Said Secretary Gibbs in the Tuesday briefing:

So when we go to Holland, Michigan, and break ground on the ninth of nine advanced-battery plants that will construct the electric batteries that we need to power the Chevy Volt that Chevy will produce 50,000 a year of, the question that you’re going to have to ask yourselves, are we going to import that battery? Or is that battery going to say, “Made in America”?

And before the Recovery Act, 2 percent -- we basically were in charge of 2 percent of the global capacity and the manufacturing of the type of batteries that you’re going need for the cars of tomorrow. As a result of the investment in the Recovery Act, by 2014, in just five years, we’ll increase that capacity by 20 -- 20 times. It pushes down the cost of those batteries.

Well, at least Gibbs didn't spill the beans about the entire announcement. For one, I'm curious how many jobs this new Holland, Mich. plant will create or save.

And for that, we'll have to wait for the big ground-breaking on Thursday.  Unless, of course, Gibbs "accidentally" slips those figures into a morning press gaggle.

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Through a landmark decision taken by a high-level group of ministers, the Indian government has announced the rolling back of subsidies on petrol and other petroleum products.

The government has decided to roll back subsidies on petroleum products and transfer power to decide prices to the oil producing and marketing companies. The oil companies would now, possibly, be able to sell petroleum products according to the international crude oil prices.

Until now the Indian government controlled oil prices through a tool called the Administrative Pricing Mechanism. The APM was a regulatory mechanism that gave the government the right to modify oil prices in order to shield the common people from the fluctuations in the international crude oil prices.

The politics of petroleum in India

This practice, however, made repeated and long-lasting dents in the profit margins of the Indian oil companies. These companies were forced to sell the petroleum products at substantial losses due to this regulatory intervention. The prices were maintained at such low levels that it completely wiped off the presence of private companies in the market. Several private companies closed and sold off their oil filling stations and completely stopped commercial operations.

The decision to reduce subsidies on petroleum products was not an easy one. There have been a slew of price upgrades in the past few months. Earlier this month, the government 'freed' the natural gas prices from regulatory  control pushing prices of compressed natural gas up which in turn led to increased public transport costs.

With inflation, and especially inflation in food articles, edging higher every week the decision can have significant political ramifications. The reason the government decided to go ahead with the deregulation is because general elections are due only in 2014.

Cleaner transport

This de-regularization would possibly make conventional fossil fuels less attractive than the cleaner fuels. Electric and hybrid automobiles could emerge as real alternatives to conventional automobiles.

The market for electric and hybrid automobiles is already heating up in India. Several auto makers including Mahindra & Mahindra, General Motors, Tata Motors and Toyota have either announced plans for launching electric and hybrid cars or have already launched their models. Over the years, with the increase in oil prices relatively cleaner automobiles have gained popularity.

Recently, Mahindra & Mahindra bought stake in the Reva Electric car company and Toyota launched its hybrid Prius model and got highly positive response from the Indian buyers who seem to becoming more and more environmentally conscious. Tata Motors also has several electric cars in its inventory which it could launch in the near future.

While the rolling back of subsidies is a positive stimulus for the market the government needs to do more to promote cleaner transport. Launching electric or hybrid public transport buses would definitely be a significant step in promoting such automobiles. The government needs to build capacity for cleaner fuels such as biofuels and infrastructure for electric cars.

The government increased petrol prices by Rs. 3.5 per liter, diesel prices by Rs. 2 per liter and kerosene by Rs. 3 per liter. The shares of all state owned oil companies rallied up to 20 percent at the Indian stock markets.

Image Credit: Mukesh Gupta/ Reuters. 2010/ PicApp

The views presented in the above article are author’s personal views and do not represent those of TERI/TERI University where the author is currently pursuing a Master’s degree.

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Two EV bills have been introduced into Congress, but their regional approach has created divisions in the auto industry.

Many electric vehicle advocates believe that by 2040, 75 percent of the light-duty miles Americans travel could be done so via electric propulsion. But if there is any chance for electric vehicles (EVs) to take up anything more than a sliver of the global automobile market, there needs to be coordinated support and planning at the federal level to get things moving in the right direction (and keep them moving).

There are two bills, one in the House and one in the Senate, making their way through Congress right now that would seem to give the budding EV industry a needed boost and provide it with some long-term security to increase private investment. Supporters say that passage of either bill could reduce oil consumption by 6.2 million barrels of oil a day.

The differences between the House and Senate versions of the bill are marginal, but both versions focus on a regional approach to stimulating the EV market -- an approach that is arguably necessary for building robust local charging networks (as well as robust local demand to keep those charging stations in business). On Tuesday, the Senate Energy and Natural Resources Committee heard statements from industry representatives, both in support and opposition of a bill that would provide incentives to consumers to purchase electric vehicles and grants to selected communities to demonstrate widespread deployment of electric vehicles.

The bill would give rebates of at least $2,000 per car to the first 100,000 consumers purchasing EVs in each of the five chosen pilot communities and up to a $2,000 tax credit on the purchase and installation of charging equipment. Businesses could get a much larger $50,000 credit for purchase and installation of multiple charging stations -- the kind of charging infrastructure need to support widespread adoption of EVs.

The bill would also award $800 million to 5 different deployment communities around the country, with the objective of deploying 700,000 electric vehicles in those communities within six years.

"Deployments at the city level would bring together the key stakeholders to provide the infrastructure and services that enable the electric vehicle owner to have a satisfactory experience," says Oliver Hazimeh, Director and head of the global e-Mobility practice at worldwide management consulting firm PRTM.

The regional approach of the two bills is also being supported by a non-profit industry group called the Electrification Coalition. The coalition iscomprised mostly of CEOs from companies like PG&E, Nissan, Coda, Cisco and FedEx, all companies that have made significant commitments to EV deployment.

But the regional approach of the bill also has its detractors. The Alliance of Automobile Manufacturers, a trade group representing Detroit's Big Three carmakers, Toyota and seven other automakers, opposes the measure. The Alliance's broad constituency is pushing for a bill that would do more than support localized EV market niches.

"We believe the legislation should allow manufacturers, fuel providers and communities the flexibility to invest in multiple electric drive pathways, including fuel cell electric vehicle and related hydrogen infrastructure," said Kathryn Clay, the group's research director, in a statement issued to the Senate on Tuesday.

"We have significant concerns about an approach that would limit investments to a handful of communities, particularly at such an early stage of electric vehicle deployment. This creates a small number of communities that would 'win' and receive significant federal dollars while the rest of country loses out."

The cost of the EV bills are estimated at somewhere between $6 billion and $12 billion. But there is also a chance that an EV bill could be attached as a rider or amendment to the climate and energy bill currently being considered by Congress.

Photo credits: cliff1066 via flickr; Tim Hurst

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Southern California Edison director of Electric Transportation Ed Kjaer thinks the EV's future is now. (Photo: Tim Hurst)

Edison's EV Tech Center is readying for what they see as a gathering storm for electric vehicles

On a recent trip to Southern California Edison's Electric Vehicle Tech Center in Pomona, California, I was struck by the depth and breadth of preparations the utility was making for EVs -- and how long they've been working on them. For 13 years, Ed Kjaer, Director of Electric Transportation at SCE has driven to work in an electric car. Over that 13-year period, Kjaer's and the 300 other all-electric Toyota RAV-4s owned and operated by Southern California Edison--the largest pure battery electric vehicles in the U.S.--have driven over 18 million miles and prevented 9,600 tons of CO2 from being released into the atmosphere.

Kjaer said there has been unprecedented activity around plug-in vehicles as of late. And one not need to look far to see evidence of that activity. Across town at the Nissan LEAF unveiling at Dodgers Stadium last week, Nissan CEO Carlos Ghosn predicted there would easily be one million electric cars on U.S. roads by 2015.

Kjaer said that the coalescing of support from President Obama and a bipartisan coalition in Congress, along with movement in the industry from China and India, and advancements in smart research (grids, appliances, cars, meters, etc.) means that there is a perfect storm building for EVs right now.

"Plug-in vehicles are going to be the star of the L.A. Auto Show," added SCE's Kjaer, whose enthusiasm was tempered just a little by the reality of the infrastructural challenges that lay ahead.

Utilities trying to keep up with--and ahead of--the Joneses

A plug-in hybrid vehicle being tested at the Edison EV Tech Center. (Photo: Tim Hurst)

While Kjaer and his team are focused on testing the cars along with their batteries and drivetrains, but they are also researching energy storage, smart-meters and appliances, and the EV-charging infrastructure.

"Grids need to evolve from unidirectional to multidirectional," said Kjaer. Both Kjaer and Edison chairman and CEO Ted Craver will tell you that while they provide electricity to 15 million people across SCE's service area, there is plenty of capacity on the system for EVs, especially if it is properly planned for.

Part of the planning SCE is undertaking is identifying the clusters of early adopters and hand-raisers likely to be the first to plug-in to the EV lifestyle. Because while they have spare capacity on the grid, too many 240-volt fast-charging stations per substation could have a crippling impact on current infrastructure.

To that effect, Edison CEO Craver admitted he was "nervous about making the transition too fast" and that they need to "balance the need to change with the ability to change too quickly."

Travel and lodging for the tour of the EV Tech Center were provided by Edison International. Follow Tim Hurst on twitter @ecopolitologist.

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The battery-powered Newton will be the first vehicle to be produced at the new plant, but starting next year, the plant will manufacture an electric version of the new Transit Connect light-duty vehicle in collaboration with made by Ford Motor Co.

The Newton cruises at a top speed of 50mph, carries payloads up to eight tons and can last up to 150 miles on a single charge. The Newton also has a wheelbase of 3.9 meters and a turning radius of 14.15 meters, allowing it to make tight turns and making it ideal for urban applications.

Available in a range of body styles to meet specific customer needs, the Newton can even be fully refrigerated.

According to manufacturers, the Newton is perfectly suited for "depot-based fleets, engaged in lower-mileage, multi-drop collection intra-city operations on congested roads."  In short, don't expect these to be taking the place of 18-wheel tractor trailers, but do expect to see them being used as delivery vehicles, logistics vehicles in and around airports, and as service vehicles around town.

The Kansas City location was one of several vying for the new plant, but the $3 million in tax incentives for Smith from the state of Missouri helped seal the deal.

Company officials said the new facility would create 200 green collar jobs within three years, with the first round of new hires receiving a starting wage of $44,236 annually. The company hopes to begin rolling Newtons out of the new Kansas City plant by the third quarter of 2009.

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Rooftop falcon-cams and electric-car chargers on streetlights may sound like things out of the future, but for the city of San Jose, California, the future is now.

[From my post originally published at Red, Green, and Blue] Okay, I'll admit it. Having grown up on the East Coast, for much of my life all I knew of San Jose was that Dionne Warwick apparently didn't know how to get back there.

But take one look at the LEED Platinum-certified City Hall; the Falcom-Cam that keeps watch of once-endangered Peregrine Falcons that now nest annually on the building's roof, and; the electric car charging station across the street, and you'll get a peak into the future of urban sustainability.

The thing about San Jose, Mayor Chuck Reed said to me during a phone call we had last week, is that "innovation just happens" happens in the Silicon Valley. Obviously not every city has the advantage of such a robust technologically innovative base, but like any other city, the hard part, explained Reed, is implementing policies to facilitate the development of that innovation.

Electric car-charging networks and regional sustainability

For example, said Reed, the technology exists to put electric car charging stations on light posts all across town, but because street lights are metered differently than other loads, and the metering infrastructure is owned and operated by Pacific Gas & Electric, the current institutional infrastructure would not be able to account for the energy used, even though the technical component of converting those streetlights is not the sticking point.

But building an electric vehicle infrastructure is something that is creeping ahead despite the bureaucratic hurdles it faces. San Jose's four vehicle charging stations are open to the public through Coulomb Technologies' ChargePoint Network. Coupled with the new installations at San Francisco City Hall and similar efforts in Oakland, the region is forging ahead as an electric vehicle hub.

For San Jose, converting 100 percent of public fleet vehicles to run on alternative fuels and electric vehicles is part of the city's 10-point "Green Vision", a 15 year plan of action, including such laudable environmental goals as reducing per capita energy use by 50%; switching to 100% clean renewable energy; recycling or reusing 100% of wastewater, and; creating 25,000 new jobs in the clean tech sector alone.

Part of the economic engine needed to achieve the aforementioned job growth in the clean tech sector is helping entrepreneurs move their ideas from the back of a cocktail napkin to the front page of the business section. Enter: The Clean Tech Open.

Spawning Clean Tech

Expanding to the Pacific Northwest and Rocky Mountain regions this year, the Clean Tech Open is a contest that awards early stage clean tech businesses with critical support in their formative years. Early stage startups are invited to enter in six competition categories: renewable energy, transportation, smart power, energy efficiency, green building, and air/water/waste management.

In addition to the recognition/exposure, regional winners are awarded with packages that include: $50,000 cash, office space, legal services, accounting, insurance, public relations, recruiting, software, and other business essentials. Regional winners are also now entered into the national competition with an even larger purse.

"We've seen some exciting products and companies come out of the Clean Tech Open in previous years," said Reed, citing the company GreenVolts and their concentrating solar photovoltaic technology as an example of how a company can take the spoils of winning the Clean Tech Open and really springboard into the marketplace.

Some argue that the key to creating a sustainable future on this planet will be found in developments in urban sustainability. How can hundreds of thousands or millions of people live, work, and play in such a confined space without having a collective footprint that spreads well beyond the city limits? San Jose believes it has found some of those answers, but certainly not all.

And as for those Perergrine Falcons that have nested on the roof? Mayor Reed told me that the pair of adults is watching over four eggs, so he is hopeful.

Images: dbdbrobot via flickr; Clayton Cornell, gas2.0.

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