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

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

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

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

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

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

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

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

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

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

    This Week’s Top 10: Chinese automaker BYD taking on Tesla in battery battle, DOE awards $6 million in clean transportation projects

    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. BYDBYD taking on batteries: Chinese automaker BYD Co. is taking an active role in the global automotive and energy markets. The company, backed by Warren Buffett’s Berkshire Hathaway Inc., will be adding 18 gigawatt hours of global production for batteries over the next three years, putting it on par with Tesla Motor’s $5 billion “gigafactory” for electric vehicle battery manufacturing and energy storage capacity. Most that battery production is in China, but the company is opening a large factory in Brazil this year and will scale up production in the US. In 2013, BYD opened two manufacturing plants in Southern California for producing electric buses and batteries. On Friday, ridesharing giant Uber announced that it will be working with BYD on testing a fleet of electric cars for Uber drivers. This is the first time Uber will try out electric cars (which has been a popular fleet offering with carsharing companies Car2Go and Zipcar). The test program was kicked off a few weeks ago in Chicago and may be expanded to other cities.
    2. DOE projects awarded: An interesting medley of universities, coalitions, and associations have just been granted about $6 million for 11 projects supporting advancement of clean transportation by the US Department of Energy (DOE). Some of the projects will help consumers and fleets adopt alternative fuel vehicles and infrastructure to help spread education and support for these projects. For example, a state agency in Florida is leading the Drive Electric Orlando project and received $400,000 to increase consumer familiarity and support for plug-in electric vehicle adoption.
    3. Forgetting to shut down your Volt: A recall has been issued on about 64,000 Chevrolet Volts in model years 2011, 2012, and 2013; the problem stems from drivers mistakenly leaving the car running (which does happen on cars with keyless fobs running partially or completely on battery power). That means hazardous carbon-monoxide could spread in that area, which can be quite toxic in a garage. General Motors has issued the recall and notified the National Highway Traffic Safety Administration (NHTSA) about it.
    4. Goodyear and green tires: Goodyear rolled out two green concept tires during the Geneva Motor Show. The first one sounds similar to what Protean Electric offers – its BHO3 can provide an additional source of electricity for electric vehicles – similar to energy coming from regenerative braking and power produced by Protean’s in-wheel electric-drive system. Goodyear’s BHO3 can harness heat created during normal driving conditions for producing electricity. The second concept from Goodyear, the Triple Tube, offers a pump that can adjust the tire into three different configurations; one of them, “Eco-Safety,” inflates the tire decrease rolling resistance.
    5. Tesla relieving range anxiety: Tesla Motors CEO Elon Musk tweeted on Sunday that the automaker will announce a software update on Thursday that will “end range anxiety” and satisfy driver concerns about running out of battery power. In other Tesla news, the electric carmaker will be moving executive positions around to deal with its growth in deliveries in Asia, North America, and Europe. Jerome Guillen, vice president of global sales and service, will change over to a customer satisfaction role. Tesla will hire regional executives to better manage challenges like gaining sales traction in China.
    6. Porsche may be making an electric car: Porsche may enter the luxury battery powered sports car world to take on Tesla Motors – and long-term competitor Ferrari SpA. Porsche AG chief Matthias Mueller acknowledged Tesla’s practical approach during a press conference on Friday. Porsche will be rolling out is seventh model line by 2020 but has yet to decide on the details. It will be a sports car model that would go directly after Ferrari.
    7. Autocycles being adopted: Twenty six states now have laws in place, or are developing them, allowing three-wheeled, enclosed vehicles that are usually called autocycles to go street legal. Sen. David Vitter (R-La.) has introduced legislation that would bring the autocycle classification to the federal level. One of these companies, Elio Motors, has been gaining a lot of interest in the past year for its three-wheeler electric autocycle available for $6,800.
    8. Intrigue continues on Apple: Is Apple Inc. entering the electric vehicle (EV) market? Investor shareholders have expressed interest in the technology giant creating a joint venture with Tesla Motors to build the most cutting edge EV ever, according to Apple CEO Tim Cook. “Quite frankly, I’d like to see you guys buy Tesla,” an investor told Cook recently, who sloughed it off. In other news, Apple asked a US court to dismiss a civil lawsuit filed by battery maker A123 Systems over engineers hired by Apple. Apple says it’s too speculative to proceed and has avoided giving out details on whether or not it will be starting up an EV manufacturing or lithium battery division.
    9. Billions in advanced vehicle R&D: Automotive News just released an in-depth analysis piece on the massive challenges global automakers are facing in new technologies. Long gone are the days of slowly testing and developing new vehicle powertrains. The US 54.5 fleetwide fuel economy standard and tightening emission rules in Europe are driving much of the changing landscape; as are innovations in electric vehicle and hybrid systems – and companies like Google, Tesla, Apple, Uber, and Zipcar changing the rules of the game. That means billions in investments and a higher level of risk – with one example coming from Volkswagen, which will spend $7 billion in North America over the next five years on new plants, models and technology, and a new engineering center.
    10. Valeo making investments: French automotive supplier company Valeo is looking at acquisitions that could leverage its role in fuel efficiency and autonomous vehicles. Hybrid technologies is one route the company is traveling to help automakers cut fuel consumption and carbon emissions. Another strategy is through connected, self-driving cars. Valeo announced a deal with Mobileye on March 11 to use the technology company’s image processors in autonomous and collision-avoidance applications.

      Green Auto Market Extended Edition test drives Tesla Model S P85D and offers market data analysis

      Tesla store in Santa MonicaGreen Auto Market is changing its format this week, adding another weekly publication that goes out on Mondays – Green Auto Market Extended Edition. The former monthly subscription publication is going weekly, featuring a commentary and at least one market data analysis section (with this week focused on hybrid and electric vehicle sales). Green Auto Market will continue to be a free weekly newsletter sent out on Tuesdays, but will be a brief newsletter with more in-depth coverage and analysis presented in Extended Edition.

      This week’s Extended Edition presented readers with “Test driving a Model S P85D while experiencing what’s unique about Tesla Motors’ marketing tactics” – If you’re interested in driving a Tesla Model S – especially if you really want to try out the “Insane Mode” and go from zero to 60 mph in 3.2 seconds – then you’ll need to schedule an appointment at a nearby Tesla store. Tesla will not be participating at a ride and drive during an upcoming auto show or industry conference. Just like its Supercharger fast charger stations, Tesla Motors does everything its own way – and keeps things very interesting. Here’s what it’s like to visit a store and take the Model S P85D for a road trip.

      Other features for this month include hybrid and plug-in electric vehicle sales charts and market trend analysis. In the next few weeks, a stock market chart will be featured on major clean transportation companies and suppliers; fuel prices; charging and alternative fueling infrastructure; and other important data metrics on what’s next for advanced vehicle technologies and alternative fuels.

      Green Auto Market Extended Edition is available for $75 per year; subscribers can register on this PayPal page. Comp subscriptions are available for media and industry associations; contact Editor Jon LeSage for that request.

        This Week’s Top 10: Keynote speakers announced for ACT Expo, Nissan Leaf takes narrow lead on Tesla Model S in February sales

        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. ACT Expo 2015Keynote speakers announced for ACT Expo: Gladstein, Neadross and Associates, organizers of the Alternative Clean Transportation (ACT) Expo, announced the speaker lineup for the 2015 conference to be held May 4-7 in Dallas. Keynote presentations will be made by Gregg Rogen, SVP, productivity and sustainability, Frito-Lay; and David Steiner, president and CEO, Waste Management. Frito-Lay in its fleet has nearly 300 electric trucks, more than 200 CNG-powered trucks, more than 650 hybrids, and a growing number of propane autogas and biodiesel vehicles. Waste Management operates the largest fleet of heavy-duty trucks in North America, and Steiner will talk about the company’s investment in alternative fuels and infrastructure. Other speakers during the conference include Boone Pickens, founder, chairman and CEO, BP Capital; Mike Whitlatch, vice president, global energy and procurement, UPS; Elizabeth Fretheim, director of logistics sustainability, Walmart; and Drew Cullen, senior vice president of fuels and facilities services, Penske Truck Leasing. View the event’s full agenda here.
        2. February plug-in sales. The Nissan Leaf took a narrow lead over the Tesla Model S in February’s US market sales – 1,198 for the Leaf versus 1,150 for Model S. Coming in at third was the BMW i3 with 1,089 units sold. The Chevrolet Volt continues to follow farther behind the Leaf and Model S with 693 units sold. Consumers might be looking forward to the all-new 2016 Volt coming out later this year. Overall US plug-in sales were down 80 units from January and February 2014.
        3. Oregon testing road-usage program. Oregon and several other states are worried about losing tax revenue due to more plug-in electric and fuel-efficient vehicles entering their roads. So, Oregon is starting a test program staring July 1 where 50,000 registered vehicle owners will participate. Participating drivers will still pay the gas tax at the pump, but at the end of each month, mileage and fuel-consumption data from on-board diagnostics will be used to compare gas tax with a 1.5 cent-per-mile tax that would be charged under a road-usage charge. More than 10 states are in the process of drafting legislation for similar programs or test projects.
        4. Volkswagen AG is working hard at becoming the top vehicle seller in the world and the industry’s technology leader, CEO Martin Winkertorn said during a Geneva Motor Show news conference. The automaker is debuting the Sport Coupe Concept GTE at the show as an example of technology innovation. The sports coupe has a plug-in hybrid drive system that pairs a 3.0-liter V-6 with two electric motors. In the European test cycle, the car gets a 118 mpg fuel economy rating.
        5. California approves DME as a vehicle fuel. California’s Division of Measurement Standard’s issued a formal approval to Oberon Fuels for its dimethyl ether (DME) as a vehicle fuel, which will help with the fuel’s commercialization. “The State of California’s approval builds upon the growing body of certifications that demonstrate DME is a low carbon fuel that meets both industry standards for performance and environmental standards for compliance,” Oberon Fuels president Rebecca Boudreaux said.
        6. Kia pleased with Soul EV sales. Stronger-than-expected customer interest has inspired Kia to accelerate its roll-out plan. It’s the first electric car Kia has sold outside of Korea, and wants to make sure its suppliers, distributors, and dealers are ready in the US. The Soul EV first went on sale in October in California, with plans to expand to Oregon and a few East Coast markets later. The company hopes to announce a plan in April that will include wider availability than had been originally planned.
        7. Audi reveals plug-in offerings: Audi, which previously had only offered a plug-in hybrid option for its A3 compact car, now has two more plug-ins coming up. Audi will offer its Q7 sport-utility vehicle with two plug-in hybrid powertrains: a diesel option for Europe and a gasoline version for the U.S. and China. Audi has also announced that it will offer a battery electric version of its newly redesigned sports car, the R8 e-tron. The sports car will be able to travel about 280 miles on a single charge.
        8. More clean fleet vehicles: Four vehicle roll-outs sound good for fleets interested in bringing in more alt-fuel vehicles. Motiv Power Systems is launching a battery electric drive compatible with the Ford F59 chassis and has received an initial order for six vehicles for AmeriPride in Fresno, Calif. BioCNG will be upgrading a landfill gas-based compressed natural gas fueling station for the St. Landry Parish Solid Disposal District in Louisiana; and will be adding a second facility at the District’s recycling center in Opelousas. Coca-Cola has converted 39 GM Express vans to hybrid electrics using XL3 systems from XL Hybrids. It’s tied into an executive order last year by the California Air Resources Board and brings Coke’s total number of XL Hybrid-fitted vans up to 211. Efficient Drivetrains, Inc. (EDI) has announced the availability of a Class 3 utility plug-in hybrid truck. EDI says that it features an extended range of 300 miles and 50-to-120 kW of grid reliable export power.
        9. Two 350Green executives face fraud charges. Mariana Gerzanych and Timothy Mason – the two former top ranking executives of electric vehicle charging station supplier 350Green – have been accused in a federal court of falsely obtaining almost $3 million in grant money for a project, The Chicago Tribune reported. 350Green had been working with the city of Chicago to install its charging network. Gerzanych and Mason have been charged with obtaining funds by falsely claiming they’d paid subcontractors and vendors for work on the charging stations.
        10. Tesla cutting jobs in China. Tesla Motors Inc. may be reducing its staff by 30% in China as it makes structural changes in the market. The Chinese newspaper Economic Observer reported Tesla will eliminate 180 of the 600 positions in China because sales haven’t met expectations.

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

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

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

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

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

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

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

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

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

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

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

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

            California cap and trade sees $1 billion in carbon credits after vehicle tailpipe emissions were added

            Vehicle tailpipe emissionsCalifornia’s cap-and-trade program, which began quarterly auction sales in late 2012, hit a benchmark last month. Companies invested $1.02 billion in carbon emissions credits, the largest auction event since it all started. Analysts think that had to do with the state significantly increasing the pool of credits available for sale to meet the 2015 addition of motor vehicle tailpipe emissions into the cap-and-trade program.

             

            The cap-and-trade auctions have become a central aspect of the state’s AB 32 climate change law enacted in 2006. Under the state’s regulatory structure, large polluters buy carbon credits that come from businesses generating surplus allowances. Collected funds from the auctions go toward other emission-reducing endeavors, including sustainable energy projects and rebates for electric vehicles and solar panels. While China and the US are working on an agreement to mutually reduce their greenhouse gas emissions, their governments and those of states across the country and other nations around the world, are tracking how well California’s program may reduce carbon emissions.

             

            In its earliest phase, the state’s cap-and-trade system affected other industries beyond oil companies. The state doesn’t disclose which companies made allowance transactions during the quarterly auctions, but its list of qualified bidders includes Chevron USA, BP Energy Co., and Exxon Mobil Corp. Oil companies, refineries, and retail gas station owners, have warned that adding transportation fuel to the state program will be increasing the price at least 10 cents a gallon. Low gas prices have taken some of the weight out of that argument, but California officials have taken the warning seriously. The California Air Resources Board, which oversees the auctions, dramatically increased the volume of available credits. Credit prices did stay steady with that volume increase – participants paid $12.21 per credit for the right to emit carbon this year, which was similar to prices paid at previous auctions.

             

            Environmentalists, such as a representative from the Environmental Defense Fund, think the market is functioning properly. Oil companies are not as pleased with the regulatory structure that comes from AB 32. In addition the cap and trade, the state has enacted the Low Carbon Fuel Standard (LCFS) that calls for a reduction of at least 10% in the carbon intensity of California’s transportation fuels by 2020. Last month, the California Air Resources Board held a hearing on whether the regulation is working out. A decision is expected to be released this spring or summer. Environmentalists and alternative fuel producers argued that the state should stay its course; oil industry representatives disagreed.

             

            Nick Economides, manager of state fuels regulation at Chevron Corp., said the state’s mandate relies heavily on the development of alternative fuels, many of which haven’t yet panned out. He joined up with other oil industry executives who argued that the LCFS needs to be adjusted. “We have invested heavily (in alternative fuels) and regretfully, we have not been successful,” Economides said.

             

            Others make the argument that oil companies are not taking alternative fuels seriously at all – investments in biofuels, hydrogen, and other alternative energies are being done to “look good” with regulators and the general public, but are only being addressed at superficial levels. Similar arguments are made by electric vehicle advocates who talk about investments made in the past 30 years by major automakers for electric drive and other clean technologies – only to see these projects gathering mothballs.

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

              by Jon LeSage, editor and publisher, Green Auto Market 

               

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

               

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

                What’s likely to happen with the Keystone XL oil pipeline

                Keystone pipelineWith President Obama’s veto of the Keystone XL pipeline bill last week, it’s likely that the Canadian-US oil agreement will be stalled out for now. On Wednesday, the Senate will vote to override the president’s veto, but it will be a very close call.

                The Keystone XL pipeline has been a battleground for environmental groups, the Canadian government and oil companies, Republican leaders in the House and Senate, and the US State Department for the past six years. In his written statement, Obama said that because the bill “cuts short thorough consideration of issues that could bear on our national interest — including our security, safety, and environment – it has earned my veto.”

                So, what are those issues that could bear on national interest?

                • Economics: House speaker John Boehner (R-Ohio) thinks it’s a “no-brainer” and a national embarrassment that countries like Russia and China are moving ahead on massive pipelines, but the US can’t get the project off the ground. “The president is just too close to environmental extremists to stand up for America’s workers,” Boehner said in a statement. Supporters of the pipeline say that it would create construction jobs, reduce oil prices, and help grow the economy.
                • Environmental issues: Sierra Club Executive Director Michael Brune says that the president has all the evidence he needs to reject the Keystone pipeline for now – it may contribute significantly to the climate crisis, and Republicans are too tied into their big oil allies. Other Keystone opponents argue that it would accelerate climate change, it could pollute waterways along the pipeline’s route, and won’t be contributing very much to the US economy.
                • State Department: White House Press Secretary Josh Earnest told media that one of the reasons the president vetoed the bill is that the US State Department is still conducting a review of the massive pipeline that would be moving about 800,000 barrels of crude oil per day from Alberta to oil refineries in Port Arthur, Texas. Secretary of State John Kerry has been getting a great deal of pressure to give the green light to the pipeline, but the review process has been dragged out. The State Department had asked federal agencies for feedback on the $8 billion pipeline project, and hasn’t been clear about when its official statement will be released.
                • US and Canada relations: The Canadian government and oil industry need to have Alberta tar sands processed in Texas and then distributed to oil refineries in the US and Canada. Canadian officials have expressed frustration with the decision, and suggest that it could set a bad precedent for bilateral trade agreements between the US and Canada.
                • Too much gray area: Some of the Keystone opposition arguments come from concern that the facts may be distorted, and that investing $8 billion in the pipeline may not be worth it. While up to 42,000 jobs could be created, these are temporary construction jobs lasting one-to-two years; only about 50 full-time jobs such as pipeline inspectors would be put into place. There’s also the fact that plenty of oil and gas are being extracted from shale fields through hydraulic fracturing; and there’s so much global oil supply out there that oil prices – and gasoline – will stay low for the foreseeable future.

                  Carsharing and ridesharing services gaining more interest from major automakers

                  UberAutomakers may follow Daimler’s lead in carsharing and ridesharing services. Daimler’s Car2Go carsharing service has been opening new locations in North America and Europe this year – and now Toyota and Ford are investing more in these alternative transportation services.

                   

                  Toyota’s i-Road is a small three-wheel car that’s being tested out in a carsharing program in Tokyo designed to support public transport. It’s also being used as part of a carsharing program in the French city of Grenoble. Toyota’s concept is tied into commuting workers in cities who may choose to switch from their car to trains while going to and from work.

                   

                  The Toyota i-Road is small enough to cut through traffic and may help alleviate congestion in cities. It’s being tested out for now with carsharing service Park2 and is being marketed to corporate clients and individual members.

                   

                  Ford is also funding a test project that could bring a ridesharing service to the market that would compete with Uber. Ford is working on its own ridesharing mobile device application and a vehicle that would provide the transportation. Ford’s ridesharing shuttle may be tested out on the streets of London staring later this year.

                   

                  There are no details on the vehicle yet, but it will be a “dynamic social shuttle,” that’s part of about 25 experiments Ford has taken on. It’s part of Ford’s game plan to focus less on vehicle manufacturing and more on mobility.

                   

                  Automakers are closely following the growing interest in ridesharing services like Uber and carsharing services such as Car2Go and Zipcar. They’re following the demographic trends of more people moving into major urban environments, and younger potential customers putting off getting their drivers licenses and vehicles. Vehicle sharing could also help alleviate traffic congestion and air pollution in densely populated cities.

                   

                  BMW also sees it as a way to get consumers more excited about owning one of their products. Richard Steinberg, who used to head up BMW and Mini’s electric car sales in North America, now serves as CEO of DriveNow USA, a BMW-owned carsharing program. “We definitely get lots of people excited about being behind the wheel of a premium product,” Steinberg said.

                   

                  BMW appears to agree with Ford on the changing role of automakers. BMW has added that it not only leads the way on premium products but it now includes the phrase “and premium services for individual mobility” in its mission statement, according to Steinberg.

                   

                  Major auto insurance provider USAA is taking ridesharing very seriously. USAA is working with state insurance departments in Colorado and Texas to offer coverage for drivers in Uber and other ridesharing services. “Ridesharing is a growing industry, and it’s important that our members have the right insurance coverage,” said Alan Krapf, president, USAA Property and Casualty Insurance Group. State Farm and Allstate are also looking into different insurance coverage options for drivers who work for ridesharing companies.

                    This Week’s Top 10: Apple stirs up frenzy as potential EV maker, EPA refining fuel economy testing procedures

                    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. Apple electric minivanIs Apple becoming an electric automaker competing directly with Tesla and the majors? The answer is yet to be determined, but it stirred up a media frenzy last week as big as Google’s self-driving car venture last year. The stories were captivating: lithium battery maker A123 Systems sues Apple for allegedly stealing away top engineers to build its own battery pack – and these and other Apple engineers are likely to apply for several patents protecting the new technology. Sources told media that Apple is working on an electric car that may roll out by 2020. The Wall Street Journal piece that started the wave of coverage said that Apple’s secret project has been named “Project Titan,” and hundreds of Apple employees have been assigned to design the electric minivan. Apple has large cash reserves and could be positioning itself to offer cutting-edge technologies for cars that could be as significant as the iPhone has been in the smartphone space. Former General Motors vice chairman Bob Lutz doubts Apple will be setting up vehicle manufacturing assembly plants. “Do I think they are going to work with vehicles? Yes,” Lutz said. “Do I think they intend to produce entire cars? No.”
                    2. The US Environmental Protection Agency (EPA) is updating fuel economy test procedures to make them more accurate than they’ve been criticized for being in the past couple of years. The revision focuses on testing rolling resistance and aerodynamic drag of vehicles as they roll from 70 mph to a stop on a straight, flat track. These calculations are used to program dynamometers that determine fuel economy ratings in EPA test cycles. The new standards will need to more accurately address the effects of road load levels over a broad range of speed. The EPA will be meeting with automakers in the next few months to discuss their testing procedures, said Chris Grundler, director of the EPA’s Office of Transportation Air Quality.
                    3. West coast ports may see their work stoppage go away and shipping go back to normal. The International Longshore and Warehouse Union and Pacific Maritime Association have reached tentative agreement on a new labor contract that had been backing up cargo carriers in long lines in recent weeks. Japanese automakers had been feeling the squeeze, especially Honda which said that the backup cost the automaker about 25,000 vehicles in lost production. US Labor Secretary Thomas Perez last week brokered a deal in San Francisco between the union and a group of shipping companies.
                    4. Fisker Automotive is considering three options for its company name: eLux Technology, Elux Automotive, or keeping its current name. According to an inside source, including “Lux” in the name could commemorate the company’s chairman, Lu Guanqui; the Chinese billionaire and founder of Wanxiang Group Corp. acquired Fisker about a year ago in bankruptcy court for $149.2 million in cash.
                    5. For those interested in working with the US military on advanced vehicle technology projects…… the US Marine Corp. issued a Request for Information (RFI) for its next Expeditionary Energy Concepts technology demonstration that will be held June 23-25, 2015, at Camp Lejeune, NC. Three vehicle technology areas will be included in this year’s demonstration: hybrid/electric all-terrain vehicles; advanced batteries and energy storage; and fuel cells up to 10 kW. The deadline to respond to the RFI is Friday, March 6.
                    6. Tesla Motors has a diverse group of backers in its fight against franchised dealers. Ten public-interest groups have signed a letter to US governors and legislators supporting Tesla’s right to directly sell its electric vehicles at retail stores across the country. Among the 10 groups were the environmentalist Sierra Club and Americans for Prosperity – a political action group founded by the Koch brothers. In other news, Tesla may be granted permission to open up to 12 stores in Texas. Six state legislators have filed bills that would give permission to Tesla to directly sell to customers.
                    7. Navigant Research expects electric vehicle supply equipment (EVSE) to see big gains in coming years. Global revenue for EVSE charging services should grow from $81.1 million in 2014 to $2.9 billion in 2023. That would include residential and commercial electric vehicle charging for Level 1, Level 2, DC fast charging, and wireless EVSE.
                    8. Volvo will be launching an autonomous vehicle pilot program by 2017. The Drive Me project will use Volvo vehicles equipped with a variety of sensors designed to detect weather and traffic, pedestrians, and other safety and mobility factors. Some of that data will come from a combined radar and camera system mounted at the top of the windshield.
                    9. Ryder System has set up an online natural gas vehicle maintenance program for all of its North American maintenance network with more than 6,000 employees at Ryder’s 800 facilities. Technicians will learn about the entire spectrum of all natural gas vehicle platforms and configurations. Ryder trucks have put in more than 30 million miles driven as natural gas vehicles for the commercial transportation industry; the company has 14 natural gas vehicle maintenance facilities and 260 natural gas vehicle trained technicians.
                    10. California Air Resources Board received a letter signed by about 100 businesses, organizations and individuals, highlighting key benefits of the state’s six-year-old Low Carbon Fuel Standard. Key benefits mentioned in the letter included diversifying the state’s fuel supply and increasing independence from fluctuating oil prices and gas pump prices; spurring greater use of clean alternative fuels and vehicles; and cutting air pollution and improving public health.