SB 2016-043 - Gas Tax of 2016 (Passed Senate)

[Southern Senator North Carolina Yankee]

I actually have a big concern about this and it stems from a potential policy with regards to fracking.

Everybody hates fracking. I get that, but quickly remember something. Remember back in 2006 when everyone was talking about peak oil, gas prices were racing to the moon and then relief came not from energy, but the economy completely collapsing dragging down oil prices with it. What was missed is that during the course of the "recovery" I would say about 2010 to 2012, the world of energy was fundamentally transformed by the growth of hydraulic fracturing. This meant that even as the economy began to hit its stride, in 2014-2016, gas did not go up in price, it crashed again.

This was because not only did US regain lost oil market share, but also because Saudi Arabia and other OPEC countries began dumping oil essentially on the world market in a desperate ploy to regain market share and drive the frackers out of the field. I think this is what countered the 6% floor on unemployment that many said we would never achieve. Money that would have gone into gas, went into consumer spending boosting retail and other sectors. Granted, they aren't middle class jobs but that is a discussion for another thread.

The funny thing was, the science and technology was there in 2006 and 2007. However, everyone in politics, mainstream media and the like ignored it because it was coming from the energy sector and therefore they regarded the predictions/projections on same level of credibility as doctors paid for by big Tobacco. This was a serious situation, people talked of world wide apocalypse and industrial collapse with $500 a barrel oil and $15 a gallon gas. People worried that Iran had the ability to shut down the West by blocking the Strait of Hormuz. Fracking changed all that, and gave us a situation (in real life at least) with 4.6% unemployment and $2.00 a gallon gas, something people would have thought insane save with a time machine to the 1990's.

Now in the present situation, it makes sense to take some added gas tax and invest it in infrastructure. I am not even against putting some of it into the EPA. However, my recommendation, instead of banning Fracking, would be to instead invest a portion of that revenue into research into Energy Extraction technology.

At the end of the day, it was technology that was completely ignored that ended up saving us (literally saving us) and so I have every confidence, like with all environmental related situations, the answer is not to point a shot gun at your feet and pull the trigger, but instead to invest in technology and innovation that will render it pointless.

Go into a Wal-Mart and try to find an incandescent light bulb. Try to find a florescent for that matter. You can find a few of the former, you can find none of the later. Part of this is because of a mandate yes, but it was ultimately technology that produced this result. And I would point out that between LEDs and fracking of Natural gas that crippled coal, and caused many power plants to be converted like the one we live by.


It is my opinion that fracking is already nearing obsolescence and therefore alternative extraction methods are already in the works. Therefore a little nudge to bring up the time table is a far more responsible means of bringing an end to fracking and the risks it imposes on water and other concerns.

[Southern Senator North Carolina Yankee]

I guess I put them to sleep.

[Southern Senator North Carolina Yankee]

I guess I put them to sleep.

This is why I'm considering recesses during the Holidays

It is not a terrible idea, but I would recommend not recessing for more then a few days. Granted, it might be exceedingly difficult in the intermediate period between the holidays to get people on the site, we could potentially get some stuff done during that time and give people both Christmas and New Years off (perhaps a day either side of them as well).

[Southern Senator North Carolina Yankee]

I would once again restate (in shorter terms) my recommendation for investment in cleaner/safer energy extraction methods to replace fracking.

[Southern Senator North Carolina Yankee]

I am certain this is a very positive step.

[Southern Senator North Carolina Yankee]

Also, which metric of inflation is going to be used?

This is very important because some measures of it do not move much with the price of gas, while others have a much stronger correlation.

[Southern Senator North Carolina Yankee]

I am favorable towards the idea of using this as an alternative economic benchmark for this.

Remember while it is true that raising the price (through a higher tax) would on paper decrease demand and serve to lower the price through those means, it must be remembered that this is a rather regressive situation. The poor and working folks typically drive the minimal amount necessary and also have the most limited options/alternatives for transportation especially in the rural and run down parts of inner cities (varies some have better mass transit than others). So they the cost in full while middle class and upper class people can cut out vacations or minimize unnecessary driving. I have seen this situation first hand.

My preference would be to minimize the regressive effects of the gas tax should the situation change and this bill is based on the premise that the current prices are rather low.

As for supply and demand the best ways to reduce demand is through technological efficiency and deployment of those technologies, which takes longer once again for the working poor but is the best way to long term reduce oil consumption generally and keep the oil prices low. As for supply once again that is being addressed by the R&D included earlier for extraction technologies as well as other research into alternatives.

[Southern Senator North Carolina Yankee]

I would prefer some of the money raised go towards making sure the Federal Highway Trust Fund stays solvent, since that's been having problems for years and it makes sense to put the money people spend to use highways (gas) to use to make sure those roads stay safe and up to date.

Would the remaining 35% go there be default, since this is the gas tax?

Only 65% is allocated by my count.

[Southern Senator North Carolina Yankee]

So can this proceed then?

[Southern Senator North Carolina Yankee]

Once again, can Clyde be contacted about the topic lines.


Also, when these end in one chamber, is the leader PMing their counterpart?


I think it would be wise whenever a bill passes one chamber to notify the Speaker/PPT, VP and President.

[Southern Senator North Carolina Yankee]

LEINAD!!!!!!!!


I even PMed you to look for these.

[Southern Senator North Carolina Yankee]

I'll make sure to bring it to the attention of the Speaker.

Assuming more pass before I leave, I shall expect to see PMs with the others included from now on.