House Considers Funding PHEV Research

WASHINGTON (June 17, 2006) - The U.S. House of Representatives Science Subcommittee on Energy held a hearing last month on draft legislation that would promote plug-in hybrid electric vehicle (PHEV) research and development. The "The Plug In Hybrid E
Jan. 1, 2020
12 min read
LEGISLATIONHouse Considers Funding 
PHEV Research
WASHINGTON (June 17, 2006) - The U.S. House of Representatives Science Subcommittee on Energy held a hearing last month on draft legislation that would promote plug-in hybrid electric vehicle (PHEV) research and development. The "The Plug In Hybrid Electric Vehicle (PHEV) Act of 2006," is sponsored by Representative Lamar Smith (R-TX). Click here for an archived Web cast and copies of the testimony

"Plug-In hybrid cars get better gas mileage, give off fewer emissions and reduce America's dependence on foreign oil," noted Smith in a press conference. "For economic, environmental and strategic reasons, it makes sense to encourage automakers to go beyond their already popular hybrid vehicles to produce plug-in cars."

The subcommittee hearing explored the possible benefits of PHEV technology: their potential to address national issues of oil dependence, high-energy costs and vehicle emissions. The technology problems that need to be overcome, such as battery weight, reliability in weather extremes and cost, were also considered. During the opening remarks, Representative Joe Barton (R-TX), chairman of the full House Energy Committee, said, "Wind, solar, and biomass will help, but we shouldn't forget the conventional fuel sources, such as clean coal technologies and nuclear. This hearing is important because it highlights energy R&D, which will demonstrate that the best is yet to come."

The committee's concern focused on two main issues: whether battery storage capacity has advanced to the point that PHEVs can be a viable alternative mode of transportation and if the grid is capable of handling the added load in the event that millions of PHEV drivers plugged in at the same time. Witnesses told the subcommittee that technical challenges related to the size and cost of the battery, and limited demonstration of existing technologies have kept PHEVs from penetrating the marketplace; no plug-in hybrids direct from automakers are currently offered to consumers. The witnesses unanimously agreed, though, that legislation would help overcome these hurdles and advance PHEVs.

Full speed ahead Testifying on separate panels, Mark Duvall and John Novak of the Electric Power Research Institute (EPRI) - an independent, non-profit research organization - told lawmakers that while plug-in technology currently was in the prototype stage, the outlook for near-term commercial deployment was excellent. This is especially true for city driving - one of the highest sources of emissions. "Wind, solar, and 
biomass will help, but we shouldn't forget the conventional fuel sources, such as clean coal technologies and nuclear." 
- Rep. Joe Barton (R-TX) The EPRI testimony was supported by the Edison Electric Institute (EEI) - an association of U.S. shareholder- owned electric companies, international affiliates and industry associates worldwide, which generates about 60 percent of the electricity produced in the United States and services a majority of customers. In essence, the EEI said that the U.S. electric power sector is uniquely positioned to help wean the nation from its dependence on foreign oil and at the same time ensure continuing air quality improvement.  "The U.S. electric power sector has successfully reduced power plant emissions while meeting the growing demand for electricity, and we can literally help fuel a similar transformation already underway in the transportation sector," said Rick Tempchin, EEI director of retail distribution policy. "Though challenges remain, PHEVs offer tremendous potential for reducing our dependence on oil and further reducing emissions. While the electricity industry is working with automobile manufacturers to bring plug-ins to market, government research support and financial incentives are critical to ensuring wide-scale commercialization."  One of the main benefits of plug-in vehicles, Tempchin said, was the prospect for transferring some of the transportation sector's heavy reliance on petroleum to the power sector's diverse portfolio of fuels used to generate electricity. Unlike automobiles and trucks, which rely heavily on petroleum-based fuels, electricity is produced from a variety of domestic fuels, including coal, nuclear power, natural gas, hydroelectric power and other sources of renewable energy. Fuel diversity has been a cornerstone of efforts to maintain electric reliability and control costs in the power sector, and, maintained Tempchin, plug-in hybrids can replicate some of these benefits in the transportation sector. Another benefit is using electricity to charge vehicles overnight, when there is widespread overcapacity. As electric automobiles became more prevalent, the use of electricity could be better optimized to avoid wasted voltage. "A simple 120-volt outlet and backing from the federal government are the two ingredients necessary to make this happen." 
- Edison Electric Institute

"Commercialization of plug-in vehicles could significantly reduce tailpipe emissions, save money at the gas pump, and help consumers avoid price fluctuations associated with reliance on a single fuel to power their cars," Tempchin said. For this to happen, the EEI said Congress must ensure full funding for programs to promote smaller-scale demonstrations of plug-in vehicles and help address remaining technical challenges, such as reducing the cost and extending the life of PHEV batteries.

Specifically, he asked lawmakers to support the U.S. Department of Energy's $14 million request for its Vehicle Technologies Program and PHEV research and development, as well as the department's Clean Cities initiative, to provide incentives and support for PHEVs and other alternative-fuel vehicles. The Energy Policy Act of 2005 also provides an incentive to utilities to include hybrid vehicles in their fleets.

"Congress must provide funding for these programs before the Energy Department can implement them," Tempchin said. "But with support from the federal government, and continued collaboration between the electricity and transportation sectors and state and local government, consumers one day soon will be able to recharge their cars as easily as they recharge their cell phones and portable music players. The energy, economic and air quality gains could be dramatic, benefiting individual consumers and the entire U.S. economy."

Performance-based funding for R&D John German, manager of Honda's Environmental and Energy Analysis, told the subcommittee: "Honda strongly supports the research program outlined in the House discussion draft of the Plug-In Hybrid Electric Vehicle Act of 2006."  He noted that the automotive industry is in a period of unprecedented technology development. Gasoline technology continues to improve, spanning variable valve timing, direct fuel injection, variable cylinder displacement, turbocharging and more. Diesel engines also have seen dramatic improvement in recent years, with automakers and their suppliers working hard to meet the U.S. emission standards. Hybrid-electric vehicle production at Honda is into second- and third-generation vehicles.  German described how Honda is preparing for the compressed natural gas vehicle market and the hydrogen fuel cell-powered vehicle market, by backing development of a home refueling system from FuelMaker Corporation. German also testified that the development of battery-electric vehicles continues and that they have found a niche in America. "If there are to be mandates, they should be stated in terms of performance requirements, with incentives and supported by research and development." 
- John German, Honda German informed the subcommittee that the impact of biofuels, even with the development of cellulosic ethanol, would replace at most, 10 to 20 percent of the world's current demand for oil: "The point is that there is no magic bullet - we are going to need rapid development and implementation of as many feasible technologies as possible."  He urged the subcommittee to be prudent and exercise caution with respect to R&D funding. "The primary effect of technology-specific mandates is to divert precious resources from other development programs that likely are much more promising," German commented. "If there are to be mandates, they should be stated in terms of performance requirements, with incentives and supported by research and development." For example, going all out to fund ethanol production that would have a limited impact at the expense of other promising technologies would be, in the long term, counter-productive. With respect to plug-in hybrids, German said it is really too early in the development of hybrid vehicles and advanced batteries to predict whether PHEVs will reach their anticipated potential. Plug-in hybrids have a lot of promise, especially to displace oil consumption. They need and deserve further research and development, he stated. In that regard, the thrust of the draft legislation makes a good deal of sense. Before PHEVs can be viable, however, there are a number of technology, consumer acceptance, environmental and cost issues that still need to be addressed, including: * The extra batteries add 175 to 500 pounds to the vehicle, which decreases performance. Also, it is difficult to find space for the extra batteries without detracting from the utility of the vehicle, even if ultracapacitors are utilized. Systems to plug the vehicle in to the electric grid must be safe and easy to use. Performance must be preserved to a level that meets consumer expectations, if the technology is to have an end market. * Energy storage is a significant hurdle. Although current hybrid vehicles have relatively small NiMH battery packs, the battery pack is still the single largest cost of the hybrid system. Further, energy flow and operating temperatures in conventional hybrids are carefully monitored and controlled to ensure maximum battery life and reduce deterioration. PHEV battery packs must be many times larger, even with a short electric range.

German noted that PHEV battery packs are subjected to deeper discharge cycles during electric-only operation, much higher electrical loads and temperatures to maintain performance, and therefore more rapid deterioration. This may result in replacement of the battery pack at least once during the vehicle's life.

* Some are promoting lithium-ion battery or other technologies as the long-term solution. Yet despite the promise, durability has not been proven - compared to NiMH, they are more susceptible to damage, do not perform well in cold or hot environments and are more expensive. In effect, German summed up, lithium-ion batteries have not yet been shown to be sustainable in the range of temperatures and operating conditions experienced in the real world. * German suggested an examination of the real-world cost-effectiveness challenges. He noted that at the recent SAE Government/Industry Meeting on May 10, the EPRI's Mark Duvall had stated that about 40 percent of the duty-cycle of a plug-in hybrid should be electric-only operation. For a typical vehicle lifetime of 150,000 miles, this means that about 60,000 miles will be accumulated while the battery charge is being depleted. For a vehicle with an all-electric range of 20 miles, this requires that the battery pack be able to tolerate 3,000 deep discharge cycles without significant energy or power storage deterioration.  He discussed the Toyota Prius as an example, which provides real-world fuel economy in the 45 to 50 mpg range. Using a conservative estimate of 45 mpg, the Prius will use 3,333 gallons of fuel in 150,000 miles if always operating on fuel. If 40 percent of the mileage on the Prius is in charge-depleting mode, as Duvall suggested, then the fuel savings is 1,333 gallons.  Even at $3 per gallon, the fuel savings for a plug-in vehicle like the Prius is only $4,000 over the average vehicle lifetime. After factoring in the electricity cost to recharge the battery pack, which would be at least $1,000, the net savings to the consumer is less than $3,000. If the battery pack needs replacing, the net benefit is further reduced if not eliminated. From a manufacturers' and customers' point of view, there is no business case unless fuel prices rises to substantially more than $3 per gallon, fuel shortages occur, plug-in hybrids are heavily subsidized, or there is a breakthrough in energy storage.  * Electricity may appear "green" from the consumer's viewpoint, but from a societal point of view, how electricity is produced will impact other issues besides energy security, such as criteria pollutants and CO2 emissions. If coal is the primary source of the electrical energy, criteria pollutants and CO2 emissions will be higher with the plug-in hybrid. If renewable sources of energy are used to generate the electricity, PHEVs can offer benefits for clean air and global warming. Another societal issue is end-of-life battery disposal. This is not likely to be a problem for NiMH batteries, as the raw materials are very valuable and recyclers will be active in setting up systems to recycle the batteries. However, it may be a problem for lithium-ion batteries, where the raw materials are far less valuable.  "By far the most important action the government can take is research into improved energy storage. Until improved batteries can be developed with lower cost and better durability, there is little need to assess customer acceptability or conduct vehicle demonstration projects," concluded German.  In a press conference following the hearing, Representative Smith noted, "Plug-In hybrid cars get better gas mileage, give off fewer emissions and reduce America's dependence on foreign oil. For economic, environmental and strategic reasons, it makes sense to encourage automakers to go beyond their already popular hybrid vehicles to produce plug-in cars."  "Plug-in hybrids would allow us to power our cars with clean energy, including from renewable sources such as solar and wind," added Energy Subcommittee Chairman Judy Biggert (R-IL). "To think that you could pull into your garage at the end of the day and 'fill 'er up' just by plugging your car into a regular, 110-volt socket in the garage is very appealing. Imagine the convenience of recharging your car just as you recharge your cell phone, Blackberry, or laptop every evening - by simply plugging it in. The next morning, unplug it and you are ready to go." The desired result may seem simple, but those testifying made it clear that getting there is far from easy.(Sources: House Science Subcommittee on Energy, EEI, EPRI, Honda)

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