrification, natural gas, or other alternative fuels would be the best fit."

The White House also announced a new "EV Everywhere" plan, which the White House described as, "a clean energy grand challenge to make electric-powered vehicles as affordable and convenient as gasoline-powered vehicles for the average American family within a decade." The White House says driving electric will save the average driver $100 a month, which will be much more valuable when the upfront cost of an EV drops and more people can afford one. To this end, EV Everywhere "will invest in breakthrough R&D for advanced batteries, electric drivetrain technologies, lightweight vehicle structures, and fast charging technology."

As the President said in North Carolina today:

Here is the truth. If we are going to control our energy future, then we've got to have an all-of-the-above strategy. We've got to develop every source of American energy – not just oil and gas, but wind power and solar power, nuclear power, biofuels. We need to invest in the technology that will help us use less oil in our cars and our trucks, in our buildings, in our factories. That's the only solution to the challenge. Because as we start using less, that lowers the demand, prices come down. It's pretty straightforward. That's the only solution to this challenge.

Source: Autoblog Green

Obama administration looks to purchase 100 electric vehicles"

The General Services Administration (GSA), which oversees two-thirds of the 600,000-plus vehicles in the U.S. government's fleet, is putting the final touches on its first 100-unit purchase of electric vehicles, according to a U.S. Department of Energy official. Patrick Davis, the DOE's vehicle technologies program director, told a Senate panel that:

The administration shares your commitment to upgrading the federal fleet and is finalizing the procurement of 100 electric vehicles.

According to Automotive News (sub. req.), GSA spokeswoman, Sara Merriam, declined to say when the purchases would be officially announced, which makes and models are involved and when the vehicles would join the government's fleet. However, back in early May, when the GSA announced that the average miles-per-gallon rating of the government's fleet of vehicles jumped from 19.1 in 2010 to 23.4, GSA administrator, Martha Johnson, stated:

We will be depending on innovative technologies and products coming out of Detroit to help us achieve these goals, and I am confident that American automakers will continue to rise to the challenge.

So, we'd assume that the Chevrolet Volt – though, technically not an electric vehicle – will account for the bulk majority of the GSA's 100-unit order, while the Nissan Leaf – with its made in Japan status– won't be as popular a pick. Your thoughts?



Source: Autoblog Green

Obama sets goal of reducing US oil imports by 1/3 by 2025; domestic and Western Hemisphere production, natural gas, biofuels, electric vehicles, fleet

Warning that “there are no quick fixes” and that “we will keep on being a victim to shifts in the oil market until we get serious about a long-term policy for secure, affordable energy”, US President Barack Obama announced a goal of cutting US oil imports by one-third by 2025 from the 2008 level of 11 million barrels of oil per day. Obama was delivering a speech on energy policy at Georgetown University.

Meeting the goal of cutting US oil dependence depends largely on two things, Obama said: finding and producing more oil at home, and reducing dependence on oil with cleaner alternative fuels and greater efficiency. While he noted that imported oil will remain an important part of the US energy portfolio for quite some time, Obama pointed to the potential to partner with countries such as Canada, Mexico, and Brazil (i.e., an emphasis on regional and Western Hemisphere sources) “which recently discovered significant new oil reserves, and with whom we can share American technology and know-how”.

Increasing US oil supply. Obama noted that last year, US oil production reached its highest level since 2003 and that for the first time in more than a decade, imported oil accounted for less than half the liquid fuel consumed. To increase domestic supply, Obama said:

• The Administration is encouraging offshore oil exploration and production—as long as it’s safe and responsible. He said that the Administration has already approved 39 new shallow water permits, and an additional 7 deepwater permits in recently weeks. For onshore drilling, the Administration approved more than two permits last year for every new well drilled.

• The Administration is pushing the oil industry to produce on leases already held. A newly released Department of the Interior (DOI) report shows that more than 70% of the tens of millions of offshore acres under lease are inactive, neither producing nor currently subject to approved or pending exploration or development plans. This includes almost 24 million inactive leased acres in the Gulf of Mexico, which potentially could hold more than 11 billion barrels of oil and 50 trillion cubic feet of natural gas.

  For onshore leases, the review found that approximately 45% of all leases and approximately 57% of all leased acres are inactive. That means that out of a total of over 38 million leased onshore acres, almost 22 million leased onshore acres that are not being used.

That’s why part of our plan is to provide new and better incentives that promote rapid, responsible development of these resources. We’re also exploring and assessing new frontiers for oil and gas development from Alaska to the Mid- and South Atlantic.

But let’s be honest—it’s not the long-term solution to our energy challenge. America holds only about two percent of the world’s proven oil reserves. And even if we drilled every drop of oil out of every one of those reserves, it still wouldn’t be enough to meet our long-term needs. All of this means one thing: the only way for America’s energy supply to be truly secure is by permanently reducing our dependence on oil. We have to find ways to boost our efficiency so that we use less oil. We have to discover and produce cleaner, renewable sources of energy with less of the carbon pollution that threatens our climate. And we have to do it quickly.

—President Obama

New sources of energy. The President pointed to US natural gas as one of the options for new sources of energy.

Another substitute for oil that holds tremendous promise is renewable biofuels—not just ethanol, but biofuels made from things like switchgrass, wood chips, and biomass. If anyone doubts the potential of these fuels, consider Brazil. Already, more than half—half—of Brazil’s vehicles can run on biofuels. And just last week, our Air Force used an advanced biofuel blend to fly an F-22 Raptor faster than the speed of sound. In fact, the Air Force is aiming to get half of its domestic jet fuel from alternative sources by 2016. And I’m directing the Navy and the Departments of Energy and Agriculture to work with the private sector to create advanced biofuels that can power not just fighter jets, but trucks and commercial airliners.

So there’s no reason we shouldn’t be using these renewable fuels throughout America. That’s why we’re investing in things like fueling stations and research into the next generation of biofuels. Over the next two years, we’ll help entrepreneurs break ground on four next-generation biorefineries—each with a capacity of more than 20 million gallons per year. And going forward, we should look for ways to reform biofuels incentives to make sure they meet today’s challenges and save taxpayers money.

—President Obama

The President also emphasized the need to reduce consumption of oil through increased fuel efficiency standards for cars and trucks, an pointed to the upcoming first round of efficiency standards for heavy-duty trucks and the second round of CAFE new CAFE standards for light-duty vehicles.

To achieve our oil goal, the federal government will lead by example. The fleet of cars and trucks we use in the federal government is one of the largest in the country. That’s why we’ve already doubled the number of alternative vehicles in the federal fleet, and that’s why, today, I am directing agencies to purchase 100% alternative fuel, hybrid, or electric vehicles by 2015. And going forward, we’ll partner with private companies that want to upgrade their large fleets.

—President Obama

To leverage the existing work being done on developing electric vehicles and a supporting infrastructure, Obama said that the government needed to offer more powerful incentives to consumers, and to reward communities that pave the way for adoption of these vehicles.

The President also emphasized the need for cleaner, renewable sources of electricity, and said that while today two-fifths of US electricity comes from clean energy sources, including nuclear, he thought that could be doubled.

That’s why, in my State of the Union Address, I called for a new Clean Energy Standard for America: by 2035, 80 percent of our electricity will come from an array of clean energy sources, from renewables like wind and solar to efficient natural gas to clean coal and nuclear power.

Now, in light of ongoing events in Japan, I want to say another word about nuclear power. America gets one-fifth of our electricity from nuclear energy. It has important potential for increasing our electricity without adding carbon dioxide to the atmosphere. But I’m determined to ensure that it’s safe. That’s why I’ve requested a comprehensive safety review by the Nuclear Regulatory Commission to make sure that all of our existing nuclear energy facilities are safe. We’ll incorporate those conclusions and lessons from Japan in designing and building the next generation of plants. And my Administration is leading global discussions towards a new international framework in which all countries operate their nuclear plants without spreading dangerous nuclear materials and technology.

—President Obama

Source: Green Car Congress

Feds Pondering Banning Electric Vehicle Alert Noise Shutoff

2011 Hyundai Sonata Hybrid









On-off buttons for noise-making devices in electric and hybrid vehicles may be banned under rules federal regulators are developing.

Under a law President Obama signed Jan. 4, EVs and hybrids must have sound-emitting devices in a few years. The law requiring automakers to install such devices addresses concerns about dangers posed to pedestrians unable to hear the vehicles, which are nearly silent at low speeds.

Hyundai opted to remove an on-off switch for the Sonata Hybrid's Virtual Engine Sound System after learning that the National Highway Traffic Safety Administration was considering banning on-off buttons for the devices.

"We were hearing that at some point NHTSA would not allow [the noise devices] to be turned off," said Jim Trainor, a Hyundai spokesman. "We said, 'Why put this thing out there now and have to redo it in a few months?'"

Hyundai had planned to put an on-off button for the Sonata Hybrid’s Virtual Engine Sound System in a cluster on the instrument panel left of the steering column.

NHTSA is expected to issue a final rule enforcing the law within three years.

Hyundai had planned to include an on-off button for the noise device in a cluster left of the steering column on the Sonata Hybrid's instrument panel, Trainor said. But now, whenever the car is running, the system will produce a sound similar to that of a gasoline engine at idle.

Hyundai made the decision just before the Sonata Hybrid's production launch in December, resulting in delays of most deliveries of the car from January until later this month. Trainor declined to say how many Sonata Hybrids have arrived in the United States, but he said about 700 are in port or at sea.

Dealers can expect cars to trickle into dealerships before becoming more widely available in late March or early April, Trainor said. Unlike the rest of the U.S.-made Sonata lineup, the hybrid is built in South Korea.

Source: Automotive News

President Obama To Propose Changes For Federal Tax Credits When Purchasing EV's

Nissan Leaf Taking On Electrons










U.S. President Barack Obama’s administration will propose that consumers receive a $7,500 tax credit for electric cars at the dealership, reducing the sticker price, an Energy Department official said.

The initiative will be included in the president’s budget next week, David Sandalow, assistant secretary for policy and international affairs, said on a conference call with reporters today.

Consumers who have used hybrid- and electric-vehicle credits have received the benefits when they filed their tax returns. The administration wants to make the cars more affordable at the point of sale, in the same way the 2009 “Cash for Clunkers” program worked, Sandalow said.

“The current credit is going to be reformed so it’s claimable by dealers or others,” Sandalow said. “There will be clear requirements to ensure the benefit is passed onto the consumer.”

The administration will also propose grants for as many as 30 communities to build infrastructure to recharge electric vehicles, Sandalow said. The president’s budget will also include new research and development investments in electric drive, battery and storage technologies, he said.

Tesla Shares

Tesla Motors Inc., an electric-car maker backed by Toyota Motor Corp. and Daimler AG, rose $1.42, or 6.2 percent, to $24.49 at 4 p.m. New York time in Nasdaq Stock Market trading. A123 Systems Inc., a U.S. battery maker, rose 61 cents, or 6.6 percent, to $9.92.

J.D. Power and Associates, a research company in Troy, Michigan, projected last month that under current market conditions, there would be 750,000 plug-in hybrid vehicles like General Motors Co.’s Chevrolet Volt and battery-electric cars like Nissan Motor Co.’s Leaf by 2015.

GM, with about 24 percent of the electric-vehicle market, and Nissan will be the winners, because they’re already selling the cars, said Michael Omotoso, director of powertrain forecasting at J.D. Power. Honda Motor Co., which is at least a few years away from selling an electric model, will be among the losers, he said.

Volt, Leaf

The redesigned electric-vehicle tax credit would be available to both battery electrics like the Leaf and plug-in hybrids such as the Volt, Energy Department spokeswoman Jen Stutsman said in an e-mail. More specifics will be worked out with Congress, she said.

The budget proposal will be the latest effort to bolster tax credits aimed at bringing advanced technology cars to the U.S. sooner.

Representative Sander Levin of Michigan, the top Democrat on the House Ways and Means Committee, said last month he backed legislation to enable automakers to claim the tax credits on 500,000 electric vehicles. The current cap is 200,000.

The Senate Energy and Natural Resources Committee last year approved legislation to create a $2 billion program with the goal of putting 400,000 electric cars on the road in three years. The Senate didn’t vote on the measure.

The Energy Department released a report on the pledge that the president made in the State of the Union address to have 1 million electric vehicles on the road by 2015.

The current market outlook suggests that while the goal is ambitious, it is achievable, according to the report. The auto industry will have enough manufacturing capacity, it said. Additional steps are needed to help companies develop new technology, reduce costs and spur consumer demand, it said.

Source: Businessweek

DOE Releases New Analysis Showing Significant Advances in Electric Vehicle Deployment - 1M EV's by 2015

The US Department of Energy (DOE) has released One Million Electric Vehicles by 2015, a short status report on advances in deployment and progress to date in meeting President Obama’s goal of putting one million plug-in electric vehicles (PEV) on the road by 2015.

The report concludes that while the 1-million unit goal is ambitious, it is also achievable based on steps already taken as part of the Recovery Act along with proposed additional policy initiatives including improvements to existing consumer tax credits, programs to help cities prepare for the growing demand for electric vehicles, and strong support for research and development to continue reducing the cost of electric vehicles.

While several high profile vehicle market introductions such as the Chevrolet Volt and the Nissan Leaf have been initiated, questions remain regarding the potential to reach the 2015 goal. Production capacity must be established, and technology, vehicle cost and infrastructure barriers must be addressed to achieve large-scale market introduction. This report provides a progress update toward achieving the goal:

• The status of vehicle sales and future production volume estimates
• Current federal government policies, investments, research and development, and demonstration efforts supporting the deployment of EVs
• EV consumer demand

—“One Million Electric Vehicles by 2015”

Basis. Conventional hybrid electric vehicles (HEVs) have been on sale in the US for more than ten years; new vehicle hybrid sales in 2010 were approximately 2.5%. To reach the one million vehicle goal, plug-in EVs will need to average just under 1.7% of sales through 2015 (assuming sales of 12 million light-duty vehicles per year, according to the report.

Production capacity. The DOE report estimates that the production capacity of PEV models announced to enter the US market through 2015 should be sufficient to achieve the goal of one million units. The table below, compiled in the report, shows EVs expected to enter the US commercial market over the next few years, including the production capacity by year, based on manufacturer announcements and media reports.

Auto manufacturers such as Chrysler, BYD, Coda, Honda, Mitsubishi, Hyundai, Toyota, Volkswagen and Volvo are not included in this table, but have announced or are expected to introduce EVs in this time period, DOE said. These could lead to additional production capacity of several hundred thousand EVs not accounted for in this table.

Estimated US supply of PEVs from 2011-2015
Mfr. and model	2011	2012	2013	2014	2015	Total
Fisker Karma EREV	1,000	5,000	10,000	10,000	10,000	36,000
Fisker Nina EREV		5,000	40,000	75,000	75,000	195,000
Ford Focus EV		10,000	20,000	20,000	20,000	70,000
Ford Transit Connect EV	400	800	1,000	1,000	1,000	4,200
Chevy Volt EREV	15,000	120,000	120,000	120,000	120,000	505,000
Navistar eStar EV	200	800	1,000	1,000	1,000	4,000
Nissan LEAF EV	25,000	25,000	50,000	100,000	100,000	300,000
SEV Newton EV	1,000	1,000	1,000	1,000	1,000	5,000
Tesla Model S EV		5,000	10,000	20,000	20,000	55,000
Tesla Roadster EV	1,000					1,000
Think City EV	2,000	5,000	10,000	20,000	20,000	57,000
Cumulative Total						1,222,200

As a result, DOE concludes, meeting the goal is not likely to be constrained by production capacity. However, additional policy steps are needed to further drive innovation, reduce costs, and spur consumer demand, the report says.

The Obama Administration is proposing a three-part strategy that supports electric vehicle manufacturing and adoption through improvements to tax credits in current law, investments in research and development (R&D), and a new competitive program to encourage communities to invest in electric vehicle infrastructure.

This plan is intended to drive demand and position the United States as a global leader in manufacturing and deploying next-generation vehicle technologies. The strategy includes:

• Make electric vehicles more affordable with a rebate up to $7,500: The President is proposing to transform the existing $7,500 tax credit for electric vehicles into a rebate that will be available to all consumers immediately at the point of sale.

• Advance innovative technologies through new R&D investments: Building on Recovery Act investments, the President’s Budget proposes enhanced R&D investments in electric drive, batteries, and energy storage technologies.

• Reward communities that invest in electric vehicle infrastructure through competitive grants: To provide an incentive for communities to invest in EV infrastructure and remove regulatory barriers, the President is proposing a new initiative that will provide grants to up to 30 communities that are prioritizing advanced technology vehicle deployment.

Advanced Technologies R&D. The President has announced that the FY 2012 Budget will include enhanced R&D investments in battery and other electric drive technologies. Investments will support R&D initiatives through DOE’s Vehicle Technologies Program, as well as a new Energy Innovation Hub devoted to developing better batteries and energy storage capacity to support electric vehicles and other technologies. This focus on continued innovation complements ongoing R&D to support the development of critical technologies needed for the widespread introduction of electric drive vehicles. These efforts include battery development, power electronics and electric motors, and electric drive vehicle systems.

Consumer demand. Although cumulative US production capacity can support more than one million PEVs by 2015, production will only reach levels supported by consumer demand, the report notes.

The report hopefully points to the economics of EVs for fleet buyers; the conversion of the current $7,500 tax credit to benefit the consumer at the point-of-sale; the attraction of PEV attributes to some consumers; and potentially higher fuel prices to buoy consumer demand for PEVs.

There is clearly substantial consumer interest in electric vehicles, as demonstrated by the larger-than-anticipated pre-orders for the Nissan Leaf and the Chevrolet Volt. Whether this interest translates into sales beyond the initial “early adopter” market will depend on initial consumer experience with these early vehicles, and on how that experience is communicated and perceived by the rest of the car buying public. Uncertainties about EVs—including their resale value, range and availability of convenient charging facilities— may impose sales barriers.

As noted earlier, there is considerable work underway to develop data on performance and reliability of EVs, and to communicate that information to the public. The performance and cost effectiveness of the early EVs in the market will be a major but unknowable factor in how many EVs are on the road by 2015. The cumulative impacts of the various policy initiatives, the experience of the early purchasers of electric-drive vehicles and future oil prices will all play a role in determining future consumer demand.

—One Million Electric Vehicles by 2015

Source: Green Car Congress

Will $7,500 Federal Tax For Electric Vehicles Be Extended to 500,000 Cars?

A day after President Obama called for 1 million electric cars on America's roads, U.S. Rep. Sandy Levin, D-Mich., said today he will try to double the number of vehicles per manufacturer eligible for federal tax credits.

Levin said he will introduce legislation that aims to allow the first 500,000 electric cars sold by an automaker to be eligible for tax credits up to $7,500. At present, the law is written so that only 200,000 are eligible.

The tax credits dramatically lower the price of an electric car to many buyers. The all-electric Nissan Leaf, for instance, lists for $32,780 before destination charges are thrown in and the Chevrolet Volt extended-range electric costs $41,000, including delivery. State and local tax credits are sometimes available as well.

In his State of the Union address, Obama again called for meeting a goal of having 1 million electric cars on the road by 2015. Conceivably that could include cars that are partially electric powered, such as hybrids.

"Green vehicles represent the vanguard of automotive innovation, but they have to be economical for consumers and profitable for manufacturers," said Levin. "Raising the cap on this credit will help carmakers reach the demand and production scale necessary for long-term viability."

Source: USA Today

Obama and Biden Outline Administration's Plan to Have 1M Advanced Technology Vehicles on US Roads by 2015

In his State of the Union address last night, President Obama highlighted his goal of making the United States the first country in the world to put one million advanced technology vehicles on the road by 2015. Following a tour of the Ener1, Inc. factory today, Vice President Biden outlined the Administration’s new plan for reaching that goal.

The Administration’s new three-part advanced technology vehicle plan—to be proposed in the new Budget—will include supporting electric vehicle manufacturing and adoption in the US through generous new consumer rebates; investments in R&D; and a new competitive program to encourage communities to invest in electric vehicle infrastructure.

• Rebates. The President is proposing to transform the existing $7,500 tax credit for electric vehicles into a rebate that will be available to all consumers immediately at the point of sale, similar to “Cash for Clunkers”. The current individual credit will be reformed into a tax credit claimable by dealers or financers with clear transparency requirements to ensure the benefit of the credit is passed on to consumers.

• R&D. Building on Recovery Act investments, the President’s Budget proposes enhanced R&D investments in electric drive, batteries, and energy storage technologies. This year’s Budget will significantly broaden R&D investments in technologies like batteries and electric drives—including a more than 30% increase in support for vehicle technology R&D and a new Energy Innovation Hub devoted to improving batteries and energy storage for vehicles and beyond.

• Infrastructure. The President is proposing a new initiative that will provide grants of up to $10 million each to up to 30 communities that are prioritizing advanced technology vehicle deployment.

The President’s Budget proposes expanding funding for vehicle technologies by almost 90% to nearly $590 million and enhancing existing tax incentives. The Recovery Act already included $2.4 billion in spending for battery and electric drive component manufacturing, and for electric drive demonstration and infrastructure.

Supported by Recovery Act investments, battery costs are projected to drop by 50% by 2013 or 2015. US-based manufacturers will be able to produce enough batteries and components to support 500,000 plug-in and hybrid vehicles by 2015, according to the Administration. The Recovery Act is also supporting the deployment of infrastructure for advanced technology vehicles.

Also, the US GSA is preparing an initial purchase of 100 plug-in hybrid electric vehicles that are anticipated to be delivered in 2011 together with more than 40,000 alternative-fueled and fuel-efficient vehicles that will replace aging and less-efficient sedans, trucks, tankers, and wreckers for Federal agencies across the country.

Source: Green Car Congress

President Obama Authorizes $3.4 Billion in Smart Grid Projects

Spend, spend and then spend some more seems to be the theme of the Obama administration. The latest winners will be companies that specialize in smart grid technologies and infrastructure. The ultimate goal of this spending is to "beef up" the grid so that it can sustain the impact of plug in vehicles. Said vehicles are virtually non-existent and will not affect our power grid for years and years and years, but hopefully this cash injection will help us when we get to that point.

From Green Car Congress:

Map of the 100 smart grid awards. Source: DOE. Click to enlarge.

Speaking at Florida Power and Light’s (FPL) DeSoto Next Generation Solar Energy Center, President Barack Obama announced $3.4 billion in grant awards to 100 private companies, utilities, manufacturers, cities and other partners—the largest single energy grid modernization investment in US history—to fund a broad range of smart grid technologies and projects.

The $3.4 billion in grant awards are part of the American Reinvestment and Recovery Act, and will be matched by industry funding for a total public-private investment worth more than $8 billion. Full listings of the grant awards by category and state are available here and here.

An analysis by the Electric Power Research Institute (EPRI) estimates that the implementation of smart grid technologies could reduce electricity use by more than 4% by 2030.

Major elements in the announcement include:

• Empowering Consumers to Save Energy and Cut Utility Bills: $1 billion. These investments will create the infrastructure and expand access to smart meters and customer systems so that consumers will be able to access dynamic pricing information and have the ability to save money by programming smart appliances and equipment to run when rates are lowest.

• Making Electricity Distribution and Transmission More Efficient: $400 million. The Administration is funding several grid modernization projects across the country that will significantly reduce the amount of power that is wasted from the time it is produced at a power plant to the time it gets to a house. By deploying digital monitoring devices and increasing grid automation, these awards will increase the efficiency, reliability and security of the system, and will help link up renewable energy resources with the electric grid.

• Integrating and Crosscutting Across Different “Smart” Components of a Smart Grid: $2 billion. Much like electronic banking, the Smart Grid is not the sum total of its components but how those components work together. The Administration is funding a range of projects that will incorporate these various components into one system or cut across various project areas—including smart meters, smart thermostats and appliances, syncrophasors, automated substations, plug in hybrid electric vehicles, renewable energy sources, etc.

• Building a Smart Grid Manufacturing Industry: $26 million. These investments will help expand the US manufacturing base of companies that can produce the smart meters, smart appliances, synchrophasors, smart transformers, and other components for smart grid systems in the United States and around the world.

More specifically, the awards are grouped into six categories:

• Advanced Metering Infrastructure (31 awards, $818 million in Recovery Act funding, $2.0 billion total investment)
• Customer Systems (5 projects, $32.4 million in Recovery Act funding, $67.3 million total)
• Electric Distribution Systems (13 projects, $254.3 million in Recovery Act funding, $509 million total)
• Electric Transmission Systems (10 projects, $148 million in Recovery Act funding, $298.4 million total)
• Equipment Manufacturing (2 projects, $25.8 million in Recovery Act funding, $51.6 million total)
• Integrated and/or Cross-cutting Systems (39 projects, $2.2 billion in Recovery Act funding, $5.2 billion total)

Among the expected outcomes of the projects, when fully implemented, are:

• Higher grid reliability, reducing power outages that cost American consumers $150 billion a year.

• Installation of more than 850 sensors—‘Phasor Measurement Units’—that will cover 100% of the US electric grid and make it possible for grid operators to better monitor grid conditions and prevent minor disturbances in the electrical system from cascading into local or regional power outages or blackouts. This monitoring ability will also help the grid to incorporate large blocks of intermittent renewable energy, like wind and solar power, to take advantage of clean energy resources when they are available and make adjustments when they’re not.

• Installation of more than 200,000 smart transformers that will make it possible for power companies to replace units before they fail thus saving money and reducing power outages.

• Installation of almost 700 automated substations, representing about 5% of the nation’s total that will make it possible for power companies to respond faster and more effectively to restore service when bad weather knocks down power lines or causes electricity disruptions.

• Power companies today typically do not know there has been a power outage until a customer calls to report it. With these smart grid devices, power companies will have the tools they need for better outage prevention and faster response to make repairs when outages do occur.

• Deployment of more than 40 million smart meters in American homes and businesses over the next few years that will help consumers cut their utility bills.

• Installation of more than 1 million in-home displays, 170,000 smart thermostats, and 175,000 other load control devices to enable consumers to reduce their energy use. Funding will also help expand the market for smart washers, dryers, and dishwashers, so that American consumers can further control their energy use and lower their electricity bills.

• Put the US on a path to get 20% or more of it energy from renewable sources by 2020.

• Reduce peak electricity demand by more than 1,400 MW—the equivalent of several larger power plants.

President Obama's Task Force Will Announce its Plans for GM and Chysler on Monday

CEO's of the "Detroit Three"






Well, they waited until the last possible moment, but it looks like the task force has made a decision. On Monday, the plan will be revealed that will maintain the viability of both auto companies.

From Automotive News:

President Barack Obama will announce the next steps to help General Motors and Chrysler LLC on Monday, the White House said, amid signs of progress for GM in talks aimed at slashing its debt and cutting costs in response to slack demand.

M CEO Rick Wagoner was in Washington Friday to meet with the autos task force, led by former investment banker Steve Rattner, which Obama has charged with overseeing emergency lending to the automakers and their suppliers.

A White House spokesman said the panel was in the process of completing about six weeks of closed-door meetings with industry executives, analysts and others with a stake in the survival of the U.S. auto industry.

"Tthey are winding down the decisions that have to be made and putting in place a plan that the president will announce on Monday," White House spokesman Robert Gibbs said.

"The president, I think, will outline what he thinks is the best way forward to achieve viability for the companies in both the short term and the longer term," Gibbs said.

A day earlier, Obama had said GM and Chrysler could expect "some" government aid if they commit to restructuring their businesses.

As part of its effort to slash costs and sell assets, GM has mandated Commerzbank to help find a new investor for its German Opel unit, according to a source.

Shares of GM gained almost 6 percent and have rallied by more than 30 percent over the past 10 trading sessions amid growing confidence that officials will not push the top U.S. automaker into bankruptcy.

Riding out the storm

GM and Chrysler have taken $17.4 billion in emergency funding from the U.S. Treasury and have asked for as much as another $21.6 billion to complete cost-cutting programs and ride out the weakest market for new cars in almost three decades.

U.S. auto suppliers have also won a $5 billion aid package intended to free up liquidity for a cash-strapped sector that analysts had warned was at risk for cascading failures.

Auto sales have been at 27-year lows so far this year and many analysts believe that March sales data, set to be released next Wednesday, will show a further weakening in demand.

Analysts expect March U.S. sales to be just above 9 million vehicles on the annualized basis tracked by the industry, down sharply from a total of 13.2 million in 2008 and below the worst-case scenario levels of demand forecast by GM and Chrysler under their cost-cutting plans just last month.

But Barclays Capital analyst Brian Johnson said the recent statements from the White House "could imply a willingness from the government to support both restructuring plans 'as is' instead of pushing for deeper cuts."

Those more painful actions could have included a Chrysler merger or a GM bankruptcy filing in order to push the automakers towards a lower cost structure, he said in a note for clients.

Progress in GM concession talks

The loans for GM and Chrysler approved under the Bush administration set a March 31 deadline for them to prove they can be made viable in order to win new government funding.

As part of that effort, both GM and Chrysler have to win concessions from creditors and from the UAW.

GM's bailout sets a target of cutting its cash outlays by getting the UAW to accept half of the $20 billion it is owed for a trust fund for retiree health care in GM stock, not cash.

CNBC reported Friday that GM had offered the union $10 billion in preferred stock at 9 percent to settle its health-care claim.

GM had no comment on that reported offer beyond saying the two sides remained in talks.

"We will not respond to speculation," UAW President Ron Gettelfinger said in a statement. "Our union is continuing to work with the task force and the auto companies to find a solution to the many issues we face."

Bargaining with bondholders

Separately, GM has given bondholders holding over $27 billion in its debt a new proposal on terms for exchanging most of that debt into equity, according to a person with direct knowledge of the negotiations.

GM sent a letter to representatives of GM bondholders earlier in the week, according to the person, who asked not to be named because of the confidential nature of the talks.

Bondholders had complained in a letter sent on Sunday to U.S. Treasury Secretary Timothy Geithner that their negotiations on restructuring GM's debt had been stalled in recent weeks.

While it will be impossible now for GM to meet the terms of the March 31 deadline for the next stage of its restructuring, U.S. officials have made it clear that this will not scuttle further aid, the person familiar with the bondholder talks said.

In Toronto, Chrysler and the Canadian Auto Workers union remained "far apart" in negotiations aimed at a cost-saving deal to help the struggling No. 3 U.S. automaker qualify for aid from the Canadian government.

CAW President Ken Lewenza said negotiations had been "very frustrating and at times confusing" as the two sides appeared to be near a deal only to see it fall apart twice in the last 48 hours.

US Fuel Economy Standards to Rise to 27.3 mpg by 2011

Ray LaHood - Transportation Secretary

Fuel-economy standards for all light vehicles will rise 8 percent, to an average of 27.3 mpg for the 2011 model year, under new U.S. rules issued today.

The regulations will use a new system that sets standards for individual models based on their size.

Cars will be required to travel an average of 30.2 miles on each gallon of fuel, up from 27.5 mpg, and light truck standards will increase by 1 mpg to 24.1 mpg, the National Highway Traffic Safety Administration said today. The combined fleet average will go up by 2 mpg.

"These standards are important steps in the nation's quest to achieve energy independence and bring more fuel-efficient vehicles to American families,'' Transporation Secretary Ray LaHood said in a statement.

Obama's stamp The rules are the first fuel-economy mandates set by the Obama administration. They stem from a U.S. energy law, enacted in December 2007, that will lift standards 40 percent by 2020 to a fleetwide average of at least 35 mpg. In January, President George W. Bush decided not to establish the first phase of that increase because of the industry's financial straits and passed the decision to his successor. President Obama faces an April 1 deadline to set the new standard for the 2011 model year. Federal law requires NHTSA to give automakers at least 18 months lead time before imposing higher standards under the corporate average fuel economy program, or CAFE. Source : Automotive News

President Obama Addresses Auto Industry in Congressional Speech

President Obama's address 2-24-09







Last evening, President Barack Obama addressed the joint Houses of Congress and stated the obvious. The United States economy is tanking, but we are Americans and we will pull out of this stupor in no time. Along the way, he described the ills of the auto industry and really did not pull any punches.

"As for our auto industry, everyone recognizes that years of bad decision-making and a global recession have pushed our automakers to the brink. We should not, and will not, protect them from their own bad practices.

"But we are committed to the goal of a re-tooled, re-imagined auto industry that can compete and win. Millions of jobs depend on it. Scores of communities depend on it. And I believe the nation that invented the automobile cannot walk away from it."

Pretty strong words from our Commander-in-Chief, but right on the mark.

Obama continues, "We know the country that harnesses the power of clean, renewable energy will lead the 21st century. And yet, it is China that has launched the largest effort in history to make their economy energy efficient. We invented solar technology, but we've fallen behind countries like Germany and Japan in producing it. New plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea."

"While our economy may be weakened and our confidence shaken, though we are living through difficult and uncertain times, tonight I want every American to know this: We will rebuild, we will recover," Obama said.

"And the United States of America will emerge stronger than before," he told a chamber packed with lawmakers, cabinet members and invited guests.

Hats off to Obama's speechwriters, who did not shy away from from the truth, yet balanced the speech with plenty of hope and optimism. I am hopeful that the US automakers will take something from this speech and become the world leaders they used to be.