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Energy Bill Would Welcome Back Diesels

Oil Producing Algae Twenty-five years after diesel cars largely disappeared from American highways in a black cloud of tailpipe exhaust, the energy bill whose fate is hanging in the Senate invites a much cleaner incarnation back. These so-called advanced diesels would be eligible for tax credits equal to those in the bill for alternative-fuel vehicles and gas-electric hybrids.

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Algae Oil Production Environmental groups say that the new generation of diesels will still be too dirty to merit tax breaks but they view credits for cleaner technologies like hybrids and hydrogen fuel cells as one of the few things to like about the bill. Over all, they say, the energy bill will increase the nation's automotive oil consumption.

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Algae Bio Fuel Automakers see the provision, as well as the energy bill at large, as a victory. Several automakers - particularly those based in Europe, where millions of diesels are sold each year - view diesels as the most viable way to cut Americans' swelling oil consumption.

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Algae Fuel Cell "We definitely support it and are very pleased, from the language we've seen," said Kathleen Graham, a spokeswoman for DaimlerChrysler. "We think we should encourage all advanced technologies with tax credits and not just one because right now there's not a clear winner," she added.

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Algae Based Fuels But Dan Becker, an energy expert at the Sierra Club, said many of the vehicles that would receive diesel credits would not even meet the minimum standards in California, which sets more stringent air quality standards than the federal government.

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Diesel From Algae "We don't need diesels," he said. "For them to share a tax credit meant to benefit clean cars like hybrids is appalling."

Green Fuel Algae The Joint Committee on Taxation forecasts that tax credits for advanced technology and alternative-fuel vehicles will cost more than $2.2 billion from 2004 to 2013. The committee did not break down the cost of credits for diesels versus hybrids and other technologies.

Algae Fuel Production After the oil shocks of the 1970's, diesels had a period of modest popularity in the United States. But as gas prices receded, consumers grew tired of the smoke and smells associated with the engines, as well as quality problems with some diesel offerings from General Motors.

Bio Diesel From Algae In recent years, automakers have been exploring technologies to clean up diesels, to try to meet tightening emissions and fuel economy regulations in Europe and with an eye to reintroducing diesel engine cars in the United States.

Biodiesel Fuel From Algae China, the world's fastest-growing market for automobile sales, is also poised to impose fuel economy standards more stringent than those in the United States.

Algae Into Fuel Even some regulators said they thought diesels might be useful in meeting the goals of using less oil while also reducing pollution. "I think it's part of the solution,'' Alan Lloyd, chairman of the California Air Resources Board, said in a recent interview. "The more I see these things, I don't know that there's any magic bullet."

Algae Fuel Source Environmentalists are not convinced that diesel can ever be as clean as gasoline.

Algae Gas Current diesel technology presents trade-offs. Diesels still emit considerably more smog-forming pollutants like nitrogen oxides, volatile organic chemicals and soot than comparable gasoline cars do. But diesels also improve fuel economy by 30 to 40 percent and reduce oil consumption by about 15 percent, reducing emissions that many scientists link to global warming.

Fuel From Algae For instance, the 2003 Volkswagen Jetta with a four-cylinder gasoline engine and an automatic transmission emits 7.9 to 11.8 pounds of smog-forming pollutants every 15,000 miles, according to data from the Environmental Protection Agency. But a comparable car with a diesel engine emits at least 43.7 pounds of pollutants.

Algae Diesel On the other hand, the gasoline Jetta gets average combined city and highway mileage of 26 miles a gallon and emits 7.4 tons of greenhouse gases a year, compared with 5.5 tons and 38 m.p.g. for the diesel.

Bacteria Fuel The types of advanced diesel vehicles that would be eligible for credits under the energy bill would have new filtration technologies that greatly narrow the pollutant gap with gasoline cars.

Algae In Diesel "Obviously, it could help kick-start the return of diesels to the U.S.," said Allen Schaeffer, executive director of the Diesel Technology Forum, referring to the energy bill. His group is financed by automakers, diesel engine makers and oil companies. "Gas cars don't offer the 20 to 40 percent fuel economy gains that you get with the diesel."

Extract Oil From Algae Environmental groups argue that gasoline cars could be more cheaply modified to improve both fuel efficiency and emissions with technologies already available. And they see tax incentives for diesel potentially distracting attention from technologies like hybrids.

Diesel Fuel Algae "You can do it cleaner and more cheaply with gasoline, so why give diesels some inherent advantage?" said David Friedman, an energy expert at the Union of Concerned Scientists.

Algae In Diesel Fuel Hybrid development can also help in the development of fuel cells - which are more complex but potentially the cleanest technology of all - because both use electric motors.

Algae Bio Diesel Representative Dave Camp, the Michigan Republican instrumental in getting the diesel credits inserted into the energy bill, said that such vehicles would reduce dependence on imported oil. "We're more dependent on foreign oil than in the energy crisis of the 70's," he said, adding, "I don't consider this a solution, but it's available right now, while technologies like the fuel cell have tremendous potential but are further out."

Algae For Oil Hybrids and diesels clean enough to meet new regulations are thousands of dollars more expensive than conventional cars. Two sets of tax credits in the energy bill are aimed at helping consumers offset the higher prices.

Algae To Oil One credit, ranging from $400 to $2,400, would rise depending on how much more fuel efficient a vehicle was than the average vehicle in its class. A second credit, ranging from $250 to $1,000, would rise depending on the projected fuel savings over the vehicle's life. Fuel cell vehicles, much more costly, receive higher credits.

Algae Oil Automakers say it will be expensive to make vehicles meet air standards that are scheduled to take effect later in the decade. European automakers are the most determined to try. While many companies sell diesel versions of big trucks and sport utilities, Volkswagen sells diesel versions of several of its cars. Next year, DaimlerChrysler plans to offer a diesel version of the Jeep Liberty and a Mercedes sedan.

Diesel Fuel Bacteria These vehicles do not yet meet the tougher thresholds. Part of the problem is that the nation's diesel fuel has too much sulfur. New E.P.A. rules will lower those levels by the end of 2006.

Algae Fuel Polishing Automakers argue that the new emissions requirements will force them to close the gap further on smog-forming pollutants; environmentalists worry that the new regulations will still allow diesels to emit a greater amount of particulate matter, tiny soot particles linked to a variety of health problems.

Algae Oil Biodiesel "This invites diesels back at the behest of the auto industry," said Mr. Friedman of the Union of Concerned Scientists.

Oil From Algae Over all, Mr. Friedman projects that the energy bill will increase automotive oil consumption three billion to four billion gallons through 2008 because it extends fuel economy credits that automakers receive for making vehicles that run on ethanol as well as gasoline, despite the fact that hardly any consumers actually use ethanol.

Algae Jet Fuel By Danny Hakim
New York Times - 11/22/2003

Topic: Transportation

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