Atlasia National Energy Act

[True Federalist (진정한 연방 주의자)]

1. The responsibility for the approval of oil refinery construction shall be taken away from the Environmental Protection Associationgency and given to the Department of Treasury.

2. The environmental regulations shall be eased to allow for easier approval of  refineries.

I can see why at first glance these two clauses would seem reasonable, but, the lack of new refineries being built has more due to the fact that improving existing refineries has been able to largely keep up with demand and that the uncertain future of US petroleum consumption has made the large investment needed to build a new refinery unattractive given the added costs of the infrastructure needed to connect a new refinery to the existing pipeline network than restrictions added by environmental regulations.  In addition, to reduce transport costs, it makes more sense to build refineries near the wellheads and US oil production is declining not increasing.

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Not all regional gasoline differences are due to EPA regulations.  Altitude and climate also affect gasoline formulas.  This should be reworded so that this doesn't prohibit these differences.

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A modest but doable increase, altho I would prefer a larger increase, but phased in at say the rate of 0.4 mpg for 10 years.  (A small improvement would be to give a small prod to metrification by expressing the CAFE standards in metric units.  Such a prod would not be unduly confusing as the CAFE standards aren't part of everyday commerce.)

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Actually, I'd favor a small increase with the increase being used to fund transportation infrastriucture (primarily, but not exclusively roads, but no mass transit operating costs, altho new trains and buses would be OK).  Better roads reduce commuting times (an effect which is to some degree offset by their also making longer distance commutes feasible) and thus save time and fuel consumption.

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Based on past performance, I strongly doubt the ability of government to predict which technologies will prove to be useful in the future.  Anyone else here remember the oil shale debacle of the early '80's?  The ethanol tax credit makes more sense as a farm subsidy than an energy policy, but I'd prefer that a biodiesel subsidy also be included, if Atlasia is going to further subsidize ethanol ptoduction.

[True Federalist (진정한 연방 주의자)]

Ernest,

I disagree with your analysis on oil refineries.  There is a reason that refineries operate at 96% today, but at 76% twenty-eight years ago.  The reason is we need more refineries.  Improvements to current refineries can only go so far and has a diminishing marginal return, since many of the old refineries have had to shut down they're so old.

I agrre that 96% is too high, but 76% was too low and contributed to the lack of new US refineries being built.  I don't deny that we have a pinch in refining capacity at the moment, but I am confident that the market will swing the pendulem the other way regardless of where the environmental standards are set.  The long lead time in refinery construction causes me to believe that this will not serve as a solution to our short term energy crunch.

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With approx $60/bbl oil in Atlasia, gasoline is probably around  $2.50/gal on average in Atlasia.  A 3-4% reduction in gas prices will have a very minimal effect in the short term, one that I don't feel is worth either cutting the transportation budget in half or severing the link between gas taxes and transporttation infrastructure.  Once that link is cut, one could possibly see undera future administration an increase in the gas tax with the revenue going into the general fund instead of funding transportation.  I am very leery of severing what has proven to be a very useful arrangement with the gas tax in America.  I can understand not increasing the gas tax during the current oil crisis, but I don't see a reason to cut the tax either

[True Federalist (진정한 연방 주의자)]

I hope people don't get egg on their face from celebrating too soon.  It is possible that a Senator could choose to change their vote as voting is still open and will be until either Steven Nick votes or until Friday and the vote is officially closed.  It is true that without avote change this bill passes, but such a change could still take place.