Oil Tax, Natural Gas Tax Reduction Among New Policy Proposals

Apr 25, 2013

Five policy changes would be simple and feasible ways to reduce emissions and dependence on foreign oil.

That’s according to a proposal by the National Energy Policy Institute at the University of Tulsa. One of the report’s authors is journalist Charles Wohlforth.

“What it really is,” he explains, “is a demonstration that there are policies out there that are ready to be adopted that are low-cost and will have a big impact on these issues.”

“So there’s no excuse to say it’s too expensive, or the technology’s too expensive,” he said.

From the report, the five recommendations:

The five elements in our package of policies are: • NEPI Clean Energy Standard: Establishes a 2035 goal for clean electrical generation and requires technology-neutral, market-driven decisions by utilities to use low-carbon and renewable fuels to achieve this target. • Oil security dividend: Imposes a modest, graduated oil products tax that is fully rebated through the tax system to the public. • Automotive fuel economy: Follows the Corporate Average Fuel Economy (CAFE) Standards as adopted in 2012, and considers an alternative ‘feebate’ mechanism with similar impact and potential advantages. • LNG trucks: Provides a temporary fuel tax reduction to encourage the nascent shift in the heavy truck market from diesel to liquefied natural gas (LNG). • Energy efficiency: Extends existing incentives for energy-saving appliances and building codes and home-based renewable energy.