The US Government Accountability Office (GAO) has examined and reported (GAO-09-493) on the implications of implementing the government’s goal for federal agencies to use plug-in hybrid electric vehicles (EVs) when available, casting doubt on their suitability for carbon emissions reduction. Two weeks after the GAO report was released, the US Department of Energy (DOE) announced loans of US$8 billion in a government-industry partnership, that will be primarily invested by recipients Ford, Nissan and Tesla toward hybrid EVs and battery development. Although there may be unreported alternative fuel initiatives yet to be considered by DOE, such as for compressed natural gas and liquefied natural gas, the GAO report suggests the government’s emphasis on EVs to meet the target of 35 miles per gallon (mpg) by 2016 could leave some disappointed.

GAO concluded that for plug-ins to realize their full potential, electricity would need to be generated from lower-emission fuels such as nuclear and renewable energy rather than the fossil fuels used most often to generate electricity today. However, new nuclear plants and renewable energy sources can be controversial and expensive. In addition, research suggests that for plug-ins to be cost-effective relative to gasoline vehicles the price of batteries must come down significantly and gasoline prices must be high relative to electricity. Limited battery manufacturing, relatively low gasoline prices, and declining vehicle sales are listed amongst a variety of factors that could delay availability and discourage consumers. The supply of lithium for batteries also has the potential to emulate oil as a resource-dependency issue.

Will EV’s become part of the US administration’s solution for ‘next-generation’ emissions reduction instrument? GAO says more guidance is required.