[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.]
 
Oil-based fuels in the U.S. are used primarily for transportation (69%). Only 2% are used for electricity generation. “Moving away from oil” means finding alternative fuels, alternative methods of propulsion and alternative methods of transportation. The policy should release the market forces so that the oil monopoly can be broken.

Critical Policy Recommendations

Flex Fuel GEM Mandate – 50% of gasoline powered vehicles by 2011 reaching 100% by 2013. Check possibility of faster 100% implementation. It is essential that the mandate will be for all types of alcohols, not just for ethanol (GEM = Gasoline, Ethanol Methanol).

Every car stays on the road 16.8 years. We must produce cars that can run on multiple fuels now so we will not get stuck with gasoline only cars but without oil. It is a known technology that costs less than $100 per car.

Increase the Alternative Fuel Infrastructure Tax Credit to 50% for three years going down to 30% for additional two years and 15% for the last two years (total seven years). This should encourage gas station owners to perform the pump conversion faster.

We must provide drivers with places the fuel their cars. The market will take care of the rest. The pump must support Methanol blends as well as Ethanol.
 

Plug-in Hybrids – tax incentives to consumers and other incentives to car companies to produce and buy Plug-in Hybrids. This should be part of a ladder of incentives to cars that will be running “not on oil” (partially passed as part of HR 1424 – the emergency economic stabilization bill).

80% of the cars are driven less than 20 miles per day. Plug-in Hybrids that can run 20-40 miles on electricity and charge at night are a winner on all fronts. We should push them as fast as possible.
 

Mandate ALL federal and local government vehicle purchases to be either GEM flex fuel cars or plug-in hybrids.

Increase the current “weak” mandates. The market needs an aggressive starter.
 

Mandate government (federal and local) use of bio-diesel in ALL its diesel vehicles.

Increase the current “weak” mandates. The market needs an aggressive starter. DOD is the prime user.
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