Via: Financial Times and NPR - A newly formed think tank of high profile establishment leaders has thrown down an energy policy gauntlet, delivering a report to the US Administration, Congress, and all citizens. "The Energy Security Leadership Council brings together some of America's most prominent business and military leaders for a major effort to support a comprehensive, long-term policy to reduce U.S. oil dependence and improve energy security. The Council will work aggressively to build bipartisan support. The Council is led by Co-Chairmen Frederick W. Smith, Chairman, President, and CEO of FedEx Corporation, and General P.X. Kelley (Ret.), former Marine Corps Commandant and member of the Joint Chiefs of Staff". FTs coverage profiles the ESLC position as pouring "...cold water on the Administration's goal of reducing dependence on foreign oil rather than on oil in general." Look below the fold for the opening salvo of ESLC recommendations.
TH Comments: 1.) Bravery in the face of uncertainty is just what we'd expect to see from retired Generals. 2.) Presence of the Chairman and CEO of Dow Chemical on the Council, reminded us that DOW popped up recently in a similar energy conservation context. 3.) Transportation looks to be the nexus of their position. 4.) ESLC looks to be staying out of Climate Change. It does not seem to come up. The net effect of increased conservation is good on both counts so no points lost.
1. reduce oil consumption
A. Significantly reform and then annually strengthen fuel efficiency standards for passenger cars and light-duty trucks.
— Reform the Corporate Average Fuel Economy (CAFE) system in order to make it more market-, size-, and attribute-based and to allow for the application of different but increasingly stringent standards.
— Set a target of 4% for annual increases in fuel effi ciency of all passenger cars and light-duty trucks weighing up to 10,000 lbs.
— Allow "off-ramps" if 4% is technically infeasible, unsafe, or not cost-effective for a given year.
B. Fund significant financial incentives for the domestic production and purchase of highly fuel efficient vehicles.
— Lift the current 60,000 vehicle-per-manufacturer cap on tax incentives for the purchase of advanced technology effi cient vehicles.
— Link the tax credit to the miles-per-gallon performance of the vehicles.
— Provide tax incentives for retooling to all manufacturers with existing U.S. facilities.
Projected savings: 4.3 millon barrels of oil per day (mbd)