Experience
from the past two decades of alternative fuel and vehicle policy
reveals that a robust system of incentives must be put in place at
both the state and federal levels to encourage wide scale adoption
of non-petroleum domestic fuels.
Broadly
speaking, successful incentive programs:
1)
focus on reducing emissions or petroleum use,
2)
are large enough to cover incremental cost differences and entice
consumption, 3) are grant based so tax exempt entities are
eligible,
4)
are easy for consumers to receive and states to administer,
and
5)
are focused on building alternative fuel infrastructure as well as
encouraging use of
alternative fuels and vehicles.
