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Top 6 Political Issues That May Affect Your Commute

From the Big Three Bailout to the California Clean Air Act, we look at the big political issues that will affect your commute for 2009 and beyond.

Eric Leech

By Eric Leech
Denver, CO, USA | Mon Feb 02, 2009 09:00 AM ET

There is not much argument that most people want clean air, better mpg, decreased oil dependency, and the list goes on. But at what cost will these changes come, on a personal level—how will they change our everyday commutes in particular? From the Big Three Bailout to the California Clean Air Act—we'll take a look at the big political issues that will effect your life in tangible ways and answer the question: What can you do about it?

California Clean Air Act


Under the 2009 Clean Air Act, California will gain the right to tighten its current air quality standards. Currently the federal government does not regulate carbon dioxide emissions, even though they are the main culprit of greenhouse gases in transportation. This is great news as far as the quality of air goes. However for your wallet and the auto industries, it may not be such a good thing.

To achieve these standards, California will likely require vehicles on the road to emit fewer greenhouse gases, which could at some point mean dipping into our own pockets to have the patchwork done necessary to pass the new emissions standards.

The auto industry has long been opposed to California's effort to raise its air quality standards, due to the fact that it will force them to build different cars for the different markets. California will not be the only state to impose stricter standards, as 17 other states have also expressed interest in adopting California's rules if the Obama administration will allow it.

The best thing to do if you are in the state of California and are thinking of purchasing a new vehicle, is to get off the fence and get one now while the prices are still manageable. The Big Three have already said that the new emissions standards will likely raise the price of every new vehicle by an average of $3,000.

Extension of Clean Air Act from State to State


So far 17 states have expressed interest in the California clean Air Act. At least 13 of these states, Arizona, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont and Washington, have already adopted California's standards, so they are almost a shoo-in for the change.

Automakers claim that it would be unfeasible to have different emission designs for the varying emissions standards of each state. In order to accomplish this they would need to install various "patchwork" components to the engines, which would likely raise the cost of each vehicle. With an economy that has already seen auto sales plunge 18 percent this past year, increased prices could spell big trouble for the future of the US auto industry.

Some people misunderstood the act's description, thinking that it could mean that each state would decide its own emissions standards, which would indeed spell mass chaos. A spokesman for California's Air Resources Board has clarified that California will be the only state allowed to seek waivers under the Clean Air Act, and that other states will only have the option to follow.

Now is the time to contact your state government if you are interested in them (and you) following the California Clean Air Act. It is also advised to purchase a new vehicle soon if you are looking for the best price.

Higher Fuel Economy Standards by 2011


President Obama has recently directed the Department of Transportation to increase fuel efficiency standards for automobiles by March 30th, for all 2011 model years. This only gives manufacturers approximately 18 months to prepare for the changes in store. This decisions will apply additional pressure to what has already become an ailing industry struggling to survive. This could in turn force the unfortunate bankruptcy of at least one of the Big Three.

What would a Big Three Bankruptcy mean for the US? Well, according to the Alliance for American Manufacturing, the total number of employees, parts-suppliers, and car-dealers affected by the bankruptcy would be approximately 1.59 million initially. This would really affect such states as Michigan, Ohio, Indiana, and Wisconsin.

There would also be a secondary effect of employees in the construction, retail, health care, and restaurant industry, which could easily add up to another 5 million jobs that would be on the line. This is also not including the 775,000 retirees who are currently collecting auto-industry pensions. This is the bad news, but there is a silver lining within all this.

If the auto industry is able to keep up with the changes imposed, they will be ready for the future of the automobile, and will actually emerge stronger. As Obama has expressed towards concerned citizens, "Let me be clear: Our goal is not to further burden an already struggling industry; it is to help America's automakers prepare for the future."

Reversal of Climate Policies- Higher Fuel Economy Standards by 2020


Obama began the steps to reverse the climate policies of the Bush administration on January 26th, 2009, clearing the way for new rules to force automakers to produce more efficient and pollution free vehicles. This is all part of the plan to raise the average fuel economy for cars from 27.5 mpg (trucks 22 mpg) to 35 mpg for the entire fleet by the year 2020. These new standards would save 2 million barrels of oil a day and approximately 10% of the country's total oil consumption.

This change will undoubtedly force manufacturers to make the switch over to hybrid/electric much sooner than perhaps previously planned. We have already seen quite an impressive array of hybrids and alternative fuel vehicles at the LA Auto Show this past November. This shows automakers might just be serious about meeting these new regulations.

One of the greatest effects out of these changes, will be in the choice of new vehicles. Some of us will have to get used to the idea of alternative fuel, while others have been pushing for it ever since the EV-1 was introduced. Electric vehicles may initially cost more than gas vehicles, and there are questions as to how these vehicles might be most conveniently charged when away from home. The other concern is the expense of a new battery once the initial one is used up.

$1 Billion in Plug-in Incentives


On October 3, 2008, Congress enacted a law which offers up to $7,500 in tax incentives for passenger plug-in cars. While the cost of some of these vehicles may be high, such incentives will ease the initial cost of these vehicles for most buyers. For 2009, the push is going to be to try to extend these incentives beyond the current 250,000 vehicle limit, paving the way for more of these vehicles to be sold.

There is also a possibility that the tax credit incentives will include validated conversions of gas vehicles to plug-in/hybrid vehicles. This will enable you to convert your current vehicle into a hybrid for much less than purchasing a new one. There is also talk of transforming the federal and white house security vehicles to plug-in within the next few years. In short, you may find yourself in a hybrid/plug-in world much sooner than you would have ever thought possible.

Big Three Bailout


While the Big Three bailout will certainly help ease some pain of the auto industry and job market, the poor economy will continue to allow consumers to see prime prices on new car lots. This is a good thing for all potential buyers.

Another such potential outcome of the Big Three bailout however, as discussed by The New Yorker, is that they may use some of the money in the attempts to overturn some of the stricter regulation being discussed by California, and other individual states. This will perhaps keep new car prices on the low end for awhile longer, which is a positive, but prolong the switch over to stricter emissions, which is a negative.

As the auto industry drags their feet towards the future of alternative fuel and stricter emissions, there is one very good outcome of the bailout from the point of view of the foreign car market. Over the last 30 years, Japanese automakers such as Toyota, Honda, Hyundai, and Nissan have spent in excess of $40 billion on American vehicle manufacturers, getting them up to snuff. A bankruptcy would only affect the foreign market as well as the domestic, which would be disastrous for the global economy. Thankfully at the moment, we can continue to look forward to an affordable 2010 Toyota Prius.

More green transportation issues:
Mean Politics and Clean Machines
German Government Adopts Flawed CO2-Based Car Tax
Ford Fusion Hybrid Qualifies for Maximum Tax Credit of $3,400

 
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