>

Fuel economy standards affect us all. Commuting to work, taking road trips, simply getting from point A to point B, we use our vehicles for transportation. As the President of the National Grange, fuel economy standards especially impact the hundreds of thousands of American farmers and ranchers who rely on vehicles to make a living.

If Congress passes unrealistic legislation to increase CAFE standards, the vehicles my members and I use day in and day out will be jeopardized. The Senate recently passed legislation that would impose harsh regulation on automakers, levying the largest regulatory burden on an industry ever, $114 billion. The Senate language also leaves out important provisions on biofuels that affect Americans across the country, especially farmers.

The National Grange supports H.R. 2927 because it is a balanced approach that will allow farmers and rural workers to continue to use the vehicles they need for their livelihood. It encourages automakers to put money towards research of advanced technologies and alternative fuels, rather than reconfiguring engines to meet extreme CAFE standards. Many farmers live on narrow, two-lane rural roads where two-thirds of auto-related deaths occur. The safety of our vehicles cannot be sacrificed due to extreme Congressional regulation. We thank the more than 160 members of Congress that have cosponsored this balanced bill And urge all others to stand up for rural America and do the same.

William Steele, President, The National Grange

USAtoday.com ran a great article on the efforts automakers are making to bring alternative fuel and advanced technology vehicles to market. This link will take you to the story and this is a must read for anyone interested in the future of the automobile.

Articles like this show an industry making effort in the right direction, but some will ask why aren’t these technologies, if feasible, not being adopted and commercialized? One answer to this question comes from Bob Lutz, GM Vice Chairman, in comments to staffers of Edmunds.com. Lutz said:

“’We have technological solutions at hand, but not a commercial solution,’ he said, meaning that GM can do it technologically and physically, but the costs will be too high for the consumer…‘When 2017 rolls around, 35 mpg will have to be the standard on 80% of the vehicles– that means 2-mode hybrids. A 2-mode hybrid system itself costs as much now as the car [itself]. A car buyer in 2017 will walk into the dealer to trade in his regular [gas] car for the new technology, and he’ll find the price of a new car has jumped from $28K to $38K!… It’s the ultimate sticker shock’”

No one questions the benefits of these technologies or what they can do for energy dependence and the environment. However, as long as no one is questioning how much more these vehicles are going to cost, regulators are misleading the American public into thinking these new green cars will come at no additional cost to consumers. This is unfortunately not the case. While there are consumers willing to pay $5,000 or even $10,000 dollars more for an environmentally friendly automobile, the vast majority of Americans aren’t willing to pay that kind of green premium.

The technology to remove the automobile from the debate on climate change is out there, but costs are still a major hurdle. With more research and development these costs will come down, but more regulation on current technology will drain these investment dollars and delay the future. Lawmakers need to look at the USA Today and see the progress being made and do everything they can to foster this development. The alternative is further delays for gasoline alternatives.

-Rodney E. Slater, Chairman

I was reading through some articles the other day on CNET’s auto blog when I came across this piece on biodiesel by Laura Berstein that discusses the new biodiesel plant that will open in Odessa, WA. The interesting thing about the new Odessa plant is that it will use seeds grown in Odessa, crush them at the plant and then refine the oil that is produced for fuel, all in the same location. This plant is the first of its kind in the Western U.S.

Just in case you aren’t familiar with the biodegradable, renewable fuel; biodiesel is produced here in the U.S. and can be made from vegetable oils, animal fats or recycled restaurant greases. It reduces air pollutants such as particulates, carbon monoxide, hydrocarbons, and air toxics.

In the blog Berstein explains how the process will work in Odessa:

“Turning oilseed into biodiesel is a three-stage process. First, the seeds are crushed. In the case of canola seed, the crushing produces two substances: crude oil and canola meal. The oil is refined and filtered, while the meal can be used as livestock feed. In the third stage, the filtered oil goes into a reactor and mixed with methanol or ethanol and processed. About 90 percent of oil is turned into biodiesel; the leftover byproduct is glycerin.”

It’s encouraging to see that biodiesel plants are spreading across the county, this is a fuel we can make here at home and I’m sure we will continue to see further developments in the future.

For more information on biodiesel go to: http://www.eere.energy.gov/afdc/altfuel/whatis_biodiesel.html

-Rodney E. Slater, Chairman

Madison, Wisconsin is taking a big step towards cleaner air with its newly incorporated hybrid bus system. Last week Mayor Dave Cieslewicz unveiled five hybrid-electric public transit buses. The new buses are scheduled to begin their routes around the city within the next couple weeks as a part of the 100K Clean Energy Challenge, which seeks to reduce citywide emissions of carbon dioxide by 100,000 tons by 2011. The buses have 75 percent better fuel economy and a smoother ride for passengers.

The five buses in Wisconsin, two of which will be run on the campus of University of Wisconsin, are new to the state, but currently there are over 815 of the hybrid buses across the country operating in 71 cities. I applaud these different cities that are incorporating this hybrid electric technology and putting these buses to good use. We need to continue to support our leaders who believe in alternative fuels and advanced technology because they are the ones that will really see beneficial changes in their communities and make a difference.

-Rodney E. Slater, Chairman

Wentzville, Missouri is home to a General Motors facility which produces the GMC Savana Van, a full size vehicle used mainly for commercial purposes. Driving America’s Future visited Wentzville to discuss the impact new extreme mileage regulations would have on this facility and the community:

On Thursday, I brought the Driving America’s Future tour to the city of Nashville, an area well recognized for the prominence of the auto industry. I had the opportunity to attend Governor Bredesen’s Conference on Economic and Community Development where I spoke directly with the Governor about the leading role Tennessee is playing in the development of biofeuls. He recently announced a comprehensive strategy to solidify the state’s national leadership role in the research and development of alternative fuels which will foster economic growth in the state for years to come.

Following the conference, I participated in a roundtable discussion with the Tennessee AFL-CIO Labor Council. I was encouraged by the large turnout and how well informed the members were on the competing fuel economy proposals before Congress. The conversation focused on the impact the legislation will have on jobs and why the Hill-Terry bill is the right choice for workers, the industry and improved fuel economy.

Many of the workers I spoke with are building the alternative fuel vehicles already coming off the assembly lines today and they know that the development of these vehicles is critical to the strength and future of the domestic auto industry. They left the meeting ready to act by reaching out to educate others and by contacting their representatives in congress to urge them to support Hill-Terry. I thank them for hosting me today to discuss this critical issue.

- Rodney E. Slater, Chairman

An article on CNET News.com discusses a company called Miles which is trying to produce fully electric cars by the fourth quarter of 2008 with the goal of selling 18,000 in the first year. The vehicle can travel 120 miles with a top speed of 80 miles an hour before needing to recharge and its battery is guaranteed for 100,000 miles.

Miles is not the only company producing electric cars. Think, Zap, Tesla and Phoenix Motorcars are all racing to produce the first marketable electric car. Interestingly, each of these companies is offering a different body style and battery life and all of the cars have varying top speeds. There is no one answer to the electric car question, and through their various tests and trials one of these companies will be selling an electric car in a showroom within a few years.

While this innovation is illustrative of the ingenuity of engineers and vehicle designers, it also proves another important point. The government did not need to intervene in order for electric cars to be produced. These companies saw there was interest for electric only vehicles, and are now trying to supply that demand.

Should these electric vehicles prove as popular as the start ups think they will be, the major players will be forced to bring out their electric vehicles as well. As you can see from this, the industry is not that far behind in the electric car game, but the push from companies like Miles and Tesla will put even greater pressure on these vehicles development. Competition drives the market system, and competition will bring electric cars to market much faster than government intervention.

-Rodney E. Slater, Chairman

Natural gas is one of the cleanest burning alternative fuels currently available, reducing carbon dioxide by between 30 and 40 percent. Natural gas is currently used widely in fleet operations with delivery vehicles, taxi companies and municipal bus systems all taking advantage of this fuel. Since fleet operations, with their stop and start driving and frequent idling produce a lot of exhaust emissions, natural gas has done much to improve the air quality on city streets.

Natural gas is not limited to fleet use, as natural gas vehicles can be purchased by consumers. Honda offers its Civic GX with natural gas capability, and has partnered with a company called FuelMaker to create home refilling units. This unit, called Phill, is installed in the consumer’s garage and is connected to the existing natural gas line running through the home. Phill is able to raise the pressure of the natural gas to a level needed to power a car while using only 800 watts of electricity and making no more noise than a clothes dryer.

It is innovations like these that will help America clean up the environment and become energy independent. The near term benefits of natural gas are very clear, but natural gas is not without a long term benefit either. Infrastructure for natural gas is no different than infrastructure for hydrogen. Once hydrogen fuel cells become available to the public, a simple mechanical conversion is all that is needed to go from a very clean fuel - natural gas - to completely emission free use of hydrogen.

Rodney E. Slater, Chairman

After the August 22nd UAW rally in support of H.R. 2927, members of Driving America’s Future staff caught up with some of the rally’s speakers. Here are some further thoughts from the participants:

Would you be enticed to buy a car if you could get a $12,000 tax break for it? The IRS announced in July that the Honda FCX, a hydrogen fuel cell vehicle which only emits water, is now eligible for the Qualified Fuel Cell Motor Vehicle Credit program that would give such tax breaks to encourage more environment friendly vehicles at prices the public can afford. By offering a tax credit, the early developmental costs for the advanced technology are balanced out.

This is exactly the government support we need. If lawmakers work together to offer such tax credit incentives and continue to encourage alternative fuel research and development, we will be on a much faster road to reducing green gas emissions. This vehicle is a great example of the hydrogen technology that is out there and the developments being made by the auto industry. The more the government works with the industry to offer consumers the incentives to buy hybrids and alternative vehicles the sooner we will begin to make effective changes with our fuel economy.

-Rodney E. Slater, Chairman