Biz and Military Group Pushes for More Domestic Drilling and Changes in Energy Regs

GreenTransitNews | May 21, 2016

An alliance of business and retired military leaders focused on mitigating the threat of oil dependence to America’s economic prosperity and national security has issued a call to change national regulations and business practices.

The group issued what it calls a “comprehensive pathway to bolstering Americas energy security” and labeled it “The National Strategy for Energy Security.”

It attempts to offer a range of solutions to the challenges created by “recurring extreme oil price volatility, exacerbated by the anti-market conduct of foreign governments and national oil companies.” The participants include FedEx Corporation Chairman, President and CEO Frederick W. Smith and 34th U.S. Marine Corps Commandant James Conway (Ret.).

Smith noted: “Were on the cusp of the largest ground transportation transformation since the invention of the Model T, and we must ensure that unnecessary and outdated regulations don’t encumber its potential. Through a wholly new value proposition that promises a fundamental shift in how we move people and goods, autonomous vehicles will accelerate the adoption of advanced fuel vehicles while making our roads safer and our transportation system far more efficient.”

To advance the next generation of transportation technologies, the group issued several recommendations:

Remove federal regulatory obstacles to the deployment of autonomous vehicles and allow broad commercialization once they are as safe as todays cars.
Federal rules on autonomous vehicles should preempt state standards. Varying state AV standards would create a patchwork of regulations and stymie adoption.
Federal regulation on automotive safety should evolve to a more flexible and collaborative model based on performance-based standards.
Establish autonomous vehicle deployment communities to test the technology and encourage public engagement.
Create an alternative liability framework for early autonomous vehicle deployment to encourage adoption.
State and federal governments should encourage the utilization of autonomous vehicles to expand mobility options for underserved groups.

These suggestions were supplemented with policy recommendations to accelerate the adoption of advanced fuel vehicles powered by diverse energy sources:

Restructure federal tax incentive for electric vehicles to remove the 200,000 vehicle-per-manufacturer cap and phase down beginning in 2021.
Reduce the value of the federal EV tax credit for vehicles over $40,000. Remove it completely for vehicles over $55,000.
Create incentives for medium and heavy-duty advanced fuel vehicle purchases.
Create performance-based standards for freight trucks that enhance freight efficiency and reduce oil consumption without negatively impacting road infrastructure or safety.

The report also highlights what it terms “the strategic importance of the United States vast oil and gas resources and advocates for the responsible and safe production of oil on currently closed-off federal lands, including in the Arctic and portions of the Outer Continental Shelf.”

And now to the heart of the story.

One challenge here: oil is fungible. It flows and goes to those who pay the price. Thus, oil sourced in any one particular country does not necessarily stay there.

In any event, this group seems to advocate the notion that what is drilled at home, stays at home. History may suggest otherwise.

According to Energy Security Leadership Council co-Chair and 34th Commandant of the U.S. Marine Corps General James T. Conway (Ret.) “…taking advantage of our own abundant resources will allow us to better prepare ourselves for oil price shocks and supply disruptions in unstable oil producing regions, like the Middle East or Venezuela.

The Council recommended policies that would “take advantage of increased U.S. oil production to improve American energy security and combat manipulation of the global oil market.”

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