Global Warming Solutions Act | Google.Org Speakers | Talks at Google

Wonderful campus. And thank you so much to Joseph DeSimone, our executive chef here in Building 900 for supporting us. All of the catering staff are completely all out with the global Philanthropy forum going on here on campus and we were really grateful that he was willing to step in and do this for us and so thank you. Welcome to the Lieutenant Governor. Governor, we're so pleased to have you here. Been such a leader on these issues over a long time and just grateful that you're in the position you're in now and continuing to take leadership not just on climate, but so many environmental issues dear to our hearts. We@google.org are working on global climate change, working on policy investments as well as public engagement and we look forward to working with many of you going forward. So please stay in touch with us on AB32 itself. We were very proud as Google to have lobbied for its passage back in August, mid August with a team of clean tech companies. We are very supportive of its implementation, staying on course of robust implementation, keep it on track and look forward to supporting, increasing the business voices in support of strong implementation of AB32. And that's why we're so pleased to host E2 as well as SV2 here tonight. All of you are very important as this bill's implementation moves forward. So welcome and thanks very much for being here.

It's the Amy that follows the Amy, so thank you so much. I'm Amy Rao and I'm with E2. I'm an E2 advisory board member and was asked to just welcome everyone here this evening on behalf of E2 and I usually do a little pitch for E2 and I know that this evening about half of our audience are E2 members and about half I think are SV2 members. I feel like no one can see me behind this. I'm leaning over, can I do that? So I just want to say I love E2 and I love the work that they do. And when I meet leaders in the Silicon Valley and people in the business community that say they want to get involved in the environment, E2 is just such a wonderful community to do that with because when you look at so much of the great work being done, AB32, which really stands out and some of the policy that's being pushed in the state government here, a lot of that is the footwork of business of the business community, which are people that belong to environmental entrepreneurs. The organization was founded in 2000. It's only seven years old. It was founded by two great Nicole Letter and Bob Epstein, two just great leaders in the environmental front and the business community, just on what's good for the environment is also good for business and vice versa. And it's just so true. And I just want to just take a moment and appeal to you, if you're not a member of E2, to really take a look at it and even more importantly, appeal to all of you and so much the way that Google does as well, to take an activist role and don't just sit back. It's your planet. I have this discussion with my kids all the time. It's our world, it's our future. And this is just the time in history where we really all have to stand up and fight for this, because there's just so much important work that needs to be done. And the voices that really get listened to in government are the business leaders, religious leaders, just different communities, not just speaking as an environmental group, but speaking as part of the community. Because you're a community leader, you're a CEO, you're a business leader, you're an entrepreneur. Those voices really carry a lot of weight. And E2 is that conduit that allows us to go to Sacramento and go to Washington, D.C. and March and speak on behalf of that policy, because policy matters. And it's one thing that all of us will do as individuals, changing light bulbs and changing the cars we drive, but none of that's going to matter unless we get policy in Washington. And AB32 is just such an important piece of legislation because it will get adopted by other states. California should be very, very proud of that work. Environmental entrepreneurs should be very, very proud of that legislation because they were one of the most powerful driving forces that got that through. And so if you want to do more, and I encourage you to, because we all need to, and you're not a member of E2, and you're not lobbying on behalf of the environment in Sacramento, in Washington, in your communities. Please look at E2. It's just a great group of people to learn a lot. Events just like this evening, you'll stay informed, and they make it really easy to become an activist. So on behalf of you two, please make sure you meet April Moe at the end of the evening and think about joining the march because it matters so much. And now I'm going to introduce Mariana Grossman Keller, who pulled this evening together. And thank you so much for doing that.

Thank you, Amy. And can you hear me okay? Yes. No. Okay. Doesn't go any taller. Okay. So thank you. Also, I'm delighted to add My welcome and I want to thank Andrew McLaughlin, Director of Public Policy and Government affairs and Amy Christianson from google.org who hosted our reception and allowed us to have our meeting here today. And also to Elizabeth Echols who is the Director of Policy for Global Online Sales for Google and her amazing team who did the footwork that made our meeting possible. And also I wanted to add my thanks and everyone's to the to the chef and his crew for helping feed us to and feed the initial part of our meeting. I'm Mariana Grossman Keller. I'm a partner in the System for Sustainability and Innovation in Minerva Consulting, which is a Santa Clara County Certified Green Business and also a member of Sustainable Silicon Valley. And I brought brochures for both of those programs, Sustainable Silicon Valley and the Santa Clara Certification process. So anybody who's not certified, pick up one of those brochures on your way out the door. And I'm also fortunate to be a member of both Environmental Entrepreneurs and the Silicon Valley Social Network Venture Network. And I just wondered how many other people are members of both of those groups who are here. So we have some overlapping membership and I wanted to encourage people to get to know both organizations tonight. I invited the Lieutenant Governor to join us tonight. He began earlier before this meeting advising us on some grant making that we want to do to help with the implementation process for AB32 on the silicon Valley Social Ventures side. And then we thought it would be a good idea to have a joint meeting of our two groups because Environmental Entrepreneurs is so deeply involved in this and we wanted to kind of bring both groups together which hopefully this is one of many future joint meetings. The Silicon Valley Social Venture Fund is the other co sponsor of tonight's event. And like Environmental Entrepreneurs, it's a quintessential Silicon Valley organization that it's a community of entrepreneurs, business professionals and community volunteers who came together under the leadership of Laura Arriaga and the Community Foundation Silicon Valley now the Silicon Valley Community foundation to learn about philanthropy and to pool our financial resources and our knowledge to make a difference in the well being of society. SV2 grants aim to strengthen the recipient organizations like E2. There's always time for networking at our events which is one of the ways that Silicon Valley ecosystem cross fertilizes itself and ensures a fecund environment for new waves of innovation with help like leaders from Amy Rao who is the CEO of Integrated Archive Systems. She didn't mention that important fact. And also Vice President Al Gore and cameo appearances by our friends Rita and Katrina the Silicon Valley community awakened to the threats and opportunities embodied in our too rapidly changing climate change. Last week's report from the Intergovernmental Panel on Climate Change increases our sense of urgency about the need for bold and transformative measures. Cautious incrementalism will surely not be sufficient to protect our children's and grandchildren's future. In a moment, I'll introduce our keynote speaker. After he talks, I'll introduce Deborah Wang and Diane Doucet, Deborah Wang of National Resources Defense Council and Diane Doucet of Environmental Entrepreneurs, who will talk about the Global Warming Solutions act of 2006, also known as AB32, and what we can do, the people here assembled, to help ensure successful implementation. After the panelists speak, the floor will be open for discussion and our meeting will conclude at 8pm we in California are privileged to have as our lieutenant governor a man with the experience, skills and heart to bring us together to forge breakthrough solutions. Lieutenant Governor Garamendi was raised on a ranch in California, so he knows the rhythms of the seasons and the balance of living systems in a visceral way. He and his wife Patty, served in the Peace Corps in Ethiopia and returned inspired to continue being of service. He represented the Lake Tahoe and Sierra Foothills region as a member of the California assembly and then as a state Senator, where he also became Senate Majority Leader. In addition to knowing the games and the players on the legislative side, he has served twice as our elected Insurance Commissioner, and in between he was called by President Clinton to Washington to serve as Deputy Secretary of the Interior, where he worked closely with Vice President Al Gore to prepare the American Agenda for the Kyoto Climate Change Conference. He also advanced the protection of national parks and negotiated the largest habitat conservation plans in the Western United States. So he's been a long term and very effective environmental activist. As Lieutenant Governor, his priorities are to address climate change, education and health care. He works closely with Governor Schwarzenegger, serves on the University of California Board of Regents, is a trustee of the California State University System. He's also president of the State Senate, Chair of the Commission for Economic Development, and serves on the State Lands Commission, the Ocean Protection Council, and the California Emergency Council, which all obviously have very strong interests to address climate change and also to prepare for and mitigate the impacts of climate change. Like an orchestra conductor who interprets a score and elicits the best from all the instruments, Lieutenant Governor Garamendi is uniquely prepared to bring together his deep understanding of the challenges before us, his relationships with people and institutions, and his knowledge of how to accomplish results, he can help industry, nonprofits, academia, state local governments to work together to forge transformative solutions to global climate change. Please help me welcome Lieutenant Governor John Garamendi.

I feel like wandering for a while. I don't know if you're enjoying today as much as I am. Somebody asked me, how's it going to be? How do you like to be lieutenant governor? I am having so much fun. I am enjoying every moment of it because I get to deal with issues that I think are extremely important, issues that I've dealt with most of my adult life and a chance to really make a change. I said earlier that, I guess during the course of the campaign that why Lieutenant governor said it's got the second best sound system in the state, a chance to use this podium, use the microphones to really address some of the fundamental issues we have. I just noticed that there's a guy back webcasting or at least putting this down. So I'm going to wander here, I'm going to wander there. See if you can keep up with me. I'll try to kind of stand still. No, I'm not going to do that. Let's talk about national security for a while, shall we? Let's talk about the security of this nation. Let's talk about the security of us as individuals and what we're going to do about it. If we're going to look at national security, most people say, oh, Iraq, Iran, what are we going to do about that? That's important. But that's not what we're going to talk about tonight. We're going to talk about national security in a different way. We're going to talk about national security in a profoundly important way for all of us. And if we were to lay out the national security issues, okay, Iraq, Iran, blah, blah, okay, Afghanistan, good. Very important. Different night, different subject. We would talk about education. Right. Our nation's security isn't going to be secure for long. If we don't have the best educated workforce in the entire world, we will not be able to have a robust economy. We're competing with people that are educated, producing engineers, scientists, technology, all of those things. And if we don't get our education system together, our nation's security is in bad shape. Not this generation, no. We'll all be gone. We're talking about the next generation. We're talking about our children, our grandchildren. But already we're beginning to see the effects of that. But this night is not about that national security issue, but we want to put it up There as one of those fundamental things that we must deal with. I suppose that. Yeah, I'll talk about this one for at least a moment. We'd add to that national security list health care. Why? It's personal, folks. We're talking about. Lose your job, lose your health insurance, lose your health. Right. Nobody here, Google's growing and there's all kinds of opportunity in the Silicon Valley, but the turnover in the Silicon Valley is one of the highest in this nation. So health care, personal issue. On a more large issue, we got 40 some million, 46 million Americans without health care, 6, 7 million Californians. For them, this is a security issue. But what I'd like to say is on health care, when you burn 16% of your total GDP, actually it's going to be 17% at the end of this year of your GDP on an extraordinarily inefficient, ineffective system. That leaves 42 million people out of the system. You've got a serious, or we have a very serious national security issue because our competitors are using 10% and all of their people are in a system and they live longer, they're healthier, and they're at the job more often because they're healthier. Next point, it's going to be 19% in three to four years. Our competitors will still be at 10%. We're giving away 9% of our GDP for an extremely wealth, inefficient and ineffective health care system. We don't deal with that when there won't be money for education. There won't be money for research, transportation, all the things that we need to do to become and stay competitive. Let's see, we've got Iran, Afghanistan, Iraq, education, healthcare. Tonight's subject is the environment. Really, it is about energy policy. National security issue number four, energy policy in this nation. The American energy policy is as foolish as is our health care policy and our education policy. It is a major national security issue that we had better address right away. Fail to address this issue and we are committed to continuing to place our future in the hands of the most dangerous places in the world. Iraq, Middle East, Russia, Indonesia, Venezuela. And then there's that place called the Gulf of Mexico where we expect to have some of the most severe hurricanes in the last hundred years. This year, last time we had a severe hurricane go through there, we lost a third of the production. Gas prices went up, our security went down. Our national security is at risk because of our nation's energy policy, and we have to change that energy policy. In California, we are leading in changing the energy policy of this nation because we know that we cannot depend any longer on the consumption of foreign oil. And there's this other piece of the national security issue here, and that is that future generations are being condemned by us to a very serious and in many cases, horrific future because we are contaminating the atmosphere with greenhouse gases. So for those two reasons, we would put energy policy right up there on the top list of things that we must do if we're going to have a secure nation for ourselves. Now that is where we're getting our current energy and for future generations in what we leave for them. How do we do this? We have to change our energy policy. We have got to come home and get our energy policy from things that do not burn. Fairly simple. We just don't burn things anymore, right? Not so simple. Not so simple. It's going to take a fundamental change in the very nature of our energy infrastructure. And that's what we're talking about tonight. We're talking about those public policies that force us to change the way in which we gather and use energy. We can do this. We're all familiar with Al Gore's Earth in the Balance. How long ago was that? 1992. We're all familiar with his more recent work, An Inconvenient Truth. That seemed to have been the tipping point here and that tipped this nation's awareness. Now, the rest of Europe was way ahead of us on this, but tipped this nation's awareness as to this problem. And we're now into a new awareness and apparently a new willingness to deal with this fundamental problem of where we get our energy and how we use and consume that energy. AB32 is but one more step along California's progress on this issue. We've been at this a long time in California, usually in a start, stop, move on, forget about yesterday. Price of gasoline has gone down. Not to worry. We can continue doing what we're doing. Anybody here that was around in the late 70s? No. Some of you are young. I know some of us were around in the late 70s. We had this little thing called the energy crisis. Remember that? So what did we do? We had a president that put on a cardigan, Right? But he did something even more important. He set in place policies that had we stayed with them in the years since Jimmy Carter, we would be in a different situation today. My guess is we wouldn't be at war in Iraq. And there's a whole lot of other things we wouldn't be doing, like contaminating the Environment as we are today. But we didn't do that, did we? We backed away. In 1978, I carried a bill, became law. It was the first law in the state of California to provide a solar wind conservation tax credit. Lasted for a few years. It, it dribbled out. I renewed it. Start, stop, start, stop. We've been doing that ever since. We need in place today a long term strategy to move us away from dependence upon things that we burn to things that are renewable. Solar, wind, biofuels, biomass, all of those things. And we can do that. No place is better positioned than California to achieve it. If we do that, then there is going to be a solution to this climate change problem and at the same time a solution to our dependency upon the most dangerous places in the world for our very economic life. In California and in this nation, it's all possible and we are doing it. The one thing that is going to propel this even faster is a bit of wisdom that I learned 10 days ago when I was down here for a dinner with Carl Guardino's group. And after dinner we were talking about all these things and the excitement about AB32 and the rest, this guy came up to me and said, you know, here it is. This place is about taking an idea and changing it into money. I go, huh? He said, yeah, that's what we do here. We take ideas and we change it into money. I go, hmm. You know, I think he has something and I think that's what E2 is about, isn't it? Environmental entrepreneurs. Now, I don't do this in a crass way, and he didn't mean it in a crass way, but he said there is an incredible opportunity for this valley, for the state nation to transform itself yet again. Agriculture to computers, to chips, to biotechnology, medical technologies, and now into energy technology. That opportunity presents itself at this moment. AB32 related legislation. All of the effort to move away from greenhouse gas energy systems to systems that are both advanced efficiency and conservation, to systems that move us to solar, wind and the rest are in fact incredible entrepreneurial opportunities. We need good, solid public policy that lasts for decades for this potential to manifest itself. And I know we can do that. But it is not yet firmly in concrete that it will happen. Or in other words, the concrete hasn't dried around the feet of this policy so that it won't move. We're in a position right now in California and in this nation about whether we're going to kind of move a little bit towards renewables conservation, moving away from carbon based fuels to a solid fundamental change in our nation's energy policy. California is in a position to lead this. Thankfully, we've got a governor that got it took a little lesson in 1995 in a special election, but he got the idea that Californians didn't want to go back, they wanted to move in a different direction. And Schwarzenegger has taken the lead in this and we're very thankful for that. Working with him. I am. And Democrats working with him because he's going where we want to go, where some of us have wanted to go and have gone for the last 30 years or more. So we've got this potential. Now we must make certain that the legislative programs in California are not eroded, that they remain strong, that the regulatory issues which you're going to hear about in a few moments are not pablum for babies, but really good food. Since I'm a rancher. Steak for. Oh, I see some of you are vegetarians. Okay. Solid health food for a healthy economy and a little steak for the rest of us. Okay, we have to do that. You're going to learn a great deal here in a few moments about AB32. But it is in the process of taking that outline of policy and making it solidly, firmly in the long range plans of the state of California. If we do that, we will lead the nation and we will develop an incredibly powerful new industry in California. I'm going to go back to those issues of national security, wars that waste our precious resources and our lives and position this nation against the rest of the world are not very wise things to be engaged in. So we've got to get past that and I think we will. We cannot waste money on inefficient systems. We do not have enough money to be wasteful. We have competitors that are powerful, eager and extremely smart. And so systems like an education system that underperforms a health care system that underperforms that consume a vast amount of our resources, we have to change those systems. We've got to be ready to move forward in numerous ways. That's a different speech at a different time for each one of those. And the energy policy of America has got to change and California will lead that change. And we've got to be steady and strong in the direction of moving away from fossil based fuels, efficiency, conservation, all of the other energy sources. And in order to do that, the next six months are crucial. Nine months. The next nine months are crucial because those months will be the period of time in which the actual implementation of AB32 will take place and additional legislation will be before the California Legislature that will modify in a positive, stronger way the foundation that's been put in place with AB32 and the other pieces of legislation that preceded it or legislation will pass that will erode the progress that's been made and regulations will be written that will either strengthen and move us forward or weaken and put in place the implementing rules that will come up short in addressing the problems that we have. It is a great joy for me to be here. I'm going to learn something and I'm going to continue to use this microphone and others to advance this whole cause. Thank you so very much.

Thank you so much. I'm going to introduce both Deborah Wang and Diane Doucet so that I'm not popping back up in between their talks. And we are really lucky to have them here tonight. Deborah Wang is the director of California Energy Program at the Natural Resources Defense Council. She promotes energy efficiency, renewable energy and other global warming initiatives and solutions through research and advocacy. And for those of you who don't know, nrdc, it's really a remarkable organization. And one of the benefits of just selling E2 for another moment of being part of E2 is that they have workshops to like the event tonight. And I certainly learned a lot about climate change and oceans and the other focus areas through the staff of the National Resources Defense Council. So she Also, Mr. Garamendi will be happy to hear, is an alumna of UC Berkeley, and she has degrees in energy and resources, a master's degree in that and a bachelor's degree in bioengineering. And she was intimately involved in drafting the drafting process for AB32 and also is working very hard on the implementation as well. So we'll hear from her. And then Diane Doucet, who has a PhD from Berkeley.

Is going to be.

In political science, is going to be talking about the Environmental Entrepreneurs Climate Campaign, which is a way of helping business people like ourselves to make a difference in this process. And she has an amazing background, including time in the Soviet Union in the business and telecom business, and has a lot of knowledge about strategy and how to make policy happen. So she'll be talking more about what business people can do to help implement this policy. Thank you.

Well, thank you, Mariana, for the invitation to be here tonight. It's really a pleasure. And thank you, Lieutenant Governor, for your inspiring talk. You know, California has really already become a model to the rest of the country and the world on global warming. And largely that's because We've been able to do demonstrate true bipartisan leadership on this issue. And you really exemplify that. You know, that's an important lesson for our leaders in Congress. So we thank you for all of your efforts there. I'm very happy to be back here in Silicon Valley, not just because I'm a native, but because this area really exemplifies the spirit in California of being able to tackle really some of the most challenging problems while thriving economically, turning those ideas into money. And that's really what we're going to need. We're going to need that spirit, harness that spirit to tackle global warming. And AB32 really gives the green light to all of the entrepreneurs in our state to tackle this issue and hopefully to make California the home of the growing clean energy, clean technology market. So what I wanted to do is just briefly provide a few more details on what AB32 does, how it creates this economic opportunity, talk a little bit about the solutions to global warming that we expect the state to implement, and tell you a little bit about the implementation process that we have ahead of us now that AB32 is law and we're moving forward in the regulatory process. So first I wanted to just start by putting AB32 into context. It's a really significant step forward. You all probably saw the headlines not just around the country when it was passed, but literally around the world, in the European Union and China, all over the place. And that's because California is now the first state in the country, our country, that is the largest polluter in the world. We're the first state to adopt a statewide limit on pollution. And not only that, but if we were a country, we would be the 12th largest emitter of global warming pollution in the world. So as we're committing to reduce our pollution, that's going to make a significant impact. Probably more importantly than that, we've shown many times that when we take the lead on important environmental issues, other states follow, the federal government follows, and indeed other countries follow our lead on these important issues. So we can magnify our impact significantly through that. So what does AB32 do? Well, it establishes a high level framework for limiting the state's pollution. It does three main things. First, it sets an economy wide limit. It commits the state to return our pollution back to 1990 levels by the year 2020, which is almost a 30% reduction below forecasted levels in that year 2020 under business as usual. And it gives the Air Resources Board, which is a trusted regulatory agency, wide variety of tools, including both traditional regulatory approaches and market based approaches, along with enforcement authority to develop programs to meet that limit. The second main thing it does is it requires the Air Resources Board to establish a mandatory reporting program for significant emitters so that we can track our progress towards that 2020 limit and so that we can monitor and enforce compliance with the programs that are established pursuant to the bill. And the third main thing it does is it provides a number of guidelines for the Air Resources Board to use in developing these policies so that they meet a variety of public policy goals, like ensuring that the greenhouse gas reductions are real and permanent, ensuring that they complement the state's efforts to improve air quality, rewarding those companies that have voluntarily taken early action to reduce their emissions, et cetera. So it sets out this overall framework. It really establishes this great economic opportunity for the state by setting that firm pollution limit. And it does that for a couple of reasons. First of all, as we've heard, our pollution comes from burning fossil fuels. More than three quarters of our pollution comes from that. It's from the oil that we use in our cars and trucks. It's the coal and the natural gas that's burned to produce our electricity, and it's the natural gas that we use in our homes and our businesses today. That's a significant drain on our economy. We send $30 billion every year straight out of the state to buy those fossil fuels. So when we can reduce our emissions, reduce our reliance on those fuels, we can keep that money here at home in our economy to reinvest in the clean solutions. There's also been numerous studies done, including a study by the Air Resources Board and a team of economists from UC Berkeley and Stanford that found that the strategies to reduce our emission will provide significant economic benefits and job benefits for the state. But probably the most important thing it does is it sends a really clear signal to the market that technologies that reduce greenhouse gas emissions can be profitable. Today, it's free to emit that pollution. And so who's going to make investments in technologies to reduce it? And if you look around the world, really every developed country other than our own so far has committed to reducing its global warming pollution. That's going to mean that they're going to need to make substantial investments to transform their energy infrastructures into a clean energy infrastructure. And who? Whoever can lead that market, whoever can sell those technologies to the world is going to reap enormous economic benefits. Today, the US spends $750 billion every year on energy. The world spends trillions of dollars. So we're Talking about who's going to capture that leadership position in this clean energy market that's really taking off around the world. So I want to spend a little bit of time just talking about what strategies we expect the state to take to cut our pollution and then go into a little bit more detail on the implementation process that is unfolding right now. So the good news is that we know how to cut our pollution. And I'll tell you a little bit about the primary strategies that we expect the state to pursue. Last year, a team of state agencies issued what is called the Climate Action Team Report, and that really detailed dozens of strategies that the state can pursue to cut our pollution. I'm going to talk about them in broad categories. The main eight strategies that we expect the state to take. I'll start with the utility sectors. Electricity and natural gas, utilities. And there's really three main strategies there. First of all, energy efficiency. Getting more work out of the energy that we use is the cheapest and cleanest way to meet our needs. And California has four, for many years, for more than 30 years, been a leader on energy efficiency. We've achieved some truly remarkable things. For example, if you look at California's per capita consumption of electricity over the last 30 years, we've basically managed to maintain it flat. We haven't increased our per capita consumption. If you compare that to the rest of the United States, they've increased by 50%. So that means we've saved enormous amounts of money and cut our pollution very significantly over that time. So we've done a lot, but there's a lot more that we can do there. And that's going to be one of the foundations of our efforts to reduce greenhouse gas emissions. Second main strategy is renewable resources. California is blessed to have very substantial renewable resources like wind and sun and geothermal resources. And we currently are a leader again in using those. We do generate about 12% of our power right now from renewable resources. We have a state goal to get to 20% by 2010, and we can do even more. We can go to 33%. And that's the goal that the governor has set out and the California Energy Commission has set out to continue increasing. And not only does that reduce pollution, but it also helps protect electricity customers from the very volatile prices that we've seen in the natural gas sector. The third key strategy there is cleaner power plants. When we are going to use fossil fuels to generate our electricity, we should be using plants that are as clean and efficient as possible. Another one of the landmark laws that California passed last year Senate Bill 1368, authored by Senate President Pro Tempor makes California the first jurisdiction in the world actually to set a greenhouse gas performance standard for power plants. And what it does is it says that any new long term financial commitments that California's utilities make on behalf of all of us, their customers can only be with plants that are at least as clean as a combined cycle natural gas plant. Now this has been truly significant. It's already had a big impact on the market. And that's because if you look around the west, there are dozens of dirty conventional coal fired power plants being plan throughout the west using hundred year old technology. These are the most highly carbon emitting technology that exists for generating our electricity. Most of them wanting to sell to California. What this law says is we're not interested in putting our customers on the hook for these plants that are going to last 50 or 60 years or even longer and become bad investments almost as soon as they're in the ground. And instead it helps shift the market towards cleaner technologies like renewables and more advanced technologies that potentially can use coal, but can use it in a way that doesn't have the same types of emissions. For example, IGCC technologies that can capture and store their carbon emissions. Now in the transportation sector there's also three main strategies. The first is cleaner cars. This again is an area that California has been a pioneer. In 2002, Assemblymember Pavley authored the now famous California Clean Cars law, making California the first state in the country again to limit pollution from our vehicles. The automakers have sued to try to overturn that. That is still winding its way through the courts though. California just got a big leg up in that case with the recent Supreme Court ruling that carbon dioxide is indeed a pollutant under the Clean Air Act. And so we look forward to having that resolved quickly. Second key strategy is low carbon fuels. We need the cleaner fuels to power our cleaner vehicles. That could be anything from cellulosic ethanol to clean electricity or natural gas. And you probably heard in the Governor's state of the state at the beginning of this year he announced a low carbon fuel standard to help get these fuels into the marketplace. This is good for California to reduce our dependence on oil, protect all of us from the increasingly frequent price spikes that we all see at the pump and give us more choices in our transportation fuels. The Governor proposed this to be one of the first large measures that will be adopted under AB32 as an early action measure, which I'll talk a little bit more about. And basically what he proposed proposed was a standard that would require fuel providers that sell transportation fuels into California to meet a declining standard, on average of about 10% by the year 2020. So start getting all of those fuels into our mix. The third key strategy is smart growth, designing our communities, building our communities in a way that we have more options so that we can walk or bike or take public transportation, transit to a lot of the places that we want to get to. And this has become a really interesting issue that's being very actively discussed in the legislature this year, in part because the voters, as you all know, approved $40 billion in infrastructure bonds last year. So we're now about to embark on a massive investment in our infrastructure. And there's a lot of effort and discussion underway now to make sure that we invest those funds in a way that will also help reduce greenhouse gas emissions and improve quality of life for folks in these communities. Now, the final two strategies I want to touch upon are also very important. The first is water efficiency, which is somewhat unique to California. And that's because we have an incredibly intensive water supply system in our state. We use nearly 20% of our electricity, and a third of our gas goes to the overall water infrastructure. That's because we pump water over very high mountains to Southern California. We use energy to treat our water, heat our water in our homes, treat the wastewater, et cetera. And so there's big opportunities to use water more efficiently. Save water, save energy, save money, save greenhouse gas emissions. And of course, water is only going to become a more precious resource as global warming puts a strain on our water supplies. So it's a very important part of the implementation package. And finally, forestry is an important part of the solution as well. Forests can help remove global warming pollution from the atmosphere. They can help smooth the transition to the clean energy infrastructure. And that's going to be an important part of the package. Now, there's numerous additional strategies that I won't go into. Things like recycling, things like electricity, electrifying diesel engines, many additional things that are on the table, and these are some of the ways that the state has already thought of to get there. But one of the important things about AB32 is the signal that it sends for innovation. And experience shows that once a clear pollution limit is set, that the market is going to come up with even better ways to reduce pollution, providing even larger benefits to of the state than we could imagine today. So hopefully in 2020, we'll look back and have all sorts of new and exciting technologies that we've been able to implement then. So AB32 establishes basically the umbrella framework. And really now all of the hard work begins to design the policies to get these clean energy solutions, these strategies to reduce emissions deployed more widely. The good news is that we have a significant head start start in a lot of these areas, but we have an awful lot of work left to do. So who's going to be doing all of this work? Well, AB32 creates a central role for the Air Resources Board, as I mentioned, but there's going to be many different agencies involved in the effort. The Climate Action Team, which is a team of state agencies that the governor created, led by the Secretary of the California Environmental Protection Agency, is the forum for corporate coordinating all of the efforts that are happening at the different agencies. And so it's going to be the sum of all of the programs that the Resources Board develops, the Public Utilities Commission, the California Energy Commission, Integrated Waste Management Board, et cetera. There's probably half a dozen or so agencies that are part of this effort, and it's going to take all of their combined effort to get us to that 2020. So the law sets out some clear milestones for implementation. And carb, the Air Resources Board, has already taken some of the first steps. They've appointed two advisory boards that were called for in the law, an Environmental Justice Advisory Group and an Economic and Technology Advancement Advisory Committee. And Bob Epstein, one of the co founders of Environmental Entrepreneurs, is the vice chair chair of that economic advisory group. And then over the course of this year, CARB is going to be doing two important things. First, by January 1st of 2008, they must adopt the 2020 limit. So they need to determine what emissions were in the year 1990 to set that level. We already have a good sense from the inventory that the state has been keeping, but it's a public process to make sure that all of the kinks are worked out. And the second key thing by January 1st of 08 is to develop the mandatory reporting program for significant emitters over the course of the following year. By January 1st of 09, the Air Resources Board will adopt what the law calls the scoping plan, which is basically the overall plan for how we're going to get to the 2020 limit. It's how all those pieces fit together. All of the different programs that are going to get us those reductions, they'll put that plan together and we expect that that will include additional regulatory programs like the low carbon fuel standard, as well as market based approaches like a cap and trade program. All of those will be part and parcel of that scoping plan. They'll adopt that by 09. They'll spend the next two years turning those into regulations. And then the enforcement and actual implementation will start in the year 2012. Now, the legislature didn't want to wait that long to have anything happen. There's lots of things that we can be doing earlier. And so the bill also has a parallel path for what are called early action measures. These are early regulatory measures that CARB will adopt a list of those the middle of this year, and then they will put those in place and actually have them implemented and begin enforcement by the year 2010. So those are things that can happen relatively quickly in the regulatory timeframe. So implementation is moving along very quickly. There's been lots of activity, lots of workshops. And of course, the lawsuits aren't far behind. We expect the coal industry to file suit to try to overturn the SB 1368 greenhouse gas standard for power plants very soon. They've already started the appeal process at the regulatory agency. And we expect plenty of other industries to challenge the implementing regulations for AB32 as well. So not only are we in the process of developing the policies, but we're working hard to design the programs in a way that they'll be able to withstand these legal challenges. We're also busy working to build support for strong implementing programs. The lieutenant Governor mentioned that's going to be really important, important that this be a strong program that sets California on the path to achieve the really deep reductions that the scientists say are necessary by the year 2050. And so we want to do so in a way that's going to ensure that we meet or beat that 2020 limit and provide those significant economic benefits and additional environmental benefits for the state as well. Now, no one has been more important in this effort than environmental entrepreneurs. They've been accused ally throughout this process. And their business coalition has really emerged as the primary business voice offering up constructive solutions for how to reduce emissions and bring economic benefits, clean tech jobs, clean tech businesses to the state. You'll hear more about this. But the coalition support all of the people, many of them here tonight, who participated in the campaign over the course of the last year to help get AB32 implemented, were absolutely key to its success. It's amazing what a difference just a handful of individuals can make. And we expect the coalition to be even more important as we work on getting these strong programs implemented. So it's my pleasure to turn it over now to my colleague Diane Doucet. Who will tell you more about environmental entrepreneurs efforts there.

First, I'm going to talk to you a little bit about the role that business has played in getting AB32 passed. And then I'll talk to you about the AB32 implementation process in the E2 climate campaign. And then I'll talk to you about some of the challenges that we're confronting both in this campaign and in the climate issue in general. So, as Deborah mentioned, the role of business in getting AB32 passed was essential. The bill would not have passed if we didn't have business support. We targeted many different constituencies, but by far we focused a lot of our attention on building business support. I wasn't actually working for environmental entrepreneurs at the time. I had the amazing privilege of working on the AB32 campaign and trying to build the support coalition for that. But because I was building the support coalition, I worked very closely with environmental entrepreneurs. They had been the first business group that actually got on board AB32. They had already started doing a lot of the outreach to business organizations. So when I came on board, I just had to build and expand that effort. And in the end, environmental entrepreneurs made about 120 lobbying visits to Sacramento. So they had a really significant role in that. Basically, the campaign had two goals for, for the business effort. And the first goal was to show the policymakers, both administration officials and legislators, that there was substantial business support for this. What we had to do was really counter the opposition, who was very well activated. And the opposition were those folks that really had a stake in the old energy economy. And basically we brought lots of folks in to Sacramento and they had to answer the claims that the opposition were making. And the opposition made the claims that this was going to hurt the economy, it was going to hurt business, businesses were going to leave the state, were going to lose jobs. And then there was a whole new complaint that we hadn't heard before in our environmental work, but that why should we do anything? Because China is not doing anything. And the thought that we would wait and defer our leadership to wait for China, Chinese leadership on the environment was a little surprising to us. So we went out to the Silicon Valley, we lobbied lots of different businesses, brought them up to Sacramento, and they made the arguments themselves. So we brought some of the solar manufacturers up and they said, well, we're actually not leaving the state, we're coming here, we're bringing lots of folks with us. We're going to create so many jobs. We brought lots of the venture capitalists up and they talked about the fact that in 2006 clean tech investment in California was going to double. We brought lots of CEO organizations up, we brought the San Francisco Chamber of Commerce and they were making these arguments for us. Several of them made the arguments that Devorah spoke about earlier about the first mover advantage that, you know, we would set that cap, it would be a signal to the market investment would flow to California. We would create the jobs, we would create the, the technology that was then going to fuel China and India and who better than California to be the gateway to Asia on this issue? The second goal we had, in addition to convincing the administrative and legislative officials, which we think we were able to do in the end because they all were very supportive, our second goal was to change the frame of the debate on this issue. For so long it's, this issue has been been framed in the debate that this is businesses versus environmentalists. And we knew that just wasn't so. So we had to change that debate. And we were focusing on this is the high tech businesses, the businesses that really care about California's clean energy future and are actually going to move us to that energy future versus the businesses that want to protect the status quo and really want to protect themselves against any kind of competition. So again, we brought lots of folks up to Sacramento. We put them in front of the press. They had these press conferences where they just came out and said, you know, businesses are divided on this issue. We're not one homogeneous entity. We all have different ideas about this. And we believe that in California we have sufficient experience to move this forward. And so the next day the San Francisco Chronicle came out and said businesses are divided on this. And then that was the frame that was used throughout most of the campaign. And that's something that we have to continue to do. We never got that frame, you know, on a national level. We did get the New York Times actually to say that this is high tech companies versus smokestack companies. But we've sort of had some backsliding on that right now. We haven't really focused on that frame. And for those of you that are going to be interested in following the federal legislation also, this is a frame that we really have to work on. We can't allow them to say the business community opposes this because the business community is not one entity. And so we really had to focus on that. Okay, now I'd like to talk to you a little bit about AB32 implementation in the E2 climate campaign. The E2 climate campaign, we call affectionately the E2C2. And basically we created that campaign right after AB32 is passed because we realized right after the bill was passed passed that the opposition didn't miss a beat on this one. As soon as the bill was passed the next day there were articles in the paper and for the next week after that saying, I don't know what everybody's so excited about. Nothing really is going to change, nothing's going to happen for 2012. This is just really political symbolism. And for those other states that are looking to take action, you just better wait and see what happens in California. And we, that was exactly what we didn't want to happen. We wanted to make sure that, you know, we want to build the momentum on this. And so Bob came to me and said, hey, why don't you stay on the campaign and let's really build a campaign. We have activated all these businesses right now. We have this amazing asset that we should use throughout the implementation process, which is going to be approximately a five year process. So we worked together to create the climate campaign and it basically has as its main goal is to make sure that AB32 is effectively implemented. That means we meet the targets with an economic benefit. But we also want to keep the positive drumbeat going because we know it is going to be a long time throughout this implementation process. And we want to make sure that we talk about the good news stories. We know that there are technologies out there right now that are going to help us reduce our greenhouse gas emissions before 2012. And we want to be the folks that are communicating that information and we want to catalog all that and get it out in the press. We also want to help create the clean tech market here in California and have California become the global leader in this. So we had three strategies in our campaign to go about doing this. One was we had to expand the business network that we had for AB32. And so we created this group called the California Business Climate Network. And Basically it's about 15 business organizations right now, several individual business leaders and lots of businesses. And basically we get together and it's an information sharing group. Right now it's a coordinating entity. What they're looking to us for is leadership on when should they get involved in AB32? Can we help them write their testimonies? And we do that a lot. And what are the big issues that they should be focusing their time on? Because some of these folks are down in the valley and they're working on these great technologies. They don't have time to follow it. So we'll just say, you know, May 31st, there's going to be this Technology Advancement Council meeting. We really need somebody that's working on your particular technology to get up there and speak in Sacramento. So that's one of the things we're doing. This network also. We hope to spread it nationally. Several of us in this network met with Barbara Box's office once. She. Once the Congress changed, and we said, what can we do to help you in your new role? And she said, to do what you did in California for the whole country. And we thought, whoa, we'd love to be able to do that. We don't have the capacity right now, but if we work with all these business networks, we hope that they will have some of the contacts also in Montana and Wyoming and Michigan, where we're going to need to really rally businesses for federal legislation. The second part of our campaign is an E2 internal team, but we'd love to open it up to. To other folks that want to do this. In the ideal, this is what it looks like, because we haven't quite gotten there yet. But we want to create 10 teams that are focusing on most of the strategies that Deborah talked about. We want to have a team that's looking at energy efficiency, at water efficiency, at renewable energies and renewable fuels, and find out where we can get more reductions on that. Actually, we have Rick degolia here, who is right now our water team, and if anybody wants to help him on that. And basically what we're going to be doing is cataloging all the innovations that are happening and trying to plug in new reductions. For example, the state came out and said that there was a certain amount of tonnage that they could get from reductions in biofuels. And some of the folks at E2 worked on that and said, no, actually, we can find 16 million more metric tons on that and San Diego area and Imperial Valley. And so we're bringing that kind of information to Sacramento. And the third angle that we're looking at right now is the etac. That's the Economic and Technology Advancement Advisory Committee. One of the things we really wanted to do was to get Bob on that committee, because we know that that's going to be the committee that's looking at how do you attract private money to California, how do you advance certain technologies? So we lobbied for that. And fortunately, he got to be the vice chair of that committee. And so what that committee is going to be doing is putting out a report by the end of the year that focuses on how do you Attract companies? How do you create incentives? How do you make sure that you don't have another major company like Tesla leaving the area? How do we keep them here in California? And just so that in case you're interested, on September 6th in the Silicon Valley, the ETAC will be meeting. And so you will have an opportunity to come and do public speaking there, if you like. September 6th and E2 will be working with the MIT Club of Northern California to create a technology fair so that all the folks that are coming into town for that will be able to look at all the new technologies that are coming out there. So now I want to talk to you a little bit about the challenges that we are confronting. And there are three main challenges. And the first one is with the business opposition. They didn't go away after AB32 passed. We were hoping that would happen, but nope. There are now three major business coalitions that have been formed to fight some of the AB32 implementation. They call themselves. They're saying that they're no longer anti AB32, but that just means they're not going to file a lawsuit against the state on that. But they're all the groups that opposed AB32, but they really took a lesson out of our playbook in that they're treating this like it was a campaign. They have their campaign websites and they're using our language. They're saying, we want to attract innovation, we want to create new jobs, we want to make this cost effective, we want California to be a leader. And they're going around and they're recruiting a lot of the businesses that supported our campaign in the summer for AB32, and they're convincing them to go over to their campaign. And the issue that we're concerned about is the issue that the lieutenant Governor brought up, and Deborah referred to that a little as well, is that some of these public policy details, they're very, very nuanced. And you want to make sure you get it right in California. And we know that the folks that were anti AB32 will be trying to make the policies that get implemented less effective. I have no doubt in that. And that's the part that we're really working against. And basically, you know, our mantra is that this is a business opportunity for California, an economic opportunity. And their mantra is more, please protect us from any competition, try to protect the status quo. And that's what we'll be struggling up against. And we'll be struggling up against that for the next couple of years. What are the names of those well, the Chamber of Commerce, there's another group down in California that hasn't, you know, they're going by the name of the California Climate Coalition, but I don't know if that's an official name. And then another group, SEIB, they opposed AB32 and they're saying that they're not opposing it now. CEIB is the council for Economic and Environmental Balance. Yeah, it's the balance part. Okay, okay. And another challenge that we're confronting is the limited scope of our coalition right now. And that's because we just got started. We're basically focused up in the Northern California area. It's large, exciting, everybody wants to participate. But actually we have to get down to San Diego, we have to go to Los Angeles, we have to get to the Central Valley, we have to get to the Sierra Nevada and we have to get to the Central Coast. And any of you out there have any outreach experience or any contacts in that area, it would be great to work with you on that. Our opposition are already there. They're there by virtue of many cities having chambers of commerce, and they'll activate them when they need to be activated. But we know that there are so many businesses down in San Diego and Los Angeles and the Central Valley that are ripe for the picking for clean technologies. Lots of folks in Fresno working on water technologies, working on solar. There just isn't the driving force out there right now to activate them. And we need a driving force to do that. And so that's a challenge that we're confronting and we're trying to figure out how to do that. The other challenge that we have is that there's been an amazing sea change in the climate discussions in the past year since we started our campaign. You know, the Congress changed. The EPA last week, was told that they can actually in fact monitor carbon dioxide. Al Gore got the Academy Award. This came out this week. I don't know how many saw the Newsweek piece. I mean, the IPCC that Marianna talked about talking, you know, the international scientists saying that there was consensus on global warming. Lots of institutional investors talking about going to Congress and saying you have to do something about this. Lots of big multinational companies. So there's such a sea change. And we're getting calls all the time saying we want to help, just tell us what to do. And we want to be able to capture all those opportunities. We just haven't built the infrastructures yet. There's no doubt that we need a very large, forward thinking business voice across this country. We just haven't had the opportunity to put those capacities in place. We're building them very slowly right now. It's me and Bob and it's our network of wonderful, wonderful business coalitions. And we're going to try to continue to build that capacity. But if all of you would like to get involved, I would love to hear from you. I have a very simple email address. It's Diane2.org and I'd to be able available to talk to you after this as well.

Thanks. Thank you, Deborah and Diane, I think the best antidote to anxiety is action. And so I'm really pleased that we had this conversation tonight. And I'm going to invite Lieutenant Governor Gary Mendy to come back up. We now have an opportunity for questions and answers and discussions, discussion and for about the next 15 minutes. And then we have a couple minutes to close. We are videotaping this. So please stand up and say your name, what your affiliation is. And then also I'd like the person with the microphone, you guys can share that one and you get to use this one to repeat the question so that it will get captured in the videotape. And we'll share the videotape with both SV2 and E2 so that people who weren't able to come to the conversation tonight will be able to access it. That's the purpose of videotaping it. We're not planning to broadcast it. But just for the people who couldn't be here, there's a competition with lots of other events going on. So please, if you have questions, raise your hand, introduce yourself, and. Yes, actually. Sorry.

Okay, go ahead.

Hi, I'm Paul Winsberg. I'm considering joining SV2. I'm. I'm with a Global 360, a software vendor in Alameda. My question is, I've noticed the curious absence of nuclear power from this discussion. And in the wake of An Inconvenient Truth, the risk of radioactive waste seems low relative to the risk of climate change. So I wondered why we're not hearing about nuclear waste and what John has to say about it. Okay, you keep the microphone. We've got this one. Suddenly, starting yesterday, nuclear power seems to be much in the discussion. I did a radio interview yesterday, and to my surprise, nuclear power was back on even in Fresno. And I'm going, where do they expect to get the water to cool that plant? And then has anybody really looked at the life cycle cost of all of these systems? And I think before we move with nuclear power, there are several hurdles that need to be addressed. One is the life cycle cost of the. Of the plant, which, when we've looked at it in the past, goes, I don't think this is economically viable. The second is the waste issue. I guess it really depends where you are with the waste issue. That is how close it is to you. But that has not been answered. Some people talk about, well, we'll just recycle the waste and make a lot of plutonium. There's some downside to that. But in any case, these issues, if answered, put it on the table and answer all of the issues. And then if the answers come out, yeah, this is the way to go, then okay, we'll go that way. But until those issues are answered, life cycle cost, the issues of the waste stream and in California water, which we were talking, which you talked about earlier, those issues all have to be answered satisfactorily, as do the other issues that are also the other methodologies of dealing with this. All of those are going to be on the table and all of them have to be answered. We'll see.

If I could just add something. Amory Lovins gave a series of five lectures at Stanford recently on advanced energy efficiency, and on the rmi.org website is a great piece. And there's a whole book about soft energy path versus nuclear power. And he basically makes the case that it's not economic when all the costs are borne by the people investing in it without a lot of government subsidy. So the water and the waste issue aside, which obviously are important, it doesn't make sense on its own merit. So just. That's a good place to go if you want more detail on that. Yeah.

My name is Alvin Duskin and I'm the CEO of Direct Carbon Technologies. I just want to say first that my wife and I are very proud of being members of E. I just have to answer this thing on the nuclear issue. California law does not say you can't build a nuclear power plant. Back in 1974, I drafted the legislation that Charlie Warren and Al Falquist carried in the state legislature. And that legislation says that you can zone California land to build a nuclear power plant once the federal government states that they can solve the problem of waste disposal. That was 33 years ago that that law went into place. So nuclear power is not forbidden in California. We're just waiting for the federal government to say that they can solve the problem of waste disposal. I want to add just another point, if I may. There are three programs in Northern California to use fuel cells to convert coal directly into electricity with no emissions. One at Stanford, one right here at SRI in Menlo park, and one at Livermore Lab. All those do not burn coal, which I agree with, Lieutenant Governor, is a bad and stupid thing to do. But they convert coal directly into electricity with no emissions. So California, northern California anyway, is taking the lead on that. Two of three of those programs are venture funded at this point, and maybe the third one will be venture funded, too. But those plants will be online in three to five years.

While you're going back there, before your question, one of the most important things that we must do as a society is to invest in the research you mentioned. The fuel cells, coal. Fine. Research, whatever it is, whatever that research may lead us to. But we need to also recognize that today we're spending half as much on energy research as a nation as we did 25 years ago. This is really dumb, but that's what we're doing as a nation. So we really need to ramp up that energy research. Some of it clearly is going to be private, but let's face it, most of the research is going to be publicly funded in one way or another. That must be done. Another thing, the utility industry spends less than 1/10 of 1% of its revenues on energy research, which is about half of what the dog food industry spends before. Before the current dog food crisis. My name's Andrew dietz. I'm an E2 member. And tonight you talked a lot about energy policy and security policy. And I'm curious if there's any studies that talk about or trace where money goes when it goes to foreign oil, whose hands it ends up in, and what is the kind of cost for our military budget to support buying oil offshore? Is there anything out there that talks about that? Devri did. And that's the point. I went through all of this very, very quickly on that piece of it, and Devrey picked up another piece of it, is that we are shipping off our money and sending it to people who in some cases are clearly enemies. And other places where you can, maybe they're not as friendly as we'd like. The most dangerous and the most risky places in the world is where our money is going. And the point you're making is who gets that money and what are they then doing with it. Devreu has some numbers, and.

I don't know the numbers off the top of my head, but I can certainly, if you give me your card afterwards, put you in touch with the research that has looked at that. In general, it is a world oil market, so we do pump oil out of the ground in California and we use a little bit of that. But by and large we're all buying on the world market and that money is going to all of those countries that the lieutenant governor talked about. So it is. Yeah, I have seen studies. I don't know the numbers off the top of my head, but I could get that to you.

John, question comment for you. I'm Mark Bauhaus. I'm truly an environmental entrepreneur, small E. Small E having left software and retired and looking at starting a company in the space. And the comment is you talked about future generations and that being a motivation. I think one of the things that's changed in the whole discussion is, is it's not a future generation, it's our kids and their generation because we will actually see substantial effects over the next.

20, 30, 40 years.

And that's a big psychological shift. I think it's not so much abstract future, it's now. And I think that's part of what's changing the public debate. So just a comment. The question for you is really more about who's calling on you. From an opposition perspective, I would expect the coal industry and a few others that are kind of obvious. But who do you see politically who comes to you and says, Look, AB32, bad idea, you know, climate change, don't listen, what do you hear?

Diane really began to get into this and she was beginning to name names. So maybe the two of us can do a due vet and she can do it. Help me out here and add to it, interestingly, the agricultural industry, who has more to benefit as a result of this change than most others. But I'm in the agricultural industry. It tends to be a little conservative, as in what we did yesterday, we ought to do tomorrow. But there's another part of it that is very entrepreneurial and looking to the future, but nonetheless, the agricultural industry, clearly the, I think the utilities, the big utilities in California, three of them now very reluctant to change. They talk a line but then you look at what they're actually doing and in their power plant and this is, you mentioned this, Diane. You really had it right on the it's the subtle, it's the subtle work that is going to go on in the regulation writing such things as what year do we set as the the base. Big, big important issue. And then how do you account for the credits? Those kinds of things are extremely important, very subtle. So the utility industry, Well, the oil industry, absolutely there. Somebody mentioned earlier the cement industry. And I'm starting to go what's left in California. The cement industry, you know, clearly cements the. The single biggest source of greenhouse gases among all the industries. But there's almost nothing left in California anymore. Almost all of it's imported. But that's out there. At least it's being put out there. And I'm going, wait a minute, where are they? I think there's two plants, one of which I think is closed down. So you get that kind of thing. The Manufacturers Association, California Manufacturers Association. I recommend that. Are the manufacturers left in this valley? Yeah, there are. Join the association, take it over, things like that. Diane, you want to add.

I'd actually like to say one thing about PG&E because they were actually very helpful in AB32 and getting it passed. So I'm not sure if they've come to you with something else, but during the process we've had process we had with them, they were actually very helpful and they came on and supported AB32. And very, very close.

Challenge them to be more helpful.

Okay. It's the subtlety we'll see many of the companies have not adopted positions yet because everything is still up in the air. We're trying to figure out where everything's going to fall. And some of the. We know that we'll get the Wispa, the oil companies, the manufacturers opposing policies. They haven't come out publicly and said anything yet. They're all saying that they supposed to support AB32. They support economic growth, but they haven't actually honed in on an issue yet. So you may have different conversations with them.

The point that I'm making is that it's the next step. Everybody wants to be green now. How do we implement? And it's in that area that we're going to see either a strong, and both of you said this very clearly, a very strong policy put in place that will actually move us, or it will be just pablum time for one more. What about the cap and trade side? They talked about how you manage down caps. Is this one of the other issues that we might be lobbying for? Exactly right. The issue without the microphone. I'll repeat the question. It has to do with the carbon trading issues. Where are the caps? How are they put in place? Place. And there's a whole series of questions there. For example, are the credits free or are you paying for credits? When does the cap go into place? Does the cap vary depending upon industry and the time frame over which the cap is reduced? Put the cap in. Choose the number. 1998. Okay, that's the cap. Does it ratchet down quickly? Does it ratchet down over the next century? Somewhere in between? Those kind of things are extremely important. And that's where the industries will begin to I'll use that. Where the industries, whatever they may BE, agricultural, oil, PG&E, all the rest are going to try to protect themselves and position themselves so that it benefits them. Our concern as public policymakers or concerned about the current generations framing the issue. Thank you. We have to keep in mind the broad public interest here. Industries will look to their own specific interest and will try to move things in that direction, which may be beneficial to the broad public interest. But my guess is when taken in total will not. Your notes.

My notes are missing. So I want to make sure that we end on time. And I had a couple of concluding remarks to make and I also wanted to let you know Peach and E actually sent me a whole box full of these tips. There are a couple levels of ways to make a difference and one of us one thing I think everyone needs to do is go home and clean up our act personally at home, what we drive, the lights we use, the kind of houses we have, those kinds of energy decisions. So this booklet is free and there's some in the back has some some good tips. There's also in Palo Alto a Step it Up Silicon Valley event. There's all across the country, Bill McKibben has organized events for people to pressure our leaders to have an 80% reduction of greenhouse gas emissions by the year 2050. And the event in Palo Alto is going to be on this Saturday from 1 to 3 in Mitchell Park. So there are flyers about that. And then for people who are not yet certified as green businesses, many of us are business owners or employees of businesses or leaders of businesses. And Santa Clara county and all the other counties have a green business certification process which is also really helpful step by step process to understand your energy footprint, including also water and other resource use. And then it they have information and resources available to help people. In addition, Sustainable Silicon Valley is a network of governments and companies and nonprofit organizations that are committed to reducing greenhouse gas emissions in a substantial way. And they also have lots of events that provide information to their members. So those are specific things that you can do when you walk out the door looking at your own home and and your business car you drive and that kind of thing. Boy, I guess I should have memorized my little, my little pocket. It was so eloquent. What I wanted to say is that I wanted to thank you, Lieutenant Governor Garamendi for your words and some advice that you gave. A meeting before this where we talked about grant making. There's an affinity group for Silicon Valley, Social Venture Fund on environment, and we're working on a grant on helping reduce the friction and improve the implementation of AB32. So anybody who is already a member of SV2 can join that committee. If you're not yet a member of SV2, we have Nancy Cole here, who's the executive director of that program, Eleanor Clement Glass, who's an executive, please stand up in the Silicon Valley Community Foundation, Erica Wood, who's also there, and Peter Kim somewhere here. So any of them can talk to you about joining SV2, which is a really wonderful network of people, as I mentioned at the outset, and they are working on helping. I think one of the things that we were talking about earlier was this issue of how to help infiltrate the opposition and get them on the right side. For example, I'm a member of the Paloto Chamber of Commerce, and their goal is to have all the members of the Paloto Chamber of Commerce be green businesses. And they have people like Hewlett Packard and Roche who are well on their way toward being green, as well as small mom and pop outfits and everything in between. So I think that joining the Chamber of Commerce and then getting politically active in the Chamber of Commerce, we can help shift them from whatever color they are to. And also by the same token, I hope those of you in SV2 were very inspired to want to be able to support environmental entrepreneurs, which again, is a wonderful organization in terms of the action they're doing and the education that they do for business people and helping us understand the issues and then really helping us have our voice, have leverage. So both Devra and and Diane are here and also April Mo is there. So they will be eager to talk to you about joining Environmental Entrepreneurs. And as a member of both, I can say it's not a conflict to be a member of both, that they really support each other. The events are always worthwhile and fun and inspiring. And also you come out of there knowing how to make a difference. So I want to encourage people to do those things.

Things.

And if Nancy could help me, I have a couple of gifts. I really wanted to appreciate the people from Google and our speakers today. And I have a book. I actually agonized for that book.

She did.

I agonized about how to wrap them because normally people use all this wrapping paper. I thought, I can't have an event about saving the concept climate. And then use all this paper. So I have like this handmade little paper card and a little bow. I figured you could have a bow. And the book is a book by Alan Atkinson, and it's actually not a new book. It's a book called Believing Cassandra. And he was working with the late Dana Meadows, who wasn't late then when he wrote the book. And she. She was one of the authors of the Limits to Growth, which came out in 1972, who read the Limits to Growth. It was a study by the Club of Rome. And they said, guess what? If you live in a finite planet, you can't have exponential growth in pollution and resource use and population without having overshoot and collapse and really pretty bad outcomes. And we have a choice. And they had all this system modeling, and basically people said, oh, well, she's just, you know, the dilemma of Cassandra is that Cassandra wouldn't consort with Apollo. So we said, okay, I'm going to curse to you. You're going to tell the truth and no one's going to believe you. And that's the dilemma of Cassandra that you get out there. You're Al Gore, you're talking about the truth. And everybody says, oh, he's just, you know, sour grapes or whatever. They have to throw an attack. And the other thing that's in this book that I found really useful is that if you have feedback, then you can start making adjustments. So people who drive the Prius know you get feedback on how you're doing. And so you kind of have this game to make better fuel economy. So feedback. In AB32, you figure out your footprint, you say, okay, this is how much greenhouse gases I'm emitting. I'm going to set a target, I'm going to make changes, and I'm going to periodically measure to see how I'm doing. And that feedback is very motivating. And then when you get off track, you go, oh, okay, I'm off track. I need to get on track. Or let's have a breakthrough. And instead of doing this little incremental change, let's have monumental change, which is really what we need. We really need to completely transform our society so that we are not burning up the planet, but that we're living within the solar energy that's coming down already. And I think that in the event of doing that, we can also have a society where people take care of one another and where we have. We can restore our relationships to one another as we restore our relationship to the Earth. And I think it's really important for business people to be able to talk about that. And one of the things that Dana Meadows, who was my mentor, used to talk about was the power of love and the importance of meeting non material needs through non material means. Our capitalist system kind of wants you to buy stuff to get happy. And, in fact, that's an endless cycle where we end up throwing most of it away and not really feeling happy. So I think we have a chance on the social side to really have a more robust society, and on the economic side, to make a lot of money, and on the environmental side, to have a planet that has stable enough weather so we can have food and water for our children and their children, and not have as severe storms and that kind of thing that are threatening on our horizon. So I want to thank all of you for being here tonight, and thank you so much for your kind thoughts.