The first category of energy influences concerns companies or people who are awaiting a check or wire transfer from the government, for which money may not be available in the lack of a prompt offer to extend the debt ceiling. Projects which have experienced for Treasury renewable energy cash grants, but have not yet received the money, or that desire to soon meet the criteria.
7.8 billion to project owners and designers. Companies that sell energy to the Federal government and its own various branches. This includes start-ups offering renewable diesel and aviation fuels to the Division of Defense, as well as firms selling the national government the large quantities of electricity and conventional fuels it uses.
I will be participating in a joint Army/Air Force energy forum tomorrow. Companies with agreements related to various energy efficiency programs initiated under the stimulus or previous legislation, including weatherization. Individuals who receive Federal energy assistance. Beneficiaries of the Department of Energy’s loan guarantee program which have not yet secured loans are among this category. Note than lots of the projects detailed on the Loan Program Office’s site have only obtained conditional approvals, indicating that their funding has not yet closed. They would be vulnerable either to a protracted default or one which undermined confidence in the government’s “full faith and credit” to this extent a Federal loan guarantee wouldn’t assist in lining up lenders.
Refiners among others mixing ethanol into gasoline and collecting the Volumetric Ethanol Excise Tax Credit. Producers of biodiesel and cellulosic biofuels and small ethanol companies, which receive tax credits for producing renewable fuels. Oil and gas companies profiting from the various taxes credits and deductions that have been in the administration’s cross-hairs since it took office.
US manufacturers, including oil and gas companies, power generators, ethanol makers, and a wide array of non-energy recipients of the Sec. 199 deduction for manufacturing their products in the US. 4,000 for natural gas vehicles and other choice fuels. Car dealers and manufacturers depending on these tax credits to help sell their vehicles.
The looming “Carmageddon” in Los Angeles made the front web page of today’s Wall St. Journal, as residents there brace for the two-plus day closure of ten miles of the famed San Diego Freeway (I-405) this weekend. I regularly commuted on that stretch of the 405 between the Santa Monica Freeway (I-10) and the Ventura Freeway (US-101) when I lived on the West Side and proved helpful in Mid-Wilshire and later in the San Fernando Valley.
I carpooled for part of this time but also for most of it, like the majority of other Angelenos, I drove alone. What I think the state’s regulators have missed, however, is that simpler hybrids, which currently enjoy no other incentives, still appear to be an equally effective way to save lots of gasoline. That’s particularly true if most buyers of plug-in cars opting for them instead of non-plug-in hybrids, then instead of gas-guzzling conventional cars rather.
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Moreover, plug-ins didn’t lack for incentives already. 5,000 for qualifying plug-ins, which get reduced rates for electricity also. Then there’s the money the state is investing in recharging infrastructure. Whether or not the aggregate level of bonuses is justified on grounds of economics, environmental, and energy security benefits, throwing the HOV advantage together with them seems like an unneeded gilding of the lily. I have no idea whether this weekend’s Carmageddon will surpass its name, or like L.A.’s 1984 Summer Olympics lead to lighter-than-normal traffic because motorists got enough notice so they can plan forward. 14 trillion Federal government debts to cause its demise.
I’ve followed the ethanol subsidy for a lot longer than I’ve been blogging about it. As I had been reading a two-part evaluation of the changing ethanol situation in Biofuels Digest it occurred if you ask me to consider the dusty report from my long-ago M.B.A. 0.45 per gallon of ethanol blended, because of the 1978 Federal Energy Tax Act and the Highway Tax Act of 1983. That benefit was a lot more generous in then-current dollars than now but much smaller in aggregate. In the intervening decades, fuel with ethanol has extended from around 2% of the marketplace to nearly 100%. In much of the country it is now harder to find gasoline without ethanol than it was to find gasohol back then.