May 2011 Archives

What incentives, regulations, or other government actions should be used to promote more fuel-efficient cars? And what factors should convince Americans to buy those cars?

High gas prices seem to be a staple of Memorial Day, the kickoff to the summer driving season. As gas prices remain high, Congress and the administration will keep focusing on alternative fuels and overall energy issues. Lawmakers from both parties have introduced bills incentivizing alternative-fuel technologies. The administration is moving forward on its fuel-economy standards and electrifying the federal fleet.

What specific bills should Congress and President Obama adopt? What factors should go into drafting the next round of fuel-economy standards? Some top experts, including Energy Secretary Steven Chu in 2008, have said higher gasoline prices spur a shift to cleaner cars. Do you agree with that? Do gasoline prices need to stay high to trigger substantive action?

6 responses: Michael Brune, Peter Lehner, Amy Harder, Marlo Lewis, Allen Schaeffer, William O'Keefe

Should President Obama green-light a controversial pipeline that would send a half-million barrels of Canadian oil to the United States?

With high oil and gasoline prices, Congress and the administration have focused their attention more on increasing supplies of oil, both within the U.S. and from countries like Canada and Brazil. The International Energy Agency said last week that more oil production was needed to stave off an economic decline. This project would augment what is already America's top foreign supplier. But it would ship Canada's oil sands, which environmentalists argue causes more greenhouse gas emissions than conventional oil.

Since the project crosses international borders, it requires approval from the State Department. The department recently said it expects to issue a final decision by the end of the year. It has extended the environmental review of the project in response to concerns from environmentalists

What factors should the administration consider when evaluating this project? Should Congress pass any legislation to expedite the process? How have the political, policy, and economic conditions changed since we last asked this question in August?

12 responses: Margo Thorning, Erich Pica, Jack Gerard, David Kreutzer, Carl Pope, David Doniger, Peter Lehner, Paul Sullivan, Charles Drevna, Kenny Bruno, David Holt, William O'Keefe

Editor's Note: This week, former Michigan Gov. Jennifer Granholm, senior adviser to the Pew Clean Energy Program, is providing the question.

With gasoline prices high, federal policymakers are actively debating how to protect consumers from climbing costs and reduce our dependence on foreign oil. The challenge is significant, as transportation accounts for 70 percent of the nation's petroleum use.

Some policymakers propose ending tax incentives for petroleum companies that are reporting record profits and investing in advanced vehicle technologies and fuels. Others believe increasing production of domestic oil sources is the best way to combat unstable prices. Unfortunately, even with national production increasing 11 percent in the past two years (making the United States a net exporter), gas prices are hovering around $4 per gallon.

As the former governor of Michigan, I know firsthand the negative effect higher gas prices can have on citizens and the nation's auto industry. What is clear is that the only way to immediately blunt the effects of rising fuel costs is to consume less.

By September, the Environmental Protection Agency and the National Highway Traffic Safety Administration, with the California Air Resources Board, will release the proposed rule for mile-per-gallon standards for auto fleets, model years 2017-2025. They are considering a range of 47-62 mpg, reflecting an annual fuel efficiency increase of 3-6 percent.

If the easiest way to diminish anxiety at the pump is to make cars go farther on a tank of gas, shouldn't we pursue the highest possible standard? What role can hybrids and electric vehicles play in reducing emissions and improving transportation efficiencies?

22 responses: Margo Thorning, Gov. Jennifer Granholm, Paul Sullivan, Brian Wynne, Eileen Claussen, Daniel Gatti, Gene Karpinski, Brent Erickson, William O'Keefe, Gov. Jennifer Granholm, Bill Johnson, Amy Harder, Peter Lehner, Daniel Gatti, Allen Schaeffer, William O'Keefe, Robbie Diamond, John T. Whatley, Paul Sullivan, Phil Kerpen, Paul Sullivan, Brian Wynne

And what can Washington's policymakers and President Obama do about them?

The price of a gallon of regular gasoline in the United States is hovering around $4, while global oil prices remain at about $100 a barrel. Lawmakers on both sides of the aisle bicker about what can and cannot be done to lower oil prices and thus the cost of gas. Indeed, the amount of political rhetoric correlates to the rise in the cost of gas. Experts caution that no single action that Obama or Congress takes can sway the global oil market or domestic gas prices. But certain long-term policy decisions have proven to make some difference.

What factors go into the rise and fall of global oil prices? And what is the relationship to the cost of gasoline in the United States? What role, if any, do lawmakers and the president fill in controlling the market?

7 responses: Thomas J. Pyle, Carl Pope, William O'Keefe, Brent Erickson, Paul N. Cicio, Paul Sullivan, Robbie Diamond

Should the federal government stop doling out dollars to energy sources ranging from renewables to fossil fuels?

Debate is heating up on Capitol Hill and elsewhere about how much money Washington policymakers should give to energy sources, including oil, natural gas, wind, solar, and ethanol. Renewables and ethanol companies receive temporary tax credits that Congress votes to renew or not each year. Both industries say the subsidies are essential to their growth.

Oil and gas companies, meanwhile, have been receiving permanent tax deductions for nearly a century. Citing record-high profits of major oil companies, President Obama and nearly all congressional Democrats have continually tried -- albeit unsuccessfully -- to get rid of those tax deductions. House Speaker John Boehner, R-Ohio, and other House Republicans indicated last week they were open to repealing some of the tax breaks.

Should the government stop giving money - in the form of tax deductions and subsidies alike - to all energy sources or just some of them? Or conversely, should Congress make temporary tax credits for renewables and ethanol permanent?

23 responses: Tom Stricker, Richard Revesz, Gene Karpinski, Ned Helme, Amy Harder, Amy Harder, Jacqueline Savitz, Robert C. Sisson, Amy Harder, Barry Russell, Denise Bode, Thomas J. Pyle, Jack Gerard, Mark A. Cohen, Amy Harder, Carl Pope, Brent Erickson, Bernard L. Weinstein, Amy Harder, Charles Drevna, Phil Kerpen, Tom Buis, William O'Keefe