How the Government Can Help Our Gas Problem

The government has a critical role to play, both in funding the research and development to cultivate new technologies and to establish price signals that will stimulate markets and investment behavior that can pull technologies along at a sufficient rate and scale. Clearly the government's push for research and developme needs to be balanced with the pull of economic incentives, regulations, taxation, and other guarantees leading to the private sector playing a stronger role in the future.

In the United States, the Energy Independence and Security Act of 2007 (P.L. 110-140, H.R. 6) was signed into law on December 19, 2007. This broad reaching law consists mainly of provisions designed to increase energy efficiency and the availability of renewable energy. Three provisions are specifically transportation-related focusing on Improved Vehicle Fuel Economy, Increased Production of Biofuels, and Energy Transportation and Infrastructure. This law is the U.S. government's push in the technology innovation chain.

The first provision, Energy Security through Improved Vehicle Fuel Economy establishes a standard of 35 miles per gallon for the combined fleet of cars and light trucks by model year 2020. It calls for expansion of the standards to include medium- and heavy-duty trucks and work trucks. The law establishes various purchasing incentives, credits, grant programs and a loan guarantee program to help improve vehicle technologies.

The second provision, Energy Security through Increased Production of Biofuels increases and extends the previous renewable fuels standard minimum annual goal for renewable fuel use from 5.4 billion gallons to 9.0 billion gallons in 2008 and 36 billion by 2022. Starting in 2016 all of the fuel increase in the renewable fuels standard target must be met by advanced biofuels, defined as fuels derived from other than corn starch. There are also numerous research and development and grant programs to encourage biofuels production and use.

Another provision, Energy Transportation and Infrastructure establishes the Office of Climate Change and Environment at the Department of Transportation (DOT) to plan, coordinate, and implement strategies to reduce transportation-related energy use, mitigate the effects of climate change, and address the impact of climate change on transportation systems and infrastructure. It also includes initiatives for marine and rail transportation and increases the federal share for congestion mitigation and air quality projects up to 100%.

The Environmental Protection Agency promotes and expands the use of environmentally beneficial alternative fuels and vehicles as well, by providing the states with tools, such as benefits models, State Implementation Plan Credits, and the Clean Fuels Fleet program. The EPA also coordinates with the Department of Energy and Department of Transportation so that their Energy Policy Act and Transportation Equity Act of the 21^st Century programs promote alternative fuels and vehicles having the greatest environmental gains.