Friday, November 30, 2007

Too easy for government

I just read a report on Red Herring about midwestern governors agitating for biofuels at the pump by 2025. Here’s the quote:

Governors of Indiana, Iowa, Kansas, Michigan, Minnesota, Ohio, South Dakota, Wisconsin, and the premier of Manitoba endorsed the Midwestern Greenhouse Gas Accord. By 2025, they want 33 percent of gas stations, or around 9,700 locations, in the region to offer E85.

Now here’s a simple solution that will drive the oil companies nuts - The state builds E85 stations, sells the fuel at cost without taxes. Think that will drive people to the pumps? Try treating it as a public service not an income source.

The other way is to have the state build the stations, price the product competitively, and use the profits to cut taxes - make the state a profit making enterprise.

A third way is to have the state make tax lean properties available at the cost of the tax lean to companies that will build E85 and biodiesel stations at selected locations.

The GM website claims 2.5 million flex fuel vehicles on the road now so there is a market waiting.

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