Climate 411

Leadership: The auto industry’s missing ingredient

The automotive industry’s capacity for innovation and marketing are on full display this month. Between the Consumer Electronic Show and the North American International Auto Show, every day brings a new story about the rapid development of vehicle technology. The industry possesses the know-how and ability to deliver on the zero-emissions future if it wants to.

A Ford at an electric car charging station in Buffalo, NY. Photo by Fortunate4now

Behind the headlines of engineering feats and product plans, though, is a disturbing fact. The industry is undermining its own innovation. It’s doing this through a campaign to dramatically weaken the central tool we have to move cleaner technology into the fleet – protective greenhouse gas reduction and fuel efficiency standards for new cars and passenger trucks.

Well-designed federal standards foster the deployment of fuel saving solutions. With the certainty of long-term standards in place, manufacturers are able to make the necessary investments to scale these solutions into the fleet. Scaled production further drives down costs, enhancing automaker profitability and consumer payback.

This cycle has been in full view over the past several years as automakers have brought to market ever more efficient vehicles with record sales and strong profitability. An exhaustive technical analysis completed by the U.S. Environmental Protection Agency, National Highway Traffic Safety Administration and California Air Resources Board found that automakers were well positioned to deliver even more fuel efficiency and emissions progress in the years ahead.

With this robust technical underpinning, the U.S. Environmental Protection Agency (EPA) issued a determination to maintain the existing 2022 to 2025 standards. Back in 2012, EPA finalized these standards with the broad support of the automotive industry. But fast forward to today, and the automotive industry is pushing for the Trump Administration to reconsider this determination.

This has set up a year of incongruity where the industry’s position that the standards need to be re-examined are consistently contradicted by its product announcements. In just this past year, automakers have made the following announcements:

  • Daimler AG announced a billion dollar investment to build electric vehicles in the U.S. with production starting in the early 2020’s.
  • BMW reached 100,000 in global electric vehicle sales while promising a dozen models of electric vehicles by 2025.
  • Toyota committed to having at least 10 models of all-electric vehicles by the early 2020’s.
  • Mazda promoted an engine breakthrough that could improve efficiency by up to 30 percent, and is planning to deploy the new engine in 2019.
  • GM laid out a bold vision for a “zero crashes, zero emissions, and zero congestion” future, announced plans for 20 new electric vehicles by 2023 – including two by 2019, and rolled out the acclaimed Chevy Bolt across the U.S.
  • Ford publicized its intention to have an electric vehicle with a range of 300 miles on the market by 2020.

These are not public announcements most automakers make lightly. They make them with high confidence in their ability to meet them.

As amazing as these announcements are, none of them are even necessary to meet the vehicle greenhouse gas standards that EPA finalized in 2012 and affirmed last year. The industry is already poised to meet these standards with broader adoption of more conventional technologies.

The impressive innovation in advanced engine design and electrification – which the industry clearly believes will start to scale over the next few years – will make the standards even more attainable.

Yet, despite the remarkable recent record of innovation and the significant investments made in developing a new generation of clean vehicle solutions, the automotive industry – through its trade associations – has chosen a path to weaken our existing emissions standards and has stayed silent as EPA Administrator Scott Pruitt has threatened California’s own protective vehicle emission standards.

The industry’s actions are contradictory and concerning. Yet, there is still time for automakers to choose a different path – one that looks to the future and seeks to build a new round of protective standards that rewards the industry’s innovation, lowers costs for families and protects human health and the environment.

As the announcements are made over the coming days, we should also be listening to hear if any automakers are willing to match their record on innovation with what the industry most needs now – leadership.

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The accelerating market for zero emission trucks

Tesla Semi prototype. Photo: Smnt, Creative Commons

The recent reveal of the Tesla semi-truck is  garnering  attention for the role zero emission vehicles can play in the future of trucking.

Much of the excitement around zero emission trucks stems from the fact that medium-and-heavy duty trucks – critical tools of our modern economy that operate daily in our neighborhoods and communities — have outsized environmental and health impacts.

Trucks today emit dangerous pollutants, including:

Zero emission vehicles are exciting because of their ability to drive progress on all of these pollutants simultaneously.

A clear indicator of the emergence of zero emission trucks is the plethora of recent product announcements from major manufacturers:

Multiple large manufacturers are investing in electric trucks because they recognize a robust, long-term market for these products. These investments reinforce each other by building resilient supply chains, industry knowledge, and production scale.

Most zero emission truck announcements have been for urban or regional vehicle platforms. Urban areas stand to benefit greatly from the significant reduction in local air pollution offered by zero emission trucks because cities’ density means that many people will get to breathe cleaner air. Buses and delivery vehicles typically have modest daily range demands and predicable charging patterns.

Drayage vehicles should be another high-priority for electrification. These trucks run cargo in and out of marine ports and railyards, frequently traversing dense urban neighborhoods. Often these vehicles are among the oldest and highest polluting trucks on the road. Replacing them with zero emission solutions provides critical local air quality benefits to overburdened communities while also driving meaningful greenhouse gas reductions. In fact, the U.S. Environmental Protection Agency estimates that up to 1,200 pounds of nitrogen oxides  and more than 100 pounds  of particulate matter could be reduced annually by replacing an old diesel drayage truck with a zero emission vehicle. More than 12 tons of carbon dioxide would also be reduced each year.

Zero emission solutions are needed for freight operations too. A recent ICCT analysis found wide-scale adoption of electric tractor-trailers in Europe would reduce climate emissions by 115 million tons in 2050 beyond a scenario that relied solely on maximizing diesel truck efficiency. The analysis illustrates a crucial point – in order to get the largest clean air and climate benefits from freight trucks, we will need both zero emission trucks and significantly more fuel efficient diesel trucks. Each vehicle configuration has an important role to play.

The U.S. Clean Trucks program, extended and strengthened in 2016 by the Obama Administration, is a model that other countries can follow for driving efficiency improvements. It sets long-term, protective standards. The latest round of the standards will cut more than a billion tons of carbon emissions and save truck owners $170 billion dollars. The program enjoys broad support among manufacturers, fleets, shippers and clean air advocates.

The Trump Administration has taken aim at key Clean Truck program provisions that drive improvements in trailer design and close a loophole for super-polluting trucks. Defending the popular and effective program from these pernicious attacks must be an imperative for the freight industry. No company wants its freight hauled by a truck that spews 40 times more pollution or contributes to an additional 1,600 premature deaths annually. Electric semi-trucks will of course be pulling trailers. These trailers will need to be designed with fuel efficiency in mind if electric semi-trucks are to deliver on their full potential.

Zero emission freight trucks need to be operated in a manner that minimizes lifecycle emissions across the entire freight system. Thus, green freight best practices are relevant for zero emission vehicles too. These vehicles will need to complement use of freight rail, which emits more than 80 percent less carbon per ton mile than conventional trucks. They will need to be regularly run with full loads to minimize lifecycle emissions per ton mile. They should be charged primarily by renewable energy. All of these actions, made by fleets, will be influenced by the demands of cargo owners.

It is time for companies and communities to pay attention to these zero emission solutions. These trucks have a clear near-term role in urban delivery. Embracing low and zero emissions drayage solutions will provide immediate and significant human health benefits for communities near ports and railyards. In the years ahead, ZEVs will even have a role in longer-haul operations.

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Electric vehicles enter the here and now

A Ford at an electric car charging station in Buffalo, NY. Photo by Fortunate4now

The high level of confidence that automotive industry leaders have in the future of electric vehicles (EV’s) has been on full display recently.

In just the past few weeks:

This spurt of corporate announcements has been paired with a bevy of statements of international leadership:

These developments are more than just excitement about an emerging solution. They are indicators that the market for EVs is developing faster than anticipated even just last year.

Consider the findings of a new report from Bloomberg New Energy Finance. It found that:

[L]ithium-ion cell costs have already fallen by 73 percent since 2010.

The report updated its future cost projections to reflect further steep cost reductions in the years ahead, with a price per kilowatt-hour in 2025 of $109 and in 2030 of $73.

Cost reductions on this order would result in EVs achieving cost parity with some classes of conventional vehicles by 2025 – and across most vehicle segments by 2029, according to the report. EV sales are expected to really take off once they achieve cost parity with conventional vehicles, as the vehicles are significantly less expensive to fuel and maintain.

The acceleration in the EV market is great news for climate protection too. A recent assessment found that zero-emission vehicles, such as EVs, need to comprise 40 percent of new vehicles sold by 2030 in order for the automotive sector to be on a path to achieve critical mid-century emissions targets. With the momentum in the EV market, we have a critical window to further boost this market by ensuring greater access of electric vehicles and a cleaner electric grid to power them.

Unfortunately, the U.S. has not demonstrated the same appetite for national leadership on EVs as other countries. Even worse, we are going in the wrong direction – with serious implications for our health, climate and economy.

Instead of leading, the Trump Administration is undermining critical clean air and climate protections including the landmark clean car standards for 2022 to 2025. The actions of individual automakers, however, tell a very different story from the “can’t do it” mantra put forth by the Administration.

In their commitments, investments and new product introductions, automotive manufacturers and their suppliers are clearly telling us that low emissions vehicles can play a much bigger role in the near future.

The fact is that automakers can meet the existing 2022 to 2025 federal greenhouse gas standards through deployment of current conventional technology alone. Now, in addition to the robust pathway automakers have through existing technologies, EV adoption rates in the U.S. will be 10 percent in 2025 if the Bloomberg New Energy Finance forecasts hold true. This is further proof that the existing standards are highly achievable. Rather than weaken the standard, the Administration should be pursuing options to further scale EVs over the next decade.

Investing in clear car solutions is sound economic policy. These investments enhance the global competitiveness of the U.S. automotive sector.

This is why the UAW in a letter supporting the existing 2022 to 2025 clean car standards, noted:

UAW members know firsthand that Corporate Average Fuel Economy (CAFE) and greenhouse gas (GHG) standards have spurred investments in new products that employ tens of thousands of our members.

Like other key aspects of the potential of the emerging EV marketplace, the role it can play as an employer has been in the news recently too.

An AM General assembly plant in northern Indiana was acquired by electric vehicle manufacture SF Motors. The company announced that it will make a $30 million investment in the facility and keep on all the 430 employees.

Fittingly, most of the 430 jobs that were saved to manufacture an emerging, clean technology are represented by UAW Local 5 – the oldest continuously operating UAW Local in the country.

Posted in Cars and Pollution, Economics, Energy, Green Jobs, Greenhouse Gas Emissions, Jobs, News, Partners for Change, Policy / Comments are closed

EPA SmartWay and Clean Truck Standards Save U.S. Businesses Millions

(This post originally appeared on EDF+Business)

American businesses benefit tremendously from the robust voluntary and regulatory programs of the U.S. Environmental Protection Agency. These programs are now under threat of massive budget cuts and regulatory rollbacks.  In the coming weeks and months, the experts at EDF+Business will examine what a weakened EPA means for business.

 

It’s safe to say that the EPA isn’t having the best week. Whether it was new administrator Scott Pruitt vowing to slash climate and water protections at CPAC or this week’s reveal that President Trump wants to slash a reported 24 percent of its budget, the EPA has taken a beating recently. However, what may not be as obvious is that slashing EPA’s budget and reducing funding to key programs actually hurts businesses that have greatly benefitted from EPA programs.

A key example of how the EPA bolsters business is freight. In the freight world, the EPA has done a lot for companies’ bottom lines while protecting human health and that of the planet. Companies seeking to reduce freight costs and achieve sustainability goals across supply chains receive immense value from the EPA.  Two key programs that provide this value are the U.S. EPA SmartWay program and the Heavy-Duty Truck Greenhouse Gas Program.

A compelling value proposition for business

SmartWay was created in 2004 as a key part of the Bush Administration’s approach to addressing clean energy and climate change. The program has grown from fifteen companies at its start to nearly 4,000 companies today. The program attracts strong private sector participation because it offers a clear and compelling value proposition: freight shippers gain access to information that enables them to differentiate between freight carriers on emissions performance.

This saves shippers money and cuts carbon emissions. Freight carriers participate in the program to gain access to large shippers, such as Apple, Colgate-Palmolive and Target.

The EPA SmartWay program is not only a popular program that is delivering billions of dollars of annual savings to the U.S. economy, it is also a core strategy for companies to reduce their freight emissions. The agency has calculated that since 2004, SmartWay partners have saved:

  • 8 million metric tons of carbon emissions
  • Over 7 billion gallons of fuel
  • $24.9 billion in fuel costs

To put it in perspective, the reduction of 72.8 million tons of emissions is roughly the equivalent to taking 15 million cars off the road annually. The $25 billion in aggregate savings from this one program is more than three times the annual budget of the entire EPA.

Given the strong value proposition of the program, it is no surprise that many companies with existing science-based targets on climate emission reductions participate in EPA SmartWay, including: Coca-Cola Enterprises, Dell, Diageo, General Mills, Hewlett Packard Enterprise, Ingersoll-Rand, Kellogg Company, Nestlé, PepsiCo, Procter & Gamble Company and Walmart.

Clean fuel driving a healthy U.S. economy

Another key program that is saving companies billions is the Heavy-Duty Truck Greenhouse Gas Program. This program supports long-term cost savings and emission reductions through clear, protective emission standards with significant lead time.

The first generation of this program, running from 2014 to 2017, was finalized in August 2011 and will cut oil consumption by more than 20 billion gallons, save a truck’s owner up to $73,000, deliver more than $50 billion in net benefits for the U.S. economy, and cut carbon dioxide pollution by 270 million metric tons.

The program was created with the broad support of the trucking industry and many other key stakeholders. Among the diverse groups that supported the standards were the American Trucking Association, Engine Manufacturers Association, Truck Manufacturers Association, and the United Auto Workers. The industry has embraced the new and improved trucks too.

The success of the first generation effort spurred the agency to launch a second phase that was finalized in August 2016. This effort stands to be a major success as well. The program is estimated to save:

  • 1.1 billion metric tons of carbon pollution
  • 550,000 tons of nitrous oxides and 32,000 tons of particulate matter (aka: harmful air pollutants)
  • 2 billion barrels of oil
  • $170 billion in fuel costs

This latest phase is also big hit with leading companies. More than 300 companies called for strong final standards during the rulemaking process, including PepsiCo and Walmart (two of the largest trucking fleets in the U.S.), mid-size trucking companies RFX Global and Dillon Transport, and large customers of trucking services General Mills, Campbell’s Soup, and IKEA. Innovative manufacturers, equipment manufacturers, and freight shippers have also called for strong standards.

The corporate support for these standards was so impressive that the New York Times issued an editorial illustrating a rare agreement on climate rules.

Every company that sells goods in the market benefits immensely from these two programs and many others from the U.S. EPA. Programs like EPA SmartWay and the Heavy Truck Greenhouse Gas Standards are saving companies and consumers billions of dollars annually, and are integral to corporate efforts to cut carbon emissions.

Looking ahead

In his remarks to EPA employees on his first day on the job, Pruitt acknowledged that “we as an agency and we as a nation can be both pro-energy and jobs and pro-environment…we don’t have to choose”. My hope is that this is a signal of open mindedness to a path forward would allow further improvements to the environment and the economy rather than roll-backs on vital programs and protections.

Perpetuating the belief that the EPA and business are at odds will not only hurt the environment, but would endanger American prosperity.

Posted in Cars and Pollution, Clean Air Act, Greenhouse Gas Emissions, Policy, Setting the Facts Straight / Comments are closed

Investments to Meet Emissions Goals are Driving Innovation and Growth in U.S. Auto Industry

15261010832_b13a8d395c_kThe past couple of weeks have seen a whirlwind of announcements related to the U.S. auto industry.

The century-old industry has been hailed as the fastest U.S. job creator – expanding payroll by “nearly 35 percent” in recent years. Manufacturers have introduced dozens of new, fuel-efficient models. Technology companies and automotive manufacturers are collaborating more than ever to add features, and to get the world ready for self-driving vehicles.

The need for climate action has been a critical driving factor in each of these trends.

The Clean Car Standards have been focusing auto industry investment and innovations since they were finalized in 2010. Over that time, the automobile industry has made a dramatic return to profitability and added jobs – all while exceeding the Clean Car Standards. The industry has also started to bring to market a new generation of fuel-saving solutions.

Confirmation of these trends could be found at the recent Consumer Electronics Show and the Detroit Auto Show, where manufacturers paraded out their latest developments.

  • Ford stated that it expects sales of electric vehicles will overtake sales of gas-fueled vehicles within 15 years. Ford showcased its ability to improve conventional vehicles by unveiling the 2018 model Ford F150 – the best selling vehicle in the U.S. – with options for a more fuel efficient 3.3 liter six cylinder engine and automatic stop-start technology. It also announced new hybrid versions of the F-150 and Mustang by 2020. The company promised a new fully electric SUV vehicle with 300-mile range by 2020.
  • General Motors (GM) celebrated having the fully-electric, 238-mile range Chevy Bolt awarded the North American Car of the Year or Truck of the Year. The Chevy Bolt was previously awarded Motor Trend Car of the Year. The Bolt, which came to market last month, is also at the center of GM’s work on self-driving vehicle technology
  • Nissan announced a new generation of its LEAF electric vehicle, with “autonomous drive functionality" for highways.
  • Honda publicized its plan to introduce a new, U.S.-made hybrid vehicle in 2018 and roll out its Clarity Electric and the Clarity Plug-In Hybrid vehicles.
  • Toyota appointed its president (grandson of the company’s founder) to lead their newly formed electric car division, in an effort to “speed up development of electric cars.” 
  • Volkswagen – unveiled a prototype electric van capable of a 270-mile range and with room for eight-passengers. The company has committed to have at least 25 percent of its global sales be electric vehicles by 2025.
  • Samsung introduced a new lithium-ion battery cell for electric vehicles. The battery promises over 350 miles of range and a 20-minute fast charge. The battery is slated for production in 2021.
  • Tesla declared that its gigafactory for battery production was open for business. The Reno, Nevada facility already employees almost 3,000 workers, and is ultimately expected to employ 6,500 in full-time positions.
  • Mercedes announced in Paris last year that electric cars would account for 25 percent of the company’s deliveries in 2025, backed by plans to invest $1.1 billion in battery technology.

As these developments show, automakers and their suppliers are investing and bringing to market clean vehicle solutions beyond what even the Clean Car Standards require.

These companies are making these investments because there is a robust domestic market for clean cars. Electric vehicle sales in the U.S., for example, were up more than 50 percent in the second half of 2016 (compared to 2015).

Companies are also making these investments to stay competitive in a global race that will define the next chapter of mobility. GM, for example, had a third of its global sales in China in 2016. China is the largest market worldwide for electric vehicles and plug-in hybrid electric vehicles, and if U.S. automakers want to be competitive there they will need to stay on the leading edge of the technology curve. Autotomy and electrification will be the hallmarks of this new, global chapter.

By driving more investment in future offerings, the Clean Car Standards help position U.S. manufacturers to win this race at home and abroad.

This perspective was recently voiced by the United Auto Workers, which noted:

“Our competitors around the globe are working to strengthen environmental standards and it would be counterproductive to enact policies that provide disincentives for investing in advanced technologies and improving efficiency. History has taught us that a diverse fleet is essential for strong export sales and keeping jobs in the United States. Efficiency and emission standards can and must continue to be a win-win for the environment, working families, domestic manufacturing and the overall economy.”

We couldn’t agree more.

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Open Road Ahead for Clean Trucks

rp_iStock_000002312011Medium2-1024x768.jpgOur nation is making great progress in reducing the environmental impact of trucking.

This is tremendous news, of course, as trucking – the main method of transporting the goods and services we desire – is critical to the fabric of our society.

Consider these facts:

We’re making major progress because of a team effort from truck and equipment manufacturers, fleets, policymakers, and clean air and human health advocates. With protective, long-term emission standards in place, manufacturers are investing in developing cleaner solutions and bringing them to market. Truck fleets are embracing new trucks because of lower operating costs and improved performance.

(For a more detailed picture of the widespread support for cleaner trucks, see EDF’s list of quotes supporting recent national Clean Truck standards.)

We must continue this team effort to make further necessary improvements in the years ahead.

Despite our recent progress, diesel trucks continue to be a leading source of NOx emissions, which is why a number of leading air quality agencies across the nation, health and medical organizations, and more than  30 members of Congress are calling for more protective NOx emission standards.

Trucks are also a large and growing source of greenhouse gas emissions. Thankfully, the new fuel efficiency and greenhouse gas standards mentioned above – which were released this past August and just published in the Federal Register today – will cut more than a billion tons of emissions.

Trucking fleets are embracing cleaner trucks. UPS, for example, is expanding its fleet of hybrid delivery trucks. PepsiCo, Walmart, Kane and others have applauded strong fuel standards for trucks.

Manufacturers are developing solutions to further improve the environmental footprint of trucking.

In the past few weeks alone:

  • Cummins unveiled a 2017 engine that cuts NOx emissions 90 percent  from the current emission standard.
  • Volvo Trucks North American showcased its entry to the DOE SuperTruck program, which is  a concept truck capable of surpassing 2010 efficiency levels by 70 percent and exceeding 12 miles per gallon.
  • Navistar also revealed its SuperTruck, the CatalIST, which hit a remarkable 13 mpg.

The progress we’ve made to date does more than just improve conditions within the U.S. Our strong standards push U.S. manufacturers to develop solutions that will resonate with international markets. For example, the European Union, Brazil, India, Mexico, and South Korea all are exploring new fuel efficiency and greenhouse standards for big trucks. U.S. manufacturers will be well positioned to compete in markets that put a premium on fuel efficiency.

In the coming years, we will need to continue to advance protective emission standards to protect the health of our communities and safeguard our climate. When the time comes, we will be building upon an impressive record of progress and cooperation.

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