The Bush administration’s new fuel economy
standards mean more fuel efficient cars in the
future. But Lester Graham reports some
environmentalists say it would have been better
for the environment and the economy if the standards
would have required more fuel efficiency:
Transcript
The Bush administration’s new fuel economy
standards mean more fuel efficient cars in the
future. But Lester Graham reports some
environmentalists say it would have been better
for the environment and the economy if the standards
would have required more fuel efficiency:
The standards call for a fleet-wide average of close to 32 miles per gallon by the year 2015.
Environmentalists say the first three years of the five year plan calls for an increase of
one and a half miles per gallon each year. But the last two years only require about a
half a mile improvement each year.
Jim Kliesch is with the Union of Concerned Scientists
“The fact that those numbers
trail off very quickly is a canary in the coal mine that something is amiss in their cost-
benefit analysis.”
The government’s cost-benefit analysis weighs whether more expensive technology –
such as a hybrid drive train – is worth the effort: will it save that money in gasoline.
But
the government’s cost benefit analysis predicted gas prices by 2015 would be about
$2.25 – more than a dollar a gallon less than we’re already paying. Using those prices,
the analysis short-changes the advantages of fuel saving technology.
For The Environment Report, this is Lester Graham.
Front view of a semi-truck (Photo courtesy of the Federal Highway Administration)
With diesel prices above four dollars a
gallon, truck drivers are looking for ways to reduce
fuel consumption. Lester Graham reports some new
technology might help:
Transcript
With diesel prices above four dollars a
gallon, truck drivers are looking for ways to reduce
fuel consumption. Lester Graham reports some new
technology might help:
Manufacturers have been making trucks more aerodynamic. But, the trailers they haul
are not. In Holland they’ve found a way to reduce the drag caused by turbulence under
and around the trailers.
At the Delft University of Technology, researcher Michel van Tooren says properly
designed side-skirts – those are panels down low on truck trailers – make them more
aerodynamic.
“Of course side-skirts are not something new in the transport world. They are available.
Even McDonald’s has used for a while, trucks with side-skirts. The thing is that this
specific device has an aerodynamic trick on the front that makes it much more efficient.
Yeah, it really seems to work.”
Van Tooren says it cuts fuel use by an average of 7.5%, but some drivers have reported
a 15% savings in fuel.
For The Environment Report, this is Lester Graham.
Advanced, individual meters that calibrate energy prices for each apartment. (Photo by Samara Freemark)
Energy prices are rising, and people are looking
for ways to conserve power. But some rate payers are
saving money without actually cutting their energy use.
Instead they’re changing when they use power. Samara
Freemark reports:
Transcript
Energy prices are rising, and people are looking
for ways to conserve power. But some rate payers are
saving money without actually cutting their energy use.
Instead they’re changing when they use power. Samara
Freemark reports:
It’s Saturday morning, and Ellen and Peter Funk are doing laundry.
The Funks used to do chores when most people do – they would get home from work and
switch on their dishwasher, dryer, and computer. They never really paid attention to
what that meant for their electricity bill.
“I never thought about electricity before. Never, never, never. Except when I got the bill.
But, you didn’t have any control. Because you paid the same price whether you used it at 2 in
the morning or 2 in the afternoon.”
But a couple of years ago the Funks started paying for their electricity differently than the
rest of us. They live in one of only a handful of buildings in New York City that
participate in a Real Time Pricing program.
Real Time Pricing charges consumers a different rate depending on when they use power.
The Funks know that running their dishwasher or turning on a light will cost more at 5
pm than at 10 pm. That’s because they get a color-coded chart every month that breaks
down their energy prices by time block.
“The green here is low. And the green starts at 10 o’clock at night and goes through 1
o’clock the following afternoon. The yellow is medium from 2 to 5 every day. And then
Monday to Friday there’s a high period from 5 to 9. That means stop. I think that’s why
they used red.”
It’s the same concept that makes cell phone minutes cost more during the day. Power
costs more when more people want to use it.
Real Time Pricing can save consumers a lot of money. Peter Funk says his family saves
hundreds of dollars a year by just shifting when they use energy.
“It’s an ongoing savings. We do these things because they make sense economically. We
don’t do it because we’re virtuous, we don’t do it because we’re better than our neighbor.
We just, this is the way we buy electricity because it makes sense.”
Real Time Pricing programs shift around power demand, so fewer people use energy
during peak hours. A Department of Energy study earlier this year estimated that Real
Time Pricing programs could cut peak energy use by about 15%.
That could actually help regions improve air quality and conserve resources by
decommissioning old, polluting power plants. Here’s how.
Most areas have a network of power plants. Usually only a few of those plants – the
newest, cleanest ones – are in use. But when energy demand peaks, the older, less
efficient plants kick in. And those plants spew a lot of carbon dioxide and other
pollutants into the air.
“It’s really not the number of power of power plants, but the ones you have to turn on at
critical times.”
Jim Genarro is a New York City councilman. He also chairs the council’s Committee on
Environmental Protection.
He says the plants that kick in when demand peaks are the worst in the system.
“We have a lot of reserve capacity in the city, but these are the older, dirtier plants, and
when you run those at peak capacity, it really means a lot of pollution.”
And Genarro says those plants cost even when they’re not producing energy. The city
has to maintain them all the time so they can switch on when needed. That wastes energy
and resources. It also means there are power plants that are only used a few weeks, or
even days, a year.
If power companies could cut peak energy demand, rarely-used, polluting plants could
become totally unnecessary. And many could be shut down.
Corn production in Colorado. (Photo by Scott Bauer, courtesy of the USDA Agricultural Research Service)
Food prices are expected to keep rising in the
coming year. That’s at least partly because farmers plan
to plant less corn. Dustin Dwyer reports:
Transcript
Food prices are expected to keep rising in the
coming year. That’s at least partly because farmers plan
to plant less corn. Dustin Dwyer reports:
Jim Hilker is an agricultural economist at Michigan State University. He says the
demand for corn is high right now.
“Ethanol’s probably the biggest driver of it, but there’s also been very strong corn
exports.”
Hilker says those exports are going to countries where the wheat crop has
come in lower than expected.
But with all the demand for corn, the U.S. Department of Agriculture says
farmers across the country are planning to plant about 8% less
corn this year, compared to last year. Last year farmers did plant more corn
than they had in more than 50 years. This year, corn production should still
be high, but it might not keep pace with demand.
Hilker says that could mean higher prices for food.
But he says there are a lot of other factors to consider when it comes to
food prices. He says gas is a big one, since food has to be transported.
Produce section of a supermarket in VA. (Photo by Ken Hammond, courtesy of the USDA)
Food prices are going up worldwide. A new survey
by the American Farm Bureau Federation finds supermarket
checkout costs have risen nearly 8% this year.
Julie Grant has more:
Transcript
Food prices are going up worldwide. A new survey
by the American Farm Bureau Federation finds supermarket
checkout costs have risen nearly 8% this year.
Julie Grant has more:
Retail food prices usually increase 3% per year. But over the last year the
cost of flour, cheese, bread, meat, oil, and produce is up – by more than
double the average.
The United Nations has predicted prices will stabilize in the long term. But
that consumers worldwide will face at least 10 more years of rapidly rising
food prices.
Commodity prices for corn, wheat, soybeans and other staples have been
skyrocketing over the past year – to more than double 2006 prices.
The higher costs are due in part to weather affecting crops, and growing
demand in China and India.
Economists also point toward the increased use of grains for ethanol and
other biofuels, putting pressure on food prices.
Mary Morran at Avalon International Breads in Detroit (Photo by Sarah Hulett)
Wheat harvest on the Palouse. (Photo courtesy of the USDA Agricultural Research Service)
Short supply and high demand for wheat means
prices are at record levels, and rising. But the high
cost of wheat is bad news for people who buy it. And
in North America, where most people’s diets are based
on wheat, that means just about everyone. Sarah Hulett
has this look at what’s behind the run-up in prices:
Transcript
Short supply and high demand for wheat means
prices are at record levels, and rising. But the high
cost of wheat is bad news for people who buy it. And
in North America, where most people’s diets are based
on wheat, that means just about everyone. Sarah Hulett
has this look at what’s behind the run-up in prices:
Jackie Victor is sitting on a stack of 50-pound bags of organic wheat flour inside the
bakery she co-owns. And these days, it’s a pretty expensive seat.
Victor says in the last year, what she pays for those bags of flour has doubled.
“So it’s a very scary time, and I don’t think just – really for the industry, although it is
scary for us – it should be a warning sign for the country that something here is amiss.”
In the fall, Victor raised her retail prices at Avalon International Breads in Detroit.
So a loaf of bread that comes out of this batch getting mixed by baker Kevin Boyer will
cost you 50 to 75 cents more today.
“This is the multigrain bread. This is our Motown Multigrain.”
Soon, one of those loaves will probably cost even more, because the price of flour keeps going up.
(forklift sound)
Avalon Bakery buys its flour from Dawn Food Products. Inside one of its central
warehouses, forklift operators move pallets of baking ingredients into tractor-trailors. It smells like a kitchen pantry. And that’s basically what this is: a gigantic
pantry full of baking ingredients that will be shipped all over the world.
Miles Jones points out a pallet full of wheat gluten, which is used in most commercially-produced baked goods.
“That’s vital wheat gluten there. The price of that vital wheat gluten, just as an example,
has about tripled here in the last six months.”
Jones is co-chairman of the board at Dawn Foods. He’s been in the baking industry for close to four decades, and he says he’s never seen prices so high.
There are several reasons for the spike in wheat prices. Drought and other bad weather
wiped out a lot of the global wheat crop over the past two years. And fast-developing countries like China
and India are consuming more food made from wheat.
And then there’s the ethanol factor. More farmers are planting corn to sell to ethanol
refineries. Jones says that’s gobbling up land that used to be planted with wheat and other
crops. And he says it’s put us on a dangerous path.
“The end results are in the paper every day. You can see the skyrocketing food prices. And when you start trading food for energy, that’s not a good trade long-term.”
With wheat prices at record levels, more farmers might decide to plant it this year. That would boost supply and bring prices down.
Bruce Babcock is an economist, and he heads the center for Agricultural and Rural Development at Iowa State University. He says the test for that theory will be the amount of spring wheat that gets planted in April and May.
“The problem of course, for farmers, it’s not really a problem, it’s a great thing for farmers, is that they can pick wheat or soybeans or canola or any crop and the price is out of this world. So because the price of everything else is up so high, I don’t think we’ll see wheat increase as much as we would hope.”
Babcock says there is some good news on the global supply front. Australia and Argentina are expected to harvest a normal amount of wheat this year. Those are two major wheat producers that had a couple of years of terrible crops.
A big question will be whether farmers in the US and Canada will get the kind of weather they need and a bumper wheat crop this year.
Transforming black crude oil into gasoline has
always been a notoriously dirty process. But oil
refineries are expanding so they can use a new source
of oil. That could make the process even dirtier.
Shawn Allee explains why this is happening
and what environmentalists are doing about it:
Transcript
Transforming black crude oil into gasoline has
always been a notoriously dirty process. But oil
refineries are expanding so they can use a new source
of oil. That could make the process even dirtier.
Shawn Allee explains why this is happening
and what environmentalists are doing about it:
Refineries are expanding because they’ve struck oil… and it’s not
far away….
Roxanne Potvin: “Oh Canada, our home in native land …”
That’s right, it’s from Canada.
“Phil here, can I help you? Hey, I’m doing good, how are you?”
Phil Flynn analyzes energy markets for Alaron Trading. Flynn
says Canada’s secret is oil pulled from tar sands.
“If you look at the oil sands that are in Canada, some experts
estimate there’s more oil in the oil sands than there is under
Saudi Arabia. And to be honest with you is, the reason why we
haven’t tapped it earlier is, it’s been a very expensive process to
do.”
But technology’s made tar sand oil competitive with lighter crude
from the Mideast and elsewhere.
Flynn says there’s a downside to Canadian tar sand oil. It’s
heavier, it’s dirtier, and it creates more refinery pollution. But he
says the market wants it anyway.
“You know, we want abundant supplies. We want to be able to
pull up at the pump, pay a dollar fifty a gallon and drive home
happily. But guess what, it doesn’t work that way in the real world.
Believe me, if the prices get high enough, even the environmentalists
will be more open to more negotiations.”
Actually, Flynn’s wrong on that – environmentalists are not willing
negotiate on new refinery pollution. Last year, green groups in
Chicago and Northwest Indiana were outraged by plans to
expand a BP refinery on Lake Michigan.
That BP plant will use new Canadian crude.
A new permit allowed it to dump more ammonia and suspended
solids – in other words… more pollution into Lake Michigan.
Environmentalists and politicians argued with regulators, then they
hit the airwaves …
“This is a clean water alert. BP Amoco has announced plans to
expand an Indiana refinery to process thick
crude oil – already one of the worst polluters …”
“I think that really tapped public sentiment that we’re going in the
wrong direction.”
Howard Learner directs the Environmental Law and Policy
Center.
Learner considers last year’s effort a success.
“Ultimately, BP was forced to back off, and BP is now committed
to no net increase in water pollution.”
That fight against BP’s refinery expansion plan in Indiana was not
isolated. Michigan activists fought a similar refinery expansion
plan in Detroit. Eventually, Marathon Oil agreed to keep water
and air pollution near present levels at that refinery.
Now, groups across the Midwest want to repeat these
performances. Altogether, they’re taking on expansions at ten refineries, from
South Dakota to Ohio, plus another in Ontario.
Learner says each could increase water and air pollution.
“So with these oil refineries having such a major environmental
footprint in our region, we want to make sure that they’re doing the
absolute best, state of the art, pollution control technology at the
beginning rather than later having to come back and say
oh wait a minute, we somehow missed the boat here, we gotta
get it fixed up. That’s not gonna fly.”
Learner says there does not have to be a trade-off between more
pollution and higher gas prices.
“Companies like BP, ConocoPhillips, MurphyOil, and Marathon are
making billions of dollars in profits. They can take and invest
some of those profits, not on doing their plants in ways that increase pollution, but in
ways that reduce pollution.”
But can we cut pollution and keep gas prices level?
Some economists doubt it.
Lynne Kiesling teaches at Northwestern University.
“Regardless of your perception of corporate profits there is a
fundamental trade-off between environmental quality and
increasing our refinery production.”
Kiesling says, when refineries invest in pollution control,
consumers ultimately foot the bill.
And she says drivers are to blame – over time, we buy more
gasoline – even when prices rise. So… oil companies are just trying to meet
our demand with new, dirtier oil.
Environmental groups have preached about getting out of our
cars for years – but they’ve been losing that battle.
They say all they can do now, is to fight the air and water pollution
that comes with dirtier oil.
Lawn mowers pollute a lot more than cars. Proposed EPA rules will require small engine makers to reduce polluting emissions. It's been estimated that these changes will add about $25 to the price of a typical lawn mower. (Photo by Lester Graham)
In the next few years, lawnmowers, weed whackers and many boat engines
might cost a little more… but they’ll pollute less. Mark Brush
reports the Environmental Protection Agency has proposed a new rule
aimed at cutting air pollution from these small engines:
Transcript
In the next few years, lawnmowers, weed whackers and many boat engines
might cost a little more… but they’ll pollute less. Mark Brush
reports the Environmental Protection Agency has proposed a new rule
aimed at cutting air pollution from these small engines:
Today’s lawnmowers and boat engines put out a lot more air pollution than
your car. That’s because your car has a catalytic converter that burns
up a lot of harmful chemicals.
The EPA says that to meet its new rule, many small engine makers will
eventually add catalytic converters to their equipment. In the past,
small engine makers have complained that adding catalytic converters
will increase the risk of fire.
John Millett is a spokesman with the EPA. He says the EPA studied the
safety issue before drafting the proposed rule:
“We found no increase of risk of fire. In fact, several of the experts
that we consulted actually suggested that because of reducing the
amount of fumes that would escape from these engines we would actually
see improved safety.”
If the rule is approved, it’s estimated that consumers would pay around
$300 more for a new boat engine, and around $25 more for a new lawn
mower.
Ethanol distillation plants are being built all over the corn belt. An environmental think tank predicts food prices will rise because corn is used for meat and many other food products. (Photo by Lester
Graham)
Corn prices have already gone up, in part due to higher demand for ethanol production. An environmental think tank believes that will translate to higher food prices. (Photo by Lester Graham)
As ethanol is becoming more common, the demand for corn is driving up prices for the grain. (Photo by Lester Graham)
There are new questions about how much grain it will take to supply all the ethanol plants being built around the U.S.
One group says more ethanol production will boost grain prices further. Chuck Quirmbach reports:
Transcript
There are new questions about how much grain it will take to supply all the ethanol plants being
built around the U.S. One group says more ethanol production will boost grain prices further.
Chuck Quirmbach reports:
The U.S. Ag department estimates the nearly 200 ethanol plants that are in production, being
expanded or being built will require 60 million tons of corn by the end of next year. But the
Earth Policy Institute says the actual need for corn will be more than twice that much.
Institute President Lester Brown says the surging demand for grain will drive up food prices.
“In a sense, our refrigerators are stuffed with corn that’s been converted into livestock products of
one sort or another, so what happens to corn prices will very much affect prices at the
supermarket checkout counter. ”
Brown says he’d like to see a moratorium on licensing new ethanol plants. But some farmers
contend they’ll be able to expand production to meet the additional demand for corn.
As the price of gasoline rises, many states are looking for alternatives. One of those alternatives is the ethanol blend, E-85. But, some states (like Ohio) are not keeping up with the trend. (Photo by Lester Graham)
The federal government is focusing new attention on research and development of ethanol. Some states – especially those in the corn belt – are getting into the act too. The GLRCs Karen Kasler reports:
Transcript
The federal government is focusing new attention on research and
development of ethanol. Some states – especially those in the corn belt –
are getting into the act too. The GLRC’s Karen Kasler reports:
Now that gasoline is near or above three dollars a gallon, ethanol seems
to be everywhere. The Renewable Fuels Association says more than a
third of the gasoline in the U.S is blended with ethanol, an alcohol based
fuel made with the sugar found in corn and other grains. A 10 percent
ethanol/gasoline blend can be used in every vehicle on the road, but
many politicians and consumers are very interested in the 85 percent
ethanol blend – E-85 – as an alternative fuel for cars and trucks. But
getting E-85 to drivers who have cars which can use it isn’t that easy.
Tadd Nicholson with the Ohio Corn Growers Association, says part of
the problem is the big oil companies have banned E-85 pumps under the
canopies at branded stations.
“Oil companies don’t own ethanol production. They own oil refining,
and so that’s their profit center and that’s where they get their fuel and so
they have a lot of control over that. They don’t own ethanol. I don’t
know why. They should, but they aren’t in the ethanol ownership
business yet. I say ‘yet’.”
The governors of Wisconsin and Minnesota have asked the big oil
companies to change their E-85 policy, and some states have been
encouraging independent gasoline dealers to put in E-85 pumps for a few
years.
But others, such as Ohio, have been lagging behind in the trend. Only
recently has Ohio launched a new energy action plan that sounds
ambitious, when it comes to providing access to ethanol to drivers.
LeeAnn Mizer is with the Ohio Department of Agriculture.
“The goal is to triple the amount of E-85 pumps available to Ohio
consumers by the end of 2006.”
That sounds like a lot – but it’s not, says Dwayne Seikman heads up the
Ohio Corn Growers Association.
“Tripling’s a nice start. There’s six… that would go to 18. But with over
150,000 vehicles in the state of Ohio, that’s not enough to cover the
effort.”
Since corn is Ohio’s top crop… it would seem to make sense. But unlike
other states in the corn belt, there are no ethanol plants in operation in
Ohio, though there are at least three under construction, and ethanol
supporters say the state is way behind its neighbors when it comes to
getting ethanol pumps at service stations.
Sam Spofforth is executive director of Clean Fuels Ohio.
“I’ll be honest, we’d like to see a lot more and we think a lot more is
certainly very possible. Indiana, they’re up to about 25 to 30 stations.
Illinois has over a hundred. Minnesota has almost 200 at this point.
Even places like Arizona are putting in E-85. They don’t make any corn
in Arizona. We think Ohio can do a lot more.”
Some critical studies have found that ethanol has a high energy cost with
low benefits – ethanol supporters say that’s been debunked. Whether
ethanol makes economic or ecological sense or not is still not certain.
But one thing is certain – cars using ethanol blends need to fill up more
than those using regular unleaded gasoline.
Robert White with the National Ethanol Vehicle Coalition says that’s
offset because typically ethanol-blended fuels cost less than regular
unleaded gas.
“Well, no doubt the fuel economy is the only negative with E-85, and we
tell folks that is where the price differential hopefully is there to make
E-85 use a wash.”
Part of the reason the price is lower is because the ethanol industry is
heavily subsidized by the government. Those lower costs would quickly
disappear if the subsidies were removed. Because ethanol is cleaner
burning, many support further development and use of the renewable
fuel.
General Motors is increasing the number of vehicles it produces that can
burn ethanol. Ford already produces E-85 burning cars and trucks.
However, many believe for ethanol production to be truly efficient,
farmers will have to start growing crops such as switch grass for ethanol
because corn requires too much fossil fuel based fertilizer and other
inputs to make it a permanent solution.
(Photo by Ben Van Wagoner)
