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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
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
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