Environmental Protection Agency

           Fuel Economy Label


           Expert Panel Report
&EPA
United States
Environmental Protection
Agency

-------
                  Environmental Protection Agency
                          Fuel Economy Label

                           Expert Panel Report
                           Office of Transportation and Air Quality
                           U.S. Environmental Protection Agency

                                      and

                         National Highway Traffic Safety Administration
                          United States Department of Transportation
                                 Prepared for EPA by
                                    PRR, Inc.

                              EPA Contract No. GS-23F-0364P
                                  Task Order 0001
&EPA
United States
Environmental Protection
Agency
€1
%\ft7
EPA-420-R-10-908
August 2010

-------
     Topics
     Introduction	3
        Background	3
        Methodology	5
     Key Findings	9
        Strategic Insights	9
        Messaging	12
        Outreach Strategies	13
        Label Design and Content	15
     Appendices	19
        Appendix A: Participants & Attendees	19
        Appendix B: Agenda	21
        Appendix C: Label Design Concepts Shared with Panel	23
        Appendix D: Examples of Technology Impacts on Label Design 24
        Appendix £.- PowerPoint Information Used During the Meeting. 25
        Appendix F-. Advance Materials Sent to Participants	41
Expert Panel Report

-------
EPA Fuel Economy Label Redesign

-------
        ntroduction
      Background

      In  2006, The Environmental Protection  Agency (EPA)  updated
      how the city and highway fuel economy values are calculated to
      better reflect typical real-world driving patterns and provide more
      realistic fuel economy estimates. In addition, EPA redesigned the
      fuel economy label to make it more informative for consumers.
      The redesigned label more prominently featured annual fuel cost
      information, provided contemporary and easy-to-use graphics for
      comparing the fuel economy of different vehicles, used clearer text,
      and included a website reference to www.fueleconomy.gov, which
      provided additional information.

      EPA and the National Highway Traffic Safety  Administration
      (NHTSA)  are now initiating a  new rulemaking to ensure that
      American  consumers  continue  to have  the  most  accurate,
      meaningful and useful information, as well as an understanding of
      how the labeled vehicle's emissions impacts the environment. With
      the introduction of advanced technology vehicles on the market,
      the agencies must provide metrics that are relevant and useful for
      vehicles such as Electric Vehicles, Extended Range Electric Vehicles
      and Plug-in Hybrid Electric Vehicles.

      To help inform the creation of the new label, EPA engaged PRR,
      Inc. to work with them in the design and implementation of several
      information gathering protocols including:

             Literature review
             Focus groups (in three phases, including pre-group online
             surveys)
             Expert panel
             Online survey of new vehicle buyers and prospective buyers
Expert Panel Report

-------
Each of the above methodologies has its strengths and weaknesses.
It is for this  reason that a combination of information gathering
tools was used. This report  provides an overview of the Expert
Panel discussion which built on the information gathered from the
literature review and the focus groups. The panel was composed of
hand-picked,  third party thought leaders. The leaders were selected
because of their unique  history of creating dramatic shifts in social
change and influencing  consumers'  product preferences over short
periods of time.
                                            EPA Fuel Economy Label Redesign

-------
       Methodology

      Experts panels are groups  of exceptional  individuals  brought
      together to explore a  given question. They are  intentionally
      independent from special interest  influence  and have no direct
      authority. Their expertise is used to provide  recommendations to
      those with the authority to act. The intent behind selecting and
      convening an expert panel is to assemble the "best and brightest"
      individuals who  can  provide the  objective  viewpoint of those
      outside the usual process.

      Many  federal  agencies have a history of using expert panels to
      support a variety of initiatives. Some examples include:

              EPA: To monitor the situation for workers and residents
              impacted  by the collapse of the World Trade Center

              NHTSA: To study the issue of trunk entrapments

              Federal Highway Administration (FHWA):
              To review previous research results for inclusion in the
              Interactive Highway Safety Design Model (IHSDM)

              U.S. Government Accountability Office (GAO):
              To discuss how to  conceptualize, measure, improve, and
              use information about the benefits and costs of highway
              and transit investments

              Department of Health and Human  Services (HHS):
              To evaluate H1N1 PSA submissions

              Centers for Disease Control and Prevention (CDC):
              To address concerns about barriers for older adults to
              understand and use health information

              Federal Emergency Management Agency (FEMA):
              To establish a methodology, consistent with industry
              practices, for estimating the cost of large projects

              Department of Energy (DOE):
              To forecast future  demand for medical isotopes
Expert Panel Report

-------
PRR recommended the strategy of using an expert panel following
the success  of  an expert panel they convened  on behalf of the
Centers for Disease Control and Prevention (CDC). CDC wanted
to  identify  best  practices for  delivering health  messages  to
adolescents. Following one of the most extensive literature searches
on the subject, the expert panel was assembled to help validate the
findings while also bringing a  non-academic and, in some cases, a
commercial approach to changing behavior.

In  order  to recruit  individuals who  could provide  a diverse
perspective  to  EPA  and  NHTSA  as they  redesigned  the fuel
economy label,  desirable sectors including products, campaigns,
organizations,  and services were identified.  A  prospect  list  of
organizations within  each  sector was generated using the criteria
that the product/service or educational campaign needed to:

        Impact a significant percentage of the population

        Demonstrate  staying power

        Bring about change quickly

Individuals who were key to the success  of these initiatives were
then identified. The decision was made to omit individuals  with
direct experience with the auto industry. The intent was to explore
best practices from other industries and understand how  they
might  apply to  this challenge. This list was then prioritized for
recruitment.

Rather than recruit individuals based on their current employment
position, it was critical to recruit those individuals who were in roles
that were critical to the  success of these  respective efforts at the
time they were being planned and implemented. PRR did extensive
research to identify and then corroborate these individuals. Once the
individuals were identified, they were located without regard to any
current association with the activity that had been used to identify
them. Individuals were contacted by using several methods including
third party advocates,  phone calls, e-mail and social media.
                                           EPA Fuel Economy Label Redesign

-------
      The panel was limited to no more than 10 participants in order to
      ensure full participation. Nine expert panelists were recruited to
      participate in the six hour discussion. The group was convened on
      Wednesday, June 9, 2010, at EPA headquarters in Washington, DC.

      In advance of the discussion, participants were provided a draft
      agenda,  a brief overview of the project, and initial research and
      focus group findings.  Panelists  were asked to  come prepared to
      discuss how they would recommend that the EPA increase  the
      value of, and preference for, more efficient vehicles.

      Following opening comments from Margo Oge, Director of EPA's
      Office of Transportation and Air Quality, the group was reminded
      of the two primary goals for the day:

         1.   Identify opportunities to increase the  priority  of energy
              efficiency in the vehicle purchase process

         2.   Provide feedback on working fuel economy label designs

      Participants received a very  brief project background that included
      statistics related to petroleum consumption, transportation's impact
      on air quality, and  top-level findings  from the previous research
      activities.
Expert Panel Report

-------
EPA Fuel Economy Label Redesign

-------
      Key   Findings
      Strategic  Insights
      The group was asked to provide general observations and thoughts
      that could help inform and guide the development of a national
      outreach strategy and  the next steps in the label design process.
      Paraphrased comments offered by panel members are also provided.

      The group offered the following eleven key observations and suggestions:

         1.   Keep it simple.

            •  We all have complicated stuff going on in our heads
               and we yearn for simplicity.

            •  We need someone to make it easy for us. No matter
               how smart we are.

            •  We think of simple in this way: Fewer, bigger,  better.
               Do fewer things better.

         2.   Consumers don't act on details.

            •  Consumers don't act on details. No matter what our
               background, we act on simple impulsive things vs. long
               term analysis.

         3.   Purchasing a car is an emotional decision-appeal to emotions.

            •  Purchasing a  car is an emotional decision.

            •  People want a relationship with their car.

            •  Young people want to change the  world and  feel
               empowered to do so.
Expert Panel Report

-------
                                           4.   Focus on the low-hanging fruit first.

                                                •  It's tempting to develop something for the 'hardest
                                                   converts.' I think you should hit up the low hanging
                                                   fruit - the already engaged.

                                                •  Focus on the low-hanging fruit, those who are mostly
                                                   there. Build on that to make them your ambassadors.
                                                   People are influenced by peer pressure.

                                           5.   It's about owning the change - be a change leader.

                                                •  When  MTV moved away from  speaking  directly  to
                                                   terror and spoke more about action and the benefits of
                                                   what change can actually do - we saw a shift.

                                                •  People want to change. It's about owning the change -
                                                   be a change leader.

                                           6.   You can have a great product that will fail if it's not sexy.

                                                •  Apple can motivate people to  spend more money on a
                                                   product.

                                                •  You could have a product that is  very strong and
                                                   amazing, but if it is not sexy it will fail.

                                           7.   Target younger individuals.

                                                •  Focus on younger people and  build on that base.

                                                •  Young people are purchasers  and will influence older
                                                   family members.

                                           8.   Campaigns must have a human face.

                                                •  You need a real human as the  face of the campaign.

                                                •  Apple uses Steve jobs, Craigslist has Craig. It needs to
                                                   be people we can relate to, don't use people like Ed
                                                   Eegley, Jr.

                                           9.   If your product is not good enough to inspire people  to
                                                work for you then it will never work.

                                                •  With the Dove campaign...we let people come to their
                                                   own conclusion.
10                                                                                EPA Fuel Economy Label Redesign

-------
              •   People are more influenced by peer pressure.

              •   You can dramatize their (car buyers) impacts. They can
                  be the champions.

         10.  Be sensitive to your audience.

              •   People will not invest a lot of time reading.

              •   Remember the label is seen through a potential tinted
                  window while standing several feet from the window.

              •   Many individuals  do not speak English or have literacy
                  challenges.

         11.  Use the opportunities of relevant news events to demonstrate
              how personal choices  can contribute to larger impacts (i.e.,
              gulf oil disaster).

              •   When  I  was  at   MTV,  we were  trying  to do  an
                  environmental campaign. Hurricane Katrina occurred
                  and young people took this  as the result from climate
                  change. When MTV moved from speaking to terror/
                  climate/horrific change and showed benefits of what
                  individual actions can actual do - we saw a shift.

              •   At MTV the motto was  'Never waste a good crisis!
                  Oil is a direct link to cars and driving. There is a great
                  opportunity to use this to shift thinking.

      Throughout the discussion, the Expert Panel encouraged the agencies
      to find ways to "make it personal," "make it emotional," "create
      opportunities  for  ongoing  dialogue  and  engagement."  Panelists
      indicated that images and words must be compelling to the intended
      audience and that the way to achieve  this is through personal,
      emotional, and sustained engagement. A  specific suggestion was to
      encourage the auto industry to  further advance vehicle technology by
      providing the driver real-time/interactive information measuring their
      consumption, vehicle range, and efficiency. It was suggested that this
      information be expanded (into a game-like interaction) to encourage
      drivers to benchmark or track their own performance(s) and compare
      against their past driving, set personal goals, and even compete against
      other drivers. This approach would provide ongoing opportunities to
      engage  drivers, remain relevant, and motivate them to incorporate
      better driving habits.
Expert Panel Report                                                                                              11

-------
                                         Messaging

                                         Participants were asked to respond to the question: "What messages
                                         will overcome current barriers/shift priorities and increase perceived
                                         value and preference for fuel efficiency?"

                                         The responses remained very consistent with the strategic guidance
                                         provided earlier and the Expert Panel reached a general consensus.

                                            1.   Address how the consumer will benefit from making this
                                                decision, or in other words  "what's in it for me?"  The
                                                message should speak directly to how making this decision
                                                could improve their lives.

                                            2.   Talk about savings (over five years). Be explicit. We  talk
                                                about  the  cost of buying and operating  vehicles. Help
                                                individuals understand what they will  save  by buying a
                                                more efficient vehicle.

                                            3.   Do not use technical jargon. Using words  that reflect
                                                consumer-friendly vernacular can be less intimidating.

                                            4.   Use relevant events (i.e., gulf oil disaster), include strong
                                                images  to help  individuals recognize the potential impacts
                                                of their decisions. Use the events to leverage the message.

                                            5.   Explain how they can make things better. If the difference
                                                is intangible, it's too hard for the consumer to sway from
                                                routine. Provide fewer clear messages/images to empower
                                                individuals to feel that their choices will in  fact make a
                                                difference.

                                            6.   Make it relevant to them. Some people see hybrids as  elite
                                                status  symbols of a "group" they are not interested in
                                                belonging  to. They think "Ed Begley Jr." when they think
                                                of a hybrid.

                                         Panelists  offered suggestions of specific types  of messages  that
                                         could be  used including:

                                                Go Green.  Get  Green.
                                                Do it for your kids.
                                                It's Simple  - We simply have to do this (why we need to do
                                                this). It's simple to do.
12                                                                                  EPA Fuel Economy Label Redesign

-------
      A portion of the panelists also recommended engaging audiences
      through the use of shame. This segment of the panelists believed
      shame to be a strong motivator in evoking a behavior shift. Such
      methods would include showing emotional images (i.e., BP oil spill
      results in  birds covered in oil). Messages that reflected  a shame
      approach included:

              Don't fail.
              Don't be a jerk, save the environment and save money at
              the same time.
      Outreach Strategies

      After receiving the  above guidance regarding overall  strategic
      approaches and recommended types of messaging, the group was
      asked to provide thoughts on what types of outreach strategies
      would best deliver these messages.

      Without exception, the panelists endorsed the following suggested
      tactical  approaches:

         1.   Utilize  "crowdsourcing."  Crowdsourcing is  the act of
              outsourcing  to a  large group  of people or  community
              through an open call. Tapping into the collective intelligence
              of the public will innately provide a deeper  insight into
              what consumers really want.

              •   Each  participant  shared their experience(s) with the
                 success  of this approach.  From Dove launching the
                 most  successful viral campaign on "real beauty" and
                 Zappos  having demonstrated sales in excess  of $1
                 billion with no marketing department, to the Verb
                 campaign  that  had  young  people inspiring  each
                 other to  exercise. Pandora has 50 million users while
                 spending approximately $350,000 on marketing when
                 the site  was  launched. As  one panelist commented,
                 "There are tens of thousands  of people who will do
                 communication for you. Your job is to harness them."

              •   Many of the  panelists  volunteered  to crowdsource
                 initial drafts and ideas within their channels.
Expert Panel Report                                                                                           13

-------
                                           2.   Launch an "apps" competition. Apps is an abbreviation
                                                for applications used by smartphones and can directly link
                                                users to specific programs or websites.

                                                •  Without knowledge that the agencies have
                                                   already  planned to introduce QR  codes
                                                   on  the  Fuel  Economy  label, the group
                                                   suggested that these codes be added.

                                                •  They   further   suggested   that   the  power   of
                                                   entrepreneurship and social  marketing be  unleashed
                                                   by introducing  an  "apps" competition to  encourage
                                                   the development of a usable consumer tool, while also
                                                   generating increased awareness.

                                           3.   Use EPA's limited budget to buy an easy to remember URL.
                                                This is crucial.

                                                •  Participants suggested that the  EPA acquire a  URL
                                                   such  as "simple.com"  or  "itsimple.com."  They
                                                   suggested that not only would such a URL  be easy to
                                                   remember, it would also provide a consistent message
                                                   platform for messages such as;  "Getting information
                                                   is simple," "Doing the right thing is  simple," "Picking
                                                   the most efficient vehicle is simple." They felt that the
                                                   combination of the "simple" URL, the utilization of the
                                                   QR code, and crowdsourcing (definition noted above)
                                                   outreach would  effectively drive people to the website.

                                           4.   Bring together the top 10 foundations and ask them to  do
                                                it/fund it for you.

                                                •  Recognizing that the agencies have  an exceptionally
                                                   small budget for this effort (made even more dramatic
                                                   when compared to  the budgets that the private sector
                                                   has to  promote their  products) provoked  the  panel
                                                   to suggest  contacting foundations  with compatible
                                                   missions and asking them to join together to help fund
                                                   an outreach effort.
14                                                                                 EPA Fuel Economy Label Redesign

-------
         5.   Have a checklist, not a brochure, for dealers (10 musts you
              need to communicate).

              •   When panelists received a copy  of the  current Fuel
                  Economy  Guide they  expressed  concerns that the
                  public probably didn't  know it was available, didn't
                  access it if they did know it was available, and would
                  not respond  well to it in the current format. Instead,
                  they recommended that dealers distribute a one-page
                  checklist, which would allow the agencies to deliver
                  the top 10 points that could  not  (and  should  not) be
                  included on the label. It also would ensure that even
                  if  individuals did not utilize  the website, they would
                  receive this information. It was also suggested that, if
                  possible, distribution of this document  be mandatory.

         6.   Utilize us (panelists) to put  it on our blogs and get public
              input, then leverage that for the release.

              •   Panelists repeatedly offered to utilize  their networks
                  to help the agencies either receive public comment or
                  to help launch any of the initiatives discussed by them.
                  They also felt that providing the public  an opportunity
                  to share their comments would have significant value.
                  It  would provide insight into the acceptability of these
                  concepts, engage consumers in a meaningful dialogue,
                  and allow for ongoing dialogue and social networking.


       Label Design  and Content

      A significant amount of time was allocated to discussing the fuel
      economy label design. At the time of the Expert Panel meeting, label
      designs were going through daily revisions as  dictated  by market
      research results and internal agency reviews. The most current EPA/
      NHTSA drafts as seen in Appendix C were presented to the group. To
      help understand the current design options and  the challenges  faced
      by new and emerging technologies, the group reviewed several fuel
      economy label design options that were guided by the focus group
      process. The first demonstrated the  three  design approaches being
      considered for gasoline vehicles. The second graphic contained two
      design approaches for Plug-in Hybrid Electric Vehicles (PHEV). This
      was  done to help illustrate the complexity of information that might
      be required and had been requested by focus group participants.
Expert Panel Report
15

-------

                                         Comments from the group fell into the following five categories. In
                                         each of these categories the panelists reached a consensus.
                                            1.   Create a single metric and give it significant prominence
                                                 on the label.

                                                 This was the highest priority recommendation provided by the
                                                 group. Consensus was strong regarding the recommendation
                                                 of using a  single, bold alphabet-based "grade" that would
                                                 dominate the label with any other legally required information
                                                 being provided at the bottom of the label and in such a way as
                                                 not to compete with the grade.

                                                 The group discussed whether a metric should be developed
                                                 to compare all vehicles or vehicles in a particular class.
                                                 There was some concern that if one metric is used to cover
                                                 all vehicles, a  specific class of vehicle might always get a
                                                 low grade. When the group was informed that there are
                                                 currently four SUVs that  made the top 10  fuel economy
                                                 list, they felt this concern might not be true. They also said
                                                 that many  individuals have  specific needs that more fuel-
                                                 efficient vehicles might not meet (e.g., the need to haul large
                                                 quantities of people  or goods)  and that these individuals
                                                 (as demonstrated in the focus groups) would still purchase
                                                 the vehicle that matched  their  needs. The group did feel
                                                 that the grading  system could still be a motivator, as a
                                                 person may look presently or in the future for the vehicle
                                                 in their  desired class with the best grade.

                                                 Another suggestion was to  use a  single metric  like New
                                                 York City and Los Angeles restaurant labels. They require
                                                 all restaurants to place a label in the  window that has an
                                                 A, B, or C rating that reflects how they were graded for
                                                 kitchen  cleanliness.  This  letter/grade approach will  be
                                                 intuitive for most consumers.

                                            2.   Reactions  to current label  designs  were not  favorable.
                                                 Comments included:

                                                 •   These were not 'designed' they were 'negotiated.'

                                                 •   We  reject the presentation  of the design. Be clear, we
                                                     are not rejecting the information.
16
EPA Fuel Economy Label Redesign

-------
              •  I would be afraid of this label because it is just not
                 friendly looking.

              •  No idea what the two environmental areas on the draft
                 labels mean and don't care.

              It needs to be simple.

              •  Remember the reality that people will view the labels
                 in a very short time.

              •  There is  a  point where people cannot  process that
                 amount of information.

              The group also pointed out that change of this significance
              is usually met with criticism - as was true with every Apple
              product released, that eventually was held  up as the gold
              standard  for usefulness and innovation.

              •  If the label does not elicit controversy you have missed
                 the mark and won't foster social change. Embrace the
                 controversy this will cause.

         4.   Demonstrate benefits that are relevant and motivating.

              •  The current label designs demonstrate costs. It would
                 be better if they could demonstrate savings which is a
                 very strong motivator.

         5.   Provide other information in other ways.

              •  The consensus was to keep the label as clean and simple
                 as possible and make other more detailed information
                 available to individuals through resources such as the
                 website and dealership materials.

              •  The group  also suggested placing specific, required
                 information in a less prominent position on  the label,
                 perhaps in the lower half or on the back, using smaller
                 fonts.

              •  Secure a URL such as "simple.com" or "Itssimple.com."
                 Include a QR code (smartphone code).
Expert Panel Report                                                                                            17

-------
                                                   •   Create a 10-point checklist for dealer distribution.

                                                   •   Have an "App" contest to create additional opportunities
                                                       for individuals to seek and obtain information.

                                                   •   Create  opportunities  for individuals to engage  with
                                                       each other to share experiences.
18
EPA Fuel Economy Label Redesign

-------
      Appendices
      Appendix A:  Participants & Attendees
                      Advisor, MyArtspace.com
                      Previously iPod Product Marketing Manager

                      Senior Communications Marketing Manager, Unilever
                      Responsible for the Dove Campaign for Real Beauty

                      Director of Online Marketing, Zappos
                      Major role in growing company from six employees to one
                      with 1,300 employees and annual sales over $1.2 billion

                      Leads the Pandora product organization
                      Responsible for product management, user
                      interface design and software development and
                      network operations
      Dr. Cheryl Healton President and Chief Executive Officer, Legacy
                      Guides the national youth tobacco prevention
                      counter-marketing campaign, truth®
Erikka Arone
Stacie Bright
Matt Burchard
Tom Conrad
      Craig Newmark
      Ian Rowe
      Fred Seibert
                 Founder, craigslist.org
                 Also works with a wide range of groups including
                 Wikipedia, and the Sunlight Foundation

                 Bill and Melinda Gates Foundation,
                 Former Deputy Director and former Senior Vice President
                 of Strategic Partnerships and Public Affairs for MTV

                 President & Executive Producer, Frederator Studios
                 Helped create MTV, Nickelodeon and VH-1. Branded
                 MTV with the iconic logo and "I Want My MTV" theme
      Faye L. Wong, MPH Chief of the Program Services Branch in the
                      CDC's Division of Cancer Prevention and Control
                      Manages the National Breast and Cervical Cancer
                      Early Detection Program.
                      Former Director of the VERB campaign
      Mike Rosen
                 Managing Principal, PRR
                 (Facilitator)
Expert Panel Report
                                                                                        19

-------
                                       Subject Matter Experts,  Observers and Consultants

                                       Lucie Audette    Environmental Protection Agency (EPA), Office
                                                        of Transportation & Air Quality (OTAQ)

                                       Susan Burke      American Association for the Advancement of
                                                        Science (AAAS) Science & Technology Policy
                                                        Fellow, EPA, OTAQ

                                       David Cohen     EPA, Office of Public Affairs

                                       Justin Cohen     EPA, OTAQ

                                       Kil-Jae Hong     Department of Transportation (DOT), National
                                                        Highway Traffic Safety Administration
                                                        (NHTSA)

                                       Janet Hopson    Oak Ridge National Laboratory, National
                                                        Transportation Research Center

                                       Kristin Kenausis  EPA, OTAQ

                                       Susan McMeen   DOT, NHTSA

                                       Rachel Nathan   PRR, Inc.

                                       Denise Walz      PRR, Inc.
20
EPA Fuel Economy Label Redesign

-------
      Appendix  B: Agenda

      Agenda

      Objectives:
         I.    Identify opportunities to increase the priority of energy
              efficiency in the vehicle purchase process

         II.   Obtain feedback on working label designs

      Schedule

      8:45 - 9:00    Coffee and refreshments available

      9:00-9:15    Introductions

      9:15-9:30    Welcome

      9:30 - 9:45    Background and meeting goals

      9:45 - 10:15   Research review and feedback
                     Purpose: Identify any potential concerns raised by
                     the research. Identify insights and lessons learned
                     from research and implementation experiences of
                     participants.

      10:15-10:30  Break

      10:30-11:15  Messages
                     Purpose: Identify messages that will help increase
                     perceived value and preference for fuel efficiency.

      11:15-12:00  Outreach strategies
                     Purpose: Identify outreach strategies to deliver key
                     messages to vehicle purchasers and influencers.

      12:00 - 1:00   Working lunch: Open discussion between
                     observers (staff from US Environmental
                     Protection Agency, National Highway Traffic
                     Safety Administration, Department of Energy)
                     and panelists
                     Purpose: Probe specific issues and comments that
                     were raised during morning facilitated discussion.
Expert Panel Report                                                                                           21

-------
                                         1:00-1:45    Label design feedback
                                                        Purpose: Provide specific feedback on working
                                                        label designs- including design, wording,
                                                        prominence, and positioning.

                                         1:45-2:00    Break

                                         2:00 - 2:55    Open discussion between observers (staff
                                                        from US Environmental Protection Agency,
                                                        National Highway Traffic Safety Administration,
                                                        Department of Energy) and panelists
                                                        Purpose: Probe specific issues and comments
                                                        that were raised during the afternoon facilitated
                                                        discussion.

                                         2:55 - 3:00     Final comments and adjourn
22                                                                                  EPA Fuel Economy Label Redesign

-------
     Appendix C:  Label  Design Concepts
     Shared with  Panel
       A1a
             F«i«l Economy A Gf*«nhou«* Gat Rtbng
                     *****
                    MPO
                       32
                Consumption
                   3Q gfllerat UM^
                   . W mt+iy tOQ mU«
                                          i ' .' ...... . I I | ' .l.i ,•;
                                            • . . t " * •*
                                            000
                                            •MApMMQ
     B1a
                     Fu«l Economy and
                     Enrvitonrrxmal Companion*
              »26
           MPG          Annual Fuel Colt
    __-,_;.iw 22  32
    rv"*"-
    •* • ^ Vlc»i ,mm4 ffm^ 1C
S1,641
            Howr Thi* Vehicle Compore^

                     -i~Vr	1	1—
                                     Environ ment
                                 -.,
                          •>•*^i n»k
                          347*,,,
     C1
O C DA FIM! Econoiny
^ t rM EnvirtxmMiUl
                             CofnpmoM
           G«iV»hicl*
Expert Panel Report
                                                                         23

-------
                                Appendix D: Examples of Technology

                                Impacts on  Label Design



                                A4b - PHEV - gallon gas equivalent/100 miles
                                  •»  C D A rue' Economy ar
                                  -  t  rM r  ,
            and
                             Dual Fuel Vehicle
                              Plug .» Mytmd EtKttK
                                           J- .....
                                                   38 27
                                                                     137
                                B4 - PHEV
                                 ©EPA
  Fuel Economy and

  Environmental Compatisons
   Pit»i H»«l VMM*:
                                         Electric » Gas
                    Gat Only
                                                 MPG
"^ aOC *
 • DO 1

   $737
MPG
»38

  $1,11 4


                                  ChJirgr & Hinge
                                  HowThl» WhicU Compares         • Environment
                                                      it tn*avf«tii

                                                              0000  0000


                                                                        .. ^
                                                                     Sm.ftphnn.

                                                                     !<.!...il.v.
24
                         EPA Fuel Economy Label Redesign

-------
    Appendix E:  PowerPoint Information Used
    During The Meeting
        Expert Panel Meeting
        Welcome:
             E i
                                Ian Rowe
                                Fred Seibert
                                Faye
Matt Burchard
Tom Conrad
                   Introductions

Expert Panel Report
                                                      25

-------
                                    Welcome
                     Margo Oge
                     Director, U.S. Environmental Protection Agency Office
                     of Transportation and Air Quality
                                      Agenda
                               Introductions
                               Welcome
                               Background and meeting goals
                               Research review and feedback
                               Messages
                               Outreach strategies
                               Working lunch: Discussion between observers and panelists
                               Label design feedback
                               Break
                               Discussion between observers and panelists
                               Final comments and adjourn
26
EPA Fuel Economy Label Redesign

-------
                       Meeting Goals

              1. Identify opportunities to increase the
                priority of energy efficiency in the
                vehicle purchase process

              2. Provide feedback on working fuel
                economy label designs
Expert Panel Report
27

-------
                        Background

              Each year, the United States:
              • Produces 10% of the world's petroleum
              1 Consumes 26% of the world's production
28
EPA Fuel Economy Label Redesign

-------
                       Background

              Every gallon of gasoline your vehicle
              burns puts about 20 pounds of carbon
              dioxide into the atmosphere.
                       Background

              Going from 20 MPG to 25 MPG can
              prevent 10 tons of carbon dioxide over a
              vehicle's lifetime.
Expert Panel Report
29

-------
                        Background

              Increasing energy efficiency helps :
              • Reduce greenhouse gasses
              1 Reduce dependence on imported oil
              • Enhance the nation's energy security
              • Conserve our fossil resources for future
               generations
                                35"
                        Background

               The mission of EPA is to protect human
               health and to safeguard the natural
               environment -- air, water and land --
               upon which life depends.
30
EPA Fuel Economy Label Redesign

-------
                               Background

                   EPA is initiating a new rulemaking and
                   education campaign to:

                    • Help consumers understand how each
                     vehicle impacts the environment.

                    • Ensure consumers have accurate,
                     meaningful and useful information.
                               Background
                  Information gathering
                    3 Phases of Focus Groups:            COMPLETE
                     Buying process / Use of current label / Metrics
                     Building labels for conventional and advanced technology vehicles
                     Evaluation of full label designs

                    Literature Review             ONGOING
                     Buying process and influencing factors

                    Expert Panel:                June 9th, 2010
                     Shifting culture
                     Improving effectiveness of designs

                    Internet Survey:              June 28th, 2010
                    • Evaluating labels for understanding and influence
                    • Messaging
                                                            'PRR
Expert Panel Report
31

-------
                                        Awareness

                                        Familiarity

                                      Opinion/Imagery

                                       Consideration

                                      1
                            Research review
                                     Key findings
                         Most important considerations:

                         1. Vehicle Type
                         2. Vehicle Cost
                         3. Fuel Economy (City and Hwy MPG used
                          to compare)
                         4. Then: Safety, Reliability, Size,
                          Appearance, Comfort, Brand Name,
                          Performance
32
EPA Fuel Economy Label Redesign

-------
                         Research  review
                                 Key findings
                    Even if very specific buying criteria is met,
                    consumers will not purchase a vehicle if it does
                    not meet their aesthetic standards.
                         Research  review
                                 Key findings
                    By the time the consumer enters the
                    dealership to test drive a vehicle s/he is closer
                    to a final purchasing decision than was true in
                    the past.
Expert Panel Report
33

-------
                           Research review
                                   Key findings
                      Information is gathered from multiple sources:
                        •Manufacturers and dealers
                        •Automotive magazines
                        •Websites
                        •Word of mouth
                        •Family and friends
                          Research  review
                                  Key findings
                     The Internet is an important source of
                     information and used to acquire information
                     from those with first-hand experience with
                     specific vehicles through reviews and blogs.
34
EPA Fuel Economy Label Redesign

-------
                         Research  review
                                 Key findings
                    Online sales increased at an annual growth rate
                    of 14.6% over the past five years and represent
                    4% of total car sales in the United States.
                         Research  review
                                 Key findings
                    Environment is not a deciding factor. However,
                    many buyers consider hybrids ultimately
                    rejecting them due to cost or perception that
                    they are a young technology.
                                     ,
Expert Panel Report
35

-------
               2009 U.S.  advertising spending
                  Comoanv
                  General Motors
                  Ford
                  Toyota
                  Honda
                  Nissan
                  Chrysler
                  Hyundai
                  Volkswagen
                  Daimler
Soend
$2,901.1 million
$1,856.0 million
$1,690.4 million
$1,254.6 million
$1,199.3 million
$1,129.6 million
$512.8 million
$407.2 million
$401.3 million
Rank
                                      35"
                         Research review
                                 Questions
                    How does this purchasing process compare to
                    other products?
                    How should these realities impact a strategy?
36
                         EPA Fuel Economy Label Redesign

-------
                         Messages

               What messages will overcome current
               barriers/shift priorities and increase
               perceived value and preference for fuel
               efficiency?
                   Outreach Strategies

               What outreach strategies would best
               deliver those messages to vehicle
               purchasers and those who influence
               them?
                               ,
Expert Panel Report
37

-------
                         Background
               2006:  EPA updated how city and highway
               fuel economy values are calculated and
               designed a new fuel economy label.
                                    EPA Fuel Economy Estimates
                23
HIGHWAY MPG

 30
18
25
               lEJiTJEr*""™  ikiMMcnrun.frtnm   •.i*»*i-w^-« I
                         Background

                  City and Hwy MPG most used and
                  used to compare vehicles within same
                  class


                  Annual figures (mileage and cost)
                  criticized as being inaccurate
38
                       EPA Fuel Economy Label Redesign

-------
                                FMI Economy A GmnhowM Gal
                                         Z  '1,641
                                                                      B1a
                                                        ••<• i, • -- . |Ml",
                                                         347 S~
                                                                               3.9,
                                                                                                Annual Full Colt
                                                                                                S1,641
                                                                            How ThJ* VehKle CcmpllM       Efwuonmwlt

                                                                                   ••  "         ?Si~  See"
                                                                                    11       "          '""

                                                    C1
                           A4b - PHEV
                                          O  C DA Fuel Economy and
                                          "* ..... I .rA Environmerv

                                                              >tal Comparisons
Dual Fuel Vehicle:

Expert Panel Report
                                                    39

-------
                          B4 -PHEV
                                                 Fuel Economy and
                                                 Environmental Comparisons
                                                                                 Dual Fuel Vehicle
                                               Electric + Gas
                                                        MPG
                                               • 651.5
                                                 $737
GasOnlv
ggg
MPG
2.7
                                        Charge & Range
                                        . ' i» " " >" ' ' Blended tleetiu
                                                         K Re^ge IbaUefyl   CiUndad flah^r ((
                                       How This Vehicle Compares
                               B2b
                                                 Fuel Economy and
                                                 Environmental Comparisons
                                              How This Uthicl* Compare*     Environment
                                               °"	rn         /££££*' "%&!J£&
                                               ~-PJ  iii  r > **•    !r^
                                                              1
                                                                        ' ICi snniTniB

40
                    EPA Fuel Economy Label Redesign

-------
      Appendix  F: Advance Materials Sent to

      Participants

      Dear Colleague,

      Thank you for agreeing to participate in the expert panel discussion
      for the U.S. Environmental Protection Agency (EPA) Fuel Economy
      Label Project. This letter contains important information about the
      meeting, travel arrangements, and reimbursement procedures. This
      email also contains the following attachments:
         •   Draft agenda
             Research briefing

      Homework
         1.    Please review the attached materials.
         2.   After reviewing the materials,  it would be helpful if you
             could come prepared to discuss how you would recommend
             that the EPA increase the value of, and preference for, more
             efficient vehicles.

      Panel Participants include:

      Erikka Arone      MyArtspace.com, Advisor
      Stacie Bright


      Matt Burchard

      Tom Conrad
Unilever, Senior communications  marketing
manager

Zappos, Director of Online Marketing

Pandora, CTO
      Dr. Cheryl Healton Legacy, President & Chief Executive Officer

      Craig Newmark    Craigslist, Founder, Chairman and customer
                        service rep

      Ian Rowe          Bill and Melinda Gates Foundation, Former
                        Deputy Director

      Fred Seibert        Frederator Studios,  President  & Executive
                        Producer

      Faye L. Wong, MPH CDC, Chief, Program Services Branch Division
                        of Cancer Prevention and Control
                                                   UNITED STATES
                                                  ENVIRONMENTAL
                                                PROTECTION AGENCY
Expert Panel Report
                                                                             41

-------
                                        The meeting will be facilitated by Mike Rosen of PRR. There will
                                        also be a small group of observers from the EPA, the  National
                                        Highway Traffic Safety Administration and  the U.S. Department
                                        of Energy.

                                        Meeting Logistics

                                        The expert panel will take place on Wednesday, June 9, 2010, from
                                        9 am - 3 pm.

                                        Location:      EPA Headquarters
                                                       Ariel Rios North Building, Rooml332A
                                                        1200 Pennsylvania Ave, NW
                                                       Washington, DC 20004

                                        * Meeting access - Entrance off of 12th Street, NW, near Federal
                                        Triangle metro stop. Standing at entrance to metro station, Ariel
                                        Rios North will be on your left.

                                        All guests must go through security clearance, so  please bring a
                                        valid driver's license or passport for identification  purposes. You
                                        will be asked to go through the  metal  detector. We will have a
                                        project representative  in the  lobby to assist with the security
                                        process.  However, if you encounter any problems accessing the
                                        building, please contact Kristin Kenausis at (202) 306-3061  or
                                        Lucie Audette at (734)  717-8062.

                                        Coffee and refreshments will be available starting at 8:45 am, the
                                        meeting will start at 9 am and end 3 pm. Lunch will be provided.

                                        Travel Arrangements

                                        We  are happy to  arrange travel  for  you, or if you prefer, you
                                        may make your own arrangements and then submit receipts for
                                        reimbursement. We do not have a preferred hotel and instead are
                                        working with each person individually to make reservations.  There
                                        are a number of hotels near the EPA offices; a list of nearby  hotels
                                        is attached.

                                        Reimbursement for Travel Expenses

                                        We  will  reimburse   participants   for   coach   airfare,   hotel,
                                        transportation,  mileage  for use  of personally  owned  vehicles,
                                        and meals and incidental expenses (M&IE) after  the workshop.
42                                                                                 EPA Fuel Economy Label Redesign

-------
      Because we are working with the EPA, we are subject to Federal
      reimbursement procedures.

      In  keeping with  Federal reimbursement procedures, we  will
      reimburse  participants for meals and incidental expenses at an
      established per diem rate of $71.00 for travel to Washington DC.
      Please note that  the Federal government uses a travel day system
      for M&IE reimbursement, where the maximum rate for M&IE
      reimbursement is $35.50 on days that you are traveling to  and
      from Washington, DC.

      Please note  that  under  Federal  reimbursement   procedures,
      it  is  necessary  for  participants to  keep original  receipts  for
      airfare,    hotel/tax,   and   ground  transportation  expenses,
      regardless  of  cost.  Receipts  for  meals  are  not necessary, as
      participants will be reimbursed per  the  Federal reimbursement
      procedures  discussed above.  Please submit receipts to  Kimbra
      Wellock. A fax  or  scan or  the original receipt is acceptable.
      Please do  not hesitate  to  contact me at (206)  462-6351  or
      kwellock@prrbiz.com if you have any questions or concerns.

      Sincerely,

      Kimbra Wellock,

      PRR, Inc
Expert Panel Report                                                                                            43

-------
                  EPA - Fuel Economy Label Project
                  Expert Panel Advance Information
                      Expert Panel Purpose
                1.  Identify opportunities to increase the priority of energy efficiency
                   in the vehicle purchase process

                °.  Provide feedback on working fuel economy label designs
44
EPA Fuel Economy Label Redesign

-------
                                   Our Reality
                      14,000,000 new light duty vehicles are purchased in the
                      U.S. annually.


                      Light-duty vehicles account for 60 percent of all mobile source
                      Green House Gasses.
Expert Panel Report
45

-------
                         Information  Gathering
                                    Activities
                      3 Phases of Focus Groups: COMPLETED
                      Literature Review
                      Expert Panel:

                      Internet Survey:
ONGOING
June 9th, 2010
June 28th, 2010
                                Key Findings:
                      Information is gathered from a variety of sources such as
                      manufacturers and dealers, automotive magazines and websites,
                      word of mouth and from family and friends

                      The vehicle buying cycle is contracting due to the amount of
                      information that consumers are accessing on the Internet

                      The Internet provides consumers the opportunity to purchase
                      vehicles online (annual growth rate of 14.6% over the past five
                      years)
46
                        EPA Fuel Economy Label Redesign

-------
                                 Key  Findings:
                       Purchasing a vehicle tends to be related to other major life
                       changes
                       US consumers will NOT purchase a vehicle that does not meet
                       their aesthetic standards
                       Currently environmental Impact is not a factor in vehicle choice

                       By the time the consumer enters the dealership s/he is closer to a
                       final purchasing decision than was true in the past
                                 Key  Findings:

                    Factors influencing choice
                         Specific vehicle or vehicle class in mind using these
                         considerations:
                             1. Vehicle Type
                             2. Vehicle Cost
                             3. Fuel Economy
                             4. Then: Safety, Reliability, Size, Appearance, Comfort,
                               Brand Name, Performance
Expert Panel Report
47

-------
                                   Key Findings

                      Factors influencing choice
                           Price is currently even more critical for consumers because of
                           the global economic crisis

                           Fuel economy has also become even more critical for
                           consumers because of fluctuating gas prices and is the top
                           reason why people are opting for fuel-efficient or alternate-fuel
                           vehicles
                                   Key  Findings

                      Factors influencing  choice
                           Barriers to purchasing vehicles that utilize electricity include:
                           concerns about insufficient driving range, the need for
                           specialized infrastructure (such as charging stations), battery
                           performance, and doubts concerning the ecological value of
                           vehicles that use electricity.

                           (Electric Vehicles / Extended Range Electric Vehicles / Plug-in
                           Hybrid Electric Vehicles)
48
EPA Fuel Economy Label Redesign

-------
                               Key Findings:
                   The role of the current fuel economy label
                        The fuel economy label is a highly recognized tool
                        Used after a specific vehicle type has been selected
                        Used towards the end of the buying process
                        Primary use is to compare city and highway mileage
                                    EPA Fuel Economy Estimates
Expert Panel Report
49

-------