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Hi everyone, I hope you had a great Independence Day! My family and I did our part to make it an Energy Independence Day by staying home this year (though, to be honest, the Mets were here in DC, so we had an excuse to stay home…). With the close of the holiday, we now have our winners of the Green Travel Challenge! In this month's issue, we'll let you know those exciting results, give you the latest on hybrid incentives, plus a little hybrid hide-and-seek.
So, as always, let's get to it,
Scott Nathanson
UCS National Field Organizer &
HybridCenter.org Administrator
In this issue:
Green Travel Challenge—And the Winners Are…
 We haven’t had so many new editions to our “Who’s Got Hybrids?” family in such a short period of time since we did our first HybridCenter Earth Day Challenge some five years ago. And the HybridCenter had its largest audience in the history of the site during the Green Travel Challenge as well! So thank you to everyone who posted a new testimonial, or told your friends to come see us.
We’re delighted to give this little “thank you” as a small token to all of you who have helped make our Driving Change Network into a dynamic and effective part of the movement for cleaner cars. And without further ado, here are the winners of the Green Travel Challenge!
Grand Prize Winners:
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Geri Deutsch of Oceanside, CA
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Barbara Froula of Denver, CO
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Ellen Morrison of San Carlos, CA
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Janusz Ostrycharz, Seatac, WA
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Mary Ellen Segraves of St. Charles, IL
Second Prize Winners:
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Miriam Dunbar of Fairbanks, AK
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Jack Nilles of Los Angeles, CA
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Russell Owens of Bradenton, FL
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Pedro Sole of Hayward, CA
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Janet Wainwright of Annandale, VA
Congratulations to all our winners, and thanks again for all who took part.
Are Hybrids Still Worth Incenting?
Thanks to the generosity of the Stanback Internship program at Duke University, we are delighted to have Melissa Reynolds as the HybridCenter.org intern until August. Her first task was updating our comprehensive list of state, federal, and local hybrid incentives. Here is Melissa’s take as to what she uncovered this time around.
 After a thorough search of all the legislative websites, and sifting through lots of local news, I found a number of new incentives being offered or considered for hybrids. Interestingly though, it is a lean market for the kind of traditional hybrid tax credits, parking perks, or High Occupancy Vehicle (HOV) lane exemptions that have made up the bulk of the HybridCenter’s incentive list for the past half-dozen years. Instead the new incentives are focused on leapfrogging today’s hybrid vehicles, and moving toward more advanced technology vehicles, even before they hit the market!
In our last incentives update, Scott told you about the increase in the number of incentives for plug-in hybrids and battery electric vehicles, and no doubt, that trend is accelerating. But it’s not just the quantity, it’s the growing diversity of incentives that is really interesting. For example, many different states are now offering incentives for the installation of charging equipment for plug-in hybrids and battery electric vehicles in residential homes. A number of bills have been proposed that would exempt this equipment from property taxes. This seems worthwhile, since home recharging will be essential to the success of these vehicles, but consumers should only get these tax credits if they also actually buy a plug-in or battery electric vehicle. Otherwise taxpayer dollars could go to charging systems that are never used.
Several previous hybrid incentives tied tax credits and other financial incentives to fuel economy in order to help encourage the purchase of more efficient hybrids. Though several current bills under consideration do have certain vehicle qualifications that must be met in order to obtain an incentive, such as the vehicle having a battery capacity of at least four kilowatt hours, the majority do not have any clear efficiency requirements. For now, this is okay. Unlike conventional hybrids, both the vehicle costs and many of the benefits (e.g. reductions in oil use and smog-forming emissions) of a battery electric vehicle are closely tied to the size of the battery pack. The same is true for a plug-in hybrid, though it still hauls around an engine, so there remains a real risk of a gas guzzler, even with a reasonably sized battery pack. But if financial incentives continue beyond the next several years, UCS feels strongly that they should be tied to both global warming and smog-forming emissions reductions to ensure that we not only get more electric vehicles, but better ones as well.
Here are what some of the states are trying, or considering, now:
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 Maryland passed two laws in May regarding electric vehicles and plug-in hybrids. First, purchasers of an electric vehicle can get a tax credit of up to $2,000. Second, plug-in vehicles can obtain a permit from the state permitting them to use HOV lanes regardless of the number of passengers.
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Hawaii is considering a number of bills regarding electric vehicles. One bill under consideration would exempt electric vehicles and electric vehicle charging systems from the general excise tax. Another bill would allow electric vehicles to use HOV lanes regardless of the number of passengers. Finally, the state is even considering a bill that would exempt car renters from the rental motor vehicle surcharge tax if they rent an electric vehicle.
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Michigan is considering a bill that would provide a $4,000 tax credit for taxpayers who install electric vehicle supply equipment in their homes. It would apply to all tax years following December 31, 2010.
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New Jersey is considering a bill that would exempt residential electric vehicle charging systems from property taxes. The system would first have to be certified by the state in order to receive the exemption.
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South Carolina is considering a bill that would provide purchasers of a qualified plug-in hybrid a tax credit of $2,000. The vehicle must have at least four kilowatt hours of battery capacity and use an external source of energy to recharge the battery.
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West Virginia and Vermont are considering bills that would allow taxpayers who buy or lease a qualified plug-in electric vehicle to receive a credit of $2,500. Plus, for every kilowatt hour in excess of five kilowatt hours of battery capacity, an additional $417 will be rewarded up to $5,000. The bills also include an incentive for the conversion of a motor vehicle and would give a credit worth 10 percent of the cost of the conversion (not exceeding $7,500).
The federal government is also looking to deploy more electric drive vehicles in the near future. Two bills were introduced in May to promote consumer interest in the rapidly developing technology. In addition to the existing $7,500 tax credit consumers can receive for the purchase of a plug-in hybrid or battery electric vehicle, the bills would also offer another $2,000 in rebates for the vehicle purchase, charging equipment, electricity, parking, and tolls. Check out the full list (please, I worked hard on this one!) at the HybridCenter incentives page.
DCN Newsbytes
- Leaf Gets Loud: It was quiet…too quiet. Nissan has decided to add some noise to the almost silent electric drive of the Leaf Electric Vehicle (EV). After exploring a number of options, Nissan settled on a soft whine that fluctuates in intensity with the car's speed. When backing up, it makes a clanging sound (sadly, this does not seem to be the sound of the flying car in Blade Runner). Interestingly, there seems to be a backlash against what seemed to be a consensus concern for pedestrian safety of quiet vehicles from anti-noise pollution advocates, who see the quiet hybrids, plug-ins, and EVs as a boon to their efforts. They have suggested that instead of outfitting the cars with noise, they outfit pedestrians in particular danger (mostly the visually-challenged) with sensors to alert them of an oncoming vehicle. More on both these issues in the Hybrid News Center.
 Hybrids, EVs, Creating Jobs Today: The clean energy economy is not a thing of the future, we are seeing the transition today. Dow just broke ground on a new production facility in Midland Michigan that will produce affordable lithium-ion batteries to supply the growing EV and hybrid vehicle market. American Lithium Minerals, Inc. has commenced preparation for the first lithium mine in North America in Henderson, NV. Toshiba is opening up shop in Houston for production of high-performance drive motors for hybrids, plug-ins, and EVs. Ford’s new “Center for excellence in vehicle electrification” will add more than 200 new jobs in Michigan. And Tesla’s new relationship with Toyota will reopen the shuttered New United Motor Manufacturing, Inc. (NUMMI) auto manufacturing plant in Fremont, California. These and many more stories of a growing clean auto economy at the Hybrid News Center.- Hyundai Looks to Beat Other Automaker’s Hybrids: Here comes Hyundai onto the hybrid market with the Sonata Hybrid, due out late this year. Their hope is that they can top out their city miles-per-gallon (mpg) at 40 depending on the Environmental Protection Agency (EPA) tests, and early estimates have their sedan leading the market in price, coming in at around $25,000—well under the Camry, Altima, and Fusion Hybrids. Interestingly, Hyundai also has their eye on the new Honda CRZ, but is using conventional technology to do it. Hyundai Motor America president John Krafcik said he expects the forthcoming Veloster small sports coupe with a conventional gasoline drivetrain to break 40 mpg. If it does, it will beat the hybrid Honda CR-Z, which gets 36/39 city/highway when equipped with a CVT and 31/37 with a manual transmission. That’s quite a gauntlet to throw down right as the CR-Z comes to market. More on these and other hybrid models in the Hybrid News Center.
I Spy a Hybrid
As we jaunted out to California for our annual Clean Vehicles planning retreat, Program and Outreach Assistant Leah Parker had a serious hybrid double-take experience…or experiences. Here’s Leah to tell you what she saw.
Ever since I started working in the Clean Vehicles Program at UCS two years ago, I’ve developed a habit of checking out cars everywhere I go. Like a child playing the license plate game on a long road trip, my eyes are constantly scanning the streets in search of hybrids. I still remember with utter glee, seeing for the first–and only–time, a Cadillac Escalade Hybrid roaring down I-95. And once while standing in front of my house, a Chevy Silverado Hybrid with the Falls Church, VA seal on the side passed me by. My list of unseen hybrids keeps getting shorter and shorter, but recently I hit a lull. Until a few weeks ago.
In early June, I had to travel to San Francisco for work. This meant an opportunity for spotting more hybrids. Once I arrived, I stood in front of the airport waiting for a friend to pick me up. She was running late so I naturally passed the time by watching the cars go by. A steady stream of the ubiquitous Prius passed by and my eyes started to glaze over. There had to be a greater variety of hybrids in this town.
 Then all of the sudden I snapped to attention. There was a car I had never seen before. It stood out from everything else. It was sleek, it was stylish, it was a…tricked out Gen. 1 Honda Insight? That was all I could think as I stared at it with confusion. To me, it looked like a very new, very fancy version of the Insight, as if the owner had taken it to an auto shop to beef up the styling. As it passed me, I craned my neck to confirm my suspicions. I was wrong. To my sheer astonishment, it was a Honda CR-Z. This hybrid isn’t even available until August, and yet here was one picking people up at the airport. Unfortunately, I did not have my camera with me, or the time to fully take in what I was seeing. But if first impressions mean anything, it caught my eye and I was impressed.
The CR-Z with automatic transmission gets an EPA estimated fuel economy of 36/39 city/highway and starts at $19,200. Once again, Honda has come through with a hybrid below $20,000 (the Gen. 2 Insight has a starting price of $19,800).The CR-Z won’t be the most fuel efficient hybrid on the road, but that just might not be Honda’s focus. Judging from Honda’s promotional video, Honda is marketing the CR-Z as a fun car to drive. The video is hosted by Jason Barlow of Top Gear, who notes the CR-Z is, “not a sports car, but a sporty car.” At the outset, Barlow clearly had low expectations of the CR-Z, and with his British humor he comes around to enjoying the drive. It’s an amusing video and worth the five minutes. Given the sluggish sales of the Gen. 2 Insight, I’ll be curious to see how sales for the CR-Z turn out.
 As I continued to ponder the CR-Z, a black Lexus pulled up in front of me. My eyebrows rose when I realized it was my friend. I went around to throw my luggage in the trunk, and gasped. She was driving a Lexus HS 250h Hybrid. Not only was I adding yet another hybrid to my list, but I was actually about to go for a ride in it. I jumped in, gushing with excitement. I was surprised by how roomy it felt, especially since it’s classified as a compact car. Looking in the backseat, there was plenty of room. In fact, I later sat in the backseat just to make sure. Once I gave the hybrid a through look, I sat back and enjoyed the ride into the city.
No luxury hybrid has yet to “go Prius” in terms of sales. It could be because of the economy, or perhaps because most of them (with the exception of the HS 250h Hybrid–see how it rates on the Hybrid Scorecard) focus more on increased power from the hybrid system rather than increased fuel economy. Whatever the reason, I’m not seeing a lot of luxury hybrids on the road. But there are plenty of them available, and more are coming.
Ford will release the Lincoln MKZ Hybrid this fall, in direct competition with the Lexus HS 250h Hybrid. The MKZ Hybrid is a luxury version of the Ford Fusion Hybrid, and has the same EPA fuel economy rating of 41/36 mpg in city/highway, besting the fuel economy of the HS 250h Hybrid. I haven’t seen the official specs and features yet, but word on the street is the MKZ Hybrid will have even more luxury features than the HS 250h Hybrid. Perhaps Ford has found the magic combination of high fuel economy and luxury features and will lead the sales of luxury hybrids. As soon as the MKZ Hybrid is released, our analysts will break down its environmental performance as well as the cost-effectiveness of the hybrid system in the Hybrid Scorecard. Stay tuned!
"Who's Got Hybrids" Now?
As I noted earlier, our Green Travel Challenge brought in a ton of new hybrids to our “Who’s Got Hybrid”s community. But while the Green Travel Challenge has come to an end, we’re always on the lookout for more testimonials. Please help us to expand this community even more by sending in a photo and telling your hybrid story. And please ask your hybrid-owning friends to join us.
 William Caine of Mount Dora, FL bought his Gen.2 Honda Civic Hybrid second-hand and the previous owner put a lot of miles on it. Still, the car has run almost perfectly with only a few instances of the "Check Engine" light coming on.
 Liz Banner of Austin, TX needed a larger car for her family and purchased a 2006 Toyota Highlander Hybrid. She’s happy with the fuel savings, and thinks overall it is a well designed, reliable vehicle that seats seven people. But she does wish the mileage was even better.
 James Olsen of Moorhead, MN gets nearly 30 mpg highway with his Ford Escape Hybrid. He’s taken it from Minnesota to the West Coast three times. At the lake, he can pull his boat up the ramp and out of the lake using only silent electric drive, and all he hears is water dripping off the boat.
I hope everyone can stay cool in what’s starting out as a scorcher of a month here in DC, and I’ll talk to everyone again in August.
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