Car Allowance Rebate System (CARS) - PowerPoint PPT Presentation

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Car Allowance Rebate System (CARS)

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Consumers purchasing inefficient automobiles will be charged a fee at the ... or control charging via Energy ... Encourages alternate transportation at ... – PowerPoint PPT presentation

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Title: Car Allowance Rebate System (CARS)


1
Car Allowance Rebate System (CARS)
Trade in old vehicles for newer, more fuel
efficient vehicles with a 3500-4500 rebate
  • Avg switch 16 mpg ? 26 mpg
  • 750,000 old vehicles swapped
  • 16mpg ? 940gallons/yr 18,000lbs CO2/yr
  • 26mpg ? 580gallons/yr 7,000lbs CO2/yr
  • Effectiveness?
  • 1 CO2 emissions
  • 0.2 gas consumption
  • Not enough participants!
  • Advantages
  • Save on gas
  • Remove dirtiest cars off roads
  • Recycle steel parts

2
Economic Incentives for Improved Vehicle
Efficiency
3
Tax Incentives for Hybrid Vehicles
  • On average, hybrid vehicles save consumers 2500
    in fuel costs over a 10 year lifespan
  • The cost of purchasing a hybrid vehicle is
    5000-9000 greater than the cost of purchasing a
    comparable non-hybrid vehicle.
  • Tax incentives are provided to the first 60,000
    consumers who purchase a hybrid model each year.
    Federal tax reductions should be applied to every
    consumer who purchases a hybrid vehicle.

4
Feebates
  • Consumers purchasing inefficient automobiles will
    be charged a fee at the time of vehicle
    purchase
  • Consumers purchasing an efficient automobile
    receive a rebate at the time of vehicle
    purchase
  • This system is financially self-sustaining

5
Electric Power for PHEVs(Plug-In Hybrid,
Electric Vehicles)
  • Policy Report discussion
  • by Hunter Estes

6
Electric Power for PHEVs(Plug-In Hybrid,
Electric Vehicles)
  • Proliferate EVs PHEVs through 0.10/gal
    (0.0264/L) gas excise tax. (We currently pay
    0.1/L in taxes per Liter. Tax helps to modify
    behavior generate revenue)
  • _at_ 42 gallons per barrel, this would generate
    revenue of 87 M/day, or 31.7B/year
  • (20.7M bbl/day x 42 x 0.1 x 365)
  • Cost to average consumer is (10,000 miles/yr)/(25
    mpg) x 0.10 40/yr
  • Note Cost will also be observed in airline
    travel, commercial goods shipped Nationwide, etc.
  • Perhaps real cost to consumer will be more like
    150/yr
  • This amount wont likely cripple the U.S.
    Economy, but will help with revenue
    conservation
  • If only 4.5B were set aside for the purpose of
    giving 9,000 in tax credits towards the purchase
    of qualified EVs or PHEVs, this would help offset
    the price of 500,000 new green vehicle purchases,
    annually. Also set aside another 4.5B worth of
    credits for home charging stations.
  • Grant businesses a 4.5B tax credit for granting
    employees free charging stations at the
    workplace.
  • When (If?) tax credits run out, employees charge
    vehicles via credit card transactions, like at
    gas stations. Or, workplace might potentially
    pick up the tab as a benefit to employees.
  • Use remaining 18.2B of revenue for RD
  • Home charging stations have separate meters
    billing statements break out cost times to
    consumers much like cell phone bills already do
    (peak hours, group rates, recommendations)
  • Programmable charging stations for household
    nighttime charging, or control charging via
    Energy Providers (much like what was done via
    controlled cycling, to mitigate peak production
    demand)
  • Allows wind producers a valuable market so they
    dont have to scale back production
  • Remaining portion of load fluctuations met from
    Natural Gas Electricity Providers (CH4 gt CH1.6)

7
EPA Standards for Heavy Vehicles
  • Zachary Houston
  • CHE 359

8
Contents
  • Introduction to Fuel Economy and Standards
  • Improvements in Trucking Industry
  • Improvements in Large Truck Industry
  • Conclusions

9
What about CAFE Standards?
  • Trucks larger than 8,000 lbs. gross weight have
    been exempt from NHTSA CAFE standards since
    inception
  • Buses
  • Semi-trucks
  • Large Vans
  • Large Trucks
  • Utility Vehicles

10
But 10 is not much.
  • According to the NHTSA, 10 of vehicles on the
    road are heavy vehicles
  • Those 10 consume as much as 30 of fuel in the
    U.S.

11
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12
The Trucking Industry Drives Economy
  • According to American Trucking Association, there
    are about 1.9 million Semis on the Road
  • They average between 6 and 7 miles per gallon
  • Can drive up to 150,000 miles per year each.

13
Obama Makes Progress through EPA
  • In October, Obama Administration and EPA
    announced plans to require 20 reduction in
    carbon dioxide emissions by 2018.
  • This save 41 billion per year in oil imports,
    more in fuel costs.
  • And the technology exists today.
  • Bill Graves, president of the American Trucking
    Associations welcomes the proposal, feels
    regulations are feasible through technology
    currently available.

14
Improvements to Large Truck Industry
15
http//www.youtube.com/watch?vmC2piTPkWYg
16
Its Not Rocket Science
  • Average fuel economy
  • 11 mpg
  • Average Passenger Capacity
  • 4 People
  • One 2500 series truck
  • 5 Prius

17
Sources
  • http//www.truckinfo.net/trucking/stats.htm
  • http//www.npr.org/templates/story/story.php?story
    Id130787713.
  • http//www.nhtsa.gov/cars/rules/cafe/overview.htm

18
Public Policy Review for Transportation
  • Teri Houle

19
Transportation Policy Review
Use of public policy to effect supply side (with
fuel efficiency) and demand side (with active
congestion management) to lower oil usage in U.S.
transportation
Policy Pros Cons Recommendation
Congestion Tolls Encourages alternate transportation at heavy usage Money for public infrastructure Disadvantage to lower income Impact to neighboring businesses Use only as one lane, not congestion toll areas, allow for alternative routes Advantage to HOV and high efficiency vehicles
20
Policy Recommendations SummaryIncrease Diesel
Options in U.S.
  • Diesel engines are more efficient than comparable
    gasoline engines because of their higher
    compression ratios and auto ignition
  • Diesel cars go on average 30 farther per gallon
    than comparable gasoline cars
  • Pollution problems of the past are not as
    significant with new emission technology and the
    use of ultra low sulfer diesel (ULSD).
  • As of 2007, most stations are required to sell
    ULSD
  • All diesel cars manufactured after 2006 run only
    on ULSD
  • Policies in the U.S. encouraging Diesel engines
    can reduce GHG emissions and oil imports
  • Diesel vehicles account for only .5 of light
    duty vehicles in the U.S. compared to 43 in
    Europe (OECD, 2005)
  • Tax credits and rebates can encourage purchases
    along with equalizing diesel and gasoline taxes

21
Mass Transportation
  • Government intervention will be necessary Taxes
  • Drawbacks
  • People dont like taxes, especially in recession
  • Many places in US not built for it, especially
    rural areas
  • Doesnt benefit me
  • Nobody will use it seems too inconvenient
  • Benefits
  • Can reduce energy use
  • Can benefit all reduce traffic, increase
    property value
  • Can be elastic
  • Increasing fares by 10 causes a 4 decrease in
    usage

22
Mass Transportation is Elastic
23
Transportation Policy Recommendations Federal
Subsidies for Corn-Based Ethanol
Energy return on investment (EROI) for corn-based
ethanol is too low to justify subsidies.
Brad Podkulski CHE 359 Fall 2010
24
Energy Balance for Corn-based Ethanol
Source Department of Energy, http//www.afdc.ener
gy.gov/afdc/vehicles/emissions_balance.html
Net Energy Value (Energy output from fuel) -
(Energy required to produce fuel) One gallon of
ethanol 80,000 BTU
25
Key Summary Points
  • Carbon emissions from petroleum usage are a
    significant problem
  • Plug in Hybrid-Electric vehicles can help to
    remedy these issues for typical commuters.
    Natural gas can reduce the carbon emitted by
    large commercial vehicle fleets
  • To help build a charging infrastructure for these
    vehicles, the government should subsidize the
    charging stations for home users and install
    charging points in public locations (highly
    visible)
  • LNG for commercial vehicle fleets and longhaul
    trucks.

Fred Engelkemeir
26
Policy Summary Slide
Goal reduce foreign oil dependence and fight
climate change
27
CAFE Standards Auto Inspections
  • Wesley Cole

28
CAFE Standards(Corporate Average Fuel Economy)
  • Introduced in 1975
  • Fine of 5.50 per 1/10 mpg rating per car

CAFE Decreased
Last CAFE Change
CAFE Constant until 2004
Minor CAFE Change
29
CAFE (continued)
  • Cost 52 billion
  • Benefits 182 billion in savings
  • 61 billion gallons of motor fuel
  • 655 million metric tons of CO2 emissions

Current 2012 2013 2014 2015 2016
Cars 27.5 33.3 34.2 34.9 36.2 37.8
Light Trucks 22.2 25.4 26.0 26.6 27.5 28.8
Average 24.9 29.7 30.5 31.3 32.6 34.1
30
Auto Inspections
  • Tire pressure
  • Octane rating recommendations
  • General engine performance
  • 7 increase in mpg (max)
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