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Senator Stabenow, Congressman Peters Announce Legislation to Support the Development of Advanced Technology Vehicles in America

On December 7th, Senator Debbie Stabenow (D-MI) and U.S. Congressman Gary Peters (D-MI) introduced the Advanced Vehicle Technology Act of 2009 (S.2843). The Advanced Vehicle Technology Act will provide funding to the U.S. Department of Energy for advanced vehicle research and development. The funding will be available through competitive grant awards for small, medium, and large manufacturers and suppliers that develop technologies to improve the energy efficiency of vehicles. These efforts include hybrid and electrical systems; advanced batteries and energy storage devices; hydrogen and natural gas systems; refueling and recharging infrastructure; and other advanced vehicle technologies. It will also expand the development of more fuel-efficient medium and heavy duty commercial trucks.

SAE 2010 Government/Industry Meeting

SAE’s 2010 Government/Industry meeting will be held January 27-29 in Washington, DC.  Sessions will include:

- Crash Avoidance Technologies for Heavy Trucks

- Enforcement: CARS and CAFÉ

- Adding Up the Carbon of Renewable Fuels

- Second Generation Biofuels

- Front and Side Impact Crashworthiness

- Vehicle Rollover and Occupant Containment

- New Innovations in Advanced Safety Technology

- Crash Avoidance and Crash Causation

- Electricity -- The Fuel of the Future....Today?

- Return of the Plug-in Electric Vehicle -- Will the Sequel Succeed?

- Marketing Safety

- Safety Data

- Heavy-Duty Technologies & Solutions to Improve Efficiency and Emissions

- What's Next for Heavy-Duty Engine Regulations?

- Child Safety

- Pedestrian Safety

- Alternative Fuel Vehicle Safety

- Light-Duty Powertrain Strategies -- Are IC Engines Taking a Back Seat?

- Biomechanics

- Who Pays for the High-Fuel Economy Vehicles of the Future?

- Distraction

For information on the upcoming meeting, go to http://www.sae.org/events/gim/.

Conversion Vehicle Emissions Certification

On October 20, 2009, Senator Wicker (for himself and Sen. Inhofe) introduced the “Streamline Vehicle Conversions Act” (S.1809).  Among other things, S.1809 would:

·       -  exempt aftermarket conversion vehicle test groups from having to be recertified year after year;

·       -  permit aftermarket conversion system manufacturers to carry over and carry across emissions and OBD certification data;

·       -  permit aftermarket conversion system manufacturers to use EPA assigned deterioration factors without regard to sales limits imposed on small volume manufacturers;

·        - allow EPA to waive emission requirements pertaining to the fuel on which the vehicle was originally certified to run;

·        -  require EPA to issue less stringent OBD requirements for aftermarket conversion systems that take into account the inability of an aftermarket conversion system manufacturer’s ability to access proprietary OBD technology of the OEM; and

·       -  allow vehicles that are already beyond their regulated useful life to be exempt from the Clean Air Act’s tampering provision.

The bill was referred to the Committee on Environment and Public Works.

Cap & Trade

On May 13, 2009, Chairman Henry A. Waxman, Subcommittee Chairman Edward J. Markey, and Chairman Emeritus John D. Dingell released the details of an agreement on allocation of allowances to the automobile industry under the proposed terms of the American Clean Energy and Security Act. Under the agreement, the automobile industries will be provided incentives to make electric and advanced technology vehicles. As contemplated, the industry would receive 3% of allowances from 2012 through 2017, and after that will receive 1% of allowances through 2025.

The American Clean Energy and Security Act of 2009 (ACES)

On March 31, 2009 House Energy and Commerce Chairman Henry Waxman and Representative Markey of the Energy and Environment Subcommittee released a draft of the American Clean Energy and Security Act of 2009 (ACES). According to the sponsors, the legislation is intended to create millions of new clean energy jobs, save consumers hundreds of billions of dollars in energy costs, enhance America’s energy independence, and cut global warming pollution. To meet these goals, the legislation has four titles:

1. A clean energy title that promotes renewable sources of energy, carbon capture and sequestration technologies, low-carbon fuels, clean electric vehicles, and the smart grid and electricity transmission;

2. An energy efficiency title that increases energy efficiency across all sectors of the economy, including buildings, appliances, transportation, and industry;

3. A global warming title that places limits on emissions of heat-trapping pollutants; and

4. A transitioning title that protects U.S. consumers and industry and promotes green jobs during the transition to a clean energy economy.

With respect to clean fuels and vehicles, the draft establishes a new low-carbon transportation fuel standard to promote advanced biofuels and other clean transportation fuels. It authorizes financial support in the form of grants or loan guarantees to cities, states, or private companies for large-scale demonstrations of electric vehicles. A related provision authorizes financial support to car companies to retool their plants to build electric vehicles.

With respect to fuel economy, the draft directs the President to work with the relevant agencies and California to harmonize, to the maximum extent possible, the federal fuel economy standards, any emission standards promulgated by EPA, and the California standards for light-duty vehicles.

With respect to global warming, the draft establishes a market-based program for reducing global warming pollution from electric utilities, oil companies, large industrial sources, and other covered entities. Entities that emit less than 25,000 tons per year of CO2 are not covered by the program.

The Energy and Commerce Committee intends to complete consideration of the legislation by Memorial Day. The preliminary schedule follows:

Week of April 20: Energy and Environment Subcommittee Hearings Week of April 27: Energy and Environment Subcommittee Markup Period Begins Week of May 11: Full Energy and Commerce Committee Markup Period Begins

Cash for Clunkers

On March 17, 2009, Representative Sutton (D-OH) introduced the Consumer Assistance to Recycle and Save (CARS) Act (H.R. 1550) which provides consumer purchase incentives for turning in vehicles that are 8 years or older to buy more fuel-efficient vehicles or to obtain a transit voucher. In the legislation, new car purchases that qualify for this incentive must achieve a minimum of 27 miles per gallon on highways, while new trucks must achieve a minimum of 24 mpg for highway driving. Voucher values would range from $3,000 to $5,000 depending on the new vehicle’s fuel efficiency. Vehicles must have an MSRP of less than $35,000, achieve Tier 2, Bin 5 federal vehicle emission standards and be manufactured in the U.S., or in North America. A $7,500 voucher would be available for any vehicle assembled in the U.S. that has a minimum city fuel economy label value of 100 mpg, beginning after the 2010 calendar year.

Plug-in Electric Vehicle Tax Credits

On October 3, 2008, Congress approved the Emergency Economic Stabilization Act of 2008 (HR 1424). Included in the legislation is a tax provision pertaining to plug-in electric vehicles (Sec. 205 of of Title II on the bill). Sec. 205 provides tax credits for purchasers of plug-in electric vehicles that will range from $2,500 to $15,000 per vehicle depending on vehicle size and batter capacity. The credit is $2,500 + $417 for each kilowatt hour of traction battery capacity in excess of 4 kilowatt hours. There are limits as follows:

$7,500 (GVWR < 10,000 lbs) $10,000 (GVWR between 10,000 lbs and 14,000 lbs) $12,500 (GVWR between 14,000 lbs and 26,000 lbs) $15,000 (GVWR > 26,000 lbs)

The credits will be available until 250,000 total plug-in electrics are sold in the U.S. (clock starts 1/1/09).

Advanced Technology Vehicles Manufacturing Loan Program

On Saturday, September 27, 2008, Congress approved legislation (HR 2638) which, among other things, appropriates $7.51 billion for FY2009 for the advanced technology vehicle manufacturing loan program that was authorized by the Energy Independence and Security Act of 2007. The Department of Energy (DOE) is tasked with implementing the loan program and they are required to issue implementing regulations within 60 days of enactment.

Flex-Fuel Vehicle Mandate

On July 22, 2008, U.S. Senators Sam Brownback (R-KS), Ken Salazar (D-CO) and Joseph Lieberman (I-CT) held a press conference to introduce the Open Fuel Standard Act. As drafted the legislation would require that starting in 2012, 50% of new automobiles, and starting in 2015, 80% of new automobiles, be flex-fuel vehicles warranted to operate on gasoline, ethanol, and methanol, or be warranted to operate on biodiesel. A companion bill on the House side (HR 6559) was introduced the same day by representatives Engel (D-NY), Congressmen Jack Kingston (R-GA), Steve Israel (D-NY), and Bob Inglis (R-SC). The Senate bill has been referred to the Senate Committee on Commerce, Science and Transportation while the House bill has been sent to the House Committee on Energy and Commerce.

Alternatively Fueled Vehicles

On June 10, 2008, Representative Tancredo (R-CO) introduced legislation, the Fuel Freedom Act of 2008 (HR. 6231).  As written, the legislation would require that all vehicles manufactured after the 2018 model year be alternative fuel vehicles.  Penalties for noncompliance are $10,000/vehicle.  The bill was referred to the Committee on Energy and Commerce.