Mobile Source Air Pollution

1. Mobile Source Air Pollution Matt Bono, Swati Garg, Paul Heyborne

2. Outline • What are mobile sources? • Major Pollutants • Major Legislation • Policy Instruments

3. What are Mobile Sources? • "Mobile sources" is a term used to describe a wide variety of vehicles, engines, and equipment that generate air pollution and that move, or can be moved, from place to place.

4. Mobile Sources • On road vehicles • Light, medium and heavy-duty vehicles and trucks • Motor Cycles • Non-road vehicles, engines, and equipment • Recreational engines • Construction equipment • Farm equipment • Aircraft • Marine vessels • Locomotives

5. Major Air Pollutants • Carbon Monoxide • Carbon Dioxide • Hydrocarbons • Nitrogen Oxides • Particulate Matter • Over 1100 Air Toxics

7. Negative Impacts of Pollution • Climate Change • Health Effects • Asthma • Lung Irritation • Reproductive Problems / Birth Defects • Cancer • Decreased Visibility

8. Regulatory Agencies • Environmental Protection Agency • Department of Energy • Federal Aviation Administration • Department of Transportation • Federal Highway Administration • National Highway Traffic Safety Administration • State Regulatory Agencies • California Air Resources Board

9. Regulatory Laws • The Air Pollution Control Act of 1955 • Clean Air Act of 1963 • Motor Vehicle Air Pollution Control Act 1965 • Air Quality Act of 1967 • Clean Air Act 1970 • 1977 Amendments to the Clean Air Act of 1970 • 1990 Amendments to the Clean Air Act of 1970

10. Major Legislation • Air Pollution Control Act of 1955 • The first federal legislation specifically addressing air pollution in the United States • Designed to provide federal funds for research into the sources and potential impacts of domestic air pollution emissions • “[f]ederal financial assistance and leadership is essential for the development of cooperative Federal, State, regional, and local programs to prevent and control air pollution.”

11. Major Legislation • Motor Vehicle Air Pollution Control Act 1965 • The first federal legislation designed to control emissions from automobiles • The Act gave the Department of Health, Education, and Welfare (subsequently separated into the Department of Education and the Department of Health and Human Services in 1979) the authority to establish the first federally-mandated light duty vehicle emission standards. • The act required a 72% reduction in hydrocarbon emissions, a 56% reduction in carbon monoxide emissions, and a complete elimination of crankcase hydrocarbon emissions for all light duty vehicles produced after 1968, using a 1963 base year.

12. Major Legislation • Clean Air Act

13. Labeling Policies Electric Vehicles Gas and Diesel Vehicles

14. Labeling Policies Electric Vehicles Gas and Diesel Vehicles

15. Why Labels? • EPA states that the purpose of the new labels is to “provide consumers with simple, straightforward comparisons across all vehicle types, including electric vehicles (EV), plug-in hybrid electric vehicles (PHEV), and conventional gasoline vehicles.” • The Goal? Information! • Essentially, consumers are often ignorant about the true costs and benefits of purchasing particular products. • These labels help to correct information asymmetries and allow consumers to make better decisions when allocating scarce resources.

16. Taxes Gas Guzzler Tax Tax Schedule • The Energy Tax Act of 1978 • Imposed on manufacturers selling cars that fail to meet certain statutory fuel economy levels • Manufacturers of new cars that fail to meet the minimum fuel economy level of 22.5 miles per gallon • Loophole: the tax does not apply to minivans, sport utility vehicles, and pick-up trucks! Source: EPA

17. Who Pays the Gas Guzzler Tax? Source: National Highway Traffic Safety Administration

18. Why a Gas Guzzler Tax? • The transportation sector is the second largest source of CO2 emissions in the U.S. • These emissions have grown steadily since 1990 • Automobiles and light-duty trucks account for nearly two-thirds of emissions from the transportation sector • The Gas Guzzler Tax – A policy tool designed to reduce vehicle emissions by penalizing inefficiency

19. Tax Credits Example #1 Example #2 Example #3 • Qualified Plug-In Electric Drive Motor Vehicle Tax Credit • Credit ranges from $2,500 to $7,500 • Based on battery capacity and gross vehicle weight rating • Advanced Biofuel Production Payments • Eligible producers of advanced biofuels, or fuels derived from renewable biomass other than corn kernel starch • Payment amounts will depend on the quantity and duration of production by the eligible producer • Fuel Cell Motor Vehicle Tax Credit • Credit originally set at $8,000 but reduced to $4,000 • All new light-duty fuel cell vehicles • Credits also available for medium and heavy-duty fuel cell vehicles (credit amount based on vehicle weight)

20. Voluntary Programs Clean Cities Program (DOE) Results? • Mission: To advance energy, economic, and environmental security by supporting practices that reduce petroleum use in the transportation sector • Goals: • Replacement: Replace petroleum used in the transportation sector with alternative and renewable fuels • Reduction: Reduce petroleum use by promoting smarter driving practices, idle reduction, fuel-efficient vehicles, and advanced technologies • Elimination: Eliminating petroleum use by encouraging greater use of mass transit systems, trip-elimination measures, and congestion mitigation Source: DOE

21. Voluntary Programs Clean School Bus USA (EPA) Public-Private Partnership • Mission: To reduce children's exposure to diesel exhaust and the amount of air pollution created by diesel school buses • Why is this important? • 24 million American children ride school buses daily • On average, these students spend an hour and a half each day in a school bus • School buses drive more than 4 billion miles each year • Encourages policies and practices to eliminate unnecessary public school bus idling • Upgrading and retrofitting buses that will remain in the fleet with better emission-control technologies and/or fueling them with cleaner fuels • Replacing the oldest buses in the fleet with new, less-polluting buses

22. Voluntary Programs Voluntary Airport Low Emission Program (FAA) Specific Priorities • Established in 2004 to help improve airport air quality • Provides funding to U.S. commercial service airports located in air quality nonattainment and maintenance areas • Funding can be used to reduce emissions from both mobile and stationary sources at the airport • Eligible technologies range from low-emission vehicles to major infrastructure improvements • Underground Fuel Hydrants • Installation of underground fuel hydrant systems eliminates emissions from fuel trucks • Electric Ground Support Equipment • Bag tugs, belt loaders, pushback tractors • Airport Transit Connections • Intermodal connections at airports greatly reduce vehicle trips and emissions

23. Command & Control: Fuel • Clean Air Act • 1973: Gradual phase down of lead in gasoline • 1989: Required volatility standards

24. Marketable Allowances • 2007: Mobile Source Air Toxics Rule • Refiners and importers must produce gasoline with annual average benzene content of 0.62% volume or less beginning in 2011 (currently 1%) • Early credits can be earned if annual gasoline benzene levels are below 0.62% before 2011 • Certain acceptable technologies allowed • Refiners can petition EPA to approve new technologies • Allows for nationwide banking and trading system • Benzene levels can not exceed 1.3% even with credits

25. Conclusion • Command and control vs Voluntary Programs • Importance of information databases • Dual purposes served by Fuel Enforcement • Coordination among various regulatory agencies is crucial

26. Questions & Comments

27. THANK YOU