2007 Silicon Valley Projections - Silicon Valley Leadership Group

More documents

Recommendations

Info

Transportation In 2005, Californians purchased one-quarter of the hybrids on the market. Currently 1.2% of total vehicle sales in the nation are hybrids. National sales of hybrids have generally doubled every year since 2000. Other alternatives, such as biodiesel, ethanol and hydrogen are gaining ground, but still represent only a tiny fraction of our fuel portfolio. Hydrogen fuel cells are still prohibitively expensive and we don’t yet have the ability to produce and distribute large quantities of ethanol and biodiesel. Improved battery performances are giving a boost to plug-in hybrids, which can operate for 20 miles solely on electricity. The technology relies on an existing distribution system-the electrical grid-but must overcome concerns about power plant emissions. At least two auto manufacturers, Toyota and Honda, have said they plan to offer flexible-fuel plug-in hybrids soon Two-Pronged Approach: Reduce Emissions and Increase Commute Alternatives If CARB’s greenhouse gas reduction rule is upheld, the state would be able to stabilize its greenhouse gas emissions by 2010. That would be a significant achievement. But if California is to avoid the devastating impacts of global warming, we will need to reduce our emissions even further. Plus, swapping petroleum-guzzling cars to alternative fuel vehicles will do nothing to address our very real congestion problems, particularly in job centers such as Silicon Valley. We need a two-pronged approach: we need to reduce our tailpipe emissions and decrease the number of miles we drive, particularly solo. We need to increase our use of transit, carpooling, telecommuting, walking and biking. California Global Warming Emissions by Sector Transportation Sector Greenhouse Gas Emissions Region/ Metro-Area Commute by Auto Carpool Commute by Mass Transit 1.7% 2.6% 4.7% Work at Home Walk Bicycle Raleigh-Durham, NC Austin, TX Silicon Valley (Santa Clara and San Mateo counties) San Diego, CA Fairfax County, VA Portland, OR/Vancouver, WA Seattle, WA Boston, MA 78.5% 76.5% 75.8% 12.9% 13.7% 12.4% 3.5% 3.6% 3.3% 2.3% 2.1% 1.9% 0.4% 0.6% 1.1% 73.9% 73.4% 73.1% 70.4% 68.2% 13.0% 13.1% 11.5% 12.6% 8.2% 3.4% 7.3% 6.3% 80% 13.9% 4.4% 4.2% 4.6% 4.4% 3.4% 3.4% 1.3% 3.0% 3.2% 5.3% 0.6% 0.1% 0.8% 0.7% 0.5% Source: US Census Bureau 15
Transportation Reducing the number of cars on our roads by 1 percent would decrease traffic congestion by 5 percent. But making that shift would be a major cultural change. Silicon Valley has one of the highest rates of solo commute driving compared to the nation’s other high tech centers, according to the 2000 US Census. Only Raleigh-Durham, NC and Austin, Texas exceed the Valley’s 76% solo driving record. Nevertheless, high fuel prices are providing a real incentive for many to use commute alternatives. In 2006, ridership on VTA’s light rail line, Caltrain and on BART, met or exceeded 2000 levels. Caltrain’s decision to increase its baby bullet (express) service and VTA’s light rail extension to Milpitas and Campbell made those systems more convenient to commuters. And transit agencies are using technology to try to make transit more attractive: providing real-time transit information; offering wi-fi connections, and enabling transit users to find, reserve and pay for limited parking via cell phone, the internet and on board navigation systems. We also need to build more homes and jobs in walking distance to transit, and make our neighborhoods more pedestrian and bicycle-friendly. But all of this takes money which, despite an upturn in the state’s economy, is still in short supply. Best Practices - Lessons Learned The City of Portland was the first local government in the nation to adopt a greenhouse gas reduction plan. Since 1990, the city has reduced its emissions by 12.5% while national emissions increased by about 13%. The reason is due in part to Portland's 75% boost in transit usage and nearly 10% increase in bicycling and walking since 1990. The city accomplished this by expanding transit service (adding two major light rail lines, a streetcar line and increasing service frequency on major arterials), building more than 100 miles of bicycle infrastructure and constructing numerous high-density, pedestrian-friendly developments near its transit stations. The city also uses incentives, mass marketing, and grassroots outreach to promote commute alternatives. Building a Sustainable Transportation System Ironically, the extent to which we succeed in reducing our fuel consumption, we diminish California’s primary sources of transportation funding: the gas tax and the sales tax on gasoline. Yet, the need to maintain, improve and operate our roads, highways, and transit systems continues to grow. The state is still digging its way out of a decade-long, multi-billion transportation infrastructure shortfall that will only be partly assuaged by the passage of a $20 billion transportation bond on the November 2006 ballot. To reduce greenhouse gas emissions and address California’s sizeable infrastructure needs, California will need to restructure the way it finances transportation. For instance, California could: • Substantially Increase the Gas Tax, which was last raised in 1990 and has lost 1/3 of its value to inflation since then. This would also discourage solo driving. But it would not resolve the conflict between greater fuel efficiency and shrinking revenues. • Adopt Distance-Based Fees based on vehicle fuel efficiency and distance traveled. Europe has applied such fees to freight trucks with enormous success, significantly reducing emissions and miles driven without reducing the volume of goods transported. • Institute Congestion Pricing on User Fees, varying the fee in relation to demand. For example, tolls priced higher during peak commute hours can encourage those who can to shift their time of travel to non-peak hours. This distributes demand across other time periods when there is more roadway capacity. The rate can be set so that it is revenue neutral or generates excess funds. • Adopt Feebates—a combination of fees and rebates—to encourage the manufacture and purchase of cleaner, more fuel efficient vehicles. Consumers purchase the vehicle of their choice, but receive a rebate or pay a surcharge if their selection is above or below a certain standard of performance. The program can be designed so that it is revenue neutral or generates a positive cash flow. “Lifeline” rates could be established for low-income motorists for all of these policies to ensure equity. Magnifying the Impact California’s emissions policies alone cannot curb global warming. Its real power is that other states are following California’s lead, magnifying its impact. Yet as bold as it is, California’s vehicle emissions policy is only a first step. We will need to pursue a variety of policies—better integrate transportation and land use, provide more and better transportation alternative for commuters, and transition our entire economy off of carbon-based fuels-to avoid the more severe consequences of global warming. Our task now is to adopt the right combination of economic incentives, fiscal policies and regulatory standards that will spur the type of technological innovation and institutional change necessary to more radically reduce our emissions. If it does, Silicon Valley is well positioned to serve as the locus of that innovation. 16
Page 1 and 2: 2007 Silicon Valley Projections Tou
Page 4 and 5: Tough Challenges - Hopeful Signs. L
Page 6 and 7: Silicon Valley Industry Overview
Page 8 and 9: Silicon Valley Industry Overview
Page 10 and 11: Silicon Valley Industry Overview Co
Page 12 and 13: Silicon Valley Industry Overview Si
Page 14 and 15: Silicon Valley Industry Overview Ma
Page 16 and 17: Transportation
Page 20 and 21: Education
Page 22 and 23: Education Bay Area, 2005). However,
Page 24 and 25: Education These changes in student
Page 26 and 27: Environment
Page 28 and 29: Environment California Venture Capi
Page 30 and 31: Environment The Delta The Sacrament
Page 32 and 33: Environment Proposal to dismantle t
Page 34 and 35: Health Care
Page 36 and 37: Health Care By the Numbers-Consumer
Page 38 and 39: Health Care Jurisdiction San Franci
Page 40 and 41: Energy
Page 42 and 43: Energy Price Volatility Comparing G
Page 44 and 45: Energy Tough Decisions in the Next
Page 46 and 47: Housing
Page 48 and 49: Housing The Biggest Barriers to Suc
Page 50 and 51: Tax Policy
Page 52 and 53: Tax Policy Compare this with San Di
Page 54 and 55: Tax Policy Location Business Tax Po
Page 56: 224 Airport Parkway, Suite 620 San

2007 Silicon Valley Projections - Silicon Valley Leadership Group

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?