House Environment Subcommittee discusses future of fuel, vehicle industries

In a hearing this week, the House Environment Subcommittee listened to witness testimony on the potential facing transportation fuels and vehicles from a host of private and governmental figures alike.

Subcommittee Chairman John Shimkus (R-IL) called attention to the changing pace of evolution–specifically, in how past changes were somewhat slow, whereas recent years have seen the pace of development leaping forward. He also noted that forward momentum is not likely to slow anytime soon.

“Many factors are contributing to this evolving marketplace in transportation,” Shimkus said. “One driver is government policy. We are also seeing technological advances and for every alternative vehicle breakthrough, there are alternative fueling infrastructure challenges for which solutions are being developed.”

To address this, the subcommittee assembled five witnesses. These included John Maples, senior transportation analyst for the U.S. Energy Information Administration; John Eichberger, executive director of the Fuels Institute; Dr. John Farrell, laboratory program manager of vehicle technologies for the National Renewable Energy Laboratory; Dr. Joshua Linn, senior fellow at Resources for the Future; and Dr. Jeremy Martin, senior scientist from the Union of Concerned Scientists.

Eichberger agreed with Shimkus to an extent, noting that aggressive policies or market forces were necessary, but added that he did not see any significant pace at the moment. In his eyes, the internal combustion engine will remain at the helm of the U.S. vehicle fleet for decades to come. By contrast, Maples honed in on the uncertainty a potentially speedy pace of advancement could bring. Specifically, he addressed four areas analysts must watch for when predicting the future of these markets.

“Higher or lower fuel prices can change the relative attractiveness of all vehicle types,” Maples said. “On-demand ride hailing is already affecting how consumers utilize personal vehicles and mass transit…Consumer acceptance affects future market success of vehicle types and alternative fuels – cost and performance, alternative fuel prices and availability, and refueling infrastructure availability. Finally, the future regulatory environment is also uncertain.”

Others pointed to IT advances culminating in ride sharing and bike share services, as well as the potential outcomes of automated driving. The need for innovation promotion market favorable policies from the government seemed to be a consensus point.

“Bottom line – the success of alternative fuels in the marketplace relies heavily upon their ability to bring down the cost per mile traveled, and the success of alternative vehicles relies on avoiding sticker shock,” Full Committee Chairman Greg Walden (R-OR) said. “The good news is that the breakthroughs in fuels and vehicles can be done in a way that benefits consumers while also achieving environmental and other objectives.”