New Gas Mileage Rules for Cars and Trucks

  • Automakers will have to get into the electric and hybrid vehicle business to meet the new requirements. (Photo courtesy of the Natural Renewable Energy Laboratory, Warren Gretz)

The Obama administration has set new rules requiring cars and trucks to get better gas mileage. Tracy Samilton reports that
will make vehicles both greener and more expensive.

Transcript

The Obama administration has set new rules requiring cars
and trucks to get better gas mileage. Tracy Samilton reports that
will make vehicles both greener and more expensive.

In ten years, automakers will have to reach an average 35 and a half
miles per gallon for their combined car and truck fleet. To get
there, most will get into the electric and hybrid vehicle business, if
they’re not there already. But that technology is expensive. So
they’ll also make regular internal combustion engines more efficient.

Even that isn’t cheap. So who will end up paying for it all? You
guessed it. You and me.

Michael Omotoso is an industry analyst with J.D. Power and Associates.

“If we say we want a cleaner environment, and reduce our
dependence on foreign oil, one way or the other, it’s going to cost us.
Everyone has an opinion about how much more we’ll pay for vehicles
because of the rules.”

The Obama administration and environmentalists say about a grand. Analysts like Omotoso say it could be more like five grand.

For The Environment Report, I’m Tracy Samilton.

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Oil and Prices at the Pump

  • Right now, we’re paying anywhere from 70 cents to a dollar more per gallon than this time a year ago. (Photo courtesy of the National Renewable Energy Laboratory)

Energy analysts say a glut of
oil means gas prices probably
won’t spike too much this year.
Rebecca Williams has more:

Transcript

Energy analysts say a glut of
oil means gas prices probably
won’t spike too much this year.
Rebecca Williams has more:

We’re paying anywhere from 70 cents to a dollar more per gallon than this time a year ago. The good news is, we’re not likely to see four dollar-a-gallon gas anytime soon.

“We’re not in a world with runaway oil prices.”

That’s Ruchir Kadakia. He’s a global oil market expert with IHS Cambridge Energy Research Associates. He says weak global demand is keeping oil prices in check for now. At the same time, supply is relatively high. He predicts oil won’t average much higher than 80 dollars a barrel for the next year or so.

“And so what that really means for the gasoline point is through probably 2011, we shouldn’t expect to see gasoline prices much above three dollars unless it’s for a short period of time maybe in the summertime for a few months.”


Kadakia says oil speculators can drive prices higher or lower in the short term. But he doesn’t think we’ll see any major price spikes over the long term.

For The Environment Report, I’m Rebecca Williams.

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The Attractiveness of Ethanol

  • The government will soon decide whether to allow increasing the mix from the current 10% blend to as high as a 15% blend. (Photo courtesy of the National Renewable Energy Laboratory)

Cheap oil makes switching to alternative
fuels such as ethanol less attractive.
Lester Graham reports that could affect
an upcoming decision about using more
ethanol:

Transcript

Cheap oil makes switching to alternative
fuels such as ethanol less attractive.
Lester Graham reports that could affect
an upcoming decision about using more
ethanol:

Crude oil prices spiked a little because of Iran’s long-range missile testing and revelations of a secret nuclear facility.

But analysts think for the next several months we’ll actually see oil prices go down – maybe to around $30 a barrel, less than half of what it is now.

And that could hurt demand for fuels such as ethanol.

But the government has mandated the nation produce more ethanol.

Dan Flynn is an analyst with the trading firm, Alaron.

“Obviously the government definitely wants to push this through. However, the price of crude oil and gasoline, if that goes down, generally people look not to look for alternative sources of energy.”

One way to use more ethanol is to mix higher amounts with gasoline.

The government will soon decide whether to allow increasing the mix from the current 10% blend to as high as a 15% blend.

For The Environment Report, I’m Lester Graham.

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Sampling a New Crop: Sugar Corn

  • Todd Krone researches corn for Targeted Growth, a bio-energy company. Targeted Growth is tweaking corn genetics to produce 'Sugarcorn,' a variety with high amounts of sugar and biomass. The hope is the plants can be converted into ethanol cheaply. (Photo by Shawn Allee)

The federal government wants more
and more ethanol in our fuel supplies,
but it worries about how its made.
Most American ethanol is made from
corn kernels. That’s inefficient
and it makes the ethanol and food
industries compete for corn. The
government’s mandating we start making
ethanol out of things other than corn
kernels. Shawn Allee looks
at one effort to meet that mandate:

Transcript

The federal government wants more
and more ethanol in our fuel supplies,
but it worries about how its made.
Most American ethanol is made from
corn kernels. That’s inefficient
and it makes the ethanol and food
industries compete for corn. The
government’s mandating we start making
ethanol out of things other than corn
kernels. Shawn Allee looks
at one effort to meet that mandate:

I’m just outside an ethanol plant in central Indiana and its pretty much like most ethanol
plants. There’re a lot of semi-trucks going by and they’re loaded with yellow corn kernels.


Most ethanol plants grind corn kernels for starch, they let that starch turn into sugar, then
they brew the sugary juice into ethanol. Now, this whole process would be easier and
cheaper if we could make ethanol directly from sugary plants instead of starchy grain
kernels like corn.


Pretty quick here, I’m gonna meet a guy who’s trying to make corn a plant that’s easy to
grow in the Midwest but produces sweet juice – not starchy corn kernels.

“If you walk over here, these are our sugar corn hybrids.”

I’m with Todd Krone. He’s a researcher with a company called Targeted Growth. He walks me
through a test plot of a plant nicknamed ‘Sugarcorn.’ He pulls off a ear of corn and pulls back the
leaves.

(sound of leaves being pulled back)

The ear is almost bare.

Allee: “There’re just a few stray kernels developing, very few.”

Krone: “Yep. A few got through.”

Krone says this plant avoids making corn kernels. Instead, it puts energy and sugar into the
stalk. He can prove it with a taste test – right here in field.

He snips a piece of stalk.

(sound of snipping)

And pulls out a little press.

Krone: “You squeeze some of the juice to see how much sugar’s there. It’s up to you, if
you like, you could put on on your finger and taste. Is there sweetness?”

Allee: “Yeah, it’s definitely sweet. It’s definitely got a sweet tinge to it.”

Krone: “It might be a bit sweeter than pop might be.”

Krone says tests show Sugarcorn juice is as sweet as juice from sugar cane. He says this means
America could have a new plant that boosts ethanol production – but doesn’t compete with food,
and uses equipment farmers already have.

Krone: “For the farmer, not much changes until harvest when some logistics still need to
be worked out.”

Allee: “Obviously if you’re selling a lot of this corn, you’d be making a good deal of profit,
hopefully, what’s in it for the rest of us in terms of the success or failure of this, for drivers
and everybody else?”

Krone: “I would say, hopefully, it results in cheaper ethanol that can compete with cheap
oil. And then meeting that mandate to get more and more ethanol produced.”

Well, that’s the idea, but Targeted Growth would have to change more than just corn plants to
succeed. They’de have to change how at least some ethanol companies do business. And some
ethanol companies have some tough questions about it.

“How could you handle sugarcorn? How would you store it?”

This is Jeff Harts. He works at Central Indiana Ethanol. Harts says he likes the idea of using
sweet corn juice to make ethanol – it could be efficient. But he worries about getting enough to
run an expensive operation like his. He has no problem finding corn kernels.

“It’s a consistent flow of corn and we need that consistent flow to keep going. That’s why
we have storage, the farmers have storage. That’s why we have a local grain elevator
network to ship corn to us to keep that flow steady 12 months out of the year.”

Harts’ company might be a bit reluctant to change right away, but ethanol producers will have
find alternatives to the corn kernel. The government is capping how much ethanol can come
from corn starch.

As those requirements phase in, alternatives like Sugarcorn might look sweeter than they do
now.

For The Environment Report, I’m Shawn Allee.

Related Links

No Cars Left for Cash for Clunkers

  • Dealers across the country are running out of new cars to sell that qualify for the program. (Photo source: IFCAR at Wikimedia Commons)

Two billion dollars is being added to
the very popular Cash for Clunkers
program. The original one billion dollars
is almost gone. But, Lester Graham
reports, there’s a shortage of new cars
that qualify for the program:

Transcript

Two billion dollars is being added to
the very popular Cash for Clunkers
program. The original one billion dollars
is almost gone. But, Lester Graham
reports, there’s a shortage of new cars
that qualify for the program:

The National Automobile Dealers Association says they’ve been hearing from dealers across the country who’ve been running out of new cars that qualify for the program.

Steve Demers is the General Manager of Cueter Chrysler Jeep Dodge in Ypsilanti, Michigan, a state where Cash for clunkers has been especially popular.

“There’s virtually no vehicles available, so there are other areas in the country that may not be as – the program has not been as popular – so we’re able to pluck some of that inventory out of their states, but it’s a nation-wide problem. I mean, we’re out many, many states away, thousands of miles before we can find a vehicle that can be brought in for one of our custormers.”

Factories are shipping more cars to the dealers but can’t keep up with demand.

185,000 gas-guzzling clunkers have been turned in to be scrapped in exchange for the government incentives.

Car buyers get up to 4,500 dollars toward buying a new fuel-efficient model.

For The Environment Report, I’m Lester Graham.

Related Links

Pitching Diesels as an Eco-Friendly Option

  • VW's Jetta TDI - a diesel that the EPA estimates at 40 miles per gallon (Photo by Julie Grant)

If you’re thinking about buying a cleaner, more fuel-efficient
car, you might think a hybrid is your best option. But some
automakers want people to look at an older technology when
they’re looking for green cars: the diesel engine. Julie Grant
reports:

Transcript

If you’re thinking about buying a cleaner, more fuel-efficient
car, you might think a hybrid is your best option. But some
automakers want people to look at an older technology when
they’re looking for green cars: the diesel engine. Julie Grant
reports:

Lots of automakers make diesel cars – BMW, Ford, General
Motors, Volkswagen. But they sell most of them in Europe,
not the U.S. Diesel engines have a bad rap here.

Just ask Jerry Doble; he used to drive a diesel truck.

“They’re noisy and they’re smelly and they’re hard to start in
the winter. And that’s about it, I guess.”

But Doble hasn’t seen the new diesel cars making their way
from Europe.

Mike Omotoso is an auto industry analyst with JD Power and
Associates.

He says diesel carmakers have lowered their tailpipe
emissions. They’ve put in extensive filtering systems. Plus,
the fuel, itself, is cleaner than it used to be.
Diesel used to have lots of stinky sulfur – up to 500 parts per
million – now it has only 15 parts per million.

But Omotoso says when most Americans think of clean cars,
diesels aren’t the first thing that come to mind.

“When people think of clean vehicles they think of the Prius
first, and then they think of Toyota and they think of Honda
as well. The manufacturers, especially the German
manufacturers, are having to do a job catching up to the
positive publicity of hybrids. So they have to persuade the
American public that diesels can be clean as well.”

That’s why you may have seen those Volkswagen
commercials on TV – where one neighbor has a Prius, and
the other a new Jetta TDI-diesel:

VW: “A TDI set a Guiness World Record – 58 miles per
gallon.”

Prius owner: “58 miles per gallon!”

VW: “But this baby hauls. It’s like errr…errr… What does
your Prius sound like?”

Prius owner: (sound of quietly exhaling)

VW: “Oh. That’s cool.”

There’s a couple of things going on in that commercial.
It’s pushing the diesel as a green car. It’s also trying to
dispel the image of diesels being slow and clunky. They’re
trying to push diesels as green, muscle cars.

At this Volkswagen dealership, salesman Aaron Heinlein
says these commercials are having some success.

He says the only people who used to buy diesels worked
with the railways, in construction, or on farms. But this
week, he sold a TDI Jetta to a dietician.

“She would be the customer that, if she came in four years
ago, I would have said, ‘wow, you want to look at a diesel?
Cool, I’ll show you one.’ Now it’s just, that’s the norm. It’s
the lawyer, it’s the dentist, it’s the traveling salesperson who
is in their car a lot and needs better fuel mileage that you
wouldn’t have seen four years ago.”

Diesels cars still makeup less than 1% of the market.

Americans want power and speed and that’s not how they
think about diesel engines. Things are different in Europe,
where gas is upwards of $8 per gallon and consumers are
focused on good gas mileage.

Auto industry analysts are expecting to see a jump in diesel
sales in the U.S. in the next few years.

But JD Power and Associates doesn’t expect all this
marketing to make a huge dent in American car sales.
They’re forecasting diesel car sales at 4% to 5% of the
market by 2016.

That’s when the new federal fuel standards take effect.

For The Environment Report, I’m Julie Grant.

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Speculators Cause Spike in Oil Prices

The price of a barrel of oil has jumped
up from $45 to nearly $70 in just
three months. And gas prices have been
creeping up too. Rebecca Williams reports
these prices are out of sync with the usual
rules of supply and demand:

Transcript

The price of a barrel of oil has jumped
up from $45 to nearly $70 in just
three months. And gas prices have been
creeping up too. Rebecca Williams reports
these prices are out of sync with the usual
rules of supply and demand:

Right now there’s a huge glut of supply of oil – and at the same time, weak global demand for it.

Ruchir Kadakia is a global oil market expert. He’s with Cambridge Energy Research Associates.

He says speculators are driving oil prices up.

“People believe that with positive economic growth in the future there will be greater demand for oil. So they start to buy up oil in anticipation of that demand recovery.”

So these speculators are making money while most of the economy is in a slump.

But Kadakia thinks the realities of supply and demand will eventually catch up and drag oil prices back down.

“The pain we’re feeling at the pump today is probably going to be the worst we feel all this summer.”

He thinks gas prices might actually get back below two dollars a gallon.

For The Environment Report, I’m Rebecca Williams.

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Compromise on Cash for Clunkers

  • In order to qualify an old vehicle must get less than 18 miles per gallon. (Photo source: IFCAR at Wikimedia Commons)

After a meeting with the White House, Members of Congress appear to be close to a deal
on a so-called “cash for clunkers” program. But Tamara Keith reports critics say the
compromise members have come up with won’t do much for the environment:

Transcript

After a meeting with the White House, Members of Congress appear to be close to a deal
on a so-called “cash for clunkers” program. But Tamara Keith reports critics say the
compromise members have come up with won’t do much for the environment:

The “cash for clunkers” program has wide support as good for the environment; good for
the ailing auto industry.

Car owners would get a voucher towards a new fuel efficient car when they scrap their
old gas guzzler. In order to qualify an old vehicle must get less than 18 miles per gallon.
But a new car that does just 4 miles per gallon better earns a $3,500 reward. A
10 MPG improvement brings $4,500.

Critics say many of the new replacement vehicles would fall well short of the
government’s average fuel economy standards.

Congressman John Dingell from Michigan says the critics are missing the point: the new
cars will be more fuel efficient than the ones that are getting junked.

“What they aught to ask is, ‘what is this going to mean in terms of increased fuel
efficiency and reduced CO2 emissions.’ The result will be substantial.”

Of course the deal isn’t really done until it is approved by Congress. If it passes, the
President is expected to sign it.

For The Environment Report, I’m Tamara Keith.

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A Hummer That Gets 100 MPG

  • Raser Technologies has been showing off its electric hummer that can get 100 miles per gallon. (Photo courtesy of Raser Technologies)

A technology company is showing off its 100 mile-per-gallon Hummer to Wall Street. Lester Graham reports:

Transcript

A technology company is showing off its 100 mile-per-gallon Hummer to Wall Street. Lester Graham reports:

Today, the honor of ringing the opening bell at the New York Stock Exchange went to Raser Technologies – and the company brass parked a Hummer-H3 out front.

It’s powered by Raser’s completely electric drive-train. The system uses a gas-powered engine, but only for generating electricity to recharge the battery.

David West is the Vice President of Marketing at Raser Technologies. He says they modified a Hummer, but that’s just one example.

“It was designed appropriately not just for the Hummer H-3, but it’ll power a Ford F-150, a Chevy Silverado, a Dodge 1500. These are the top-selling vehicles in America.”

Raser Techonologies side-steps questions about price, saying if automakers used the system in a production model, a vehicle’s price would be in the range of a fully-equipped pick-up or SUV.

For The Environment Report, I’m Lester Graham.

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New Fuel Economy Standards

  • Right now, cars get an average 27 and a half miles per gallon. By 2011, they'll have to get 30.2 (Photo by Ben VonWaggoner)

The U.S. Environmental Protection Agency issued new vehicle fuel economy standards for cars and trucks. As Tracy Samilton reports, it’s the first change since 1985:

Transcript

The U.S. Environmental Protection Agency issued new vehicle fuel economy standards for cars and trucks. As Tracy Samilton reports, it’s the first change since 1985:

Right now, cars get an average 27 and a half miles per gallon. By
2011, they’ll have to get 30.2. Light trucks, including SUVs, will
have to get 24.1 miles per gallon, up a mile per gallon.

Eli Hopson
is with the Union of Concerned Scientists. He says the change is not
dramatic but it’s still an important milestone.

“The car standards haven’t
changed. They’ve been at 27.5 for over twenty years. It is a big deal. It’s
been a long time in coming.”

Carmakers are prepared for the new standard and say they’ll meet it.
Future standards will be tougher.

Auto companies usually complain
when mileage standards are raised. But times have changed, especially
for Chrysler and GM. They might not be as vocal since accepting
billions in federal loans.

For The Environment Report, I’m Tracy
Samilton.

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