Executive Speeches

Testimony of Eugene W. Zeltmann, president and chief operating officer, New York Power Authority, and Co-Chairman, Electric Vehicle Association of the Americas, before the Senate Energy and Natural Resources Committee, Washington, D. C.

July 17, 2001

Mr. Chairman, and members of the Committee, I am Gene Zeltmann, President and Chief Operating Officer of the New York Power Authority (NYPA). The Power Authority is America’s largest state-owned public power enterprise, operating 10 generating facilities and more than 1,400 circuit miles of transmission lines.

I appear today as co-Chairman of the Electric Vehicle Association of the Americas, whose membership includes international vehicle and component manufacturers, energy providers and technology developers. I thank you for this opportunity to discuss the role of the federal government in reducing the use of petroleum in the light duty vehicle sector.

EVAA believes that reducing dependence on foreign oil demands that we transition the country’s biggest consumer of this commodity—the transportation sector—to use of other fuels. Electricity is an attractive alternative. It is clean, efficient, relatively affordable and is produced domestically, from a variety of feedstocks. And, use of electricity can greatly enhance our energy security since today’s U.S. electric generation base is less than 3% reliant on petroleum.

EVAA encourages the development and use of several electric transportation modes including vehicles powered solely by batteries; fuel cell vehicles, where the electricity is generated on board; and, finally, hybrid electric vehicles that rely upon a small internal combustion engine operating in conjunction with an electric motor.

Mr. Chairman, my written statement details the benefits of using electric transportation and describes the challenges we face in commercializing these technologies. I will use my time this morning to highlight actions that government might take to assist in the transition of our transportation network to alternative fuels.

New York State has moved boldly to promote electric and other modes of clean fuel transportation, exemplifying the role that EVAA and its members believe government should fill.

Under the leadership of Governor George Pataki, generous state tax credits and exemptions from the state sales tax for purchase of vehicles have been enacted. A state environmental bond is providing financial support for clean fuel buses and fleet vehicles. And, the Governor has directed the state fleet, which already includes some 700 clean fuel vehicles, to operate solely on such fuels by the end of the decade.

The Power Authority is assisting in this paradigm shift by deploying more than 200 electric vehicles for use by our customers and employees. We have initiated all-electric commuter programs and supported the acquisition of several hundred hybrid electric buses. And, importantly, we are facilitating the conversion of 500 US postal vans to electricity.

With respect to the federal government’s role, let me first say that EVAA supports tax incentives as the single-most effective means of "jump-starting" the market for electric and other clean fuel transportation options. EVAA supports the inclusion of such incentives as a critical component to an effective national energy policy.

With respect to matters within the jurisdiction of this Committee, EVAA urges the inclusion of several, specific items in comprehensive energy legislation.

First, a primary factor in the current high price of electric vehicles is the battery. Advanced batteries used to power battery and hybrid electric EVs are expensive, due largely to the materials—like nickel—used in their manufacture. Increasing volume will assist somewhat in lowering the price, but automotive manufacturers believe the batteries will remain too expensive to allow for an affordable EV—even at mass production. A second use—subsequent to service in a vehicle—is feasible because EV battery packs retain about 80% of their rated capacity at the end of its use in the vehicle. Studies indicate that such batteries could be used effectively in stationary applications like electricity storage and load-leveling. We ask that the Committee authorize a three-year program so that electric utilities and other interested parties could cost-share with DOE in demonstrating the cost-effectiveness and benefits of using "spent" EV battery packs in stationary applications.

Second, the Chairman of the House Science Committee, Sherwood Boehlert, has introduced legislation to create a program that would demonstrate a variety of electric and other alternative fuel technologies in cities across the country. This forward thinking proposal will assist in creating seamless, intermodal transportation systems in urban environments that are fueled exclusively by clean alternatives like electricity. Chairman Boehlert plans to include the "AFV Acceleration Act" as part of Science Committee’s energy package and we urge this Committee to consider incorporating this proposal in comprehensive energy legislation as well.

Third, we ask that you examine the Energy Policy Act of 1992 provisions that require governments and so-called "fuel provider" fleets, like electric and natural gas utilities, to acquire alternative fuel vehicles. The current program failed to meet the EPACT goal of reducing transportation sector petroleum use by 10%, by the year 2000. EVAA has been working with other alternative fuel groups, as well as representatives of government and commercial fleets, to identify modifications to existing law. We seek flexibility in meeting the requirements of existing law in order to better ensure that EPACT’s future petroleum displacement goal is achieved.

Finally, hydrogen could become the "fuel of choice" in this century. Our interest in hydrogen is simple. It is the fuel required to power fuel cell vehicles. This Committee will consider the reauthorization of existing hydrogen R&D legislation. As the Committee considers questions about hydrogen, about fuel cell development, about the energy needed to power our mobile society, we urge you to find ways to establish public and private partnerships to jointly address these technological challenges. The federal government can play a significant role in assuring that the vast amount of human, technical and financial resources now being spent on hydrogen and fuel cell development is optimized through integrated, cooperative programs and policies.

As you examine existing law and craft a new national energy policy, we urge you to include the programs, policies and incentives that I have outlined today to encourage the development and use of electric modes of transportation.

That concludes my formal remarks, I thank you again, for the opportunity to appear and I will be happy to answer any questions.

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