Momentum for PHEVs has been growing steadily -
but May looks like "The month that changed the
world." We're seeing Obama-style transformation
all over. In this chock-full posting we look at
many of the new developments on the federal level
-- not chronologically, but in order of
importance -- plus a few links and our comments.
At the end you can read the President's rousing
remarks on fuel efficiency and the auto industry.

(Shortly after it goes out on email, this posting
will also be viewable at
http://www.calcars.org/news-archive.html -- there
you can add CalCars-News to your RSS feed.)

Here's what we cover below:
* New federal fuel standards after decades
* House Cap and Trade bill: pros and cons, and impact on plug-ins
* Energy Department defunds hydrogen for transportation
* Cash for Clunkers bills advance, with some starting to question them
* Multiple rounds of grant applications energize plug-in community
* Military weighs in on vehicle electrification
* Clean Economy Network launches
* Must-read anthology on plug-ins from Brookings Institution
* Plus the following off-topic ALERT:

WE NEED YOUR LETTERS BY NOON WEDS: We haven't had
a chance to post the announcement until now, but
we encourage CalCars-News readers to write a
comment to the California Air Resources Board,
which this Thursday in Sacramento is holding its
very important follow-up hearing on regulations
for aftermarket conversions of hybrid cars. This
has implications well beyond California, and
potentially could affect the viability of
companies (and their suppliers) that now convert
Priuses and Ford Escapes, but may convert
internal combustion gas guzzlers in the future.
See one company's announcement with the details
at the EAA-PHEV mailing list archive,
http://autos.groups.yahoo.com/group/eaa-phev/message/3561
and see January postings at
http://www.calcars.org/news-archive.html for the background.

OBAMA ADMINISTRATION'S NEW FUEL STANDARDS: 30%
cut by 2016. The national fleet mileage
(unchanged since 1985) will increase 5% annually,
for cars reaching 39 MPG and light trucks
(including SUVs) 30 MPG. This is the resolution
of the long struggle since the passage of
California's AB1493 (the Pavley Bill) that
precipitated automakers' lawsuits to block higher
standards in California (followed by more than a
dozen states), and the Bush Administration's
refusal to grant California a routine waiver to
set its own standards (as it has done for decades
because it had emissions regulations before the
U.S. had national rules). See a good summary at
http://www.greencarcongress.com/2009/05/obama-announces-new-national-fuel-policy\
-two-harmonized-standards-with-fleet-average-of-355-mpg-250-.html#more
and a discussion of unresolved issues at
http://earth2tech.com/2009/05/21/what-you-need-to-know-about-the-new-car-emissio\
ns-standards/
.

The new plan brokered by the Obama Administration
has won the approval of automakers (10 were at
the announcement), the autoworkers, the state and
federal government agencies and elected
officials, and many environmental groups. It
represents the breakup of a decades-long impasse,
with a single uniform national standard, so the
automakers can no longer resist based on their
opposition to a "patchwork of standards." It's
not quite as strong as California's bill; it
still leaves the U.S. way behind the rest of the
world, and California is still free to enact
stronger requirements after 2016. For a news
context-setter and photo of the assembled group
at the announcement see
http://www.nytimes.com/2009/05/20/business/energy-environment/20emit.html

Long-time CalCars supporters will recall that in
Sept 2004, we testified at the ARB hearing on the
implementation of the Pavley Bill, pointing
out
http://www.calcars.org/CalCarsARBTestimonySept04.pdf
that "the elephant in the room" is PHEVs, which
could start saving CO2 emissions faster than any
other vehicle type and double the goal of 30%
reduction in a decade. Several commissioners
looked at each other and agreed it was necessary
to rethink their dismissal of PHEVs. And now it's
widely acknowledged that plug-in cars have to be
a big part of automakers' future vehicle mix for
them to meet the goals in a shorter time. That's
where we see automakers' race on electric vehicles taking shape.

As attention shifts to how the carmakers will
meet the regulations, journalists and analysts
have a new favorite question: With low gas
prices, will smaller, lighter and more-efficient
cars attract buyers? And what if lower fuel
demand leads to even lower gas prices? Virtually
every article on that subject concludes "this
wouldn't be a problem if we had a gas tax that
set a floor on the price of gasoline -- but as we
all know, no politician can survive voting for
that, so it's of course unachievable." A
refreshing new take is a Reuters story on the
"Green Gold Rush" -- the economic opportunities
the new standards open up:
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE54I71D20090519.
At Edmunds, Michelle Krebs reminds us of options
like "feebates" -- taxing higher gas-guzzlers
more than fuel-sippers:
http://www.autoobserver.com/2009/05/new-fuel-rules-automakers-may-build-them-but\
-will-customers-buy-them.html
and John O'Dell looks at a range of ways to
incentivize sales of efficient vehicles:
http://blogs.edmunds.com/greencaradvisor/2009/05/is-cafe-needed-consider-proddin\
g-the-public-rather-than-pushing-automakers.html

WAXMAN-MARKEY CAP AND TRADE LEGISLATION OK'D BY
HOUSE ENERGY/COMMERCE COMMITTEE. "H.R. 2454, The
American Clean Energy and Security Act," was
significantly modified to gain the support of
coal-state Democrats and others. While some
environmental groups criticize its lower targets
and providing emissions credit allocations to
industry rather than auctioning them, advocates
point out that most of the allocations to
regulated industries will end up in with
consumers. Their fundamental point is that this
bill is the best we can do and still get 60
Senate votes -- and that we must get started. For four perspectives, see
* Joseph Romm's summary (and other pieces at
Climate Progress
http://climateprogress.org/2009/05/21/waxman-markey-approved-house-energy-and-co\
mmerce-committe/
* Greenpeace critique, in partnership with
Friends of the Earth and others
http://www.greenpeace.org/usa/news/greenpeace-waxman-markey-clim
* Report by Bryan Walsh of TIME (emerging as one
of the most insightful journalists on the
environment) http://www.time.com/time/health/article/0,8599,1900408,00.html
* Debate at http://i3.democracynow.org/2009/5/22/climate_debate

WAXMAN-MARKEY & PLUG-INS: The measure contains an
additional $25 billion in loans to companies
retooling to produce plug-in vehicles and buy
batteries, doubling the amount committed in the
TARP legislation last fall. It also includes
funds funds for EV infrastructure, including
charging stations and integration with smart grid
systems. And to fund their reduction of CO2
emissions in the vehicles they produce, they
would get three percent of the federal
government's revenue from carbon emissions
permits from 2012 to 2017, then one percent to
2025. See Subtitle C Sections 121-124 in the
22-page bill summary and other documents at http://energycommerce.house.gov/ .

ENERGY SECRETARY STEVEN CHU PROPOSES $0 FOR FUEL
CELL CARS IN NEXT BUDGET: Chu proposed for the
year beginning Oct 1, a $100M reduction in the
hydrogen program, while maintaining $68 million
research funds for stationery applications. He
said, "We asked ourselves, is it likely in the
next 10 or 15, or even 20 years that we will
convert to a hydrogen-car economy? The answer, we
felt, was no." Other than those directly involved
in the industry, and some automakers continuing
on momentum, most analysts see other technologies
advancing far more rapidly and facing fewer
barriers in technology, infrastructure and
conversion losses. For insight into the reasons
the Energy Department is favoring plug-in
vehicles over fuel cells, see the links to the US
DOE's Principal Deputy Assistant Secretary of
Energy Steven Chalk's congressional testimony and
Detroit News interview at
http://blogs.edmunds.com/greencaradvisor/2009/03/federal-funding-shifting-away-f\
rom-fuel-cells-back-to-plug-in-hybrids.html

CASH FOR CLUNKERS BILL ADVANCES: Waxman-Markey
also includes $3.5-$4.5 billion incentivize
vehicle swaps for a million vehicles. It has also
been introduced as a stand-alone bill in the
House and Senate. The bill has been slightly
improved, giving higher amounts for swaps with a
10MPG increase. Senators Dianne Feinstein and
Susan Collins, recognizing the measure's
limitations, have introduced a bi-partisan
stronger version, requiring much higher
efficiency vehicles in the swap:
http://blogs.edmunds.com/greencaradvisor/2009/05/senate-members-offer-clunkers-m\
easure-they-say-is-greener-than-house-version.html
. But none of them have begun to think about the
points CalCars has been making involving the
"embedded energy" involved in building a car.
That means, in simplified terms, unless you
replace a car with one getting twice the MPG,
you're a net loser in terms of energy and CO2
savings. Weighing in on this issue are Bill
Chameides, dean of Duke University's Nicholas
School of the Environment, and Richard Larrick,
an associate professor at Duke's Fuqua School of
Business, saying, "Just because you go out and
buy a new car and it has a higher fuel economy,
it doesn't mean you're actually saving C02." They
also support switching how we view fuel
efficiency, to talk about "gallons per hundred
miles" to enable us to appreciate the impact of
energy savings from the least efficiency
vehicles.
http://www.nytimes.com/gwire/2009/05/08/08greenwire-clunkers-deal-for-autos-stir\
s-questions-about-12208.html


PLUG-IN COMMUNITY REACHES FINISH LINE
AFTER INTENSE ROUNDS OF APPLICATIONS: Remember
those stimulus grant programs we alerted you to?
Organizations ranging from large automakers and
component makers to regional consortia,
universities, small startups and many nonprofits
have been buried in paperwork, spreadsheets and
PDFs for months. Deadlines to apply for over $2
billion in grants from the Department of Energy
(DOE) under the American Recovery and
Reinvestment Act for batteries and components and
for a range of products and services under the
category of "transportation electrification" have
passed; the US Clean Cities program applications
close May 29. Still to come is "ARPA-E" for
transformational technology. (See links to all at
http://www.energy.gov/recovery/funding.htm .)
(CalCars advised many, wrote endorsement letters,
and partnered as education/outreach subawardees
in three applications.) Results will be announced
this summer, with funds available this fall.

WONDER WHO APPLIED FOR WHAT? We won't be
surprised if the number of applicants exceeds
500. We've heard of many imaginative and
inspiring ideas. We think telling the world about
these proposals will spur further innovation and
partnerships that will speed the arrival of the
green jobs, new company formation, community
revitalization, and fossil fuel and greenhouse
gas reduction goals of the program. Given the new
administration's pledges of "transparency and
accountability," we have urged the Department of
Energy to approach the entire process in the
spirit of "coopetition." We have proposed that
for the first time, DOE release the
non-confidential summaries that were requested
from all applicants. A perfect home has been
created for such information: the DOE Recovery
Act Clearinghouse
https://recoveryclearinghouse.energy.gov/index.htm
. We're taking our request through channels and
hope for a positive response, but we may seek
allies and endorsements if we don't make rapid progress.

MILITARY THINKTANK URGES
HYBRIDIZATION/ELECTRIFICATION: 12 retired
generals and admirals from four branches of the
US military on the Center for Naval Analysis
Military Advisory Board have issued a report,
"Powering America’s Defense: Energy and the Risks
to National Security"
http://www.cna.org/nationalsecurity/energy/
citing "the electrification of combat" and
urging "energy efficiency, smart grid
technologies, and electrification of its vehicle
fleet." Topics include The National Security
Risks of Business as Usual and "Achieving Energy
Security in a Carbon-Constrained World"
(including migration that could result from
rising ocean levels and other disruptions). The
report confirms analyses that the cost of
delivering fuel to the battlefield can reach
hundreds of dollars per gallon, and suggests
analyzing the "fully burdened price of fuel" to
include military expenditures to operate some
military bases, defend sea lanes and maintain
forward presence. In a confirmation of the impact
of PHEV experts and advocates, the
acknowledgments and citations include
ClimateProgress. Google.org and its 2030 plan,
the California Energy Commission and many National Laboratories.

CLEAN ECONOMY NETWORK LAUNCHES: A new
organization http://www.cleaneconomy.net
announces itself: "Welcome. We are business
voices -- investors, professionals, workers and
entrepreneurs engaged in catalyzing clean
development and creating green jobs. This is our
best hope for economic growth, climate stability,
energy security, and competitiveness." Formed by
people from across the political spectrum (though
many first came together in CT4O (Clean Tech for
Obama), the group says "the rules of the clean
economy are being written now," and aims to
engage in that process, focusing especially on
supporting an effective carbon price, working at
the state level to leverage public dollars, pass
a comprehensive federal clean energy package, and
finance clean investments. You can join as a free
General Member and participate in advocacy
activities, provide input, and attend events, or
become an Executive Member at $1,500 and gain
access to insider events and briefings. The group
is somewhat complementary to Environmental
Entrepreneurs http://www.e2.org , which is
affiliated with the Natural Resources Defense Council.

INDISPENSABLE NEW BOOK ON PLUG-INS: "Plug-in
Electric Vehicles: What Role for Washington?"
arrives just in time. Here's THE BOOK TO READ to
get the current thinking about the benefits and
opportunities for plug-ins -- and the policies to
get there. Its editor is David Sandalow, who was
based at Brookings Institution until he was
confirmed as the Energy Department's new
Assistant Secretary for International Affairs and
Domestic Policy.) Here's our annotated Table of
Contents -- get information and order for $30 or
less at http://www.calcars.org/books.html .
* Foreword -- Strobe Talbott -- eminent foreign
policy analyst and president of the Brookings
Institution: concise and compelling four pages worth the price of the book!
* Commentary-- Dan Reicher -- explains
Google.org's interest and recaps the
Google/Brookings Institution Plug-In Conference in June 2008.
* Introduction -- David Sandalow -- topics
reviewed and updated since the author's 2007
"Freedom From Oil: How the Next President Can End
the United States' Oil Addiction," which
helped provide roadmaps for several Presidential candidates.
* PART 1 BENEFITS
* Geopolitical Implications of Plug-in Vehicles
-- R. James Woolsey, Chelsea Sexton -- overview of benefits.
* Electrification of Transport and Oil
Displacement: How Plug-Ins Could Lead to a 50
Percent Reduction in U.S. Demand for Oil --
Saurin D. Shah -- co-author of the influential
2006 Alliance Bernstein report, "The Emergence of
Hybrid Vehicles" (still available at
http://www.calcars.org/downloads ) explores
market penetration issues and sees a 2-6 year
societal payback for a rapid transition.
* Pluggable Cars: A Key Component of a Low-Carbon
Transportation Future -- Deron Lovaas, Luke
Tonachel -- summarizes the environmental issues and the EPRI-NRDC study.
* The Cash Back Car -- Jon Wellinghoff -- broad
and very accessible summary of opportunities from vehicle-to-grid integration.
* PART 2 BARRIERS
* The Impact of Plug-In Hybrids on U.S. Oil Use
and Greenhouse Gas Emissions -- Alan L. Madian,
Lisa A. Walsh, Kim D. Simpkins -- focuses on
market penetration issues. (This chapter and
Shah's confirm how difficult it is too get
plug-ins fast enough; we hope the next generation
of discussions will factor in the opportunities
to convert millions of internal combustion engine vehicles on the road.)
* Look Before You Leap: Exploring the
Implications of Advanced Vehicles for Import
Dependence and Passenger Safety -- Irving Mintzer
-- raises issues of materials required for rapid scale-up.
* PART 3 POLICIES
* Current Federal Authorized Programs on Plug-In
Hybrids, Battery Electric Vehicles, and Related
Efforts -- Dean Taylor -- captures the
legislative and administrative history of government programs.
* Tax Credits for Electric Cars: Stimulating
Demand through the Tax Code -- Benjamin H. Harris
-- explores and explains those subtle
distinctions between deductions, credits,
refundable credits, and the impact of the Alternative Minimum Tax.
* Cost-Effectiveness of Greenhouse Gas Emission
Reductions from Plug-in Hybrid Electric Vehicles
-- Daniel M. Kammen, Samuel M. Arons, Derek M.
Lemoine, Holmes Hummel -- costs and benefits of
PHEVs in context of trends in battery prices and federal incentives.
* Federal Policy Options to Support Early
Electric Vehicle Deployment by Reducing Financial
and Technological Risks -- Bracken Hendricks,
Benjamin Goldstein -- proposes fleet purchases,
Federal Battery Guarantee Program to reduce risks
to consumers and a secondary market for used
batery packs; tells the story of World War II indusstrial retooling
* Electric Vehicles: How Do We Get Millions on
the Road? -- Tom Z. Collina, Ron Zucker --
explores the Better Place and similara business
models and the evolution of the national power grid.
* Electric Utility Issues in Replacing Oil with
Electricity in Transportation -- Steve Marshall
-- explains regulatory policies and electric
utilities; explains why they haven't been behind
plug-ins in ways comparble to oil companies and
internal combustion engine vehicles.
* Promoting Use of Plug-In Electric Vehicles
through Utility Industry Acquisition and Leasing
of Batteries -- Peter Fox-Penner, Peter Dean
Murphy, Mariko Geronimo, Matthew McCaffree --
presents benefits of a new business opportunity.

May 19, 2009 – 1:05 p.m.
CQ Transcript: President Obama Announces New Auto
Mileage and Emissions Standards
http://www.cqpolitics.com/wmspage.cfm?parm1=1&docID=news-000003120709


SPEAKER: PRESIDENT BARACK OBAMA

Thank you. Thank you. Thank you, everybody. Thank
you. Thank you very much. Thank you.

Please, everybody have a seat. Have a seat. What
an extraordinary day. The sun is out because good things are happening.

Before I get started, just some preliminary
introductions. I'll probably repeat them in my
formal remarks, but I want to make sure that I
acknowledge some people who've been critical to
this effort and critical to so many efforts at the state and federal levels.

First of all, Speaker Nancy Pelosi , who has just
been cracking the whip and, you know, making
Congress so productive over these last several days. We are grateful for her.

My wonderful secretary of transportation, Ray LaHood, is in the house.

Lisa Jackson, the outstanding administrator of the EPA.

Some of the finest governors in the country are
here. Let me take them in order of good looks.

Sorry, Arnold.

(LAUGHTER)

Jennifer Granholm of Michigan, Governor Deval
Patrick of Massachusetts, and Governor Arnold Schwarzenegger of California.

(APPLAUSE)

Barbara Boxer just had to leave, but the -- the
head of the Environment Committee in the Senate
who's done just outstanding work. And Senators
Feinstein, Levin, and Stabenow couldn't be here,
because they are busy voting on credit card
legislation that we're going to get done before Memorial Day.

And we've got two outstanding members of the
House of Representatives, John Dingell -- where's
John? Right here. The dean of the House, who's
done so much extraordinary work around these
issues, and Sandy Levin. Please give them a round of applause.

(APPLAUSE)

I also want to mention Ron Gettelfinger of the
UAW, our president who's just been a great leader
during some very trying times in the auto industry.

And Carol Browner, who helped to make this all
happen today, please give Carol Browner a big round of applause.

(APPLAUSE)

Since -- since I'm acknowledging everybody -- I'm
in a voluble mood today -- let me go ahead and
acknowledge my other members of the cabinet who
are here who are part of our energy green team
and do just outstanding work on an ongoing basis.

First of all, my secretary of labor, Hilda Solis.

(APPLAUSE)

OBAMA: The guy who's just cleaning up the
Department of Interior and doing an extraordinary job, Ken Salazar .

(APPLAUSE)

Our head of HUD, Shaun Donovan .

(APPLAUSE)

And our commerce secretary, Gary Locke .

(APPLAUSE)

Now, thank you all for coming to the White House
today and for coming together around what I
consider to be an historic agreement to help
America break its dependence on oil, reduce
harmful pollution, and begin the transition to a clean-energy economy.

This is an extraordinary gathering. Here we have
today standing behind me, along with Ron
Gettelfinger and leadership of the UAW, we have
10 of the world's largest auto manufacturers, we
have environmental advocates, as well as elected
officials from all across the country.

And this gathering is all the more extraordinary
for what these diverse groups, despite disparate
interests and previous disagreements, have worked together to achieve.

For the first time in history, we have set in
motion a national policy aimed at both increasing
gas mileage and decreasing greenhouse gas
pollution for all new trucks and cars sold in the
United States of America. And I want to...

(APPLAUSE)

I want to applaud the leadership of the folks at
the Environmental Protection Agency, the
Department of Transportation, and the White House
Office of Energy and Climate Change who've worked
around the clock on this proposal, which has now been embraced by so many.

You know, in the past, an agreement such of this
-- such as this would have been considered
impossible. It's no secret that these are folks
who've occasionally been at odds for years, even
decades. In fact, some of the groups here have
been embroiled in lawsuits against one another,
so that gives you a sense of how impressive and
significant it is that these leaders from across
the country are willing to set aside the past for the sake of the future.

For what everyone here believes, even as views
differ on many important issues, is that the
status quo is no longer acceptable.

While the United States makes up less than 5
percent of the world's population, we create
roughly a quarter of the world's demand for oil.
And this appetite comes at a tremendous price, a
price measured by our vulnerability to volatile
oil markets, which send gas prices soaring and families scrambling.

It's measured by a trade deficit where as much as
20 percent of what we spend on imports is spent
on oil. It's measured in billions of dollars sent
to oil-exporting nations, many that we do not
choose to support if we had a choice. It's
measured in a changing climate, as sea levels
rise and droughts spread, forests burn and storms rage.

And what is all the more tragic is that we've
known about these costs in one way or another
since the gas shortages of the 1970s, and yet all
too little has been done. Calls for action rise
and fall with the price of a barrel of oil. Worn
arguments are traded across entrenched divides.
Urgency fades. Complacency grows. And time passes.

As a result, we have done little to increase the
fuel efficiency of America's cars and trucks for
decades. Think about this. Consider how much has
changed all around us. Think of how much faster
our computers have become. Think about how much
more productive our workers are. Think about how
everything has been transformed by our capacity
to see the world as it is, but also to imagine a world as it could be.

That's what's been missing in this debate for too
long. And that's why this announcement is so
important, for it represents not only a change in
policy in Washington, but the harbinger of a
change in the ways business is done in Washington.

No longer will we accept the notion that our
politics are too small, our nation too divided,
our people too weary of broken promises and lost
opportunities to take up an historic calling. No
longer will we accept anything less than a common
effort made in good faith to solve our toughest
problems. And that is what this agreement seeks to achieve.

Right now, the rules governing fuel economy in
this country are inadequate, uncertain, and in
flux. First, there is the standard for fuel
economy administered by the Department of Transportation.

On top of that, the Environmental Protection
Agency, in response to a decision by the Supreme
Court, may have to set limits on greenhouse gas
emissions from vehicles, establishing another standard.

California has sought permission under the Clean
Air Act to require that vehicles sold in
California meet yet another even stricter
emission rule. And 13 states and the District of
Columbia have agreed to adopt California
greenhouse gas reductions if the permission, called a waiver, is granted.

Now, car companies might then face three
different sets of overlapping requirements, one
administered by the Department of Transportation,
one administered by the EPA, and still a third
administered by California and 13 other states.

This proposed national policy, under the
leadership of two agencies and bringing together
14 states, 10 companies, as well as autoworkers
and environmental groups, changes all that.

The goal is to set one national standard that
will rapidly increase fuel efficiency without
compromising safety by an average of 5 percent
each year between 2012 and 2016, building on the
2011 standard my administration set shortly after taking office.

A series of major lawsuits will be dropped in
support of this new national standard. The state
of California has also agreed to support this standard.

And I want to applaud California and Governor
Schwarzenegger and the entire California
delegation for their extraordinary leadership.
They have led the way on this, as they have in so
many other efforts to protect the environment.

In addition, because the Department of
Transportation and EPA will adopt the same rule,
we will avoid an inefficient and ineffective
system of regulations that separately govern the
fuel economy of autos and the carbon emissions they produce.

And in a time of historic crisis in our auto
industry, when domestic auto manufacturers are
making painful choices and restructuring their
businesses to be viable in the future, this rule
provides the clear certainty that will allow
these companies to plan for a future in which
they are building the cars of the 21st century.

Yes, it costs money to develop these vehicles.
But even as the price to build these cars and
trucks goes up, the cost of driving these
vehicles will go down as drivers save money at the pump.

And this is a point I want to emphasize. If you
buy a car, your investment in a more
fuel-efficient vehicle, as a result of this
standard, will pay off in just three years. In
three years' time, you will have paid off the additional investment required.

So this is a winning proposition for folks
looking to buy a car. In fact, over the life of a
vehicle, the typical driver would save about
$2,800 by getting better gas mileage.

And the fact is, everyone wins. Consumers pay
less for fuel, which means less money going
overseas and more money to save or spend here at
home. The economy as a whole runs more
efficiently by using less oil and producing less
pollution. And companies like those here today
have new incentives to create the technologies
and the jobs that will provide smarter ways to power our vehicles.

And that's why, in the next five years, we're
seeking to raise fuel economy standards to an
industry average of 35.5 miles per gallon in
2016, an increase of more than 8 miles per gallon
per vehicle. That's an unprecedented change,
exceeding the demands of Congress and meeting the
most stringent requirements sought by many of the
environmental advocates represented here today.

As a result, we will save 1.8 billion barrels of
oil over the lifetime of the vehicles sold in the
next five years. Just to give you a sense of
magnitude, that's more oil than we imported last
year from Saudi Arabia, Venezuela, Libya, and Nigeria combined.

(APPLAUSE)

Here's another way of looking at it: This is the
projected equivalent of taking 58 million cars off the road for an entire year.

I also want to note that the agreement we have
announced today is part of a far larger effort.
In fact, on the other end of Pennsylvania Avenue,
Henry Waxman is chairing a meeting of the Energy
and Commerce Committee, which is working on an
equally historic energy bill that will not only
help our dependence on foreign oil, prevent the
worst consequences of climate change, and build a
clean-energy economy, but will provide more than
$15 billion to help build the cars and trucks of
the future right here in America.

(APPLAUSE)

And the recovery plan we put in place, as well as
the budget that builds on it, makes historic
investments in a clean-energy economy, doubling
our capacity to generate renewable energy like
wind and solar, investing in new battery
technologies for plug-in hybrids, and building a
smarter, stronger grid on which the homes,
businesses and vehicles of the future will run.

(APPLAUSE)

Now, too often lost in the back-and-forth of
Washington politics, absent in arguments where
the facts opponents use depend on the conclusions
they've already reached, absent all that is this:
Ending our dependence on oil, indeed, ending our
dependence on fossil fuels, represents perhaps
the most difficult challenge that we have ever
faced, not as a party, not as a set of separate interests, but as a people.

We have, over the course of decades, slowly built
an economy that runs on oil. It has given us much
of what we have, for good, but also for ill. It
has transformed the way we live and work, but
it's also wreaked havoc on our climate. It has
helped create gains in prosperity unprecedented
in history, but it also places our future in jeopardy.

Ending this dependence will take time. It will
take an incredible effort; it will take an
historic investment in innovation. But more than
anything, it will take a willingness to look past
our differences, to act in good faith, to refuse
to continue the failures of the past, and to take
on this challenge together, for the benefit not
just of this generation, but generations to come.

All the people who've gathered here today, all
the auto executives, all our outstanding elected
officials and appointees, Ron Gettelfinger,
members of Congress, governors, all these folks
here today have demonstrated that this kind of
common effort is possible. They've created the
template for more progress in the months and
years to come. Everything's possible when we're
working together, and we're off to a great start.

So thank you, everybody. Appreciate it.

(APPLAUSE)


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Felix Kramer fkramer@...
Founder California Cars Initiative
http://www.calcars.org
http://www.calcars.org/news-archive.html
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