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hydrogen fuel cell vehicles make up 50 percent of the total number of consumer vehicles on the road. 6. Increase research and development to ensure the use of next generation biofuels, electric batteries, and/or hydrogen fuel cells in heavy trucks, ships, and airplanes. It is clear there will be a continuing role for hydrocarbons in heavy-duty trucks, ships, and airplanes. Efforts should, however, be made to improve the fuel efficiency and performance of existing technologies and to design engines less reliant on hydrocarbon- based fuels. Developing flexible fuel engines that use next-generation biofuels and electric and hydrogen fuel cell engine systems for these applications would help complete the transportation transition away from petroleum. Impact of Transportation Innovation Policies on National Objectives Energy Independence and Security According to the EIA, the United States “imports nearly 60 percent of the petroleum it consumes and dedicates more than 60 percent of its petroleum consumption to transportation.” 18 By reducing the petroleum used for transportation and some consumption in other sectors, the United States will no longer rely on foreign nations for petroleum. The United States can also develop its own battery industry, so it will not be reliant on foreign nations, such as Japan, for that component of hybrid and electric vehicles. By reforming the transportation industry, the United States may not become energy independent, but it will reduce its reliance on other nations and provide more flexibility in what new energy sources it chooses. Economic Impact and Feasibility By investing in advanced batteries and hydrogen fuel cells, the United States will foster the growth of a new domestic industry and help a struggling U.S. auto industry recover. Tax credits for consumers will increase the demand for new, more fuel-efficient vehicles. Reducing the transportation sector's reliance on petroleum will decrease the need for energy imports, helping to balance U.S. trade deficits. More efficient vehicles will, in the long run, decrease the cost of transporting goods, making most goods cheaper for consumers and encouraging greater consumption. Such improvements in the efficiency of the transportation system should be reflected by increases in GDP. If the market is functioning properly, CAFE standards should not overly burden auto manufacturers, because the market will move the fleet average well above the set standards. Private industry should also see value in constructing corridors of electric battery recharging/swapping stations or hydrogen fuel cell refueling stations, depending on which technology emerges as the dominant choice of the market. As the number of plug- in hybrid and electric vehicles or hydrogen fuel cell vehicles increases, the demand for these new types of stations will increase, while the demand for gas stations will decrease. Relying on hybrids and plug-in hybrids for the interim period will provide the time 172PDF Image | Shaping Energy Technology Transition
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