May 1, 2006

RE: Venture Capitalists and Investors Support Federal Oil Savings Policy

As leaders in the venture capital and investment community we urge the federal government to take immediate steps to encourage innovation and development of the clean technology industry sector in order to reduce U.S. consumption of oil products, improve national security, secure the country's competitiveness in the 21st century global economy, and put us on a path to mitigating substantial risks associated with global warming. We strongly encourage you to co-sponsor and support the bipartisan "Vehicle and Fuel Choices for American Security Act" (S.2025 and H.R. 4409).

The venture capital and investment community has created thousands of new companies in the United States. We thrive by supplying capital to the most promising entrepreneurs in the country, who shape the future through technology and business innovations. These entrepreneurs keep the United States competitive in the world market by challenging established players and business-as-usual practices -- and by seeking innovation opportunities in a changing world marketplace.

We believe that to encourage and stimulate the entrepreneurial spirit that makes the U.S. a world economic leader, the United States must pass meaningful policy aimed at displacing national consumption of fossil fuels with more sustainable options, such as biofuels for transportation, and encouraging technologies that reduce consumption while also reducing our global warming pollution. The United States should be in the vanguard of the new global market for alternative fuels and fuel efficiency technologies. Our businesses are second to none in developing advanced products when the market conditions reward these investments. A federal oil savings policy would enhance economic certainty in a rapidly evolving, carbon-conscious global marketplace by creating a market for renewable homegrown fuels and advanced technologies and promoting innovation, competitiveness, and growth in the clean technology, manufacturing, and energy sectors.

The United States' lack of oil savings policy is compromising the nation's competitiveness, and harming our economy. Without federal leadership to reduce oil consumption, American businesses continue to make long-term capital investments that commit the U.S. to petroleum- based goods and services and foreign energy dependence. This leads to increased economic vulnerability to oil shocks, drains on our economy, and increases global warming pollution - while discouraging the development and deployment of competitive new technologies. Meanwhile other nations are ahead of the U.S. in developing products and services that position them for leadership in solving the global oil supply challenge.

The Vehicle and Fuel Choices for American Security Act offers the means to reduce our oil dependence through concrete national oil savings commitments and incentives to spur innovation and create new markets, companies, and jobs. The legislation would establish a firm national commitment to oil savings, starting with a 2.5 million barrels of oil per day reduction within a decade. It would provide incentives for American farmers to grow a new generation of biofuels and for auto manufactures and parts suppliers to invest in producing more efficient vehicles. The bill would help make sure we accelerate oil savings in heavy duty transportation through measures such as idling reduction, put flexible fuel vehicles and alternative fuel pumps on the ground, and boost development around mass transit to reduce inefficient oil use and vehicle miles traveled.

Every year that passes without a national policy puts us further behind the global competition in alternative fuel and fuel efficiency technologies. The United States has a history of regarding challenge as opportunity, analyzing the facts, encouraging decisive action and deploying our best minds to the task at hand. We have led the world in innovation and are poised to do it again. Our commitment to long term economic growth and national security demand it.

We urge Congress to take swift and strategic action to reduce oil consumption in America, encourage innovation in American business, and promote U.S. leadership.

Sincerely,

SAN FRANCISCO
111 Sutter Street, 20th fl.
San Francisco, CA 94104
TEL 415 875-6100
FAX 415 875-6161