The issue with our vehicle fuel is using America's resources, which will stimulate our economy and end the import drain.
We should all agree that CNG is the bridge solution to our transportation fuel needs. Boone Pickens Natural Gas Act addresses the trucking industry. America also needs a choice for it's auto fleet. The problem is the major oil companies control our present choice of gasoline or diesel with their marketing system to the retail sales locations, utilizing branding agreements with distributors and dealers. CNG must be included as an allowable product to be installed and sold under those agreements.
The market place will buy CNG vehicles if fueling locations are available. The government has provided incentives for this conversion for over 25 years thru tax credits and accelerated depreciation expense, but the distributors have not responded. In order for a CNG energy plan to work, the fueling infrastructure and vehicle manufacturing must occur simultaneously.
What America needs is the 555 plan. Legislate or agree by referendum, that the 5 major oil companies and 5 major auto makers must install CNG in 5% of their retail locations and build 5% of their vehicle fleet as dedicated CNG fueled in the first year. Then increase that another 5% every year for 10 years. After 10 years our oil imports will be substantially reduced and the price of oil will fall due to reduced demand in the USA.
The oil companies’ investment at 200 thousand per location would be about 23 billion dollars. The oil companies have the capital to do it. Allow them to repatriate overseas profit reserves specifically to build this CNG infrastructure. Put the corporations’ offshore dollars to work in the USA. Bring our oil import dollars back to America. Also, extend the prior tax credits.
Our trade deficit will decrease as we will not be sending a half trillion dollars out of the country every year. Our state and federal tax revenue will increase as taxes on profits from gas sales will be recognized in the USA rather than offshore. Jobs will be created building the CNG fueling infrastructure and CNG vehicles. Vehicle emission pollution can be reduced 25%. Most important, the USA will not be dependent on unfriendly countries.
Boots on the ground did not win World War II alone. It was the total commitment by our citizens, industry and government. It's the same kind of commitment we need to win this battle for energy independence.