Alternative fuel vehicles Archives

Monsanto beats BP as “Most Evil Corporation” and adds Climate Change to its list along with GMOs

Agribusiness giant Monsanto has become a very telling symbol of the world we live in today – developing scientific formulas and technologies with huge moral implications and baffling complexities; behind-the-scenes political and economic power; brand identity without human personality; and becoming the enemy that we seem to need. Thinking about Monsanto can push buttons that apply to alternative fuels and advanced technology vehicles – potentially creating more problems than the solutions they were intended to deliver. Here are some points to consider….

This summer, results of a survey came out taken by NaturalNews that placed Monsanto far into first place as the “most evil company” at 51% of respondents. That was followed by the Federal Reserve at 20% (think Occupy Wall Street); British Petroleum at 9% (think Deepwater Horizon oil spill); Haliburton at 5% (think war in Iraq); and 3% chose McDonald’s (think “Super Size Me”). BP was definitely the villain for a long period of time after the gulf spill in April 2010, much like Exxon was after the 1989 Alaska oil spill.
Genetically Modified Organisms (GMO) has been the ominous issue for a few years now with Monsanto. Many people saw the film “Food Inc.” that devoted a large portion of the movie to uncovering the role Monsanto has been playing in pushing GMO. Genetically modified seeds end up in a lot of the processed food we eat through high fructose corn syrup; and most of the produce in supermarkets is now genetically modified – though Monsanto doesn’t control all of it. GMO is said to have started years ago to deal with insect infestations destroying cornfields and other crops, and eventually became the norm with Monsanto pulling strings in many state and federal lawsuits and legislative actions. Monsanto and other agribusiness giants defeated GMO product labels in several states last November that were put on the ballot to inform the public about what’s in the food they’re eating. Some of these anti-GMO advocacy groups talk about studies being done on the harmful health implications of GMO, but nothing definitive and official has really come out on it yet.
Monsanto looked like a real villain last spring when the US Agriculture Department had initially adopted the company’s requested loophole giving GMOs a lot of freedom and little regulation – called the Farmer Assurance Protection and also dubbed the “Monsanto Protection Act.” Many people were deeply disappointed with President Obama after hearing about it – thinking that an evil giant organization had corrupted a once admirable presidency. As of yesterday, that legislative rider is no longer effective due to the budgetary battle that’s still persisting in Washington with the employee furlough. There’s been a gap between the House and Senate version that will need to get sorted out, with the Senate wanting to delete the Monsanto provision.
Monsanto just acquired the Climate Corporation for $930 million. The acquired company works with data analytics on weather patterns and predictions to help farmers adapt to climate change. Weather monitoring, data modeling, and weather simulations are provided on how predicted weather conditions will affect crops. Famers are given technology tools to better manage their risks. Farmers can dig into the data on their computers and mobile devices that can be whittled down to their individual fields. Monsanto has been expanding its offerings and is moving into data services for agribusiness. Climate Corporation had previously attracted some big names into its list of financial backers including Khosla and Google Ventures.
There are some analysts who have deep concerns about the acquisition but are not getting any real attention in media coverage. They’ve expressed concerns over the solar radiation management (SRM, which controls sunlight before it reaches the earth) and geo-engineering (artificial modifications of the planet’s climate systems through SRM and Carbon Dioxide Removal) that Climate Corporation uses. These are quite complex issue and it’s not clear to non-scientists what’s going on behind the scenes with the merger and if these mysterious technologies are actually positive or negative.
Overseas markets are leery of GMO and tend to place restrictions on imports from US agribusiness. There was also a report back in May from watchdog group Food & Water Watch that accuses the US State Department of working with Monsanto and other GMO seed companies to push biotech crops overseas and expand the US market’s reach. The concern was that overseas farmers would be forced to buy genetically modified seeds and agrichemicals (as has happened in the US market). Last month, the US Department of Agriculture began evaluating whether or not to take action in the case of a Washington state farmer whose alfalfa crop was contaminated with a genetically modified trait that some export customers will not accept. Federal agriculture officials notified the USDA’s Animal and Plant Health Inspection Service that they had confirmed a “low-level” presence of a genetically engineered trait in what the farmer thought was a non-GMO crop. The trait was developed by Monsanto Co. to make plants able to tolerate treatments of Monsanto’s high sales-volume Roundup weedkiller.
Sustainability and cleantech publications Environmental Leader and GreenBiz offer mixed messages on Monsanto. There’s coverage of GMO disputes but it’s more business news than ethical warning. Monsanto’s fight with farmers, consumers groups and NGOs was mentioned as an example of corporations having their public image effectively assaulted. The writer says that the company was brought down by what these activists have been up to, but Monsanto appears to be alive and well. Its image has been assaulted but its stock price and business deals are booming. Another article listed Monsanto as one of the members of the Sustainability Consortium, which is an organization that creates sustainability standards for consumer products. So, its credentials in sustainability are a mixed bag, depending on what’s being written about.
The implications of Monsanto’s power are massive – beyond nearly everyone’s ability to clearly process and perceive. These dilemmas persist in every field. Every one of the green transportation fuels and technologies faces a stack of problems – some of them ethical and many of them in proving their value that’s needed to earn financial backing and stakeholder support. The biofuels community tends to stay in united support for all the renewable fuels coming out, though corn ethanol is a very tough fuel to support. Electric vehicles find their share of cynics making the case that these vehicles are in no way improving the environment. Natural gas faces the fracking issue; hydrogen fuel cell vehicles are quite expensive and won’t have the long-awaited “hydrogen highway” of fueling stations for several years, if ever at all. They all face the clichés and concerns of a new technology creating more problems than the solution it was intended to create.
Monsanto is the great unknown, the evil empire. It seems to be connected to the American tradition of looking for conspiracy theory. Monsanto has market value at about $55 billion on the stock market and has deep reserves – its ability to lobby and disseminate its marketing-communications message is quite strong. We don’t really know the full implications of GMO – and DNA engineering is pervasive in much of our food and medicine. There may be some benefits that we can’t yet see – and the same goes for its Climate Corporation acquisition and what it might offer for predicting and preparing for climate change. Still, there’s always the horrific vision of genetic modifications causing monster-like mutations or children having breathing and circulation problems that appear unexplainable and untreatable. GMO and Monsanto’s Climate Investment investment are packed with the unknown – we’ll have to wait and see how it turns out.

Six bills signed in California that should help deploy EVs and charging

California Governor Jerry Brown celebrated National Plug In Day his own way – by signing six bills promoting electric vehicles and alternative technologies in the state. There was some very good news for those building the charging infrastructure – one of them being Senate Bill 454 (SB 454), which adopts the Electric Vehicle Charging Stations Open Access Act. This means that the architecture is open for charging infrastructure deployment. While companies like ChargePoint have been pushing hard for proprietary networks to be the standard, California is adopting an open system for electric vehicle charging payment. Drivers will be able to pull up at any charging station and use their credit card to fuel their car; they’ll no longer be required to search for the limited number of charging stations that they have an account with.

Assembly Bill 1092 (AB 1092) addresses another tough issue for expanding the charging infrastructure – multi-family dwelling and non-residential development. The California Building Standards Commission and the Department of Housing and Community Developments are now required to develop standards for installing the charging stations.

Fans of the carpool lane stickers were probably thrilled to hear that the High-Occupancy Vehicle (HOV) extends access for low-emission and zero-emission vehicles until 2019; AB 266 and SB 286 extend white HOV lane stickers for battery electric vehicles and the green stickers for plug-in hybrids, respectively.

AB 8 will be funding $2 billion in green initiatives such as Alternative and Renewable Fuel and Vehicle Technology Program. It offers incentives for scrapping the dirtiest cars – along with $20 million to fund 100 hydrogen fueling stations. Fleets are being offered incentives through SB 359 that includes $20 million for the Clean Vehicle Rebate Project; $10 million for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project; $10 million for the Heavy-Duty Vehicle Air Quality Loan Program; and $8 million for the Enhanced Fleet Modernization Program.

Some of these signed bills appear to be influenced by the state’s ambitious target of having 15.4% of new vehicles sold in the state to be zero emission (battery electric and hydrogen fuel cell) or plug-in hybrid vehicles by 2025. The state thinks that will bring more than 1.4 million zero emission and plug-in hybrid vehicles onto California roads by that year. A study by the state’s Air Resources Board is even more optimistic than that – the agency expects nearly 100% of all light-duty passenger vehicles sold in the state to be zero-emission vehicles by 2040.

Big Picture: GM takes on Tesla, How to market green vehicles to nerds

GM CEO Dan Akerson’s strategy to wipe Tesla Motors off the map
There’s more information coming out on General Motors’ agenda taking on competitor Tesla Motors. It seems to be based on the historic trend of a giant automaker wiping out a small startup. GM is willing to become the loss leader, and has the deep pockets to make up for it long term. GM CEO Dan Akerson told The Detroit News: “We’ll sell more (Chevrolet) Volts and lose less money on the Volts than they’ll lose on the (Tesla) Model S.” GM’s executive management wasn’t happy with the findings from a market study conducted during the summer and led by GM vice chairman Steve Girsky. Akerson is also skeptical that Americans will ever buy plug-in vehicles in large numbers. (Detroit News Reporter David Shepardson wrote that Tesla’s profits came entirely from California’s zero-emission vehicle credits and other credits – though many would disagree with that statement.) GM’s strategy to knock out Tesla seems to be based on a three-fold plan: 1. Flood the market with cheaper Chevy Volts. 2. Launch and flood more with a soon-to-be released $30,000 200-mile range electric car. 3. Go head-to-head against the Model S with the extended range, and comparably priced, Cadillac ELR. “But I do think when the (Cadillac) ELR comes out late this year, early next — it’s certainly in the same postal code as Tesla, but now we’re going to move up,” Akerson said. “It’s not going to be a mass-produced car.”

Toyota going very direct in its marketing of RAV4 EV
Marketing strategies used by automakers are changing at a consistently fast pace these days as unexpected trends and opportunities continue popping up; for example, what was initially a DVD rental company – Netflix – now produces and promotes its own TV series. Toyota has one of its own – marketing the all-electric RAV4 to go after tech-savvy early adopters who subscribe to DirecTV’s satellite service in Los Angeles, San Francisco, and San Diego. The TV ads are ending up on the TV screens of this micro-niche audience through what’s called dynamic advertising. Marketing data firms provide DirecTV with consumer information from credit cards and other sources to identify the most likely prospects that would have interest in the electric RAV4. These are consumers likely to buy new gadgets.

Already maxed out selling to early adopters? Don’t forget about nerds
Check out my post on Autoblog Green covering the launch of RideNerd.com. This could be the ultimate car shopping site for those consumers demanding detailed information on new car choices based on fuel economy, smog and greenhouse gas emissions, and cost of ownership. Nerds are hardcore researchers and analysts – and do comparison shopping to the nth degree.
Here are a few other points I would make about this unofficial market segment that could be of interest to those marketing new vehicles….

They’ve loved gaming from an early age – Dungeons and Dragons, Playstation, X-Box, and Nintendo.
They tend to have expertise in what’s being displayed at Comic-Con.
They tend to have an odd sense of humor – enjoying gallows humor, social satire, and bizarre movie scenes such as the Knights of the Ni demanding shrubbery in “Monty Python and the Holy Grail.”
They’re generally strong in mathematics and science during their school years.
Being right about something is a very big deal; debates go over well unless the nerd can be proven wrong – then it doesn’t go so well.

If you’re wondering how I’ve become so well informed about the lifestyle habits of nerds…. Let’s just say I only performed above average in math and science classes, but I’m good at asking engineers (aka “engi-nerds”) and scientists to explain, in layman’s terms, the nuts and bolts. I’ve never been too interested in gaming and haven’t purchased graphic novel superhero biographies. I do watch the Monty Python movie whenever I get a chance.

Tesla-Mania: Tweeting for engineering staff to deliver self-driving cars
Of course Tesla Motors CEO Elon Musk couldn’t let self-driving cars slip away as major automakers have announced plans to roll out autonomous cars by 2020. Musk and his company have covered it all – Tesla’s own branded version of fast chargers, battery swapping, the fastest commuter rail line concept ever conceived, customized lease packages, fashionable retail stores and service centers, Model S road trips, and chumming with loyal Twitter followers. Musk recently tweeted a “help wanted” ad on the social media site. He’s calling it an “autopilot system” for the Model S. Engineers who’d like work on that project for Tesla should contact the company at autopilot@teslamotors.com.

Car sharing is here to stay, and growing to large numbers
Navigant Research thinks car sharing is set to fly – from the current number of 2.3 million subscribing members around the world to more than 12 million by the end of the decade. Global revenue is expected to be growing by a large volume – from $1 billion this year to $6.2 billion in 2020. Automakers and car rental companies have jumped in the pool, taking on Zipcar (owned by Avis) and a few other upstart brands.

Chesapeake leaves natural gas vehicle market
Chesapeake Energy Corp. has eliminated its seven-member natural gas vehicle team, which had been responsible for part of the Oklahoma City-based oil and natural gas company’s efforts to develop additional markets for gas usage. Chesapeake has played an important role in adoption of NGVs and development of the infrastructure, and these vehicles play a major role in its own fleet, as Tim Denny, Vice President of Administration, explains in this video. Rich Kolodziej, president of Natural Gas Vehicles for America, said Chesapeake has been an important player, but other companies and organizations have taken on that role now.

Ford employees gaining access to workplace charging stations
Ford Motor Co. is joining ranks with what a few competitors have been doing – installing electric vehicle charging stations – at more than 50 of its US and Canadian offices and manufacturing plants. It’s being done to offer employees a perk – making workplace charging available. The automakers will start installing its 200 chargers in November and will continue rolling them out next year. Employees will be able to charge free for the first four hours on any Ford vehicle.

My day at AltCar Expo and thoughts on what it takes to create a strong green vehicle event

I had mixed feelings about once again attending AltCar Expo at the Santa Monica Civic Auditorium and its outside parking lot. I’ve been attending since 2009 (it started in 2006 and just completed its eight year), and it’s always been a must-attend conference – the most comprehensive ride and drive out there; excellent speaker panels with veteran experts in the field (government agencies, university research centers, automakers, infrastructure partners, consultants); display booths from automakers and organizations; and usually something very distinct you won’t forget (“Oh, I didn’t know the ports were using all-electric drayage trucks.”)

I’ve also had concerns about it. If you do a news search on AltCar Expo, you’ll see very little coverage of this significant conference. The attendance is also pretty light. I would think there would be a lot more people showing up (for example, on the fleet-focused sessions on Friday) in a city that’s considered to be a bellwether for alternative fuel vehicles and EV charging stations – not to mention that it’s one of the trendiest, wealthiest cities on the west coast. There are a lot of residents who own electric vehicles and support the basic premises behind alternative fuel vehicles – not to mention that Southern California is usually one of the leading markets where automakers first deliver green vehicles.

As for this year’s AltCar Expo, a few moments really stood out – Terry Tamminen – former head of California’s EPA during the Schwarzenegger administration when AB 32 and the Low Carbon Fuel Standard were being implemented – gave a clear picture of what’s happening in policy; Jon Coleman, fleet sustainability and technology manager for Ford’s North American Fleet, Lease and Remarketing Operations, had some very direct comments to make about the value proposition that needs to be fulfilled for EV charging and CNG refueling stations to go beyond symbolic to practical; Genze is launching an electric motorbike in the first quarter of next year that should stand out as utilitarian and hip to Millennials; and the Cal State Los Angeles EcoCAR 2 team was on hand (and so far is in second place among 15 universities in the US and Canada in this EPA and General Motors sponsored competition), displaying its converted Chevy Malibu plug-in hybrid flex fuel version. It was interesting to hear how strong sales have been since the recent introduction of Ford’s new F-150 natural gas pickup (the first half-ton CNG-powered pickup to come to market). I’ve always looked forward to attending AltCar Expo, and have always enjoyed the experience and learned a great deal about this important, new industry. I’ve just wanted to see a lot more people show up and have their own experiences with the technology.

It’s not the only green vehicle conference that faces big challenges increasing attendance, sponsorships, and other revenue to cover costs and pay for promotional campaigns – and playing a much-needed role helping to set a foundation for business growth. The Green Fleet Conference & Expo is coming up, put on by Bobit Business Media, publisher of the flagship Automotive Fleet; but there are only a limited number of people likely to attend even though it’s an excellent conference. ACT Expo is the most successful, highest attended green fleet-focused conference, and has successfully filled the void that opened up when the Alternative Fuel Vehicle Institute annual conference ended in 2010. Plug-In 2013 is coming up soon in San Diego and has been influential; the Electric Drive Transportation Association annual conference has been essential for EV stakeholders for several years; and NGV America’s annual conference is the flagship natural gas vehicle event. Still, attendance is limited at all of them, and their influence in media coverage, government policies, public opinion, and vehicle buyer decisions is slim. For those wondering what it’s going to take for green vehicle sales to increase along with all the positive environmental, energy, and economic impacts that many people are quite articulate about, I would say that successful conferences, trade shows, and vehicle displays are the meat and potatoes that need to go on tables.

Here are my thoughts on what could raise the numbers….

Get connected with major car shows. What about moving AltCar Expo in front of the LA Auto Show? Sure, it might be competing with the Green Car of the Year award, but it’s likely that efforts could be combined – such as continuing to have the ride and drive at the Santa Monica Civic Auditorium parking space; but what about having the speaker sessions at the LA convention center during the media days or during a dedicated event promoted by the auto show? There’s going to be a very interesting connected car event at LA Auto Show in November – maybe it could have been fused together as a broader topic? Smart transportation?
Coordinate the event with trade groups, research centers, and exhibitors. Last year, it was very productive to attend a pre-conference hosted by the Luskin Center for Innovation prior to the global EVS26 conference (put on by Electric Drive Transportation Association) at the LA convention center. It was fascinating information offered during presentations, but to a very limited audience. A much larger number attended EVS26, but once again, it was pale in comparison to many other events at that conference center. Organizations and businesses want to make gains in marketing exposure, public education, and through supporting technologies and sometimes controversial issues. I would think they should be included in the event planning process way ahead of time – and that could be one to two years out.
Get connected with fleet managers and Clean Cities coordinators. NAFA is doing a lot of it now through its relationship with Calstart and US Dept. of Energy’s Clean Cities leadership. But fleet managers and Clean Cities coordinators are down in the trenches and bring a lot of experience and expertise to the table. Put them on your conference planning committees.
Get celebrities to show up. Certainly, it would be tough to get big names to be placed on conference brochures – I doubt Elon Musk would be willing to be a keynote speaker; Neil Young and Willy Nelson support biofuels but are unlikely to put on a concert; T. Boone Pickens might show up and speak, but is likely to charge a hefty speaker fee; Tom Hanks was proud to drive an EV1 but would be very hard to get ahold of unless you’re a Hollywood insider. Ed Begley, Jr., is passionate about electric vehicles but might not be willing to speak at a conference in Chicago. Still, there are a lot of interesting and somewhat famous people out there who advocate and drive green vehicles – and could be convinced to come support the cause. Celebrities could include politicians, newscasters, experts (such as authors of influential books in the field), academics, actors, singers/musicians, athletes, and leaders of advocacy organizations. They might not be widely known, but could be icons to a sophisticated audience. And let’s be honest about it – we live in America, and celebrities are as big it gets. You might find that superficial, but just about every cause I can think of utilizes celebrities in their promotional campaigns whenever they can, and it tends to grab attention and conversation.
Location, location, location – and timing. Some markets usually deliver higher attendance than others, and it’s probably best to not have these types of conferences scheduled too close together.
Find sponsors willing to monetize the event. They’ll want a lot in return, but how unreasonable would that really be? All of the major conferences have a handful of large backers and sometimes a long list of companies willing to pay their dues to get on the list and perhaps exhibit at booths and host gala events – product unveilings, award shows, keynote speakers, etc.
Work together with organizations looking for such an event. The automotive and transportation sectors are chock full of organizations striving to better serve their memberships. Many are chomping at the bit to host an annual conference that elevates their importance and influence and brings together key stakeholders for valuable networking and education activities.
Make the ride and drive and vehicle displays distinct. One measure of an influential conference is the number of unveilings that happen during press conferences. There is a difference between what’s referred to by the conference planners as a product introduction and the actual launch of something. And if there’s no major unveilings to be announced, there are other ways to go – introducing a new mobile app; an upgrade to a vehicle’s features and color options; engine and powertrain enhancements; and infrastructure launches. If it’s been displayed at five conferences already, don’t claim it to be an introduction. As for ride and drives, there are ways to make it unique for that location – and user friendly for people standing in line waiting for their turn. Automakers sometimes offer incentives for car shoppers to earn when they show up at the ride and drive and go buy one of the new cars soon after.
Get lots of media coverage before, during, and after. Some conferences are good at getting media sponsors and offering perks for them to show up and create valuable content in articles, videos, podcasts/radio, and photo galleries. Targeted trade, professional, and special interest publications are critical to draw and reach important niches, but don’t forget about mainstream media. Getting reporters from Bloomberg, Reuters, Wall Street Journal, major media from the hosting city, and business publications, is a given for the big auto shows. Getting them to show up at niche conferences is a tough sell, but it becomes more newsworthy if a governor or a championship-game-winning coach are scheduled to drive up in their plug-in cars (or hydrogen fuel cell vehicle, natural gas vehicle, propane-powered truck, biodiesel bus, or hybrid vehicle) and say great things about the cause. Blogs and social media will also play a vital role in getting the word out.
Hold the speaker panels somewhere nearby that upgrade the professionalism and appeal of the event – such as at a nearby hotel where business conferences are popular these days.

Automakers are willing to send newly launched vehicles to car shows all over the world. They’re spending lots of money to reach eager consumers who love attending annual car shows and conferences. Green vehicles are unlikely to see anything of this size and scope, but the sales numbers are slowly inching up; and at some point, we’re going to see millions of them on the roads. To keep these vehicles running safely and efficiently, it will take a lot of people skilled and experienced in the field to be networking with and educating each other at significant industry conferences.

Solid used vehicle segment to reach: green cars

Looking for a profitable used vehicle market segment to reach? How about green cars – hybrids, electric vehicles, and fuel efficient vehicles? Franchised and independent dealers are seeing a lot of used inventory on the market today, and some of it, especially trucks, is seeing strong pricing. What we’re seeing though, such as in Manheim’s latest report, is that dealers are doing well by selling lots of used vehicle the right way. Prices might be down on small, fuel efficient cars and hybrids, but all things considered, they’re not bad – and selling a lot of them can be profitable.

There are two interesting announcements from last week that speak to the issue – one is that Nissan has added its Leaf electric car to its certified pre-owned vehicle list; and the other is an online tool for used cars rating fuel efficiency and emissions from the US Dept. of Energy (DOE) and Environmental Protection Agency (EPA).

Certified Leafs will get an extended warranty of seven years or 100,000 miles on both the electric system and powertrain. To be considered, the used Leaf must be less than five years old, have fewer than 60,000 miles, and have at least nine of 12 bars of battery capacity remaining on the gauge. It also needs to have a clean Carfax history report, and pass an inspection where 167 separate items are checked. Two warranties on the battery pack will remain in place – eight years or 100,000 miles, and five years or 60,000 miles, with a few performance indicators being checked on each warranty. The new certified program adds to the protections.

For the DOE and EPA offering, dealers and consumers can now place a used car label based on fuel economy and emissions performance. It’s a free online tool allowing for creation of a consumer-friendly label that lists gas mileage and CO2 emissions levels of used vehicles sold in the US since 1984.

Other indicators that used green cars is a viable market segment to reach include eBay’s Green Driving (which they say gets a lot of traffic); NADA Used Car Guide’s Plug-in Electric Vehicles: Market Analysis and Used Price Forecast; and ALG’s Alternative Powertrain Perceived Quality Study.

Frankfurt Motor Show looks electrified but how real is it?

The German auto show is going full steam ahead and has been getting plentiful media coverage describing electrified vehicles as the central theme. There certainly have been a lot of displays, but the typical question arises – how much of this will really reach production lines, what will the volume look like, and when will they show up at dealer lots? Here’s a few highlights from last week…

Volkswagen took center stage – claiming to have 40 new hybrids, plug-in hybrids, and battery electric vehicles in the works to roll out by 2018; the company plans to roll out 14 vehicles with alternative powertrains by next year. Coming soon will be electrified versions of the Up! city car, Golf compact, Audi A3 Sportback plug-in hybrid, and a battery-assisted Porsche 918 supercar. Volkswagen CEO Martin Winterkorn says that his company will become the world’s largest producer of battery-based vehicles in the world.

VW also said that it’s considering rolling out natural gas-powered cars in the US. The automaker is urging the Environmental Protection Agency to do more to get a broader natural gas refueling network set up across the country.

Land Rover will be offering a diesel plug-in hybrid Range Rover SUV. It’s expected to pair a 288 horsepower turbodiesel engine with a 47 hp electric motor, and will get 44 miles per gallon.

BMW officially unveiled its i8 plug-in hybrid, which gets 362 hp that comes from a three-cylinder engine and an electric motor. BMW is also showing a Concept X5 eDrive at the show – a plug-in hybrid based on a four-cylinder engine.

Climate Change and transportation policies: Are skeptics right that it’s really a lost cause?

Stakeholders striving to bring green transportation to the mainstream tend to articulate one, two, or all three of the following reasons for supporting their missions:

1. Petroleum: Reducing and eventually eliminating America’s (and Planet Earth’s) addiction to oil and all its negative implications on geopolitics and energy security, economic stability, and environmental issues.
2. Economics: A seismic shift has been in the works for years, long before the Great Recession, with globalization and adoption of new technologies driving change. As America sees several industries and jobs diminish or disappear, looking for new opportunities is a very good thing. Alternative fuels and vehicles offer the possibility of return on investments, OEM and infrastructure sales, good paying jobs, and sales tax revenue.
3. Emissions: On the regulatory front, along with sustainability policies being adopted by several corporations, green transportation tends to be primarily pushed forward to reduce tailpipe and carbon emissions. Air pollution and its health-hazard implications are there on the tailpipe smog side of the analysis, and for many organizations, climate change is the central issue.

I’ve recently heard persuasive arguments made that climate change is certainly occurring, but there’s very little humans can do about it. While reducing fossil fuel consumption and emissions is the clear path to reducing CO2 levels, it will only address one end of the scale; there are environmental forces – including what’s happening deep within our oceans – that are outside human-caused climate change and there’s very little we can do about it.

Whether these arguments have weight or not, it’s very important to stay current on what’s happening out there, as it will affect government and corporate transportation policies. So here’s the latest on the climate change debate….

The US Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA) just released a report stating that the scorching hot heat that hit the north central and northeast US during the summer of 2012 was impacted by man-made climate change. The report’s analyses found evidence of human-caused climate change in half of the 12 extreme weather and climate events analyzed from last year. It started with unusual warmth in the spring season of 2012. “Approximately 35 percent of the extreme warmth experienced in the eastern U.S. between March and May 2012 can be attributed to human-induced climate change,” NOAA said about one study in the report. From another study in the report, NOAA stated, “High temperatures, such as those experienced in the [north central and northeast] U.S. in [summer] 2012 are now likely to occur four times as frequently due to human-induced climate change.”

The California Air Resources Board has a legal battle to deal with that’s attempting to undercut the Low Carbon Fuel Standard Program, which came out of AB 32 when it was enacted in 2006. Oil and ethanol companies want to void the rule and claim that the fuel standard discriminates against crude oil and biofuels producers outside California. There are two lawsuits in the works. CARB lost the federal court case and is waiting to find out if the Ninth US Circuit Court of Appeals will hear the case. Ethanol producer Poet LLC has another case filed with the state court claiming CARB violated the California Environmental Quality Act (CEQA) when it adopted the standard. Poet claims the rule unfairly penalizes ethanol producers by counting their indirect carbon emissions.

National Geographic’s September cover story, “Rising Seas,” shows the Statue of Liberty waist high in seawater. The lead feature article starts out with three statistics – 136 large coastal cities are now at risk from sea-level rise; 40 million people are at risk in those cities; and there’s $3 trillion value of assets at risk. A fold-out map shows what the planet would look like if all the ice caps melted – the southeast US is underwater; California doesn’t break off and sink to the bottom of the ocean, but somehow its central agricultural region becomes a giant lake. The global map forecasts 5,000 years into the future when the sea level rises 216 feet, perhaps much faster if we add five trillion more tons of carbon to the atmosphere. The average earth temperature will be shooting up from the current 58 degrees Fahrenheit to 80 degrees. Most of magazine’s special section focuses on tactics for surviving flooding and other consequences that come out of disasters like last year’s Hurricane Sandy. In June, Mayor Michael Bloomberg outlined a $19.5 billion plan to defend New York City against rising seas. Tim Folger, author of the article does mention the role of human decisions impacting melting ice caps…. “Unless we change course dramatically in the coming years, our carbon emissions will create a world utterly different in its very geography from the one in which our species evolved,” Folger wrote in the summary. “No matter how much we reduce our greenhouse gas emissions, Foster (Gavin Foster, a geochemist at the University of Southampton in England) says we’re already locked in to at least several feet of sea-level rise, and perhaps several dozens of feet, as the planet slowly adjusts to the amount of carbon that’s in the atmosphere already.”

In June of this year, President Barack Obama came back to the issue of climate change, which he’d basically avoided during his reelection campaign last year. In June of this year, the White House published the “Climate Action Plan” and the president gave a speech that month on climate and energy. The theme of the transportation portion of the report digs into increasing fuel economy standards and developing and deploying advanced transportation technologies as the way to address climate change. The report does start out with a quote from the president’s reelection inaugural speech in January where he mentioned the overwhelming majority of scientists convinced that climate change is for real ….. “We will respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations. Some may still deny the overwhelming judgment of science, but none can avoid the devastating impact of raging fires and crippling drought and more powerful storms,” he said. Our moral obligation is to hand over sustainable energy sources to future generations, according to the president. Obama addressed the topic during the G20 summit, though the issue of what to do about Syria was much more important. Five Scandinavian nations (Denmark, Finland, Iceland, Norway, and Sweden) agreed with the president on the goals outlined in the Climate Action Plan.

Transportation produced 31% of total carbon emissions and 26% of greenhouse gas emissions (GHG) in the US during 2011, according to the US Environmental Protection Agency. Electricity, industry, residential and commercial, and other non-fossil combustion make up the rest of carbon dioxide (CO2) emissions in the EPA analysis. GHG and CO2 emissions go through ebbs and flows of interest and action by government entities, researchers, and businesses. The published B2B and consumer surveys make the issues look vulnerable to fluctuation on priority lists for elections, investments, purchase decisions, and lifestyle concerns. Climate change is not going away as a pressing issue – especially in the wake of natural disasters and weather catastrophes – but it’s probably best suited for success in league with petroleum and economic issues.

Big Picture: Nissan joins Tesla in selling ZEV credits, Volvo Trucks upping its green credentials, Toyota improving Prius performance

Here’s my take on top news stories of the week:

One of the gains made by selling plug-in electric vehicles in California is gaining zero emission vehicle (ZEV) credits and selling them to your competitors. Nissan Motor Co. now joins Tesla Motors in selling green-car credits. California requires large automakers to sell electric or other ZEVs in proportion to their market share in the state. Nissan has sold enough Leafs that it can sell its excess carbon credits to other automakers. The Tesla Model S can generate up to seven ZEV credits because of its range of as much as 300 miles per charge and the option of swapping its battery pack with a charged one (the company will open its first battery swap facility by year’s end). The Leaf earns three credits through the state program.
Volvo Trucks is upping its green credentials even more – Through its Climate-Smart City Distribution project, emissions from 400 distribution trucks were cut between 30% and 80% over three years. Volvo worked with several partners to improve the efficiency of distribution operations in Gothenburg, Sweden. Conventional diesel distribution trucks were replaced with vehicles using renewable fuels – biodiesel, biogas, and dimethyl ether (DME); hybrid technology; and methane-diesel fuel. Volvo and Mack Trucks are committed to bringing DME powered trucks to roads soon; earlier this year, Volvo unveiled plug-in hybrid buses as part of a field test.
Toyota is optimistic that its next generation Prius will get even better fuel economy and cost even less. Improvements will come through using lighter materials and significant advances in battery, electric motor, and gas engine technologies, the company said. Toyota thinks its miles per gallon rating on the hatchback Prius will gain from 50 mpg to near 55. It’s likely to come out in 2015. It next generation batteries will have higher energy density. For the Prius and other Toyota models, the automakers is working on a diverse set of batteries – lithium ion, nickel metal hydride, solid state, lithium air, and magnesium.
Electric Drive Transportation Association (EDTA) and its GoElectricDrive Foundation have a partnership with Green Sports Alliance dedicated to improve the environmental performance of sports teams and facilities. Since being founded in March 2011 by six professional teams and five venues, Green Sports Alliance now has over 170 professional and collegiate teams from 15 different sports leagues. Members include Anaheim Ducks, Baltimore Ravens, Boston Red Sox, LA Dodgers, Miami Marlins, New York Jets, and University of Texas Longhorns. EDTA and Green Sports Alliance will show organizations the benefits of integrating electric drive in their fleets, and giving fans a place to charge up their EVs while watching a ballgame, said Brian Wynne, president of EDTA.
The 2013 AltCar Fleet Conference and Expo will be put on by the City of Santa Monica on Sept. 20-21. It tends to offer the best green vehicle display and ride and drive with just about e everything you can think of available to check out. As for speakers at the Friday fleet conference, these will include Terry Tamminen, former secretary of the California Environmental Protection Agency; David Friedman, deputy administrator of the National Highway Transportation Safety Administration; JR DeShazo, director of the Luskin Center at UCLA; Randall Winston, special assistant to the executive secretary, office of Governor Edmund G. Brown, Jr.; Jon Coleman, fleet sustainability & technology manager for Ford Motor Co.; and Richard Battersby, Public Sector Fleet Manager of the Year, from East Bay Clean Cities. Vehicle debuts will include Southern California Gas Company’s west coast introduction of four new prototype consumer vehicles built to run on compressed natural gas and capable of using gasoline as backup.
CleanFUEL USA has just brought in Blair Poulsen as its director of sales; Poulsen brings more than 23 years of propane industry experience to the company. He was most recently regional sales and marketing director for Heritage Propane and AmeriGas Propane, and currently serves on the Nevada Board of Regulation of Liquefied Petroleum Gas. Poulsen will lead a team serving clients in propane refueling infrastructure and OEM vehicle technology, including Thomas Built Bus, Collins Bus, General Motors Corp., and Freightliner Custom Chassis Corp.
You think regenerative braking is pretty cool? How about a regenerative suspension? German automotive parts maker ZF says it’s bringing the first technology of its kind to the world. ZF Friedrichshafen AG has teamed up with Levant Power Corp. to product a system that works like regen braking, recapturing energy when the suspension gets put in motion. It would take away the large amount of energy needed by suspension systems and increase fuel economy.
Is your community burdened by dirty coal? How about converting over to cleaner natural gas? Navigant Research is hosting a webinar on Sept. 10 that will explore that topic. Utilities are shutting down a lot of aging coal-powered plants through 2020. There are costs and complexities involved in switching over to natural gas that will be discussed by panelists, including examples of plants that have gone through these conversions in recent years.
States like California are digging into the best financial models for reducing traffic congestion and repairing worn out roads. Vehicle Miles Traveled (VMT) taxes, gasoline tax increases, road tolls, increasing vehicle licensing and registration fees, transportation-focused sales tax, and infrastructure bonds – and all they pluses and minuses – are explored in an article that was just published in Westways. It’s a very tough issue that states are going through.
Reincarnated electric carmaker Detroit Electric will still be making its all-electric SP:01, only it won’t be happening in Detroit. Its Lotus-based sports car will be made in the Netherlands, and production will start in the fourth quarter of this year. The company was going to bring jobs to Detroit initially – 2,500 cars per years with a workforce of 100. Plans started being delayed in June, as the company said it couldn’t find the right manufacturing location in Wayne County, Mich., where Detroit is located.

Chrysler Group and NADA encouraging dealers to be energy efficient

Chrysler Group just recognized 30 of its dealers who’ve performed well through its second annual Dealer Environmentally Conscious Operations program. Dealers are saving money by adopting energy efficient practices and looking for ways to make the changes pay for themselves. One of the more interesting examples has been Westgate Chrysler Jeep Dodge Ram, based in Raleigh, N.C. Westgate installed 420 solar panels on its service department and sold the power to the region’s electric utility at a fixed rate. It’s reducing energy costs $1,800 to $3,000 per month, depending on the volume of sunshine that make it to the solar panels.

Chrysler Group is emphasizing two accomplishments its dealer network is reaching – significant contributions to the environment and creating a sustainable enterprise. There’s also the operating cost savings part – which will take a while depending on the incentives available to the dealer and the cost of having the solar panels installed or other building structure investments needed for improved energy efficiency. Dealers can access incentive programs in some states that lower the solar panel installation cost quite a bit; and can start up energy efficiency programs such as changing over to LED lighting fixtures. Chrysler looks at how its dealers are doing in energy efficiency, waste recycling, wastewater control, bulk oil containment, vehicle lift maintenance, and community relations program.

The Chrysler dealers are based in 21 states, with four of them being in Michigan and four in Florida; California, North Carolina, and Texas each have two dealers recognized this year. They were selected based on data from dealership online surveys and in-dealership notes.

As for vehicles, Chrysler Group hasn’t done much at all in the green space. It is testing out some plug-in hybrid Ram pickups and a few other concept models. Parent company Fiat has introduced the Fiat 500e electric car to the US market; some say it’s a “compliance car” in California, but it does seem to be getting a good deal of interest from car shoppers.

National Automobile Dealers Association is in the process of having dealer members provide data in a benchmarking study through the US Environmental Protection Agency’s Energy Star program. They’re asking dealers to take a survey that will give EPA a benchmark to compare energy usage of dealers across the country, and to allow for certification of those dealers that perform well. Dealers are sharing their utility bills, total square footage, and different types of equipment being used at the dealership.

The NADA and EPA relationship goes back to 2007 in what’s called the Energy Ally program that was designed to help dealers reduce their energy consumption. Dealers are being educated on energy reduction and cost saving opportunities and strategies. KPA, a dealer services and internet marketing provider, now has an alliance with NADA through Energy Ally. KPA and other companies are helping NADA to benchmark at least 500 dealers on their energy usage.

WEX whitepaper educates fleets on alternative fuel vehicles as demand increases

While alternative fuel vehicles started noticeably showing up in fleets in the early 1990s, they haven’ t become significant in numbers or budgets until recently. Now fleets are acquiring all types of green vehicles, and that includes government fleets, corporate, service and delivery, utility, trucking, car rental, and car sharing companies. They’re also continuing to buy the most fuel efficient vehicles on the market, but alternative fuels have more importance now than 20 years ago when Clean Cities started up.

WEX Inc., formerly known as Wright Express, just sponsored a new whitepaper on the topic – “Going Green, Saving Green: A Fleet Manager’s Guide to Alternative Fuels Best Practices.” WEX is the leader in fleet fueling payment cards systems, and is now bringing that over to electric vehicle charging and natural gas refueling stations. It’s interesting to see a company like WEX release this type of whitepaper – the importance of alternative fuel vehicles has gained enough presence to inspire a whitepaper. It’s reminiscent of NADA Used Car Guide recently releasing a special report on resale value trends for the Nissan Leaf and Chevy Volt – after having ignored the issue for quite a long time.

The WEX paper provides fleets with best practices for cost-effective implementation of alternative fuels in a fleet. While media primarily focus on consumer behavior with green vehicles, this paper asserts that fleets are much better positioned to use alternative fuels – their choices are premeditated, unlike consumers’. They’re usually traveling along predetermined routes and can stop for recharging and refueling at given points. That makes it much more viable to plan strategically and contain costs. Here are five recommended tips on making it work….

#1: Know the station coverage in your area.
US government agencies have made significant infrastructure investments, bringing up the number to 11,800 stations – of which about 6,000 are charging stations. About 82% of alternative fueling sites are accessible to the public. The Dept. of Energy offers a comprehensive directory of charging/fueling sites around the country.

#2: Compare historical fuel costs.
Starting in 2008, the commonly used fleet industry terminology for spiking gasoline prices was “fuel price volatility.” It was quite volatile that year, which shot up fuel costs for fleets and hurt vehicle financing and remarketing programs. Switching over to alternative fuels can bring price stability to fleets, though they do have to build in the conversion costs and lifecycle costs of choosing hybrids and EVs over fuel efficient gasoline and diesel engine vehicles.

#3. Think in terms of total ownership cost.
While green vehicles tend to sell for a premium price over typical internal combustion engine vehicles, total cost of ownership can be very appealing – especially for fleets putting a lot of mileage on their vehicles. Fleets tend to study four cost categories: capital costs; maintenance costs; end of life recycling and replacement costs; and indirect costs.

#4: Find and use tax credits wherever you can.
It goes without saying that incentives like federal tax credits and state rebates are very attractive for fleets – and there are a lot of these offerings to choose from now. Calstart encourages fleets to stay informed on state voucher programs to reduce ownership costs. The DOE offers a useful site to find out about the latest federal and state programs. Keep in mind that you need to have good fleet reporting mechanisms in place to cash into these incentives.

#5. Think holistically about fleet fuel costs.
This is where experience will come to play. It depends very much on the regional location of the fleet – in some areas like California, the infrastructure is more solidly in place for natural gas fueling and EV recharging than in most other states. A fleet might have very limited routes with plenty of downtime, making EVs with Level 2 chargers a good buy. Other fleets may choose hybrids and fuel efficient cars and crossovers, depending on their mileage and coverage area and the available infrastructure in that area.

Stay tuned for more specialized reports on green vehicles and infrastructure to be released. These reports are likely to focus on the US and other key economic markets – China, India, Japan, Korea, Brazil, European Union, and Canada being the most important. Eventually, the economic impact of green vehicles and fueling will grab more attention as the numbers grow and the industry adds more layers to operations.