The NYT reports:

The Environmental Protection Agency has revised its alternative-fuel conversion regulations for light and heavy-duty vehicles, making it easier for manufacturers to sell conversions that are compliant with clean-air laws. The 186-page ruling provides an exemption from a Clean Air Act prohibition against tampering when converting an engine to run on alternative fuel.

In the past, a manufacturer of alternative-fuel conversion systems was required to certify its products in the same manner that a vehicle manufacturer certified its vehicles — an expensive and difficult process. The new regulations provide a way to comply with clean-air standards through streamlined testing.

In essence, the rule change creates a graded compliance structure, depending on the age of the converted vehicle, making it easier to retrofit older vehicles. Read all about it at the EPA’s website.

The Tampa, Florida city council tomorrow will consider adopting a contract granting American Traffic Solutions (ATS) the right to issue $158 tickets at intersections. At a meeting last month, half of the council’s members supported installation while the other half opposed — forcing the idea to be reconsidered at the upcoming meeting where a member absent from the last meeting is expected to cast the deciding vote. Opponents suggested the cameras had little to do with safety.

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We’ve long struggled with finding the right balance of recall coverage here at TTAC, as the sheer volume of them makes it extremely difficult to separate the life-saving wheat from the irrelevant chaff. Now, it seems the rental car industry is tired of struggling with the same challenge and is lobbying the government for reform of the recall system. Bob Barton of the American Car Rental Association explains the problem to the NYT

We can’t determine the significance of a recall and whether a vehicle is no longer safe to operate or whether it can continue to operate and then should simply be brought in for service at some point in time. We simply want the manufacturers to instruct us when a vehicle needs to be grounded and we will absolutely comply.

Fair enough. Recalls are carried out for plenty of non-safety-critical problems. But where do you draw that line? And, more importantly, does the rental industry enjoy enough of a reputation for safety consciousness to assure customers that their calls for reform won’t result in any increased danger?

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Judges in the country’s most activist federal circuit on Thursday ruled in favor of red light camera use in Washington state. A three-judge panel of the Ninth Circuit US Court of Appeals issued an unpublished memorandum order dismissing a state law challenge to the photo fine amounts and “cost neutrality” compensation arrangements of municipalities.

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The trade war that erupted between the US and China late last summer may have cooled to an angry simmer, but its effects are once again being noticed in the automotive industry. After President Obama slapped a 35% tariff on imports of Chinese-produced tires, the Chinese government started casting around for potential objects of retaliation, and, as Bertel reported, US auto exports to China made “a good tit-for-tat.” The US imported $1.8b worth of Chinese tires in 2009, while China imported $1.1b worth of US-built cars (including transplant brands) in 2008. You shoot our dog, we’ll kill your cat.”

Now, the Chinese Ministry of Commerce has concluded its “investigation” into US auto dumping and illegal subsidies  in the Chinese market, and it just so happens to single out the two automakers who are partially owned by the US. Coincidence? Not so much. [Hat Tip: Michael Banovsky]

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An Australian company has hired kingmakers from Chicago, Illinois to prevent Texas residents from being able to decide whether or not red light cameras should be used in their community. A “grassroots” group calling itself the Texas Traffic Safety coalition filed a lawsuit to stop the city of Port Lavaca, Texas from holding a referendum on the photo enforcement program run by Melbourne-based Redflex. Although no court order was issued in the case, the city council decided not to hold the election, despite the city charter’s instruction that the council must place a qualified petition on the ballot.

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Lawmakers in four states this week advanced legislation that would, if passed, either place mild restrictions on or outright ban the use of automated ticketing machines by municipalities. The Florida state Senate Transportation Committee on Tuesday voted 4 to 2 to approve an outright prohibition on the use of red light cameras — just one year after the legislature had given in to the lobbying effort of localities in authorizing their use. Senate Bill 672 must now clear the Senate Community Affairs Committee before being considered by the full Senate.

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Texas is the last state in the nation that still imposes different speed limits on its highways depending on whether it is daytime or nighttime. Roads marked 70 MPH during the day can only be legally driven at 65 MPH when its dark. Big rig trucks must also obey specially lowered speed limits. The state House Transportation Committee yesterday filed a favorable report on legislation that would simplify the Lone Star State’s speed laws and boost the speed limit in most rural areas.

“A difference in vehicle speeds can contribute to accidents,” the House committee report explained. “HB 1353 seeks to minimize the number of accidents that can occur when cars and trucks change lanes or pass or tailgate slower-moving vehicles by removing the different, lower speed limit for heavy trucks.”

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It’s been a bad week for the Department of Energy’s Advanced Technology Vehicle Manufacturing Loan program. First, the GAO slammed the program for weak oversight and a lack of performance metrics and professional expertise, and now the Center for Public Integrity and ABC News are unwinding a web of patronage that appears to be taking advantage of the program’s many shortcomings.

The investigation centers around Steve Westly, a fundraiser who “bundled” half a million dollars in donations to the Obama campaign, only to be given a spot on the DOE’s Energy Advisory Committee. From there, the CPI report alleges, Westly was instrumental in acquiring ATVM access for Tesla, a company that Westly sat on the board of from March 2007 until December 2009. Loans were given to Tesla when Westly was still serving on the board, and his firm, The Westly Group, has made millions on the sale of Tesla stock since the firm’s IPO. And it seems that most of the DOE loan recipients have some kind of connection to one Obama fundraiser or another, like John Doerr, who backs Fisker, another ATVM loan recipient. Meanwhile, smaller firms allege that their requests for loans were simply ignored, and with the GAO knocking the program for treating applicants “inconsistently,” it seems that some kind of favoritism is afoot. But then, isn’t that how Washington works?

A new report [full PDF here] from the Government Accountability Office tears into the Department of Energy’s Advanced Technology Vehicle Manuacturing Loan (ATVML) program, the $25b “retooling loan” package that was the subject of TTAC’s first-ever Bailout Watch.

Although the loans represent about a third of the $25 billion authorized by law, the program has used 44 percent of the $7.5 billion allocated to pay credit subsidy costs, which is more than was initially anticipated. These higher credit subsidy costs were, in part, a reflection of the risky financial situation of the automotive industry at the time the loans were made. As a result of the higher credit subsidy costs, the program may be unable to loan the full $25 billion allowed by statute.

Well, no wonder GM pulled out of the program… it and Chrysler were asking for more than the remainder of $25b would have supported anyway, so if there is actually less than $25b to be spent, the high road away from the “Government Motors” image makes a lot more sense. But a lack of available funding isn’t the only problem with the program…

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Back in 1976, the Italian automaker Fiat had been badly battered by a global energy crisis and the resulting malaise infecting the global auto industry. In what Time Magazine described at the time as “a devastatingly ironic example of petropower,” Col. Muammar Gaddafi instructed his Libyan Arab Foreign Bank to invest some $415m into the Italian automaker, giving it a stake that would eventually grow to some 14 percent of the firm’s equity.

By 1986, Fiat’s Libyan stakeholders were becoming more trouble than they were worth. In the wake of the Lockerbie bombings, the US introduced sanctions on Libya, and Fiat’s Libyan connection left its attempts to bid for US military contracts (particularly those related to Ronald Reagan’s Strategic Defense Initiative) dead on arrival. As a result, Fiat and its shareholders bought back the entire 14 percent Libyan stake in the firm, presenting the Libyan Arab Foreign Bank-controlled Banca UBAE with a $3.1b check. And, according to what a Fiat spokesperson told us yesterday, that is where the story ends. But thanks to the now-ubiquitous Wikileaks, we have found that this story may in fact go farther than that. In fact, as the evidence stands right now, either the US State Department is working with bad information (which major news sources have yet to correct), or Fiat is lying about its ties to the embattled Gaddafi regime.

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As I write this, President Obama and his top environmental and auto regulators are gathering for a speech on “American energy security” at Georgetown University. In this speech, the President is expected to make the case for ramped-up CAFE standards, EV subsidies and other transportation-related energy efficiency goals, and based on his politically pragmatic framing of the issue as being about “energy security” rather than environmental prerogatives, it seems that he’s serious about creating new policy rather than merely playing to his base. But, according to the Detroit News, the automakers are not going to take increased regulation sitting down, but appear to be gearing up for the first major legislative clash over automotive regulation since the green-tinged bailout. Automakers have begun to push back on both fuel economy and stalled safety legislation, explains Alliance of Automotive Manufacturer’s spokesperson Gloria Bergquist.

Automakers have always supported legislation and regulations that are driven by data and sound science, and there have been some examples where there was more wishful thinking and targets being selected that weren’t based on the data. So we have become more outspoken on the need for data to drive policy decisions.

Of course, automakers haven’t always supported regulation of their industry… but this is clearly a change in tone from the cowed industry that collapsed into the government’s arms just a few short years ago. A battle is brewing, so let’s look at some of the flashpoints in this forthcoming conflict.

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Red light cameras continue to generate controversy in a pair of Texas towns located off Galveston Bay. Last week, Baytown responded to the lawsuit filed by photo enforcement vendor American Traffic Solutions (ATS) in Harris County court on St. Valentine’s Day alleging breach of contract. The quarrel between the two parties began when voters overruled the city council’s decision to implement automated ticketing machines by imposing a requirement that police personally witness each alleged violation. ATS decided it would not earn sufficient revenue under such an arrangement and pulled out.

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The initiative effort to give voters a say in whether red light cameras and speed cameras are used has spread to a fifth city in Washington state. The group BanCams.com began circulating petitions in Redmond, kicking off an effort on Saturday to gather the 3845 signatures required to put the measure on the ballot. The referendum petition follows the language used in Bellingham, Longview, Monroe and Wenatchee where signatures have been gathered since January.

“The city of Redmond and for-profit companies contracted by the city of Redmond may not install or use automatic ticketing cameras to impose fines from camera surveillance unless such a system is approved by a majority vote of the city council and a majority vote of the people at an election,” Redmond Initiative Number One states.

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A Grand Jury in Napa, California last month issued a report calling for reform and refunds in the city’s red light camera program. The jurors uncovered yellow light timing discrepancies and an unusual dependence upon right-turn tickets to generate revenue at the most productive intersection. The Australian vendor Redflex Traffic Systems began issuing tickets in May 2009, and citations at four intersections now cost $475 each. So far, 9278 tickets worth $4 million have been mailed — 3789 of which were sent to vehicle owners that turned right on red.

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