Using Reverse Auctions to Distribute Renewable Energy Credits

The debate on American’s dependence on foreign oil is not a new topic.  For years Americans have debated opening up ANWAR and other domestic oil producing sites to help decrease our dependence on foreign oil.  But in recent months the debate has been magnified due to the unrest occurring in Libya and other major oil producing countries overseas.

Last week the Weekly Standard wrote an article discussing legislation that U.S. Representative Devin Nunes’ (R-CA) rolled out called “A Roadmap for America’s Energy Future”.

According to the Weekly Standard, one key insight the legislation hinges on is “advances in energy efficiency are often inextricably linked with energy production.”  As a result, if the US opens up domestic resources, Nunes proposes that “any profits the government makes form increased domestic energy production would go into a trust fund for renewable energy sources, as well as new research and development.”

Nunes further suggests using reverse auction technology to disperse the newly created trust fund monies.  Companies would compete in a free market environment on energy contracts, based on who can produce the most energy for the least amount of money.

What do you think?  Do you think his proposals will help America be more efficient in creating renewable energy sources?