Gas 2.0

Washington’s hugely popular cash for clunkers program has boosted all auto sales 16 percent from June to July as desperate and grateful Americans unloaded the gas guzzling behemoths they had been lured into buying with huge SUV tax credits by the Bush administration. (Small business owners like doctors, lawyers, and real estate agents had been able to use fossil friendly incentives to deduct more than $100,000 of the cost of an SUV from their taxes.) Now that they have the chance, Americans are unloading those gas guzzlers. Read the rest of this entry »

You can’t turn on the TV and avoid the ads for the dealers promoting the Cash for Clunkers program. Experts predicted that the money would last at least two to three weeks, but alas, it is not so. The LA Times is reporting that in less than one week, the $1 billion dollars for the program is already gone and the government is scrambling to find more money to keep the program going. Worst case, I suppose they can just write “IOUs” like the state of California is doing and according to Governor Schwarzenegger, may be bailing out the federal government some day.

“We are working tonight to asses the situation facing what is obviously an incredibly popular program,” the White House told the LA Times. “Auto dealers and consumers should have confidence that all valid CARS transactions that have taken place to date will be honored.”

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US Department of Energy secretary Steven Chu and US Department of Agriculture Secretary Tom Vilsack have announced that the two agencies will be providing $6.3 million dollars for 7 projects at research institutions throughout the US to improve the use of plant feedstocks in biofuel production.

Although biofuels have fallen out of favor in the public eye recently, the federal government — led by Secretary Chu — is still forging ahead with providing money to research next generation biofuels.

“Part of the solution to the energy problem will be home-grown energy crops,” said secretary Chu in a statement. “These projects will help us unlock the true potential of advanced biofuels, decrease our dependence on foreign oil, and create new jobs and a thriving biofuels industry in America.”

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Editor’s Note: This is Berkeley Mayor Tom Bates’ first post for Gas 2.0. Mayor Bates is the latest to join The Great Electric Vehicle Race.

Last month, our city council adopted Berkeley’s bold Climate Action Plan.  This plan calls for systemic action, by all Berkeley residents and agencies to reduce our city’s greenhouse gas (GHG) consumption by 80% below 2000 levels by the year 2050, and the investment in electric vehicle infrastructure will be a key method for achieving these larger goals.

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Senators Robert Menendez (D-NJ) and Orrin Hatch (R-Utah) have sponsored the NAT GAS Act. This bill is aimed at giving natural gas the push it needs to become part of the cure for America’s oil addiction. Senator Reid (D-Nevada) is also an original co-sponsor.

“Each day, our nation consumes about 21 million barrels of oil- more than 25 percent of the world’s oil supply,” Reid said. And most of that oil comes from foreign soil. “With only 3 percent of the world’s oil reserves, we cannot produce our way to a safe and secure energy future,” Reid continued.

The new legislation would promote the use of natural gas over traditional oil by using tax credits. This legislation would, in effect, be an extension of the CLEAR Act - encouraging the growth of natural-gas infrastructures to go along with the current boom in hybrid-electric vehicles.

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Just this morning, the Senate Appropriations Subcommittee on Energy and Water approved $190 million for the hydrogen and fuel cell program office which is part of the U.S. Department of Energy (DOE). This action, in effect, restores the program to current year funding levels. Earlier this year, the administration demonstrated its lack of support for the future of hydrogen by pulling programs for hydrogen and fuel cell development. In addition, another $54 million was approved for the SECA program. The full appropriations committee meets tomorrow. This funding is for 2010.

“Congress recognized and embraced the role hydrogen fuels cells and their fuels play in the portfolio of energy technologies for the 21st century,” said Bob Rose, Executive Director for the U.S. Fuel Cell Council. “We hope that the Secretary of Energy (Steven Chu) and his staff embrace this as a spirit of goodwill.”

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Late Friday, the House passed the first legislation solely dedicated to reversing global warming. Now the fate of the Climate Change Bill is in the hands of the Senate, and political pundits are predicting the bill won’t pass. This exact bill might not pass but sooner than later one will and until then they will have several things in common. A climate bill will change how we produce and use electricity. It will change how you travel from point A to point B. It will change how every business operates and how every American lives. Our lives will never be the same. Dramatic? Yes. True. Yes.

The passage of this bill will change your life in three ways:

1. It would affect what type of car you can drive - smaller.
2. It would affect how much you pay for energy - more.
3. It would affect what type of job you have - green job.

Energy affects every facet of our lives. When energy prices go up, food prices go up, clothing prices go up..the price for everything we buy gets more expensive. Why? Because our society is intricately intertwined with energy, and energy is intertwined with our economy.

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Steven Chu this morning finally puts the nail in the coffin of the congressional No We Can’t contingent’s stance.  For the last 8 years they’ve been saying that “government can’t pick winners and losers”, by which they simply meant keep all the current lavish oil subsidies in place and don’t make any changes in energy policy that might develop a competitor. Read the rest of this entry »

The Senate passed the Cash for Clunkers Program today, which gives consumers with cars that get less than 18 miles per gallon the ability to turn them in for a $3,500 or $4,500 cash voucher. The bill was nearly defeated by Republicans, but Democratic support saved the day in part due to Obama’s lobbying of the program. The President still needs to sign the bill into law.

Although many people believe that the program is designed to reduce global warming emissions through the eradication of gas guzzling cars, its true purpose is to help out struggling automakers and car dealers with new car sales. A person who receives a credit as part of the program cannot buy a used car with the monies. Car sales in 2009 are predicted to be nearly half of what they were in 2008.

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Okay people. I’ve had enough of these willy-nilly government programs and incentives in the transportation market without being given an actual national plan of action. This habit our country has of “let’s throw out everything and see what sticks” is not in any way in our best interest. All of these programs cost us taxpayers money — something that is scarce for many of us today.

I’m tired of waiting around for our legislators to create a long-term sustainable transportation platform so I went ahead and did it myself. Someone had to do it. Why not me?

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For those of you driving clunkers, you may soon be able to turn that eyesore into cash. The House and Senate have agreed to designate $1 billion for the Cash for Clunkers program to be funded out of the significantly larger $106 billion wartime spending bill. Not yet law (Congress is expected to pass this bill this week) the bill will pay people for their “clunkers”. The goal is twofold: to get fuel inefficient cars off the road and to encourage consumers to buy new, fuel efficient vehicles.

A consumer who has a qualifying car will receive either a $3,500 dollar voucher or a $4,500 voucher. Your voucher credit depends on the improved gas mileage as compared to your current car.

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Listening to NPR’s Morning Edition yesterday, there was a segment in which some environmentalists lamented Obama’s new fuel economy standards as being a small drop in the bucket for what needs to be done to solve our climate problems.

While this is true, two comments made by Harvard University Professor, Robert Stavins, during that segment struck me as weird and based in something less than reality — a kind of academic fantasy if you will. At the time, I was driving and the comments slid out of my mind. But last night an old friend from college brought it up again in a Facebook thread and it got me thinking more in depth about it.

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President Barack Obama has his own idea of how to fix the auto industry, and part of that plan is to increase the federal fleet fuel consumption average to 35.5 MPG by 2016. The plan calls for incremental increases of 5% per year from 2012 to 2016, and the standard is nationalized, putting an end to the costly legal battle that California and several other states have been waging to use their own stricter MPG requirements. The plan will supposedly reduce domestic oil consumption by some 1.8 billion barrels, and for the first time the EPA will be required to measure the contaminants coming from a cars exhaust pipe. Read the rest of this entry »

Yesterday was a big day for the biofuels industry. President Obama issued a presidential directive to the USDA to expand access for biofuels that includes $800 million to fuel biofuels research. The purpose of the directive, in part, is to aggressively accelerate the investment and production of biofuels. What the directive does not do, is set dollars aside to help improve the infrastructure for higher ethanol blends including E85 although it encourages production of more flex-fuel vehicles.

This announcement appears to be serious, at least as serious as a government proclamation can really be– they created another committee to oversee that the presidential directive. The USDA, EPA and DOE will form a Biofuels Interagency Working Group with a mission to increase energy independence in part through the development of the nation’s first comprehensive biofuels market development program.

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Corn ethanol was given a reprieve today when the Environmental Protection Agency (EPA) announced its proposed rule for implementation of the Renewable Fuels Standard or RFS2 that includes calculations of all greenhouse gas emissions (GHG) for all fuels. The RFS was signed into law as part of the Energy and Independence Act of 2007 which limits the maximum amount of corn ethanol to 15 billion gallons of the required 36 billion gallons by 2022.

There was palpable concern among corn ethanol proponents leading up to the ruling due to the controversy surrounding Indirect Land Use as well as the passing of the Low Carbon Fuel Standard (LCFS) last week by the California Air Resources Board (CARB), which was not favorable for corn ethanol.

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