President Obama Orders Fuel Efficiency Standards for Trucks
President Obama signed a Presidential Memorandum on May 21, directing the U.S. EPA and the U.S. Department of Transportation (DOT) to create the first national policy to increase the fuel efficiency of medium- and heavy-duty trucks while decreasing their greenhouse gas (GHG) emissions. The directive targets new trucks in the 2014-2018 model years.
U.S. trucks consume more than two million barrels of oil a day and average 6.1 miles per gallon, while emitting 20% of the GHG pollution related to U.S. transportation.
The president also called for an extension of the groundbreaking fuel efficiency and GHG emissions policy he announced on May 19, 2009, which covers cars and light-duty trucks in the model years 2012 to 2016. The new policy would apply to model years 2017 and beyond.
Obama also directed DOE to increase support for deployment of advanced vehicles and directed the EPA to explore ways to cut vehicle emissions of pollutants other than greenhouse gases.
In his remarks announcing the memorandum, the president called for public and private sector cooperation to develop the advanced infrastructure that will be necessary for plug-in hybrids and electric vehicles. He said his administration will work to diversify the U.S. fuel mix, including biofuels, natural gas, and other cleaner sources of energy. See the White House press release, the president’s remarks, the Presidential Memorandum, and an article on the light vehicle standards from the April 7 edition of the EERE Network News.
Boosting the fuel economy of new medium- and heavy-duty vehicles could create about 124,000 new green jobs nationwide by 2030, curb U.S. oil dependence, and save truckers thousands of dollars annually at the gas pump, according to a report from the Union of Concerned Scientists and CALSTART, "Delivering Jobs: The Economic Costs and Benefits of Improving Heavy Duty Vehicle Fuel Economy."
The report found that increasing the fuel economy of medium- and heavy-duty trucks by 3.7 miles per gallon over the next 20 years would generate net job growth for all 50 states. By 2030, the report projects a net economy-wide savings of $24 billion. See the UCS press release and the full report (PDF 62 KB).
Tesla Motors to Revive California Auto Plant
Tesla Motors, Inc. announced on May 20 that it has acquired the recently-shuttered New United Motor Manufacturing, Inc. (NUMMI) vehicle manufacturing plant in Fremont, California, and will begin production of its Model S electric vehicle (EV) there in 2012.
NUMMI had been operated by Toyota in partnership with General Motors, and ceased production of the Toyota Corolla sedan and the Toyota Tacoma truck in early April. The facility is capable of producing half a million vehicles per year, or about 1% of worldwide car production.
Tesla, which currently makes the all-electric, two-seat Tesla Roadster, will use the facility to produce the Model S, a premium electric sedan, as well as other future Tesla vehicles. Tesla will partly finance the new facility with a $465 million loan from DOE, which will also support construction of a manufacturing facility for electric powertrains in Palo Alto, California. See the Tesla press release and an article on the DOE loan from the January 27 edition of the EERE Network News.
The four-door Tesla Model S is designed to carry five adults and two children, and will be available at a base price of $57,400. A federal tax credit of $7,500 will effectively reduce the price to $49,900, and state incentives may also be available. The vehicle will have a range of up to 300 miles with the largest available lithium-ion battery pack (versus 160 or 230 miles with the two smaller packs) and will accelerate from zero to 60 miles per hour in 5.6 seconds, with a top speed of 120 mph. The vehicle can be recharged from a 120-volt or 240-volt circuit. See Tesla’s Model S Web page.
As Tesla takes over the former Toyota plant, Toyota announced it will invest $50 million in Tesla and will partner with Tesla to develop EVs. The two companies intend to cooperate on the development of vehicles, parts, production systems, and engineering support. Toyota has agreed to purchase $50 million of Tesla’s common stock, which will be issued in a private placement right after Tesla closes on its initial public offering (IPO). Tesla filed with the SEC in January for its proposed IPO. See the press releases from Toyota and Tesla.
NREL Study: Western Grid Can Handle Increased Wind, Solar Power
A new study shows that it’s possible for the Western power grid to draw 35% of its electricity from wind and solar sources by 2017.
The Western Wind and Solar Integration Study released by DOE’s National Renewable Energy Lab (NREL) on May 20, examines the benefits and challenges of integrating wind power, solar PV systems, and concentrating solar power into the grid.
The study concludes that while additional infrastructure isn’t needed, key operational changes are required to meet the target. The report focuses on the power system operated by the WestConnect group of utilities in Arizona, Colorado, Nevada, New Mexico, and Wyoming.
The study found that coordinated operations among utilities across a large geographic area decrease the effect of the variability of wind and solar energy sources. Though wind and solar output vary over time, the study shows that it is operationally possible to accommodate 30% wind and 5% solar penetration to the grid.
To accomplish such an increase, utilities will have to schedule their generation deliveries, or sales, on a more frequent basis. Currently, generators provide a schedule for a specific amount of power they will provide in the next hour, a process called "hour ahead" scheduling. More frequent scheduling would allow generators to adjust that amount of power based on changes in system conditions, such as increases or decreases in wind or solar generation.
The study also finds that if utilities were to generate as much as 27% of their electricity from wind and solar across the Western Interconnection grid, it would lower carbon emissions by 25 to 45%, while decreasing fuel and emissions costs by some 40%, depending on the future price of natural gas.
Other key findings include: existing transmission capacity can be more fully utilized to reduce the amount of new transmission that needs to be built; to facilitate the integration of wind and solar, coordinating the operations of utilities can provide substantial savings by reducing the need for additional back-up generation, such as natural gas-burning plants; and the use of state-of-the-art wind and solar forecasts in utility operations is essential for cost-effectively integrating these renewable energy sources. The study complements the previously released Eastern Wind Integration and Transmission Study, which examines the feasibility of integrating up to 30% wind in the Eastern states. See the NREL press release, the WWSIS Web page, and an article on the EWITS from the January 27 edition of the EERE Network News.
Ex-Im Bank Speeds Financing of Solar Exports for Small Projects
The US Export-Import Bank (Ex-Im Bank) launched its new "Solar Express" initiative, which will provide streamlined financing for U.S. exports to small solar projects.
Under the initiative, financing could be approved in as little as 60 days. Solar Express loans will be available for small solar producers seeking financing of $3-10 million.
The initiative offers both direct loans and loan guarantees – in most cases, the loan will be disbursed after project completion. The loans can finance up to 30% of local costs, and repayment can be up to 18 years. See the Ex-Im Bank press release and fact sheet (PDF 673 KB).
The Ex-Im Bank, an independent, self-sustaining federal government agency, fills gaps in export financing, strengthens U.S. export competitiveness, and creates and maintain U.S. jobs.
The bank’s Environmental Exports Program, which includes the Solar Express initiative, offers enhanced financing for eligible U.S. exports, such as greater risk protection and capitalization of interest during construction.
The program has yielded noteworthy results for U.S. renewable energy companies. For example, Suniva, Inc., a U.S. manufacturer of high-efficiency solar cells and modules, received Ex-Im Bank’s 2010 Green Transaction of the Year award for using a $2 million, short-term, multi-buyer insurance policy from the bank to offer a $500,000 credit line to a customer in India, allowing the customer to buy Suniva’s solar equipment.
Likewise, Clipper Windpower Inc., a U.S. wind turbine producer, received the 2010 Ex-Im Deal of the Year award for breaking into the global marketplace by exporting 27 Liberty 2.5-megawatt wind turbines to Mexico, backed by a direct loan of $80.66 million from the bank. The wind turbines were installed in Oaxaca, Mexico, and are owned by Electrica del Valle de Mexico. See the Ex-Im Bank press releases on Suniva and Clipper Windpower.
FERC Aims to Ease Development of Small Hydropower Projects
The Federal Energy Regulatory Commission (FERC) took a step toward making its small hydropower licensing program more user-friendly by announcing a series of Web-based tools that will help developers understand the FERC licensing process and complete the license application process more quickly and efficiently.
FERC took the action in response to an increase in the number of inquiries about small hydropower projects. In 2009, FERC received almost twice as many inquiries about small hydropower issues than in 2008, and has received more applications for these types of projects in recent years.
The new Web resources, to be available on the FERC Web site in August, will walk applicants through the process of selecting a project site, determining if a project is jurisdictional, selecting a FERC licensing process, consulting with stakeholders, and preparing a license or exemption application. FERC also intends to improve its coordination with other agencies, and it will employ a new outreach program to educate potential small hydropower developers. See the FERC press release.
Renewable Energy to Grow Rapidly Over the Next 28 Years
Renewable energy will be the fastest-growing source of energy throughout the world over the next 28 years, helping to meet a projected 49% increase in world energy use, according to DOE’s Energy Information Administration (EIA).
The EIA released the highlights of its International Energy Outlook 2010 on May 25, and the reference case, sometimes referred to as the "business-as-usual" case, forecasts continued rapid growth in energy use in developing countries through 2035. China and India accounted for 20% of global energy use in 2007, but the EIA expects their consumption to more than double by 2035, when they will account for 30% of world energy use.
In general, the EIA reference case does not forecast a strong shift to clean energy throughout the world. While renewable power generation increases the fastest, at 3% per year, coal-fired power will also continue to increase, at a rate of 2.3% per year. The EIA report sees petroleum and liquid fuels remaining the world’s largest energy source through 2035, while natural gas consumption increases by 1.3% per year.
As a result, energy-related carbon emissions rise from 29.7 billion metric tons in 2007 to 42.4 billion metric tons in 2035, an increase of 43%. And while the reference case expects oil prices to reach $133 per barrel in 2035, even the EIA’s "high oil price" case dampens energy growth only slightly – a 46% increase by 2035. Energy-related carbon emissions still end up at 41.1 billion metric tons in 2035, an increase of 38%. See the EIA press release and the report highlights.
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EREE Network News is a weekly publication of the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy (EERE).
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