Obama: The Future of the Auto-Industry, Green-Fuel Surcharge

December 8, 2008 · Filed Under Government Reports, News, Congress · Comment 

Barak Obama was on Meet the Press this weekend, and gave some insight into his plans for the US Auto-Industry and possibility of a fuel-surcharge

What do you think about $4/gallon gas mandate that Brokaw puts forth? I think Obama had the correct response, but it’s clear that cheap gas literally kills new investment in alternative energy solutions.

A Real Plan for Automakers and America

Congress will likely consider a “bailout” for the auto-industry today, Monday, Dec. 8, 2008.  It is an opportunity for Flex-Fuel legislation (Open Fuel Standard Act) to pass as well.

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Congress should require that new cars run on any mix of gasoline and ethanol and methanol.  As a reminder, in the war on oil-dependence, this would be a game-changer.

The facts:

1) Flex-fuel is an inexpensive, proven technology.
   a. Cost is $100 per vehicle for new cars.
   b. The original flex-fuel vehicle was the Model-T (for 17 years).
   c. The US auto industry currently has over 4.4 million flex-fuel cars on US roads (but few would know it).
   d. Brazil consumes ethanol (from sugar-cane) for over 50% of its fuel requirements.

2) The cost of oil will rise again
   a. OPEC has already cut production by 1.5 million barrels per day.
   b. And is considering an additional cut of more than 2.5 million additional barrels per day (later this week).
   c. Demand for oil from China and India, with vastly growing middle-classes, inevitably will rise again.
   d. The easiest to extract oil on earth has been tapped, and it gets more difficult as time goes on.
   e. Oil is still $30/barrel higher than its 10 year historic low.

3) National-security demands that we reduce our dependence.
   a. Russia, Venezuela, and OPEC are repressive, regressive, and often anti-American oil exporters.
   b. We fund their misbehaviors and we end up supporting terrorism.
   c. We cannot hope to modify the goals of a nuclear-intentioned Iran when we are so dependent and while they control the waterway through which 20% of world’s oil passes daily.

4) Economic strength demands that we reduce our dependence.
   a. We are exporting millions of jobs that could otherwise be producing our fuel domestically.
   b. We could be “recycling” these domestically spend dollars-at a time in which we need it so badly.
   c. We could be developing the technologies that will fuel the future of the energy marketplace globally.

5) Many solutions.
   a. We also need solar, nuclear, wind, and drilling.
   b. But we need Flex-Fuel biofuels NOW as the surest short-term path to addressing our dependecies and to create security and economic strength.
   c. The best time to get the auto-makers to cooperate is while they need a “bailout”.

6) Please, contact your Senator today–not tomorrow.
   a. Call (202) 224-3121 and ask to be transferred to your Senator’s office.
   b. You can make a difference with just a phone call.
   c. Call both of your Senators.

 

Reprinted w/ Permission from MoveBeyondOil.org
E-mail: info@movebeyondoil.org
Phone: 516-717-0000

US Govt gives automakers $25B in loans; drops fuel-efficiency mandate

By Peter Forman
Published: November 14, 2008
New York–This is a Breaking News analysis as of Friday, Nov 14, 2008, 5:30 pm.

The United States continues to “perpetuate” a broken auto industry.

Because of pressure from Detroit, unions, and Michigan lawmakers, the “Big Three” auto makers have been insulated from the real market-place of competition for the past 30 years. The Japanese and Germans have figured out how to build cars in the American South profitably–but not the Big Three.
 
Looking at this from a Darwinian perspective, the US auto makers were protected from the same marketplace pressures to which the world’s other car makers were exposed.  The extra profits they were able to generate by virtue of this protection essentially went to the workers and to shareholders.

That’s fine and good except now we have a completely broken auto industry that is unable to compete.  Now exposed to declining demand and lacking access to “cheap” capital, they are likely to disappear in their current forms–even after we spend untold billions in short-term assistance.
 
For years they fought everything from seatbelts to higher mileage standards to bio-fuels.  The unions and the companies are victims of their own self-inflicted damage. 
 
Now there is breaking news that President Bush, later this afternoon, has called on Congress to give U.S. auto makers quick access to a $25 billion federal loan program by dropping a requirement that the money be spent on converting to fuel-efficient vehicles. (emphasis mine) 

The move, aimed at ending what the White House called partisan “gridlock,” represents a significant escalation in the political battle over aid to the Big Three auto makers.  This is ahead of an expected showdown next week in Congress between Democrats and Republicans.
 
We taxpayers, the investors-of-last-resort, should at least expect that these bail-out monies be invested in a way that prepares the car companies for the future and that serve our national-security and economic interests.
It is the very least we can demand and expect. 

While we are unlikely to ever see a return of these funds, the car companies could at least agree to manufacture all cars beginning in 2012 with flex-fuel compatibility and continues progress towards EVs (electric vehicles).

Without at least those commitments, what will we have to show for this “investment”?

Demand that your Congressperson and Senator act–call today!
Demand loans only in exchange for the Open Fuel Standard Act.
Demand that, for once, we begin to move beyond oil.
 
MoveBeyondOil.org
The bi-partisan, not-for-profit source for energy independence information and solutions.

Used w/ Permission: MoveBeyondOil.org

Citizens for Energy Freedom Founding Conference, January 2009 at Florida Atlantic University

November 8, 2008 · Filed Under Do-It-Yourself, FuelClinic, Congress, Energy Independence · 1 Comment 

Join me at the The Citizens for Energy Freedom Founding Conference this January at Florida Atlantic University for the founding meeting of this new grassroots energy-independence campaign.

The Citizens for Energy Freedom Founding Conference
January 17th & 18th, 2009
at Florida Atlantic University, Jupiter, Florida

Announced last month at the Energy Freedom Summit in Chicago, this two day convention will feature a series of talks and panels by leading experts on energy, economics, technology, national security, and politics.

Invited guests include:

  • Sen. Mel Martinez
  • Sen. Bill Nelson
  • Sen. Hillary Clinton
  • and Former Speaker Newt Gingrich

If tailored after the Energy Freedom Summit, this will be an intense two day collection of industry and government experts at panels, presentations, discussions, and workshops focused tightly on educating and motivating attendees to help organize to support a workable energy independence plan. Bring a notebook!

Sign up today at the bottom of this page to reserve your seat at this conference. 

I’ve already reserved mine. :)

What Should Obama’s Energy Policy Include/Exclude?

November 5, 2008 · Filed Under Tax Credits, Fuels, News, Industry, Congress, Energy Independence · Comment 

Senator Obama ran a brilliant campaign and yesterday a majority of Americans voted him in to the Office of the President of the United States. While there is certainly reason to celebrate today, in a few short months he will inherit a failed energy policy, one in desperate need of change – but exactly what kind of change?

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The Obama-Biden comprehensive New Energy for America plan will:

+ Provide short-term relief to American families facing pain at the pump
+ Help create five million new jobs by strategically investing $150 billion over the next ten years to catalyze private efforts to build a clean energy future.
+ Within 10 years save more oil than we currently import from the Middle East and Venezuela combined.
+ Put 1 million Plug-In Hybrid cars — cars that can get up to 150 miles per gallon — on the road by 2015, cars that we will work to make sure are built here in America.
+ Ensure 10 percent of our electricity comes from renewable sources by 2012, and 25 percent by 2025.
+ Implement an economy-wide cap-and-trade program to reduce greenhouse gas emissions 80 percent by 2050.

In the past Obama has been a friend of the ethanol industry, supporting the subsidies that enabled the young industry to flourish in his home state (and surrounding states) early by encouraging private investment and innovation. He recently said corn ethanol is not “optimal” when compared with sugar cane ethanol, a comparison that is not entirely fair, since corn ethanol production produces feed for livestock as a byproduct.

Will he continue to support the ethanol subsidies, and work to raise the “blend wall” on E10 from 10% to a higher figure? (Ethanol production is about to “cap” out due to the lack of market for it’s excess product.) There is no mention of the Flex-Fuel Vehicle in the bullet points above, although it would be the cheapest fastest method for reducing (in a meaningful way) America’s transportation reliance on oil.  

So, besides encouraging fuel conservation and mandating FFV’s w/ the Open Fuels Standard Act, what else should President Obama’s energy policy include and exclude?

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