You are assuming an equal treatment between different fuels. That is not reality. Gasoline is taxed less than diesel, while CNG/LNG receives no excise tax at all.
2) EPA regulations require engines to support at least a 50/50 blend of bio diesel / diesel. This will favor the use of bio diesel
That will raise prices, not lower them, and some biofuel content is already in government regulations.
3) Significant increase in the production of bio-diesel is encouraged by the dept of Agriculture (farmers using bio algae to produce bio diesel). This will increase the supply of bio diesel.
More subsidy by tax payers of selected fuels? NO!!!
The government should not be selecting the winners and looser and they certainly should not be spending tax dollars to do so.
All three require regulatory changes that I am NOT comfortable with as I do not believe that the government should be in the business of choosing who wins and who loses in the economic game.
Ahhh... We agree. Cheers!
While mostly true, there are a few details needed for context.
According to the American Petroleum institute, the sum of all local, state and and federal taxes (US average) is about 55 for diesel and 48 for gasoline. However, the energy density for diesel is also higher (35.8 MJ/L for diesel vs 32.4 for gasoline). The tax differential is very similar and comes close to normalizing along energy density (rough substitute for fuel efficiency).
However, the EPA's emissions requirements are not based on mileage. As such there is a regulatory favoritism towards gasoline. By basing all emissions requirements on actual mileage, this favoritism would be removed.
Side note, some states do have an alternative fuel tax on CNG/LNG and even propane vehicles so there are situations where there is some tax, but not like the federal excise tax on diesel/gasoline.