Saturday, November 15, 2008

Bloomberg Still Pushing Green Taxi Initiatives

His plans to require all New York City yellow cabs to go hybrid failed when a judge ruled that Mayor Mike Bloomberg overstepped his authority to impose fuel economy standards on the taxi fleet. Bloomberg was pushing to increase fuel economy of the taxis in the city, and ordered taxi owners to comply by the end of October.

Bloomberg's plan was nothing short of an unfunded mandate that had no bearing to reality. The automakers had a shortage of available hybrids that could possibly fill in as hybrids for the taxi fleet, and existing vehicles were substantially larger and had more legroom for passengers. His plan essentially creates a shortage of taxis that New Yorkers depend upon to go where the MTA bus routes don't.

Now, Bloomberg is pushing yet again to foist an unworkable plan on taxi owners.
The goal of the new incentives, which involve changes in how much fleet owners can charge drivers for the use of cars, was to make it more expensive for the owners to use the Ford Crown Victoria, the most common cab today, and more profitable to use hybrids like the Ford Escape and other fuel-efficient vehicles that cause less pollution.

“By modifying the leasing fees on fleet vehicles, we could level the playing field for drivers while also providing financial incentives for owners to purchase hybrids,” Mr. Bloomberg said during a news conference at a taxi garage in Long Island City, Queens.

City officials said that the new rules did not place an outright ban on particular cars based on fuel efficiency, and the mayor said that the rules would stand up to legal tests.

“It has nothing to do with imposing mileage standards,” he said. “It’s totally voluntary.”

The mayor lashed out at critics, saying that the pollution from gas-guzzling taxis hurt city children. Told that critics found the new incentives “deeply troubling,” the mayor snapped, “I think it’s more deeply troubling that they’re trying to kill our kids.”
Bloomberg might be on a better footing if he bothered to note that the city's buses emit far more tailpipe emissions than the cabs do, and that the average miles per gallon for the bus fleet is 3.69.
Assumed annual mileage per bus varies from 14,101 miles (’04 hybrid buses) to 29,595 miles (‘03 hybrids). Assumed average fuel economy varies from 1.69 MPG (EGR articulated bus) to 3.69 MPG (motor coach).

Using the fleet assignment, average annual mileage, and average fuel economy the model assumes that in 1995 the NYCT bus fleet traveled 102 million miles and consumed 38 million gallons of diesel fuel, while in 2005 it traveled 119 million miles and consumed 41 million gallons of diesel fuel and 7 million diesel-equivalent gallons of natural gas.
A modest increase in that would have tremendous benefits for the MTA bottom line, and would save the lungs of tens of thousands of people who live in close proximity to the MTA bus depots around the city and the millions who live in and around bus lines. While the MTA has been busy improving tailpipe emissions with new bus purchases and retrofits, the fuel economy is still in the dumpster.

Given how the MTA is wailing about how toll and fare hikes are absolutely necessary in light of budget shortfalls, shouldn't improving the fuel economy of the bus fleet be a far higher priority than mandating and pushing the taxi fleet to take on vehicles that are ill suited to do the job?

Energy prices have contributed to the MTA budget shortfalls (as has the economic situation given that a significant portion of MTA revenues come from real estate transaction taxes), and again, if the fuel economy of the buses were to increase, say from 3.69 mpg to 4.6125 mpg (25% improvement, which is far short of Bloomberg's taxi hybrid plan), the cost savings would be tremendous going forward, especially if the price of oil were to again rise above $80 (or $100, $120 or $140 as some predict in future years).

After all, a reduction of 25% of the annual fuel usage would mean 10.25 million fewer gallons used than currently. Assuming a diesel price of $3.00 (far lower than what the current price is for taxable consumers), and we're talking about a savings per year of $30.75 million, to say nothing of the lower COx, NOx, and particulate emissions that Bloomberg appears so concerned about with respect to the taxi fleet.

Bloomberg was pushing for a near doubling of fuel economy standards for taxis, from 14-15 mpg as currently enjoyed by those using Ford Crown Victorias to 25 mpg (78% increase). A 78% increase in fuel economy of buses would mean an annual savings of more than $90 million in diesel fuel purchases alone (at $3 per gallon).

Note too that the 3.69 mpg figure I cited was the most efficient of the buses in the MTA fleet - the motor coaches used on express bus routes. The cost savings would be even higher for buses operating on the regular bus routes.

UPDATE:
Adjusted the cost savings above to reflect the 2005 diesel fuel usage, rather than the 1995 fuel usage as originally indicated. If anything, the change further proves the point about energy usage and cost savings from fuel economy improvements.

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