Climate 411

Growing Jobs, One Auto Supplier at a Time

Last week, the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Transportation (DOT) jointly announced new clean car standards that will benefit America’s economy and our environment.

The standards mean that by 2025 new cars on U.S. roads will average an unprecedented 54.5 miles per gallon.

Those same clean cars will also reduce the levels of dangerous climate pollution from auto emissions.  

Businesses in the auto supply chain are applauding.  According to Fred Keller, Chairman and CEO of Cascade Engineering

The new fuel economy requirements are an example of good regulation developed in the right way. By working with both industry and environmental interests, regulators were able to come up with standards that provide the right incentives and get the right results without putting an undue burden on industry. What’s more, the resulting incentives are positive, as they will encourage manufacturers to develop lighter-weight vehicles and reduce demand for fossil fuels. I recognize it is not always easy to develop regulation in this way, but this should serve as a model for how to do it effectively in the future.

Cascade Engineering has a growing automotive solutions group that focuses on acoustic insulators, chassis & powertrain components, and interior/exterior trim.  

Other companies are praising the new standards as well.

Nam Thai-Tang, Co-Founder and Executive Vice President of ALTe, said this:

ALTe applauds any effort to drive towards greater fuel efficiency in the transportation industry. We are encouraged by the new standards and expect that they will help companies like ours that are developing advance hybrid powertrain technologies for America’s vehicles. 

ALTe manufactures electric vehicle powertrains which are used to increase fuel efficiency and lower emissions.

The new clean car standards follow closely after the first-ever national standards for passenger vehicles, which applied to vehicles in model years 2012 to 2016.

The Administration says that, in total, its national program to improve fuel economy and reduce greenhouse gas emissions will save consumers more than $1.7 trillion at the gas pump and reduce U.S. oil consumption by 12 billion barrels.

A joint ACEEE-BlueGreen Alliance report found the standards also would create more than a half million jobs by 2030, including 50,000 jobs in auto manufacturing. (These projections are not surprising. Since the restructuring, auto companies have added 250,000 jobs.)

Fuel economy standards benefit American auto companies and the myriad of suppliers because they create certainty, establish the U.S. as leader in fuel efficiency, and provide incentives for innovation.

Unlike many other industries, the auto sector and its many suppliers can plan for the future knowing the regulatory playing field until 2025.

The new clean car standards stand as among the most progressive in the world, driving the U.S. to a leadership position in fuel-efficient vehicles and technologies–  and toward the opportunity to export everything from parts to final assembled vehicles. 

These rules reward innovation in every facet of auto technologies — from changes to traditional combustion engines such as new materials, electronics, engine re-design, and recirculation of exhaust gas to development of a new generation of electric vehicles, hybrid and fuel cell vehicles. 

Seifi Ghasemi is chairman and chief executive of Rockwood Holdings, the world’s largest producer of lithium and lithium compounds.

He responded to the announcement by noting that:

Rockwood believes that the US can be the world leader in a game-changing technological leap forward by making electric vehicles the cars of the future. 

Mr. Ghasemi further described how Rockwood is already expanding and adding jobs:

For the auto industry and battery makers to adopt this technology, they must have a secure and reliable supply of lithium compounds for advanced electric vehicles. To meet the need for these compounds, Rockwood recently invested more than $75 million in two expansion projects that expands the output of our Silver Peak, Nevada, and Kings Mountain, North Carolina, production facilities.  We expanded our Silver Peak site, which is the only US source of lithium raw materials, and we built and recently opened a state of the art battery grade lithium hydroxide manufacturing plant in Kings Mountain.  In addition, we completed a new Global Technical Center at Kings Mountain that will bring together engineers and scientists to perfect and commercialize advanced battery materials.  These investments provide several economic benefits, including the addition of more than 100 new manufacturing and research and development jobs.  These expansions also reinforce our long-term competitiveness in a vital, growing technology.

As the auto sector continues to demonstrate, strong environmental standards can work in concert with a vision for growth in industries across America.

Also posted in Clean Air Act, Economics, Energy, Greenhouse Gas Emissions, Jobs, News, Policy, What Others are Saying / Read 1 Response

One Step Closer to Breathing Easier: We Reach a Key Deadline for Reducing Soot

Many of us have just returned from our last summer road trips over the Labor Day weekend, and now we’re settling back into work. So here’s some good news for the unofficial start of fall:

We can all breathe a little easier knowing that the U.S. Environmental Protection Agency (EPA) is one step closer to finalizing new limits on soot.

The comment period on EPA’s proposal to strengthen the national limits on soot closed last Friday.

Soot — also known as particulate matter — is a deadly pollutant that contributes to asthma attacks, heart attacks, and a host of other respiratory problems.

The more we have learned about soot, the more we have become aware that our national standards are not strong enough to protect our health. That’s why EPA has proposed updated standards – and the deadline for comments means we’re moving toward the moment when final, tougher standards go into effect.

So if, like roughly 30 million other Americans, you drove somewhere last weekend, you can take some comfort in knowing that the big rig in front of you emitting black plumes of smoke may eventually be a thing of the past.

Soot is emitted largely by power plants and diesel vehicles and equipment (including some of those older big rigs). But many highly cost-effective, American-made technologies exist for power plants and diesel engines that will help states meet new, better soot standards.

We’ve already made some progress. The brand-new diesel trucks that are rolling off the assembly lines today are meeting rigorous modern emission standards for soot, nitrogen oxides and other pollutants. They’ll help states meet more protective air quality protections as the newly manufactured diesel trucks replace those on the road today.

Plus, last year the Administration enacted new fuel efficiency and greenhouse gas emissions standards for heavy-duty vehicles like semis, buses and garbage trucks. Those new fuel efficiency standards will save truck owners money — which is why they have garnered broad industry support.

But we still have more to do, and the proposed new soot standards will help us finish the job.

A broad coalition of health, environmental, moms, and environmental justice groups support the proposed new standards. They wrote a letter urging EPA to strengthen standards for soot, based on the latest science:

Strengthening the particulate matter health standards as demanded by science could prevent thousands of premature deaths, heart attacks, and visits to the hospital and emergency room each year.

Hundreds of physicians and health professionals also sent a letter in support of stronger standards to EPA on Friday.

These proposed new soot standards are more important than ever in light of a recent decision by a U.S. Court of Appeals panel to send the Cross-State Air Pollution Rule back to EPA.

The Cross-State Rule would have helped lower soot and ozone pollution from power plants significantly compared to the policy currently in place. New, strong soot standards are vital to providing lasting clean air protections.

New, strong soot standards will also get states moving to reduce this deadly pollutant. That means we all have a stake in strong new soot standards — so that all Americans can breathe easier.

Also posted in Clean Air Act, Greenhouse Gas Emissions, Health, News, Policy, What Others are Saying / Comments are closed

Finally, A Good Record High! Car Fuel Efficiency in 2012

The summer driving season is in full swing and I’m sure many drivers are still recovering from the gas-price whiplash we’ve faced this year. 

The good news is that the U.S. has been making some really smart choices and significant strides recently to improve the fuel economy of cars and trucks. That helps Americans save money at the pump, reduces our country’s dependence on oil, and reduces harmful carbon pollution.

I retired my own clunker early this year after some disturbing sounds started emanating from its engine. I went shopping for a new car, and I was delighted to see that the new cars being sold are much more fuel efficient than when I bought my clunker.

I noticed that even fuel economy levels between model years of the same car are noticeably improved. That demonstrates that we are making continual, yearly improvement in fuel efficiency now.

So I wasn’t surprised to see this new analysis from Baum & Associates. It finds that the first half of 2012 set a record high in fuel efficiency for new vehicles.

Here are a couple of key findings from the analysis on the first half of 2012:

  • The average fuel efficiency of new cars sold was 23.8 miles per gallon (mpg)
  • Since 2011 fuel, economy has improved by 1.1 mpg
  • That 1.1 mpg improvement happened while sales increased at a larger rate than the economy

The Baum & Associates report also shows that consumers also had more choices across all types of vehicles to get higher fuel economy in the first half of 2012. It looked at “popular nameplates” – cars that had sales of at least 30,000 annually. Take a look at this chart from the Baum and Associates report:

(Chart: Summer 2012 Fuel Economy Analysis, July 2012, Baum & Associates) 

This progress has been driven largely by new fuel economy standards for cars enacted by the Department of Transportation (DOT) and the Environmental Protection Agency (EPA) in 2010.

Industry supported DOT and EPA’s efforts and got straight to work improving fuel economy to meet the model year 2012 to 2016 standards.  Those standards require a fleet-wide average fuel economy of 35.5 mpg by 2016.

Over the lifetime of these vehicles, these standards will:

  • Save American families $3,000 in fuel costs (model year 2016 vehicle)
  • Reduce oil consumption by 1.8 billion barrels
  • Reduce carbon pollution by 960 million metric tons

Even more exciting, new standards to improve average fleet-wide fuel efficiency of our cars to a whopping 54.5 mpg by 2025 are expected to be finalized this summer.

By 2025, the combined existing and anticipated new standards are estimated to:

  • Save American families more than $8,000 in fuel costs over the lifetime of a new vehicle
  • Reduce oil consumption by 2.2 million barrels a day
  • Reduce carbon pollution by more than 6 billion metric tons

American consumers are supporting better fuel efficiency in cars, mostly because of the substantial long-term savings on gas.

The Consumer Federation of America (CFA) just did a new poll. They found that 88 percent of those surveyed said the U.S. should reduce oil consumption, and 86 percent said cutting consumer costs is an important reason why.

Dr. Mark Cooper of the CFA said:

Record spending on gasoline for American families, combined with consumer demand for better mileage and a broad political consensus over higher national standards, are driving faster improvements in fuel economy than at any time since the oil price shocks of the 1970s.

He added:

The 54.5 mpg by 2025 standard will be one of the most important consumer protection measures to be adopted in decades.

Of course, there are other vital reasons to increase fuel efficiency standards for our cars, besides the fact that we’ll save lots of money.

By 2025, oil savings from the combined fuel economy standards (for cars and trucks model years 2012 to 2025) will be substantially more than the amount of oil we imported each day last year from Iraq, Kuwait and Saudi Arabia combined.

Our cars account for about 40 percent of all U.S. oil consumption. They also account for nearly 20 percent of all U.S. carbon pollution. 

Although there is still much work to be done to reduce our dependence on oil and our dangerous carbon pollution emissions, the success so far of the car standards provides a testament to the innovative spirit of American industry. It’s proof that we can achieve our emission goals while fostering economic growth.

Also posted in Clean Air Act, Economics, Energy, Greenhouse Gas Emissions, News, Policy / Comments are closed

Day Two of Landmark Clean Air Cases: Courtroom Arguments Wrap Up

The U.S. Court of Appeals in Washington D.C. heard its second and final day of oral arguments, today, in a landmark group of cases about EPA’s critical climate protections.

Today’s arguments focused on EPA’s actions to require cost-effective greenhouse gas emission reductions from the largest sources, like power plants — while shielding smaller sources.

I was at the courthouse again today. Here’s a look at some of the highlights:

The judges began by examining EPA’s decision to initially focus climate protections on the largest sources of pollution. The judges closely questioned the Solicitor General of the State of Texas about how this focus on large sources harmed the state.

In a pointed exchange, Chief Judge Sentelle noted that the remedy Texas seeks — invalidation of the large-source thresholds — would seem to cause Texas injury where, under EPA’s current program, none exists. 

The Chief Judge underscored the seeming irrationality of this position, noting that Texas’s argument:

[D]oesn’t even make good non-sense.

The questioning then turned to EPA’s long-standing rules describing the workings of the permitting system for the largest sources of pollution. Those rules are more than 30 years old.

In this series of exchanges, Judge Tatel focused on provisions of the Clean Air Act that capture “any air pollutant” within this program. He questioned the Petitioners about how this language, and the Supreme Court’s decision in Massachusetts v. EPA, could possibly allow the agency to exclude greenhouse gas pollutants.

Like yesterday, the judges closely examined EPA’s legal authority. Today, they pointedly questioned both Petitioners and EPA. 

It was another fascinating day in the courtroom with important implications for protecting human health and the environment from the clear and present danger climate pollution poses.   

Now, we’ll all have to wait for the court’s decisions –probably sometime in the summer. We’ll bring you updates as soon as anything happens.

In the meantime, you can read more about the EPA’s endangerment findings and the attacks on EPA’s climate change protections on our website, or from my earlier blogs posts – a preview of the case, or a look at yesterday’s proceedings.

Also posted in Clean Air Act, Climate Change Legislation, Greenhouse Gas Emissions, News, Policy / Comments are closed

EDF Applauds New Fuel Efficiency and Emissions Standards for Cars and Trucks

America has driven a little bit further down the road toward clean and fuel efficient cars.

The U.S. Environmental Protection Agency and the U.S. Department of Transportation just announced their joint proposal to set new, stronger fuel economy standards for cars and light trucks – for model years 2017 to 2025.

EDF’s Fred Krupp said the announcement:

 … is more good news for American consumers, auto manufacturers, public health and the environment. By 2025 we’ll have cars that on average get more than 54 miles to the gallon, save their owners more than $8,000 in fuel costs, save our country more than two million barrels of oil a day, and drastically reduce the carbon dioxide pollution in our air.

This is the second phase of setting new fuel efficiency standards for cars. The Administration already set standards for model year 2012 to 2016 cars, which will reach an average of 35.5 miles to the gallon.

They also set new standards for trucks and buses. (Our experts have written about all of this before, of course – most recently here)

But the newly proposed standards are the biggest step forward yet. Together with the earlier improvements, they will:

  • Save Americans a total of $1.7 trillion in national fuel savings over the life of the program.
  • Reduce our oil consumption by an amount more than our 2010 oil imports from the entire Persian Gulf, by the year 2025
  • Reduce our carbon dioxide pollution, over the life of the program, by the equivalent to the emissions from the entire United States in 2010

You can get a lot more details, and a illustrative graph, on our new fact sheet.

Also posted in Clean Air Act, Greenhouse Gas Emissions, News, Policy / Comments are closed

Broad Support for Cleaner Cars — Except from Some in Congress

At a Congressional hearing last week, some members of Congress sought to undermine historic fuel economy and greenhouse gas standards that will save Americans money at the gas pump, help break our addiction to foreign oil, strengthen our economy, and reduce harmful pollution.   

 The shrill attacks on those historic standards were in sharp contrast to the broad support for cleaner cars, including support from the U.S. auto industry.

Automobile manufacturers have intervened to support the standards in the Federal Court of Appeals in Washington, D.C.  In recent filings in federal court, the Alliance of Automobile Manufacturers and the Association of Global Automakers have characterized these standards as:

valid, mandated by law, and non-controversial

(That’s from a D.C. Circuit Court filing from September 30, 2011 — Brief for Intervenors Alliance of Automobile Manufacturers and Association of Global Automakers, Coalition for Responsible Regulation v. EPA, Docket Number 10-1092

The State of Texas and its allies, along with an industry group representing coal mining interests, have sought to topple the landmark clean car standards.  The automakers — those directly regulated by the new standards –have forcefully countered that, if legal challenges are successful in overturning EPA’s clean car standards, it “would result in tremendous hardship to their companies” and that the associated costs would be “substantial.”

(Those two quotes above are both from court documents: the first is from the same brief I already cited, and the second is from a November 1, 2010 filing with the same D.C. Circuit Court: Intervenor Alliance for Automobile Manufacturers’ and Association of International Automobile Manufacturers’ Opposition to Motions for Stay, Coalition for Responsible Regulation v. EPA, Docket Number 10-1092).

The Environmental Protection Agency’s (EPA) standards govern greenhouse gas emissions, and not just fuel economy. That means EPA’s measures will create business opportunities throughout the vehicle supply chain.

Honeywell, a leading global manufacturer of air condition systems, filed an amicus brief in support of EPA’s standards, noting that :

technologies for reducing the United States’ carbon footprint have the potential to create the kind of ‘green jobs’ that are a priority for America in the 21st century

(That’s another quote from a D.C. Circuit court filing, this time from September 8,2011: Amicus Brief of Honeywell International, Inc., Coalition for Responsible Regulation v. EPA, Docket Number 10-1092). 

Honeywell recognized the possibility that innovative technologies spurred by these emission standards have the potential to spread throughout the global economy, creating business opportunities for companies at the forefront of this technological innovation.  The automobile industry developed the catalytic converter in response to clean air measures, and, through commonsense regulations like these vehicle fuel economy and greenhouse gas standards, the United States can remain at the forefront of technological innovation in the global automotive market.   

These benefits are echoed by members of the small business community — eventual purchasers of the new, more fuel efficient vehicles. 

In a press release, Small Business Majority founder and CEO John Arensmeyer emphasized the importance of strong emissions standards, stating that:

 [s]mall businesses understand that to survive in this tough economy they need to innovate, and that strong fuel efficiency standards will assist them in doing so by helping them save money in their own business and creating new market opportunities

In fact, in a recent survey, small business owners overwhelmingly supported stronger fuel-efficiency standards for cars and light trucks, with 87 percent stating that it was critical for the U.S. to take action now to increase fuel efficiency.

 The benefits to covered business are, of course, just a portion of the environmental and economic benefits associated with EPA’s clean vehicle rule:

  • More fuel efficient vehicles will save consumers money.  American families will save more than $3,000 on fuel costs over the lifetime of a model year 2016 vehicle, and, for families financing a vehicle, the savings will be immediate. 
  • The standards are projected to cut gasoline consumption by 75 billion gallons
  • The standards are also projected to cut harmful global warming pollution by over 20 percent, avoiding 960 million metric tons of CO2-equivalent

As a result of these myriad benefits, EPA’s vehicle standards have strong support from a diverse coalition, including auto manufacturers, states, environmental organizations, and veterans organizations.  Members of the veterans’ organization Operation Free testified at public hearings across the country about the vital importance of EPA’s clean vehicle rules in breaking our addiction to foreign oil. 

Despite these significant benefits and the strong, broad-based support for vehicle greenhouse gas emission standards, some in Congress are attempting to topple these common-sense rules on the theory that doing so would ease burdensome regulation.  Ironically, overturning these regulations would have precisely the opposite effect – constraining business innovation, burdening cash-strapped consumers, and harming the environment. That’s a result that would benefit no one.

 

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