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So, with our downward-spiraling economy diving deeper into a recession, heightened ongoing fears about national security, and the ever-growing concerns over global climate change, President Barack Obama took the Oval Office in January, avowing to change the U.S. prospectus. Armed with an arsenal of new plans and policies, Obama took to his seat with a plug in one hand, and a key in the other. This seemingly unrelated pair of items is in fact a set in the Obama-Biden comprehensive New Energy for America plan, which will, “Put 1 million Plug-In Hybrid cars — cars that can get up to 150 miles per gallon — on the road by 2015, cars that we will work to make sure are built here in America.”

Certainly, Obama’s plan seems to be a reasonable and feasible proposal. An influx of one-million plug-in hybrid electric vehicles (PHEVs) over the next six years would effect less than a .04% change in the U.S. highway fleet (according to a 2006 highway-registered vehicle count by the Bureau of Transportation Statistics). Now, this change isn’t sweeping or revolutionary; the auto industry wouldn’t be required to reinvent itself to pull this off. And the country wouldn’t have to give-up the ability to run over a family of six with a gas-guzzling monster-truck, like the Hummer. Furthermore, Americans probably wouldn’t even notice that PHEVs exist, since 99.96% of the vehicles on the roadways will continue to be the same as they always were.

Additionally, PHEVs are not a new technology; they’re an old technology that’s being revisited and revised, but many Americans don’t have any clue that automakers have domestically built and distributed plug-in electric vehicles since 1996. General Motors rolled out the first purpose-built electric car, the EV1, during the mid-1990s. The EV1 was available by lease only, and had an immensely popular following in its California test-market. The EV1 could be charged at home, had a travel range around 70 miles with a full battery, had a regulated top-speed of 80mph, and could accelerate from 0 to 50 in 6.3 seconds. It was quiet, reliable, and efficient. Then, GM officially canceled the EV1 program in 2003. No one was allowed to renew their lease; all EV1s were rounded up and destroyed –though some were donated to museums and universities for historic and educational purposes. Many consider the destruction of the EV1, and other electric vehicles such as the Toyota RAV4 EV, controversial, and implications about collusion between automakers and the oil industry abound throughout the Internet.

Internally, during the early years, plug-in electric vehicles used lead-acid batteries for power storage. Later, NiMH, nickel metal hydride, batteries became the cell of choice. NiMH batteries are believed to be the best choice for the environment, as the contents can be recycled and are less toxic than the alternatives. However, NiMH battery cells fell out of popularity sometime after Texaco, which was soon absorbed by Chevron, acquired General Motors’ shares in Ovonics, the battery development and manufacturing company that invented and patented NiMH technology. Today, Li-ion (lithium-ion) batteries are the most popular and prominently used battery cell for vehicle manufacturers who produce hybrids, plug-in hybrids, and all-electric vehicles. There are, however, some concerns about Li-ion’s toxicity and a Chinese patent on the technology.

Now, considering plain, old “hybrids” have garnered the most media-mileage hype, they deserve some attention and some explanation. Hybrids, such as the Toyota Prius, combine a conventional engine, a recharge energy storage system (RESS), and an electric motor together, creating a compound gasoline-electric vehicle. The RESS may be charged in a variety of ways, but energy excess, which is produced when the conventional engine kicks in, and something called “regenerative breaking” is what most commonly powers the system. The regenerative break, which these vehicles use, is a mechanism that absorbs the energy of a moving vehicle’s wheels; this works in tandem with a traditional break as a backup, in case of malfunction, and the energy it collects is rerouted to the vehicle’s battery cells. This creation and recreation of energy is what drives up hybrids’ fuel efficiency, and the ability to run on gas power means that hybrids are not hindered by a limited driving range.

What makes PHEVs different from regular hybrids is… well, really, it’s just the plug. Instead of relying solely on petroleum to generate energy for the vehicle, the PHEV can be plugged into a power outlet in a garage or anywhere else. Also, just having that extension cord on the vehicle will provide PHEV consumers a tax credit of $2,500 to $7,500, depending on the vehicle’s battery size. With the markup premium on PHEV technology, this tax incentive can bring these vehicles into equilibrium with comparable combustion engine vehicle-types, which may be seen as getting more machine for the same green.

Yet, this raises the question: Isn’t this just simply artificially created demand? The answer is: Yes, but the ends justify the means, and the incentive simultaneously addresses domestic technological, environmental and national security issues. Additionally, this is a decision that is far sounder than those made in the past. In 2003, President George W. Bush put forth a similar bill that provided a $75,000 tax write-off for business purchases of luxurious SUVs, which helped to bolster the sales of the largest, gas-guzzling vehicles made by the industry; shortly thereafter, gas prices began to soar and sore.

So, when can we expect to see PHEVs rolling on and off dealership lots? Well, GM plans to introduce the new Chevy Volt as early as next year. The Volt is a PHEV with an attractively sleek design, a 40-mile range on a full battery, and, after battery depletion, receives 50 miles to the gallon. The first generation of these vehicles is expected to have a price tag between $35,000 and $45,000. Dealership representatives expect that the Volt will be in showrooms by November of 2010.

Yet, there are some questions about how the Chevy Volt will lineup against some foreign competition, such as the Chinese-made F3DM. Based out of Shenzhen, in China’s Guangdong province, BYD, a manufacturer of batteries and automobiles, has been selling the F3DM domestically since December of 2008. The car currently has a 62-mile battery range, and it’s selling there for $22,000 (US). An environmental economist, however, would speculate that U.S. safety standards are likely to increase the vehicle’s weight restrictions, which will reduce its range and mileage efficiency, and increase the price, which will be passed on to consumers; making it a less-desirable alternative to U.S.-domestic vehicles. BYD plans to release the F3DM in the U.S. by 2011, and in Europe as early as next year.

Sales and competition issues aside, it may be a bit of a gamble to see just what PHEVs can do for America. At first, it would seem that, if nothing else, PHEVs could save consumers’ money on gas. The assumption is a likely one to make, and a bit shortsighted; however, after considering a rising demand for electric grid-based power, it might be more likely for America to see an overall increase in the cost of living –when rising electricity costs bring supply and demand back into equilibrium. Additionally, transitioning the U.S. domestic fleet from conventional engine-types to PHEVs involves more than just building new cars –it means reinventing the power grid. If America is going to turn their gas-hogs into energy-suckers, it means it’s time for a systematic overhaul –and it’s already underway. Nonetheless, as much of a curse as this may seem to be, it’s at least twice the blessing: It means more jobs and more dollars stay at home; it means America can again become a worldwide leader in technology, innovation and change; and it means less money for the dictators, oppressors, and supporters of terrorism in desperate countries around the globe.

Surprisingly though, in the end, the environment might still get the shaft as we shift our energy gears from first to second. Considering that coal is by far and by large what we rely on for domestic power production in the U.S., the tradeoff between petroleum and carbon seems to be a bit backwards. Coal is distinctly the biggest producer of greenhouse gas emissions and nuclear waste; whereas, petroleum only releases about 75% of the carbon that coal does. Yet, with the development of what is being called the “Smart Grid,” greater power production by the nuclear and natural gas sectors, and an emphasis on renewable energy resources, the eco-sphere might just have a chance in this gambit.

So, Should the Federal Government Pursue an Aggressive Policy to Place One-Million Plug-In, Hybrid Vehicles on the American Roadway System by 2015? Well, America has to do something, and it has to begin now. We can continue to pay for the Saudis’ white, starched robes, their mirror-tinted Mercedes, their renovated palaces and those designer head rags they love to wear, or we can start diverting our resources to making all-American commodities and creating a domestic infrastructure that is both sustainable and promises job creation for an economy that’s currently in the crapper. Whether PHEVs look like a crapshoot or not, the throw of the dice is certain, at least, to offer short-term solutions that we need.

American hybrids, a case story:
“Military Intelligence” has long been considered one of the greatest oxymorons in the English language. Yet, a division made up of grunts, the Marines, one day realized that their vehicles, Humvees, were loud, slow and broke down a lot. So, in 2004, they started testing a new Reconnaissance, Surveillance and Targeting Vehicle (RST-V) called “the Shadow.” The Shadow outperformed the Humvee on almost every test, and shattered the speed record for the course at the Army’s Yuma Proving Grounds in Arizona. Best of all, the Shadow is a hybrid, which allows it to run on battery power alone, making it silent and stealth-like, which is great for nighttime reconnaissance missions. Now, the Shadow is anticipated to replace the Humvee throughout the military.
The moral of the story:
Are you as smart as a Marine? Think about that one for a minute.

List of Sources, Complete with Links

1.    President Barack Obama’s Inaugural Address
2.    DoE’s AFDC & EERE
3.    money.CNN.com
4.    The Christian Science Monitor
5.    MSNBC.com
6.    New York Times, Business Blog
7.    USA Today
8.    Los Angeles Times
9.    The International Herald Tribune
10.    The X PRIZE Foundation
11.    Who Killed The Electric Car?
12.    DoT-BTS-RITA
13.    DoE-EIA
14.    CNET
15.    InputOutput, Mechanical Engineering Magazine
16.    Technology Focus, Mechanical Engineering Magazine
17.    USCAR
18.    ASHRAE Journal
19.    Issues in Science and Technology
20.    CQ Researcher
21.    YouTube, liveoilfree
22.    YouTube, Donn Dears
23.    Veoh, MDLK
24.    Veoh.com, GMnext
25.    NRDC
26.    HybridCars.com
27.    GizMag.com
28.    Trudy Cameron
29.    Ryan Wagner
30.     Eric Edgar

Summary: An interview with Eric Edgar, a sales representative for Guaranty Chevrolet Pontiac RV in Lane County, OR; Edgar lends his insight into the Chevy Volt product launch, which is scheduled for November 2010.

Topic: Plug-In Hybrid Vehicle Policy
Category: Citizen, Shareholder Interview
What is it? An over-the-phone interview with Eric Edgar, Guaranty Chevrolet Pontiac RV sales associate in Lane County, OR.

Publication Information: N/A
Author: Eric Edgar
Location: Guaranty Chevrolet Pontiac RV, (800) 766-9231  –or–  (541) 998-5000
Accessed: Friday the 13th, during a March to get through the uncertain winter of 2009

Support:
http://www.guarantychevy.com/guaranty-chevrolet-blog (Chevrolet Volt, September 17, 2008)
http://www.motortrend.com/features/auto_news/2008/112_0804_chevrolet_volt_update/index.html

These citations constitute the external sources of information that Eric Edgar relied upon for his testimony.

Audience and Agenda:
Eric Edgar is a member of the sales team at Lane County’s Guaranty Chevrolet Pontiac RV.

Usefulness:
According to Eric Edgar, Guaranty Chevrolet Pontiac RV will have the Chevy Volt in November 2010. According to an April write-up in Motor Trend, Edgar’s assertions are accurate. Also, Edgar claims that currently Guaranty Chevrolet Pontiac RV has  4 buyers for the Chevy Volt (these are pre-orders for the vehicles). Edgar claims that the primary source of information on the Volt is via the postings on the company blog, available at www.guarantychevy.com/guaranty-chevrolet-blog. He says that a key reason that the Volt will sell is because people will buy American vehicles no matter what –people understand the importance in keeping money here at home. Though the Volt is in the development/pre-production process, Edgar notes that his local dealership has no prototypes yet.
On the issue of pricing and model management, Edgar stated that GM specialists train GM dealerships when new products launch; this training increases costs to the dealers, which (in-turn) is passed on  to consumers in one of two ways:
1.  High volume of sales to segments with only a moderate price increase
2. High markups on the vehicle to makeup for low demand

Works cited:
http://www.guarantychevy.com/
http://www.motortrend.com/features/auto_news/2008/112_0804_chevrolet_volt_update/index.html
http://www.guarantychevy.com/guaranty-chevrolet-blog

Summary: An interview with a  Chevrolet sales associate from a Eugene, OR dealership; the brevity and content of the conversation caused me to wonder, “Will the Chevy Volt be the next EV-1?”

Topic: Plug-In Hybrid Vehicle Policy
Category: Citizen,  Shareholder, Interview
What is it? An over-the-phone interview with Ryan Wagner, Kendall Chevrolet Cadillac sales associate in Lane County, OR.

Publication Information: N/A
Author: Ryan Wagner
Location: Kendall Chevrolet Cadillac, (877) 371-8620  –or–  (541) 998-5000
Accessed: March 11, 2009

Support:
General Motors
Google
“Chevy-dot-com”

These sources represent Wagner’s references to available information about the  Chevy Volt.

Audience and Agenda:
Ryan Wagner is a member of the sales team at Eugene-based Kendall Chevrolet Cadillac –one of seven subsidiaries of Kendall Automotive Group Inc.  –a list of sister companies is available at their site. Kendall Chevrolet Cadillac is a full-service auto dealer, selling new and used cars, vehicle parts, and repair services.

Usefulness:
Ryan Wagner had very little to say when asked about GM’s rollout of the Chevy Volt in 2010, and there in lies the value of this interview. According to Wagner, “We don’t have really any information on it yet, and we probably won’t. … All the information that you’re going to find is the same information that we would find, and it would be at either Chevy-dot-com, or General Motors’ website. We don’t actually have any literature yet, and usually they don’t give us any literature until maybe a month out from the actual release.
“[GM’s] release [of the Chevy Volt]  is…(sic) it’s kind of a special deal to where it’s very, very private –until things circulate the way that they should, and that’s the way it’s always been with General Motors as far as that goes. When there’s a new release, we don’t know about it until it gets really, really close –maybe a month or two out from the actual release, we’ll get more information on it.”
That’s almost everything that I got out of Wagner about the Chevy Volt. But, whether Wagner knew it or not, his framing and word usage, such as “We don’t actually have any literature,” “private,” “until things circulate the way that they should,” and “special,” seemed to give support to the movie “Who Killed the Electric Car?” and their characterizations/demonizations of GM. Wagner’s primary concern seemed to be about the Chevy Camaro, which is behind on the production lines at the moment. People are pre-ordering Camaroes at Kendall Chevrolet Cadillac, but nobody is even talking about the Volt.

Works cited:
http://mintglobal.bvdep.com
http://www.chevroletofeugene.com/Welcome
http://www.chevroletofeugene.com/CustomerSupport

Summary: An interview with Trudy Cameron that casted insight on issues of tariffs and trade, and U.S. vehicle safety standards.

Topic: Plug-In Hybrid Vehicle Policy
Category: Citizen, Expert Interview
What is it? An in-person interview with Trudy Cameron, R. F. Miskell Professor of Economics at the University of Oregon

Publication Information: N/A
Author: Trudy Cameron, R. F. Miskell Professor of Economics at the University of Oregon
Location: 430 PLC, 1285 University of Oregon, Eugene, OR 97403-1285
Accessed: March 4, 2009

Audience and Agenda:
Trudy Cameron is the R. F. Miskell Professor of Economics at the University of Oregon. Cameron is a member of the Environmental Studies Program at the University.

Usefulness:
Though Trudy Cameron had a lot of insight to offer on environmental economics, the information she provided about vehicle safety standards and import tariffs is the most under-developed subject explored by my investigation; so, these two points will be the focus of this discussion.
After questioning Cameron about the relative price differences between the Chevy Volt, $35,000, and the BYD F3DM, $22,000, in relationship to the vehicles’ release dates and their mileage-travel capacity on electric power alone (Volt release in 2010 with 40 miles per charge, and F3DM release in 2011 with 250* miles per charge), Cameron responded by noting that U.S. safety standards are likely to demand an increase in the F3DM’s overall weight, thus reducing its mileage capacity, and lowering its overall desirability to consumers. Additionally, this increased amount of material will increase BYD’s overall costs, which will be passed on to the consumer; however, Cameron did not speculate on what this additional cost would look like.
Also, Cameron cited that at one time there was an import tariff on the Mercedes-Benz Smart Car. Essentially, Cameron noted that U.S. automakers were scared about how popular Smart Cars would become, and Detroit’s Big Three would see a drop in market share if the tariff was not enacted. Also, when the Smart Car was introduced to Canada, a strict non-export policy was put in place in order to limit the exposure of the vehicle on U.S. soil. Cameron suggests that it is possible that something like this may re-occur if foreign competition attempts to enter the U.S. marketplace with vehicles that are superior to U.S. domestic products.

*”250 miles” per charge is a quote I lifted from a BYD representative’s speech at the Detroit auto show. Currently, the F3DM is curculating in China with only a 62-miles-per-charge range.

Works cited:
http://directory.uoregon.edu/telecom/directory.jsp?p=findpeople%2Ffind_results&m=staff&d=person&b=name&s=Trudy+Cameron
http://envs.uoregon.edu/people/faculty.php

Also see an article at Green Car Congress discussing “green” military vehicles, entitled US Military Considers Green Vehicles.

Additionally, check out the informational video on the US Navy’s website.