Tesla Motors received $10 million through CEC while promising to supply at least $50 million for production of the Model X. This all-electric SUV promises 250 miles per charge as well as stylish “Falcon Doors” when production begins in 2014. An important factor for the CEC in choosing Tesla Motors for 50% of the grant take was the creation of new jobs. Tesla already employs 3,000 people in Fremont, California with a majority of workers on the factory floor. This workforce could expand by about 500 with the help of the CEC grant.

Another major recipient of CEC grant funds is Zero Motorcycles, which hopes to significantly expand production of electric bikes in Scotts Valley. The manufacturer of all-electric motorcycles once relied on factories in China to keep costs low enough to accommodate customers. Zero Motorcycles recently shifted all production to California and will use a CEC grant worth $1.8 million to expand factory capacity. CEC hopes that Zero Motorcycles lives up to its goal of quadrupling production not only to reduce motorcycle emissions but create jobs in a state hit hard by the economic downturn.

The CEC continued to pursue other approaches necessary for green vehicle infrastructure. The City of Mount Shasta received $200,000 to complete a PEV readiness plan for three surrounding counties, paving the way for plug-in vehicles. A total of $2.5 million was issued to A-Z Bus Sales, Big Valley Ford and 16 other recipients to offset price differences between alt-fuel and traditional vehicles. Valley Garbage and Rubbish in Santa Maria received $300,000 to create a CNG fueling station necessary for fleet conversion. The Alternative Renewable Fuel and Vehicle Technology Program acts as a model for effective investment in the future of alt-fuel vehicles.

Every state resident is eligible for the OCC rebate program by applying through Oklahoma Natural Gas (ONG). Consumers interested in purchasing new CNG vehicles can receive rebates up to $2,500. A dual-fuel vehicle including a retrofitted CNG system is eligible for $1,500 in rebates. Homeowners interested in refueling stations on their properties can apply for $2,500 OCC rebates. These rebates are limited to three rebates per customer each year.

Funding for the OCC rebate program is taken from CNG users rather than public coffers. A 25 cent per gallon surcharge will be applied on CNG purchases from ONG fueling stations located throughout the state. This funding mechanism ensures growth in the rebate program as increased CNG purchases will yield greater funds for reimbursement. The OCC also avoided frustration by traditional drivers by applying the tax on CNG users who avoid more expensive excise taxes. A gallon equivalent at an ONG station with the surcharge should still be lower than CNG pumped from private providers due to the volume of natural gas purchased by the utility.

The natural gas market has taken a nose dive over the past year due to excessive supply and steady demand. State and federal agencies continue to push CNG as a low-emissions alternative through tax credits as well as subsidies. The U.S. Department of Energy notes that states have created 348 laws promoting CNG use as of early 2012. Congress has allowed incentives for CNG ownership to lapse including a 30% tax credit on refueling infrastructure and a 50% credit for new vehicle purchases. A concerted effort to develop infrastructure that leverages low natural gas prices and incentivize CNG ownership should place this alternative fuel ahead of the pack.

New Zealand initiated an exemption on RUCs for light-duty electrified vehicles in 2009 with expiration set for 2013. The exemption has been extended to 2020 for all-electric vehicles weighing less than 3.5 tons. This exemption will extend to plug-in hybrids using diesel instead of gasoline once these models are introduced. The federal government had previously encouraged the use of diesel engines instead of gas to achieve fuel economy increases. This exemption eliminates an important barrier to entry for EV manufacturers looking at the New Zealand market.

The recent changes to RUC policy increase rates for traditional vehicles alongside increases to the fuel tax charged at the pump. Diesel vehicles driven on New Zealand roads will be charged RUC rates of 4.1% starting in August. Fuel taxes charged to natural gas and gasoline vehicles increase by two cents per liter, which should increase average operating costs by $30 per year. The New Zealand Transport Agency estimates that operating costs will rise by 0.4% for commercial operators and 0.9% for individuals due to this increase. This revenue stream supplements a road construction fund of $2.65 billion collected in the past two years.

Regional and federal governments throughout the world are contending with the thorny question of how to fund roads with dwindling gasoline taxes. Motorists are cutting down on mileage due to high fuel prices and the introduction of highly efficient models cuts down on fuel consumption. Solutions including EV ownership taxes and tolls have been introduced in the United States to combat budgetary shortfalls. The New Zealand solution seems sensible enough for hybrid and EV owners though traditional drivers are squeezed for more money to fill the funding gap. Given the ongoing economic malaise throughout the world, governments may need to combine these methods to encourage EV adoption while funding roadways.

State grants through the Texas Clean Fleet Program will be used largely to reimburse upfront costs for alt-fuel vehicles. The program defines alt-fuel vehicles as any vehicle powered by electricity, compressed natural gas (CNG), hydrogen, propane or M85. The Texas Commission on Environmental Quality will also select qualifying hybrids that use at least two energy sources for propulsion. Grant recipients will receive between 50% and 80% reimbursement for the costs of replacing traditional vehicles.

Major criteria for this round of grant funding including emissions reductions, fleet size and public demonstrations in Texas cities. Each applicant must achieve an estimated cut of 25% in nitrogen oxide emissions to become a finalist. Successful applicants are required to operate a fleet of at least 75 passenger vehicles and plan replacement of at least 20 vehicles. The Texas Commission on Environmental Quality requires funded projects to operate in Austin, Corpus Christi, Dallas-Fort Worth, Houston, Port Arthur, San Antonio, Tyler-Longview or Victoria. These operations must last at least five years or 400,000 miles in order to educate the public about alt-fuel vehicles and encourage investment in local industries.

The U.S. Energy Information Administration (EIA) notes that Texas has the second largest fleet of alt-fuel vehicles behind California. The Lone Star State combines research universities including the flagship university in Austin with energy industry powers based in Houston, San Antonio and Dallas. Texas is often painted as a conservative stronghold locked in thrall of the oil industry. The Texas Clean Fleet Program makes strides against this perception albeit with a relatively small investment. Applicants seeking $5.7 million in state grants are pushing Texas toward an energy industry that can be profitable as well as environmentally responsible.

MECA contrasted the diesel retrofit devices sold in 2011 with the enormous diesel fleet currently operating throughout America. The sales of diesel retrofits broke down to 57% DPFs, 23% diesel oxidation catalysts (DOC) and 20% for flow-through filters (FTFs) including crankcase filters. California represented 37.4% of total sales of diesel retrofit device including 6,729 DPFs in 2011. MECA notes that DPF sales have increased slightly each year since 2009 but DOC and FTF sales have dropped dramatically over the same period. The organization’s report placed these sales into the daunting context of a diesel vehicle market with 20 million units in the United States.

The regulatory environment at the state and federal level has not stoked diesel retrofits as hoped by MECA. The California Air Resources Board (CARB) requires the use of DPFs in commercial trucks and buses by 2014. Companies operating in California have fueled the lion’s share of DPF sales but have also waited out this regulation. The U.S. Congress passed the Diesel Emissions Reduction Act (DERA) in 2007, providing $531 million through 2011 for the National Clean Diesel Campaign. An appropriation of a mere $30 million has been issued to the National Clean Diesel Campaign through 2016.

Operators and manufacturers have also moved away from diesel retrofits in order to cut emissions. MECA’s annual report indicates that firms are opting for replacing vehicles and engines rather than adding cumbersome filtration equipment. The focus of state and federal grants has been on retrofits rather than vehicle replacements because the former is more cost effective. We should not be looking for the quickest and cheapest means of reducing emissions within the commercial vehicle industry. The ideal path is lined with private funding and government grants that focus on replacing each diesel truck with a fuel-efficient alternative.

350Green LLC currently manages quick-charge stations along the state’s extensive network of toll roads near Chicago. The private firm handles day-to-day management for eight charging stations on the Tri-State Tollway, the Jane Addams Memorial Tollway and the Des Plaines Oasis. Governor Quinn has stated that 73 quick-charging stations will be added to toll oases within the next five years. EV drivers start by acquiring a rechargeable account card from 350Green that provides access to each station. 350Green LLC offers the card for $21 with three quick-charging sessions available upon activation.

The City of Chicago has combined $1.9 million in public funds with $6.9 million in investments by local firms to fund EV chargers within city limits. A major partner in reaching the initial goal of 280 charging stations is 7-Eleven. The ubiquitous convenience chain has already allowed stations at four stores on the Illinois Tollway with agreements for additional stations within the city. Municipal officials have selected heavily traveled streets, parking structures and businesses for future installations. The Chicago-Area EV Infrastructure Project is currently the most extensive network of quick-charging stations in the United States, which highlights the dearth of EV infrastructure nationwide.

Illinois has the production capacity, funds and political will to push forward with innovative approaches to transportation. The Department of Commerce and Economic Opportunity was recently promised $10 million to further invest in EV infrastructure projects and vehicle manufacturing. The state’s Environmental Protection Agency now offers a program with rebates up to $4,000 per new EV purchase. The Illinois Commerce Commission is currently exploring state and federal regulatory hurdles that could halt infrastructure development. This combination of municipal and state resources could not only yield comprehensive EV infrastructure but a blueprint for major metro areas around the world.

Gallup found that nearly 17% of respondents might adjust their driving habits with gas prices approaching $4 per gallon. Analysts found another 28% who would consider cutting back on driving and other spending habits once the price per gallon exceeds $4. These figures show that American drivers are becoming concerned about gas prices but are not moved to take action. Gallup determined that the average price per gallon where respondents would definitely make changes was $5.30. Prices at the pump would need to increase drastically before a majority of drivers would use carpools, public transportation and other options to complete daily tasks.

This poll also concluded that respondents wanted action by the federal government to cap gas prices. Gallup determined that 65% of respondents thought President Obama and Congress could have an influence on gas prices. Another 31% of respondents saw hiked gas prices as an international rather than a national issue. The biggest proponents for federal government action are Republicans and independents that lean conservative while Democrats were more likely to believe gas prices were beyond the government’s control. Gallup only found a 9% split between Republicans (90%) and Democrats (81%) who wanted to take action, showing economic concerns that transcend political divisions.

Key indicators of oil prices like the Brent Crude have shown a steady increase in 2012 as well as a decade-long rise in gas prices. Local news stations could repeat stories regarding pain at the pump every few months thanks to fluctuations in the market. The Gallup poll shows that consumers are stuck with rising gas prices given long commutes and lacking alternatives. Local, state and federal governments can take action toward eliminating this dependence by developing a fuel-neutral transportation system. Commuters could use vehicles powered by ethanol, electricity, natural gas and other fuels that cannot be easily manipulated during international crises. This revolutionary shift will not take place in the near future as legislators are divided between green energy and domestic oil drilling.

The National Community Deployment Challenge dovetails with legislation by Senators Jeff Merkley (D-OR) and Lamar Alexander (R-TN). The Promoting Electric Vehicles legislation would create incentives for communities to develop charging infrastructure necessary for mass EV adoption. President Obama’s proposal would not focus solely on EVs, allowing communities to invest in biofuels, natural gas and other fuel sources. Five communities chosen for this new federal program could receive funds to develop infrastructure corridors for vehicles using Liquefied Natural Gas (LNG). The National Community Deployment Challenge would encourage holistic development of infrastructure including refueling stations, billing, parking adjustments and local tax incentives.

President Obama described a series of tax credits and adjustments that could significantly reduce EV operating costs. The consumer tax credit could increase from $7,500 to $10,000 with more vehicles eligible for the credit. Owners and operators with alt-fuel commercial trucks would receive credits up to 50% of operating costs spread over five years. An important element of this plan is the portability of the credit, allowing the buyer to transfer the credit to a dealer in exchange for immediate savings.

The EV Everywhere initiative could draw significant criticism from Republicans who have harped on the administration’s failed bets on alternative energy. President Obama has pressed for $650 million for Department of Energy programs that would cover R&D grants for batteries, EV drive systems and other components. EV Everywhere would issue these grants to automakers and parts manufacturers to reduce production costs as well as retail prices. Republicans have used the failure of federal loan recipients like Solyndra to attack the alternative fuel industry as a flight of fancy. Election year politics will likely derail an ambitious proposal that would put America on track for a more sustainable transportation system.

Researchers at Transport for London are instructing Londoners to shut off their engines when idling for more than one minute. City officials note that “no engine idling” applies not only to passenger vehicles but city buses, taxis and every other vehicle on London roads. This campaign is based on research at the Millbrook Proving Ground that should eliminate concerns about wearing out vehicle starters and batteries. Transport for London found that cars, buses and trucks that repeatedly stop and start do not experience technical problems over thousands of key turns. The “no engine idling” campaign focuses particularly on London’s black cabs, which contribute 25% of the city’s emissions with about 15% produced while idling.

The push for the “no engine idling campaign” goes beyond London’s desire to put on a good show this summer. The Confederation of Passenger Transport has worked with the Freight Transport Association and Asthma UK to study the health impacts of greenhouse emissions. Asthma UK estimates that vehicle pollution contributes to nearly 4,300 deaths in London each year especially among sensitive populations like children and the elderly. The City of London and Transport for London are highlighting the compounding effect of air pollution on cyclists, pedestrians and others exposed to contaminated air during this campaign.

Mayor Boris Johnson and Transport for London have demonstrated an effective corollary to green vehicle development. Big cities like London are moving toward greener transportation but full immersion of EVs, alt-fuel vehicles and hybrids will take at least a generation. The gradual introduction of green vehicles in London combined with efforts like the “no engine idling” campaign should cut emissions significantly within the decade. The intersection of technology with public policy dealing with reduced emissions seems far in the distance but Mayor Johnson has taken steps in the right direction.

Toyota, Citroen and Peugeot sit at the head of the class within the EEA report. Toyota Motor Europe has achieved the 2012 emissions goal based on 2010 vehicle sales. These vehicles also fall within one g/km on average of reaching the 2015 standard. Citroen and Peugeot have already hit 2012 standards with their latest models. Both automakers need only cut 5 g/km on average to reach the EU’s 2015 goal. A trio of smaller automakers has produced all-electric vehicles that slightly reduce the industry’s aggregate emissions. The European Commission established incentives for automakers that achieve these goals on time including emissions credits and tax incentives. The EEA lauds these automakers while noting that they are rare breeds in the European auto industry.

The EEA report concludes that a small number of automakers must cut their average emissions by at least 50% to meet 2015 standards. This estimate amounts to an average emissions reduction of 14 g/km for each model. These automakers include European branches of Asian automakers like Mazda, Nissan and Honda. Daimler and General Motors are joined by Romanian automaker Dacia in their failure to reduce emissions in a timely manner. The European Commission coupled incentives for successful automakers with penalties for manufacturers that cannot decrease their emissions. The EEA estimates that failure to comply with 2015 standards could lead to fines and penalties up to 10 billion Euros.

Industry observers can parse the report’s details to find optimistic notes regarding 2015 EU emissions standards. Automakers like Maruti Suzuki India have achieved average vehicle emissions of 104 g/km through lightweight frames and highly efficient engines. Fiat Group has achieved average vehicle emissions of 125 g/km, showing the potential for major automakers to drastically cut emissions. Economic circumstances have challenged the structure of the European Union but progress toward carbon cuts shows one of the virtues of regional cooperation.