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Natural Gas and Transportation Fuels Boise, Idaho September 7, 2006 353 Sacramento Street, Suite 1700 San Francisco, CA 94111 Telephone: (415) 391-5100 http://www.ethree.com

Natural Gas and Transportation Fuels - Idaho State Legislature · Natural Gas and Transportation Fuels . Boise, Idaho . September 7, 2006 . 353 Sacramento Street, Suite 1700 San Francisco,

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Natural Gas and Transportation Fuels

Boise, Idaho September 7, 2006

353 Sacramento Street, Suite 1700 San Francisco, CA 94111

Telephone: (415) 391-5100 http://www.ethree.com

Agenda 9:30 Introduction by Co-Chairs 9:45 Clean Air Act and Treasure Valley 10:05 Biofuel Incentives (John Crockett) 10:25 Transportation Programs (Eric Cutter & Hillary Sinnamon) 10:45 Break 11:00 Review results of Conservation Subcommittee 11:15 Biofuels Policy Goals 12:00 Lunch 1:15 Petroleum & Transportation Policy Goals 2:00 Natural Gas Policy Goal 2:45 Break 3:00 Wrap Up 3:30 Adjourn

Goals

Further develop general policy goals from last meeting

Consensus recommendations on specific policy goals for state energy plan

Focus on high level policy goals

State Transportation Programs

Clean Cars Program

Adopted by 10 states, including WA and OR 1/3rd of US car market

Beginning in 2009 model year 34%/25% reduction in greenhouse gas emissions

for cars/light trucks by 2015 Could decrease gasoline consumption by 7.2

billion gallons annually by 2020 Help Idaho meet Federal air quality standards Automaker lawsuits in several states

Oregon Public Transportation

Oregon Transportation Enhancement Program

Rural Transportation Assistance Program Intercity Passenger Program Transportation and Growth Management

Program Pedestrian and bicycle program grants Safe routes to schools

Washington

Rural Mobile Grants Intercity Bus Transportation Job Access and Reverse Commute

Transforming the Market

Transform Popularize

Develop

Support

COST

GENERAL TARGETED

INCENTIVES

MANDATES USE OF 10%

BIOFUEL BLENDS

FLEX/ALT FUEL VEHICLES USING

85% BLENDS

PLUG IN HYBRIDS

HYBRID/HIGH MPG VEHICLES

Building Consensus

Transform Popularize

Develop

Support

COST

GENERAL TARGETED

INCENTIVES

MANDATES RENEWABLE

FUEL STANDARD MINIMUM AFV

PURCHASE REQUIREMENT

R&D GRANTS

REBATES TAX INCENTIVES

BOOKENDS

BOOKENDS

Alt. Fuel Recommendations It is in the interest of Idaho to promote the production and use of alternative fuels, through

policies, strategies and actions that are cost-effective and environmentally sound. In adopting incentives and other measures to promote alternative fuels the state shall consider the benefits to economic development, security, reliability, environmental protection and public health. Potential measures may include but are not limited to: Encouraging state fleet purchases and use of alternative fuel and efficient vehicles Incentives and investment tax credits for Idaho growers and producers of alternative fuels Encourage future development of cellulosic ethanol production in Idaho Adopting cleaner tailpipe emission standards Incentives for the purchase of FFV and alt. fuel vehicles Incentives and grants for retail and wholesale alternative fuel supply infrastructure Incentives and tax credits for the sale and purchase of alternative fuels Promoting research and development and business-university partnerships to speed commercialization of

alternative fuel technologies. Education and promotion campaigns for consumers and regulators

Incentives may include fuel tax deduction or exemptions, tax credits, loans, loan guarantees, grants, parking and HOV lane privileges,

Maintain flexibility to adapt to changing and improving technology and adjust to price and supply

issues in a maturing market.

Biofuel Proposals 1. Grants to retailers for biofuels infrastructure 2. Investment tax credit for biofuels infrastructure

upstream of retailers 3. Promote culture of conservation 4. Countercyclical biofuel producer incentive 5. Flexible fuel vehicle state fleet pilot project 6. Incentives to use feedstock byproducts from

biofuel production 7. Include synthetic fuels in definition of alternative fuels

Production Incentives

Transform Popularize

Develop Support

Rely on existing incentives

Incentives for growers Incentives for producers

Loan guarantees/tax credits for producers

Grants for producers

Business-university partnerships Renewable fuels development program

Support Federal R&D efforts

Biofuel Demand

Transform Popularize

Develop Support

Require stations be allowed to offer ethanol blends

Lower fuel tax for biofuels

Tax incentives for retail sale of biofuels

Expedite Permitting Study options for RFS

Adopt RFS goal Adopt Mandatory RFS Standard

Adopt alt. fuel infrastructure requirement

Adopt Alt Fuel Infrastructure Goal

Incentives/grants for retail infrastructure

Support 10 year extension of federal biofuel tax credits

Support 10% federal agency biofuel purchase requirement

Public education and promotion of biofuels

Petroleum Recommendations

Promote conservation as primary means of improving the reliability and cost of Idaho’s transportation fuel supply while also encouraging development of new resources

Support responsible exploration and production of petroleum supply and expansion of transmission, storage and distribution infrastructure benefiting Idaho

Transportation Recommendations

Work with other states to promote increase in Federal CAFE standards

Encourage use and purchase of hybrid, high mileage, alternative and flex fuel vehicles. Explore opportunities for adoption by private and state owned fleets, public transportation and school busses.

Promoting use and expansion of public transportation where effective in reducing vehicle miles traveled, including intercity transportation where feasible

Promote reduction of truck and tour bus idling Investigate encouraging use of rail and intermodal freight

transportation where feasible

Vehicle Program Categories

By Type By Owner By Niche

• High MPG • Ethanol • Biodiesel • Methanol • Natural Gas • Propane • Hybrid • Electricity • Aftermarket

Conversion

• State Government • Local Government • Fleets • General Public

• Airport Vehicles • School Busses • Transit Bussed • Shuttle Busses • Refuse Haulers • Taxis • Delivery Vehicles • Traffic

Enforcement • Police Vehicles

Alt Fuel/High Efficiency Vehicles

Transform Popularize

Develop Support

Support efforts to encourage development of plug-in hybrid

Adopt CA Clean Cars Program (OR, WA)

Carpool/State Parking

HOV Lane use (w/ MPG qualifier)

Min alt fuel vehicles requirement

Freebates

Min. avg. fuel efficiency

Sales Tax Exemption Reduced registration fees

Public Transportation

Transform Popularize

Develop Support

Grants, loans, technical assistance to transportation agencies

Commuter checks

Employer incentives for carpooling

HOV Lanes

Grants, loans, technical assistance for intercity transportation

Bikes on Transit

Idle Reduction

Transform Popularize

Develop Support

Incentives for installation of idle reduction technology at truck stops

Time Limits for truck idling Time Limits for bus idling

Require automatic shutdown on new engines

Natural Gas Recommendations Encourage the highest and best use of natural gas. Encourage direct end use in applications for which natural gas is

the most efficient energy source. Where appropriate and cost effective encourage use of natural

gas vehicles for company and/or state owned fleets Support responsible exploration and production of natural gas

supply and expansion of transmission, storage and distribution infrastructure

Support non traditional natural gas supply resources, including landfill methane, anerobic digesters, biomass methane.

Support siting of LNG terminals in the US as well as and infrastructure that provides delivery capability to Idaho

Direct Use of Natural Gas

Transform Popularize

Develop Support

Consumer Education

Incentives for fuel switching

Ensure PUC and utility policies encourage efficient customer choice

Consider fuel switching as resource in IRP

NGV incentives for state and local fleets

Actively support responsible exploration and infrastructure enhancements

Incentives & grants for non-traditional methane sources