This article was originally published at Forbes.com in March 2008

by John Boesel

 
Since 1973, when President Nixon announced ”Project Independence” in response to the Arab Oil Embargo, the nation’s dependence on imported oil has steadily increased.  Why has that happened?  How can a call to action by arguably the world’s most important person, and one effectively repeated by everyone one of his successors, be ignored and completely ineffective?  Is it a technical or policy problem that we have?

As CEO of CALSTART, an organization that works with a wide array of companies developing and selling clean and energy efficient transportation technologies, I have an abundance of optimism about what can be done, cost-effectively, from a technical perspective to not only significantly cut our dependence on oil but also reduce transportation related greenhouse gas emissions.

What has been lacking in the past is a true national will to direct engineering talent toward fuel efficiency and substitution.  With the absence of political leadership on this topic, the nation’s best automotive engineers have often focused on how to deliver more creature comforts or improve acceleration.  A study by Professor John Heywood at MIT has developed a mathematical formula to analyze what can be done if we place greater emphasis on reducing fuel consumption.  Within 30 years, even without a breakthrough in fuel technology or energy storage, he says we could cut our oil consumption in half if public policy directs engineering toward reducing fuel consumption.

At CALSTART we are working closely with companies who are developing promising products and services in the following areas:  next generation biofuels, fuel cells, advanced batteries, more efficient internal combustion engines, electrified components, innovative fuel retail strategies, and light-weight materials.  With the increase in the price of oil, we are now seeing an improving business case for many of these technologies and systems.  This important mark mechanism has helped draw the attention of the investment community to the clean transportation technology sector.  However, if we are to really make a difference this time, we cannot rely on market signals alone. We will need strong, long-term, intelligent public policy to move our transportation system in the right direction.

Under the state’s current political leadership much has been done in California to move us in the right direction.  The passage of the new federal fuel economy bill in 2007 was a small but good step in the right direction.  In developing the nation’s first ever climate policy, much more can and should be done.  Congress also will have a tremendous opportunity when it renews the federal transportation reauthorization bill.  If bold and decisive policy is set forth in these areas, we will see significant advancements in technology to cut oil use and greenhouse gas emissions. 

Our engineers are up for the challenge much as they were when President Kennedy issued his race to the moon challenge in 1961.  We’re starting to see tremendous innovation occur.  For it to be sustained, we will need better public policies.

John Boesel
President and CEO
CALSTART

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