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Vehicle
Efficiency Incentive Act
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Downloadable Files
RI Transportation Working Group Presentation 10-30-03
RI Transportation Working Group Presentation 12-19-03
The Vehicle Efficiency Incentive Act is designed to decrease greenhouse gas emissions by increasing the energy efficiency of the fleet of motor vehicles operating in Rhode Island. The act would impose fees on consumers who purchase vehicles that emit large amounts of carbon dioxide per mile traveled and provide rebates for the purchase of vehicles with lower emissions. (Carbon dioxide is by far the most important greenhouse gas in vehicle exhaust.) Because emissions are directly proportional to gasoline consumption, fuel economy data compiled by the federal government provides all information needed to assign dollar amounts to each vehicle once a "zero point" and "slope" are determined.
Specification of these two parameters is probably the most complex problem in designing the "feebate" plan. The feebate amount for a particular vehicle is calculated by (1) subtracting the number of gallons used by that vehicle to travel one mile from the amount that would be used by a vehicle at the chosen zero point and then (2) multiplying that difference by the chosen slope. The choice of a specific slope and zero point will determine the degree to which the program is effective at reducing emissions, politically acceptable, and appropriately revenue neutral. Several spreadsheets that facilitate consideration of the consequences of different choices of slope and zero point have been developed and made available.
Also under consideration are potential impacts on specific groups (such as business owners and large families), and administrative issues (how money would actually be transferred). These issues and many others have been discussed in separate meetings with representatives of the American Automobile Association, the Conservation Law Foundation, the Department of Environmental Management, the Division of Motor Vehicles, and DEM's Business Roundtable. It is hoped that thorough and open consideration of all relevant concerns will facilitate eventually passage and smooth implementation of a Vehicle Efficiency Incentive Act in Rhode Island.
For a description of work previously done, visit the 2002 VEIA Brown Group website by clicking here . To learn more about our particular contribution to this process scroll down or click on the links in the top left menu.
Four Excel spreadsheets have been created to facilitate analysis of the Vehicle Efficiency Incentive Act. Clicking on each link will download an interactive Excel spreadsheet.
(2003 VEIA) See revenue projections based on actual registrations of model year 2002 vehicles for different rate structures. Graphs and examples also illustrate other general characteristics of the VEIA and allow additional comparisons. Detailed instructions are included.
(Vehicle List) This spreadsheet shows the feebate amount for over one hundred specific vehicles. The slope and zero point can be adjusted to facilitate comparisons of the effects. Includes instructions.
(GHG Reduction Model) If you could decide exactly what cars are purchased in Rhode Island in each of the next fifteen years, how would you best use this power to achieve a given level of reduction in greenhouse gas emissions? This spreadsheet allows you to explore this question. Includes instructions.
(2002 VEIA) A somewhat different VEIA, based directly on EPA fuel economy, was proposed in 2002. This spreadsheet describes that version and explains the importance of basing incentives on fuel consumption instead of fuel economy.
(Car Comparisons) This spreadsheet contains comparisons of four functionally similar (but not equivalent) vehicles. Detailed are factors that contribute to purchase decisions including list price, lifetime gas price, tons of carbon emission, and VEIA assessment. This spreadsheet allows for simultaneous display of different VEIA schedules.
(Revenue Calculator) This spreadsheet can help to test the degree to which changes in purchasing behavior and different choices of zero point and slope interact to determine the amount of revenue collected by the VEIA. However, this spreadsheet includes spreadsheet assumptions, but does not make predictions about consumer behavior.
Links
The Rhode Island Greenhouse Gas Process