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Southwest Energy Efficiency Project Southwest Energy Efficiency Project

Policy Recommendations

In a search to identify viable strategies and policies that could achieve significant reductions in energy use and greenhouse gas (GHG) emissions from the transportation sector, SWEEP investigated all the transportation-related strategies and policies adopted or proposed as part of every state climate plan, as well as the transportation plans adopted by the metropolitan planning organizations that have adopted GHG emission reductions as a goal.

SWEEP recommends the following strategies and policies for southwestern states:

  1. Market strategies to increase demand for fuel-efficient vehicles
  2. Reduce vehicle miles traveled (VMT) through improved transit
  3. Transit Oriented Development (TOD)
  4. Regional and corridor user fees
  5. Adopt pay-as-you-drive auto insurance
  6. Reduce highway speed limits
  7. Require energy-efficient replacement tires for light-duty vehicles
  8. Loan/tax credit program for SmartWay for heavy duty trucks
  9. Loan program for high-efficiency truck engines

A detailed analysis of each of these strategies and policies, and their potential to reduce energy use and GHG emissions in Colorado, is provided in the Colorado Transportation Blueprint.

  1. Market-Based Strategies:
    1. Feebate – A feebate is a revenue neutral policy that assigns fees or rebates on a sliding scale to new vehicles based on their fuel efficiency.  Vehicles with fuel efficiency below a certain threshold would be assessed an additional fee while those above the threshold would receive a rebate.  The threshold would be adjusted annually to reflect improvements in new vehicle efficiency due to stronger fuel economy standards and to keep the program revenue neutral.
    2. Accelerated Vehicle Retirement – This policy would provide incentives for vehicle owners to trade in their older, higher polluting and less efficient vehicles for better performing vehicles.  In contrast to the national “Cash for Clunkers” program of 2009, SWEEP advocates a more comprehensive, long-term program with the requirement that replacement vehicles have fuel economy better than the national average fuel efficiency standard.  These and other provisions would guarantee that the program would create substantial fuel and CO2 emission savings over time. 
  2. Improved Transit
    Transit options, especially in large metropolitan areas, are necessary if drivers are to have alternatives to driving.  Transit should be convenient and affordable so that it can compete with individuals using single occupancy vehicles.  A dedicated source of transit funding from the state will help metropolitan regions reduce regional VMT, and reduce VMT from inter-regional travel on the major travel corridors.
  3. Transit Oriented Development (TOD)
    While a comprehensive transit system is fundamental to creating transportation options, TOD around new transit nodes ensures that the investment in transit is maximized.  Focusing dense and mixed use development around transit nodes gives more people easy access and will increase ridership in the transit system.
  4. Regional and Corridor User Fees
    User fees (tolls) for highway users create an incentive for drivers to consider alternatives to driving. User fees create a direct link between the cost of driving and the cost of transportation infrastructure. They can also provide additional funding sources for transit projects and reduce congestion.
  5. Adopt Pay-As-You-Drive (PAYD) Auto Insurance
    PAYD insurance policies directly tie auto insurance costs to the number of miles a vehicle is driven, creating an incentive for driving less.  Voluntary PAYD insurance rewards those who drive less. Requiring all auto insurance policies to measure actual miles driven would reduce Vehicle Miles Traveled (VMT) across the state.
  6. Reduce Highway Speed Limits
    Reducing maximum speed limits on state highways and interstates by 10 mph (to 55 or 65 mph depending on current limits) would have a significant and immediate impact on fuel consumption.  Vehicles tend to be most efficient at approximately 55 mph and can lose up to 25% of their efficiency by going from 55 mph to 75 mph.
  7. Replacement Tire Standards
    Replacement tires usually have higher rolling resistance than a vehicle’s original tires, causing reductions in a vehicle’s fuel efficiency.  Establishing a minimum rolling resistance for replacement tires based on NHTSA’s upcoming tire labeling standard would allow vehicles to maintain optimum efficiency over their lifetimes.
  8. Loan/ Tax Credit Program for SmartWay
    The EPA SmartWay program recognizes and promotes technologies that improve the fuel efficiency and emissions from heavy duty vehicles.   Many of these technologies have short payback periods of less than 3 years, but upfront costs can make widespread adoption difficult; therefore a state-backed, low-interest loan program or tax credit can spur greater penetration of these technologies.
  9. Loan Program for High Efficiency Truck Engines
    A low-interest loan program backed by the state would allow truck purchasers to defray the high incremental costs of advanced engine technologies such as hybrid engines.  Technologies like hybrid heavy duty truck engines are just beginning to emerge on the market; stimulating demand for them will reduce their incremental cost and make them more competitive with traditional diesel engines. 

A detailed analysis of each of these strategies and policies, and their potential to reduce energy use and GHG emissions in Colorado, is provided in the Colorado Transportation Blueprint.

  

SWEEP Comments to Colorado PUC

On October 24, 2011, SWEEP submitted the Comments of Environmental Stakeholders to the Colorado Public Utility Commission (Docket No. 11I-704EG) regarding an investigation of issues related to electric and natural gas vehicles in Colorado.  Copies of the Comments and Exhibits are available below:

Comments of Environmental Stakeholders (PDF - 530 KB)

Exhibit 1: Colorado Transportation Blueprint (PDF - 1.6 MB)

Exhibit 2: Ozone Precursor and GHG Emissions from Light Duty Vehicles Comparing Electricity and Natural Gas as Transportation Fuels (PDF - 472 KB)

Exhibit 3: Electric Vehicles Can Buffer Colorado From the Economic Shocks of Rising Fuel Prices, Create Jobs, and Reduce Pollution Control Costs (PDF - 677 KB)

 


RTD-Denver light rail
Photo by Eric Miller