User79130_2_t Lance Winslow
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Can we give gas stations and incentive of $40,000 one time tax credit to convert 2 or more pumps to Bio Diesel, Flex Fuel or Bio Fuel? Would that provide the catalyst to help get these fuels at most of our gas stations in the United States?

Some say it is not enough, yet others think, well it might work? Now then, the other issues I see is that some of the franchisees may have "tie-in" clauses in their franchise agreements and not be allowed to sell the other blends. This is why the oil companies must have some type of buy in and therefore be at that negotiation table to figure out how to bring flex fuels to the American People.

If the underground tanks are plastic lined, new materials or 505 stainless with liner, the gas station owners may not have to change out tanks. Some of these blends are corrosive somewhat; some are not so bad. If you do not stipulate which blend, percentage or type, ethanol or diesel blend; let the market decide, the plan could work. Indeed I was not considering replacing tanks, unless they needed to be replaced anyway, rather using existing tank and two pumps. Two pumps could have the same fuel. Just if a station has 10 pumps then 2 could be flex fuels. Like a gas station, which has diesel, having 2 pumps for diesel the rest for gasoline.

fuel truck

This is an incentive of course and if the station did well, they would put in more, if not they would not, thus is would be reality based on market forces not government intervention. Remember I am totally free market, government needs to stay out of the way, only incentives and no additional regulations or taxation without any representation, based on Utopia seekers at the expense of an all star Ayn Rand character you see?

We already have incentives in 2006 sun setting in 2007 and 2008 for consumers to buy hybrids. Extend this to include bio-diesel cars, which can run either diesel or bio diesel, which will mean more hybrid vehicles on the road within the next few years.

We can deal with the Oil Companies, as they understand the game. Since 90% of gas stations are independently owned we have to do something for the other 10% which are owned by refineries or oil companies, so how about trade pollution credits if owned by an Oil Company? And remember if the oil company owns the stations, they do not need the $40K but they sure want the increased profit of lower taxes on the sale of the product. 7.5 cents is a lot per gallon. Help with their obligations for air pollution and increased profits, so they can use that money to build modified refineries.

pollution

Additionally I am concerned with environmentalist hit and run lawsuit tactics. The costs for an environmental impact report for a new refinery could be 250 million dollars prior to turning shovel number one. We have bureaucratic blockage, sound and fury infighting and partisan politics here too. There are several things we must do to get flex fuels into the market place to replace our dependence on foreign oil and perhaps this concept is a start.

If fuel prices are lowered, due to supply competition, then consumer confidence goes back up and folks have more money to spend and do not have to charge their credit cards as much, thus they have better credit, with more confidence. This means they will be buying more real estate and more real estate buyers means more sales and a return of the real estate markets.

 

4 Comments on Franchised Service Stations Should be Given Incentives to Sell Flex Fuels and Bio Fuels

Lance - I like the potential results that you refer to, "If fuel prices are lowered, due to supply competition, then consumer confidence goes back up and folks have more money to spend and do not have to charge their credit cards as much, thus they have better credit, with more confidence. This means they will be buying more real estate and more real estate buyers means more sales and a return of the real estate markets. "

Anything that can increase consumer confidence and give consumers more disposible income is good.

Here is one idea out of Michigan for turning brownfields into biodiesel farms for "bioremediation!"

01/07/2008 08:37 AM by Mary Bigelow, Renewing Your Life! (Ma's Marketing)


Ma,

I could not agree more. Lance

01/07/2008 10:47 PM by Lance Winslow (The Car Wash Guy)


It sounds like a good idea, but I think the government will bear its ugly head when it comes down to it. Wouldn't doubt if there was a $40k credit offered, that big oil would offer something better. It is nice to think about switching over to these fuels. It might not be for a long time though.

Joseph Grabowski

Bucks County Real Estate 

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01/08/2008 11:38 PM by Joseph Grabowski, REALTOR - 4saleinbucks.com (Keller Williams Preferred Real Estate)


Joseph,

Yes, there are issues, but we need to figure out how to stop this outrageous addiction to Foreign oil, Lance

01/10/2008 09:28 PM by Lance Winslow (The Car Wash Guy)


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Property Manager: Lance Winslow (The Car Wash Guy)
Lance Winslow
Malibu, CA
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Mr. Winslow uses the Active Rain Real Estate Industry Blog, to discuss issues that affect the Real Estate sector of our economy. His dialogues include such things as; droughts, subprime lending fallout, building materials, living off the grid, sales ethics, commercial property, crime, revitalizing downtowns, economic development, community volunteerism, and predicting the future of the real estate markets in the United States.