Can we give gas stations and incentive of $40,000 one time tax credit to convert 2 or more pumps to Bio Diesel, Flex Fuel or Bio Fuel? Would that provide the catalyst to help get these fuels at most of our gas stations in the United States?
Some say it is not enough, yet others think, well it might work? Now then, the other issues I see is that some of the franchisees may have “tie-in” clauses in their franchise agreements and not be allowed to sell the other blends. This is why the oil companies must have some type of buy in and therefore be at that negotiation table to figure out how to bring flex fuels to the American People.
If the underground tanks are plastic lined, new materials or 505 stainless with liner, the gas station owners may not have to change out tanks. Some of these blends are corrosive somewhat; some are not so bad. If you do not stipulate which blend, percentage or type, ethanol or diesel blend; let the market decide, the plan could work. Indeed I was not considering replacing tanks, unless they needed to be replaced anyway, rather using existing tank and two pumps. Two pumps could have the same fuel. Just if a station has 10 pumps then 2 could be flex fuels. Like a gas station, which has diesel, having 2 pumps for diesel the rest for gasoline.
This is an incentive of course and if the station did well, they would put in more, if not they would not, thus is would be reality based on market forces not government intervention. Remember I am totally free market, government needs to stay out of the way, only incentives and no additional regulations or taxation without any representation, based on Utopia seekers at the expense of an all star Ayn Rand character you see?
We already have incentives in 2006 sun setting in 2007 and 2008 for consumers to buy hybrids. Extend this to include bio-diesel cars, which can run either diesel or bio diesel, which will mean more hybrid vehicles on the road within the next few years.
We can deal with the Oil Companies, as they understand the game. Since 90% of gas stations are independently owned we have to do something for the other 10% which are owned by refineries or oil companies, so how about trade pollution credits if owned by an Oil Company? And remember if the oil company owns the stations, they do not need the $40K but they sure want the increased profit of lower taxes on the sale of the product. 7.5 cents is a lot per gallon. Help with their obligations for air pollution and increased profits, so they can use that money to build modified refineries.
Additionally I am concerned with environmentalist hit and run lawsuit tactics. The costs for an environmental impact report for a new refinery could be 250 million dollars prior to turning shovel number one. We have bureaucratic blockage, sound and fury infighting and partisan politics here too. There are several things we must do to get flex fuels into the market place to replace our dependence on foreign oil and perhaps this concept is a start. Consider this in 2006.
Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/
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