Clean Fuel Taxicabs: An Overview

1. Clean Fuel Taxicabs:An Overview Assistant Commissioner for Safety & Emissions NYC Taxi and Limousine Commission Peter Schenkman September 18, 2006

2. Clean Fuel Technologies • Clean Fuels – Ready for “prime time?” • Propane - LPG • Compressed Natural Gas –CNG • Hybrid-Electric vehicles (HEV) • Clean gasoline-powered vehicles • Ethanol – E85 • Electric Power • Biodiesel • Hydrogen Fuel Cells

3. Propane - LPG • Also known as Liquefied Petroleum Gas • By-product of natural gas processing and petroleum refining • Environmental Impact • Up to 60% reduction in ozone or smog-producing emissions like carbon monoxide • Economic Impact • Domestically available • Generally cheaper on a per-gallon basis • Less energy content than gasoline

4. Propane - LPG • Vehicle Availability • More than 9 million vehicles in use worldwide and 200,000 in the US • Requires vehicle conversion (approximately $2,500) • Dedicated or non-dedicated (bi-fuel) conversions • Federal and state incentives available (tax credits, etc.) • http://www.eere.energy.gov/afdc/progs/tech_matrx.cgi • Taxi Use • Ottawa, Niagara, Toronto, Las Vegas, Cleveland

5. Compressed Natural Gas - CNG • Used most commonly in residential and commercial utility markets • Produced from gas wells or along with crude oil • Natural Gas can also come as Liquefied Natural Gas (LNG) • Environmental Impact • Between 60% - 90% reduction in smog emissions • Between 30% - 40% reduction in greenhouse gas (carbon dioxide) emissions • Economic Impact • Domestically supplied • Generally cheaper on a per-gallon basis • Less energy content

6. Compressed Natural Gas - CNG • Vehicle Availability • More than 5 million vehicles in use worldwide and 130,000 in the US • Limited OEM vehicles available • Generally requires vehicle conversion (approximately $2,000 - $4,000) • Dedicated or non-dedicated (bi-fuel) conversions • Federal and state incentives available (tax credits, etc.) • Taxicab Use • Several airports (including Seattle-Tacoma International) require the use of natural gas taxicabs • Lack of OEM vehicles may have negative impact • Ottawa, Palm Springs (CA), New York City, San Diego, San Francisco, Seattle, Toronto

7. Compressed Natural Gas - CNG • New York City experience • CNGs began service in early 1990s • OEM Ford Crown Victoria • After-market converted Ford Crown Victoria • Incentives • Vehicle retirement extensions • Partial rebates for purchase costs • Flaws • Limited number of fueling stations • Trunk storage space lost due to CNG tanks • 16 new CNGs recently put into service • After-market modifier re-entering the market

8. Hybrid-Electric Vehicles (HEV) • Popular choice as a clean vehicle • Not all hybrids are created equal • Impacts vary widely depending on specific vehicles and technology • Environmental Impact • Can lead to reduction in smog and greenhouse gas emissions • Economic Impact • Fuel economy savings are likely • Price premium of several thousand dollars • Federal and state incentives available (tax credits, etc.)

9. Hybrid-Electric Vehicles (HEV) • Vehicle Availability • Wide availability due to increasing consumer demand and OEM manufacturing • Taxicab Use • Limited number of cities have had hybrid taxicabs in service for up to several years • Initial reports indicate positive owner, driver and passenger feedback • Calgary, Winnipeg, New York City, San Francisco, Seattle, Toronto, Vancouver

10. Hybrid-Electric Vehicles (HEV) http://static.howstuffworks.com/gif/hybrid-car-hyper.jpg Courtesy of Daimler-Chrysler

11. Hybrid-Electric Vehicles (HEV) • New York City experience • HEVs began service in November 2005 • Ford Escape, Toyota Highlander, Toyota Prius • Strong performance during regular inspections • High level of driver satisfaction • Positive passenger response • 150+ HEVs in service today • Toyota Camry, Honda Civic, Lexus RX 400H, Mercury Mariner

12. http://www.driveclean.ca.gov/en/gv/images/emissions_MH5.gif Clean Gasoline-Powered Vehicles • Vehicle emissions standards established by the California Air Resources Board (CARB) • Vehicles certified based on smog and particulate matter emissions • Standards adopted by various states • CA, MA, ME, NY, VT

13. Clean Gasoline-Powered Vehicles • Environmental Impact • AT-PZEV and PZEV vehicles have zero evaporative emissions • Tailpipe emissions are 90% cleaner than typical new model year cars • EPA provides Air Pollution and Greenhouse Gas ratings • http://www.epa.gov/autoemissions/index.htm • Economic Impact • Uses regular gasoline • Better fuel economy than typical taxicab vehicles

14. Clean Gasoline-Powered Vehicles • Vehicle Availability • AT-PZEV and PZEV available as OEM vehicles in CARB states • 35 CARB certified 2005 model year vehicles (Accord, Camry, Focus, etc.) • No significant price premium • Taxicab Use • No significant taxicab-specific usage reports

15. Clean Gasoline-Powered Vehicles • Partial-Zero Emissions Vehicles (PZEVs) • Widely available in CARB states for popular models • Ford Focus-4Cylinder 26/32 mpg • Ford Fusion-4Cyclinder 24/32 mpg • Honda Accord-4Cylinder 24/34 mpg • Hyundai Elantra-4Cylinder 24/32 mpg • Mazda 3-4Cylinder 26/34 mpg • Nissan Altima-4Cylinder 23/29 mpg • Subaru Legacy-4Cylinder 23/30 mpg • Toyota Camry-4Cylinder 24/34 mpg • Volkswagon Golf-4Cylinder 24/30 mpg • Volkswagon Jetta-4Cylinder 25/31 mpg • Volvo V70-5Cylinder 22/30 mpg • EPA Highway/City Fuel Estimates

16. Ethanol – E85 • E85 is a blend of 85% ethanol and 15% gasoline • Vehicles known as Flex Fuel Vehicles (FFV) because they run on regular gasoline or E85 • Environmental Impact • Some reduction in smog and greenhouse gas emissions with use E85 • Renewable energy source produced from crops like corn • Economic Impact • Comparable prices on a per-gallon basis • Somewhat less energy content • Limited fueling network with most pumps in the Midwest • Federal and state incentives available (tax credits, etc.)

17. Ethanol – E85 • Vehicle Availability • FFVs have been sold widely – 5 million in the United States • American automakers have devoted significant marketing efforts • Taxicab Use • No significant taxicab-specific usage reports • E85 can have trouble igniting in cold weather

18. Electric Power Vehicles • Currently available technology has limited range • Used primarily for short-distance, specialized fleets • Environmental Impact • Zero-emissions vehicles • Relies on electric power which may have significant backend impacts • Economic savings • Generally cheaper on a per-mile driven bases – dependent on local utility rates • Federal and state incentives available (tax credits, etc.)

19. Electric Power Vehicles • Vehicle Availability • Limited OEM production • Currently focused on specialized fleets and localized usage • Taxicab Use • No significant usage reports available • Limited range poses most significant obstacle • New York City undertaking pilot program for lithium battery power

20. Courtesy of Hybrid Technologies, Inc. Electric Power • New York City experience • Pilot Program proposed by manufacturer of lithium-battery powered vehicle • PT Cruiser • Approved for limited field testing

21. Biodiesel • Type of diesel fuel produced from organic sources • Blend of 20% biodiesel and 80% diesel (B20) is most common • 100% biodiesel (B100) is newer and less available for use • Environmental Impacts • Older engines raised concerns about noise and emissions • Unclear if newer engines can comply with Clean Air standards • Economic Impacts • Generally more fuel efficient than gasoline engines so fuel economy is improved (up to 30%)

22. Biodiesel • Vehicle Availability • Limited number of passenger vehicles sold in the United States • Taxicab Use • Seattle • London Taxi uses regular diesel and is in use in limited number of cities • High vehicle maintenance costs represent significant obstacle

23. Hydrogen Fuel Cells • Concept cars, not reality yet • Combines hydrogen and oxygen to produce electricity, • Water and heat are main by-products  • Environmental impact • Zero-emissions • Economic Impact • Relies on supply of hydrogen to generate power • Hydrogen sources are still under development and may include fossil fuels or renewable energy sources

24. Hydrogen Fuel Cells • Vehicle Availability • Experimental technology with limited number of production vehicles and fuel infrastructure • Wide variety of OEMs are pursuing this technology • Taxi Industry • No applications at this time

25. Regulatory Considerations • How should “clean” be defined? • Technology (ie, hybrid) • Emissions • Fuel Economy • Should clean taxicabs be held to the same vehicle standards? • Passenger area • Vehicle retirement • How can the use of clean vehicles be increased? • Vehicle retirement or age limits • Vehicle Inspections • Regulatory or financial incentives

26. Regulatory Considerations Current New York City Experience • How should “clean” be defined? • Technology (Hybrid or CNG) • Should clean taxicabs be held to the same vehicle standards? • More permissive vehicle standards for hybrids • Retirement cycle extensions for CNG • How can the use of clean vehicles be increased? • Taxicab vehicle retirement rules • Specialized taxicab medallions (reduced prices) • Federally-funded rebates for CNG purchase

27. Value of Working With OEMs • Vehicle Development • Insight on OEM plans for deployment of clean fuel technology • Opportunity to offer regulatory input • Vehicle Enhancements • Ford Crown Victoria rear air conditioning • Ford Crown Victoria enhanced output alternator • Troubleshooting • Toyota Sienna radiator • Ford Crown Victoria shocks • Taxi-specific accessory development • Roof-lights, safety shields, meters, etc. can be tailored for compatibility

28. Overview of NYC Taxi Fleet

29. Regulatory Considerations • Vehicle Retirement • 20 out of 27 surveyed jurisdictions have vehicle retirement or age regulations • Generally based on age or model year • Retirement required between 3-10 years • At least one jurisdiction also uses mileage • Limited use of exemptions for policy goals • Accessible Vehicles • Clean Vehicles

30. Regulatory Considerations • Vehicle Inspections • Every surveyed jurisdiction requires at least annual vehicle inspections • 15 of the surveyed jurisdictions require more frequent vehicle inspections • 2-3 times per year • Frequency can also be based on accidents, previous inspection history or vehicle age/mileage

31. Educate, Communicate, Act • Clean cars are a hot topic for the general public, elected officials and advocacy groups • Transportation regulators should proactively study the issues and develop proposals • We risk losing control of regulatory authority

32. Educate, Communicate, Act Current New York City Experience • Local elected officials framed the regulatory agency as slow to act • NYC TLC moved forward with multiple clean vehicle initiatives • Still dealing with frequent legislative proposals • Compromising safety and reliability • Challenge to regulatory authority

33. Additional Sources • Introductions, Environmental Impact, Economic Impact, Vehicle Availability, Taxicab Use • US Department of Energy Alternative Fuels Data Center • http://www.eere.energy.gov/afdc/about.html • California Air Resources Board – Drive Clean California • http://www.driveclean.ca.gov/en/gv/home/index.asp • IATR jurisdictional survey • Additional information • Alternative Fuel Vehicles Institute – 2007 Conference/Expo • http://www.afvi.org/NationalConference2007/index.html

34. Clean Fuel Taxicabs:An Overview Assistant Commissioner for Safety & Emissions NYC Taxi and Limousine Commission Peter Schenkman September 18, 2006