Stakeholder Accomplishment Stories and News Updates
Maryland Clean Cities wants to highlight the successes and challenges of coalition stakeholders each month. This gives stakeholders an opportunity to gain some recognition for the work they are doing to promote alternative fuels in their fleet and to help fellow stakeholders who may be going through similar process and struggles.
Please forward information to Chris Rice (crice@energy.state.md.us) for your story, accomplishments, or announcements to be included in future newsletters.
12 States File Lawsuit Against EPA
Twelve states, the District of Columbia, two cities and 11 environmental groups filed a lawsuit against U.S. EPA today seeking to force the writing of new regulations for the emissions of heat-trapping carbon dioxide from motor vehicles.
The lawsuit, led by Massachusetts, comes on the first anniversary of the Supreme Court ruling that found EPA has authority under the Clean Air Act to regulate tailpipe emissions of CO2.
Since then, EPA has pledged to revisit its regulatory approach to CO2, but so far it has offered no formal language, either as guidance or a draft rule or proposal, to address CO2 emissions from motor vehicles or other sources.
Today's lawsuit is an attempt to force the agency's hand. "The EPA is defying the Supreme Court and endangering our economy, our environment, and our health," Vickie Patton, deputy general counsel for the Environmental Defense Fund, said in a statement.
Petitioners are asking the U.S. Circuit Court of Appeals for the District of Columbia to order EPA to issue a formal determination about CO2's public health effects within 60 days.
If the agency finds such emissions threaten public health and welfare, it is required under the April 2, 2007, Supreme Court ruling to develop a regulatory framework for controlling the greenhouse gas from motor vehicles.
(Source E&E News Greenwire)
Responses to Time Magazine Article “”The Clean Energy Scam”
The article is another study that attacks the increased interest, crop growth, and production of ethanol that follows on the Searchinger and Fargione studies discussed in last month’s newsletter. One point the article makes is that the increased biofuels usage has on land use shifts that have increased the deforestation rates in Brazil. Several industry sources have released responses to the study pointing out the many and obvious issues with the logic and methodology (see links below). The article was published in the March 27, 2008 issue, so additional responses are likely to be released following this newsletter being published.
Links
Hearing on the House Select Committee of Energy Independence and Global Warming - 4/1/2008
Congress grilled Big Oil in a two and half hour long hearing. Chairman Markey suggested that the oil companies invest 10% of their earnings in renewables. Stephen Simon of Exxon was questioned a number of times about Exxon’s low rate of investment in renewable energy as well as a statement that Exxon-Mobil had paid more in taxes then it had earned.
The Oil executives were unanimous in requesting more access to oil reserves in places like the Gulf Coast, John Hofmeister of Shell suggested a new seismic survey be done of the Coast and approval of carbon caps.
Shells executive spoke approvingly of new tougher CAFE standards. When asked if gas refining capabilities would keep up with U.S. demand the executives were unanimous that it would. There are no new refineries planned, but improvements and expansions to existing infrastructure have already begun.
A number of the oil company executives spoke admiringly of Canada’s National Energy Policy, saying that it has helped with things like the recovery of oil from shale. When questioned about the effects of speculation on oil prices admitted it was a contributing factor, as well as political unrest in oil producing nations and the weakening dollar. One executive even stated that by their calculations, based on current actual demand oil should only be around $55 per barrel.
Simon of Exxon Mobil stated that Exxon currently blends about 8% ethanol, but that the number would be higher if there were no mandates Shell mentioned that a pilot ethanol program with E85 pumps in Chicago had produced little consumer interest. Conoco Phillips’ John Lowe stated the same for a similar program of theirs.
All of the executives said that their independent operators were allowed to have biofuels pumps, but that they could not be branded as their product (i.e. Exxon, BP, Shell, etc.), concern was expressed about the current lack of UL approval for biofuel pumps.
There was a little drama of the parliamentary procedure kind, when Chairman Markey requested unanimous consent so that Rep. Stupak (not a committee member) could ask the oil executives questions. Sensenbrenner (Ranking Member) objected, and Stupak wanted to know why he hadn’t objected earlier, prior to Stupaks sitting through a nearly three hour hearing. Oil executives also talked a bit about the bust in the nineties, which adversely affected them, and how the nature of the business was cyclical. The executives also felt that renewables effect on oil prices was small.
However, this is not the first time that the oil executives were brought into Congress to defend the record profits their companies have been making. Similar hearings were had on April, 1, 2007, March 15, 2006, and November 9, 2005, but had no effect on slowing the increase on gasoline and diesel prices.
EPA Clean Diesel Program Funding
For fiscal year 2008, Congress appropriated funds for the first time under the Energy Policy Act (2005) to help reduce harmful emissions from heavy duty diesel engines. Through the National Clean Diesel Campaign, the EPA will award grants to assist its eligible partners in building diesel emission reduction programs across the county that improve air quality and protect public health. EPA Region 3, as part of the Mid-Atlantic Diesel Collaborative, announces the availability of funds and solicits project proposals from eligible entities to reduce diesel emissions in EPA Region 3. The total estimated funding is approximately $3.1 million available for the deployment of EPA-verified and certified technologies. EPA Region 3 anticipates making 5-10 awards ranging from $200,000 to $1,000,000. The deadline for receipt of proposals is June 13, 2008.
Eligible vehicles, engines and equipment may include but are not limited to: buses; medium-duty or heavy-duty trucks; marine engines; locomotives; and nonroad engines or vehicles used in: i) construction; ii) handling or cargo (including at a port or airport); iii) agriculture; iv) mining; or v) energy production. Projects may include, but are not limited to, a variety of diesel emissions reduction solutions as described more fully below such as: add-on emission control retrofit technologies; idle reduction technologies; cleaner fuel use; engine repowers; engine upgrades; and/or vehicle or equipment replacement; and the creation of low-cost revolving loan programs to finance diesel emissions reduction projects. Refer to the RFP for more details.
Links:
New E85 Station in Rockville Open
A new E85 fueling location, co-funded by the Maryland Energy Administration, has just begun pumping E85 fuel. The station is Congressional Sunoco located at 1469 Rockville Pike in Rockville (north of Twinbrook Parkway and south of the Woodmont Country Club).
NREL E85 Station Business Case Study
Due to the increasing interest in E85, NREL performed a modeling study (E85 Retail Business Case: When and Why to Sell E85) that investigated the business case for retail stations to install E85 fueling infrastructure. One reason cited for stations installing E85 was to give them a way to differentiate themselves from other stations to increase business which is even more important as the profit margins continue to decrease (the rate has been ½¢ per gallon per year over the last 12 years). Carrying E85 is seen as a way to promote the station as being “green”, cutting edge, patriotic, and/or pro-farmer. Selling E85 can also be profitable, however due to various reasons such as upfront capital costs or operational changes, introduces risk into the decision. The study modeled several equipment scenarios for stations to install E85 fueling to determine the effect of variables to determine the most important for providing the best economic cases. Converting an existing mid-grade tank to hold E85 was the most profitable equipment options. Installing a new tank and then converting a premium tank were the next best equipment options, in that order. The effect of various variables were studied to determine their importance. The most significant variable, as could have been surmised, was the fuel volume throughput; sensitivity analysis determined that a good rule of thumb was at least 74,000 gallons per year. Equipment costs were a significant factor, only if a new tank was installed.
Vehicle and Alternative Fuel Update
A detailed compilation of relevant alternative fuel, hybrid electric, emissions reduction and other fuel efficiency improvement news in light-, medium-, and heavy-duty vehicles.
Click here for the detailed list
Stakeholder News Updates
Please forward information to Chris Rice (crice@energy.state.md.us) for your story, accomplishments, or announcements to be included in future newsletters.
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