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The sixth reform is energy and environment. First, reform environmental laws and regulations. Exempt global warming from current environmental laws. Streamline regulation and expedite permitting. Restrict built environment development in resource-rich areas; for example, areas that may contain fossil fuels or other minerals or areas that are excellent for renewable energy development. Second, reform transportation policies. Cut infrastructure costs by repealing the Davis-Bacon Act, banning project labor agreements, streamlining project development procedures and using concession agreements and/or availability payments. Dedicate all transportation tax revenue to roads only, not transit (or anything else). Public transit should be privatized. By doing so, service will automatically conform to routes and schedules that are profitable. If desired, government can subsidize certain routes to provide more service than is profitable to provide by the private sector and/or subsidize low-income residents to partially compensate for an increase in fares. Freight taxes should be dedicated for freight-related purposes.
America has allowed its transportation infrastructure to fall into disrepair. States must agree to upgrade their roads to “good” condition by the end of twenty years. If they do this, the federal government will give $50 billion per year for twenty years to states from general funds to fix the roads in addition to federal excise tax revenue. It is estimated that state and local governments must increase their spending and taxes for roads by $30 billion per year to fully finance the upgrades. Then, the transportation infrastructure will be maintained via financing through a vehicle miles traveled tax, congestion pricing, and/or tolling instead of transportation fuel taxes. America will put a system of personal public transit, that is, driverless vehicles, into service, operated by the private sector. Personal public transit will find its equilibrium with mass public transit like trains, subways, and buses. Public transit subsidies will be eliminated and transit will be funded 100% from user fees. AMTRAK will be privatized. The air transportation system will be upgraded with a public-private air traffic control system and improved airport operations including security. User fees will be increased as needed for airports, land ports, seaports, harbors, and waterways.
Third, address new and existing buildings and equipment. Audit and improve the energy efficiency of existing buildings. To achieve higher thermal efficiency, consider installing better insulation, windows, thermostat, etc. Replace current heating and air conditioning systems with heat pumps. Install “tankless” water heaters that only heat water as it is needed. And install compact fluorescent light bulbs, light emitting diodes or equivalent. Government should partner with electric utilities to achieve this objective. Higher energy efficiency standards must be set for buildings and equipment.
The overall goal is to reduce energy use by 60% per capita. That goal is not to be set by regulation, but if the preceding proposals are implemented, 60% savings are achievable.
For example, how does America achieve a 60% reduction in oil consumption? Individuals will drive plug-in electric passenger vehicles that average 54.5 miles per gallon. Even if the cost of the vehicle as specified rose by $4,500, savings of 300 gallons of gasoline at $3 per gallon would pencil out to an annual savings of $900. This works out to a 20% return on investment. And, individuals will also use mass public transit like buses, subways and rail combined with personal public transit like driverless vehicles. People will travel by hailing a one or two-person personal public transit vehicle on demand, transferring to the mass public transit system running along major routes. Then, they will take a second personal public transit vehicle to their destination. For short trips, a single trip in a driverless vehicle direct to the destination will work. For commercial vehicles, one lane of all main roads across America will be upgraded to be capable of transmitting electricity to commercial vehicles like the trolley systems in operation in some cities. Electric buses and trucks will use this to move people and goods. When off the main roads, commercial vehicles will use natural gas. (Some noncommercial vehicles will use natural gas too.) Other proposals will reduce oil consumption further in order to reach a total reduction in oil use of 60%.
Fourth, increase America’s energy supply. “Surge” domestic fossil fuel supplies by supporting improved oil recovery and the development of tight oil in non-moratoria areas. Furthermore, assess selected development in moratoria areas. And use coal and natural gas as necessary. Assure America’s nuclear fuel supply, then build new nuclear power plants. Champion geothermal power. Develop variable renewable energy like wind and solar at the best sites. Keep hydropower. The possible net result of using less oil and increasing oil supplies is shown in the graph. Consumption declines while production “surges” and then abates. Imports will decline precipitously due to the additive effect of less consumption and more production. The US must enable a sustainable energy revolution by engaging in research and development on: nuclear power, including small modular reactors and the use of thorium instead of uranium. Also, weather forecasting, geothermal power, thermal storage devices, vehicle technology, highly energy-efficient buildings, industrial equipment and processes, and improved energy data collection. And upgrade the electrical grid including both its physical capacity and its capabilities. Make it “smart”, for example, with time-of-day pricing. Develop electricity storage, for example, pumped storage and batteries. The current electricity supply is based on nuclear, coal, natural gas, and hydropower. A possible future electricity supply could be based on nuclear and geothermal, which provide reliable, 24/7/365. Variable sources of energy like wind and solar can be used too but must be made reliable through technologies like conventional hydropower, pumped storage, and batteries.
The EPA should be promoted to federal department but the focus should be increasingly on ecological issues and less on mindlessly tightening up pollution control laws that have escalating costs but diminishing benefits. America should work to protect ecosystems. Land use should be improved by replacing the real estate tax with the land value tax; stopping subsidies for development in vulnerable areas; conserving, enriching and rebuilding soil; managing wetlands better; and engaging in more agricultural research and development. Preserve biodiversity by identifying and preserving ecosystem hotspots and controlling invasive species. Forests must be sustainably managed and America’s national parks refurbished. Fisheries must be enhanced by creating marine reserves and auctioning fishing rights to control the size of the catch. Water must also be managed for sustainability by auctioning water rights and upgrading water and flood management infrastructure. Reduce virgin material flows with taxes on consumption like the virgin materials tax. Material flows between the natural and human environments must be integrated by recycling metabolic and biodegradable waste to agriculture; recycling other waste; for example, using “take back” rules for manufactured goods; applying pollution control; and upgrading waste management infrastructure.
The U.S. must promote international change in resource use and, if necessary, greenhouse gas emissions. Global energy efficiency standards must be set. The world must eliminate energy subsidies and minimize the use of oil for electricity generation. Global research, development and demonstration must be conducted on issues like climate change, ocean acidification and cement manufacturing. If necessary, non-CO2 greenhouse gases and black carbon emissions plus aerosols must be controlled. If necessary, CO2 emissions must be controlled by imposing a global carbon tax and implementing CO2 reduction best practices; for example, for flaring. The U.S. will use carbon tax revenue to fund Medicare Choice. The VAT will be lowered to keep taxes revenue-neutral.
The real estate tax should be replaced with the land value tax. What is that? The land value tax taxes only the “site value” of land, not any improvements that have been made to the land. Why is this better than the real estate tax? “The site value of land is a creation of the community, not a creation of the landholder. A tax levied on the site value of land cannot be shifted nor recovered from the tenant by raising his rent. A tax levied on the site value of land is burdenless. The community, in taxing site value, is merely recovering a value it has created.” It can promote better land use. Tentative tax rates on unimproved land are as follows: agricultural: 0.5%; forests: 0.5%; other: 3.3%. It should be phased in over twenty years in order to give time for adjustment.
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