Obama to Request $2B USD for EV, Hybrid Research; Tax Credit for LNG Trucks

dailytech.com ^ | March 15, 2013 11:48 AM | Jason Mick (Blog)

[Ernest_at_the_Beach]

He's learned his lesson about risky loans, but Obama wants to increase research grants

The auto industry isn't very happy with the federal government.  After two decades of inaction on the fuel economy, President George W. Bush (R) and his successor, current President Barack H. Obama (D) have pushed legislation through Congress to stiffen fuel economy rules.  Those rules have cost the industry billions.  But both Presidents tried to make up with automakers by pushing federal funding initiatives that help automakers with the cost of fuel economy research, on the taxpayer dollar.

I. After a Decade and a Half Stall, Bush Kick-Started MPG Progress

A debate of economics aside, the approach seems to be working.  In a report to be released today, the U.S. Environmental Protection Agency (EPA) is expected to announce that between 2007 and 2012 fuel economy rose 16 percent, while carbon dioxide emission decreased by 13 percent.

In a report last year called "One Decade of Innovation, Two Decades of Inaction", the Pew Institute points out that there was essentially no gain in fuel economy between 1985 and 2000, despite rising oil prices in the late 1990s.  The agency says that this was the result of so-called "Reagonomics", writing:

In the mid-1980s, however, Ford and General Motors lobbied the Reagan administration to lower the standard. NHTSA complied, setting a 26-mpg standard for 1986, prompting Chrysler Chairman Lee Iacocca to declare, “We are about to put up a tombstone: ‘Here lies America’s energy policy.’ ”

[Ernest_at_the_Beach]

A bit more detail than an earlier article from Marketwatch:

Obama to announce $2 billion in energy research fund ( green” fuel sources for vehicles--???) ^

[Ernest_at_the_Beach]

**************************************EXCERPT****************************************

IV. CNG Tax Credit Proposal Revived

Also on the President agenda Friday will be plugging natural gas for vehicles.  Compressed natural gas (CNG).  The U.S. produced 25.3 trillion cubic feet (25.3e12) of natural gas last year, according to the U.S. Energy Information Administration.  Low costs and domestic production make this fossil fuel an attractive alternative to petroleum; the President thinks it could play a small, yet important role in the automotive market.

The President wants a tax credit for CNG and EV truck buyers equal to half the incremental costs (50% of the premium over a similar model gas vehicle).

_{President Obama wants tax credits for CNG truck buyers. [Image Source: Truck Trend]}

It appears the President has dropped a separate proposal dubbed "National Community Deployment Challenge", which called for $1B USD to fund 10-15 "green" EV-friendly communities (paying for public chargers, etc.).

To contrast these funding initiatives with past government transportation funding, recent reports estimated that the government has spent around $1T USD to date to develop the commercial airport system.

[NormsRevenge]

It’s like a ‘camel’ mentality in a energy resource rich race horse affair .. we been out-slicked .. not sure how far old Model As and Ts went .. but.. somewhere somebody went off the deep end when they sold us on smaller is better.. heck,
No.

[illiac]

Maybe they will call the cars Solyndra....

[UnbelievingScumOnTheOtherSide]

What is to research?

You make the cars lighter.
Then you make them slower so they don’t kill more people.
Problem solved.

[ClearCase_guy]

[Ernest_at_the_Beach]

ROFL!

Perfect picture.!!

[Aria]

Why is the House allowing this crap?????

[Secret Agent Man]

I wonder if he’s running out of ways to spend more money we don’t have.

[Ernest_at_the_Beach]

It's a proposal...maybe an Executive Order type of thing.

Obama is pushing the limits.

[Ernest_at_the_Beach]

Maybe the figure in post #7 represents Bernake....

[Marine_Uncle]

"(EPA) is expected to announce that between 2007 and 2012 fuel economy rose 16 percent, while carbon dioxide emission decreased by 13 percent."

Not a good thing. We need increased amounts of CO₂ injected into the air.

[Racer1]

It would be better to put the money into natural gas fueling stations and let the people buy their own cars. Again, helping big business to do what the cost savings should entice them to do on their own. Government intervention such as cash for clunkers only harm the economy (especially the little guy) by causing huge price increases. The solar power initiatives had the same result with many solar companies struggling to survive or even going bankrupt after the incentives began to dry up which caused module prices to plummet (china dumping too). A little infrastructure would be the best choice for natural gas.

[Ernest_at_the_Beach]

Now you know politicians are looking for ways to enhance their vote getting credentials.

[PapaBear3625]

What would be better would be to declare a ten-year moratorium on fuel taxes for natural gas used in vehicles. If the price differential on LNG is high, then people will pay the extra capital costs to buy NG vehicles. As more go on the road, there will be profit in running fueling stations. As more NG vehicles are demanded, manufacturers will produce them on the assembly lines, rather than buyers having to apply conversion kits on diesel vehicles, making the price difference go away.

[Racer1]

Unfortunately that is the only thing the most of them care about. It is time we tell them not to just do something, do the right thing or get the heck out of the way.