Impose higher federal and or state gasoline taxes now.  Ok, I said it.  Call it a ‘Green Fee’ if you want.  Call it anything you want, but provide funds to continue the recent progress toward a greener economy.

Some background and assumptions which I used in recommending this;

BACKGROUND

The federal gas tax has been in place since 1932.  Contrary to popular belief, all monies do not go to highways or infrastructure, in fact that didn’t even start until the 50′s, prior to that it was used to fund wars.  Since 1980 the tax has increased dramatically from 4cents to 18cents per gallon.  Yet, we still have a call from Obama and congress for Infrastructure spending for roads, bridges and the like.  What have you been doing with the money Congress? Another post on that topic.

Starting in 1919 with Oregon, states started to get on the bandwagon with this new tax approach.  All states have some type of tax, whether it is a gas tax, sales tax, or excise tax (call it what you want) on gasoline.  Here is a map with all states combined taxes on gasoline from http://www.taxfoundation.org/publications/show/1054.html

On average around 40cents per gallon and $281 per person per year.

ASSUMPTIONS

1. The US economy and consumers can handle a gasoline price of $3.50 per gallon without substantial economic slowdown
2. The price of Gasoline will fall below $3 per gallon by the end of the year.
3. Funding of green initiatives from both candidates will be delayed due to funding for the economic crisis and the continued war
4. The government, federal and state, has limited spending discipline with gas tax revenue
5. Higher retail gas prices encourage a ‘green consumer’

PROPOSAL

Impose a scaling green fee on gasoline prices. The fee would scale with the underlying per barrel of oil price.  As oil prices fall the fee increases, as it increases the fee would decrease.  The intent is to maintain a retail price around $3.50 per gallon.  The federal government would collect the fee.

Pay the Federal government a processing fee of 10% for collecting and enforcing the collections.

On a quarterly basis, the federal government will distribute the funds to an agreed upon ‘Green Investment Council’, which is managed by US Venture Capitalist firms.  Investments are made by this council in ‘green’ technologies and companies that meet the specific goals of alternative energy production, job creation, and investment return.  The overriding goal is investment return as it is with most Venture capitalists.

At no time will these fee funds take a majority position in any company, all use of these funds need to be along side private investment and will be non-voting shares.  Funds will be managed similar to the way investment funds are managed now. Contributors buy into an investment fund, expecting a return.  The revenues from this fee will be treated the same.  Congress will sit at the table as the investor.

In this way the Government is directly investing the fee from consumers in ‘Green Technology’, not funding wars or social security or corporate greed, or whatever they have been spending money on lately.  It is similar to a charity that can prove that the monies go directly to the recipient and not to the bureaucracy.  I would rather give money to those charities.

If ideas such as the Cash for clunkers http://mygreensuit.com/2008/08/03/cash-for-clunkers/

or Conservation Corps http://mygreensuit.com/2008/04/07/conservation-corps/

or Incent to Invent http://mygreensuit.com/2008/04/07/incent-to-invent/

have any standing they will need to prove themselves to the ‘Green Investment Council’

SCOPE

At current prices of $3.29 we are talking about a 20cent fee, which would equate to around $25 billion annually in the investment fund.  If the gas price actually reflects the falling oil price then we would double the investment amount per year to $50 billion.  This money, in the right hands, and please understand, Congress is not the right hands, would go a long way in funding businesses that can meet the environmental objectives, provide jobs and get the job done quicker than any government run program.

Don’t stop now.  Don’t get comfortable again. Keep it Green.

Like a dieter who loses a few pounds after the first week, let’s not settle back into our old habits and think we will keep it off.

Good progress has been made making the public aware of the need to reduce our dependency on oil by looking for alternative, sustainable alternatives.  Politicians talk about it, CNN reports on it, Newspapers write about it.  Now that oil prices are falling http://mygreensuit.com/2008/10/12/oil-prices-falling/ again let’s not get lazy. We need to keep the momentum going.

The current political campaign has not discussed energy alternatives very well.  There has been too much time and discussion on more drilling, clean coal and nuclear.  Hopefully, as a country that rises to challenges, that has the best workers that are innovative and creative,  we can do better. This are a sad statement to our current capabilities if we think we have to use the crutch of coal and nuclear.  Leaving this aside, and giving kudos to the millions spent by T.Boone Pickens  www.pickensplan.com , discussion of alternatives have become mainstream.

People are expecting progress.  I am expecting progress.  From venture capitalists to scientists, to the residential owners, to commuters we are all expecting the excitement to continue.  Are we so shallow that the fact that gas prices come down 25% that we will no longer look for more efficient cars?

I think things have fundamentally changed.  The fat, greedy, energy hungry American has to change.  This is a forced diet, an intervention by the globe that must continue. We have already moved towards solutions.  Automakers have adapted their designs to be more energy efficient, venture capitalists have funded billions of dollars into the green economy.  They will expect a return on their investment.  Assuming they produce good products at a reasonable price, consumers will buy them and we can ‘Keep it Green’.

The idea, which is being proven effective every day by companies like Climatemaster and Waterfurnace is a real choice for new construction, public buildings and upgrading your home system.

The earth absorbs almost 50% of all solar energy and remains a nearly constant temperature of 50°F to 70°F depending on geographic location. Working with an underground loop system, a geothermal unit utilizes this constant temperature to exchange energy between your home and the earth as needed for heating and cooling.

In winter, water circulating inside a sealed loop absorbs heat from the earth and carries it to the unit. Here it is compressed to a higher temperature and sent as warm air to your indoor system for distribution throughout your home.

In the summer, the system reverses and expels heat from your home to the cooler earth via the loop system. This heat exchange process is not only natural, but is a truly ingenious and highly efficient way to create a comfortable climate in your home.

Horizontal Loops are installed in areas where the soil conditions allow for economical excavation. Taking up more land area than any other loop type, they are used where space permits. Trenches are normally 5 feet deep. Normally, several hundred feet of trench is required.

Vertical Loops
Vertical Loops are used extensively where land area is limited. A pair of pipes with a special U-Bend assembly at the bottom are inserted into a bore hole that averages between 150 to 250 feet in depth per ton of equipment.

Some cost comparisons;

Driving down the Mass Pike every morning, by myself, in my hybrid, I always wondered why wouldn’t someone build a Disney style monorail down the middle of the Turnpike. Thinking about it, I guess it is not much different from current rail systems in town. How about a more flexible approach, where you can travel where and WHEN you want, not on a train schedule but on your schedule and do it with privacy. Some numbers that back up the need for creative thinking for commuters.

• The need in for individual transit, there are 1.08 people per car in rush hour(s).
• The average American worker loses a workweek per year to congestion.
• 5 billion gallons of gas are wasted yearly in congestion (ASCE).
• Rush hour gets longer and slower every year.
• Gas is at record highs
• China used 40% of the world=E2=80=99s cement and 27% of the world’s steel last year. The average American uses 27 barrels of oil per year. The average Chinese uses 1 barrel per year. If they go to 2 barrels oil is unlikely to drop in price.

The 5 billion barrels sitting in traffic is the number that stands out for me, that is roughly equivalent to our oil imports per year in the US.

This company has a bunch of patents of a practical solution.

http://www.jpods.com/Tech.html