» John Boesel, President and CEO CALSSSTRT
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1 » John Boesel, President and CEO CALSSSTRT
2 The Cars of Tomorrow in California Good Enough to Meet the 2050 Climate Targets? John Boesel President and CEO CALSTART
3 Outline» California s unique role in the United States»The California Climate Protection Program» Vehicle Efficiency»Low Carbon Fuel Standard» Reducing Vehicles Miles Travelled»GHG Cap & Trade Program» Putting Capital Behind Policies»The Disruptive Player
4 CALSTART Headquarters Pasadena, CA
5 CALSTART Members (PARTIAL LISTING)
6 CALSTART s Top 3 Priorities: Making CA a Success; Building Industry Nationally; Partnering for Global Growth Nor Cal Office Colorado Office New York Office CALSTART HQ
7 CALSTART Investor Council (CIC)
8 California Australia Similarities California» Population: 38.4 million» GDP: $1.958 trillion» 703 motors vehicles/1000 Australia» Population: 23.1 million» GDP: $1.532 trillion» 723 motor vehicles/1000 Both have or are experiencing drought and would be heavily impacted by sea level rise
9 Tremendous Progress on Fight for Clean Air» Ozone levels in Southern California have decreased 80% even as:» Population has doubled» Number of vehicles increased by factor of four» Vehicle miles travelled increased by factor of five»economy grown by factor of five South Coast Peak 1 Hour Ozone (ppm) Gross State Product (millions of dollars)
10 Success in Reducing Black Carbon (Estimated) Kirchstetter et al. (2011) Black Carbon and the Regional Climate of California, CARB Contract No
11 California s Progress on PM PM2.5 levels in Southern California have dropped approximately 70% since the late 1980s.
12 California s Agreements With China Memoranda of Understanding (MOUs)» Cooperation on Low Carbon Development China National Development & Reform Commission, signed Sept. 13, 2013» Environmental Cooperation Beijing Environmental Protection Bureau, signed April 10, 2013» Reducing Air Pollution China Ministry of Environmental Protection, signed April 10, 2013
13 Why Collaborate with China? China s current air quality problems are similar to those faced by California in the 1940s and 1950s. Los Angeles 1948 Beijing 2013
14 Action in China Helps California s Air»Asian continental PM2.5 plume is a dominant contributor at otherwise clean high altitude sites across western North America»Average contribution 10 20% of annualaverage NAAQS Quality
15 2006 Legislation Set Target for GHG Reductions 15% below 1990 levels by 2020 Via Executive Order Governor Schwarzenegger Establish 80% Reduction by 2050 Goal
16
17 California Program to Reduce Transportation Related GHG 5Main Elements:» Make vehicles more efficient» Lower the carbon intensity of the fuel» Reduce the need for driving» Putting a price on carbon the Cap & Trade Program» Making investments
18 54.5 MPG by 2025 for Cars
19 34% GHG Reduction Between
20 Most GHG Reductions To Come From Advanced ICE Tech
21 GHG Standards Will Reduce Total Cost of Ownership Save $ for Consumers
22 1.5 Million ZEV s by 2025
23 EV Sales Better Than Hybrids to Date
24 Decarbonization of CA Electricity Grid 33% Renewable by 2020 Governor Calling for 50% by 2030
25 Even if I don t know what I don t know, which is the oil price, there is one trend that is unmistakable. It is emissions regulations are going to become tougher. Global warming is becoming more and more of a threat.zero emissions technology, particularly electric cars, is here to stay and here to grow. Nissan CEO Carlos Ghosn Automotive News World Congress, Jan. 2015
26 I think we re really going to regret the amount of carbon that we re putting in the oceans and atmosphere. We re really going to regret it. Elon Musk, Tesla Chairman and CEO Automotive News World Congress, January 2015
27 GM and Tesla planning on $30 35,000 EV s with 200 Mile Range by 2017
28 Employers Becoming Vehicle Fuel Providers
29 Fuel Cell Vehicles Coming to California Toyota Mirai Fuel Cell Vehicle will be available for lease in CA starting in 2015» California has allocated $20 million/year to build h2 stations for next 5 years»toyota, Hyundai, Honda, and Daimler bring FCV s to CA
30 Is it feasible for truck sector to reduce GHG emissions by 80% by 2050? If so, what would be needed to make that happen?
31 There is a pathway for at least 70% GHG emission reductions by What s needed? Strong standards plus additional public investment.
32 FritoLay has 185 Electric Trucks Operating in CA
33 CALSTART is Now Managing >$40 million in Clean Truck Incentive Programs In CA, NY & Chicago vip.ny.gov/
34 Zero Emission Bus Market Growing
35 Natural Gas Truck Market Growing Ultra Low NOx Engines (80% cleaner) in Increasing Production of Renewable Natural Gas
36 Nation s First Hybrid Excavator CALSTART CEC Project CA Energy Commission Funding Enabled Development and Demonstration of Hybrid Excavator Now a Product Offered by Caterpillar Inc. Caterpillar employs hydraulic hybrid technology that is 98% common with the conventional 336E excavator to boost fuel efficiency of the 336EH hybrid 50%.
37 Low Carbon Fuel Standard In 2007 CA enacted standard requiring that by 2020 the carbon intensity of the fuel sold would decrease by 10%
38 » California Low Carbon Fuel Standard based on wells to wheels analysis»over 25 pathways approved for different fuels» Carbon intensities of fuels vary can range from zero/negative (capturing and using methane that would normally release into atmosphere)»credits prices have fluctuated from $10 to $85/MT CO2e. ($10/MT 1 penny/gallon
39 Methane is major problem and major opportunity CA starting to catch up to Sweden
40 California Sustainable Communities Program» Seeks to reduce vehicle miles traveled» Transportation and infrastructure funding will provide incentives for transit oriented growth encourage urban infill vs. suburban sprawl
41 Cap & Trade Program» 400+ largest GHG emitters required to purchase allowances to pollute» Encourages emitters to find ways to cut GHG production»starting January 1, 2015 oil refiners also required to buy allowances for emissions generated from product sold»estimated Cap & Trade revenue in CA fiscal year = $2.3 billion
42 Putting $ Behind Policies In addition to Cap & Trade Program, in 2007 The Governor signed Assembly Bill 118 into law generating $150 million/year for clean, low carbon transportation programs»in 2013, the legislature extended the program thru 2023
43 Examples of How State Funds Being Used to Support Low Carbon Transportation» $2,500 consumer rebate for purchase of 100% electric vehicle» $1,500 consumer rebate for purchase of plugin hybrid electric vehicle» $40 60,000 rebate for fleet purchase of electric truck»cost sharing of low carbon fuel production and manufacturing facilities in state
44
45 Tesla Supercharger Network In Auto Industry Conventional Timeframe Built Overnight
46 Tesla Supercharger Network Expanding Globally
47
48
49
50 Planned Gigafactory Plant > 2013 Global Production
51 $4 5 Billion Investment Thru 2020
52 7,000 Tesla Jobs in California
53 GM and Tesla planning on $30 35,000 EV s with 200 Mile Range by 2017
54 Economy Growing While Carbon Intensity Declining It s Working
55 Economy Growing While Gasoline Usage Declining It s Working
56 Summary Thank you!
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