Advancing Energy Security at AJC

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Advancing Energy Security at AJC
Jonathan Axelrad AJC Northern California Energy
Task Force Co-Chair Energy Clean Technology
Group, Wilson Sonsini Goodrich Rosati Eli
LipmenAJC Los Angeles Assistant Director LA
Energy Security Task Force DirectorHaim
ZaltzmanAJC Northern California Energy Task
Force Co-Chair Project Finance Development,
Latham Watkins
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Be courteousto others.
Please rememberto silence yourcell phones.
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Road Map

• Section I
• AJC Energy Security Successes
• Section II
• The Energy Reality
• Section III
• - Action Plan for Advancing Energy Security

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Section I AJC Energy Security Success Stories
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National Successes

• - LEED Certification
• Renewable Energy Credits
• Project New Car
• Multimedia campaign
• Energy Pledge
• Employee Car Program
• Lobby/Support for CAFE Standards,
• Open Fuel Standard other green energy
  legislation

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• Nationally Funded Lobbying Trips
• Office Practices Employee Incentives
• Los Angeles
• Colorado
• New York
• Chicago
• Washington DC
• Westchester
• Atlanta
• Miami/Broward
• San Francisco

AJC Regional Office Successes
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AJC ACCESS Successes

• J-REC Jewish Response to the Energy Challenge
• Clean Energy Mission to Germany
• - ACCESS New York

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Section IIThe Energy Reality
Where are we?  What's the cost? Whats the
opportunity?
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Really How much are we talking?

• How much did the US spend on imported oil in
  1972?
• 4 billion 1.2 of US defense budget
• How much did the US spend on imported oil in
  2006?
• 260 billion Half US defense budget
• 65.5 of all oil used in US
• How much is that per day? Per hour?
• 700 million/day 30 million/hour

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Where does the oil come from?
Much of the worlds largest proven oil reserves
are found in unstable areas and within countries
hostile to our nations values.
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Where does the oil go?
How much of U.S. oil demand is driven by the
transportation sector?
More than 2/3rds all oil consumed in the United
States goes toward transportation.
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Transportation
Where are we going? How many trips?
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Transportation
How are people traveling to work? Alone? Carpool?
Public Transit?
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Who is getting the windfall? How are they
spending it?
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We are funding both sides of the war on
terrorism - New York Times Columnist Thomas
Friedman

• Guess how much a sustained 5 increase in the
  price of a barrel of oil correspondingly
  increases Iran's revenues from oil?
• 500 million

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National Security Iran
4 Oil Exporter 9 of World Oil Reserves
In its showdown with the West, Iran has pledged
to use all means, including oil, to secure
nuclear weapons.
If the U.S. makes a wrong move regarding Iran,
definitely the energy flow in this region will be
seriously endangered. - Ayatollah Ali Khamenei,
Iranian supreme leader If the U.S.
politicizes our nuclear case, we will use any
means. We are rich in energy resources. We have
control over the biggest and the most sensitive
energy route of the world. - Mostafa
Pour-Mohammadi, Iranian minister of interior
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• How do these petro-dollars correlate to terrorist
  funding? 
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• How much does Iran give to Hezbollah directly
  every year?

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• Iran funds Hezbollah directly with 30 - 45
  million every year. 

• Iranian ships were confiscated by the Israeli
  Navy attempting to drop off weapons to Hamas in
  the Gaza Strip

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Saudi Arabia Oil Wealth

• What is the net worth of Saudi Arabia and other
  OPEC oil producers at 100 per barrel?

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On what are some Saudis spending our money?
While our petrodollars flow to Saudi Arabia, home
to the worlds largest oil reserves, Saudi
children are taught contempt for Christians,
Jews, and the West.
1 Oil Exporter 3 US Supplier 25 of World Oil
Reserves
Excerpts from Saudi Textbooks There is no
doubt that the Muslims power irritates the
infidels and spreads envy in the hearts of the
enemies of Islam Christians, Jews, and others
so they plot against them, harass them, and seize
every opportunity in order to eliminate the
Muslims.
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National Security Venezuela
5 oil exporter 4 supplier to U.S. 7 of world
reserves CITGO Venezuelas state-owned oil
company has 14,000 gas stations in U.S.
Petrodollars fuel Hugo Chavezs populist
revolution at home and in neighboring countries,
helping him achieve his goal of gaining influence
in this Hemisphere.
The English middle classes would have to stop
using their cars, if the U.S. attacked Iran, as
oil would go to 100 a barrel or more. We would
do the same if we were attacked. We would cut off
our oil.
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And of course - Economic Security  Who's the
most vulnerable to price fluctuations?
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United States Vulnerability
Americans use more oil per person than any other
country in the world. This oil dependence is
estimated to create a loss of jobs, output, and
tax revenues totaling between 297 - 305 billion
annually.
Annual Per Capita Barrel Oil Consumption 2006
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So where can we get some comfort?  ELECTRIFICATIO
N OF TRANSPORT
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Plug-In Electric Vehicles (PHEVs)

• How much gasoline could we display if we
  converted all US Cars to PHEVs?
• 6.5 million barrels per day or 52 of the
  nation's oil imports
• Electricity is domestically produced
  jobs/money stays in US

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The Future is HereFaster, Longer, Cooler
Cheaper than you think!

• Fast Acceleration, Speed
• Longer Range
• Cooler, Sexier Cars!

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•  
• Domestically Produced Power
• Makeup of U.S. Power Generation - (2008
  approximations) 
• COMPARISON France 79 nuclear Germany 42
  coal
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• OUR COAL DEPENDENCY 
• 50 of U.S. states receive more than half of
  their electricity from coal
• U.S. has worlds largest coal reserves
• COMPARISON  China is building a coal-fired power
  plant every 1 - 2 weeks
• WIND
• U.S. surpassed Europe as worlds largest wind
  power producer in 2008. 
• COMPARISON China is third but moving quickly up. 

Hydro, Oil Renewable 2
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What about the cost of electricity compared to
gasoline? 
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• Electricity Options versus Gasoline per Gallon
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• Typical power source in expensive state (NE)
• 2006 Electricity price
• ? 1.47 per gallon
• Saving in other states/regions more significant
• Peak time versus Non-peak

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Are we making the right investments in
Electrification? Compared to China?
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• Stimulus Spending
• United States
• About 11 billion (out of 800 billion) 
• China
• Estimated at 220 billion (out of 580 billion
• Smart Grid Investment 
• U.S. 2010 expected 7.1 billion
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• China 2010 expected 7.3 billion

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Big Money in Clean Tech Sector

• 5.6 Billion in deals in 2009 worldwide (567
  companies)
• Top investment areas were
• Solar (21)
• Transportation (20)
• Energy Efficiency (18)
• Biofuels (10)
• Smart Grid (7)
• By region, North America represented 72 of all
  deals with Europe (mainly Germany, Norway,
  Switzerland, Netherlands, Belgium, Denmark, UK)
  and Israel representing 22, China 6 and India
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• In North America, California had 60 of the
  deals (2.1 Billion) followed in a distant second
  by Massachusetts with 10 (356 million)

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How can AJC continue to play a role in advancing
energy security?
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• Build on Current Programs
• Awards
• Advocacy
• Global
• Domestic
• Project New Car
• Employee Vehicle Program
• LEED

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Energy Security Innovator Awards

• Bring attention in the Jewish community to the
  importance of this issue
• Recognize leaders that are making an energy
  secure future a possibility

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Global Advocacy

• Broader global message on energy security
• Importance of fiscal, tax, or trade policy to
  promote clean technology
• Connecting Israeli and American Cleantech
  companies and financiers
• Incorporate green tech opportunities and
  alliances into AJCs diplomatic messaging

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Domestic Advocacy

• Short Term
• Open Fuel Standard
• Ensure implementation of CAFE Standards
• Medium Term
• Plug-In Hybrid Vehicles (PHEVs)
• Project New Car/Employee Incentive Program
• Long-term
• Electrification of grid

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• Take Aways/Next Steps
• Group by Region (Northeast, Southeast, Central,
  West)
• Limited Time to prepare
• Appoint 1 Person to Present

What can you do personally?
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Conclusion New AJC Energy Security Platform
What can you do personally?