Liquid Fuels

Today, Sean Slone and I release our latest report, Green Transportation.  The report highlights several initiatives states are taking to green-up their transportation system, including developing alternative fuels and electric vehicle infrastructure, as well as adopting policies that seek to reduce the overall number of vehicles on the road.

Green transportation - transportation that produces less greenhouse gas emissions than gasoline—is needed to mitigate climate change and reduce dependence on foreign oil. State and local governments are updating vehicle fleets to greener forms of transportation.

China officially passes the United States as the world’s largest energy consumer, according to the International Energy Agency, although the US is still the world’s leader in energy consumed per capita by a considerable margin.  However, that per capita gap is expected to decrease as the Chinese economy becomes wealthier and consumers purchase more energy intensive products.

In April I wrote about offshore drilling and how, politically, it wasn’t about the oil, given that the estimated recoverable reserves were unlikely to substantially impact our reliance on foreign sources of petroleum (the EIA Annual Energy Outlook 2010 assumes import reliance will remain near 50% through 2035, down from 57% in 2008); it was about securing votes for climate change legislation. 

State eNews Issue #44 | April 15, 2010


It’s unclear how states will be affected by President Obama’s plans to open up parts of the East Coast, the Gulf of Mexico and the northern coasts of Alaska to offshore oil drilling. What is clear, however, is this: Unless changes are made to the proposal, states will not receive any of the royalties from the oil production off their shores.

Suggested State Legislation: This Act creates a regulatory scheme for geologic CO2 storage. It directs the statedepartment of environmental quality (DEQ) to develop standards for regulating long-term, geologic storage of carbon dioxide (CO2) in the state. The Act provides a list of specific information that is required in permit applications for CO2 storage injection wells. It allows the DEQ to issue permits for pilot-scale CO2 sequestration and storage projects under current rules and regulations. It also requires the State Oil and Gas Supervisor, State Geologist and Director of DEQ to convene a working group to develop an appropriate bonding procedure and provides a $250,000 appropriation for the working group.

Suggested State Legislation: Kentucky legislative staff report that over the past few years, the Kentucky General Assembly has made great strides in formulating and enacting a comprehensive energy policy for Kentucky that focuses on reducing dependence on foreign oil by encouraging the development of alternative energy resources, and by encouraging energy conservation through the implementation of strategies focused on reducing energy demand.

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