Commentary: Legislators Seek Plan for Alternative Energy Use

By William O Pitts

Can Oklahoma play a key role in making Americans more independent of foreign oil? Speaker of the Oklahoma House of Representatives Chris Benge, R-Tulsa, believes so.

“Oklahoma has an opportunity to play a vital role in making Americans more independent from foreign oil that takes advantage of the state’s natural gas production,” he said.

Following the lead of oil and gas industry leaders, such as T. Boone Pickens, the energy hedge fund operator who is moving into construction of wind farms and electricity transmission lines, Benge is calling for development of an alternative energy plan for the House Republican agenda next year.

While emphasizing the need for an “all-of-the-above” solution to include compressed and liquefied natural gas, coal, nuclear, geothermal, wind and solar energies, Benge stressed use of compressed natural gas, which he called the “cleanest internal- combustion fuel in the world.”

He is not alone. Randy Terrill, R-Moore and chairman of the House Subcommittee on Revenue and Taxation, has announced he will re-file legislation to create new tax incentives for those using wind, solar or geothermal energy.

“In Oklahoma we have done a good job of encouraging new oil and gas exploration. Now it’s time to support alternative energy technologies.” Terrill said.

His legislation creates a non-transferable tax credit equal to 40 percent of the total cost of installation for solar and wind energy systems and 10 percent of the cost for installing geothermal energy.

Earlier state Rep. Joe Dorman, D-Rush Springs, announced he will file legislation providing tax credits for the purchase of compressed natural gas vehicles or converting vehicles to run on natural gas.

“It costs far less to run a car on natural gas than gasoline, but that option isn’t realistic for most Oklahomans today,” he said.

He is right. Out of the millions of motor vehicles in Oklahoma, only an infinitesimal number are designed to run on fuel other than gasoline. The change will take time and probably more than tax credits. Dorman notes only an estimated 1,600 compressed natural gas stations exist nationwide, compared to nearly 200,000 gasoline stations. Lowering that ratio significantly will not be easy.

It clearly is a case of “chicken or the egg.” More cars will not be built or converted to CNG without places for them to refuel. Investments in such refueling stations are not likely without some assurance of a near-future market.

Tax credits for alternative-fuel cars or conversions are good but not likely to help the average family who may be “upside down” creditwise in at least one or more of their vehicles. Can they afford the thousands of dollars to convert those cars or buy new more fuel-efficient vehicles?

Then there is the problem of motor fuel taxes to fund highways. As gasoline consumption is reduced by these alternatives, how will the lost gasoline tax revenues and the revenues lost from these tax credits be replaced? It is not a question of whether, only how.

Like the illegal immigration problem, most of the solutions must come at the federal level. Sadly, none has been forthcoming in either instance. Terrill’s 2007 immigration law is a step toward enforcing federal laws but was limited by what the state could do. Similarly that may be true for alternative fuels.

Without new federal laws, the nation’s oil and gas reserves cannot be developed to their fullest potential and neither can alternative fuel use be properly encouraged, both of which could help promote energy independence for the United States. It is delusional to think these changes in energy policy can be made overnight or will immediately solve the problem.

In spite of vast natural gas reserves and being well-positioned for wind and solar power, Oklahoma cannot solve the energy problem alone. Still, Benge said “we have a real chance to be on the cutting edge of alternative-fuel energy policy in our country.”

William O. Pitts may be reached by phone at (405) 278-2880 or by e-mailing bill.pitts@journalrecord.com.

Originally published by William O. Pitts.

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