By a significant margin of 49 to 27, the California Assembly passed the Alternative Fuels Bill (AB 1007 Pavley). NRDC and E2 sponsored the bill, which would start the process of diversifying California's transportation fuels away from petroleum. The California Senate will consider the legislation in the next few weeks and, if approved, it will go to the Governor's desk for signature at the end of the summer. (The bill could return to the Assembly if amendments are made in the Senate.)

AB 1007 represents more than nine months' work by a dedicated group of E2 volunteers who met with almost half of the Assembly over a period of three months. The final push occurred when the bill had only 35 votes on the first floor vote. E2 members were in Sacramento the next morning to meet with 12 assembly members to determine what amendments could secure the missing votes. This information was given back to the author, Assembly Member Fran Pavley (D-Agoura Hills), for her consideration. The final vote was overwhelmingly positive.

E2 is especially pleased with the significant bipartisan support for the bill as Assembly Members Shirley Horton (R-Chula Vista) and Keith Richman (R-Los Angeles) both provided strong backing for the legislation.

With consistently high fuel prices and a growing need to address the problem of greenhouse gas pollution from vehicles, AB 1007 is a bill whose time has come. By encouraging the development and distribution of fuels that are not based on petroleum, we expect to see a variety of fuel alternatives, from biofuels (made from agricultural products) to electricity (plug-in hybrids and electric vehicles) to natural gas. We expect these fuels to compete both on price and on superior environmental performance.

Our work was made possible by the volunteer E2 members who did research and attended nearly 100 meetings. Our thanks go to Eric Bowen, Anna Halpern-Lande, Steve MacKay and Marc Stolman. We also thank NRDC's staff who worked hard to advocate for this bill, Ann Notthoff, Roland Hwang, Luke Tonachel, Diane Bailey and Victoria Rome.

Our able E2 manager, Christine Koronides, will be leaving us in August to pursue a graduate degree at the Goldman School of Public Policy at the University of California, Berkeley. We want to take this opportunity to thank Christine for her valuable contributions. A posting of the job opening can be found at E2 manager position. If E2 members know of someone who is qualified for the position, please refer them to this posting.

Environmental Entrepreneurs turns five in July. The first organizing meeting of E2 was in June 2000 and our first members joined shortly thereafter. We have posted a complete list of E2 members' individual contributions and activities at www.e2.org. E2 members can visit their own personal page and see their own . While you are there, we invite you to complete your personal profile.

E2 members have much to be proud of (see an article in our October 2004 newsletter for a summary of our progress over the last five years). During the summer, we will be focusing on how to increase the scope and effectiveness of E2. We will be publishing our future plans in August. We are also planning an official set of fifth anniversary parties this fall.

From June 1 through June 5, San Francisco was host to the United Nations' World Environment Day Conference. E2 worked with the city of San Francisco and a number of other sponsors to organize a luncheon for mayors and leaders in the field of renewable energy on June 4.

Nicole Lederer introduced E2 and our model of business activists on behalf of economic and environmental progress to the international audience and introduced our invited speaker, California State Treasurer Phil Angelides. Treasurer Angelides spoke about "how we can put California in the front ranks of the fight against global warming and make our state the center for the globe's renewable energy future." He outlined his vision for the "high road" for economic and environmental progress, and actions we can take in California to curb global warming, including reducing our dependence on petroleum-burning vehicles, implementing smart growth practices and choosing to be the world center for developing and using clean fuels and renewable energy.

The Treasurer thanked E2 for our help in launching his Green Wave Investment initiative, which will invest $1.5 billion from California's two largest pension funds in cutting-edge technologies and environmentally responsible companies, as well as encourage companies to address the financial risks posed by environmental liabilities and global warming, and reduce energy consumption by their massive real estate holdings. This multi-pronged investment strategy will bolster financial returns, create jobs, clean up the environment and combat global warming. For the latest update on the Green Wave initiative, please see Green Wave Update.

Other speakers at the lunch included the Mayor of San Francisco, Gavin Newsom; Dennis Hayes, President and CEO of the Bullitt Foundation and founder of Earth Day; and Jill Sideman of CH2M Hill, who spoke about the need to create a renewable energy future. James P. Clark, founder of the World Technology Network, announced that its competition this year, offering a prize of at least $10 million dollars, will reward innovations in energy, environment and transportation.

"I say the debate is over. We know the science, we see the threat and we know the time for action is now."

With those words, California Governor Arnold Schwarzenegger announced executive order S-3 which defines target reductions of greenhouse gas emissions for California. The order calls for decreases of emissions in the following manner:

• By 2010, reduction to 2000 levels (11% reduction over business as usual)
• By 2020, reduction to 1990 levels (25% reduction)
• By 2050, reduction to 80% below 1990 levels

According to the governor, proposals already in statute or being considered can account for about half of the 2010 target. E2 believes that to achieve the 2050 levels, the state would have to switch to virtually zero-carbon fuels in the transportation and electricity generation sectors (such as biofuels, renewable electricity, etc) or use fossil fuels in a manner that allows the carbon to be captured before reaching the atmosphere.

The state's growing population makes reaching the targets extremely challenging. California's population of 36 million people is growing by about half a million each year.

The solutions for transportation, which accounts for half of California's emissions, will require:

• Reducing the number of miles Californians drive by providing more public transit and implementing smart growth.
• Improving the fuel efficiency of vehicles and reduce the emissions per mile driven.
• Using low-carbon alternative fuels.

The solutions for electricity will require:

• Practicing energy efficiency.
• Generating more of our energy from renewable sources.
• Capturing and sequestering carbon from coal-based generation.

E2 applauds the executive order and believes that addressing climate change will not only stabilize the climate, but will also bring about new technologies and new jobs in the effort to clean our air and water.

During each of our annual trips to Washington, DC, over the last three years, E2 has focused on the economic benefits of rebuilding our ocean resources. Thus we were very pleased to see S. 1224, the "National Oceans Preservation Act of 2005," introduced on June 8 (see E2 letter of support URL). Senator Barbara Boxer (D-CA) authored the bill, which is co-sponsored by Senator Frank Lautenberg (D-NJ). This bill provides the comprehensive reform needed to improve the management of our oceans. (See S.1224 announcement for a description of legislation.)

In the House of Representatives, on June 16, the four co-chairs of the house Oceans Caucus, Representatives Curt Weldon (R-PA), Jim Saxton (R-NJ), Sam Farr (D-CA) and Tom Allen (D-ME), introduced the Oceans Conservation, Education, and National Strategy for the 21st Century Act - OCEANS-21 (H.R. 2939). This bill will establish a comprehensive national policy to protect, maintain and restore marine resources and a coordinated, accountable system for implementing that policy. (See H.R. 2939 announcement for a description of the bill.)

Both bills respond directly to the recommendations of the independent Pew Oceans Commission and the congressionally established U.S. Commission on Ocean Policy, which found that a significant cause of ocean decline can be traced to the government's fractured management approach to this resource. The basic problem is obvious: more than 20 federal agencies and permanent commissions are responsible for over 140 federal ocean-related laws. So while the government engages in oceans-related activities, implements laws, and spends appropriated dollars, there isn't any single agency watching out for the oceans as a whole and the value they provide to the nation's economy - cited by the U.S. Commission as $117 billion per year.

During the summer, E2 volunteers will be contacting members of Congress with whom we have previously met to ask them to co-sponsor these polices. We will also be completing our economic study of fisheries, which demonstrates the increased economic benefit of restoring the oceans.

The California "Clean Cars" Bill (AB 1493 Pavley) is the key component of efforts by the states to reduce global warming pollution from vehicles. Individual states have the choice, under the federal Clean Air Act, of either following federal standards (which don't exist) or California standards. Many states are active in developing regulations that adopt California's standards and E2 members are also active in several of those states.

New York

In May, the New York Department of Environmental Conservation announced draft regulations, which follow AB 1493. The department will hold four public hearings on this issue in July. E2 New York chapter co-founder, Ethan Podell, will testify at the Long Island City hearing on July 7. The regulations are expected to be adopted by the end of this year.

Oregon

Oregon Governor Ted Kulongoski is also pursuing AB 1493 standards, but budget maneuvers are underway in the Oregon legislature to prevent the Oregon Department of Environmental Quality from doing the necessary analysis. (See Emissions Plan Hits Roadblock for details). E2's Oregon members, Sally Desipio and Nancy Floyd, are working with a coalition of groups in Oregon to help build business support for the regulations. In April, the state of Washington adopted AB 1493 regulations, but made ratification dependent on Oregon also adopting the same regulations.

and in court...

Meanwhile, the auto companies are suing California over AB 1493, claiming primarily that (1) the regulations are really a fuel economy standard which California is pre-empted by the federal government from setting, and (2) the regulations are not cost-effective as required by AB 1493.

The state of California has filed a motion to dismiss, or to stay (delay), on the basis that this case really turns on what the Court of Appeals in Washington, DC, decides regarding whether the Clean Air Act covers global warming pollution. We believe that case will be decided before the end of August. The state has also moved to transfer the case from the U.S. District Court in Fresno to the U.S. District Court in Sacramento.

NRDC, Sierra Club, and Environmental Defense have moved to intervene in the case. They have arranged for pro bono representation by a major law firm in Los Angeles (headquartered in Minneapolis) named Robbins, Kaplan, Miller & Ciresi, which has a history of tobacco litigation experience.

The judge was scheduled to hear all these motions on June 14, but has postponed the hearing until July 25.

and in Canada...

Canada and several major car manufacturers have reached a voluntary agreement that is very similar to the regulations defined in AB 1493. Yes, this was reached with the same car companies that are suing California over AB 1493. Clearly, the auto manufactures would not have entered into this agreement if there were any technical issues preventing low-emission vehicles from being developed!

E2 member Wendy Neu testified before the New York City Council on Thursday, June 16, in support of a path breaking bill that would permit clean and efficient hybrid electric vehicles to be added to the city's yellow taxi fleet. The two hybrid vehicles that would most likely be permitted to run as taxis under the bill are the Ford Escape and the Toyota Highlander. The Ford Escape currently has a federal in-city fuel efficiency rating of 36 mpg - double the mileage of the Ford Crown Victoria, which makes up 94% of the city's fleet. Thus, in addition to the significant public health and global warming benefits of using these vehicles in New York City, hybrids taxi drivers could also use half as much gas per mile and spend half as much time at the pump. E2 has sent a letter of support with more than 50 signatures to the Council and we are cautiously optimistic that this bill could be enacted in the near future. Because the NYC yellow taxi is such an American icon, the passage of this law can help raise public awareness around the country on the benefits of hybrid technology, and serve as a model for other cities to follow. Click here to read a New York Times report on Thursday's hearing.

As a recent editorial in the Boston Globe noted, higher efficiency standards will always be the least polluting and often the least costly way to meet the nation's power needs. On Tuesday, June 7th, in a crowded hearing room at the Massachusetts State House, Berl Hartman of E2's New England Chapter presented a letter signed by 39 Massachusetts E2 members in support of energy efficiency legislation. The bill would set minimum energy efficiency standards for 19 categories of new products, including both residential and commercial equipment. The Northeast Energy Efficiency Partnership (NEEP) estimates the bill will reduce electricity demand by 215 megawatts by 2020, which is equivalent to the energy use of about 200,000 households, while the effect on carbon emissions will be equal to removing 215,000 cars from the road.

Appliances included in the legislation - such as Torchiere light fixtures, ceiling fan light kits, traffic signals, commercial refrigerators and freezers, large packaged air conditioners, and residential furnaces - were selected for their large cost-effective energy savings and because products that meet the standards are already commercially available. The bill deals only with new appliances and does not require replacement of any products already in use.

E2's support for the bill was based on its positive potential impact on business and consumers. Efficiency standards have been shown repeatedly to reduce energy costs and improve electricity transmission reliability. In addition, standards send a market signal that encourages innovation, which in turn opens the door for new ventures and assures that a market will exist for new technologies. We've seen entrepreneurs rise to the challenge repeatedly. An example is California - which led the nation in adopting energy efficiency standards - where per capita energy usage has remained virtually flat since 1976 when the first energy efficiency standards were introduced. During this same period, the rest of the U.S. experienced a dramatic increase in per person energy use.

Gary Hirschberg, founder of Stonyfield Yogurt, shared the remarkable story of his company's rise from a small start up with seven dairy cows to the fastest growing yogurt company in the country at an E2 Boston lunch hosted by Rackemann, Sawyer & Brewster. Gary's contention is that Stonyfield is successful because of its green ethic, not in spite of it. His model is so successful that the CEO of Danone, his corporate partner, says "Stonyfield represents the future of Danone." NRDC Senior Attorney and Urban Director Eric Goldstein echoed Gary's theme, saying that the time is right for the environmental community to partner with a new and growing generation of corporate CEOs who embrace environmental principles and recognize that sustainability and profit go hand in hand.

On June 9, about 60 E2 members met and heard from California Assembly Member Fran Pavley (D-Agoura Hills) and NRDC Executive Director Frances Beinecke at an EcoSalon in NRDC's San Francisco office focusing on alternative transportation fuels and NRDC's campaign to "Re-energize America." Frances briefed attendees on NRDC's efforts to improve the federal energy bill and expressed optimism about future Congressional action on the issue of oil security. She acknowledged and applauded the leadership role California has taken in global warming emissions targets and renewable energy programs. Assembly Member Pavley spoke about her bill, AB 1007, which recently passed in the California Assembly and will require the state to develop a strategy for diversifying its transportation fuel supply through increased use of alternative fuels in order to reduce oil dependency and air pollution. She thanked E2 members and NRDC staff for helping to broaden the base of support for the bill, and said continued advocacy would be needed to get the bill through the state's senate.

E2 is joining the Virtual March on Washington, to send the message that individuals, businesses and groups around the country want immediate action on global warming. The campaign's 365-day, non-political Internet march on Washington focuses on the impacts of global warming and potential solutions, rather than pointing fingers at individuals or corporations. Senator John McCain (R-AZ), Governor Arnold Schwarzenegger, General Wesley Clark, Dr. Michael Oppenheimer and Leonardo DiCaprio are among the individuals who have already signed on to the Virtual March. We strongly urge E2 members to continue to support federal and corporate action on global warming by signing on to the Virtual March today. To join E2 in the virtual march, please sign up through E2's virtual march partner page.

NRDC's Advocacy Center publishes a monthly newsletter, Capitol Insights. This month's issue examines two big wins for the environment: one preserving funding for clean transit projects in transportation legislation in the Senate and another in a key House vote rejecting the EPA's sewage "blending" proposal. It also discusses the Bush administration's repeal of the landmark Clinton forest policy known as the "roadless rule," changes to the Climate Stewardship Act, and the latest developments in the battle over judicial nominees. E2 Members can view this newsletter at: .

On March 4-6, the Progressive Economics for Environmental Protection Project (PEEPP) held a weekend workshop in Santa Monica to discuss the potential links between economics and environmentalism. Made possible by a grant from The Lawrence Foundation, the event was co-chaired by Frank Ackerman, Research Director for the Global Development and Environmental Institute (GDAE) at Tuft's University, and Wesley Warren, Deputy Director of NRDC's Advocacy Center. The group of 20 economists and environmental advocates met with the goal to identify, develop, and engage a network of economists and others that support a common vision of establishing cohesive and efficient economic theories for environmental protection. As a result of the workshop, the group concluded that there is a dire need for a new environmental economics, one that emphasizes environmental justice, public health, and investment in natural and human assets. In order to address this need, PEEPP intends to develop and publicize new policies as well as encourage broader cooperation between economists and environmental advocates. To begin the process of establishing this new approach to environmental economics, the group has committed to organizing a network of economists and plans to meet in late 2005 to launch this network. Please click here to read Dr. Ackerman's report on the initial workshop.

NRDC and a coalition of farm workers and environmental and public health groups filed a suit June 7 against the U.S. Environmental Protection Agency (EPA), charging it has been ignoring the special risk more than 1,300,000 children face of exposure to chemical poisons. According to a growing body of scientific evidence, farm children (those who live on or near a farm and/or whose parents are farm workers) are particularly vulnerable to hazardous pesticides from their food, the air, soil and water, and even from the clothes of their parents. The toxic effects of pesticides, especially damaging to children because of their still-developing brains and bodies, include neurological disorders, reduced cognitive functioning and coordination, developmental delays, neonatal problems, and cancer. Under the 1996 Food Quality Protection Act, the EPA is required to account for specific factors when setting tolerance levels for chemical pesticide residues that consumers and "major identifiable subgroups" of consumers may be exposed to. The groups are suing the EPA in the U.S. District Court for Northern California for failing to respond to their October 1998 petition to identify farm children as meriting special consideration and are asking the court to compel the agency to respond within 90 days.

We hope you'll tell your friends about E2 and NRDC. To learn about E2 and our programs please go to www.e2.org. Information about NRDC can be found at www.nrdc.org.

Thanks for your support. Comments, questions and introductions to possible new members are always welcome! Learn how to join E2 at how to join. To learn more about the leaders of E2 please read about the E2 co-founders.

Bob Epstein and Nicole Lederer, Editors
bob@bobepstein.to nicole@nicolelederer.com