The CalSTEP Partners recently unveiled the California Action Plan 2.0 for Transportation Energy Security. The report discusses the compelling reasons for state action on energy security and lays out several specific recommendations for California. The presentation--by Jamie Hall, CALSTART Policy Director, provides an overview of the report and its recommendations--was given February 17, 2011.

1. California Secure Transportation Partnership (CalSTEP) Action Plan 2.0 Overview for CALSTART Members Feb 16, 2011 John Boesel, President and CEO, CALSTART Jamie Hall, Policy Director, CALSTART

2. AGENDA CalSTEP Background and Partners Action Plan 2.0: Overview, why act now? CalSTEP Action Plan 2.0 Policy Recommendations Next steps and additional information

3. CalSTEP Background Formed in 2005, released report in 2007 with 10 well received recommendations Report led to key policy victories AB 118 clean transportation funding AB 236 state fleet leadership PAYDinsurance

4. CalSTEP: Consensus-Driven Process; Diverse Group of Expert Stakeholders John Boesel, President and CEO, CALSTART James D. Boyd, Vice Chairman, California Energy Commission Fred Keeley, Treasurer, Santa Cruz County; Former CA Assembly Speaker Pro Tem Neil Koehler, CEO, Pacific Ethanol Inc. Arthur Leahy, General Manager, Los Angeles County METRO Andrew J. Littlefair, CEO, Clean Energy Alan Lloyd, President, International Council on Clean Transportation Jeremy Madsen, Greenbelt Alliance Vice Admiral Dennis McGinn, US Navy (retired) Reg Modlin, Director, Regulatory Affairs, Chrysler Patricia Monahan, former Deputy Director, Union of Concerned Scientists* Diarmuid O’Connell, Director, Strategic Affairs, Tesla Motors George Shultz, Distinguished Scholar, Hoover Institution, Stanford University Sven Strohband, Partner, Mohr Davidow Ventures Dr. James Sweeney, Professor, Management Science, Stanford University Bjorn Wessman, Director, Volvo Monitoring and Concept Center

5. CalSTEP Action Plan 2.0:Purpose and Overarching Theme CalSTEP Action Plan 2.0 was driven by the following points Petroleum dependence is closely tied to other important state goals We must act now at the state level to address this issue through a balanced portfolio of solutions We can bolster energy security, reduce toxic emissions, & grow the clean transportation tech industry

6. Why Now? CA’s Dependence on Foreign Oil is Growing Quickly As Alaska production declines, California’s dependence on foreign oil has grown from 5% to almost 50% in last 15 years

7. Why Now? California is Relying on Unstable Countries for its Oil Supply Foreign Sources of Crude Oil to California Nearly 50% of California’s imported oil comes from just two countries in the politically volatile Persian Gulf region. Current unrest in the region makes this a timely report. Source: California Energy Commission

8. Why Now? Many Other Reasons Air quality concerns require cleaner technologies Climate goals require drastic changes in transportation Federal government not making progress – it is up to California to take the lead, as we have on climate and air quality California’s clean transportation tech industry could be a source of jobs and economic growth

9. Petroleum Reduction Goals, Commitment, and Authority Reaffirm and codify existing petroleum reduction and alternative fuels usage goals Reduce petroleum usage 15% below 2003 levels by 2020 Increase alt fuels usage to 26% of on-road demand by 2022 Incorporate these goals into all relevant rulemakings and regulations. Make an agency/agencies clearly accountable for meeting objectives.

10. Transportation Energy Security Fee and Reinvestment Implement a petroleum fuels fee that increases at a rate of 1 cent per month for 10 years Use revenues to meet clean transportation needs Invest in clean transportation tech Provide funding for smart growth planning and implementation Invest in transit operations and maintenance Provide funding for maintenance of existing transportation infrastructure U.S. fuel taxes are low by international standards. CA taxes have not increased since 1993

11. Targeted Technology Incentives and Investments Direct public funding toward technologies and solutions that achieve multiple goals Petroleum reduction, climate change, air quality Today, most just goes to diesel Maintain existing clean transportation funding levels Funding for clean transportation is scheduled to drop off dramatically

12. Consistent Vehicle and Fuel Standards Implement strong greenhouse gas emission standards for light duty vehicles (LEV III GHG, also known as Pavley II) Aim for high end of range under consideration by CARB and EPA Continue implementation of Low Carbon Fuel Standard Continue refining science Begin evaluating second phase

13. Strategic and Sustainable Growth Funding Direct state and regional transportation funds to areas and projects that support strategic and sustainable growth goals Drive smarter growth patterns at local level Provide greater authority for local authorities to set fees, raise revenues, and finance smart growth projects Overarching theme of tech and growth funding recommendations: California has to get more bang for the buck!

14. Full- Cost Transportation Pricing Grant local and regional authorities the ability to implement congestion pricing Encourage local and regional authorities to re-examine parking policies that reinforce our petroleum dependence Monitor progress on Pay As You Drive (PAYD) insurance; consider changes to regulation if strong PAYD products do not become available

15. Outreach and Education Implement an “eco-driving” program to encourage more efficient driving behavior. Could be incorporated into driver’s education and traffic school Opportunities for feedback technologies? Educate consumers on PAYD insurance options through a labeling scheme or yearly scorecard Consider a state certification for projects or neighborhoods that meet strategic and sustainable growth goals

16. State Fleet and Facility Leadership Require the Department of General Services (DGS) to develop and implement a petroleum reduction plan for the state fleet CALSTART-sponsored legislation (AB 236, Lieu, 2007) called for 20% reduction in petroleum usage from 2003 levels. Explore possibility to use state-owned parking structures to encourage the use of clean vehicles Could provide preferential parking as an incentive

17. Next Steps / Additional Information We are optimistic that we will see legislative initiatives and real progress on transportation energy security and oil dependence in California. Stay tuned! For More Information Visit www.calstep.org for background and for copies of the report, press release, and media coverage