Like 'taking the lead out of gasoline'

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TERESA McUSIC
The Savvy Consumer

By Sunday, most diesel fuel in this country will have been converted to a new formula that dramatically reduces pollution from diesel-fueled vehicles.

"It is being likened to taking the lead out of gasoline," said Allen Schaeffer, executive director of the Diesel Technology Forum, an industry trade group.

The new fuel, ultra-low-sulfur diesel, is just that: It contains a maximum of 15 parts per million of sulfur, just 3 percent of the previous fuel standard. The federal Environmental Protection Agency established the program in 2000.

"It's a pretty significant development," said James Kliesch, research associate at the American Council for an Energy Efficient Economy. "The most important element of the new fuel is, it will now enable automakers to design diesel engines that are much cleaner."

For consumers, that means many more diesel versions of their favorite cars and trucks -- another avenue, in addition to hybrids, for vehicles that are more efficient and less polluting than gasoline-powered vehicles.

Honda announced last month that it has developed a diesel engine that will reduce emissions to the amount produced by a gasoline engine. The company plans to introduce the engine in the U.S. within three years. Nissan and BMW have also recently announced plans for diesel versions of some of their vehicles, Schaeffer said.

Volkswagen, Mercedes-Benz and Jeep offer several diesel models now. Ford, Chevrolet, GMC and Dodge have light trucks that run on diesel.

The combination of cleaner fuel and cleaner motors should also lead to diesel vehicles that qualify for a tax credit that now goes only to hybrids, Kliesch said.

The tax credit, which ranges from $250 to $3,400, can help offset the extra cost of the cleaner diesel motors, just as it has for hybrids, Kliesch said.

Diesel motors now cost $500 to $1,000 more than their gasoline-powered counterparts, Schaeffer said.

A recent study by J.D. Power and Associates forecasts the diesel market to grow faster than the hybrid market, increasing from 3.6 percent of all vehicles sold in the U.S. this year to 9 percent by 2013. In comparison, the hybrid market is expected to climb from 1.6 percent this year to 5 percent by 2013.

But U.S. sales pale in comparison to those in Europe, where half of all vehicles sold this year are diesel, Schaeffer said.

"Fuel economy is a big deal over there, and Europeans put a greater importance on global warming," Kliesch said.

At the same time, emission standards there are not as strict as they are in the U.S., he said.

Consumers have these factors to consider when looking at alternatives to gasoline-powered engines. They should also compare diesels to hybrids:

Efficiency. Diesel engines are 20 percent to 40 percent more fuel-efficient than gasoline-powered engines, a difference that generally offsets the extra cost of the engine in three to four years, Schaeffer said.

Diesel-engine cars made up four of the EPA's 10 most fuel-efficient vehicles this year: the Volkswagen New Beetle manual and automatic versions, and VW's Jetta and Golf.

Hybrid vehicles are more efficient than diesels, usually 40 percent to 50 percent ahead of their gasoline-powered counterparts. Hybrids took five of the top 10 spots on the EPA's list, with the Honda Insight and the Toyota Prius taking the first two slots.

Pollution. While diesel vehicles emit less carbon dioxide (linked to global warming) than gasoline-powered vehicles, they still contribute significant nitrogen-oxide pollutants that lead to smog, Kliesch said.

It's too early to tell whether the new diesel motors in development will reduce emissions enough to qualify for the tax credit, but industry watchers are hopeful.

Hybrid vehicles address global warming and smog with few harmful emissions, Kliesch said.

Currently, 15 hybrid vehicles qualify for the federal tax credit with a range of $250 for the GMC Sierra Hybrid to $2,600 for the Ford Escape Hybrid.

The tax credit of five hybrid models, including the popular Toyota Prius, was reduced Oct. 1 because sales exceeded a quota built into the credit.