The U.S. transportation sector is currently 97% dependent on oil. This heavy reliance on mostly imported oil leaves the U.S. vulnerable to supply interruptions, price fluctuations, economic instability, and consumer hardships. Yet there are core challenges to address before viable alternatives become available. These challenges include lack of alternative fuels in the marketplace; limited fuel distribution systems to get alternative fuels to consumers; and inadequate supply of alternative vehicles produced. The National Governors Association is suggesting that state governors can take four policy actions to meet the challenges: provide financial incentives through tax credits, deductions, grants and other financial means; pass rules and mandates specifying that state fuel distributors sell a certain quantity of alternative fuels; use their state's purchasing power to boost the adoption of alternative fuels or vehicles; and invest in research and demonstration efforts to speed new technologies to the marketplace.

By: National Governors Association (NGA), US

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