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Transportation's Role in Reducing U.S. Greenhouse Gas Emissions ...

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Transportations <strong>Role</strong> <strong>in</strong> Reduc<strong>in</strong>g U.S. <strong>Greenhouse</strong> <strong>Gas</strong> <strong>Emissions</strong>: Volume 2<br />

Apart from the primary benefits of <strong>in</strong>creased fuel efficiency and reduced GHG emissions,<br />

widespread market penetration of HD hybrids is likely to result <strong>in</strong> marked reduction <strong>in</strong><br />

both PM and NOx emissions result<strong>in</strong>g from reduced diesel fuel consumption. Initial test<br />

results for hybrid electric buses, for example, have shown NOx reduction of 50 to<br />

60 percent, with correspond<strong>in</strong>g PM reduction of greater than 90 percent, relative to pre-<br />

2007 diesel eng<strong>in</strong>es (ATA, 2006). For 2010 diesel eng<strong>in</strong>es, where tailpipe emissions will be<br />

just a few percent of uncontrolled levels, the benefit will be much less significant.<br />

Feasibility<br />

The eng<strong>in</strong>e and powertra<strong>in</strong> improvements discussed <strong>in</strong> this section typically need to be<br />

designed <strong>in</strong>to a new vehicle, and therefore are not feasible for retrofit on exist<strong>in</strong>g vehicles<br />

(unless an entirely new eng<strong>in</strong>e is retrofit to a vehicle). As such, policy needs will be<br />

somewhat different than for resistance reduction strategies, many of which can be retrofit.<br />

One approach is to establish efficiency standards, as currently is be<strong>in</strong>g evaluated pursuant<br />

to the EISA of 2007. Given that market economics likely play a larger role <strong>in</strong> vehicle<br />

purchase decisions for heavy-duty vehicles relative to light-duty vehicles, due to the high<br />

contribution of fuel costs to total operat<strong>in</strong>g costs, the adoption of standards may have<br />

relatively less impact. On the other hand, as noted <strong>in</strong> the previous section, there is<br />

evidence that truck<strong>in</strong>g companies base their purchas<strong>in</strong>g decisions on low amortization<br />

periods of about three years, mean<strong>in</strong>g that even cost-effective strategies will not<br />

necessarily be implemented through market forces alone.<br />

F<strong>in</strong>ancial <strong>in</strong>centives such as tax credits or low-<strong>in</strong>terest loans also may play a role <strong>in</strong><br />

help<strong>in</strong>g to overcome <strong>in</strong>itial capital costs. Such <strong>in</strong>centives are beg<strong>in</strong>n<strong>in</strong>g to emerge at the<br />

Federal and State levels to promote the <strong>in</strong>troduction of heavy-duty hybrid technology <strong>in</strong>to<br />

the fleet. For example, the Energy Policy Act of 2005 <strong>in</strong>cludes tax credits of up to $12,000<br />

based on the fuel efficiency and weight of a particular vehicle. F<strong>in</strong>ally, demonstration<br />

projects and <strong>in</strong>formation dissem<strong>in</strong>ation, as performed under EPA’s SmartWay program,<br />

may play a role <strong>in</strong> help<strong>in</strong>g to <strong>in</strong>form truck owners about the benefits of new technology<br />

and encourage purchase of more efficient vehicles. Partnerships with larger fleet<br />

operators, for example, may be valuable <strong>in</strong> br<strong>in</strong>g<strong>in</strong>g a particular technology to scale and<br />

reduc<strong>in</strong>g costs such that smaller operators also will be will<strong>in</strong>g and able to adopt it.<br />

Many of these strategies face technical hurdles as well. The turbocompound<strong>in</strong>g and fuel<br />

<strong>in</strong>jection developments noted above are expected to be developed further and <strong>in</strong>crease<br />

their market penetration <strong>in</strong> the future. They are limited primarily by cost and the<br />

development time needed to ensure that they maximize efficiency and pollutant<br />

reduction. Bottom<strong>in</strong>g cycle systems face tremendous eng<strong>in</strong>eer<strong>in</strong>g hurdles <strong>in</strong>volv<strong>in</strong>g<br />

freeze prevention, vibration, and numerous other factors before they can be considered a<br />

viable option for the on-road market. For example, due to the poor transient response of<br />

the bottom<strong>in</strong>g cycle, this system may have to be coupled with hybrids to achieve<br />

acceptable performance (NESCCAF/ICCT, 2009). Thermoelectrics face cost and durability<br />

issues. Additionally, these devices are not yet efficient enough to provide significant<br />

electric generation.<br />

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