This Week’s Top 10: BMW and Tesla deal didn’t actually take place, Wisconsin wants to tax EV and hybrid owners more

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…….

  1. Elon MuskWell it looks like many of us fell for it on the BMW-Tesla deal. Last week, Tesla CEO Elon Musk told German media giant Der Spiegel that the two automakers were continuing talks that could set aside competition for the luxury electric car space and focus more on mutual gains. That could have meant combining “lightweighting” from BMW and advanced batteries from Tesla Motors and jointly creating better charging stations. Now, BMW told German business magazine Wirtschafts Woche that it doesn’t have plans for cooperation with Tesla and won’t be doing what other major OEMs have done in buying Tesla’s stock shares. That comes from an unnamed source at BMW. It could also have something to do with BMW digging plug-in hybrids over the battery-electric-only mindset of Tesla. BMW just launched a three-prong approach to bringing these extended-range plug-ins to China. One is a long-wheelbase 5-Series sedan, another is a prototype 3-Series sport sedan, and another project is the new Power eDrive system than can produce 670 horsepower. Tesla will be able to get over it; things are going well enough for the electric carmaker to ramp up its Fremont, Calif., production plant ahead of an expected production increase. Global demand is moving things along and will allow for building its all-wheel drive Dual Motor Model S and the start of its Model X crossover production, the company said.
  2. State governments are looking more at electric vehicle (EV) and hybrid owners as a funding source. Wisconsin has joined five other states to impose a fee on fuel-efficient vehicles; EV and hybrid owners will get a $50 annual charge. The new fee has been designed “to ensure these owners continue to pay their fair share of the operating costs of our infrastructure,” said Wisconsin DOT Secretary Mark Gottlieb. Washington Governor Jay Inslee sees it another way; Inslee wants to extended a state tax break for EVs and look into giving them access to carpool lanes. Cutting carbon pollution and reducing dependence on fossil fuels gets support in the state, but others question whether EV owners should get preferences. Inslee would agree with many leaders mentioned in another Green Auto Market article – this is part of his larger effort to tackle climate change. One representative who heads the House Finance Committee has concerns about extending that tax break, which expires on July 1.
  3. EPA’s Christopher Grundler makes Automotive News’ annual all-star list. Grundler, director, Office of Transportation and Air Quality at the US Environmental Protection Agency, has been acknowledged for the role he’s playing in guiding the agency through adoption of its tough emissions and fuel economy rules. Grundler has led offenses against automakers overstating their mpg stickers about their best-in-class fuel-efficient vehicles. Hyundai and Kia were recently hit with a $100 million civil penalty for overstating mileage along with other fines; other automakers have revised fuel economy labels, including Mini and Mercedes-Benz, and Grundler’s office has played a leading role in this tactic.
  4. Fleets in Texas have access to an incentive for propane autogas vehicles. The Propane Council of Texas is offering up to a $7,500 incentive for purchasing a propane-powered vehicle for their commercial fleet. The program is capped at $15,000 available per fleet.
  5. The Renault-Nissan Alliance has passed the 200,000 mark in electric vehicle (EV) sales. The global automaker says that about 150,000 of that has been Nissan EVs sold in the US, Asia, and Europe – mostly the Leaf but also the e-NV200 small commercial van that may be introduced into the US. Renault offers four EV models – with its Zoe and Kangoo ZE being top selling, followed by the Twizy and Fluence ZE.
  6. Southern California Edison’s (SCE) energy storage may be good for electric vehicle (EV) batteries. Electric utility giant SCE is investing more than anyone else in storage – enough for 250 megawatts (MW) of energy storage. That started out as needing 50 MW to make up for the loss when its San Onofre nuclear power plant was taken offline due to safety concerns, but its order has been five times that need. Much of that storage is coming from lithium-ion battery cells similar to what’s being used now in electric vehicle battery packs. Vehicle-to-grid (V2G) systems may be used to turn these EVs into storage units for excess energy.
  7. Shedding 700 pounds has been very good for F-150 fuel economy. Ford Motor Co. has increased the fuel efficiency of its 2015 F-150 pickup by 29% with its lighter-weight aluminum body. When equipped with a 2.7L V-6 EcoBoost engine, the truck is getting 26 mpg highway, 19 city, and 22 combined, according to the US Environmental Protection Agency.
  8. Miami-Dade County, Fla., has added more hydraulic hybrid trash trucks to its fleet. That’s the third order of the trucks built with Parker Hannifin’s RunWise Advanced Series Hybrid Drive System, bringing the total in its fleet up to 64 of these vehicles. Using these hydraulic hybrids is reducing fuel consumption by up to 50%, according to Parker Hannifin.
  9. Renewable natural gas is getting more support. A new report, “Decarbonizing the Gas Sector,” from the Bioenergy Association of California (BAC), makes some impressive statements about the fuel’s potential. Organic waste converted into biogas could meet more than 10% of California’s natural gas demand. According to BAC, total organic waste in the state could be used to produce 2.5 billion gge (gasoline gallon equivalents) of transportation fuel, enough to replace three quarters of all the diesel fuel used in the state.
  10. Volkswagen has high hopes for its “Think Blue. Factory” program. The German automaker thinks it can reduce energy and waste consumption, along with CO2, waste, and solvent emissions, by 25% by 2018 compared to its 2010 levels. The company has already implemented more than 2,700 projects that have made its production processes 17% more environmentally sustainable over the past three years. Recycling and reusing cooling water at some of its plants has been one of the tactics producing benefits, Volkswagen said.

This Week’s Top 10: Tesla and BMW may focus more on collaboration than competition, Honda funding hydrogen stations in California

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…….

  1. Tesla and BMWCombining “lightweighting” and advanced batteries could bring Tesla Motors and BMW beyond competition for dominance in the sporty luxury electric car space. Tesla CEO Elon Musk told German weekly Der Spiegel that Tesla and BMW have been in meetings on forming a potential alliance in batteries and light-weight carbon fiber components being used in the BMW i3 and i8. Musk finds the carbon fiber made by BMW and its joint venture with materials supplier SGL “interesting” and “relatively cost efficient.” Musk said the talks are exploring whether collaboration might work for battery technology or charging stations. BMW and Tesla had met in June to discuss creating charging stations applicable to different types of electric vehicles. This alliance could expand Tesla’s recent history of working with major OEMs such as Toyota and Daimler. Toyota is moving away from building its RAV4 EV that uses Tesla’s electric drivetrain, but still wants to work with Tesla; the same is true for Daimler, which recently sold its remaining 4% stake in Tesla but wants to continue to collaborate with electric carmaker.
  2. Honda will loan $13.8 million to FirstElement Fuel to build 12 more hydrogen fueling stations in California. The hydrogen station supplier received a similar loan of $7.3 million from Toyota earlier this year as part of funding for the first 19 FirstElment stations in California. California wants to have 100 hydrogen stations assembled by 2020. The California Energy Commission granted FirstElement almost $27 million earlier this year; it’s part of a pledge of almost $200 million to bring the 100 fueling stations to the state. Hydrogen stations are expected to expand to other states, including Toyota collaborating on a hydrogen network in the Northeast. Volkswagen, which showed two hydrogen-powered vehicles at the LA Auto Show, is prepared to bring its fuel cell vehicles from Germany to the US market.
  3. Keith Leech, Fleet Manager at the City of Sacramento and head of Sacramento Clean Cities, has won the 2014 Fleet Excellence (FLEXY) in Public Fleet Sustainability award. “We are the first government fleet in the country that is actually fueling with renewable natural gas (RNG) naturally produced locally from organic food waste using anaerobic digesters that the city did not build. We’re excited to be out in the forefront and support a local start-up company [CleanWorld – a Sacramento Clean Cities partner],”Leech said. Read more about it in NAFA Fleet Management Association’s FLEETSolutions.
  4. Clean Cities is rolling out a new program to coordinate bulk alternative fuel and advanced vehicle technology orders. Its new Funding Opportunity Announcement (FOA) is called Alternative Fuel and Advanced Vehicle Procurement Aggregating Initiatives. “By developing a process for companies and organizations to consolidate their orders, it could help vehicle manufacturers achieve better economies of scale and lower prices per unit,” Clean Cities says.
  5. The Sierra Club is joining Ford Motor Co. and SunPower’s Drive Green for Life program to help more Americans move toward emissions-free driving. Ford customers who own electric vehicles such as the Focus Electric, C-Max Energy and Fusion Energy plug-in hybrids, will get a $750 rebate on a SunPower residential solar system. Two other models are eligible for the program, the C-Max Hybrid and Fusion Hybrid. The Sierra Club will be receiving a $500 donation for each rooftop solar system through the program.
  6. Energy Vision named four winners to its 2014 Leadership Awards in the renewable energy field. Among the winners were Richard DiGia of Aria Energy and Harrison Clay, President, Clean Energy Renewables, whose joint project works with the Seneca Meadows Landfill in Seneca Falls; its first New York State operation converting landfill biogas into vehicle fuel, to ship its renewable natural gas to California, where Clean Energy Renewables distributes it to vehicle fleets.
  7. The Coda Sedan now has a second life as the Mullen 700e, an unchanged version of the electric car. The Mullen 700e debuted at the LA Auto Show last week. One big difference is that the 31-kilowatt-hour battery pack is now supposed to deliver the car 185 miles on a charge compared to the previous 125 mile range on the Coda Sedan. The car comes from a post-bankruptcy firm named Coda Cars, whose chief executive Rick Curtis now serves as president of Mullen Consolidated, the corporation that’s overseeing the revival of this electric sedan.
  8. The US Department of Defense and the US Air Force are bringing 42 plug-in electric vehicles to the Los Angeles Air Force Base. The non-tactical vehicle fleet gained a $3 million investment from California Energy Commission and comes from an alliance between federal, state, and private energy organizations, Air Force officials said. The fleet is made up of plug-in sedans, vans, and trucks. It’s also serving as a demonstration model for emerging vehicle-to-grid (V2G) technology. The vehicles can direct power to and from the electrical grid when they’re not being driven. The technology is capable of providing more than 700 kilowatts of power to the grid, which could power more than 140 homes in the US.
  9. About 280 employers in the US now have workplace electric vehicle charging stations, a number that’s nearly doubled in the past two years. Workplace charging is turning into an effective tactic to attract and retain talented employees while supporting reductions in greenhouse gas emissions and advanced vehicle technologies. Several of these employers are participating in the US Dept. of Energy’s EV Everywhere Workplace Charging Challenge. Starting with 13 founding partners in January 2013, its grown to 150 partners who are providing access to charging stations for more than 600,000 employees at more than 300 worksites around the country.
  10. Lux Research presented a cost-of-ownership model comparing gasoline and diesel internal combustion engine vehicles to battery electric vehicles (EVs), plug-in hybrid electric vehicles, hybrids, and hydrogen fuel cell vehicles. EVs lead the way due to the relatively low cost of electricity, and it was followed by various types of hybrids, and plug-in hybrids. Rating measures included fuel cost alone, fuel cost plus operation, and purchase or lease for total ownership cost.

This Week’s Top 10: Ram 1500 EcoDiesel wins green truck award, O’Hare International Airport in Chicago will be opening an alternative fuel station

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…….

  1. Ram 1500 EcoDieselThe Ram 1500 EcoDiesel took the first-ever Green Truck of the Year award from Green Car Journal at the San Antonio Auto & Truck Show. The Ram pickup beat out four other models, including the expected winner Ford F-150 that has been receiving many accolades for its light-weight aluminum, EcoBoost, and increased mpg. The Ram 1500 EcoDiesel beat another Ram model, the 1500 HFE, along with the Chevrolet Colorado, and the GMC Canyon. Along with fuel economy and emissions reductions, other factors influencing the award’s outcome are functionality, versatility, safety, value, and style. The timing is very interesting given that Bobit Business Media will be rolling out its first-ever Green Fleet Car and Truck of the Year Awards at the LA Auto Show – the same day that Green Car Journal Publisher and Editor Ron Cogan will hand out the annual Green Car of the Year award. It’s also very interesting to see Green Car Journal announce nominees yesterday for more categories – Technology, SUV, and Luxury Green Car Awards. Winners will be announced at the Washington Auto Show on January 22, 2015. (Editor’s note: Still no announcement yet on Green Auto Market launching its own award.)
  2. O’Hare International Airport in Chicago will be opening an alternative fuel station in early 2016 offering compressed natural gas, biodiesel, and fast-charging stations. Taxis, shuttle buses, and electric vehicle owners will have access to charging, alternative fuels, and conventional gasoline. The aviation department says that an increasing number of vehicles using the airport are powered by alternative fuels including taxis and hotel and rental car shuttles. The center will be also be open to the general public. Clean Energy Fuels will work with PMG Airport Developers, which has built and operated other airport travel plazas.
  3. The Propane Education & Research Council launched a new series of educational videos called Clean American Innovation featuring interviews with leading US equipment manufacturers discussing their efforts to develop and commercialize new propane autogas technologies. PERC visited manufacturing facilities across the US to show cutting-edge propane technologies in production. Freightliner Custom Chassis, Kohler Engines, Power Solutions International, Roush CleanTech, and other companies participated in the videos.
  4. Diversity is the word for Ward’s 10 best engines 2015 nominees. Of the pool of 38 nominees, five are diesel, two hybrids, five electric vehicles, one plug-in hybrid, one is a CNG flex-fuel V6, and one is a hydrogen fuel-cell vehicle. Twenty one of the engines are turbocharged, and four-cylinder turbo engines prevail. For the past decade, WardsAuto says its list has become more diverse than the previous year. Winners will be named in mid-December and awards handed out at North American International Auto Show in January.
  5. Slower-than-expected demand for electric vehicles has caused Continental AG to likely end a battery cell joint venture with South Korean company SK Innovation Co. While there’s been general interest in battery-powered vehicles, people are delaying their purchases, says Continental CFO Wolfgang Schaefer.
  6. The National Auto Dealers Association’s Get the Facts campaign continues with a new ad that highlights what it calls the “benefits of price competition.” It’s a brightly-colored cartoon that emphasizes why negotiating is good for buyers. This has come out in the wake of a series of videos published by Edmunds that ridiculed this practice, which it calls “haggling.” Get the Facts also explores the value of franchised dealers as they battle Tesla Motors over state laws on franchised dealers and car sales.
  7. The new 2015 Honda Civic Natural Gas will be rolled out in 37 states on Nov. 19 with a base price of $26,740 not including the $790 destination fee. It comes with a five-speed automatic transmission, a seven-inch touchscreen audio display, rearview camera, and LaneWatch display as standard features. As for mileage, its gasoline gallon equivalent is 27 mpg city, 38 highway, and 31 combined.
  8. BMW will be running a pilot project in Munich next year where street lights will charge electric cars. BMW will be testing out two prototype “Light and Charge” street lights that combine LED with BMW’s ChargeNow charging stations. These will be the first street lights that can charge electric cars and come straight from the existing local authority street lighting infrastructure, BMW said. Drivers will be apple to pay for their charging via a mobile phone app.
  9. Fisker Automotive will continue working with Quantum Fuel Systems, licensing plug-in hybrid control software for use in the Karma. Fisker will be paying Quantum $2 million before the end of the month to close the deal to renew their relationship and continue with the same control software used previously. Fisker will also pay an additional $2 million by late October of next year to license software for its next vehicle, the Fisker Atlantic.
  10. Growth in the materials supply chain for advanced batteries over the next 10 years has been analyzed in a new Navigant Research study. Most of the materials will likely be going into lithium-ion batteries; they’re expected to have a leading market share in all three of the major application areas: stationary, portable devices, and transportation. It is also expected that other chemistries will be seeing much growth over the next 10 years

ASE releases hybrid and EV certification plus other training resources to know about

electric vehicle techniciansA new job certification category was just released that should be very good news to educators in programs supporting skilled workers servicing alternative fuel vehicles. The National Institute for Automotive Service Excellence (ASE) last week announced the Light Duty Hybrid/Electric Vehicle Specialist (L3) certification category. Service technicians may register starting Dec. 1, 2014, and testing begins in January 2015.

“The new Light Duty Hybrid/Electric Vehicle certification was developed in response to industry requests for an ASE certification for those servicing hybrid vehicles,” said Tim Zilke, ASE President and CEO. “The L3 is the result of years of work by industry specialists from both OEM and Aftermarket segments who came together to develop a certification which encompasses a wide range of hybrid/electric vehicle technology.”

The L3 Certification Test Reference is included as an electronic pop-up during the test. This document identifies the concepts for the hybrid/electric vehicle technology included in the test, and outlines the three common types of hybrid/electric vehicle drive systems, with diagrams shown for each type.

As discussed by educators last February at a day-long workshop, there is a real need for certified service technicians working with hybrids and electric vehicles. Dealers, fleets, and maintenance garages will need to hire more service technicians trained to keep these vehicles running safely and efficiently. As I’ve mentioned many times in this newsletter, and since starting my consulting practice, education and public awareness programs are essential for job creation, vehicle acquisition decisions, and support in legislatures and corporate boards.

It’s good for stakeholders in clean transportation to stay updated on educational resources like the ASE certification. Here’s a list of other resources to keep in mind………

Community-College Based Training
The best training programs out there are coming from community colleges across the country; along with service technicians, training is being delivered for maintenance and repair, fueling stations and infrastructure, other technology courses supporting natural gas, propane autogas, hybrids and electric vehicles, hydrogen, and biofuels. US Dept. of Energy’s Clean Cities Coalition Coordinators are very good to contact for guidance on these resources.

National Alternative Fuels Training Consortium
NAFTC is a nationwide training organization, headquartered at West Virginia University, that develops curricula and conducts more than 20 courses and workshops focusing on alternative fuel and advanced technology vehicles. NAFTC works with US Dept. of Energy (DOE) and Clean Cities, and has 30 national training centers located throughout the US.

Natural Gas Vehicle Institute
NGVI offers natural gas vehicle education, in-house training, and public education forums, technical assistance, and awareness programs for government, utility companies, suppliers, and customers.

Propane Autogas Fleets Safety & Training
Propane Education & Research Council (PERC) offers guidelines for constructing or modifying repair and maintenance garages for propane autogas-fueled vehicles including passenger cars, vans, buses, and trucks. Fleet managers, operators, and private garage owners are given information on basic requirements of a propane autogas-fueled vehicle repair or maintenance garage.

National Fire Protection Association (NFPA)
NPFA is considered by educators to be an essential resource for training programs serving emergency responders. In September, NFPA received a Federal Emergency Management Agency grant to develop NFPA’s Alternate Fuel Vehicle Safety Training. NFPA’s online program will be used to provide free training to the US fire service on safe handling of electric, hybrid, hydrogen fuel cell, compressed natural gas, liquefied natural gas, and liquefied petroleum gas at incidents involving passenger vehicles, trucks, and buses.

The Hybrid Shop
Powered by technology developed by Automotive Research and Design, The Hybrid Shop is an international network of service centers dedicated to bringing scientifically-sound, environmentally friendly, and cost effective repair solutions to owners of hybrid and electric vehicles.

Clean Vehicle Education Foundation
CVEF manages a DOE-funded program that increases awareness of compressed natural gas (CNG) cylinder inspection requirements; and encourages natural gas vehicle owners to periodically have their tanks inspected.

Alternative Fuel Data Center (AFDC)
Check out DOE’s AFDC section on natural gas vehicle maintenance and safety. It’s an educational site covering cylinder inspection, oil-change intervals, ignition systems, and other topics.

SAE International
The Society of Automotive Engineers has working groups that issue standards shaping the way alternative fuel vehicles and the charging/fueling infrastructure are designed and manufactured. Two good sites to research are focused on alternative fuels and vehicle electrification.

Auto Career Development Center (ACDC)
ACDC offers hybrid and electric vehicle technician training through classrooms and other channels such as webinars and DVDs. Its hybrid training goes back to 2000, and electric vehicles were added in 2008.

Parker Hannifin RunWise well positioned in electrified commercial truck market

Parker Hannifin hydraulic hybridFleets looking for hybrid and plug-in Class 3-8 trucks and vans have fewer options today than before – with Boulder Electric Vehicles and Smith Electric Vehicles pulling down their shutters and Eaton deciding to leave the hybrid medium-duty truck market in North America. The Parker Hannifin RunWise hydraulic hybrid has been seeing more interest from fleets this year, primarily among refuse trucks, and that’s been expanding into other sectors including parcel delivery trucks.

Fleets are impressed with the benefits – including fuel savings up to 4,300 gallons per year for each vehicle; capturing 71% of lost brake energy; and significantly reducing carbon emissions. The Runwise Advanced Series Hybrid Drive System is distinct in the market; when starting up, the engine charges a high-pressure accumulator in the hydraulic system. Hitting the brake pedal drives energy back from a reservoir into the accumulator – driving energy normally lost in braking back into powering the truck. It’s similar to regenerative braking systems currently being used in several hybrid passenger cars.

Like other clean transportation options, RunWise brings a significantly higher acquistion cost than comparable internal combustion engine vehicles. RunWise brings fuel-cost savings – 40%-to-50% less than gasoline and diesel; brakes lasting about four-times longer than traditional braking system replacement cycles; and productivity gains from drivers who like using the hydraulic hybrid trucks, says Tom DeCoster, North American business development manager at Parker Hannifin.

Fleet owners are more educated today about their options than years ago, DeCoster said. They’ve been reading up on alternative fuel vehicles and have checked vehicles out at industry conferences. They’re looking to save on fuel and lifecycle costs and have concerns about the driveability and adoption by drivers, DeCoster said. While they’re feeling pressure on reducing emissions, cutting costs has been higher on the list for more fleets. Saving on fuel costs and brakes has been impressing fleets enough to make the investment in RunWise trucks. Payback is about two-to-three years in duty cycles for fleets making the RunWise truck acquisitions, he said.

Class 8 refuse trucks with their heavy payload and stop-start patterns are producing a lot of energy captured in the RunWise drive system. Trucks are classifed as “severe duty” in the refuse truck industry as refuse trucks stop and start about 2,000 times a day while collecting garbage.

Fleets are starting to take battery-powered vehicles more seriously this year than before and are looking at their options. Along with RunWise, Smith Electric Vehicles is resuming production this fall of its Newton trucks; TransPower offers Class 8 drayage tractors that are being field tested at the Port of Los Angeles; Electric Vehicles International has delivered electric walk-in vans to UPS and Frito-Lay; Zero Truck converts Isuzu NPR medium-duty trucks to electric vehicles for municipalities; Hino Trucks, which just celebrated 30 years doing business in the US, since 2012 has offered its Class 5 cab-over diesel-electric hybrids; and XL Hybrids just received certification from the California Air Resources Board (CARB) for its hybrid-electric conversions of Chevrolet Express and GMC Savana vans.

Waste Management Inc. has been entirely committed to natural gas vehicles, but other major refuse service companies are bringing in hydraulic hybrids to meet cost saving and emissions reducing targets, DeCoster said. Most of Parker Hannifin’s business has been in trash trucks, but delivery fleets are starting to bring in hydraulic hybrids, he said. Transit and shuttle bus facilities are acquiring buses with RunWise hydraulic hybrid systems. Parker Hannifin is also working with a major alternative fuel OEM to manufacture hydraulic hybrid trucks using natural gas as their fuel, DeCoster said.

This Week’s Top 10: Selling alternative fuel vehicles as gasoline prices dip, UN Climate Summit in New York revives push for global standards

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…….

  1. Exxon gas stationWhile there are several challenges to increasing electric vehicle (EV) and other alternative fuel vehicle sales, I would say that gasoline prices are one that don’t get mentioned enough. The uprisings in Iraq and Syria caused analysts to forecast increases through this year, but that is not the case today. A survey by analyst Trilby Lundberg reported that gas prices have been down 34 cents since the beginning of summer. GasBuddy is predicting the downward trend will continue. The US Dept. of Energy (DOE) estimates the national average gasoline price for all of 2014 will be $3.46 a gallon, its lowest annual average since 2010. The DOE predicts the average will fall again, to $3.41, in 2015. Survey researchers at Indiana University released an exhaustive study that found consumers are misinformed about EVs – with 75% incorrectly underestimating the benefits of the vehicles. Softening gas prices tend to hit hybrids the hardest in new vehicle sales and used vehicle values. With gasoline prices staying down for now, the challenge increases on how to inform consumers and fleets about the gains available through EVs, hybrids, natural gas vehicles, propane, and hydrogen.
  2. The UN Climate Summit took place last week at the UN Headquarters in New York City. It all started on Sunday, Sept. 21 with the People’s Climate March where more than 300,000 people took the streets in the largest-ever climate change rally. The purpose of the conference was to raise support for a worldwide climate agreement in Paris in 2015. In a speech at the summit, President Obama called for a more ambitious global approach to environmental issues; he talked about a new push to boost what the White House calls “global resilience” in the face of climate change. Environmental groups such as Natural Resources Defense Council and Sierra Club were pleased to see the street march on the 21st, and have called on the White House and US Environmental Protection Agency to stay committed to reducing carbon at power plants and through energy and transportation policies.
  3. US Department of Energy’s Clean Cities issued a reminder on fleets earning credits on the Alternative Fuel Transportation Program. Covered fleets can earn credits for some vehicles that don’t meet the Energy Policy Act of 1993 definition of an alternative fuel vehicle (AFV). The new policy adds half credits for certain hybrid electric vehicles, plug-in EVs, and fuel cell vehicles; and one quarter credit for neighborhood electric vehicles.  Medium- and heavy-duty hybrids are also eligible for a half credit after a fleet has met its light-duty AFV acquisition requirements.
  4. Well, well, well………. Tesla Motors officially exists in the auto industry. Automotive News, the “bible” of the auto industry, has asked Tesla CEO Elon Musk to be a featured speaker at Automotive News World Congress in January. Now, if anybody boos and hisses at him from the audience……..
  5. Westport Innovations Inc. released its newest proprietary technology, the first generation of enhanced spark-ignited (ESI) natural gas system. The new natural gas combustion technology is designed to provide vehicle and engine original manufacturers (OEMs) with a “downsized” natural gas solution that is cost competitive while providing similar levels of power, torque, and fuel economy to a larger diesel engine.
  6. Stevens Creek BMW in Santa Clara, Calif., is offering a good deal on a BMW i3 lease. It’s offering a $369 per month payment on a 36-month lease with $3,995 due at signing. Sales of the BMW i3 were about $350 a month for its first three months on the market before being increased. Sales have been very strong – 2,082 units sold from May to August, and a spike in numbers during August at 1,025. The Tesla Model S now has a direct competitor.
  7. Hewlett-Packard, Lowe’s and Home Depot were among the 2014 winners of the US Environmental Protection Agency’s SmartWay awards. Freight transport companies are honored for improving fuel efficiency, reducing greenhouse gas emissions, and reducing air pollution. The award honors top truck, intermodal, and rail carrier partners that are setting efficiency benchmarks in how they move products and supplies.
  8. University of Michigan Energy Institute professor John DeCicco thinks that self-driving cars can make transportation much greener and more sustainable. Connecting cars to the infrastructure around them can make traffic flow much more efficiently, along with other gains. I think I might agree with him.
  9. Former GM vice chair Bob Lutz made another interesting statement: Tesla Motors will only be a “fringe brand” until it introduces the smaller and less expensive Model 3 in late 2017. Lutz also thinks Tesla stock is “grossly overvalued” for now.
  10. Standard Oil tycoon John D. Rockefeller’s heirs are divesting from fossil fuels. The $860 million philanthropic organization, the Rockefeller Brothers Fund, will be divesting from stock in fossil fuels because of its harmful impact on climate change. The announcement was timed to coincide with the UN Climate Summit.

Big Picture: Smith Electric Vehicles coming back through Chinese investor, AC Transit may end its support for fuel cell buses

Smith Electric VehiclesIt looks like Smith Electric Vehicles will still be there – and it wasn’t looking too good not so long ago. Smith Electric, which produces all electric medium-duty commercial vehicles, has secured a $42 million investment from Sinopoly Battery Limited, a global supplier of lithium-ion batteries and related EV products. Sinopoly will be the exclusive supplier of batteries for Smith Electric vehicles (and vehicle applications compatible with Smith Electric platforms). The supplier will also provide EV components that will be manufactured at its Hangzhou, China, facility. Smith Electric will resume production in its Kansas City, Mo., facility in mid-summer 2014. The company recently suspended production to transition its supply chain to Tier 1 suppliers; that will enable Smith Electric to produce its vehicles at a lower cost, the company said.

And in other clean transportation news……..

  • AC Transit (Alameda-Contra Costa Transit District) in Oakland, Calif. is considering removing fuel cell buses from its fleet, according to an anonymous source. Transit districts have been a testing ground for alternative fuel vehicles; AC Transit has been testing out a fuel cell demonstration program since 2000 and has been considered to have the most comprehensive program in the US. The transit agency currently operates 12 third-generation fuel cell buses powered by a 120 kilowatt fuel cell power system.
  • New York has modified the list of trucks that are eligible under its $19 million Voucher Incentive Program. Hino’s 195h and 195h-DC diesel electric cab-over has been approved for the program and the list also includes OEMs such as Daimler Trucks North America, Isuzu, Peterbilt, and Volvo.
  • Toyota is wrapping up its deal with Tesla Motors to buy Tesla battery packs and motors for the Toyota RAV4 EV by the end of the year. In May 2012, Toyota, which owns 2.4% of Tesla Motors, said it would buy components for 2,600 RAV4 EVs over three years. That deal had produced $15.1 million in revenue for Tesla in the quarter that just ended. The RAV4 EV has never sold very well, and Toyota will be taking it out production later this year. This comes soon after Tesla announced first quarter 2014 performance – producing a record 7,535 vehicles and delivering 6,457 of them. On the state battle front, Tesla says its ready to fight in Missouri to sell directly to consumers; a bill looks like it will be introduced in the state to bar Tesla’s company-owned store system.
  • Dates for the next AltCar Expo have been released:  Friday, Sept. 19 and Saturday, Sept. 20, 2014, in Santa Monica ,Calif.
  • Navigant Research has launched the Transportation Forecast Research Service, an information and forecasting service that will focus on electric, stop-start, natural gas, fuel cell, propane and conventional vehicles. It’s part of Navigant’s Smart Transportation program.
  • General Motors’ Project Driveway has passed the three million miles of hydrogen-powered driving. It’s fleet of Chevrolet Equinox fuel cell vehicles have been driven by over 5,000 drivers who’ve given feedback on their experience. Some of the crossovers have traveled more than 120,000 miles and the fleet has saved 157,894 gallons of gasoline consumptions.
  • General Motors announced pricing for its 2015 Chevrolet Impala bi-fuel model that can run on CNG or gasoline — $38,210 including destination. That makes for two CNG-powered production cars in the US with the Honda Civic Natural Gas.
  • Cal State University, Los Angeles last week opened the largest hydrogen station operated by a university in the US.
  • Texas will be offering $2,500 rebates to buyers of plug-in electric vehicles. It was approved by the state legislature last fall with in intended spring 2014 start date.
  • Chrysler Group is recalling 4,100 Fiat 500 electric cars; a power inverter module on 2013-2105 Fiat 500e may be experiencing coolant seepage that causes power loss while driving – a short circuit leading to power loss. Chrysler says there have so far been five incidents but no fires.
  • Mahindra Group is investing in a 37,000 square-foot facility in Ann Arbor, Mich., to the produce the all-new GenZe electric scooter. It’s still not been made clear when the functional, lightweight scooter with plenty of baggage carrying space will be available for sale in the US.
  • BMW Group’s factory in Moses Lake, Wash., will be getting an investment of $200 million from BMW and SGL Group to triple capacity of its carbon fiber plant. It will be the world’s largest producer of car bon fiber with an annual output of 9,000 tons by 2015 once expansion is completed. BMW’s i3 and i8 are built with carbon fiber reinforced plastics to increase their range and efficiency.

ACT Expo 2014 sees strong attendance and a broad platform for alternative fuels and technologies

ACT Expo 2014Alternative, clean transportation appears to be gaining support – as evidenced last week during ACT Expo 2014 at the Long Beach, Calif., convention center. Now in its fourth year since inception, the conference’s attendance was up – perhaps as many as 4,000 attendees, making it the largest event of its type in the US and perhaps the world. ACT Expo keynote speakers, workshops, ride and drive, and an expanded exhibit hall, featured the latest in alternative fuel vehicle technology, the regulatory environment, and cost-benefit analysis by fleets.

ACT Expo has become something of a broad platform for fuels, vehicles, and technologies of all types to be well represented, and for stakeholders in these industries to network. The American Trucking Associations worked with organizers of the event for the first time this year; NAFA Fleet Management Association also played a key organizing role along with the US Dept. of Energy’s Clean Cities, the US Environmental Protection Agency (EPA), and the EPA’s SmartWay Transport Partnership.

Another innovation launched this year was co-located events. Propane Education & Research Council was one of the leading sponsors of the event and held its “Lead the Way” propane autogas summit; NGV Global held its annual conference in tandem with ACT Expo and led a Technical Forum; California Hydrogen Business Council held its spring summit there; “Alternative Fuel Toolkit for Local Governments, Fleet Managers, and Employers Workshop” was presented by another leading sponsor, South Coast Air Quality Management District; and “Women in Alternative Clean Transportation Summit” was organized by ACT Expo management firm Gladstein, Neandross & Associates. There were a few field trip events coordinated with ACT Expo as well, including a heavy-duty natural gas tour with site visits to the Clean Energy station at Port of Long Beach and the Waste Management Carson station featuring LNG and CNG fueling.

The kickoff keynote speaker during Tuesday’s luncheon was Dennis Slagle, executive vice president group truck sales & marketing Americas, Volvo Group. The truck manufacturer aims to be the world leader in sustainable transportation through its Volvo, Mack, UD, Prevost, Novobus, and other heavy duty truck and bus brands. Volvo operates a comprehensive green vehicle portfolio in transport with natural gas, clean diesel, dimethyl ether (DME), and bi-fuel vehicles. Volvo is working with Cummins on bringing in a 13 liter LNG engine next year. Slagle called for a common sense regulatory approach in Washington, and asked for renewal of expired tax incentives.

Erik Neandross, CEO of event organizer Gladstein, Neandross & Associates, led a panel right after Slagle’s presentation featuring prominent leaders in the industry. Clean Energy Fuels president and CEO Andrew Littlefair gave some interesting statistics including heavy duty trucks using 25 billion gallons of natural gas last year, taking the lead, by far, as a user category. There are 19 million natural gas vehicles in operation globally today, but only 142,000 are in the US. There is a lot happening out there, and Littlefair made reference to supermarket giant Kroger’s announcement that day on how it replaced 40 diesel trucks with that same amount of LNG trucks in Oregon.

Propane Education & Research Council (PERC) president and CEO Roy Willis said that in addition to light and medium duty trucks, propane is being widely used in material handling, generators, irrigation, and landscaping (such as mowers). There are about 600,000 propane-powered forklifts in operation in the US. There are about 140,000 propane-powered passenger and commercial vehicles on US roads; as for sales, there were about 14,000 units sold in the US last year (about half OEM and half conversion);  75% are light duty (mostly pickups and police cars) and 25% are medium duty including school buses. PERC forecasts that there will about 18,500 propane autogas vehicles sold in the US this year and about 25,000 in 2015. In a separate interview, Willis said there’s a strong sense of momentum being experienced in propane autogas, even with expiration of the fuel tax credit at the end of 2013. Direct injection engines are holding a lot of promise; Willis talked about the PERC project with Southwest Research Institute, Ford, General Motors, and Hyundai on direct injection.

National Biodiesel Board CEO Joe Jobe talked about the ongoing battle in Washington – and how oil industry spokespeople are lobbying with misinformation about the Renewable Fuel Standard (with examples being shown in video segments) while also covering up their abundant federal subsidies. States are opening up to biodiesel such as Minnesota mandating that 10% of its diesel will soon be biodiesel. Via Motors chairman of the board Bob Lutz championed the breakthroughs electric vehicles are on the cusp of experiencing. He said that next-gen, lithium-sulfur batteries will have five times as much energy density as lithium-ion batteries.

Alex Freitag, director of diesel systems engineering at Robert Bosch, led a panel on light-duty diesel as a growing alternative. The 20% to 30% of fuel efficiency gains, along with huge reductions in NOx, hydrocarbons and particulate matter, have made diesel-powered vehicles much more viable for fleets and for consumers in the US. Mike McGarry, fleet product planning manager and green fleet support at General Motors, and William Craven, general manager of regulatory affairs at Daimler AG/Mercedes-Benz, discussed investments OEMs are making in clean diesel options. Advancements are being made in diesel technology, Freitag said, including thermodynamic optimization, turbochargers, idle reduction, and stop-start systems. As for biodiesel, OEMs are supportive of the alternative fuel but need to feel confident in the quality of the fuel before they embrace it, McGarry and Craven said.

ACT Expo 2014 hosted a ride and drive on Wednesday afternoon last week. Vehicles included an EVI medium-duty electric truck and a VIA Motors eRev extended range van; a propane-powered Ford E-Series van; fuel cell vehicles such as the Mercedes F-Cell and Honda FCX Clarity; natural gas vehicles such as the Honda Civic Natural Gas and Volvo VNL CNG tractor; and two clean diesel vehicles – the Chevrolet Cruze Turbo Diesel and Chrysler Jeep Grand Cherokee with EcoDiesel.

Penske working with customers on hitting sustainability targets in EPA SmartWay and through state programs

Penske CNGPenske led a panel discussion last week at ACT Expo 2014 on the U.S. Environmental Protection Agency’s (EPA) SmartWay Transport Partnership. Drew Cullen, Penske vice president of fuels and environmental affairs, moderated the panel that included EPA SmartWay’s Tracie Jackson-Hall and Joe Ringhoffer, director global sourcing at Penske Logistics.

In April, Penske Truck Leasing repeated its win as one of 10 companies named in the EPA SmartWay Affiliate Challenge Award; Penske was also cited for its strong marketing efforts. The EPA acknowledged Penkse for doing an exceptional job in promoting the partnership’s freight sustainability goals. Penske Truck Leasing has been assisting its customers in implementing SmartWay objectives including establishing fuel economy and emissions benchmarking; and has been educating customers on implementing SmartWay strategies into their own operations. “It is in our company DNA to not only be good environmental stewards ourselves, but to also aid customers in identifying, quantifying and implementing sustainable transportation solutions,” Cullen said.

Last October, Penske Logistics was a recipient of the 2013 SmartWay Excellence Award for being an industry leader in freight supply chain performance energy and efficiency. Penske earned this award in part for reducing its annual carbon dioxide emissions by 25%, nitrous oxide emissions by 40%, and particulate matter emissions by over 50%.

Penske works with customers using the SmartWay tools to improve environmental performance and quantify emissions calculations. Onboard technologies and alternative fuels are explored to improve fuel economy and improve the fleet’s efficiency. One of the workshop panelists, Chip Dorger, general manager at Letica Resources, explained how integrating the SmartWay program has meant less miles traveled, less fuel used, and CO2 reduction in total tons transported per year. Along with C02 reductions, SmartWay tools assist fleets in reducing NOx and particulate matter.

Offering customers compressed natural gas Freightliner Cascadia semi-tractors has been part of Penske’s sustainability initiatives, Cullen said. Penske Truck Rental has 85 compressed natural gas (CNG) Freightliner Cascadia semi-tractors available for commercial rental use in select markets. Penske works with customers to explore the environmental and economic benefits of going with CNG-powered trucks. There are challenges of going with these trucks – CNG trucks have less range than diesel-powered trucks and the tanks do take extra space; Penske works with customers to see when it makes sense to go with CNG. There is the potential to break even or to save two-to-three cents per mile; there’s been a lot of interest in these alternative fuel vehicles by food service, linen, and dry cleaning fleets, Cullen said.

During ACT Expo, Penske Truck Leasing also announced that it has been awarded grants totaling $525,000 through the South Coast Air Quality Management District’s Mobile Source Air Pollution Reduction Review Committee (MSRC) in Diamond Bar, Calif. Seven Penske facilities in Southern California have been awarded $75,000 grants to modify the facilities to provide maintenance services on trucks with natural gas-powered engines. “These facility retrofits will enable us to better serve our truck and fleet customers in the region and support their sustainability goals now and in the future,” said Jennifer Sockel, senior vice president of administration and facilities for Penske Truck Leasing.

These California grants are assisting Penske in working with customers on reaching their sustainability goals, Sockel said. CNG retrofits can become expensive; Penske works with customers on implementing options such as aggregate use and consolidating facilities, or trial use with a small percentage of the fleet. Staff training is also offered by Penske for maintenance of these engines, and for working safely on the vehicles. Working on CNG trucks is quite different than the diesel trucks they’re used to servicing, so training is needed by maintenance staff.

Penske has also received a grant from the Pennsylvania Department of Environmental Protection for the purchase of 23 CNG vehicles. The Natural Gas Vehicle Program in Penske’s home state of Pennsylvania is helping to support development of a new CNG fueling infrastructure, Cullen said. Penske is working with customers on exploring options in CNG trucks and fueling, such as analyzing dynamic roadway routes. Pennsylvania is encouraging fleets to deploy CNG trucks in counties with poor air quality. Customers are now looking at when it makes sense to go with CNG, Cullen said.

Big Picture: Nissan Leaf leading pack in plug-in sales, Zipcar offers one-way trip with guaranteed parking

Nissan Leaf sales successThe Nissan Leaf continues to lead the plug-in electric vehicle space, selling 2,088 units in the US during April – compared to the Toyota Prius Plug-in bringing in 1,741, the Chevrolet Volt selling 1,548, and Tesla selling about 1,400 of its Model S units. While Leaf sales were down nearly 17% from March, they were up nearly 8% over April 2013 and were one-third higher than that same four month period during 2013. The previous neck-and-neck race between the Leaf and Volt appears to be going Nissan’s way. Volt sales for the first four months of 2014 are down about 7% from that same time period in 2013. Toyota is seeing different results in the plug-in hybrid segment – its 2014 Prius Plug-in sales figures are up 70.6% over the first four months of 2013.

Toyota’s hybrids were down in sales from March, but still accounted for four of the top five in April sales figures. The Toyota Camry Hybrid was up 20.2% in sales over April 2013 and the Prius C was up 2.4% over that same time period. The Hyundai Sonata Hybrid saw the largest sale gain among top-selling hybrid models last month; at 2,055 units sold in April that was 42% over a year ago. As for clean diesel passenger cars, the Volkswagen Jetta lead the pack – 4,355 units sold in April, up 7.5% over March and 37.9% over April 2013.

And in other clean transportation news…….

  • Here’s a correction to the news item last week on ClipperCreek co-founder and former President Dave Packard taking on a new job with ChargePoint. Packard is now running ChargePoint’s utilities business development. He will not be leading ChargePoint as a whole, which was incorrectly reported last week.
  • Zipcar customers can simplify the driving experience even more with the new ONE>WAY car-sharing service. Zipcar drivers can access the 2015 Honda Fit for one-way travel with a guaranteed parking spot at the end. Throughout several cities and at certain airport locations, Zipcar users get to have the carsharing experience along a guaranteed parking spot at the end of it. (You can also sign-up for Zipcar and get $25 in free driving.)
  • Tesla Motors will soon be naming at least two US states for its upcoming “gigafactory” battery manufacturing plant. Tesla is getting ready to product lithium ion battery packs that may coincide with the launch of its first affordable mass-market electric car.
  • Electric Car Guest Drive, a California-based initiative, is offering consumers an opportunity to get behind the wheel and experience driving and electric vehicle. Events are being hosted throughout May in 12 California cities. Details can be found on its website. It’s been set up by a car club called EV Quorum. EV owners are offering others a chance to try out just about any EV you can think of – and it’s much more than the typical driving experience you’ll find at dealerships.
  • Schneider Electric and ChargePoint yesterday announced a collaboration to unveil Schneider Electric’s new EVlink™ cloud connected charging stations with the ChargePoint network. It includes hardware, software, ChargePoint connectivity and advanced services such as installation, deployment planning, project management, and ongoing maintenance. The collaboration will serve host station owners and electric vehicle drivers. “With this partnership, Schneider Electric makes it easier for EV drivers and station owners to leverage ChargePoint, the world’s largest and most open EV charging network,” according to the press release.
  • If you’re looking for a domestically grown plant offering environmental and economic benefits, how about hemp? Twenty-three states have now adopted supportive hemp legislation and it’s becoming well understood that it contains little to no THC like its same-species cousin marijuana. Some of the benefits include:  a 2009 University of Connecticut study found that hemp seed oil made a viable and attractive feedstock for producing biodiesel. Lotus has practiced using hemp in its composite body panels and spoiler since 2008, leading to many automakers switching to hemp composites from plastic for door panels and other components. Environmentalists appreciate that hemp absorbs CO2 while it grows through natural photosynthesis; and economists like that fact that hemp imports are declining and that the US has a strong change of creating domestic jobs and financial gains – Canada’s hemp industry is expected to bring in a billion dollars in earnings this year.
  • The 2014 Mercedes-Benz B-Class Electric Drive is set to show up this summer at US showrooms. It’s powered by a Tesla Motors-developed electric motor and a 28-kilowatt-hour lithium-ion battery pack. It starts with a base price of $41,450.
  • Volvo and Google are taking the self-driving car to the next phase – city street driving. “Drive Me” has begun testing in 100 cars on the streets of Volvo’s home base in Gothenburg, Sweden. That follows several years of test drives on freeways by Google.
  • IBM has made a revolutionary claim – that it can create “an affordable photovoltaic system that can concentrate solar radiation 2,000 times.” IBM is working with other researchers on a High Concentration PhotoVoltaic Thermal system that can convert 80% of incoming solar radiation into useful energy.
  • The US Supreme Court has overturned a lower court ruling that brings back the US Environmental Protection Agency’s Cross-State Air Pollution Rule; it’s a regulatory structure in 28 eastern US states that requires states to cut emissions that cause downwind states to exceed the EPA’s air quality standards. It’s considered a landmark win for the Obama administration and public health advocates. The program had been stopped in August 2012 by a federal appeals court in a case initiated by utilities and several states. That Supreme Court ruling happened right before President Obama’s long-awaited climate change report, which will be released today; so, it’s a very interesting time for federal environmental policy.