Articles / Fume Fighters: New York's Hybrid Taxis

Credit: Recompose/Flickr

Courts have handed defeat after defeat to New York City in its effort to replace gas-chugging cabs with fuel-efficient hybrids. The latest blow came in July, when an appellate court axed a rule that would have reduced the amount owners of taxi fleets could charge to drivers to lease non-hybrid vehicles (fleet owners had no objection to another part of the rule that allowed them to charge more to lease hybrids). The reason? Two federal environmental laws prohibit local governments from passing mileage and emissions requirements.

In spite of its legal frustrations, however, the city is teeming with hybrid cabs. About 3,820 cars – about 29 percent of the biggest taxi fleet in the nation – are hybrids or clean fuel burners. The only other city that does better percentage-wise is San Francisco, with hybrids accounting for 48 percent of its fleet (if you add in compressed natural gas cabs, the percentage of alternate fuel vehicles in SF’s fleet rises to 57). But with a much smaller fleet—a total of 1,378 cabs of which 657 were hybrids as of March 2010—San Francisco didn’t have as far to go as New York.

How New York got here, the decisions its authorities made and where they're headed now are lessons in how, and how not, to clean up a city's taxis. To speed their own green cab transformations other cities can take these four tips from New York's taxi wars: private cab owners want hybrids because they make good business sense (but owners of large fleets don't have enough reasons to make the switch); incentives may work where mandates fail; new federal laws may give cities the power to set mileage limits; and a taxi redesign, now in progress in New York, might be the green car coup that the city has sought.

You'll save money
In 2005, Eliot Saffir became the first New York cabbie to buy a hybrid. The Toyota Prius that he chose, both streamlined and pug-nosed, contrasted with the city's honking horde of broad, boat-like Ford Crown Victorias, both in appearance and in performance. Crown Vics average 18 miles per gallon in the city, while the latest Prius averages about 50 mpg.  And hybrids meet emission standards for NOx and hydrocarbons that are at least 50 percent lower those of the Crown Victoria.

Saffir explains his decision in the most pragmatic terms. “I wanted to save money on gas,” he said. He works 10 hours on the average shift, and figures that his gas savings are $25-30 each day. “I have had this car almost six years,” says Saffir, “all city taxi miles, and I haven’t had to make one repair except for normal maintenance. It’s just unbelievable the money I’m saving on this car.” His advice to other cab owners: “Do it. You'll save money.”

The other side
It may seem odd, therefore, that cabbies would oppose New York's rules that imposed mileage standards on taxis. But the fight didn't come from cabbies like Saffir, it came from the owners of large fleets who rent their cars to drivers. The Metropolitan Taxicab Board of Trade, which represents 28 of those fleets, sued the city twice since it tried to pass fuel efficiency rules and won both times. They sued, they explained, because hybrids aren't as durable, safe or comfortable as the Crown Victorias. “We're wary about the hybrids. The ones that we've seen haven't been able to cut it,” MTBOT spokesperson Michael Woloz told Smarter Cities.

In contrast to the private cab owner and driver, fleet owners don't save money with fuel efficiency. “Taxi fleets that supply the vehicle but leave the fuel costs to the driver have little incentive to put hybrids on the road,” said Luke Tonachel, vehicles analyst for the Natural Resources Defense Council. “Instead, the fleets purchase the cheapest vehicles available and amass massive spare part bins to keep them running at the bare minimum level.”  In other words, there's no money in it for them—though Tonachel notes that fleets potentially may have fewer maintenance costs.

Dealing with market barriers

One way to address these issues is by mandating performance standards, says Tonachel. NYC is supporting federal legislation to give cities the express authority to set fuel economy and greenhouse gas emissions standards for taxis so they can put the standards in place to deal with the market barriers.

Previous attempts, however, have failed: The Taxi and Limousine Commission tried passing two laws:  mandating a mileage requirement and the aforementioned reduction in lease rates for non-hybrid vehicles. The MTBOT successfully sued the city over the mandate on the grounds that it broke federal law. The mandate treads on the Clean Air Act and the Energy Policy and Conservation Act, which say that only the federal government can set fuel economy and emissions standards.

Then MTBOT won a case on the same grounds against the incentive to reduce lease rates. “My take is, had the city gone forward with these incentives in the first place, they might not have been challenged and if they had been challenged, they might not have had such a bad time,” said Kate Sinding, a senior attorney with NRDC's New York urban program.

Don't break the law – change it
“The framers of the Energy Policy and Conservation Act did not intend to prevent cities from taking responsibility for our environment,” David Yassky, commissioner and chair of the TLC, responded in a statement after the latest court ruling.

Two New York federal legislators agree. Senator Kirsten Gillibrand and Representative Jerrold Nadler, both Democrats from New York, have introduced the “Green Taxis Act” in the Senate and House (S. 1741, H.R. 3711). The bills have not gone to vote, yet, and the timing of such votes is uncertain. If enacted, however, other cities could follow New York's lead and dictate standards for taxi fuel economy and emissions.

Redesign the taxi
The city has launched a two-pronged effort to reduce gas-hog cabs. At the same time that it is trying to entice owners to buy hybrids, it has been working to design the new cars that cab owners can buy. “We're engaged in the Taxi of Tomorrow initiative that will redesign the vehicle that will serve as the New York City taxi,” TLC's Commissioner Yassky told Smarter Cities. Although legally prohibited  from discussing the details, Yassky mentioned that major manufacturers, domestic and foreign, had submitted proposals and that they would make a decision later this year.

This program is an example of how a city's procurement rules can be an incentive to automakers. When cities require efficient taxis, they create a guaranteed market for green vehicles before they hit the mainstream, Tonachel explained. That's one reason why, when Yassky's car is unveiled, other cities may do well to consider it for their streets, too.

Eyes on the goal
New York has been mired in a debate of hybrid versus Crown Victoria. But it shouldn't distract anyone from the prize. Hybrids pollute less, help cut urban smog, they're better for public health, and they reduce drivers' expenses. Private cab owners recognize that. By pioneering the effort to change the minds of fleet owners, New York may have saved other American cities some headaches.