Securing America: Solving Oil Dependence Through Innovation Daniel Lashof, Ph.D. Natural Resources Defense Council March 17, 2005

2 We Need to Change Direction We cant drill our way to energy security Energy bill has no impact on oil markets 1992 Energy Policy Act had lofty goals, no teeth

3 2015: Save 2.5 million barrels/day 2025: Save 10 million barrels/day Flexible, but enforceable –Savings from any sector –Savings from any technology –Total savings must reach target Incentives and standards –R&D and deployment incentives –Efficiency and renewable fuel standards A National Commitment to Save Oil

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5 Make Efficient Vehicles in America Extend consumer purchase tax incentives Provide auto manufacturer and supplier investment tax credits Raise fuel efficiency standards for light duty vehicles – Include light trucks up to 10,000 lbs – Revise test procedure – Let dual-fuel loophole expire

6 Adopt Fuel-Efficient Tires and Engine Oil Fuel-efficiency standards and labeling for tires and oil –Make replacement tires at least as fuel- efficient as OE tires –Differentiate more-efficient tires and oil Consumer education and purchase incentives List of fuel-efficient, low rolling resistance tires available today in Green Seal report ( Get oil savings from on-road stock!

7 Establish Fuel Economy Standards for Heavy Trucks Create fuel economy standards for long-haul tractor-trailers Provide tax incentives for the production of hybrid drive trains for small and medium trucks Provide purchase incentives for anti-idling equipment

8 Grow Renewable Fuels in America Invest in R&D and pilot projects to produce fuels from crop wastes and energy crops Adopt a renewable fuels standard (RFS) –Mandate % of fuel to come from renewable sources –Prevent air quality backsliding –Require increasing renewability index Promote use in high-percentage blends –Require FFV production –Incentives for E85 infrastructure

9 Conclusion Our national oil addiction is a threat to our security, jobs and environment We need a national commitment to oil savings 2.5 million barrels per day (mbd) in 2015 and 10 mbd in 2025 – we can do it! Flexible, but enforceable We have the technology--we need the political will.

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