Alternative fuel vehicles Archives

Formula E comes to Long Beach in what could be the first run of an annual electric racing series

The Formula E electric race series was cheered on by several thousand people in grandstands in Long Beach, Calif., on Saturday. Sponsors and promoters of the race series are quite hopeful Formula E will educate and inspire people to see the potential of electric drives to power vehicles of all types quietly and with zero emissions.

Brazilian Nelson Piquet, Jr., took first place for China Racing (and his father, Nelson Piquet, had taken first place in the Long Beach Grand Prix in 1980); Jean-Eric Vergne of Andretti Formula E finished in second place; and Lucas di Grassi of Audi Sports ABT came in third place.

Piquet was the sixth different first-place winner in the six races that have so far taken place in the 10-race Formula E series. Nicolas Prost of e.dams-Renault took first place about three weeks ago at the Miami race. The next stop in Formula E will be Monaco ePrix in Monte Carlo; then it will go to Berlin and Moscow before wrapping up in London in June.

The Formula E race series has gained more publicity by bringing in racing teams sponsored by Virgin Group founder Richard Branson, the family dynasty of racing legend Mario Andretti, and superstar Leonardo DiCaprio. DiCaprio attended the race on Saturday. The annual Long Beach Grand Prix, with Formula One race cars, will take place in two weeks on the same track.

Each of the race’s 20 teams had to change to a second car during a pit stop. The batteries weren’t able to cover the entire 39-lap race, so the drivers jumped into duplicate racers. It sounded quite different than the regular Long Beach Grand Prix with Formula One racers roaring through the streets of downtown. Formula E cars whizzed by the stands with their rubber tires squealing on the turns.

General admission to the Long Beach race was free this time; that’s likely to change the next time Formula E comes to Long Beach. That could be as early as next year. Organizers of the event have been in talks with sponsors and city officials in Asia, Europe, and the US about making this race series an annual event. The founding partners sponsoring the race series are BMW i, Michelin, Renault, Qualcomm, DHL, and wrist-watch company Tag Heuer.

BMW displayed its i3 and i8 electric cars inside the eVillage, located on the inside area of the race track. Zero Motorcycles displayed its e-bikes and shared an exhibit space with e4 Advanced Transportation Center of Southern California (ATC); and with Dutch organization Coast to Coast Smart e-Mobility (C2C). Qualcomm displayed an electric race car.

Students with interest in a future engineering career from Long Beach high schools participated in a race earlier that day. Students from Cabrillo, Jordan, McBride, Millikan, and Santa Barbara high schools, and the California Academy of Math and Science, competed in a race in cars they had assembled from kits. Schools also had display booths in the eVillage.

A few days before the race, students at California State University Long Beach received a special guest lecture from Formula E founder and CEO Alejandro Agag. He took questions from students that ranged from the overall state of the business of motorsport to technical questions about the unique challenges of designing the battery housing of the Formula E car. In 2012, veteran Spanish racing promoter Agag won over support from the Federation Internationale de l’Automobile (FIA) to start Formula E. The 10-race series officially launched in September 2014 in Beijing.

Propel Fuels and Neste Oil bring price-competitive renewable diesel to California

For fleets, transportation companies, and individuals based in Northern California driving diesel-engine vehicles, there’s now a renewable diesel available at fuel stations for about the same price as traditional diesel. California Air Resources Board (CARB) studies show that this renewable diesel can reduce greenhouse gas emissions up to 70% compared to petroleum diesel; and offers significant reduction in nitrogen oxide (NOx) and particulate matter for those concerned about air quality and health issues in regions with high output from commercial trucks.

Propel Fuels has brought this renewable fuel, called Diesel HPR (High Performance Renewable), to 18 fuel stations in Sacramento, San Jose, East Bay, Redwood City, and Fresno. Diesel HPR was created by Finland-based Neste Oil using that company’s NEXBTL renewable diesel. Diesel HPR is a low-carbon renewable fuel designated as ASTM D-975, the standard for ultra-low sulfur diesel fuel in the US. It’s also recognized as “CARB diesel” by the state agency, and is a certified fuel with the US Environmental Protection Agency. A complete list of Diesel HPR fueling locations is available at dieselhpr.com/locations.

Diesel HPR comes from renewable biomass including recycled fats and oils that can originate from sources such as waste fish oils and vegetable oils. It’s refined from renewable biomass through Neste Oil’s advanced hydrotreating technology that meets the toughest specifications required by automotive and engine manufacturers. Like biodiesel, the fuel offers fleets and consumers the advantage of using a clean fuel in vehicles without paying for vehicle conversions. Diesel HPR can be used by any diesel vehicle. “It’s a clean, clear, odorless fuel that’s highly refined and has low sulfur and carbon,” said Rob Elam, CEO and Co-Founder of Propel Fuels, during a phone interview. “Diesel HPR exceeds conventional diesel in power, performance and value.”

Elam says there’s been tremendous interest in the fuel from owners of diesel-powered cars with Bosch technologies (such as Volkswagen, Audi, and Mercedes-Benz diesel-engine models) that have “No Biodiesel” stickers. Using biodiesel would threaten their warranties. “They’re excited to see Diesel HPR launched,” Elam said.

The fuel’s high-blend rate with reduced greenhouse gas emissions has made it very appealing to corporate and government fleets, he said. “Many fleets are moving towards the state’s Low Carbon Fuel Standard, so low carbon diesel makes sense,” Elam said. Bakeries with a fleet of Sprinters are very interested in the fuel, as are companies in the heavy-duty long-haul trucking business.

While the EPA is still mulling over 2014 production volumes under the Renewable Fuel Standard and its RIN credits, California’s Low Carbon Fuel Standard and cap-and-trade credit market makes the state an appealing place to launch renewable transportation fuels. Clean Energy Fuels would attest to that through its Redeem renewable natural gas; that product is finding interest by fleets wanting to comply with California standards and utilize clean fuels to meet emissions targets.

The Renewable Fuel Standard and RIN debate has been a major concern to the biofuels industry. There has been enough interest in renewable fuels for Neste to bring a large volume of its fuel to California, Elam said. This is the first time renewable diesel is being offered as its own product; it has cost parity with regular diesel in California but its weights and measures are still being worked out by the agencies, he said.

“This renewable diesel joins a growing suite of new, cleaner transportation fuels in California thanks to our Low Carbon Fuel Standard and forward thinking companies like Propel,” said California Air Resources Board Chairman Mary Nichols, in the press release.

Propel Fuels started up in 2004 when it set up the very first public biodiesel station in Seattle. Passage of AB 32 in California motivated the company to bring renewable diesel, ethanol, and biodiesel to fuel stations across California. Oregon has passed a low-carbon fuel standard and the state of Washington is considering one. The company will expand into others states as market demand grows, but as for now, there’s “plenty of growth in California,” Elam said.

What do Peter Ward, Rick Sikes, and Keith Leech have in common with Travis McGee? Taking their retirement ‘in installments’?

Travis McGee may have set the tone for baby boomers entering the retirement phase of their lives. McGee, the lead character in a series of popular John D. MacDonald mystery novels published in the 1960s-to-1980s, lived on his boat The Busted Flush in Fort Lauderdale. McGee would get hired to do private detective work – or what his business card described as a “Salvage Consultant” – to retrieve stolen money and goods. Between those gigs, he lived as a “beach bum” on his boat, and would take his retirement “in installments.” When he needed the money, or something lively to do, he would take the job. Today, that might mean a boomer takes an early retirement but continues on with what they’ve always wanted to do – taking their retirement “in installments.”

I asked that question of Peter Ward, Principal at Alternative Fuel Advocates, at an ACT Expo conference about why he’d left his position at the California Energy Commission but had continued in the clean transportation space. “I was infected with the alternative fuel passion many, many years ago,” Ward said in this Automotive Digest video interview. That started during the OPEC oil embargos in the 1970s – the “petroleum shocks.” Don’t be surprised to see Ward at future ACT Expo and other industry events, and to hear about projects he’s working on in the Sacramento area.

Rick Sikes, Fleet Superintendent for the City of Santa Monica, and Keith Leech, Fleet Manager for the City of Sacramento, announced their retirements in January. They’ve been well known at NAFA Fleet Management Association and for making significant contributions to clean transportation. Sikes has played a leading role organizing AltCar Expo in Santa Monica since its inception in 2005. Leech served as President of the Sacramento Regional Clean Cities Coalition. I saw Sikes at the Long Beach Clean Cities meeting last month, where he confirmed that he’ll be staying active in the community. I also get the impression Leech will do the same in Sacramento.

One of my colleagues will be retiring from an electric utility this spring, and will be starting up as a consultant supporting growth in electric vehicle (EV) charging. Multi-family dwellings, such as apartments and condos, is where he’s most concerned that EV charging faces its biggest obstacles and opportunities; that’s where he’ll bring his skillset and peer network to make a difference.

When I’ve talked to colleagues, friends, and family members about their retirement plans, I’m usually told about the next phase of their working lives. That could be as a consultant working on projects in between travels; or a contract worker for their previous employer contributing their expertise; or a substitute school teacher; or a writer finishing that book they’ve put off all these years; or a student finishing up that degree or certification to go in a career direction they’ve always wanted to pursue. There’s also the option of continuing to work in their business, never really retiring.

I recently asked Automotive Digest Publisher Chuck Parker to share his thoughts on what it’s like to be a seasoned industry veteran who won’t be retiring anytime soon. That led to him writing a commentary in his usual colorful style, called “Top Twenty Anti Retirement Action-ables to Be ‘Live’ & Remain Alive.” That will be published soon in Automotive Digest, but here are two of them………

“Realize that you will be missed at the office for no more than a week and they will blame everything on you for at least a year after you are gone.
Know that you are now an entrepreneur and that everything you do is tax deductible.”

Now that the tail end of the baby boomer generation has turned 50 as of last year, researchers have been tracking how this generation has been reinventing their careers in phase two – or phase three. AARP (formerly the American Association of Retired Persons) fills its monthly magazine with celebrity profiles where Jeff Bridges, Meryl Streep, and Bob Dylan continue loving their work and taking on projects. Clint Eastwood, 84, didn’t win an Oscar for “American Sniper,” but we do expect him to make another movie – he loves doing it. AARP tracks demographic research and finds that the fastest-growing segment in the workforce will be 65-to-74 year olds; with some Americans working well into their 90s.

I started my practice, LeSage Consulting, last year in January at age 50. I was waffling over it when my significant other, who at age 51 had started a two-year master’s degree program in project management, gave me a reminder. I had committed to keeping my word, she said. (“Actions speak louder than words,” as my father used to say). So I took that plunge and haven’t regretted it. I won’t be getting any younger.

Nobel Prize winning chemist (and champion of vitamin C as a healing agent) Linus Pauling offers a telling story – right up there with Travis McGee. In 1973 he co-founded a California research institute devoted to the study of the health effects of vitamin C and other nutrients. He conducted research there until his death from cancer in 1994, at age 93. I’ve always had a hunch I’ll end up traveling down a similar path as Linus Pauling, Chuck Parker, and Travis McGee.

Editor’s note: Changes to LeSage Consulting website and Green Auto Market will be announced within the next couple of weeks.

This Week’s Top 10: Clean Cities announces research resources, Tesla Model S and Toyota Prius take Consumer Reports awards

by Jon LeSage, editor and publisher, Green Auto Market

Here’s my take on the 10 most significant and interesting occurrences during the past week…….

The US Dept. of Energy’s Clean Cities has issued several research resources for stakeholders in the past week. The Clean Cities 2015 Vehicle Buyer’s Guide offers vehicle selection, pricing, infrastructure, and emissions information on a wide selection of alternative fuel vehicles. Categories include propane, compressed natural gas, biodiesel, plug-in electric, plug-in hybrid electric, hybrid electric, and ethanol flex-fuel. Clean Cities also said that it’s moving forward on its request for information (RFI) project announced in November on purchasing and procurement for bulk vehicle orders. The RFI is soliciting feedback from industry, academia, research laboratories, government agencies, and other stakeholders on issues related to purchasing/procurement processes designed to coordinate and consolidate bulk alternative fuel vehicle, advanced vehicle orders, and vehicle subsystems. Responses are due no later than 5:00 pm eastern time on March 13, 2015. This announcement was coordinated with a public meeting for Clean Cities stakeholders to collect input in a new Clean Cities five-year strategic plan. Clean Cities encourages stakeholders to continue to give written comments through its Strategic Planning Meeting website until March 13.
The Tesla Model S and Toyota Prius take best of awards from Consumer Reports. For the second year in a row, the Model S has taken the “best overall” category for its “innovation, magnificence, and sheer technological arrogance.” The testing team likes the fact that Tesla’s over-the-air software updates keep the 2013 model up to date with many of the same features as the new models. The Toyota Prius took the “green car” category again, which has been the case consecutively since 2004. Testers haven’t been that impressed with ride comfort, cornering, and interior, but the affordability, fuel economy, packaging and “blue-chip reliability” make it the “perfect economical transportation solution.” Rating indicators for all Consumer Reports categories are based on overall road-test performance, reliability, and safety.
AltCar has announced dates for its two 2015 events. For the Northern California event, the City of Oakland AltCar Conference & Expo will be held May 28. The 10^th anniversary of the City of Santa Monica’s AltCar Expo will take place on Sept. 18-19. For participation, you can contact Platia Productions at (310) 390-2930, ext. 3.
Toyota started production of Mirai fuel cell sedan at its Motomachi Plant in Toyota City, Japan. The fuel cell car can travel 400 miles on a fueling and has been very important in Toyota’s green vehicle strategy; however, the production numbers are limited to 700 units this year, 2,000 in 2016, and 3,000 in 2017.
Daimler joins other automakers selling in the European market by implementing more material cost efficiencies to meet stringent European Union emissions targets. Daimler Chief Financial Officer Bodo Uebber says that in 2014, the automaker offset the burdens from the variable cost for its carbon reducing measures with material cost efficiencies such as sharing more commonality among its different car lines. Uebber expects to do the same this year through at least 2017.
The Propane Education & Research Council (PERC) is funding $600,000 to Icom North America to support development of its propane autogas technology in the Ford 3.5L EcoBoost engine. That should assist Icom receiving both US Environmental Protection Agency and California Air Resources Board certifications for the 3.5L EcoBoost platform. Icom’s JTGhp direct-injection system can be applied to the Ford F-150, Explorer, and Taurus vehicle platforms. PERC also announced last week that it will be displaying at the NTEA Work Truck Show in Indianapolis. Fleet managers are invited to interact with PERC’s dimensional displays for calculating lifetime operating costs, and seeing cost savings that comes from using propane autogas.
Volvo Cars is joining the autonomous vehicle test driving movement by placing 100 self-driving cars on Gothenburg, Sweden streets by 2017. Local residents will be using these autonomous Volvo XC90 crossover test vehicles commuting to work on a controlled 31-mile route. That test is expected to run through the spring of 2019 and will use sensors, cloud-based positioning systems, intelligent braking, and steering technologies through a new Volvo autopilot system.
Texas state grants had pretty good return on investment with grants issued to natural gas vehicles (NGVs), according to a study by the University of Texas San Antonio’s Institute for Economic Development. Three state grants, totaling $52.9 million, supported construction of new natural gas fueling stations and the adoption of NGVs. That generated $128 million in economic impact, $52.9 million in gross state product, and supported 927 full-time jobs in 2014. The Texas Commission on Environmental Quality administered the three grants that went out to the Clean Transportation Triangle, the Alternative Fueling Facilities Program, and the Texas Natural Gas Vehicle Program.
As biofuel supporters wait for the US Environmental Protection Agency to get around to announcing its 2014 volume standards, another action was taken in Washington. A bill introduced last week by Senators Pat Toomey (R-Pa.) and Dianne Feinstein (D-Calif.) would repeal the corn ethanol mandate in the Renewable Fuel Standard (RFS). Feinstein is especially concerned about corn prices increasing if that mandate continues. They’re misunderstanding the facts, according to Bob Dinneen, president of the Renewable Fuels Association. “Corn is less expensive today than when the RFS was passed,” Dinneen said.
Solar power will see substantial growth in 2015, according to a new study by GTM Research. Solar installations will grow in 75% of US states, with incremental growth in Arizona and Massachusetts but significant growth in Georgia and Utah.

This Week’s Top 10: GM unveils the Bolt crossover and Volt redesign, More news from the Detroit Auto Show

by Jon LeSage, editor and publisher, Green Auto Market

Here’s my take on the 10 most significant and interesting occurrences during the past week…….

The Detroit Auto Show opened with a bang for Chevrolet as it announced the Bolt electric crossover and the redesigned 2016 Volt. Rumors about General Motors working on a crossover version of the Volt have been fairly accurate – only it has a different name and it will be all-electric, not a plug-in hybrid like the Volt. The Chevrolet Bolt is expected to roll out in 2017 and compete directly with the Tesla Model X electric crossover. General Motors says the Bolt should get 200 miles per charge and will sell for about $30,000 with the federal tax incentive; and it will play a big role in strengthening its leadership role in electrified transportation. (See photo of the Bolt concept car.) The 2016 Chevy Volt was revamped to address needed improvements, including quieting the engine, improving performance and adding space to the interior. It will also deliver a lot more range – an estimated 50 miles per charge instead of its current range of 38 miles.
More from Detroit Auto Show: Winners of the North American Car and Truck of the Year awards were the Volkswagen Golf “family” (which will include all-electric and clean diesel versions) and the Ford F-150 and its lightweight aluminum body and improved fuel efficiency. Mercedes debuted its new plug-in hybrid, the C350. Daimler AG chairman Dieter Zetsche downplayed fuel economy in these days of cheap gasoline and focused on performance – zero to 60 in 5.9 second, sports-car like handling, and the ability to reach a top speed of 130. The Nissan Leaf may more than double its output in its next version – up to 200 miles on a single charge. Nissan CEO Carlos Ghosn unofficially made this comment following a media briefing.
Nissan is working with NASA on a five-year project to enable autonomous vehicles. By the end of this year, a fleet of Nissan Leafs will be tested to use hardware and software jointly developed by Nissan and NASA. Testing will take place at Nissan’s Silicon Valley Research Center and NASA’s Ames Research Center in Moffett Field, Calif.
California Gov. Jerry Brown raised the bar again during his State of the State address last week. Gasoline consumption should be reduced by 50% over the next 15 years, 50% of the state’s electricity supply should be powered by renewables by 2030, and energy efficiency should be doubled in existing buildings. Brown, at age 76, just started his fourth and final term as California’s governor and wants to see the state heighten its role in the fight against global warning.
Solar-powered electric car Stella has been nominated by TechCrunch as one of the five biggest Technology Achievements for its upcoming 8^th annual “Crunchies Awards.” Stella is up against an impressive list of contenders — Apple Pay, The Block Chain (Bitcoin), Rosetta Mission’s Comet Landing, and SpaceX Lateral Booster. Stella, created by Solar Team Eindhoven from the Eindhoven (Netherlands) University of Technology, has been widely recognized and is gaining support. Stella took first place in the 2013 Michelin Cruiser class at the World Solar Challenge race in Australia. Partners include National Drive Electric Week, Plug In America, and the Coast to Coast EV Connection project. The team calls it the “world’s first solar-powered family car.”
Pope Francis is expected to issue an “encyclical” outlining the Catholic Church’s stance on climate change. It will likely reinforce the church’s strong stance with concern over climate change and its impact on the planet and its population. This has been gaining a wave of media coverage and social media mentions for its symbolism. The leader of the Catholic Church with its 1.2 billion members is joining ranks with most of the world’s leading scientists – uniting religious and moral issues with science, at least on the global warming question.
Here comes the fastest electric car………. The Detroit Electric sports car is moving forward and will soon be built at a new facility in Leamington Spa in England. Detroit Electric is shooting for building the world’s fastest electric car that will hit 60 mph in a mere 3.7 seconds and is powered by a 285-hp electric motor. It’s being built on the chassis of the Lotus Elise, the same as the now-discontinued version of the original Tesla Roadster. While still calling itself Detroit Electric, the company had to move out of that hometown overseas to England last year.
Car-sharing company car2go, will be launching its service in China. That will happen in the Chinese metro market of Chongqing within the next year, and will involve a fleet of several hundred Smart Fortwo small cars. The subsidiary of Daimler AG says it now has 12,500 vehicles operating in 29 locations and serving over one million customers in Europe and North America.
RIN prices have doubled – Renewable Identification Number (RIN) prices have recently doubled year-over-year in all three reported categories – biomass-based diesel, advanced biofuel, and renewable fuel. They’re still about 30% below the peak period during the summer of 2013, commonly referred to as “RINsanity.” High RIN prices are expected to shield biofuel producers from falling oil prices, while refiner profits will be cut into by high RIN expenses if RIN prices remain high.
So who will be the dominant force behind self-driving cars? Google or Daimler? Mercedes played it up at the Consumer Electronics Show showing off its “F 015 Luxury in Motion” concept car with its futuristic metallic exterior, swiveling seats to support face-to-face passenger conversations, and touch screens every passenger could access. Daimler CEO Dieter Zetsche said that this Mercedes-Benz will provide an escape from the crowded urban environment of the future.

Significant clean transportation news events in 2014

Green Auto Market hopes you’re having a great holiday season away from the office. Before the new year begins, here are 10 leading events from this year (and a few “almost made it” at the end of the list) that will have rippling effects on 2015………

Gasoline price drops – On Friday, AAA Daily Fuel Gauge Report said that US regular gasoline prices had averaged $2.32 per gallon versus $3.26 one year ago. As explored in another Green Auto Market article this week, gas prices will go up quite a bit but it could take about five years for that to happen. Sales of hybrids, electric vehicles, and natural gas vehicles have been impacted by that market force. Making the case for investing in alternative fuel vehicles is getting tougher for fleets and consumers, but there are still a few solid reasons for going in that direction.
Tesla battles dealers – The Georgia Automobile Dealers Association has been the latest state dealer group to battle Tesla Motors’ legal ability to directly sell its cars to consumers outside independent franchised dealers. Earlier this month, Georgia auto dealers testified before a state administrative law judge to make that case. Tesla is slightly ahead of dealer associations on this issue in several states, but has been barred in a few of them (such as the sizable market of Texas).
Google rolling out self-driving cars – Google’s launch of a test project featuring its own self-driving pods back in May of this year fueled a heated debate that went viral on the internet. Autonomous vehicles, also known as driverless and self-driving cars, led to significant studies being launched (such as Hands off the Steering Wheel), automaker announcements, and extensive media coverage. It will take a few years to see autonomous vehicles next to you on roads, but things are changing.
Infrastructure growth – In the past year, alternative fueling and charging stations saw some growth in the US – compressed natural gas (CNG) stations increasing 150 stations to 794; electric vehicle public charging stations increasing 2,102 to 8,814; propane autogas increasing 44 to 2,715; and liquefied natural gas increased 19 to 64 stations (according to Clean Cities Alternative Fuels Data Center). Clean Energy Fuels played a big part in the natural gas station expansion; and California started seeing more hydrogen stations open up.
Ridesharing service Uber has become Public Enemy No. 1 this year for the taxi industry and other ground transportation services. This San Francisco-based network company makes mobile applications that connect passengers with drivers of vehicles for hire and ridesharing services. Taxi drivers have protested this year in US and European cities; they’re furious that Uber drivers don’t have to pay the steep prices for taxi licenses that taxi drivers end up paying off over several years. India will decide if Uber can access metro markets in that country. Other ridesharing services such as Lyft and Sidecar face similar battles with cities that fear ridesharing will transform the taxi business and take away the revenue that comes from fees paid by taxi owners every year.
Luxury plug-ins had a significant year with the BWW i8 joining the i3 in BMW’s electric vehicle offerings. The plug-in hybrid i8 sells for $136,000 and has the same performance as a BMW 335i. As of Nov. 30, the i3 had sold 5,079 units in the US for 2014– pretty impressive for an expensive luxury electric car.
Propane autogas had an impressive year in school bus fleets, police cars, utility trucks, and in UPS’ decision to bring in 1,000 propane-powered delivery trucks to its fleet. Fleet managers are making a business case that propane-powered vehicles are worth the investment with emissions reductions, fuel cost savings, and supporting domestic fuel providers.
ACT Expo saw attendance growth In Long Beach, and significant partnership announcements including joining up with Electric Drive Transportation Association for the 2015 event. Other clean transportation conferences did very well, too. AltCar Expo saw growth in attendance with a strong Santa Monica, Calif.-conference in September and through its partnerships with the Bay Area and Dallas events. Other successful conferences were North American Green Fleet Forum, presented by Sacramento Clean Cities Coalition; CleanTech OC’s annual conference and clean transportation event earlier this year; Plug in 2014 in San Jose, Calif.; and CALSTART’s annual conference and Blue Sky Awards.
The Renewable Fuel Standard decision by the US Environmental Protection Agency (EPA) was once again put off on biofuel production and gasoline blending until next year – nearly one year after deciding to extend that decision on production volume. The biodiesel industry has been feeling the pinch, and corn ethanol has shifted to overseas markets. Advanced biofuels like biodiesel and cellulosic ethanol will take longer than expected to reach higher production volumes.
While it didn’t get all that much media attention, a major global alliance took a big step forward. The United States and China, which together produce 45% of the world’s carbon emissions, made an agreement to extend their greenhouse gas emission reduction targets farther than before. Details on the US-China greenhouse gas emissions agreement is being decided for next year. China’s economy is booming, and workers are moving to cities to take jobs and housing. They’re buying a lot of cars, too. All of this producing a huge volume of emissions at power plants and vehicles.

Here are some other significant news stories for 2014: Tesla Motors choosing Nevada to set up its “Gigafactory;” California institutionalized its position as leader in the electric vehicle market; the debate over whether hydrogen fuel cell vehicles could make or if electric vehicles should be the only alternative technology supported by OEMs (and why Toyota was choosing hydrogen); NAFA Fleet Management Association and CALSTART moved the Sustainable Fleet Standard Program forward; and the launch of LeSage Consulting in January 2014. The idea for that consulting firm started in February 2013 while talking to my Automotive Digest colleagues and interviewing fleet managers such as NAFA President Claude Masters, an experienced and passionate advocate of clean transportation. (Editor’s note: the decision to put out the press release on the launch of LeSage Consulting at the beginning of this year was going to be delayed several months – until my partner/significant other challenged me to keep my word. Thanks very much, Susan. Special thanks also goes out to Chuck Parker, Nancy Edwards, Ted Roberts, Janice Sutton, and other Automotive Digest colleagues; members of the monthly Stakeholder Editorial Advisory conference calls; and to Long Beach Clean Cities Coalition.)

This Week’s Top 10: Honda delivers Green Dealer Guide, Carlos Ghosn has fun bragging about Nissan and Renault ZEV sales

Here’s my take on the 10 most significant and interesting occurrences during the past week…….

Honda’s sustainability drive is being carried forward to its dealer network through its Green Dealer Guide resources. The 93-page guide offers instructions to Honda dealers on making their operations more energy efficient. Methods include installing high-efficiency lighting, using climate-control systems, managing water use, and using renewable energy sources like solar power. This strategy goes well with Honda’s corporate blueprint on environmentally sound practices – which has been impressive enough for the company to win several “greenest automaker” rankings from the Union of Concerned Scientists. The guide has been in the works over the past three years, and now offers its network dealers techniques on saving energy and money. One example is adding an automated thermostat and adjusting lights after business hours, which can save the dealer $7,000 per year and would cut energy consumption by at least 10%.
Convenience, economy, increased awareness, and driving fun and reliable cars are the main reasons Renault-Nissan surpassed its 200,000^th zero-emission vehicle (ZEV) in sales, according Carlos Ghosn, chairman and CEO of the Renaualt-Nissan Alliance. Ghosn is very good at championing the cause and made some impressive statements in his LinkedIn post…… The Nissan Leaf is by far the best selling its electric vehicle worldwide – so much so that sales up 20% this year. The Leaf, Renault Zoe and other zero emission vehicles in the automakers product lineup have been driven about four billion kilometers – enough to circle the earth 100,000 times!
Two non-internal combustion engine vehicles made this year’s top rankings in Wards Auto’s “10 Best Engine” annual listing. The BMW i3 was the only one of four battery electric vehicles evaluated for the contest to make the cut. Judges liked the power options, including the i3 Rex gasoline range extender edition. The Hyundai Tucson Fuel Cell also made the top 10; the panelists liked how Hyundai has packaged the fuel-cell stack under the hood – helping to make the entire ownership experience similar to driving a regular internal combustion engine vehicle.
Here’s a huge opportunity: only 4% of companies surveyed by GE Capital have alternative fuel vehicles in their fleet, but more than 55% plan on adding them in the coming years. That comes from a national survey of 409 executives at middle market companies who have responsibility for their company’s vehicle fleets.
Tesla China President Veronica Wu has resigned from her position with Tesla Motors after less than nine months in the job. No details have come out yet on why this might have happened. “We remain confident in the Chinese market,” the company said in an e-mailed statement.
Having trouble managing your analysis of company and fleet greenhouse gas emissions (GHG)? Here’s a guide for corporate environmental health and safety (EHS) officers on approaching methods for accurately calculating GHG emissions for reporting purposes. Regulatory uncertainty means that companies need to stay current on the latest and best methods.
Two leaders from Alabama Clean Fuels Coalition have been named to the Clean Cities Hall of Fame. Executive Director Mark Bentley and President Phillip Wiedmeyer were inducted by National Clean Cities Co-Director Linda Bluestein while representatives from nearly 100 Clean Cities coalitions gathered for the annual coordinator workshop. In 2013, Bentley and Wiedmeyer lead the Alabama coalition as it saved more than three million gallons of petroleum and averted more than 12,000 tons of greenhouse gases through deploying alternative and renewable fuels.
California Energy Commission (CEC) is receiving applications for funding medium- and heavy-duty advanced vehicle technology demonstration projects. Those applications will be received through Jan. 29, 2015. Demonstrations receiving funding must enhance market acceptance of advanced vehicle technologies that will lead to vehicle production and commercialization, reduce greenhouse gas emissions, and reduce petroleum use, according to the CEC.
France is pushing for a huge change in its car ownership model – getting rid of diesel-powered cars. About 80% of French motorists drive diesel-powered cars, so the government is launching a car identification system to rate vehicles by the amount of pollution they emit. Taxation is the method that will be used to redirect consumers to more ecologically sound choices.
Only a third of diesel-powered passenger cars have lower cost-of ownership than their non-diesel counterparts. That’s down from 46% of diesel vehicles being cost effective in the 2013 edition of Vincentric’s Diesel Analysis study. Of the 35 diesel vehicles included in the study, only 11 have lower ownership costs than their all-gasoline counterparts. Of these 11, 10 were luxury models – making it even tougher to save any money during diesel vehicle ownership.

Fair competition beats out chosen winner technology as key theme at CALSTART annual meeting

Is the hydrogen fuel cell vehicle the winning technology of the day, or is it plug-in electric vehicles? Natural gas or renewable natural gas? The landscape shaped by regulators, OEMs, infrastructure players, and legislative officials may be evolving into more of a level playing field – according to speakers last week at the CALSTART Annual Meeting and Blue Sky Award ceremony in Los Angeles.

Automakers have given up fighting federal and state standards for fuel efficient, reduced carbon vehicles – replacing it with competition for leadership in a wide spectrum of alternative fuels and advanced vehicle technologies. “The industry is spending billions on technology,” said keynote speaker Christopher Grundler, director, office of transportation and air quality at the US Environmental Protection Agency. “They have to do their job to achieve fair competition.”

This perspective was complemented by Janea Scott, commissioner at the California Energy Commission, during an afternoon speaker panel on private-public investment partnerships. “You don’t want to pick a winner technology,” Scott said. “You want to receive proposals and make the best decision. We’re creating a bigger pond with more competition.”

Speakers acknowledged that the regulatory environment is certainly very challenging with California’s AB 32, low carbon fuel standards, and cap and trade credits; the status of Renewable Fuel Standard rules and credits; phase two of federal standards for heavy-duty vehicle fuel economy and emissions coming up; details on the US-China greenhouse gas emissions agreement being decided next year; and air pollution from goods movement and its impact on disadvantaged communities and others working at, and living near, ports and major interstate highways.

CALSTART’s founding chairman and current president of the California Public Utilities Commission (PUC), helped put things in perspective. When he served as president of Southern California Edison during CALSTART’s creation in 1992, Michael Peevey said that all of the targets being hashed out by states and federal agencies seemed unattainable back then. Now the decisions are becoming more intricate, he said – such as whether the PUC should lift its ban on electric utilities deploying their own electric vehicle charging stations.

The tension between California and the federal government (and automakers) was more of a battleground in the early days of CALSTART, but that is getting worked out. Grundler made some humorous comments about it while participating on another panel with Richard Corey, executive director of the California Air Resources Board; that came across in his comments on California considering itself its own sovereign nation and having to accept that fact that its slipped from the seventh largest economy in the world to the eleventh.

Another colorful moment came up when Dave Barthmuss accepted a Blue Sky Award for his company, General Motors. Barthmuss acknowledged that he did look familiar to people from having been featured as the GM spokesman in “Who Killed the Electric Car?” While Barthmuss looked like one of the bad guys is that influential movie, things seemed to have changed. After taking the award for GM’s full suite of plug-in vehicles and its clean manufacturing, he was pleased to share his own pride in being an electric vehicle driver and for being part of efforts to get CALSTART employees to start driving Chevy Volts to work.

The other winners of the Blue Sky Award were: California State Senator Fran Pavley became the first-ever second-time award winner for several accomplishments over the years, more recently for leading the creation of incentive programs to move clean transportation forward including bringing cap and trade funds to mobile sources. California State Senator Ricardo Lara was honored for leading Senate Bill 1204 that will help reduce pollution in communities living near freight corridors and ports, particularly in disadvantaged communities. California Assemblyman Henry Perea was acknowledged for his leadership role with Senator Pavley on the passage of Assembly Bill 8 to extend clean transportation incentive programs through 2023. Award winners acknowledged CALSTART for its role in getting important bills passed in Sacramento, and for helping their implementation go forward. (And many thanks to CALSTART for inviting Green Auto Market to serve as a supporting organization for the event.)

Frito-Lay was given a Blue Sky Award for its large-scale commitment to alternative fuels; the company has made a strong investment in compressed natural gas and electric vehicles to its fleet and with its partners. Caterpillar Inc. was honored for developing and commercializing its Off-Road Large Size Hydraulic Hybrid Excavator. The hydraulic hybrid excavator captures and reuses energy that would normally be lost during earthmoving operations and reduces fuel consumption and CO2 emissions.

This Week’s Top 10: Audi takes on Tesla for wealthy eco-conscious buyers, Federal tax credits on AFVs extended

by Jon LeSage, editor and publisher, Green Auto Market

Here’s my take on the 10 most significant and interesting occurrences during the past week…….

Audi takes on Tesla: Even though reaching out to upscale, climate change-conscious car shoppers probably won’t be enough to take electric vehicle sales to the next level, Audi thinks there’s enough potential in that segment to take on Tesla Motors. In 2017, Audi will be rolling out an electric crossover that will compete with Tesla for business among wealthy, environmentally conscious consumers. It will be a battery-powered version of the $115,900 R8 sports car – Audi’s first battery electric vehicle. It will follow deliveries of the A3 E-Tron plug-in hybrid hatchback this year. Competition with Tesla (and BMW) for the luxury electric car buyer market will be tough. Tesla Model S drivers who recently took a Consumer Reports survey say they’re more likely than Porsche owners (or any other brand) to buy one of these Tesla cars again. The car shopping experience is one of the reasons Tesla drivers are staying very loyal to the brand. Even though most franchised dealers hate Tesla for running their own stores, they are showing an example of what luxury car buyers are expecting from the experience. Major dealer chain Sonic Automotive was recently dubbed the “Tesla of dealers” by Morgan Stanley for giving their customers a faster and better buying experience.
Tax credits on AFVs. If you’re looking for tax credits for vehicles running off of compressed natural gas, liquefied natural gas, and propane autogas, there’s good news. The House last week passed HR 5771, the Tax Increase Prevention Act of 2014, which includes a 50-cent per gallon tax credit through the end of this year. That credit had previously expired at the end of 2013, and the US Senate is now reviewing the bill.
Simplifying electric vehicle (EV) charging monitoring and reporting. Siemen’s energy management division is working with Duke Energy on the next phase of a US Dept. of Energy-funded project. Siemens has what it says is the first Underwriters Laboratories (UL)-approved residential EV supply equipment (EVSE) to demonstrate the ability to monitor status, report energy use, and be controlled from the local area network and the cloud. That comes out of an 18-month test project to reduce cost and expand charging technologies.
British OEMs “onshoring” jobs back to UK. British automakers are expected to create 50,000 new jobs in the UK over the next two years; 63% of them are planning on developing low-carbon or electric vehicle technology. According to a study by Lloyds Bank, 70% of car manufacturers or their supply chain partners plan to return more of their production to the UK; improved economic conditions there and a desire to support local communities are reasons why – along with creating more reliable and shorter supply chains.
Ryder System joins Trucking Efficiency. Major fleet management and supply chain company Ryder System is supporting this joint initiative between the Carbon War Room and the North American Council for Freight Efficiency.org provides fleet owners and operators with data on available vehicle technologies and the benefits and challenges of deploying them.
More workplace charging. Coca-Cola Company will provide electric vehicle charging at seven of its facilities across California, and NRG eVgo will install and manage them. It’s part of offering support with the state’s goal of bringing 1.5 million zero-emission vehicles to its roads by 2025.
Diesel plug-in hybrid. Volkswagen will enter the plug-in hybrid diesel market through its Audi brand. The Audi Q7 will debut next year with gasoline and diesel powertrains, and a plug-in diesel will come later to Europe and the US.
Getting NGV support in Washington. Executives from Daimler Trucks, UPS, Clean Energy Fuels, and other companies spoke last week before the US Senate Finance Committee asking for support of federal tax incentives for natural gas vehicles. High-ranking senators agreed that reform is needed on tax and energy policies to level the field for alterative fuels. However, how and when this will take shape was not resolved by the finance committee.
Boeing 787 Dreamliner battery fire. National Transportation Safety Board reported that the lithium-ion battery fire last January in a parked Boeing 787 Dreamliner came from design and certification defects. The NTSB is recommending that the Federal Aviation Administration improve guidance and training provided to industry FAA certification engineers on safety assessments and compliance methods. NTSB made 15 safety recommendations to FAA, two to Boeing, and one to battery manufacturer GS Yuasa.
Fuel Efficient Military Vehicles. GMZ Energy, which produces high temperature thermoelectric generation (TEG) solutions, announced the successful demonstration of a 1,000W diesel TEG that directly converts waste heat into usable electricity to increase fuel efficiency by reducing the load on the alternator. This announcement follows GMZ’s June 2014 demonstration of its 200W diesel TEG, and marks the next milestone in the $1.5 million vehicle efficiency program sponsored by the US Army Tank Automotive Research Development and Engineering Center (TARDEC) and administered by the US Dept. of Energy. TEG could save the US military billions of dollars per year by increasing fuel efficiency in Bradley Fighting Vehicles, which get less than one mile per gallon.

Ethanol sales may not be hurt by EPA decision on Renewable Fuel Standard

Are you producing and selling an alternative fuel that’s getting tangled up in regulatory limitations? No worries – just sell it overseas. While ethanol and other biofuels producers have been frustrated with delays in the Renewable Fuel Standard decision by the US Environmental Protection Agency (EPA), exports of corn ethanol have increased 31% this year and have reached their highest level since 2011.

Ethanol used in gasoline will probably never hit the 15% ethanol E15 target that the EPA had been considering; and the 10% ethanol mark may be reduced by pressure being placed on the EPA by oil refineries and producers. Exporting petroleum products with the additive ethanol blend has been a big growth sector for petroleum products and ethanol in the past few years. The US passed Russia in 2010 to become the dominant exporter of petroleum products, and ethanol sales have increased with that growing overseas demand.

Archer-Daniels-Midland Co., Green Plains Renewable Energy Inc., and Valero Energy Corp., three of the four largest U.S. ethanol companies, say that ethanol exports have been a significant part of their revenue growth. “If we can’t sell it here, we’ll sell it someplace,” said Bob Dinneen, president and CEO of biofuels industry group Renewable Fuels Association (RFA). “We’re going to focus overseas.”

Exporting fuel has been a bit more difficult for liquefied natural gas (LNG). So far, the US Dept. of Energy (DOE) has approved each export application, but the approval process has been complicated. Some analysts worry that strong demand for US-drilled natural gas may drive up the price for LNG and compressed natural gas, but so far it remains stable for users of natural gas vehicles.

The shale-oil boom in the US has created a stream of oil and gas products being sold overseas; ethanol is seeing a record level of crops being grown for these exports. The US is now producing about 66 million metric tons more corn than 10 years ago; that’s nearly as much as the rest of the world will export this year. Overseas demand is keeping ethanol sales strong even though the EPA has been easing off the ethanol mandate for the past year.

Ethanol trade lobbyists have traveled to Peru, Panama, Japan, and South Korea and trips are planned to Thailand, Malaysia and the Philippines this month to gain support for more overseas ethanol sales, according to RFA. A Commerce Department-sponsored trade mission to northern Brazil last year won sales contracts valued at $29 million, the RFA says. If the EPA mandates a lower volume of ethanol sales in US fuel, it probably won’t matter much for the ethanol industry.