Energy Law 9 – Transportation Fall 2013 November 5, 2013 Alan Palmiter Brian Bowman Not for...
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Transcript of Energy Law 9 – Transportation Fall 2013 November 5, 2013 Alan Palmiter Brian Bowman Not for...
Energy Law
9 – Transportation
Fall 2013November 5, 2013
Alan PalmiterBrian Bowman
Not for distribution- for study purposes only
Topic roadmap1. U.S. transportation
– History of transportation– Highway infrastructure
2. Powering transportation sector– Internal combustion engine– Electric cars– Natural gas vehicles– Hydrogen fuel cells– Biofuels
3. Regulation of fuels / auto industry– CAFÉ standards – Auto air pollution regulation– Restructuring of auto industry
4. Future of transportation– American decentralization and recentralization– Improving motor vehicle network
9
Energy Flow, 2011 (Quadrillion Btu)
1. U.S. Transportation
EIA, Annual Energy Review (2011)
http://www.eia.gov/totalenergy/data/annual/pecss_diagram.cfm
1700 19501900 20001850
US transportation - timeline
Railway t
ravel -
one milli
on passengers
NE to CA (1
872)
Duryea Brothers
– first auto plant (1
895)
John Calhoun – proposes unified ro
ad/canal sy
stem (1
816)
Henry Fo
rd – auto assembly l
ine (1908)
James Watt – st
eam engine (1781)
Hoover/R
oosevelt –
highway constr
uction (1
930s)
Eisenhower –
NHS (1950s)
Robert Fulto
n – steamship Albany t
o NYC (1
807)
US auto sales <
50%
(2007)
Source: Wikipedia
(Click for video – 1.51 )
Highway Infrastructure
Overton Park v. Volpe (US 1971)
(Click for video – 1:33 )
Public transportation & technology
(Click for video – 3:35 )
2. Powering U.S. transportation
Model-T (internal combustion engine)
Alternatives to gasoline-powered ICE
Electric cars• Electric battery as fuel source• 1900: outsold every other type• Downfall: New roads / longer
distances / cheap oil• Recent popularity (since 1990s)
Compressed natural gas• Natural gas input for internal
combustion engine• Relatively safe and reliable• Lack of infrastructure
Hydrogen fuel cells• Hydrogen gas: separates into
protons and electrons – to generate power
• Only bi-product is water• Technology: expensive, derived
from natural gas, and safety perceptions
Biofuels• Produced from organic material• Common: ethanol /biodiesel• Debate: trade-off between
supply security / impact on food
Alternatives to gasoline-powered ICE
Click for video -1:49
Biofuels – interactive
Biofuels
Pros: Integrates well with
existing technology. Renewable resource. Greater security of
supply. Cleaner emissions.
Cons: Production may result
in net energy loss. Could impact food
supply. Discourages
conservation. Requires ‘flex-fuel’
equipment.
1. True or false? Henry Ford’s Model T was first powered by alcohol, not gasoline.
2. Which is true – a. The U.S. interstate is the
largest in the world.b. The U.S. interstate is 10x the
circumference of the earth.c. The modern interstate
system was conceived by FDR.
d. The U.S. interstate is the second largest public works project behind TVA.
3. Which is false -a. Lack of infrastructure hinders the
deployment of natural gas powered cars.
b. Only emission from hydrogen fueled cars is carbon monoxide.
c. Biofuels are produced from organic material.
d. Some biofuel production may result in a net loss of energy.
4. True or False? At the beginning of the 20th century, cars with electric motors were more popular than cars with internal combustion engines.
Pop QuizTransportation
Answers: 1-T / 2-a / 3-b / 4-T
Automotive air pollution regulation• Car + light truck emissions: EPA under the CAA• Massachusetts v. EPA (US 2007): under CAA
authority, EPA must regulate GHGs
Corporate Average Fuel Economy (CAFE)• Since 1975, vehicle fuel efficiency regulated• EISA of 2007 (and Obama agreements) raise
CAFE minimums• CAFE standards: 54.5 miles per by 2025
Biofuels mandates• Biofuels (i.e. ethanol) mandated• EPA of 2005: Renewable Fuel Standard (RFS) • By 2022, 36 billion gallons of blended ethanol
3. Regulation of fuels & the auto industry
1900 19901960 20201930
Transportation regulation - timeline
Federal A
id Road Act (1916)
Clean Air Act
(1970)
Federal A
id Highway Act
(1921)
Federal A
id Highway Act
(1956)
Energy Policy
Act (2005)
Mass. v.
EPA (2
007)
EISA (2
007)
Citizens to Preserve
Overto
n Park v. V
olpe (1971)
Massachusetts v. EPA (US 2007)
1973: CAA S 202(a)(1) requires EPA to set emission standards for "any air pollutant" from motor vehicles "which in [EPA’s] judgment causes, or contributes to, air pollution which may reasonably be anticipated to endanger public health or welfare.”
2003: EPA says lacks CAA authority to regulate GHGs for climate change purposes / and would decline to regulate, if did
Massachusetts v. EPA (US 2007)
2007 (Stevens): greenhouse gases fit well within the CAA’s capacious definition of air pollutant / remand to EPA on whether agency has discretion
2009: EPA concludes 6 GHGs in atmosphere may reasonably be anticipated both to endanger public health and to endanger public welfare / broad regulatory agenda
2012: DC Circuit dismisses challenges to EPA's endangerment finding and GHG regulations / accepts GHG such as CO2 endanger public health and likely responsible for global warming
1. True or false? CAFE standards were introduced in 1975.
2. Which is false – a. The NHTSA sets the CAFE
standardsb. The CAFE standards apply to
cars and light trucksc. The CAFE standards measure
auto makers’ sales-weighted fleet’s average fuel economy
d. An auto maker that fails to meet the CAFE standards must pay a penalty for only non-complying vehicles
3. Which is true --a. The CAFE standards for a Honda Fit
are the same as for a Ford F-150b. Under new CAFE standards
medium-duty and heavy-duty trucks are not covered
c. By 2016 auto makers are to meet a CAFE standard target of 28.5 mpg
d. The 2011 CAFE standards vary according to vehicle size
4. True or false? US vehicles by being bigger (though less fuel-efficient) are safer than other 1st-world countries, which have smaller vehicles
Pop QuizTransportation – CAFE standards
Answers: 1-T / 2-d / 3-d / 4-F
Auto industry
US auto manufacturing industry:• Throughout 1990s,
inefficient fuel regulations and dividend payouts reduce money for development of more efficient vehicles
• The Great Recession (2007); new vehicle sales plummet.
• Federal gov’t bailout (2008)
1. True or false? Biofuel production is heavily supported by federal mandates.
2. Which is false – a. The Energy Policy Act of 2005
establishes the Renewable Fuel Standard.
b. The Energy Independence and Security Act of 2007 establishes the Renewable Fuel Standard.
c. CAFÉ standards and dividend payouts in the 1990s may have discouraged innovation in the US auto industry.
d. Vehicle fuel efficiency is regulated under Corporate Average Fuel Economy standards.
3. Which is true --a. The EPA regulates car and light truck
emission standards under its CAA authority.
b. The EPA regulates heavy truck emission standards under its CAA authority.
c. The EPA regulates car and light truck emission standards under its Energy Policy Act of 2005 authority.
d. The EPA regulates heavy truck emission standards under its Energy Policy Act of 2005 authority.
4. In Mass. v. EPA, the court held that although GHGs are pollutants it is up to the EPA to decide whether regulation of such pollutants is required.
Pop QuizTransportation – regulation
Answers: 1-T / 2-b / 3-a / 4-F
4.Future of transportation
(Click for video – 2:55)
‘Built To Last’ – US decentralization and recentralization
Improving the motor vehicle network (Click for video – 1:35)
(Click for video – 1:33)
Class HypoWho is liable when an autonomous car crashes?
Suppose California’s legislature is considering a bill to shield self-driving car manufacturers, software providers and state roadway agencies from liability stemming from an “autonomous car” crash. Instead, the driver of a self-driving car will be liable for any damage or injuries caused by the crash -- just as if operating a traditional automobile.
Please provide talking points for your group’s view on this proposed legislation.
• Group 1: Google (self-driving car software provider).
• Group 2: CA Department of Transportation.
• Group 3: American Automobile Association.
Class HypoThe Obama Administration has recently concluded agreements with the major American automakers that would require such manufacturers to produce automobiles that exceed the Corporate Average Fuel Economy standards required by the Energy Independence and Security Act of 2007.
In a simulation of the talks that preceded the signing of these agreements, please produce talking points from each of the three groups below that discusses why, from your perspective, agreeing to more stringent CAFE standards is in your best interest and that of your constituents.
Group 1: American Automobile Association
Group 2: Obama Administration
Group 3: United Automobile Workers
The end