1. California Energy Commission California Secure Transportation Energy Partnership (CalSTEP) Overview Advanced Transportation Technologies James D. Boyd California Energy Commission February 1, 2006 Clean Transportation Solutions SM

2. California Energy Commission Copyright WestStart-CALSTART 2004 The Heart of the Problem

3. California Energy Commission Copyright WestStart-CALSTART 2004 2003 Energy Report Reduce gasoline and diesel demand to 15% below 2003 levels by 2020 Double combined fuel economy requirements of new cars and light trucks to 40 mpg Increase use of non-petroleum fuels to 20% by 2020 and 30% by 2030 Increase fuel cell vehicles to 10 percent of new sales by 2020 and 20 percent by 2030

4. California Energy Commission Copyright WestStart-CALSTART 2004 2005 Energy Report Provide adequate supplies of transportation fuels to meet the needs of Californias growing economy. Expand or augment the supply fuels - use gasoline and diesel fuels efficiently - expand the use of alternative and non- conventional fuels - provide fuel choices to California motorists - increase transportation system efficiency through more intelligent land-use planning and expanded use of innovative mass transit

5. Copyright WestStart-CALSTART 2004 What is CalSTEP?

6. Copyright WestStart-CALSTART 2004 CalSTEP Overview The California Secure Transportation Energy Partnership is a diverse and significant coalition of key stakeholders from the private, public, and non-governmental sectors who will work together to develop and implement a viable game plan to secure Californias transportation energy future

7. Copyright WestStart-CALSTART 2004 The CalSTEP Declaration In the absence of any significant federal leadership, California can secure its own transportation energy future by 2020. This future will create more wealth and economic opportunity and be better for the environment.

8. Copyright WestStart-CALSTART 2004 If California Leads Others Will Follow: A De Facto National Energy Policy CA is the only state with the legal authority to establish its own air quality standards and rules 7 states have chosen to adopt the California Low Emission Vehicle (LEV) program Approximately 10 states have elected to adopt the CA GHG emission control laws A de facto national standard created by the states

9. Copyright WestStart-CALSTART 2004 CalSTEP Committee Members James D. Boyd, Commissioner, California Energy Commission George Schultz, Distinguish Fellow, Hoover Institute Dr. Jim Sweeney, Professor of Management Science and Engineering, Stanford University Lars Erik Lunden, Vice President, Volvo Car Corporation Tim Carmichael, President and Chief Executive Officer, Coalition for Clean Air Bill Jones, Chairman, Pacific Ethanol

10. Copyright WestStart-CALSTART 2004 Dr. S.M. Shahed, Vice President, Advanced Technology, Honeywell Turbo Maurice Gunderson, Managing Director, Nth Power Lee Stein, Chairman, Stein & Stein (Investment Co.) Fred Keeley, Treasurer-Tax Collector, County of Santa Cruz (former Speaker Pro Tempore, State Assembly) Doug Linney, President, The Next Generation John Boesel, President and CEO, CALSTART CalSTEP Committee Members

11. Copyright WestStart-CALSTART 2004 National Commission on Energy Policy & CalSTEP Similarities: Prominent and diverse group of stakeholders Realistic business oriented plans Both effective mechanisms for change Distinctions: CalSTEP focuses on only transportation side of equation State vs. national focus

12. Copyright WestStart-CALSTART 2004 Multiple Solutions There is no silver bullet CalSTEP recognizes the need to transition from a mono to a poly-fuel future, the need for greater vehicle efficiency, and better transit/smart growth policies and practices

13. Copyright WestStart-CALSTART 2004 Defining The Target: CalSTEP Goals = AB 2076 Goals In 2003 California used 18.1 billion gasoline gallon equivalents (GGE) of on- road gasoline and diesel Target is a 15% reduction from 2003 demand to 15.4 billion GGE per year by 2020 Projected business-as-usual demand in 2025 is 23.8 billion GGE Required reduction from business-as-usual case to meet target would be 8.4 billion GGE Target: 15.4 Required Reduction: 8.4 AB 2076 Report Goals: 15% less oil consumed and 20% alternative fuels in 2020

14. Copyright WestStart-CALSTART 2004 Some Possible Options Benefit from Sample Options In (Billions GGE/year) Full Hybrids:3.03 GHG standard: 2.82 Mild Hybrids:2.29 Truck Standards:2.30 NG Trucks:1.72 Synthetic Fuels:1.64 Light-duty Diesels:1.30 E-85:1.00 B-20:0.99 Improved Maintenance:0.63 E-10:0.48 Truck-Stop Electrification:0.34 Options from CEC Required reduction is 8.40 BGGE Sum of slices needed = 8.40 Partial options can help Sample options from CEC Other options should be considered

15. Copyright WestStart-CALSTART 2004 Desired Outcomes Develop a viable, pro-business plan that will demonstrate a state can achieve its own energy security Educate states leaders on need for strong action to address transportation energy crisis Sell and implement plan in California Work with other states to develop individual plans

16. Clean Transportation Solutions SM www.weststart.org www.calstart.org Advanced Transportation Technologies SM