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The House Armed Services Committee’s newly proposed 2013 Pentagon budget contains a provision that would prevent the U.S. Department of Defense (DoD) from purchasing alternative fuels, largely in the form of biofuels, if they cost more than traditional fuels. The proposal comes at a time when the military is ramping up its use of biofuels and the U.S. biofuel industry could use the certainty provided by a customer as large and influential as DoD. An example of DoD’s alternative fuels efforts: In 2009, the navy announced a plan that would have the navy utilize 50% non-oil energy in its operations… [more]
View InsightHistorically, widespread uptake of renewable energy has been limited by relatively high costs as compared to traditional energy sources. A 2011 IEA report argued that “renewable energy … is becoming cost-competitive in an increasingly broad range of circumstances, in some cases providing investment opportunities without the need for specific economic support.” Several recent trends, and recently announced business ventures, seem to support the IEA’s finding that some renewable energy sources are approaching cost-competitiveness. Prices for distributed solar have plummeted recently – due largely to economies of scale, government support and policy-driven demand – leading in 2011 to a record 1,855… [more]
View InsightA recent Congressional Research Service report titled “Rising Gasoline Prices 2012” states that Congress has “limited short term options … to address gasoline prices.” The report identifies six short-run policy options – a Strategic Petroleum Reserve release, a gasoline tax holiday, relaxed fuel specifications, limits on refined gasoline exports, limits on commodities speculation, and diplomatic measures – and concludes that it is unclear “what the price impact of these short term options would be” and that they would involve policy tradeoffs which may include “national security, fiscal, and health priorities.” The report briefly addresses longer-term policy options, i.e. “measures that… [more]
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On March 13th, C2ES held a panel discussion in Washington, DC titled “Electric Vehicles Plugging into the U.S. Grid.” The panel addressed the opportunities and challenges surrounding broad roll-out of plug-in electric vehicles (PEVs). A key point of discussion was the need for harmonization between the auto industry, utilities, and government so as to optimize the electric grid as PEVs become a larger proportion of the vehicle fleet. Another key point was the need for consumers that are well-educated on PEVs. What’s keeping PEVs, and other alternative fuel cars, from breaking into the market? Is it simply a lack of… [more]
View InsightAddressing high gasoline prices at a February 23 speech in Miami, President Obama made a case for continued investment in fuel economy and alternative fuel sources like algal biofuels and natural gas. The U.S. cannot drill its way out of high gas prices, he said, adding that anybody who says otherwise “doesn’t know what they’re talking about or just isn’t telling you the truth.” [Fox News] “It’s the easiest thing in the world to make phony election-year promises about lower gas prices,” Obama said. “What’s harder is to make a serious, sustained commitment to tackle a problem that may not… [more]
View InsightUniversity Distinguished Professor
Michigan State University, Dept. of Chemical Engineering
The past century can rightly be called the Age of Oil. World oil consumption grew from about 20 million metric tons/year in 1900 to nearly 4000 million tons/year in 2005—a 200 fold increase. The economic activity enabled by oil consumption also greatly increased both human wealth and the human population size over the last century. But it is also clear that the Age of Oil is winding down. It is obvious, but often forgotten, that we must discover oil before we can produce, refine and use it. Worldwide, the rate of discovery of new oil reserves peaked in the 1960s.… [more]
View InsightOn December 31, 2011 Congress allowed a decades-old corn ethanol subsidy to sunset. It also sunsetted an import tariff on foreign cellulosic ethanol. The dissolution of these policies has prompted some concern about impacts on gasoline prices and the future of the U.S. ethanol industry. Nearly all gasoline blended and sold in the U.S. contains at least 10% corn ethanol. USA Today is reporting that the end of the subsidy could raise gasoline prices by as much as $0.045/gallon as early as next week. In an interview on NPR, Bruce Babcock, a professor of energy economics at Iowa State University,… [more]
View InsightA federal judge has ruled to block California’s Low Carbon Fuel Standard, arguing that it “unconstitutionally discriminates against out-of-state producers and tries to regulate activities that take place entirely outside state boundaries.” The standard “impermissibly treads into the province and powers of our federal government, reaches beyond its boundaries to regulate activity wholly outside of its borders,” the judge said. [The New York Times] The standard would function by using life-cycle analysis to identify the CO2 intensity of fuels. Fuel-makers whose products have lower CO2 intensity would be rewarded with tradable credits. Those selling higher CO2 fuels would have to… [more]
View Insight[Note: The statements below are intended solely to stimulate discussion among the Expert community, and do not represent the position of OurEnergyPolicy.org. Text in italics indicates clarification or expansion.] Substantially increase government support for research designed to directly replace oil. Up until now most government research grants in the area of energy went to traditional fossil fuels. The significantly smaller grants for alternative energy have been largely directed to global warming issues. Although we strongly recommend increasing the research grants for global warming solutions, it is critical for the survival of the U.S. and world as a free one… [more]
View Insight[Note: The statements below are intended solely to stimulate discussion among the Expert community, and do not represent the position of OurEnergyPolicy.org. Text in italics indicates clarification or expansion.] An analysis of the current status shows that hydrogen powered cars, generation infrastructure and delivery infrastructure; all at competitive prices to other solutions are 20 years away under the best of circumstances. In any case, an affordable and efficient electric battery car will be available at least 10 years ahead of that and it will not require infrastructure changes. The hydrogen (fuel cell) car simply lost the race to the market.… [more]
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