GOVT PANEL CALLS FOR NEW ENERGY R&D

Here’s a twist: A government panel – a REPUBLICAN government panel – is calling for a federal gas tax to fund alternative fuels development and infrastructure redevelopment.

The report’s conclusion: “The concept of mobility is so fundamental to the American Dream, integral to our national character, and necessary to our economic well-being, that it is imperative that our surface transportation system, in all its varied modes, be the best in the world. The American people need it, demand it, and deserve it. The Commission believes that the Nation's leaders must provide it for them…This will require a sea change in the way surface transportation is planned, funded, and delivered. It will require courageous decision making, financial innovation, and unity of purpose…”

Yeah, that’s gonna happen. It took almost no time for US House Minority Whip Roy Blunt (R-MO) to reject the proposal because it would require new taxes.

The report shows this picture of the collapsed Minneapolis I-35 bridge to remind its readers how important the proposals are, even if they cost taxpayers. (click to enlarge)

U.S. study commission calls for more alternative fuel R&D
Nick Snow, January 15, 2008 (Oil & Gas Journal)

WHO
The National Surface Transportation Policy and Revenue Study Commission

The report calls for this national rail network to take pressure off the U.S.highway system and allow a switch to alternative rail fuels. (click to enlarge)

WHAT
In Transportation for Tomorrow, the commission called for the U.S. government to increase spending for research and development of non-petroleum alternative fuels by $200 million per year.

WHEN
- The commission’s findings were announced January 15.
- It called for 10 years of increased R&D spending increase at the $200 million per year level.
- The commission was created by a 2005 legislative act passed by the then Republican-controlled congress.

WHERE
The commission described a public sector-private sector partnership to maximize the productiveness of the R&D spending.

The blue states have developed public-private partnerships like the national one proposed by the study commission to rebuild America's transportation infrastructure and develop alternative fuels. (click to enlarge)

WHY
- There were 9 recommendations in the report.
- The commission calls for government spending in the form of accelerated tax credits and revolving loans to incentivize infrastructure development and land use planning as well as fuels research.
- The report suggests financing the R&D program with a federal fuel tax increase from 5¢/gal to 8¢/gal over the next 5 years and then indexing further increases to inflation.

From the report: the biggest single emissions-generating U.S. sector is transportation. (click to enlarge)

QUOTES
- Transportation for Tomorrow: "Accelerated tax credits could also be made available to encourage the early transition of fleets and motor power away from dependence on petroleum-based fuels…"
- House Minority Whip Roy Blunt (R-MO): "As Congress and the administration work to create a package to stimulate our economy, it should be obvious that more than doubling the federal gas tax on working Americans would have precisely the opposite effect…"