- Obama's recent Approach to American Energy Competitiveness and Security
Just one week ago, president Obama visited a manufacturing plant of Daimler in Mt. Holley. Here he laid out what could be called blueprint for a new era of energy policy; namely a $1 billion National Community Deployment Challenge to spur deployment of clean, advanced vehicles and expansion of advanced vehicle tax credit. This stimulus package is geared towards strengthening the economy via new jobs and technology innovation, securing nations energy independence, which also enhances national security - a win win situation.
Details about the proposed stimulus are for instance raised tax credits for electric and hybrid-electric vehicles (EV) from currently $7,500 to $10,000. Nicely so, these are now direcly transfarrable to the car dealer at the moment of purchase reducing the barrier-to-entry into the EV era. Positively surprising is the news that many other technologies will be supported not only EV's, that are currently not covered. Furthermore, technology researchers will joy since Obama also announced a research challenge ('EV everywhere') to invest in key technologies which target to make EV's as easy to use as gasoline cars. The time-target is the end of the decade. The vision is to get the EV sicker and operation price down so that the average american family can afford one, corresponding to a monthly saving to gasoline driving of $100 per month This aspect resonates with me strongly, since in the end it is the millions of people making up a society who have to adopt to this new way of living.
Most significant car efficiency standards in 3 decades
In addition the president announced a meaningful update to increase car and light truck efficiencies; by the year 2025 the car millage standard will be 54.4 miles per gallon saving $1.7T at the pump since 2011. Furthermore heavy-duty trucks are under 'clean-attack' as well; the administration finalized the first standard addressing green-house-gas emission for these type of vehicles during a test period between 2014-2018, saving truck owners and companies an estimate of $50B in fuel costs.
In the 'Race-to-the-top' challenge the president plans to catalyze the green vehicle adoption in 10-15 pilot communities. The idea is to reform the infrastructure, remove regulatory barriers and to create local incentives. The vision is to scale-up from these model communities towards reaching mass-scale. The plan envisions to give the communities the freedom to decide whether 'electrification', natural gas, or other alternative fuels are be the best choice for them. Furthermore, the program plans to support 5 regional liquid-natural-gas (LNG) corridors. LNG is becoming more and more interesting for the U.S. since recently huge amounts of national resources were found. This gas can be liquified during which the volume shrinks by a factor of 1000, making it easier to transport.
In conclusion, it is an aggressive move but an innovative one. With many investment firms turning their heads towards renewable energies and technologies, the Obama administration seems to have realized that making surgical investments is a secure and fast way to move America's economy and society forward.
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