Now that Sen. Barack Obama has been officially anointed as the Democratic Party's choice to head the ticket in November, it's perhaps time to take a closer look at some of his policies as they relate to the subject matter of this blog. Over at Green Fuels Forecast, they have a pretty thorough run-down on what Obama is promising and some of how he proposes to pay for it. Contrary to the sound-bites you here on the typical mainstream media news report, both candidates actually have relatively detailed proposals and its up to you to decide which is the best for the future of the United States and indeed the world.

Obama has set some pretty aggressive goals for moving to renewable energy sources and getting plug-in vehicles onto American roads in large numbers. He also proposes a Clean Technologies Deployment Venture Capital Fund to help get new technology beyond the research stage. What's interesting about this point is the VC Fund terminology. Venture Capitalists don't typically invest their cash out of concern for the common good. They usually want a stake that they can cash out at IPO or Google buyout time. Will Obama's VC fund also take ownership stakes in return for government investments? Will they hold or sell those? It's an interesting approach and if they follow the typical VC model and sell successful investments, it could help raise some of the cash needed to fund more. It's also a mechanism that could use public funds in a market based way. Check out the rest of the plan at GFF.

[Source: Green Fuels Forecast]

Democratic Presidential hopeful Barack Obama has proposed a new ten-year $150 billion energy plan today in Michigan. A large part of the plan centers around transportation -- both the use of petroleum and the types of cars we are to drive in the future. For automakers, $4 billion in loans and loan guarantees would be made available for PHEV development, with one-million of the vehicles to be ready for sale by 2015. For consumers, a $7,000 tax credit would be offered for their purchase of said vehicle. Also, in a more short-term effort, Obama proposes that the U.S. sells some seventy-million barrels of oil from America's strategic petroleum reserve.

While those PHEVs are being developed, Obama's plan would increase fuel economy standards 4-percent per year. What's more, Obama would mandate at least 60 billion gallons of advanced biofuels by 2030 while requiring that fuel producers reduce their fuel's carbon emissions by 5 percent within 5 years and 10 percent within 10 years. To make those biofuels have as large an impact as possible, all new vehicles would be required to have flex-fuel capability within four years.

Lastly, the entire White House fleet will be converted to plug‐ins within one year (does this include the new presidential limo that will debut in January?) and half of all cars purchased by the federal government will be plug‐in hybrids or all‐electric by 2012. See the entire plan in .pdf form at this link.

[Source: Barack Obama - .pdf]

Finding it tough to come up with the cash to keep your tank full? You are most definitely not alone. To offset the rising cost of gas in the country, Democratic Presidential candidate Barack Obama has called for a new $1,000 consumer energy rebate, which he says, "will be enough to offset the increased cost of gas for a working family over the next four months." From what we can gather, the actual rebate amount would be $500 for an individual or $1000 for a married couple.

Wondering where the money would come from to? According to the plan (.pdf link here), "The rebates would be fully paid for with five years of a windfall profits tax on record oil company profits." The report further says that Obama recognizes that the oil companies are being well managed, but that much of their record profits are coming solely due to the rising cost of oil. Similar windfall taxes are apparently being considered in the U.K.

[Source: Associated Press via Yahoo News]

Barack Obama says that now that Hillary Clinton has changed from an anti-ethanol position to one supporting ethanol in her new energy plan, she might switch back under pressure. Here's what he said:

It's hard to believe that she is a strong ethanol supporter given her track record and this is something that represents a major reversal and what we need is consistency on these issues. ... If she's willing to shift this quickly on this issue, we don't know whether she will shift back when it gets hard.

Clinton has defended her record on ethanol, saying "I never was against using ethanol. I never was against the idea that we had to try these alternatives." Obama still thinks she could have done more. Again, Mr. Obama:

These are a lot of votes and over a lengthy period of time. ... If she were committed to alternative energy, there certainly would have been opportunities for her to amend the legislation or alter it in ways that would address any concerns that she had.

Tell us what you think. Could Hillary have shown more support for things like forcing cars to be flex fuel or adding ethanol pumps at gas stations? Do you think Hillary's support for ethanol after the election will be lukewarm? Do you think Hillary is right for not showing too much support for ethanol?

[Source: Des Moines Register]

I am starting to feel sorry for Detroit. Leading Presidential candidate Barack Obama's new TV ad, titled "Quiet," tells a joke about going to Detroit and calling for a higher fuel efficiency standard. You can watch the video for yourself below the fold. Speaking to an audience, Barack explains he cannot accept sending 800 million dollars a day to hostile nations and in the bargain, melt the ice caps. Barack continues, saying, "I went to Detroit to insist we had to increase fuel efficiency standards. I admit, the room got kinda QUIET" (hence the title of the ad). The audience laughs. We need to tell them the truth they need to hear says Obama, the crowd applauds and the 30-second ad ends.

In August, I was shocked to hear CAFE mentioned in a TV ad at all. A few days ago I wrote about how John McCain went to Detroit and said we should "increase CAFE" and got "no applause." Yesterday, I wrote about a shift in the GOP debate to vehicle energy solutions, which included Sam Brownback saying, "I think one of the key answers is right here in Detroit." Why the sudden interest in Detroit, candidates? Is Detroit-bashing playing to the politics of the primary states or newspaper headlines? Maybe it's the energy bill debate, which includes a new CAFE standard, brewing in Congress?

Whatever the reason, Detroit, the political wind is not blowing your way. I suggest a little bending. Give Hill and Terry a call or something. You are the punch line to a joke in a TV ad. That can't be a good sign.

[Source: YouTube]

U.S. Representative Ed Markey, (D-Mass), who is head of the Select Committee on Energy Independence And Global Warming (whew), proposed the "Plug-in Hybrid Opportunity Act of 2007" yesterday. The plan would give a 35 percent tax break to hybrid owners who purchase and install the components to convert their vehicles to plug-ins. Perhaps this all sounds familiar, which makes sense when you consider the (ridiculous sounding) "Fuel Reduction using Electrons to End Dependence On the Mideast Act of 2007", named so they could cleverly call it the "FREEDOM Act" for short. That plan would have given consumers $7,500 in tax credits for making the plug-in conversion, and was proposed by the bipartisan group of Maria Cantwell (D-Wash), Orrin Hatch (R-Utah) and Barack Obama (D-Ill). The specific language was removed from the energy bill which was recently passed. Will it make a comeback? Who knows... but take a look at this article and let us know what you think, that is, if you have an opinion. Here, I'll start off by giving an opinion of my own: including Rob Lowe in on the hearing is a dumb gimmick. OK, your turn!

The Auto Alliance, oftentimes the "bearer of auto-related bad news", is acting as the mouthpiece of the major automakers (and their dealers) once again. We already told you that Toyota doesn't like the legislation, and apparently neither do the other manufacturers. They cite the fact that the warranty will be voided if the conversion is done, and even suggest that emissions might be worse afterward. I honestly can't see how that would be true, but I suppose that when changes are made to the vehicle's on-board computer, or ECU, that it could negatively impact the emissions. More testing would obviously be necessary.

Of course, there is no law against purchasing the components to switch your hybrid to a plug-in, and this legislation would support that effort. Have you ever heard the saying "Sacrifices to the God of Speed"? Well, would you be willing to make sacrifices to the God of Green? How about if there was a big tax incentive to do so?

Related:

• Three Senators unveil pro-plug-in hybrid FREEDOM Act
• CalCars: Toyota does not approve of plugging in your Prius
• EDTA president says plug-in bill failure had nothing to do with PHEV technology
• What about celebrating dependence on this fourth of July?

[Source: Detroit News]

Responding to criticism from Barack Obama that "three giants of American industry (Detroit automakers) are hemorrhaging jobs and profits as foreign competitors answer the rising global demand for fuel-efficient cars", Bill Ford suggested that Obama trade in his Chrysler 300C for a Ford 500. He also invited Obama to visit the Ford plant in Chicago where the 500 is built to see what it takes to build an automobile. Automakers, including Ford, have been saying that politicians who have little understanding of the research, development and engineering that goes into making modern automobiles should not be making laws regulating their emissions. They believe that there are better ways of reducing harmful greenhouse gases that escape the tailpipes of our cars, and that other industries should be included in the process of reducing emissions as well. Click here to read more of Bill Ford thoughts and we'll have more on his recent comments in a bit.

[Source: Detroit News]

Sen. Barack Obama (D-IL) wants to exchange automakers' retiree heathcare costs for improving fuel efficiency.

In a speech before Georgetown University, Obama says other steps are also needed, such as raising CAFE standards by three percent each year for the next 12 years. That would mandate passenger vehicles averaging 44mpg in 2020. Other initiatives include federal funding to encourage flex-fuel vehicles and to require all government-owned vehicles be flex-fuel capable. Lot of corn in Illinois, right?

Automakers have long stressed that they are at a disadvantage to many import companies from countries that subsidize healthcare costs. Obama's idea is worth considering if it doesn't lead to long-term obligations.

[Source: Georgetown University]

Wal-Mart is a U.S. retail giant, if not THE retail giant, selling almost anything inexpensively. Are Americans also ready to fuel up on biofuel at their local store as well? Well, they may soon have that option. Dow Jones reports that the company is considering selling the biofuel E85 (85 percent ethanol, 15 percent gasoline) at its 380-plus gas stations. Such a plan would significantly add to the current 700 E85 fuel stations across the U.S. Senator Barack Obama of Illinois has been reported to have contacted Wal-Mart and other retail giants on such a possibility.

[Source: Dow Jones via Brownfield]