National Academies Report Released: Transitions to Alternative Vehicles and Fuels

Recently, the National Academies Press (NAP) released a report produced by the Committee on Transitions to Alternative Vehicles and Fuels; Board on Energy and Environmental Systems; Division on Engineering and Physical Sciences; and the National Research Council titled, Transitions to Alternative Vehicles and Fuels (2013). The 170-page report (available free with a one-time registration) discusses how,

[f]or a century, almost all light-duty vehicles (LDVs) have been powered by internal combustion engines (ICEs) operating on petroleum fuels. Energy security concerns over petroleum imports and the effect of greenhouse-gas (GHG) emissions on global climate are driving interest in alternatives. This report assesses the potential for reducing petroleum consumption and GHG emissions by 80% across the U.S. LDV fleet by 2050, relative to 2005. It examines the current capability and estimated future performance and costs for each vehicle type and non-petroleum-based fuel technology as options that could significantly contribute to these goals. By analyzing scenarios that combine various fuel and vehicle pathways, the report also identifies barriers to implementation of these technologies and suggests policies to achieve the desired reductions. Several scenarios are promising, but strong, effective, and sustained but adaptive policies such as research and development (R&D), subsidies, energy taxes, or regulations will be necessary to overcome barriers such as cost and consumer choice.

CRS Report Released: Alternative Fuel and Advanced Vehicle Technology Incentives: A Summary of Federal Programs

The Congressional Research Service (CRS), the public policy research arm of Congress, recently issued the report Alternative Fuel and Advanced Vehicle Technology Incentives: A Summary of Federal Programs (Jan. 10, 2013). The 42-page report authored by Lynn J. Cunningham, Beth A. Roberts, Bill Canis, and Brent D. Yacobucci discusses the following:

Summary

A wide array of federal incentives supports the development and deployment of alternatives to conventional fuels and engines in transportation. These incentives include tax deductions and credits for vehicle purchases and the installation of refueling systems, federal grants for conversion of older vehicles to newer technologies, mandates for the use of biofuels, and incentives for manufacturers to produce alternative fuel vehicles. The current array of incentives for alternative fuels and related technologies does not reflect a single, comprehensive strategy, but rather an aggregative approach to a range of discreet public policy issues, including goals of reducing petroleum consumption and import dependence, improving environmental quality, expanding domestic manufacturing, and promoting agriculture and rural development.

Current federal programs are administered by five key agencies: Department of the Treasury, Department of Energy, Department of Transportation, Environmental Protection Agency, and the U.S. Department of Agriculture. The incentives and programs described in this report are organized by the responsible agency.

• Treasury (through the Internal Revenue Service, IRS) administers tax credits and deductions for alternative fuel and advanced technology vehicle purchases, expansion of alternative fuel refueling infrastructure, and incentives for the production and/or distribution of alternative fuels. Many of these incentives have expired in recent years although some were extended by the American Taxpayer Relief Act of 2012 (P.L. 112-240).
• DOE (mainly through the Office of Energy Efficiency and Renewable Energy, EERE) administers research and development (R&D) programs for advanced fuels and transportation technology, grant programs to deploy alternative fuels and vehicles, and a loan program to promote domestic manufacturing of high efficiency vehicles.
• DOT (mainly through the Federal Highway Administration, FHWA, and Federal Transit Administration, FTA) administers grant programs to deploy “clean fuel” buses and other alternative fuel vehicles. DOT (through the National Highway Traffic Safety Administration, NHTSA) also administers federal Corporate Average Fuel Economy (CAFE) standards, which include incentives for production of alternative fuel vehicles.
• EPA (mainly through the Office of Transportation and Air Quality, OTAQ) administers the Renewable Fuel Standard, which mandates the use of biofuels in transportation. EPA also administers grant programs to replace older diesel engines with newer technology.
• USDA (mainly through the Rural Business-Cooperative Service, RBS) administers grant, loan, and loan guarantee programs to expand agricultural production of biofuel feedstocks, conduct R&D on biofuels and bioenergy, and establish and expand facilities to produce biofuels, bioenergy, and bioproducts.

Federal Energy and Fleet Management: Plug-in Vehicles Offer Potential Benefits, but High Costs and Limited Information Could Hinder Integration...

This Government Accountability Office Report dated June 2009 (GAO-09-493) finds that Plug-ins will be expensive relative to other vehicles until battery costs come down and challenges such as achieving economies of scale are met. These high upfront costs will prevent agencies from including plug-ins in large numbers in their fleets without additional funding. Furthermore, agencies will also be hindered from incorporating plug-ins because of uncertainties regarding their performance, the maintenance and reliability associated with the vehicles’ batteries, and the resale value of the vehicles. Exploring the option of leasing the vehicles directly from manufacturers could help mitigate these risks and allow agencies to experiment with how well the vehicles perform within their fleet.

Biofuel Policies and Programs

This Report by the Minnesota Office of the Legislative Auditor finds that traditional biofuels like corn-based ethanol and soy-based biodiesel serve a useful purpose. However, land constraints and economic considerations limit the extent to which traditional biofuels can replace petroleum-based fuels. Cellulosic ethanol appears to have significant environmental and energy advantages over corn-based ethanol, but questions remain about its economic viability and its potential land use and environmental impacts.

Alternatives to Traditional Transportation Fuels 2007 (Part II - User and Fuel Data)

This report (Part II) contains data on the use of alternative fueled vehicles (AFVs) and the amount of fuel they consume. AFVs are on-road U.S. vehicles that operate on fuels other than motor gasoline or diesel. Information on the supply of AFVs is contained in Part I.

Alternatives to Traditional Transportation Fuels 2007 (Part I - Supplier Data)

These tables represent the number of onroad alternative fuel vehicles (AFVs) and hybrid vehicles made available by both the original equipment manufacturers and aftermarket vehicle conversion facilities for 2007 and projected for 2008. These data include gasoline-electric and diesel-electric hybrids which are published separately from electric fuel type categories because they fall outside the Energy Policy Act of 1992 (EPACT92) definition of an AFV. The Department of Energy (DOE), which has EPACT92 implementation authority, ruled that gasoline- and diesel-electric hybrids are not “alternative fuel vehicles.”

Current and Potential Green Jobs in the U.S. Economies

This Report prepared for the The United States Conference of Mayors and the Mayors Climate Protection Center dated October 2008 provides an overview of potential jobs in the alternative energy and fuels sectors by metropolitan area.

The Report concludes: "The vast majority of Green Jobs are not location dependent, so future Green Jobs will be located in cities and metropolitan areas that are currently the most attractive for investment, or in areas that actively increase their attractiveness relative to competing areas. The good news is that traditional industries continue to be replaced by new opportunities, and we have only just begun to tap into many of them.

Department of Defense Energy Strategy: Teaching an Old Dog New Tricks

This August 2007 Report from the Brookings Institute by Gregory J. Lengyel, Colonel, USAF details military reliance upon foreign sources of oil and suggests strategies using increased fuel efficiency, nuclear energy, alternative sources of energy including synthetic fuels and renewable energy in the form of solar and wind.