California Clean Cars Program will benefit drivers
- Roland Hwang
- Transportation Program Director, San Francisco
- Blog | About
- Posted January 26, 2009 in Moving Beyond Oil , Solving Global Warming , U.S. Law and Policy
I thought I would quickly post some answers to some basic questions that have come up today as the media and others have reacted to the President's announcement today.
First, drivers in the states with the California Clean Cars Program will benefit tremendously in reduced fuel costs. The best analysis currently is probably a study done for the Florida Department of Environmental Protection for their recent regulatory adoption proceedings. This study estimated, at $3.15/gallon gasoline, that drivers will save from $1000 to $2300 over a ten year vehicle life (or $100 to $230 per year). Moreover, the slightly higher costs of the technology pay for itself in 1 to 3 years, depending on the vehicle type. Below are some results from the more detailed document from the Florida study:
10-year NPV (cost savings)
Small car = $1079 3 year payback
Large Car = $1579 1 year payback
Minivan = $1445 2 year payback
Small Truck/SUV = $2294 1 year payback
Large Truck/SUV = $1595 2 year payback
Second, there are 14 states plus D.C. that currently have fully adopted the California Clean Cars program with another four states that are in the process of adopting. The 14 states represent at least 37 percent of the nation's vehicle population. Add the four states in the process raises the level to 46.5 percent of the vehicle population. There are several more states that have been debating the program and, if they move forward, it will represent well over half the nation.
States that currently have the California Clean Cars Program
= 37% of nation's vehicle population
California
Arizona
Connecticut
Maine
Maryland
Massachusetts
New Jersey
New Mexico
New York
Oregon
Pennsylvania
Rhode Island
Vermont
Washington
+[District of Columbia]
States in process of adopting California Clean Cars Program
= 46.5% of nation's vehicle population when added to above
Colorado
Florida
Utah
Iowa
If there are anymore questions, post them below, and I'll try to answer as soon as possible.
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Comments
John May — Jan 26 2009 07:26 PM
So the study was based on 3.15 a gallon gas. Since the gas I am buying costs 1.59 should I assume that I need to double the number of years it would take to reach thre break even point?
Also the "estimated" new vehicle costs. Exactly how reliable are those and do they factor in the costs that usually occur when a new vehicle, implementing a new technology, hits the market. You look young but I can still remember the Vega and that new all aluminum engine. An engine that would not last 5 years. Should we be expecting a similar situation when we force the auto industry to roll out all new cars built around an all new technology?