Environmental Engineering Reference
In-Depth Information
first generation is around 70 billion liters (mainly in the United States and Brazil)
per year, which replaces approximately 5% of the world's gasoline consumption at
1.2 trillion liters per year.
A renewable portfolio standard (RPS) is a government policy requiring that a min-
imum percentage of energy generation sold or capacity installed be provided by re-
newable energy. Public or private utilities are mandated to implement these targets.
RPS policies, also called renewable obligations or quota policies, exist at the
state/provincial level in the United States, Canada, and India, and at the national
level in Australia, South Korea, Chile, China, Italy, Japan, the Philippines, Poland,
Romania, Sweden, and the United Kingdom. Globally, 63 states, provinces, or
countries in 2010 had RPS policies. Most RPS policies require renewable power
shares in the range of 5-20% by 2010 or 2012, although more recent policies are
extending targets to 2015, 2020, and 2025. Most RPS targets translate into large
expected future investments, although the specific means (and effectiveness) of
achieving quotas can vary greatly among countries or states.
Fuel economy standards have been very effective in promoting engine efficiency
and reduction in fuel consumption. The overall effectiveness of standards can be
significantly enhanced if combined with fiscal incentives and consumer informa-
tion.
The best example of such standards is the Corporate Average Final Economy
(CAFE) standard, first introduced in the United States in 1975. Such standards set
the average fuel consumption for the fleet of passenger car models and light trucks
(with a gross vehicle weight rating of 3.866 kilograms or less) of each manufac-
turer.
The CAFE standard adopted originally was 25 miles per gallon (mpg). Subse-
quently, the European Union adopted a standard of 40 mpg. If the average fuel
economy of a fleet from a given manufacturer falls behind the defined standard,
that manufacturer must pay a penalty of US$5.50 per 0.1 mile per gallon under
the standard, multiplied by the manufacturer's total production for the domestic
US market. Since 1983, manufacturers have paid more then US$590 million in
CAFE civil penalties to the US Treasury. Most European manufacturers regularly
