Turbulent Fuel Prices Hit Airlines Hard

  • Airlines say that there needs to be more regulation on oil speculators. (Photo courtesy of NASA)

Recent swings in the price of
crude oil are leading to more
trouble for the US airline
industry. Rebecca Williams
reports:

Transcript

Recent swings in the price of
crude oil are leading to more
trouble for the US airline
industry. Rebecca Williams
reports:

Even though oil futures are trading for half of what they were last summer, the airlines are not happy.

David Castelveter is with the Air Transport Association. He says wild price swings for oil make it tough for the industry to plan ahead.

“They hedge their fuel purchases when the price is high at a lower rate and if the price of fuel goes low then they’re hedged in at higher rates and it costs them money.”

Airlines would like to raise ticket prices, but, with the recession, they’re worried no one will buy them.

So instead, they’re trying to cut back on how much fuel they use. Airlines are retrofitting planes with winglets that cut fuel consumption.

But that takes money and time. So in the meantime, they’re also cutting jobs and routes.

The industry’s putting pressure on Congress to force more transparency in the oil futures trading market.

They’re hoping more regulation on oil speculators would mean fewer price swings.

For The Environment Report, I’m Rebecca Williams.

Related Links

A Clunker’s Fate Once It’s Cashed In

  • Cars stacked up and waiting to be shredded at United Iron and Metal in Baltimore, MD. (Photo by Tamara Keith)

The federal Cash for Clunkers
program kicked off this weekend,
and dealerships were pushing it
hard to sell new cars. The program
was created by Congress last month
to give a boost to the struggling
auto industry while helping the
environment. The idea is to get
older polluting cars off the road
for good and replace them with
new more-efficient ones. Tamara Keith has this report
on what will happen to all the
clunkers:

Transcript

The federal Cash for Clunkers program kicked off this weekend, and dealerships
were pushing it hard to sell new cars. The program was created by Congress last
month to give a boost to the struggling auto industry while helping the environment.
The idea is to get older polluting cars off the road for good and replace them with
new more-efficient ones. Tamara Keith has this report on what will happen to all the
clunkers:

Car dealers suddenly have a whole bunch of cars on their lots they have absolutely
no use for. The clunkers cannot be re-sold. That would defeat the whole green goal
of the program.

So all those old trucks and sagging sedans, they’re headed to places like M and M
Auto Parts in Stafford, Virginia. Most of us would call it a junk yard. But don’t tell
that to owner Rick Morrow.

“Long before green was popular, this kind of operation, even though a lot of people
said, ‘Oh junk yard.’ But they were actually recycling cars. They were making use of
what the component was built for in the first place.”

His company’s logo prominently features a large green recycling symbol.

“This is the dismantling area where after the cars come are inventoried and then take
them apart.”

Morrow’s business is all about re-use. A fender, or a tail light, or maybe an alternator
from this car will live to see another day in a car that needs a replacement part.

You’d think Morrow would be totally excited about Cash for Clunkers. But he’s not.
Because the one component from the clunkers that absolutely cannot be re-sold is
the engine – pretty much the most valuable thing in the car.

“If we do a few dozen cars and it looks like it’s costing us more money than it’s worth,
we’ll say, ‘sorry.’”

From an environmental perspective, it absolutely makes sense to prevent those
engines from ever polluting again. But, from a business perspective it’s a real
problem for the nation’s auto recyclers.

“It will make it extremely hard to make money on a car.”

Scotty Davis is the vice president of All Foreign Auto Parts in Fredericksburg
Virginia. He says it costs him $1800 in labor to take apart a car.

“It’s going to cost me money to do this. It’s one of these things. I have to bring the
car in. I have to get rid of the tires. I have to get rid of all the fluids, the freon,
process it – just to crush the vehicle.”

Davis specializes in newer foreign vehicles. Parts from a clunker won’t help stock
his shelves. But he feels like he has to take the cars to stay in the good graces of
the auto dealers he sells parts to.

“And I’ll be very honest with you. A couple of them I do a lot of business with, I said,
‘I will take your cars.’ And they said, ‘what are you going to do with them?’ I’m going
to crush ‘em. I mean they’re not of any value.”

(sound of a shredder yard)

Once all the usable parts are removed, and the toxic chemicals cleaned out, most
cars will end up at a scrap yard like United Iron and Metal in Baltimore.

“Right now you can see the tail end of a car coming on the conveyor belt down into
the shredder.”

“A tremendous amount of friction is going on as these hammers are pulverizing that
car into small pieces.”

Bruce Savage is with the Institute of Scrap Recycling Industries – a trade group. It
only takes 15 seconds, and when the shredder is done with a car, it isn’t even
recognizable.

“That big pile over there is the end result. It’s just a big pile of metal pieces.”

Savage says the metal is then sold. Whether scrap recyclers will cash in on Cash
for Clunkers all depends on the commodities prices for metal in the coming months.

“What was an old car can become a new car or can become a dishwasher or siding
for a home. It depends on the materials. But everything is being reused,
reprocessed and renewed.”

So maybe a 1989 suburban can be reborn as a 2010 Ford Focus Hybrid.

For The Environment Report, I’m Tamara Keith.

Related Links

Dealerships Prepare for Clunkers

  • ‘Cash for clunkers’ became popular before all the rules were final. For the past few weeks there’s been a growing backlog of orders at dealerships. (Photo by Samara Freemark)

Today is the first official day of the cash for clunkers program. The government program offers you up to $4500 to trade in your gas guzzling car for a more fuel efficient new car. Lester Graham reports:

Transcript

Today is the first official day of the cash for clunkers program. The government program offers you up to $4500 to trade in your gas guzzling car for a more fuel efficient new car. Lester Graham reports:

The goal is to clean up the environment and give sagging new car sales a boost.

‘Cash for clunkers’ became popular before all the rules were final. For the past few weeks there’s been a growing backlog of orders at dealerships.

At Varsity Ford in Ann Arbor, Michigan, people have been seeing if their clunkers qualify, and picking out a new car that they’ll finally be able to drive off the lot today.

Matt Stanford sells cars there. He says as far as he’s concerned, ‘cash for clunkers’ is already a success.

“We’re going to sell new cars. We’re going to get cars that don’t really need to be on the road off the road.”

The National Autobmobile Dealers Association says some dealerships have been holding off until they learned more about the rules of ‘cash for clunkers’ which were just cleared up last Friday.

The clunkers will be scrapped. The cash ends when the one-billion dollars in government money runs out.

For The Environment Report, I’m Lester Graham.

Related Links

Bike Shop in a Box

  • A mechanic works on the bikes to make them as compact as possible - removing pedals, kickstands, and turning the handlebars (Photo by Karen Kelly)

So many of us have an old bike collecting
dust in the garage. More often than not,
they end up in the garbage. But, as Karen
Kelly reports, one group has found a unique
way to recycle them:

Transcript

So many of us have an old bike collecting
dust in the garage. More often than not,
they end up in the garbage. But, as Karen
Kelly reports, one group has found a unique
way to recycle them:

(sound of banging)

“That’s a sweet ride!”

A volunteer drops a bike into a pile at the back of a huge shipping container in Ottawa, Canada.
The bikes are stacked one on top of the other.

(sound of tools)

Just outside, a mechanic is stripping the bikes down to make them as compact as possible.

“If it has a kickstand, we have to remove it. We take the pedals off and turn the handlebars.”

In a few hours, this cargo container will be jammed with hundreds of donated bicycles, bike parts, and backpacks.

The gear is collected by a group called Bicycles for Humanity.
They have 20 chapters, most of them in North America.

Each chapter raises a couple of thousand dollars to buy a shipping container.
They pack it full of donated gear, and send it off to a community in Namibia, Africa. The shipping cost – another several thousand dollars – is also raised by the group.

A volunteer group there turns the container itself into a locally-run bike shop that provides jobs and transportation.

Some of the bikes are donated to health care workers who use them to pull patients on a stretcher.

Others are piled high with stacks of food and household items that defy gravity.

Martin Sullivan points to some of the pictures on display.

“These are the bakers who are able to sell their bread. And also wood, you can stack wood. It’s just amazing what they do, how they make use of these bikes that we take for granted. We throw them out, and they can do so much with them.”

(sound of traffic)

In Namibia, cars – and even bicycles – are scarce. Sullivan says these bikes make life easier for people who are used to walking miles to get to school, work, or to find the basic necessities.

Seb Oran is the co-founder of Bicycles for Humanity in Ottawa.

This is the fourth container of bikes that she’s sent to Africa.
Each one supports a local community group.
Sometimes its a hospital, sometimes an orphanage, sometimes a women’s empowerment group.
She remembers one run by former prostitutes.

“Six of them became bicycle mechanics now. And now, they don’t have to sell their bodies to put food on their plate.”

But there are some challenges.

Michael Linke runs the Bicycle Empowerment Network.
He helps the Nambians set up the bicycle shops.

“Because this is the first time a lot of these people have had formal ongoing work, it’s often difficult to get people to understand a long-term ongoing business.”

But with some mentoring, they’ve been able to make it work.
There are now 13 successful projects, with more containers filled with bikes on the way.

The group estimates that these bikes will last another 20 or 30 years in Africa. They might be junk to us, but in Namibia, they’re a precious resource.

For The Environment Report, I’m Karen Kelly.

Related Links

Bumpy Road Ahead for Hydrogen Cars

  • Sysco - a major food distributor - is part of a year-long government funded project. They're running seventeen of their forklifts using hydrogen powered fuel cells. (Photo by Mark Brush)

Six years ago, President Bush proposed to end our addiction to oil by building a hydrogen
economy. At the time, driving a hydrogen powered car didn’t seem that far off. But today, the
reality of mass produced hydrogen powered cars has hit some bumps in the road. Mark Brush
looks at the challenges ahead:

Transcript

Six years ago, President Bush proposed to end our addiction to oil by building a hydrogen
economy. At the time, driving a hydrogen powered car didn’t seem that far off. But today, the
reality of mass produced hydrogen powered cars has hit some bumps in the road. Mark Brush
looks at the challenges ahead:

It’s all about the fuel cell. The cell converts hydrogen gas into electricity that can power up a
motor. And when that’s done – the only thing that comes out of the tail pipe is crystal, clean
water.

So there’s a lot of enthusiasm to build hydrogen powered cars. If you live in Southern California,
you can drive a hydrogen powered car right now.

(sound of a hydrogen car commercial)

But you can’t buy this car. You can only lease it. And you have to have a pretty good map.
There are only 2 places where you can fill the car up with hydrogen.

And that highlights just one of the challenges facing the hydrogen car right now. There’s no
infrastructure – no network of gas stations – to support it.

Steven Chu heads up the Obama Administration’s Department of Energy.

“It’s an infrastructure that is as extensive as the infrastructure for gasoline and diesel. And that
doesn’t come overnight.”

Chu wants to eliminate all the research money for hydrogen powered cars and trucks. He says
there are too many big problems to solve. There’s the infrastructure problem. Fuel cells are
expensive. The cheapest way to make hydrogen right now releases pollution. And there are
problems with storing the gas.

In an interview with MIT’s Technology Review, Energy Secretary Chu referred to these problems
as the four miracles. And that didn’t go over too well with some people.

“A miracle? Really? How many miracles have you seen? I’m not sure I’ve seen a real miracle in
my life.”

Levi Thompson directs the Hydrogen Energy Technology Laboratory at the University of
Michigan.

He says talking about these problems as miracles sends the wrong message. He admits, there
are some big puzzles to solve. But he’s convinced scientists can solve them.

“If you believe this is the savior, that this is going to transform the way we do things, I think you
have a responsibility to invest – even though that you see that it’s far behind.”

Thompson says the ultimate goal for a hydrogen economy is to get the hydrogen from water
using electricity from renewable resources like wind, solar, and hydro-power. So you get the
clean burning gas you’re looking for.

It can be done today, but it’s expensive. Thompson thinks it’ll get cheaper as alternative sources
of electricity become more widespread.

The Energy Department doesn’t want to give up on hydrogen research altogether. Secretary Chu
says fuel cells do make sense on a small scale – like to power fork lifts in a warehouse.

(sound of a warehouse and forklift)

Here at this Sysco warehouse in Grand Rapids, Michigan, a mini hydrogen experiment is
underway.

Sysco is a major food distributor. This warehouse is part of a year-long government funded
project. They’re running seventeen of their forklifts using hydrogen powered fuel cells made by a
company called Plug Power.

Darin VanDuyn is with Sysco. He says, mostly, they’ve had a good experience with these fuel
cells.

“We’ve had about 80 hours of lost time due to repair – minor failures, things like that – but nothing
major has disrupted their operation.”

VanDuyn says the company hasn’t decided yet whether they’ll move forward with the fuel cell
program. But policy makers say real-world experiments like these move us closer to mass
produced hydrogen vehicles.

Even though the Obama Administration wants to cut funding for hydrogen powered cars and
trucks, Congress holds the purse – and has the final say. So far, it looks like Congress will
continue to fully fund the research.

Automakers say the ups and downs of federal funding don’t affect their plans. Several
companies say they’ll start selling hydrogen powered cars in 6 to 8 years – and they’ll let the
market decide the fate of the hydrogen economy.

For The Environment Report, I’m Mark Brush.

Related Links

Clamping Down on Nitrogen Dioxide

  • One source of nitrogen dioxide is the tailpipe of your car (Source: Jensbn at Wikimedia Commons)

The Environmental Protection Agency wants to make
the limit on nitrogen dioxide tighter. It’s a
pollutant that’s emitted by power plants, and we
all spew it from our cars’ tailpipes. Rebecca Williams
has more:

Transcript

The Environmental Protection Agency wants to make
the limit on nitrogen dioxide tighter. It’s a
pollutant that’s emitted by power plants, and we
all spew it from our cars’ tailpipes. Rebecca Williams
has more:

Nitrogen dioxide is bad stuff. It’s part of smog and it can trigger asthma attacks and other serious lung problems.

Bonnie Holmes-Gen is with the American Lung Association.

“People can have effects from exposure to nitrogen dioxide for even 30 minutes to an hour. This exposure is particularly harmful to anyone with asthma or other lung illnesses.”

There’s already a national standard for long-term exposure to nitrogen dioxide.

EPA wants to set a national standard for short-term exposure. And the American Lung Association thinks that’s great, but they want the long-term standard to be even tighter.

A tighter standard will mean cutting back on smokestack emissions and tailpipe pollution… and that’s always a tough sell.

For The Environment Report, I’m Rebecca Williams.

Related Links

From the Trees to the Tank

  • Chuck Leavell plays keyboards for the Rolling Stones. But he also owns a plantation outside of Macon, Georgia, with 2500 acres of pine trees. (Photo by Susan Mittleman)

Finding alternative fuel sources in our country involves looking at what nature has to
offer. In the West, they’re harnessing wind and solar energy. In the Heartland, it’s sweet
crops like corn. Susan Mittleman reports, in the South, they’re looking to their forests to
make cleaner, greener fuels:

Transcript

Finding alternative fuel sources in our country involves looking at what nature has to
offer. In the West, they’re harnessing wind and solar energy. In the Heartland, it’s sweet
crops like corn. Susan Mittleman reports, in the South, they’re looking to their forests to
make cleaner, greener fuels:

Chuck Leavell plays keyboards for the Rolling Stones. But when he’s not on the road, he
spends his time on his plantation outside of Macon, Georgia, tending to some 2500 acres
of pine trees.

“This is our tree farm here.”

From this tranquil refuge of nature and wildlife, he sees these trees as a possible way to
reduce our dependency on foreign oil.

“The fact that we have such wonderful resources, our forest, and that we are
looking for new markets, gives us a lot of hope to be able to use our trees to make
energy products, whether its electricity or gasification processes or any matter of
liquid fuels.”

Cutting down trees and turning them into fuels might not seem like the greenest thing to
do.

But people like Jill Stuckey, insist it is.

Stuckey heads Georgia’s Innovative Center for Energy, and says there’s no better source
for clean fuel here, than the state’s 24-million acres of forest land.

“We grow pine trees like Iowa grows corn. And it’s a renewable source of energy.”

Stuckey says trees grow faster and are more accessible in Georgia than any place else in
the country.

“It’s a good thing. Because trees sequester carbon. And we harvest these trees and
plant new trees, so we’re continuously replenishing our supply.”

She says an acre of pine trees can yield about seven tons of biomass per year.

Biomass is basically any living thing that grows and then can be harvested.
And that stuff can be used to make ethanol, electricity, and bio-diesel.

(sound of a factory)

At a small factory down in Albany Georgia, that’s what John Tharpe is making here.

Tharpe is semi- retired electrical engineer, and has designed a machine that converts
pine-tree chips into bio-diesel. The fuel can be burned to power and heat homes and
businesses.

“We’re using biomass. We make an oil and a char and then we are also looking now
at making electrical energy. You can use it in any commercial burner, such as
steam, boilers, those types of things.”

He’s already begun selling his biodiesel technology to people around the world.

So, Tharpe is making for electricity and heat. Other companies are making plans to use
trees to run our cars.

Range Fuels is building the ‘first-of-its kind’ bio-fuels plant in Soperton Georgia – which
will convert wood chips into green transportation fuels, things like ethanol and methanol.

Ron Barmore is the company’s project development director.
He says their facility is designed to produce upward of 100-million gallons of fuel a year.

“Our belief is that we’ll be able to compete with fossil fuels, with oil prices in the 70-
80 dollar a barrel range. We think long term that’s a viable place to be.”

And long-term sustainability is what tree farmers and environmentalists like Chuck
Leavell are looking for, not just for green energy, but for other reasons as well.

“These trees, in the period we plant them and their growing, they’re cleaning our
air, our water, providing home and shelter for wildlife, that helps everyone.”

More than 100 companies are looking at ways to use Georgia’s trees, in some form or
another, to produce greener, cleaner energy.

For The Environment Report, I’m Susan Mittleman.

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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Phantom Traffic Jams

  • A phantom traffic jam is when everyone slows down or stops, but starts to go again inexplicably (Photo source: Crazytales at Wikimedia Commons)

According the the last report from
the Texas Transportation Institute,
traffic congestion in the US causes
more than four-billion lost hours stuck
in traffic and nearly three-billion
gallons of wasted fuel. Lester Graham
reports mathmeticians have found – on
paper – one type of traffic jam looks
something like a bomb going off:

Transcript

According the the last report from
the Texas Transportation Institute,
traffic congestion in the US causes
more than four-billion lost hours stuck
in traffic and nearly three-billion
gallons of wasted fuel. Lester Graham
reports mathmeticians have found – on
paper – one type of traffic jam looks
something like a bomb going off:

Phantom traffic jams are frustrating. You know the kind – traffic slows downs or completely stops, and when you finally get to the end, there’s no wreck, no closed lane – nothing.

Mathematicians at MIT say these phantom jams are a lot like detonation waves produced by explosions.

Morris Flynn is the lead author of the report published in the online edition of Physical Review E.

“You have a single person who taps on their brakes. The driver behind them will over-react, hit their brakes just a little bit harder than the person in front. And this disturbance is just cascaded all the way back so that eventually you get this very rapid deceleration.”

And, phantom traffic jam.

Solutions: more lanes on the highway, and automated signs that warn drivers about slowed traffic ahead.

Or, get more people on mass transit.

For The Environment Report, I’m Lester Graham.

Related Links

House Gives Cash for Clunkers Green Light

  • It is hoped that the "Cash for Clunkers" bill will stimulate fledgling car sales (Photo by Samara Freemark)

The so-called “Cash for Clunkers” bill has passed the US House. Automakers say it could help boost sluggish sales if it passes the Senate and gets signed into law. But as Rebecca Williams reports some people think the bill isn’t very green:

Transcript

The so-called “Cash for Clunkers” bill has passed the US House. Automakers say it could help boost sluggish sales if it passes the Senate and gets signed into law. But as Rebecca Williams reports some people think the bill isn’t very green:

If you have a car or truck that gets 18 miles per gallon or less, under this bill, you’d get to trade it in for a more fuel efficient car or truck. The old car would get scrapped.

You’d get a voucher for several thousand dollars. Old gas guzzlers would get taken off the road.

But Ann Mesnikoff points out: in the House bill you could trade in an old SUV that gets, say, 14 miles per gallon… for a new SUV that gets just two miles per gallon more.

She directs Sierra Club’s Green Transportation Campaign.

“The key things to change in the cash for clunkers program are to ensure that taxpayer dollars are going to buy vehicles that have at least better than average fuel economy. Not those that can’t even meet today’s fuel economy standards.”

Congress is also going to have to figure out how to pay for the bill. It’s expected to cost about 4 billion dollars.

For The Environment Report, I’m Rebecca Williams.

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