Environmental Valuation & Cost-Benefit News

Mayor Michael R. Bloomberg today announced that the Taxi and Limousine Commission (TLC) will require black cars that service corporate clients to increase fuel efficiency standards to a level currently achievable only by using hybrid technology. The plan to improve the fuel efficiency of the 10,000 black car fleet was envisioned as part of the Mayor's PlaNYC 2030, a comprehensive set of 127 initiatives aimed at reducing New York's carbon emissions and meeting the challenges of the City's growing population. In December, the TLC voted unanimously to approve regulations that will require all yellow taxis licensed after October 1, 2008, to meet fuel efficiency standards currently only achievable through the use of hybrid technology. Black cars currently release 272,000 tons of CO2 equivalents annually, which make up 2% of the City's transportation related emissions. Under the new standards, emissions from black cars will be cut in half. To help drivers finance the down payment associated with buying a new car, the City has worked with partners in the financial sector, auto dealers, and black car fleets to develop a range of solutions that will finance the higher down payment.

Approximately 10,000 black cars operate through bases that typically contract with corporate clients. Many black cars line up, idling in front of office buildings in Midtown and Lower Manhattan awaiting customers. Hybrid automobiles switch to battery power while idling, significantly reducing emissions of both carbon dioxide and dangerous pollutants.

Currently, black cars average 12-15 mph. The TLC will require fuel efficiency standards for new licensed black car vehicles of 25mpg in 2009 and 30mpg in 2010. Also included in the proposed rule change is a requirement for vehicle retirement. The TLC currently does not set a vehicle retirement age for for-hire vehicles like it does for the yellow taxis. There will be a retirement phase-in cycle that will ensure almost all vehicles associated with black car bases are more fuel-efficient by 2013. Black cars currently contribute 272,000 tons of CO2 equivalents annually, which make up 2% of the City's transportation related emissions. Under the new standards, emissions from black cars will be cut in half.

Hybrid cars will save owner-operator drivers upwards of $5,000 per year in gasoline expenses - approximately 50% of their current fuel costs. These savings will allow drivers to cover, in just one year, the additional cost of purchasing a new hybrid car over the currently used Lincoln Town Car. As part of PlaNYC, the City proposed a State law to waive the City portion of the sales tax for vehicles that meet the EPA Elite standards for energy efficient vehicles, and the City is looking forward to working with State Legislators this year to enact that proposal. The City is also working with the Partnership for New York City and several financial institutions on a program to provide financing.

In addition to the Investment Fund spearheaded by the Partnership, SmartTransportation.org and Deutsche Bank, Lehman Brothers has partnered with Executive Transportation Group (ETG), the largest black car supplier in New York, to jointly fund a first-of-its-kind lending company, Green Car Funding Corp. to provide low interest loans to ETG black car owner operators to purchase new hybrid vehicles.

Through extensive consultation with users, fleets, and drivers - including demonstrations of the new vehicle types - the Mayor's Office of Long-term Planning and Sustainability and the TLC have identified several efficient vehicle models that will have widespread acceptance, including: Toyota Camry Hybrid, 33mpg (city); Toyota Highlander Hybrid, 27mpg (city); Nissan Altima Hybrid, 35 mpg (city); and Mercury Mariner Hybrid FWD, 34 mpg (city). In addition, other models may include: Lexus Rx400h AWD, Ford Escape Hybrid AWD, and Toyota Prius. Outreach to dealerships indicates that there will be an adequate supply of vehicles. In addition, two networks of dealers of the most promising vehicles - Best Ford Taxi and Hudson Toyota / Penske Automotive Group - have committed to making financing packages available to black car drivers. TLC will not penalize drivers who show proof that they have ordered a vehicle that meets the standard, but the vehicle has not yet arrived.

The City of New York www.NYC.gov
Press Release PR-067-08; February 27, 2008
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