1 Progress and Challenges in Motor Vehicle Pollution Control The Role of Alternative Fuels

2 Overview n Why Use Alternative Fuels? n What Alternative Fuel Vehicles are Available Now? n Alternative Fuel Vehicle R&D Challenges

3 Why Use Alternative Fuels? n Petroleum Displacement n Energy Diversity n Air Quality Improvement n Greenhouse Gas Emission Reductions n Domestic Economic Development

4 Smog is Becoming Pervasive

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7 Air Pollution Problem Caused By Diesel Vehicles in Hong Kong Taxis, goods vehicles and buses Taxis, goods vehicles and buses 30% of vehicle population 30% of vehicle population 70% of all mileage 70% of all mileage 98% of vehicle particulate emissions and 100% black smoke 98% of vehicle particulate emissions and 100% black smoke 75% of vehicle NOx emissions 75% of vehicle NOx emissions Cause of recent record high Air Pollution Index Cause of recent record high Air Pollution Index

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9 Suspended Particulate Matter Air Quality Trends in Japan

10 Transportation Share of Emissions in US n Still a major contributor, despite reductions in new vehicle emissions achieved over the last decade CO NO x Lead VOCs CO 2 Particulates 79% 53% 13% 44% 33% 25% SO 2 7% Source: EPA

Different Automotive Fuels = Different Exhaust Emissions ÖL + Additives Blending with different Components Different Crude Oils and Refineries Paraffins Naphtens Aromatics Olefins Aromatics Paraff./Napht. Olefins Oxygenates ~300 HC ~200 HC + Air Different Combustion NO x HC SO 2 C6H6C6H6 PAH PM CO CO 2 Gasoline Diesel Formulation ?

12 Estimated World Oil Supply Source: EIA, Long Term World Oil Supply, July 28, 2000.

13 Relative Greenhouse Gases Zero or a Credit

14 Alternative Transportation Fuels n Electricity n Ethanol n Hydrogen n Methanol n Natural Gas –Compressed –Liquefied n Propane (LPG) n 100% Biodiesel

15 Alternative Fuel Vehicles Available Now n Ethanol n Natural Gas n Propane (LPG)

16 Natural Gas Vehicles n Very Low Emissions n Good Performance n Lower Cost Fuel n Limited Range, but Adequate for Most Applications n Few Refueling Stations n Higher Cost Vehicle Ford Crown VictoriaFord F-150 Honda CivicNew Flyer D40 LF Bus

17 Propane Vehicles n Low Emissions n Good Performance n Cost Similar to Gasoline n Few Typical Refueling Stations, Many Potential Places to Refuel n Higher Vehicle Cost Ford F-150 Ford Club Wagon

18 Gasoline and LPG G-DI Conventional Diesel Ultrafine Particles Vary For Different Fuels

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20 Ethanol Vehicles n Low GHGs n Less Reactive n Subsidy Required to be Cost Competitive Ford TaurusChrysler MinivanFord Ranger

21 Alternative Fuel Vehicle R&D Challenges n Ethanol Production from Cellulose n Reduce Natural Gas and Propane Vehicle Cost n Expand Refueling Infrastructure

22 Long-term Outcomes With Alternative Fuels n Billions of gallons of oil displaced or reduced n Thousands of tons of emission reductions n Enhanced energy security and improved transportation sustainability

23 Elements of an Alternative Fuels Strategy n Set a specific goal n Voluntary programs n Public Information n Fleet mandates n Grants and incentives

24 “On the Road” Goals to Achieve Sustainable Vehicle Transportation Dramatically Improve “Emissions & Efficiency” Reduce Vehicle Miles Traveled Use Clean Alternative & Renewable Fuels