WGA TRANSPORTATION FUELS FOR THE FUTURE INITIATIVE Vehicle Efficiency Committee Report Summary John Boesel Transportation Fuels for the Future Workshop Denver, CO October 10-12, 2007

Vehicle and System Efficiency in the West -- Background  The efficiency of vehicles in the West has stagnated over the last 22 years – consistent with trends in the rest of the country  Unless vehicle efficiency is increased significantly energy security problems will persist for at least another 25 years  Between effective public policy resulted in dramatic gains in passenger car and light truck fuel economy  Sales weighted average passenger car mpg increased from 15.8 in 1975 to 27 in 1985  Light truck fuel economy rose from 13.7 in 1975 to 20.6 in 1985  The technology didn’t stagnate, the policy direction to use it did

Primary Recommendations – Tank to Wheel Efficiency  1) Each Western State should adopt a goal and a timeline for cutting its petroleum consumption (on a statewide basis) while also reducing greenhouse gas emissions  In 2003 both the California Energy Commission and the Air Resources Board agreed to the following goals: by 2020 the state will consume 15% less oil compared to 2003 levels Note: CA’s gasoline consumption in 2006 was billion gallons compared to billion gallons in 2005  Ideally each Western State would adopt the CEC/CARB goals  Each state should provide data on its annual oil consumption to the WGA which will publish the information  While working toward these goals, the states should also seek to reduce its net greenhouse gas emissions from the transportation sector by 10% (compared to 2003 levels)

Primary Recommendations – Tank to Wheel Efficiency  2) Governors should lobby Congress to strengthen federal fuel economy standards and eliminate loopholes  Group unable to reach consensus on which specific bill to support  3) Incentives Are Helpful and Necessary  States should provide incentive funding to encourage the deployment of more efficient vehicles (i.e. Colorado’s hybrid tax credit program) Should apply to passenger and commercial vehicles  The Governor’s should lobby congress to create long-term extensions of the existing alternative fuel and efficient vehicle tax credits Federal tax credits due to expire in 2009 should be extended until 2020  The Governor should also encourage Congress to support next generation low carbon fuel and efficient vehicle R&D funding There are tools in the toolkit but better ones would be helpful

Primary Recommendations – Tank to Wheel Efficiency  4) Leading By Example – State Fleets Walking The Walk  Consistent with the state-wide goals for petroleum reduction the state’s fleet should be a model for those in local government and the private sector  The Governor should recruit major fleets to join the effort and commit to similar goals (and participate in an annual reporting program)  5) Governor’s Should Become Energy Security Story Tellers  Of all regions in the country Westerners are most likely to take pride in reducing our dependence on oil and preventing global warming  6) Fuel efficiency labeling for tires and vehicles  Gas stations should be required to provide free air  7) Trucks in State Fleet should become members of EPA’s Smart Ways Program

Primary Recommendations – Tank to Wheel Efficiency  8) Western states should adopt rules restricting truck idling – and ensure proper enforcement  Funding should be provided for truck stop electrification  9) Pay As You Drive Insurance can be effective in reducing oil consumption and should be adopted by the states  Under such plans those who drive more pay more in insurance  10) Higher prices do encourage conservation  If unwilling to support standard gas tax increases the Governors should consider a program whereby gas taxes are increased steadily over a decade while providing rebates resulting in revenue neutral program

 10) Governors should support a national cap and trade program to reduce greenhouse gas emissions from the transportation sector  In the absence of federal action the Western States, either collectively or individually, should consider adopting their/its own cap and trade program  11) Feebates (fees on less efficient vehicles used to provide incentives for more efficient vehicles) can be helpful if structured properly – Consensus not reached Primary Recommendations – Tank to Wheel Efficiency

 The Governors should be looking at the over-all energy consumed in the transportation system as a whole  There are limits on how much oil dependence can be cut by looking at the vehicle and fuels alone  Each state should seek ways to encourage energy efficient land-use planning and decision making  Example: Mixed-use development, combining light commercial with residential, reduces the need for vehicle trips  Example: Portland has combined growth boundaries with efficient, attractive, and easily accessible transit to cut down on car trips  The states may be able to use its own infrastructure investments to encourage improved land-use planning  The WGA should commission a report on how state funding can best be used to encourage energy efficient land-use planning  Grants can be provided for communities to develop low carbon land-use planning Primary Recommendations – Systems Efficiency