April 2008

POLICY NEWS

New CAFE Fuel Economy Rules Announced

The first installment of new fuel economy standards required by the 2007 Energy bill were announced at a sunny Earth Day event in the Washington area. U.S Department of Transportation Secretary Mary Peters presented proposed regulations that would require an overall fleet of average 31.8 mpg by 2015. Congress required rules in 5-year increments that would ensure a minimum industry fleet average of 35 mpg by 2020 for both cars and light trucks. The proposal would require vehicles to be approximately 25% more fuel-efficient by 2015.

The proposal also changes the way fuel economy numbers are set for passenger cars, dividing the requirements on the basis of size and/or car attributes instead of an overall average. For passenger cars, the proposal would increase fuel economy requirements from the current 27.5 miles per gallon to 35.7 miles per gallon by 2015. For light trucks, the proposal calls for increases from 23.5 miles per gallon in 2010 to 28.6 miles per gallon in 2015.

In a prepared statement, Secretary Peters said that the plan will save America's drivers over $100 billion in fuel costs over the lifetime of the vehicles covered by the rule. The proposed rules are also expected to save 55 billion gallons of fuel and a reduction in carbon dioxide emissions estimated at 521 million metric tons.

The new rules are also estimated to cost automakers nearly $47 billion in new investments to retool plants and components, with roughly two-thirds of those investments shouldered by the Detroit 3.  The rules assume that automakers can meet the requirements with currently available technologies such as advanced transmissions and direct-injection engines. The next round of requirements may require more advanced technologies.  According to Michigan Senator Carl Levin, "its more important than ever that there is significant federal support for development of these technologies, such as advanced batteries for plug-in hybrid vehicles."

Comments on the proposed rule will be accepted by the US DOT through late June once with a final rule expected by the end of the year.

Challenges to State Standards
The new fuel economy rules are being developed as another ongoing debate continues about the role of state standards to reduce greenhouse gas emissions--the primary pollutant from the combustion of fuels. California and a dozen other states have already adopted standards that would go further than the federal fuel economy rules, but have so far been prevented from going into effect by the EPA, which has authority in this area. There is also discussion in Congress about how these issues will be addressed in upcoming climate legislation that would require economy-wide reductions in such emissions, not just for automobiles. Expect to hear much more in the year ahead about how all these issues will play out.

Additional Sources:

• National Highway Traffic Safety Administration: Average Fuel Economy Standards, Passenger Cars and Light Trucks
• Freep: New rules: 32 m.p.g. by 2015
• WSJ: Getting All the Carbon Out of Cars
• Freep: Fuel rule costs hit Detroit 3
• Freep Op Ed: New m.p.g. rule will put Detroit on high ground

Stabenow Fights for Green Collar Jobs, Advanced Technology Vehicles

Funding package included in Senate's 2009 Budget Resolution

On March 14, Senator Debbie Stabenow successfully included a $2.7 billion Green Collar Jobs package in the Senate's 2009 Budget Resolution.

"Any budget is about values and priorities and the nation's budget is no exception," said Stabenow. "This budget focuses on what is most important for families across Michigan and across our country - creating good paying jobs here at home. We are creating those jobs by rebuilding our nation's aging roads and other infrastructure, promoting education and job training and investing in the future of our energy economy through my Green Collar Jobs Initiative."

The House and Senate will now work to iron out differences in their respective budget bills. While many of the activities contained within the Green Collar Jobs Initiative were authorized in the 2007 Energy Independence and Security Act (EISA), full funding is essential to making these efforts a reality.

Key provisions of the Green Collar Jobs Initiative include:

• Energy efficiency and conservation block grants for cities, counties and states ($1.15 billion)Increased research and production of advanced battery technologies, including lithium ion batteries and hybrid electrical systems ($250 million)Green Jobs Worker Training Program funding ($100 million)Loans to retool factories for the production of advanced technology vehicles (i.e. hybrids, plug-ins hybrids and fuel cells) ($1 billion)
• Investment to encourage production and build infrastructure for advanced biofuels, such as cellulosic ethanol and biodiesel ($100 million)

Some funding for new energy technologies that reduce global warming emissions (including advanced automotive technologies), may also become available through the Department of Energy loan guarantee program.

Additional Sources:

• Stabenow: Senate Budget Creates Jobs, Invests in the Middle Class
• The Bay City Times: Stabenow Gets It
• DOE Plans $38.5B in Loan Guarantees for Reduction of Criteria and GHG Emissions

TECHNOLOGY NEWS

News from the SAE International World Congress

Chrysler plans hybrid Dodge Ram

At the 2008 SAE International World Congress, Chrysler announced plans to release a gasoline-electric hybrid Dodge Ram pickup truck in 2010. Frank Klegon, Chrysler executive vice president of product development, said the new hybrid is part of Chrysler's effort to revitalize its product portfolio.

Last year, Chrysler partnered with German supplier GETRAG to develop new dual-clutch transmissions, which will debut this spring. Dual-clutch technology features two independent gear sets with separate clutches. During shifts, the next gear is anticipated and selected. Then one clutch is opened while the other is closed, allowing shifting without torque interuption. This is expected to result in better performance, as well as a 5 to 10% fuel economy increase in future Chrysler Group vehicles.

The new technology will be available in international markets on the all-new 2009 Dodge Journey, the 2009 Dodge Avenger and the 2009 Chrysler Sebring.

Greener Auto Technology: Part by Part

The SAE International 2008 World Congress began on Monday, April 14 in downtown Detroit. Stricter CAFÉ provisions and other regulations are making fuel efficiency this year's focus. From magnetized steering wheels to soam foam seats, the companies and people attending the trade show are working to increase fuel efficiency one part at a time. Weight is a critical issue. Thus, carbon fiber is huge because it is both stronger and lighter, providing improved performance and efficiency.

Additional Sources:

• Engineers focus on greener auto tech
• Parts and systems fine-tuned; firms will go green gradually
• Chrysler plans hybrid Dodge Ram

Update on the Chevy Volt

More than just a concept

On April 4, General Motors announced that it will begin road testing the batteries for its Chevrolet Volt plug-in hybrid electric vehicle this month. In response to the hype surrounding the Volt since its introduction as a concept vehicle at the 2007 Detroit Auto Show, GM has said that it expects to have the Volt on the road by November 2010.Last November, GM's vice president for product development told a group of automotive journalists that the feasibility of the Chevy Volt plug-in hybrid concept will be proven by next Easter (See: Bob Lutz, the Chevy Volt, and the Easter Bunny). By Easter, Lutz expected the Volt's electric drive system and lithium batteries to be tested for tested their ability achieve 40 miles of gas-free range.However, the company is now putting the battery under 10 years worth of testing in two years to make their 2010 goal. The testing, which involves extreme temperature simulations to expedite processes that would take years longer in the real world, will take place at GM facilities in Warren, Milford, and Mainz-Kastel, Germany.

The Volt is technically a hybrid and contains both an electric and gasoline engine, but is never actually propelled by gasoline. Its electric engine is propelled by lithium ion batteries. The company's next challenge will occur as it works to integrate the battery with a gasoline motor.

Additional Sources:

• GM hustles to ready Chevrolet Volt by 2010
• Latest News On GM's Volt And Hybrid Technology
• Volt battery to get test-drives

Ford Presents: EcoBoost

New Technology Promises Significantly Better Fuel Economy

At the January North American International Auto Show, Ford Motor Company introduced EcoBoost--a new engine technology that it expects to deliver up to 20 percent better fuel economy on half a million Ford, Lincoln and Mercury vehicles annually in North America during the next five years. By using direct injection fuel technology, in which fuel is injected into each cylinder of an engine in small, precise amounts, EcoBoost increases fuel economy and decreases emissions. Coupling direct injection with turbocharging, which compresses the air that goes into an engine to generate more power, allows for smaller engine size and better performance.

The technology was showcased in the Ford Explorer America concept at the 2008 North American International Auto Show in Detroit. It will first appear on the road in the 2009 Lincoln MKS.

More 6-speeds

On April 13, 2008, Ford announced that it would also continue to expand its use of 6-speed transmissions to improve fuel economy. The new Ford F-150 will have a six-speed automatic transmission, as will the soon-to-be-released 2009 Ford Escape and Mercury Mariner. The new transmissions deliver 4 to 6 percent improvement in fuel efficiency on average compared with typical four- and five-speed gearboxes.

Additional Sources:

• Ford introducing more six-speed transmissions
• Ford Media: EcoBoost
• Ford Media: Transmissions
• HybridCars.com

GM & Flex Fuel

Automaker invests in cellulosic ethanol and makes more flex-fuel vehicles

Early this year, at the North American International Auto Show, General Motors Corp. announced a partnership with Coskata Inc, a biofuels research company based in Warrenville, Illinois. Neither company has disclosed the details of GM's investment."We are very excited about what this breakthrough will mean to the viability of biofuels and, more importantly, to our ability to reduce dependence on petroleum," GM Chairman and CEO Rick Wagoner said.

GM hopes to make half of its US production flex-fuel capable by 2012. In an effort to provide the infrastructure for these new vehicles, Coskata plans to use proprietary microorganisms and patented bioreactor designs to produce ethanol for under US$1.00 per gallon by 2011. Initial plans involve using wood chips in the process, but the technology could turn practically any renewable resource into ethanol--including grass and garbage.

GM announces new flex-fuel vehicles, incl. 4-cylinder options

GM has also announced that the Buick Lucerne will join its lineup of 15 FlexFuel models to be released in 2009. The Lucerne will be the first flex-fuel capable Buick passenger car on the market. Other models in the lineup include the four-cylinder Chevrolet HHR, the Hummer H2, and H2 SUT.

Alternative Vehicle Sales Up 15%

According to the latest figures from automotive research firm R.L. Polk, sales of alternative fuel (including flex-fuel and hybrid electric) vehicles in the United States increased by 250,000 from 2006, reaching 1.8 million for 2007. Dave McCurdy, president and CEO Alliance of Automobile Manufacturers, attributes this increase to gas prices, consumer incentives, and the increasing number of models. However, McCurdy--like GM executives--is concerned about the need for more stations alternative fuels.

Additional Sources:

• GM Media
• Coskata, Inc.
• Detroit News: GM bets on $1-a-gallon ethanol maker
• Detroit News: Can GM project produce ethanol at less than $1 a gallon?
• Alternative Fuel Automobiles