President Obama speaking at the Daimler/Freightliner plant in Mt. Holly NC

President Obama announces initiatives for reducing dependence on oil

New policy proposals by the Obama Administration would reduce cost for electric vehicles, spur adoption of other fossil oil alternatives in addition to electric vehicles, especially natural gas powered big trucks.

President Obama visited Daimler Trucks North America manufacturing plant in Mt. Holly, NC, to discuss his Administration's all-of-the-above approach on energy policy, and to announce changes to the initiatives supporting adoption of advanced clean technology vehicles, such as the plug-in vehicle tax credit. The setting, a truck manufacturing plant, reflects one of the policy initiatives meant to incentivize further adoption of natural gas powered trucks with tax credits for natural gas and electric big trucks, as well as liquified natural gas corridors meant for long-haul trucks. The policies reflect the Obama Administration stance on energy policy and national energy security, through moving strongly towards alternatives to fossil oil on the one hand, while on the other hand supporting expanded production of fossil oil.

This announcement comes in a context of rising oil and gasoline prices, as well as criticism over the higher prices. In part, no President has much power to control, in the short term, the price of gasoline because short term prices are set by the free market. Where a President can influence gasoline prices is with policies, such as the ones President Obama announced today. Let's first look at the policy changes announced today.

National Community Deployment Challenge: This is a new $1 Billion program meant to assist 10-15 cities across the U.S. to invest in infrastructure, removing regulatory barriers, and create local incentives for deployment of advanced clean technology vehicles. The policy initiative is similar to legislation introduced by Senators Merkeley (D-OR) and Alexander (R-TN) last may, the “Promoting Electric Vehicles Act,” in which the deployment communities would serve as models or "real-world laboratories". Obama's version of the policy is "fuel-neutral," allowing individual communities to choose between natural gas, electrification or even other alternative fuels.

One of the goals is to create five regional Liquefied Natural Gas (LNG) corridors enabling natural gas powered trucks to drive from coast-coast without burning oil, but more on that in a minute.

Making advanced vehicles more affordable: Perhaps this is in response to a critique of current electric vehicle incentives, that the current crop of electric cars are priced so only those with above-average wealth can afford them. In any case, there are four aspects to this change in policies.

First, is to expand eligibility for the tax credit to a broader range of vehicles. The fact sheet distributed by the Obama Administration doesn't explain this precisely, it likely means allowing natural gas vehicles to qualify. Currently the tax credit is for plug-in hybrids or electric vehicles.

Second, is to increase the maximum tax credit from $7,500 to $10,000, to change implementation of the tax credit allowing the vehicle purchaser benefit immediately rather than waiting until next April, and finally to remove the cap on the total number of vehicles for which the tax credit is awarded.


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"Further, recent research has shown that natural gas coming from hydraulic fracturing increases bad climate change consequences." I'm sorry, but in no way can I abide by that statement. The proof is feeble and more politically motivated than sensible. Climate change affected by fracking? Come on! One burst from any volcano surpasses that; and 4/5 of the earth is oceans, leaving a lot of area to gas out from the belching depths.
Of course, what Obama says is not often what he actually does, so we'll see how far this "initiative" actually gets. And no, I'm not a Republican.