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.

Related Links

Under the Hood of Cash for Clunkers

  • Congress is trying to work out a bill that would mean bring in a clunker, get cash towards the purchase of a new high mileage car (Photo source: Flicka at Wikimedia Commons)

On Capitol Hill, there’s growing momentum for legislation called “Cash for Clunkers.” In fact, there are several bills circulating in Congress and the details are in flux. But the general idea is to use tax dollars to encourage people to trade their old gas guzzling clunker for a new fuel efficient car. The hope is to help the slumping auto industry and the environment at the same time. Tamara Keith gives the environmental claims a test drive:

Transcript

On Capitol Hill, there’s growing momentum for legislation called “Cash for Clunkers.” In fact, there are several bills circulating in Congress and the details are in flux. But the general idea is to use tax dollars to encourage people to trade their old gas guzzling clunker for a new fuel efficient car. The hope is to help the slumping auto industry and the environment at the same time. Tamara Keith gives the environmental claims a test drive:

At DarCars, a Toyota dealership in Silver Spring, Maryland people are shopping for cars.

But business is down.

Tammy Darvish is vice president of DarCars automotive group. Here’s how she describes “cash for clunkers.”

“It’s money from heaven.”

Well, from angels in Congress anyway. Bring in a clunker, get cash towards the purchase of a new high mileage car.

“I think they were talking about $4,000 or $5,000 or even $2,000. Whatever it is. Any incentive that you could add to the manufacturer incentives and the dealer incentives just make it all the better deal for the customer.”

And as we walk around the lot, Darvish points out plenty of cars she figures could qualify as fuel efficient replacements for clunkers. Like this one that gets 35 miles to the gallon on the highway.

“So here’s a Corolla and it’s not a hybrid technology vehicle and it’s still getting great gas mileage and all the manufacturers have vehicles, you know in those ranges.”

But not everyone is sold on the merits of a cash for clunkers program.

Dan Sperling heads the Institute for Transportation Studies at University of California Davis.

“What it mostly does, and we should be honest about it is it stimulates vehicle sales.”

He says this is more an economic policy with a green polish.

“It is supporting the use of more low carbon efficient vehicles, that’s good. It is supporting the automotive industry. That’s good. The problem is, it’s a very expensive way to do that.”

Whether a federal cash for clunkers program will be able to claim environmental success will largely come down to what counts as a clunker – and just how fuel efficient the car that replaces it needs to be.

For example, one version of the legislation would allow any car 8 years old or older to be junked in exchange for cash.

But an 8 year old car isn’t exactly a gelloppe. That’s younger than the average car on the road.

Bill Chameides is dean of the Nicholas School of the Environment at Duke University.

“I would say that cash for clunkers programs that only put a requirement on the age of a car, from an environmental point of view is a real clunker, if you pardon the pun.”

To really analyze the environmental impact of a program like this Chameides says you also have to consider what it takes to manufacture a new car. And it turns out a lot of greenhouse gas emissions come from building a car.

“When you drive that new car out of the showroom, you already have 1 year of carbon dioxide emissions already in the atmosphere.”

So, to make up for those emissions, he says cars getting junked have to be real gas guzzlers, and the new cars need to be gas sippers.

“If we want to sell this as an environmental program we need to make sure that it’s focusing on really making a difference in the amount of gasoline we use, the amount of CO2 we emit. And therefore we need to have a limit on the miles per gallon of the scrap car. It need to be way down at the bottom of the spectrum. And we need to have a limit on the new car. It needs to be up high on the spectrum.”

There’s disagreement in Congress about what the mileage requirements for the program should be.

It’s one of those details yet to be worked out, that will determine just how green cash for clunkers will really be.

For The Environment Report, I’m Tamara Keith.

Related Links

A New Clean Energy Corps?

Labor and energy groups say they want the federal government to create a Clean Energy Corps. The say the Corps would retro-fit and upgrade old buildings and, as Chuck Quirmbach reports, create a lot of jobs in the process:

Transcript

Labor and energy groups say they want the federal government to create a Clean Energy Corps. The say the Corps would retro-fit and upgrade old buildings and, as Chuck Quirmbach reports, create a lot of jobs in the process:

Some cities and states have programs that work on making older buildings more energy efficient.

Now, progressive think tanks have joined unions and alternative energy groups to ask for a national program.

Bracken Hendricks is with the Center for American Progress. He says it’s critical for the federal government to help pay to make older structures more efficient.

“For a long time, we’ve made great inroads on improving the energy efficiency and the performance of new buildings with tools like green building standards. But we really haven’t had a way to go and systematically block by block retrofit and weatherize homes.”

Hendricks says the clean energy corps would help the umemployed find work in the building and construction trades.

The coalition backing the corps says the money for the program could come from the stimulus package or other upcoming legislation.

For The Environment Report, I’m Chuck Quirmbach.

Related Links

Business Booming at Repair Shops

  • Despite the decline in new car sales, Sales Manager Joe Marken expects more business on the repair and maintenance side of of the dealership. (Photo by Julie Grant)

Not too many people are buying new cars these days. But that’s not all bad news for auto dealers. Julie Grant reports that more car owners are starting to spend money on repair and maintenance:

Transcript

Not too many people are buying new cars these days. But that’s not all bad news for auto dealers. Julie Grant reports that more car owners are starting to spend money on repair and maintenance:

(sound of construction)

Now there’s a sound you don’t hear every day anymore. Especially at a car dealership. It’s construction.

This Toyota Dealer in Kent, Ohio is in the midst of a 12-million dollar expansion.

Sales manager Joe Marken says they’re renovating the repair and maintenance garage. That’s where he’s starting to see the most growth.

“People are looking at, ‘do I want to encumber myself with a 60 month payment of some sort, or do I want to spend X and know that I can get a year or two more years out of whatever I’m doing?'”

Marken says lots of people don’t know if they’ll have a job in the next year or two.

The National Automobile Dealers Association expects more people to spend money on parts and service nationwide this year.

They say there’s an upside – maintenance improves gas mileage and resale value of the vehicle.

For The Environment Report, I’m Julie Grant.

Related Links

A New Life for Old Phones

  • Recellular employee Myron Woods tests phones to see if they can be resold or re-used. Here, he's got a Nokia 6019, the model reporter Shawn Allee dropped off for recycling. (Photo by Shawn Allee)

It’s pretty clear Americans like their cell phones. On average, we get a new one about every
eighteen months. And yet, we hold on to the old ones, too; the government estimates there’re
about one hundred million lying around in closets and drawers. Shawn Allee found people eager
to take your old phones – if only you’d recycle them:

Transcript

It’s pretty clear Americans like their cell phones. On average, we get a new one about every
eighteen months. And yet, we hold on to the old ones, too; the government estimates there’re
about one hundred million lying around in closets and drawers. Shawn Allee found people eager
to take your old phones – if only you’d recycle them:

I put an old phone in a recycling box a while ago.

I checked around and found it went to one of the nation’s largest phone refurbishers.
It’s a company called Recellular. And it’s based in an old auto parts plant in Dexter, Michigan.

“It’s a big open space with a lot of room to handle the 20,000 phones that come in every day.
You need a lot of benches, you need a lot of cubby holes.”

Vice President Mike Newman points to some incoming collection boxes.

“Every box is a mystery. You have no idea what’s in there until you open it up and start
sorting it out.”

Newman’s company is hunting for working phones to resell here or overseas. Before that, his
people sort and test every model of phone.

And workers like Myron Woods remove personal data.

“Contacts, the voice mails, the ringtones, text messages. Hit OK and the phone’s cleared
out. After that you make sure the phone calls out. You get a ringtone, you hear the
operator, and then you’re done.”

Newman: “In 2008 we processed almost 6 million phones and for 2009, we’re looking at
more than double-digit growth again.”

And of those six million phones, Mike Newman says he can sell about half of them. He’d do
better if people like me didn’t keep phones in drawers for so long.

“The longer you wait, the less value it has so, if you move down from that old phone, as
hard as it might be to part with it, it’s really important to recycle it as soon as possible – it
will do the most good.”

What about Newman’s other phones – the duds? He has a different company near Chicago
recycle them.

Allee: “And here they are … holy mackerel.”

I’m now at Simms Recycling Solutions. A conveyer belt is moving thousands of phones.

“There’s the end of the line for your cell phones.”

Mark Glavin is the VP of operations here. He says there’s gold, silver, and other metals in the
phones he gets from Recellular.

“The cell phones get shredded into somewhat uniform-sized pieces.”

Glavin sticks the pieces in an oven to burn off the plastic – and then grinds what’s left.

Glavin: “That’s what’s left of the cell phones.”

Allee: “It’s almost like the powder you use for a baby, except its black.”

Glavin: “Yes.”

Glavin says there’s gold and other metal in the powder – so metal companies will buy it.

He also has stubborn chunks of metal that won’t grind.

“Those get pulled off and then those go to the furnace room to be melted.”

Glavin: “This is appropriately named the furnace room, where all the melting goes on. It
gets nice and toasty in here in the winter time.”

Allee: “Wow, what are we seeing here?”

Glavin: “After the material has been melted, we’ll cast it into molds and into 30-40 pound
ingots.”

He’ll sell metal from these ingots along with that black powder.

Recellular and Glavin’s company recovers about 96 pounds of gold from its phones each year.

Plus, that gold’s worth more than a million dollars. And recycling saves energy, and prevents
pollution from gold mining.

Glavin says recycling is taking off, and he can always count on people wanting the latest and
greatest phones.

Glavin: “Pretty soon your cell phone will be a chip like, on an ear-ring and a watch, and
there’s nothing to it except for a very tiny electronic.”

Allee: “And people will still swap it for the next one.”

Glavin: “Without a doubt.”

For The Environment Report, I’m Shawn Allee.

Related Links

Shops Happy With New Lead Rule

  • A lead detector finds over 5000 parts per million of lead in this toy. (Photo by Lisa Ann Pinkerton)

Kids consignment shops have been worried about a new law limiting lead and other chemicals in children’s products.
Julie Grant reports store owners are glad to finally have some answers from the federal government:

Transcript

Kids consignment shops have been worried about a new law limiting lead and other chemicals in children’s products.
Julie Grant reports store owners are glad to finally have some answers from the federal government:

Amanda Cingle in is manager at Once Upon a Child. It’s part of a franchise of 300 stores that sell used items for kids.

She says the owner was concerned the new law would mean they’d have to throw out their existing inventory – or spend many thousands of dollars having it all tested for chemicals.

But now the government’s Consumer Products Safety Commission says the law will only applies to new products, not those being re-sold.

“We’re so relieved. We don’t have to worry anymore. The owner’s worry was that she was going to have to close her doors and never reopen.”

Cingle says the store has an environmental mission – to reuse and recycle products – so she’s glad they don’t have to throw everything away.

But she’s also pleased that new products will be made with less harmful ingredients.

For The Environment Report, I’m Julie Grant.

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Flex-Fuel Cars Often Burn Gas

  • The seven million or so Flex Fuel Vehicles are just a small portion of the 200-million or so vehicles in the American fleet, but there could many, more in the future. (Photo by Shawn Allee)

For most drivers, filling up at the
pump’s a pretty easy operation – you drive
up, you fill up, and you drive out. But people
who have Flex Fuel Vehicles have another choice.
They can fill up on gas or E-85, that 85 percent
ethanol blend – if they find the right station.
Shawn Allee reports a lot more of us
could have to make that same choice in the future:

Transcript

For most drivers, filling up at the
pump’s a pretty easy operation – you drive
up, you fill up, and you drive out. But people
who have Flex Fuel Vehicles have another choice.
They can fill up on gas or E-85, that 85 percent
ethanol blend – if they find the right station.
Shawn Allee reports a lot more of us
could have to make that same choice in the future:

I’m at a car lot in my home town. I’m not actually in the car market, but I am
curious what these E85 compatible Flex Fuel vehicles look like. I don’t own one
myself.

Anyway, I’m here with Edgar Moreno. He sells cars on this lot. He’s gonna show
me one of these vehicles here.

Allee: “Edgar, what can you show me?”

Moreno: “The Chevy Impala.”

Allee: “I actually don’t see anything that would tell me it’s a Flex-fuel vehicle.”

Moreno: “Usually it says on the gas cap whether you can use E85 or not.”

(sound of twist)

Allee: “It’s bright yellow. It says E85. In fact it says E85-slash-gasoline. What does
that mean?”

Moreno: “You can fill it with either, or.”

Allee: “How many stations are there available where I could fill this Impala up with
E85?”

Moreno: “I think there’s one in the area, but you have to drive quite a bit to get
there.”

Allee: “So, it’s one of those situations where, if I take this Impala off the lot, I could
still use it at a regular gas station, but I might have to search around for an E85
station?”

Moreno: “Yes, you do. Yep.”

Congress and both presidential candidates are considering making every car a Flex
Fuel Vehicle.

Detroit has spent a lot of money promoting E85 vehicles, and you might think they’d
be in favor of this.

Well, I called Ford Motor Company about this and found out that’s not the case.

“You could mandate every vehicle on the road to be a flex fuel vehicle. It would be a
great cost to our industry.”

Curt Magleby is Ford’s point-man on ethanol regulations.

He says if Congress gets its way there’d be more Flex Fuel Vehicles, but not necessarily
more E85 pumps.

“So you can mandate the vehicle side, but unless there’s a real focus on distribution,
it’s wasted money – we’d be putting dollars on the hoods of our vehicles for no
reason.”

So, Ford and the other car makers could make less profit on Flex Fuel Vehicles if there’s
a mandate.

At one time, they got government incentives to build Flex Fuel Vehicles, but those will
phase out.

So there’d be no benefit for the automakers.

And there’s another twist in the E-85 story.

The fuel industry is pushing to distribute ethanol in a way that might not require flex fuel
cars at all.

This is a little technical, but most gas already has 10% ethanol in it.

The fuel industry wants to sell 20% or even 30% ethanol blends because it saves oil
companies money. The government subsidized ethanol is cheaper than refining oil for
gasoline.

Ford and other car-makers are fighting this.

Magleby says burning E-20 or E-30 blends would be a disaster for existing cars.

“Ethanol is corrosive and it burns hotter, so you have to have a different fuel tank.
You have to have stainless steel fuel lines. You have to have hardened valves in your
engine.”

Car companies say burning 20% or 30% ethanol blends could hurt existing cars.

Scientists are checking whether that’s the case.

In the meantime, Congress is deciding exactly how it will promote ethanol.

It could mandate all cars be E85 Flex Fuel vehicles or it could promote lower-level
ethanol blends in gasoline.

Either way, over the next few years, we’re going to see big changes in our cars or our gas
pumps.

For The Environment Report, I’m Shawn Allee.

Related Links

To Dam or Not to Dam

  • Residents on Boardman Pond are upset about the water level dropping after the pond was drawn down because of safety concerns at a nearby dam. Homeowners here are worried that if the dams are taken out, they'll lose their waterfront property permanently. (Photo courtesy of Jim and Joane McIntyre)

America has been a country that builds
dams. There are more than 75,000 major
dams in the US. But now, a lot of those dams
are getting old and they’re breaking down.
That means people who live near those dams have
some choices to make. Rebecca Williams has
the story of neighbors who are debating what
to do with their river:

Transcript

America has been a country that builds
dams. There are more than 75,000 major
dams in the US. But now, a lot of those dams
are getting old and they’re breaking down.
That means people who live near those dams have
some choices to make. Rebecca Williams has
the story of neighbors who are debating what
to do with their river:

We’ve built dams for good reasons – they can produce electricity and help
control floods. But a lot of the dams in the US are 50 or even a hundred years
old. In dam years, that’s really old.

“Right now we’re sittin’ on an earthen dam, which is Union Street dam.”

Sandra Sroonian lives in Traverse City, Michigan. It’s a touristy town on a
bright blue bay of Lake Michigan. The Boardman River flows into the Great
Lake and it cuts right through town. There are four old dams on the
Boardman.

The utility company that licensed those dams decided they weren’t profitable
anymore. So they gave up the licenses, and now the city and county are trying
to decide what the heck they’re gonna do with the dams.

Sroonian is an engineer who’s turned into a mediator of sorts. She’s helping
people here sort through all the options. Some of the dams could be made to
generate power again, or some of the dams could be taken out to restore the
river to a more natural state. The water would be faster and colder.

“So depending if you’re a fisherman or fisherperson you may feel it’s a benefit
to remove the dams to improve the fishing along the river.”

She says other people want a whitewater park to kayak on.

But the Boardman is a blue ribbon trout stream, it’s one of the best. Biologists
say it’d be even better without the dams.

And then, there are the people who say they have the most to lose if the dams
are taken out.

(sound at Boardman Pond)

Jim and Joane McIntyre live on Boardman Pond.

“When we bought this house 14 years ago it never entered our minds that we
wouldn’t always be on this wonderful little piece of paradise.”

McIntyre says if the dams are taken out, their pond will be drained. They’ve
actually gotten a taste of that already. Because of safety concerns at one of the
dams the water level in the pond was lowered. The McIntyre’s dock is 25 feet
above the water. They can’t even get their boat out on the water.

“We would be having this interview floating around on our electric deck boat
with an adult beverage (laughs). But we’re not able to do that. So from that
standpoint we’ve lost some of the attractiveness of living on water – it’s
beautiful but we want to use it.”

The McIntyres say they want what’s best for the river. But they also want to
keep their waterfront property. And they say it’d make more sense to produce
electricity from the river.

And that’s what this debate is boiling down to: energy versus property rights
versus the environment versus the economy.

Mike Estes is the Mayor of Traverse City. He says boosting the local economy
matters most.

“We’re trying to increase tourism here. Traverse City is already a destination
spot for people to visit – they visit because of our golden sand beaches and the
bay. Adding the river to it is simply going to add to that mix.”

This dam debate has lasted more than three years – there’ve been lots of studies
and dozens of public meetings. Some people here joke they won’t be alive by
the time the whole thing gets resolved.

But a decision on this Michigan river is expected by the end of the year. Most
people think it’ll be a compromise – maybe keep some of the old dams, take
some out.

A lot of towns close to rivers all across the nation will be having these same
debates.

And you can bet that not everyone’s going to be happy.

For The Environment Report, I’m Rebecca Williams.

Related Links

Little Relief for Asthmatics

  • This commonly-prescribed albuterol asthma inhaler will soon be a relic of America's medical past. The federal government fears the device's chlorofluorocarbon-based (CFC) propellent harms the ozone layer. (Photo by Shawn Allee)

We usually expect environmental
regulations to make us healthier in the
long run. Well, there’s one coming down
that some people aren’t so sure about.
Reporter Shawn Allee says it has to do
with propellants in asthma medicine:

Transcript

We usually expect environmental
regulations to make us healthier in the
long run. Well, there’s one coming down
that some people aren’t so sure about.
Reporter Shawn Allee says it has to do
with propellants in asthma medicine:

Maureen Damitz struggles with asthma.

She’s got it and two of her kids do, too.

But fighting it is also a career.

Damitz is with the Respiratory Health Association of Metropolitan Chicago – it’s the
nerve center for asthma issues in her area.

She says recently, pharmacies have been running out of a familiar asthma inhaler.

“Our phones started ringing off the walls months ago. All of a sudden patients
started getting these new inhalers, and no one was prepared for that.”

The old-standby has been the albuterol inhaler – it’s for quick relief.

Damitz says there is a cheap generic, but it’s got a propellant with Chloro-fluoro-carbons
or CFCs.

And, the government’s banning CFC albuterol inhalers.

Damitz says some patients will miss them.

“When you’re spraying it, it comes out with quite a blast.”

(puff, puff)

“People mistake that as, ‘it forces it into my lungs’; it doesn’t, it’s just the type of
propellant.”

Three new inhalers have the same medicine but a different propellant, known as HFA.

“The new HFA comes out much softer and its warmer when it comes out. They
mistake that as, ‘Oh, my medication doesn’t work.’”

Damitz says studies show the new inhalers work just as well or better than old ones, but
some patients report just the opposite.

Regardless, no one will have a choice soon. By January, no pharmacy can sell albuterol
inhalers with CFC propellents.

Why?

“Originally it arose from the concern that CFC’s were damaging the atmosphere.”

Dr. Nicholas Gross is an asthma specialist.

He says CFCs used to be in many things – refrigerators, air conditioners, and asthma
inhalers.

But CFCs deplete the ozone layer in the upper atmosphere. That lets more solar radiation
through and causes skin cancer.

The government banned CFCs in most products.

But drug companies got exemptions and were slow to develop alternative propellants.

In 2005, the government asked a medical panel to speed things up.

“They were concerned nothing much was changing. It looked like companies were
going to keep claiming exemptions indefinitely, so they asked what we would
recommend they should do about that.”

Gross and other panelists found three competing albuterol inhalers with new propellents.

So, they recommended a ban start next year. Now, Dr. Gross regrets that ban.

“One thing I don’t think anybody paid enough attention to was the fact that it was
going to be much more expensive in the HFA version than the CFC version.”

CFC-based albuterol inhalers cost about thirteen bucks a pop.

New HFA ones cost three times that.

There won’t be a generic inhaler with the new propellant until 2010.

Dr. Gross worries some patients will go without.

“I think it’s very difficult for the FDA to turn around and rescind itself. It means
somebody made a mistake and in government that’s not something you’re allowed
to admit.”

But, the FDA is sticking with the ban.

One asthma expert is more at ease with the transition.

He’s Paul Greenberger – head of the Academy of Allergy, Asthma and Immunology.

He says if patients puff through new, expensive albuterol inhalers quickly – there might
be something wrong with how they’re using them.

“We don’t want people using them everyday if they can help it. We have to take a
look at their overall asthma control – do they need better therapy, frankly than
these albuterol inhalers?”

Of course, that might mean a doctor’s visit and new meds.

Dr. Greenberger says all of this is expensive, but he still supports a ban on CFC albuterol
inhalers.

He says if patients get treatment that’s also better for the atmosphere, well, that’s
priceless.

For The Environment Report, I’m Shawn Allee.

Related Links

Fuel Economy Standards So Unreal

  • CAFÉ standards are based on fuel economy tests from the 1970s. (Photo by Ed Edahl, courtesy of FEMA)

Congress recently increased the Corporate Average

Fuel Economy standards, or CAFÉ standards. The new standard calls

for a car company’s entire fleet to average 35 miles per gallon

by 2020. But Mark Brush reports – there’s a problem with these

standards:

Transcript

Congress recently increased the Corporate Average

Fuel Economy standards, or CAFÉ standards. The new standard calls

for a car company’s entire fleet to average 35 miles per gallon

by 2020. But Mark Brush reports – there’s a problem with these

standards:

CAFÉ standards are based on fuel economy tests from the 1970s.

But the way people drive has changed a lot since then.

Engines are more powerful, people drive faster, and more cars use air conditioning.

That means these old tests don’t reflect the gas mileage we get today.

Experts say car companies are really averaging anywhere from 20 to 30% less than the
standards called for.

Jim Kliesch is with the Union of Concerned Scientists. He says the system should
change.

“If your representative is standing on Capitol Hill and telling you that they’ve raised
standards to 35 miles per gallon, you’d like to go out and buy a vehicle that can average
35 miles per gallon. Not one that averages 26, 27, 28 miles per gallon.”

There is a more accurate test available today.

Kliesch says it could be used to set CAFÉ standards if members of Congress require it.

For The Environment Report, I’m Mark Brush.

Related Links