The goverment will drive up the cost of gasoline until we are begging for natural gas and hybrid cars. If you donj’t believe that this is their goal, I have a bridge to sell you.
If it needs to be subsidized, then its STILL not economically feasible
Currently in California you can fill an NG car for about $1.30 for the cost of the natural gas and the cost of the electricity to pump into the car using a home comrpessor. With a multifuel vehicle you can use either gasoline or NG meaning when the usual suspects drive up the price of gasoline for Memorial Day, Labor Day or whenever they find some other lame ass excuse, you can cruise by the gasoline pumps and flip them the bird.
This IS a very good idea, aand it will have a major impact on our import of foreign oil, especially for use as diesel fuel. We consume 3 million barrels per day utilized for diesel consumption, much of which goes into long haul transportation.
This type of legislation will have a substantial impact on reducing oil imports.This will spur industrial development, that is conversion and maintenance of diesel trucks to run on compressed gas and build out of a supply system along major freeways at truck stops. On a run from Atlanta to Miami which is 660 miles or 1,320 miles round trip consumes 1,320 miles @ 8 mpg = 165 diesel gallons at US$4.00 per gallon = $660.00. Compressed gas will probably shave this by several hundred dollars. Spot nat gas is currently priced at half the cost of diesel fuel per energy equivalent, so cannot guess the retail price BUT it will be much cheaper than foreign oil AND it will be very stimulative to local gas production and transportation fleets. Assuming you get 10% penetration of transport fleet within the first year you save 109,500,000 barrels and shave US$10.95 billion annualized, that is paid out to foreign oil sources PLUS you create tens of thousands of good paying, home grown jobs across the country.
This is NOT like building windmills or solar panels. IF we convert half the fleet in 5 years we save 547.5 million barrels or around $55 billion per year on our oil bills PLUS the kick in effect on smaller vehicles takes hold, where cars and small trucks switch over. Again assuming similar penetration rates on smaller vehicles we end up with total cuts on imports approaching several million barrels per day within the first year or two. This will have a major impact on reducing oil prices.