What does CalSTEP stand for and what’s its purpose?

The California Secure Transportation Energy Partnership (CalSTEP) includes leaders from business, government, academia, and the non-profit sectors who are working together to develop and implement a plan to secure California’s transportation energy future.

Do the CalSTEP members have the background and expertise to tackle this challenge?

The CalSTEP members have a wide array of talent and experience. Never before have experts from the automotive, biotechnology, transit, agriculture, and alternative fuels industry gotten together with leaders from government and the non-profit sector to address this issue in California. Their goal is to bring business oriented solutions that are politically feasible to the attention of the governor and legislature.

What does transportation energy security mean?

It means becoming a lot less dependent on an increasingly volatile and unstable world oil market. It means sending fewer dollars overseas to oil exporting nations such as Iraq, Saudi Arabia, Nigeria, and Venezuela. It means investing more in domestic fuels and creating more jobs. It also means cleaner air and fewer greenhouse gas emissions. Transportation energy security is achieved by being more efficient with the oil we use and diversifying the sources of fuels. All future growth in demand should be met through efficiency and new fuels.

What are the metrics by which CalSTEP will measure success?

For now CalSTEP has adopted the goals approved by both the California Energy Commission and the California Air Resources Board. After two years of comprehensive analysis, these two agencies determined that it was economically and technically feasible for the state to reduce gasoline and diesel consumption in 2020 by 15 percent below 2003 levels. They also set a target of 20 percent of the fuel coming from alternative sources. To achieve these goals the state must start taking action now.

Why now? Hasn’t this been an issue for a long time?

Yes, it’s been an issue for a long time but it hasn’t been effectively dealt with. In the 1970’s there were political oil shocks that created lines and shortages. We’re in a new era now where worldwide supply is not keeping up with demand. It’s a long-term situation. Oil demand in the developing world, China and India will continue to increase. As Chevron points out in its national advertising campaign, “We consume 2 barrels of oil for every one we find. Should you be concerned?”

Why should California address this issue?

California leads the nation in innovation. In particular, California has been a true national leader in terms of policies relating to transportation and society. California is the only state in the nation allowed to set its own air quality standards. To date, nine other states have chosen to adopt both the California air pollution laws and the greenhouse gas control measure. As the world’s sixth largest economy, California is uniquely at risk from energy security inaction, but stands to gain economically from leadership.

Isn’t this an issue that Congress and the President normally deal with?

Yes, but while each recent President has cited transportation energy security as a priority, their track record hasn’t been great in achieving success. Beginning with President Nixon’s “Project Independence” in 1973, almost every administration has announced programs to reduce our dependence on foreign oil. Yet, our dependence on foreign oil has grown from 40% then to 60% now.

Is there a precedent for California handling an energy problem like this?

California was the first state in the nation to establish a Renewable Portfolio Standard (RPS) for electricity generation. By 2017 the state has set a goal of having 20 percent of its electricity come from renewable sources. The state has established a public goods charge, a small fee paid by ratepayers, on electricity generation that provides more than $690 million each year for efficiency, renewable energy, and consumer education programs. Many other states have adopted California’s policies and established their own renewable portfolio standards.

Californians a big oil producing state. Is energy security really a concern?

It’s true that California is the third largest oil producing state in the nation. However, the state long ago outgrew its own production capacity. Though we get a lot of oil from within California, the state’s oil production peaked in 1986 and is declining, while imports from foreign countries grew four-fold in the past decade. Today California imports 36 of the oil it consumes. If current trends continue that percentage could easily increase by 50 percent over the next decade.

Policy goals sound great, but how soon could we expect results and how would we measure success?

The transportation energy economy is huge and change takes time. We need to start the change now in order to see substantial success decades away. There are some elements that can be more quickly adopted—such as fuel substitutions that use existing vehicle and fueling infrastructure—and other elements, such as fleet turnover, that may take decades to achieve. We can measure success along the way.

Aren’t renewable and alternative fuels already being developed?

Only now are alternative fuels and high efficiency vehicles, such as hybrids, now becoming cost-effective. The increase in the price of oil has improved the business case for both efficiency and alternatives. However, the market share for these technologies and fuels is still low. CalSTEP will examine the options and provide recommendations on what public and private sector leaders can do to increase the use of these emerging new technologies and fuels.