Electric Cars on Course
June 16, 2010

Ken Silverstein
EnergyBiz Insider
Editor-in-Chief
Electric vehicles are on course to make their debut this fall. But they
got an unexpected boost in the wake of the oil spill in the Gulf of
Mexico. A bipartisan group of U.S. lawmakers has just sponsored
legislation to advance the cause.
This country's voracious appetite for oil is adding to pollution rates
as well as aiding countries unfriendly to its interest. By encouraging
the use of electric cars, policymakers are attempting to address the
issues of oil addiction and air emissions, although it is unclear just
how successful they will be at either one.
"Oil dependence is not a conservative or a liberal issue -- it is a
threat to our entire nation, and we are thankful that these leaders in
the House and Senate have come together to face it head on," says Robbie
Diamond, chief executive of the Electrification Coalition.
The group released late last year a roadmap that calls for the creation
of a national infrastructure to promote the use of more electric
vehicles. The efforts would begin in key geographic regions involving
urbanized populations where citizens would welcome the idea and where
they would need recharging stations.
To that end, the coalition commissioned a study that concludes that the
typical U.S. household would spend less per year directly on energy for
transportation if cars were electrified. By 2030, they would save about
$3,600 in 2008 dollars. It also said that U.S. crude oil and petroleum
product imports would fall 3.2 million barrels per day by 2030.
Cumulatively, between 2010 and 2030, the United States would import
nearly 11.9 billion fewer barrels of foreign oil.
Prior to the Gulf oil spill, the U.S. Congress had backed efforts to
facilitate the growth of the electric car. It has provided up to $7,500
in tax credits and as much as $25 billion to develop alternative fuels.
But the new proposals go even further: The Senate measure would offer
$2,500 more to consumers in tax credits while providing up to $250
million in grants to 15 different jurisdictions to build the
infrastructure. The House's version would give consumers $2,000 more in
credits while allocating $800 million in grants to five disparate areas.
While bipartisan, the bills are in keeping with the Obama
administration's theme of building a new economy based on green
technologies. The White House has challenged the auto industry to get 1
million plug-in hybrid vehicles on the road by 2015. The industry has
said it expects 700,000 of them to be on the road in a few years.
"I believe we are on the cusp of the next great tectonic shift in our
economy, one that will transform the way we use energy both in our homes
and on the road," says David Crane, chief executive of NRG Energy, in a
speech.
The Potholes
GM plans to introduce its Chevy Volt by November. It will be a plug-in
hybrid that is powered by a stack of lithium batteries. The car will
able to run 40 miles between juice-ups at which point a small gasoline
engine creates electricity using a generator to extend the Volt's range
to more than 300 miles. Meantime, Nissan will unveil its all-electric
Leaf around the same time. That car is expected to run 100 miles before
it would have to be recharged.
In the case of GM, it says that the difference between its modern
version of the electric car and its failed model from a generation ago
is that the older one did not have a back-up fuel supply. Therefore, it
could only go short distances. But the company emphasizes that without
the accompanying infrastructure, national goals to put more such cars on
the road will fall short.
Beyond the obvious concerns, there's the issue of displacing the
internal combustion engine. The technologies work. But whether they will
be reliable is another question as is whether the technologies to
support them will get better and cheaper with experience. For Detroit's
part, it says that the all-electric vehicle will become part of its
domain and that it will export this knowledge.
There's also the matter over whether the utilities providing the power
will be able to deliver. While utilities say that they will be able to
gear up to meet this challenge, others are saying not-so-fast. That's
because they worry about what fuels would be used to power-up those
electric cars. If it is predominately coal, they say it would do nothing
to improve air emissions and would only exacerbate climate change.
Plug-in hybrid electric vehicles emit less carbon dioxide than their
counterparts in the conventional world. After the emissions at
generating stations that supply their electrical power are incorporated,
however, they cannot sustain that advantage, says a report issued last
December by the National Research Council.
Beyond 2030, the council says that plug-in hybrids could account for
significant reductions in U.S. carbon dioxide emissions. But it adds
that will only happen if electricity generation plants fired by fossil
fuels are equipped with carbon capture and storage systems or replaced
with renewable energy or nuclear-powered plants. With coal expected to
supply the preponderance of electric generation for decades to come, it
says that the overall benefits to electric cars will be nominal.
The good news is that the country has expanded its thinking. Alternative
modes of transportation are now making headway. The dependency on
foreign oil supplies triggered the movement. The Gulf oil spill and
concerns over climate change have only accelerated it. If the new path
is to pay off, though, utilities must provide a cleaner and more
efficient source of power to fuel these vehicles.

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