Students are getting the education they deserve. This is a large problem. Nearly a nearly 100 schools in detroit Public Schools, 60 Charter Schools in and around the city, 18 Educational Achievement schools, several adjacent charter and school districts, yet parents cannot find the quality education they seek. One of the issues is detroit Public Schools are in debt. By this summer it will be over 515 million in debt. To achieve the needed academic outcomes Financial Stability and detroit Public Schools must be achieved. Going1100 per student is to debt service, and not to classrooms. Problem lets solve this problem and help the kids. Prompt legislative action is needed to minimize the fiscal impact on both detroit, and the rest of michigan. The time to act is now. And avoid Court Intervention that could cost all this much more and be more detrimental. I want to thank senator hanson for the legislation and the input of many legislators that they provided over the last several months. I asking dont move with haste. Senator, please rise. [applause] i ask that you move with haste. Senator, please rise. [applause] the Detroit Education Coalition also recommended a Detroit Education Commission to help students achieve a result in all schools. This is a good idea, but has not drawn much support. We should keep looking at this key element to help detroits kids. ,he School Reform Office Working with detroit Public Schools and local leaders will actively address the issues in lieu of the commission. All of us from state and local toicials, education charitable, and civic leaders, parents, too concerned citizens, need to Work Together quickly. The challenges are wellknown. The alternatives are defined. Now is the time to get something done. Great schools are critically important for the city of detroit, and the entire state of michigan. Lets address this decadelong crisis now. [applause] every michigan child deserves an education that launches them into a successful career path in life. The best careers in the modern economy require training with access to programs that gives them the skills, and experience. Necessary to prepare them for college, career, and life. We have made progress. We have made some good reforms. We have added tougher academic standards without federal mandates. Weve talked about teacher effectiveness. We are a National Leader in funding preschool. We created Early Literacy programs in terms of prethree rating. In terms of stem programs, we are a leader with programs like first and square one. We have done wonderful things with early and Middle College programs. We have made a commitment i have made a commitment to make sure that we are the nations leader in career technical locations. These are vocations. These are all great priorities. One illustration i would note tonight, hopefully that the program i want to recognize the wonderful young student that designed the program cover. From seventhrise, grade in New Baltimore anchor bay mills school. Middle school. [applause] alina, youre the future of the state. I appreciate your parents bringing you here tonight. I like that thumbs up. But, all of us, whether we are a policy leader, and educator, or community leader, or a parent, or a student, we all have to have some accountability for achieving these outcomes, and to be blunt, we have a 19th century Education System in the toy first century. Twice for century. Tury. St cen it is time to ask why. We have cover hints of studies, when on funding, and one on technical education. We have had wonderful task force with actual items. I am proud of the one we did with prethree reading. That was completed. We have another one coming soon in special education, in terms of recommendation. We also have one on stem coming. More needs to be done. I want to recognize the partnership of our sick state and the state board. Brian winston has done a great job. He went through a complicated process with multiple stakeholders and developed an excellent set of goals to make michigan a top 10 state in 10 years. Brian, please stand up so we can recognize you. [applause] i want to show partnership with the state superintendent and the state board of education by creating a commission for 21st century education. Let us do a bipartisan, multistakeholder effort. Look at all of these studies and recommendations that investigate what have been the obstacles holding us back from greater success . And let us deliver recommendations to building Michigan Educational structures. What is the appropriate structure . What is the appropriate governance . How do we find it . Fund it . I ask for results by the end of november. Lets transition to talking about the Economic Future of the state. Our economy might in good today, but we need to take action to make sure it is good in the future. We should not take it for granted. That is how we had the mess up in the last decade. In terms of the compliments we should be proud from a job creation point of view. Since december of 2010 we created over 420,000 private sector jobs. We ranked number six in the nation. That equates to 232 new jobs every single day in the state. [applause] we are number one in the nation and manufacturing job growth. Our Unemployment Rate has been cut i more than half since december 2010. We are third in the nation for the largest reduction on unemployment in that time. Importantly with it though, it is not just about more people working, personal income is increasing again in michigan. We saw a huge loss in the last decade. I am proud to see in 2014 we increased 3. 9 , more than doubling the prior years growth rate of 1. 4 . That weis important remember that not everyone has participated in this comeback. We need to take special efforts to make sure the people in places that have not participated join us. We have created programs that do this. We need to continue to wrap them ramp them up, with respect to the urban places. One program i am proud of we have another a number of others, that it is community ventures. That was a program we built from soli state resources. The click civility to be done, and get it done. It has been successful. It has employed over 400,000 people by partnering with 110 companies. The retention rate after one year is nearly 70 , 69 . Are 11. 80n average an hour. If you think about it, what a great start. But what i will tell you is, that is not a final point. That is a point to get people successfully working that have not. Then we can apply traditional programs to give them upward mobility. More opportunity for a bright, longterm future. In flint alone, this program has accounted for 618 jobs already. We need to help other places though. I mentioned urban areas. Too often we forget we have rural communities, we have smaller communities that also suffer poverty. We cannot leave them behind either. I am proud to say laster we launched a program called rising tide. The program is based on the premise to go to each one of our 10 regions in the state and identify a challenge community. We have gone to those communities and said, we want to present a team of resources. It is not just about money, but people that can help. We have a collaborative effort between Economic Development resources, Community Development resources, and Talent Development resources all teaming together to go help those communities. Join the rest of us. As soon as we get those communities succeeding and we are seeing progress, we will pick new communities to take their place. We will keep going down the list until we have covered every corner of michigan. That is what we should be doing. In terms of michigans Economic Future, if you look at the industries in michigan we have automotive, agriculture, and tourism, i like to say our victory our big three. They are all doing well, extraordinarily well in some ways. The one in particular is the Automotive Industry. We should be so proud. We set u. S. Records for car sales in this country over the last 12 months. Next year is expected to be even better. Michigan has been the beneficiary of that. We are still the heart and soul of the Auto Industry, make no mistake about that. We should carry a special private that. Over 70 of the research and develop and in the u. S. Auto industry happens right here in michigan, in addition to building more cars than any other state. [applause] but i want to share something with you, it has been a tremendous opportunity and privilege for us to help support that industry and the wonderful, hardworking people on the lines building the cars, the Supplier Base doing the hard work to make the worlds best products. Youave a threat, i can tell if we did what we did in the past, we could lose the Auto Industry out of our state, in terms of leadership. Why is that . The Auto Industry is transforming to something new. The world is changing. The auto mobile industry of today in 1020 years will be called the mobility industry. It will be about how people travel, not just about the vehicle they travel in. It is time now to understand we need to look towards the future, not just admiring the past. This area in particular, we need to make investments. We have started the process. We have made some good investments. The primary being the area of intelligent vehicles. Autonomous and connected vehicles, and smart infrastructure, and how it communicates with vehicles. Several years ago we created something exciting, in partnership with the university of michigan called the chagrin mobility transformation system center. This is a real project you might not realize was taking place in southeast michigan. Literally have a testbed of thousands of connected vehicles talking to infrastructure, even today. When i say connected vehicles, do not worry, many of you might confuse that with autonomous vehicles, these still have drivers. You can feel safe on the road. This is part of our future. We need to do more. Just this last year we did a partnership and launch something called the m city. It is a 32 acre campus at the university of michigan for testing autonomous and connected systems, a closed loop with different environments. It is swamped. The Auto Industry has overwhelmed this place with demand. They were looking for a place to do this kind of work. M city is not good enough. Propose to you, and i often working in partnership with the congressional delegation, and i thank them for their efforts is to look to create the American Center for mobility at willow run. We have an opportunity to create over a 300 acre campus that would be the worlds best place to test intelligent vehicles, whether autonomous or connected. This place is critically important. The Industry Needs it, but we need to bring in the federal government, and say, this is the place for the standards for safe operation should take place. Right here im in michigan at miller run willow run. It can be the base for international standards. That is how we can help keep leadership of the Auto Industry in michigan. By making that future looking investment, and doing the right thing. To make sure that exciting car you saw at the Detroit Auto Show in 10 years just think. It will still have wheels, but it is a computer on wheels. We need a place like this to make sure we maintain our leadership for the longterm future. [applause] thank you. ,he last item i talked about about automotive going to mobility was an opportunity that could become a threat. Now i want to talk about something that has been a great opportunity for many years, but we face a major threat. Sioux lo sealock cks. We hours talk about it, and we are proud of it, but often we do not talk about how important it is to more than 400 ships annually use it. They are crucial to supplying the iron or that makes this deal for all of the vehicles i just talked about. And many appliances. If you look at it, most of the tonnage goes to one specific pollock. Bullock the other ones cannot accommodate the carriers. It is absolutely critical to the future. One. Ssue is, there is an analysis was done, what would happen if that one lock went down . It would devastate michigans economy. To be blunt, it could devastate the national economy. Think about it we would run out of steel. This is the kind of steel that does not come from other places. It is based on the or that comes through the sioux locks. It is interesting if you look at the history, a second thousand foot lock was actually authorized, believe it or not and 1986 by the federal government. Congress approved the second lock, they said we allocate the money to build it. This was something we need to work with congress on, on getting up done it done. I am proud to say we have partners in the federal government we have been working with to make sure we explain this issue would be public, to leaders in washington, and a commitment to get it done. I would like to recognize two great partners up in the gallery. We have captain steve, and Lieutenant Colonel Michael Sellers junior of the United States army of corps of engineers. Please rise. [applause] just as i mentioned a commission on infrastructure, a commission on education. When those commissions get their work done, we need to aggregate this to talk about the economy of the future. Aam also going to appoint commission on building a 21st century economy. Our economy is more productive than it has been in years. We are doing better. The better is not good enough. But better is not good enough. We need to continue to improve, delivering a healthy economy that the chicken deserves. One that provides opportunities for every person that wants to work hard, get ahead, and stay ahead. Network of thet first two commissions, but lets also add the confident longterm and economic tools, and creating a culture of continuous innovation. I am proud to say, we have a group that really represents that here tonight. I made a trip to the Upper Peninsula last year. I visited Northern Michigan university. They took me to a place, i think it was an old bank branch, not near campus. I walked in, it was about students helping inventors. The inventors were walking in with ideas, the students were talking to those inventors about the ones that could be made into real products. It is happening. Marquen market today tte today. This should be all throughout michigan. Think about this engaging students with inventors. Creating new economic opportunities. It is exciting. I after recognition ask that you give recognition. We have students and other leaders from nmu, please rise. [applause] we need to create an environment that supports Economic Development, and encourages businesses to grow. Opportunity needs to be part of our dna and the state. I will for the report by the end of december ask for the report by the end of december. The challenges we face in flint, in detroit, and beyond are serious but solvable. The question is can we come together today in a spirit of cooperation to find the solutions that people deserve, or will we succumb to crisis, and allow politics, and fingerpointing to overcome the . Eal needs of real people we have to solve this challenge. Every single citizen depends on us. We need to give them a better am a brighter future. They deserve it. To raise a family, to work hard, to get ahead. The personally committing next three years of my administration to tirelessly work to ensure the families of ,lint can heal from this wound and every michigander enjoys the quality of life they deserve. To do this, i asking return ask in return that your prayers include the people of flint. I ask for continuing Strong Partnership council and commitment of all of our legislators gathered here. For the commitments of all of our citizens to Work Together as michiganders with relentless, positive action, and to hold me accountable for results. I thought the office of governor of michigan i saw at the office of governor of michigan to reinvent the state. We were broken. We have repaired and reinvented many critical items in the last five years, including issues that many did not think of be solved could be solved. The crisis in flint makes it clear to me that more needs to be done. It is truly a humbling expense to see the people you work for, and care for, harmed by the people that work for you. But michiganders do not quit. We do not give up. Instead, we will work with more passion and commitment to truly improve the state for everyone who has chosen to make michigan their home, this is more than a promise, this is my commitment. Thank you, and god bless michigan, and our nation. [applause] [applause] the escort officers will escort the first lady, the alked about the flint, michigan water crisis. Thank you. It is great to see some of the leaders whose communities i have been to. It is a wonderful opportunity to share our experiences and talk about what is going on and what the future will look like. I will spend the bulk of my time talking about climate issues. And i think there has been a lovely marriage in the work about how we of been reaching out to massive communities and building on their successes. My main messages thank you and lets see how we can do more together. Before we start, i want to say a few words about the ongoing concerns people are reading about and there working on because the entire federal government is responding to what is essentially a Serious Public Health crisis. Health and Human Services is leading that coordinated effort. Epa, fema, hard, and other agencies are involved. The 1st priority is to make sure the water is safe. That is all of our number one priority. The ability of epa to oversee the management was impacted by failures and resistance at the state and local levels to work with us and what we know to be what is usually standard operating practice of acting in a forthright, transparent, and proactive manner. We are seeing it in the conversations i have had, and interest in making sure we move as expeditiously as possible with the governor statements to move the issue. But epa is conducting a comprehensive audit. We are taking a hard look at what the epa might have done differently so that we can prevent a situation like this from ever happening again. We have to recognize our cities are facing difficult resource challenges. But we want to make sure in the face of those challenges we maintain our ability to provide Core Infrastructure services, have the ability and resources to maintain what people have come to recognize as a core, essential need. To maintain in a way that does not place communities at risk. We will Work Together, but we need to do this. We have a history of working together, and i want to make sure you can come to us with concerns because we all have to Work Together. It was a pleasure to talk to the mayor. We will address this issue as quickly as we possibly can. Let me return to the issue at hand because one of the reasons i am here is to thank you because i do not know if you have been reading about this. The most important thing to know is that the conference has been remarkable in their commitment to the issue of Climate Change. They had a presence that made a difference. What you have said is made remarkable difference because we would not be where we are today if it werent for the innovation and investment and drive and energy that has happened with mayors. It is the local level your building on. As states have touted their success and the us touts its leadership, when we went to paris it was because you have been looking at ways of decreasing energy by looking at Energy Efficiency, what do i local resources, Renewable Resources and how you grow jobs and keep the Community Safe and instead of wasting money you invest in teachers and police. This is what it is all about, so i am excited to be here to say thank you. Holy are trying to do because we did so much outreach, learn the lessons you have learned and how we can marion effort that is about driving Carbon Pollution down with an effort to provide you continued resources to manage fiscally in a more productive way. There are ways in which you have married this before, and we will use the Clean Power Plan is a platform to continue those great efforts and investments. Let me stop and say a few things. It may not be apparent to all of you at the local level. First of all, it really refax a tremendous amount of coverage. As a result there were lots of changes, but one thing did not change my complete flexibility for the states to develop their own plan. We have provided ourselves an opportunity to look at how to develop a model at the request of the states and local communities that reflects that flexibility is clearly as possible. This is an opportunity to say if you wanted cooperative federalism you got it. The ability for the states to do what they need to do is entirely there. Today i am here to tell you that this is the time for mayors to get engaged. You can make this work. I will tell you, conversations have been with epa in the states incredibly productive. If you have not been engaged step back, stop reading headlines and talking to folks at the state level and your own folks about how much there is positive momentum moving forward. And i am not talking about environmental constituents that the utilities themselves saying this is so flexible we can make this work, and there is a transition. The more we run toward it the more we will capture jobs. I would love to be able to continue to work with you. Every time we have an issue janet is setting up a webinar, going to a state, local community. We will not stop. Were doubling down so that as states are looking for the most creative ways that will maintain reliability, we provide them resources and help and Technical Assistance to be able to get it done in a way that they can meet their obligations and continue to drive our shared economy moving forward. That is what this is all about. We can stop theyre. I can provide you more information if you want, but now is the time for engagement. The states are going out and doing stakeholder meetings. We have weeks with our 15 because states really want to know how to do this, but no one is sitting on the sidelines. If you are hearing that we are getting sued, just think to yourself, there is nothing new in this. Below that there is a level of engagement that is positive and interactive and that i think indicates everyones willingness to take advantage of Climate Action as a way to keep cost down and continue to grow our clean energy economy. Let me stop there, and we will continue. [applause] thank you very much. Of course, your comments on the tragedy in flint, michigan. Every player in the run since positive thoughts. Now the opportunity for mayors to ask questions. The last them to raise their hand. I will take the chairs prerogative and asked the 1st. He mentioned the headlines that you are dealing with the sometimes provide misinformation. Questions not speeches we have a limited amount of time. We are here to help when glad you said that. Because we deal with this every day. How can we directly work with epa the states are not willing to work with us . We are in a region five and susan is amazing. And then to stop a major redevelopment in its tracks. The. That is a great question and we had good conversations. Everybody should know each Regional Office has a person identified as a liaison on the Clean Power Plant. And to be backed from headquarters at the Regional Offices and the beauty of the power plant with all of the stakeholders with the ability to crack the plan that makes sense for them and because it pushes and follows a long and almost parallel to the work the states doing is all the work to develop these resources and coming to Energy Efficiency we already have a working relationship with cities and towns on these issues through energy conservation. Contact your regional contact or me. And we want to hear your ideas to save america is interested so lets make sure everyone is included in the conversation. Were you involved with the negotiations and it was announced last week and if you did thank you but utilities agreed to eliminate coal by 2035 . No. There are many great things about the epas administrator. We dont provide direction on what Energy Sources folks want to use. And then to be a significant part of the system. That the coal that is generated but i stick to it. I was wondering if you could speak to coal to travel by open rail. There are many ongoing discussions at the federal level about safety issues in general. With a lot of investment that has been discussed of how we address that issue relative to a number of facilities that many of you know, that are proposed to transport coal along the western seaboard. The role is to provide opportunities for a complete disclosure and to be in those discussions and there is a lot of different arguments on many sides i cannot tell you what directions they will be headed they are not for the epa to resolve but to make sure that Environmental Impact. Serving with the Affordability Coalition and. White is the final resolution . But what is the status of the affordability resolution . Minder standing is the affordability resolution was finalized to change with those conversations. That doesnt mean that conversation stops. But nothing is final in my book. Parts of this is related to the struggles that many cities are going and. And as you move forward to keep the city is running all recognize there is the infrastructure necessary that conversation has not stopped and should never be stopped because the epa does recognize to meet for your constituency but as flint told us we have to have on this dialogues to put the citizenry at risk. One of the things i worked on with the restoration is we need to build the marshlands that to protect from raising sea levels. And with a lot of dirt. And one of the sources for that is the material to clear out the harbors and channels. Right now the of conversation, the rules are all based on costbenefit. And trying to figure out things to put into the equation in the entry of no real environmental benefit. That is not the way it should be it should be a very important component so anything you could do to help us figure out. I will take that back to the of leadership but the irony is i spent five years in connecticut. I dont know if it is worth sending it to you but there are sun hear from the great lakes area. And then to put those materials in lake erie that is getting warmer is shallower that are contributing to the blooms and toxins and then as a federal government to have conversations that connect the dots because you need to think illicitly about solutions but not confined by any one of lot to be developed in change i know the army corps is looking at this site of more than happy to talking and see if there is an opportunity so i want you to know i got to ask my adviser what about that task force on church . And that is invested to keep her in his place so that is common to talk about. So many cities our represented here have very ambitious sustainability plans and the resiliency and the administration in justin done to the ambitious plan and they were well represented at the same time and we are headed for cheap oil across the globe. What your thoughts on cheap oil with a very ambitious Climate Change chances it ability sustainability but the congress the way it is set up will not pass anything it will be up to cities across the United States to have commitments under that agreement. Any followup questions . In the audience . We have Climate Action activist for the of carbon tax to fund the what is the policy of a carbon tax . That is another lovely part of my job. [laughter] i work with my own. But then the that Climate Action plan that hasnt changed. Em look at what day gave them to do that the epa is just responsible for looking at our tools. That if congress was to create another flexible tool that folks think is advisable to pursue then. Added. But we just dont see that happening. That went to confine any state from any resolution to address Climate Change. And we are here to help. I would not take a thing of the table but its epa itself is not in the business of creating those types of taxes or fees as a year in the business to follow the Clean Air Act that is what a represents. Everything we wanted to know but were afraid to ask. [applause] that is only half of the agenda. Thank you again for being here now we have individual said representatives who will talk about what theyre doing to help states across the country and the Important Role that mayors need to play in the process. So nextel will bring up to the podium speaking before is a deputy administrator now he is serving as president for said net for Climate Energy solutions. And his role and responsibility is to help states adopt the of climate plan with universities and others that is an independent Nonpartisan Organization n the conference has been discussing how we can Work Together as it relates to the Clean Power Plant to have a more formal relationship in the u. S. Conference of mayors. With the adviser and the friend first we hear from brendan who is the regional director from north america and supports the citys with the Climate Action to the implementation and serves as chief of policy for the District Department of washington d. C. Hit each will speak about 57 minutes then we will take questions. For the of closer we have our friend from the city heat of st. Louis who will talk about an Awesome Program with the leadership. What a pleasure i will speak as fast as i can. I was living in brooklyn for a while. So thank you for your leadership but that since recorded that is also a 22,014 the hottest year before that and i know it is hard to believe this to be another hot year going on outside that if these temperatures are Global Temperatures we know the climate is changing in to see the effects of it. Whether summer heat, cold heat, cold, disproportionate precipitation as he heard from these San Francisco bay from rising sea levels. In the ocean gets hotter and experience so that service will expand because it is warmer to take up more space which is the scientific way to say there is rising sea levels. Chino was terrific to lay out how they should keep an eye and to emphasize that some more. And 300 mayors were there at the summit. It was a lot inspiring and we have a relationship with many negotiators to push them forward natalie from the business community. This leadership is demonstrated worldwide with Climate Mitigation programs programs, adaptation, livabi lity, sustainability, econom ic competitiveness driven by the work bears are doing. That to leverage that leadership beyond the city itself it is important that we want to start to followup how can mayors also influence the states or participate in how the United States meets global commitments . That is the big emphasis in paris. So what affects that Clean Power Plant things like Energy Efficiency, Renewable Energy building Renewable Energy. Landuse reviews to see how we can accommodate key point water and energy. With one of the Largest Energy uses in the state pumping water. If you have a family of four with 100 gallons that is 1 ton of water. Think of delivering a ton of everything. Think of the energy to do it. But we do this now with our Drinking Water plants. There is a lot of opportunities that the states dont have to adapt on the ground. But the cleanair program is part of the Incentive Program for Energy Efficiency and Renewable Energy and targeted to lowincome communities. Mostly that happens in cities. And with the tax or the capntrade all that will have revenue moving around so to give you a quick example why this is important, Energy Efficiency and Renewable Energy and i looked at the gap United States has to meet the goals for the paris agreements with the reduction from 2005 to the equivalent of 700 metric tarrant metric tons if they cant accelerate that Energy Efficiency in just 15 years duet by 2025. That is 210 million metric tons. And how to get that to be there is something we dont have a good handle on. We dont want to reinvent the wheel. End if that is approved by the state they need to play in their revenue decision. And to have much advantages of any income incentives. And they were center stage. The white house report came down to to show how there was no mention of city is the policy gaps if you have the combined energy it can be harnessed in to be important. We have been around almost 20 years. To have a strong and trust relationships to have ted power cos to have that trust relationship with the mayors so we have started to use the relationship to talk about the things it does mention in what we want to do is be more up front with the conference of mayors. We think that has a tremendous opportunity as a wellrespected institution to play a pivotal role for the citys employment for the Clean Power Plants and the United States globally. And to have a meeting with states and cities so we are looking forward to that. And together last airlines a little bit of business. [applause] thanks for having me. He is already a dancing my slides to keep me on time. As the administrator as the innovators for Greenhouse Gases or all of these different indicators with the Global Network of cities and we are focused on the fact we will not solve the worlds problems about taking serious action around climate into the engines. But between 80 to 83 cities to drive home the point looking out large numbers of people with us gdp and looking at onequarter of the gdp across the conference of mayors of the critical impact that you will understand the impact that the mayors can have. In bin climate and action in response to National Disaster and Climate Change cities are acting first. And looking at those current demographics that have said that to be threequarters by 2015 so that puts you in the position to be the solution you cannot solve climate is rotation and energy you just will not fix it for the planet. With the conference of mayors many we have seen walking downhauls are truly National Global leaders on this issue. So we say the battle by cities and states very clearly but when it comes down to it it has to be implemented buy you with the transportation approach as he decided to implement Solutions Globally are nationally at the street to street level. What we find is the best way to get anything done is nearer to mayor. A set policy and direction and then the turnaround to work with other organizations like the National League of cities and others. So what you look at any types of these tools to transform the market with trusted allies and Better Communications the best answer has tackled the problem to offer so working together is in collaboration at the core of our efforts with the epa and Department Said energy menem was can solve these problems together and so a number of the solutions refocus very strongly on to bring mayors together to provide leadership and learn from each other we had a reception in the other night has anybody signed on . For those of you that arent to sign onto the compact is a glass bowl and leadership effort and provides collective leadership to demonstrate locally and with that Global Leadership to help build the community to provide support to each other. And what they cannot do individually and that is true in the United States to have Ambitious Goals coming out of paris we can do much more together collaborative lead and individually. And to recognize the efforts with apples to apples to be transparent to look for Technical Assistance to get there. It was started one year ago with organizations of other Global Entities so this was the focus of what had been in paris and know if anyone in the room is in this picture over 700 local governments were represented that is an unprecedented and by bloomberg and his special role as the envoy for a climate citys progress this point there over 120 in the United States year very lucky to have support from the white house in this effort president obama actually put out a charge to have 100 cities before paris but since then we have grown at 122. And this is the process of planning for a mitigation for Climate Change and then you get compliant with Greenhouse Gas inventories and made a plan how you bring these solutions to local community and it is doable in their those of her already compliant so it is important to signon this is beneficial and doable not an empty pledge. But with those specific best practices the ideas you have heard today there is all sorts of policies and Oil Prices Going down but on the ground this is unjust climate at large but as transportation and congestion health and welfare of citizens so one of our efforts across the globe that the businesses use their collective power to say we want a cleaner bus with the specifications what can the market deliver . In the last years has driven the price down by 15 percent with cities participating so that declaration started in latin america but i would love to talk with folks here who are interested in signing on. Another is the highlights that we give awards each year in the comment already brought up was the ability to have purchasing power is the untapped resources so cities like d. C. Getting awards but the southwest as hundreds of megawatts within communities and businesses follow there is some great opportunities there to move renewable and Clean Technology so within space the economy there is 17 trillion out there to be saved in the coming years and though less money you send out or export on fossil fuels very few communities to have dumped all of their money at of the community and it is big money the more that you retain stays local so there are a few opportunities one captures the of value in particular and to translate that to local services that our lower carbon and you know, these of access to capital and solutions and governance so were working with birders in the conference of mayors that brings business together to deliver solutions to the people executing policy at the city level. How do you know, . These are hard questions the next is of mocking the of many in that it all comes in on to the money bet will hold a number of factors in our case we have a tool called the finance facility to wring money for Technical Assistance to unlock private capital. I will not go into that now but happy to do that later but we need a lot more money and that there is investment today if youre looking for an investment for your portfolio, there are clean investments out there that will be the future. Thank you very much. [applause] just one or two questions we are short on time. What about the availability of cheaper oil . Is that the help for a hindrance with cities working with the Climate Change plan . There is no question it complicates the scenario which is hard especially with some cities, may only be 20 but then that means that the majority so those selections didnt affected. But it gets harder on the transportation side but. Said here where there is a real opportunity for marriage to be put in place that each year the automobiles sold have to be more fuel efficient so they would be 54 miles to the gallon and there is a lot written about more suvs because the price of oil is lower but it is blind to the type of cars that they buy they all still have to meet those goals as an average if they sell more big ones then they have to sell more little ones the big killer is vehicle miles traveled so the knicks of cars is problematic but the industry has to do with that to comply so youll keep Getting Better cars showing up. But you can compensate for the fact that some people may drive more. Who has pest control and or transit alternatives six cetera . Cities. You have the ability to make enough impact on vehicle miles traveled to the metropolitan transit authorities so there is a real opportunity between the Transportation Systems management i wouldnt throw out a hopeless situation with cheap oil but it is a challenge. Phoenix, arizona has been severed bin traditionally the past the largest transportation in investment in the country to triple the of light rail. So we try to follow that. He will be ever closer but first there are many talented staff people working through the conference of mayors. Tom i know you were watching give her a raise. Please. [laughter] now we have a Great Success story showing leadership to preserve the of monarchs butterfly. I appreciate your leadership on this committee and. I will be very brief as the year running out of time that this is something i will talk about that indeed is the residence on a citywide basis and beyond. It helps the environment and connects people with nature and a fun project we call that milkweeds for monarchs. It is a project that addresses the issue of the tremendous drop of the Monarch Butterfly population it has dropped 90 percent over 20 years. Beautiful pieces of nature if you noticed bob has on a butterfly tie. And there really does impact our community is in a big way and there is an easy way to deal with it to plant milkweed. 90 drop is attributed largely to a reduction of habitat and misuse of chemicals. So were getting people engaged. We have planted Community Gardens and government places like schools and Fire Departments and city hall and parks and we challenge the rest of the community that their homes all over the sydney to even go on line and register their are butterflies all over the city and it has a big impact and is working. Already in the second year noticing a lot more in our city and people are enjoying that the studies have shown by connecting people with nature and improving the green space and accessibility has social economic and environmental positive impacts and lowers stress and anxiety and reduces Blood Pressure from improves overall happiness in with children reduces symptoms of the bhc resulting in higher academic achievement and impact on increasing Property Values with more green space and for neighborhoods this is the reason why we do it to learn more about it we have a flash drive we have passed out. To our sustainability director this was the brainchild of hers and brought this idea to me and if you look at the board this is the cycle of the Monarch Butterfly this is my butterfly garden at my home. You can see a person and i have of video of the monarch coming out of the chrysalis on my cell phone. We just wanted to leave this with you and if you have questions we will be available after the meeting. Thank you. [applause] the great local success story. No a big ground for all of our outstanding speakers. [applause] thank you for participating we will see you next time. [inaudible conversations] [inaudible conversations]amilieo support. Good morning we will call to order. This morning we have a hearing on the status of Innovative Technologies in the Automotive Industry. Good news the dont have to drive a lot here but there were a lot of people on the road yesterday making advances with Automated Technology and how we will handle the us know. Retried deliberately with where were starting with our Bipartisan Energy bill to take that up that the first of next week on the senate floor but also here because the washington auto show kicks off tomorrow and raw there is no substitute we do have the ceo of the manufacturers here to share his thoughts. Auto sales hit an alltime high in 2015 the of the interior was spurred by low gas prices and they are projected to remain low throughout the year. Vehicle sales are boosted by the tremendous innovation during now and that is of a story that deserves more attention. Recede dozens of alternative fuel models like tesla to thus fuel cell powered to the ford that can run on compressed natural gas and propane. We have seen exciting developments to self driving cars to offer their own benefits. Today is an opportunity to learn more about innovation as relates to alternative fuels and trap the part of the Research Activities and the committees jurisdiction and. Plan helps us to understand the challenges to be overcome and a chance to recognize it is facing heavy regulations as fuel efficiency and while those regulations are not in our jurisdiction it does have an impact on fuel consumption and it is worth monitoring another goal is to examine to support innovation working as intended to help the Auto Industry innovate and that brings us to the work of the doe with the Technology Office at the national lab. Instead of taking one Favorite Technology with our federal limited Research Dollars of the better path is to support research and a wider range of winners and let the consumers determine which is best i think were on a good track and to Work Together with the bill that has provisions from any Automotive Industry including a modified version by senator peters and alexander to provide the department of energy with the authority and clear direction for the research mission. We work hard to make sure that the vehicle innovation policy is bipartisan were looking forward to what the witnesses have to offer. We have a vote scheduled this morning and the panel needs to leave by 1130 so we will be expeditious. Thanks for holding this hearing this is the way to talk about the new technologies when interested to hear about the changes in the transportation sector. That has sold a Record Number of vehicles last year but there is no lot of work to be done. Transportation is responsible for 30 of Greenhouse Gas emissions we have reduced the use of oil the need to sharpen our focus on the transportation sector this is why we have a longstanding relationship to deploy a next generation and research as we work with light duty automobiles to conduct research to improve fuel efficiency standards and to have a great transformation in the aerospace industry. The Bipartisan Legislation was passed last year by members of the of the committee to reauthorize the Technology Office and directs a new focus your looking forward to explore the of ways this will help make additional loans of transportation the effective. So consumers are looking to merger vehicles but then to be less to vote this is the first time it has all dropped and the oil market had can be volatile ill and there will be a correction we have heard. So the biggest deaths he could take is to help reduce admissions of their promising new technologies today with the advanced. The Pacific Northwest laboratories have partnered for decades for researchers have focused on aluminum to make lighter vehicles but to go back with you they are but including the cadillac and in addition the labs are working on Game Changing technology to use of fuel from plant matter. This is important to diversify a the source of fuel to hedge for the future but improving efficiency is brought about by focusing on the network in each year three billions of gallons is the runaway because of congestion and businesses pay the price of added cost suez the export economy continues to grow we have to get them to market that is why the super truck issue is important and my colleague and to achieve more fuel but to save up to 1,200 per year in crisis and reduce emissions 48 and then to drive down the cost of electric car batteries but the average battery pack was more than 1,000 per kilowatt now it is less than 300. This means vehicles can travel further with better performance that we need to ensure we are focusing on the next generation and technologies their curly only 900 fast starting stations that is compared to almost 170,000 across United States of america and i look forward to hearing from a the Witnesses Today how we can continue to answer that part of this equation and of course, selfie driving cars are important aspect for future automobiles and what the witnesses might have to say but the secretary and others made a point to continue the discussion of the efforts the like those of our pioneering us for doing our job here and. Now we will turn to the panel. Thank you for the opportunity to testify today. If we look at the world today are national imperative is clear, we must win the clean energy race. When we do that, we will capture a multi trillion dollar Global Energy market and the job, the energy security, and, and the opportunities that will be created along the way. As principal beatty secretary at the i help manage abrupt Portfolio Solutions comprised of high impact research, development, and demonstration activities to deliver on our mission. Through renewable power, energy Energy Efficiency and our focus today, sustainable transportation. As we heard earlier transportation accounts for more than 70 of u. S. Petroleum use. About one fifth of household expenditures and nearly one third of u. S. Energyrelated carbon emissions. It also accounts for other things that are harming our children and grandparents. We focus on two key solutions. First, use less energy to you move people and freight. Second, fueling vehicles with alternative fuels with lower Greenhouse Gas emissions. To our work at the national Renewable Energy lab and other lab partners, private privatesector partners and other key stakeholders, we help deliver significant results through technologies that are on the market today. In fact, each Dollar Dollar we invested in heavyduty vehicle Combustion Technology has delivered about 70 and net benefit for taxpayers. Seventy to one ratio. Our super Truck Program has shown to cut fuel by one third to one half and some of the aerodynamic entire technologies from that program are already making their way to the market. The batteries from the bolt then spark, all tap into industry licensed Technology Developed at Argonne National labs. Eer e research has increased durability while cutting costs in half cents 2006. Thanks in part to research a memory Electrode Assembly technology, two companies today are selling or leasing fuelcell vehicles with another one to enter the market this year and others to follow. While we are proud of how far we have come, theres more to do. As president obama and other World Leaders affirmed at the launch of the mission and Innovation Initiative in november, solving our energy and climate will involve innovation of new technologies. While we continue to lead the world in innovation and entrepreneurship, we are are under invested in clean energy. In fact, compared to the size of our economy, we have best about one third as much in Clean Energy Research and development as competitors like china and japan. As we try to reverse this trend, well continue our electric and heavyduty vehicle work. Work. Well also invest in other important areas like the coop of new fields and engines, fuel efficiency. Through cross cutting our efforts to develop advanced highstrength material to reduce costs and improve performance and enhance Manufacturing Processes for automotive use such as the ongoing work mentioned before at the Pacific Northwest National Labs as well as composite work there and it Oak Ridge National lab and across the country. Modernization is also important to fully integrate plugin electric vehicles and fuel cells into the National Grid in a safe, secure, reliable, and costeffective manner. Including critical Cyber Security work at laboratories. A research and Transportation Mobility is also critical in order to identify untapped, systemlevel savings through connected and automated vehicles, like those at the ann arbor connective vehicle test program. With programs like these, and support from you, and the technology youll hear about, the department of energy will continue to drive innovation within the Auto Industry and into the vehicles on show room floors and highways across the United States. I look for to working with congress and with this committee to further advance transportation technologies, to create new jobs and industries while saving consumers and businesses money and helping to address our Nations Energy and climate challenges. Thank you very much. Thank you. Thank you chairman and members of the committee. I appreciate the chance to be here today on behalf of 12 oem, the d3, and, and nine others from europe and japan. Our guys and others are investing massively on r d, 109 billion last year. Those on 60 percent, thats roughly four times our economic way. We are prospering with sales and investing back into r d and that is paying dividends. As i got up this morning i looked at the weather and realized i had to travel 20 miles and tried to figure out the best way to go. I took a path that was different than any other i had ever taken for the last 20 years of commuting in fairfax. So nava directed me to washington in a fashion that was quicker, so i save time and it was more productive, is cleaner and more fuelefficient. That was something i was a metaphor for today, technology is bringing about a convergence of the social objectives. We want mobility to be cleaner, safer, and more efficient. That is exactly what were doing here today. I thought i would go through some slides rather than read a statement. If i can i will do it fairly quickly and asked that you be patient as i tried to get through. The title is what type of and in general your next vehicle be. We do extensive extensive pulling, about 5000 samples of consumers per month. 167 folks only ask him what kind of vehicle there next one will be. You can see in may of 2012, roughly 20 wanted to go into a highbred roughly 60 said they wanted a gas engine, if you look at the line over the last three and half years, you see the hybrid number falling. Then he see the gas number rising. Thats counterintuitive to the world offering more models and showrooms. What is going on is we have made progress that is so profound that when a consumer goes into a showroom, they discover their new cars getting roughly 25 more fuel efficiency than their old car on the success of the Commission Engine is making it harder to justify the delta to go electric. Thats a challenge for us. Going electric is a worthy goal but there is a Market Challenge there. The next line speaks to the number of cars for sale. In 2008, there were roughly 21 or 22 models, that is now up close to 80. That is a combination of to 80. That is a combination of electric, hybrid, and plugins. The next slide shows the number of models that are getting 30 and 40 miles per gallon. It is a seven times increase in the number of models. The models are in the showrooms, the opportunity to buy the more fuelefficient vehicle is there. On the conventional thigh, that is making the choice. Then you look at the sale for powertrains and you can see theres been a dip. 2015 was a slowdown, part of that with gas prices, part of that was the success of conventional engine. The next slide shows Retail Markets of market prices and it looks like synchronized swimming which you have between gas prices and the sale of hybrids. A similar pattern with the sale of cars and trucks which is the next lie. Im moving quickly because im out of time. I want want to spend a second on safety. The slide titled the 2014 vehicle fatalities showed we watched and we are looking to drive at number down. 97 of those had nothing to do with the vehicle it was human air. Thats why technology is so important. It can mitigate human air. The next lie puts the fatality into contacts, that is a 65 year trend line, the | is the absolute number and you can see in 2013 it is roughly where we were in 1949, the vehicles Miles Per Hour is higher in the number of drivers is higher. Thats a result of less junk driving, safety belts and others. The next chapter will come from the technology were talking about today. I would make that point that i started with in terms of the nava. All of these technologies are not about safety in green, its, its about maximizing all of the social objectives. When you avoid a crash, it is very green and it is very safe and productive. So whether it is advanced try versus or folia thomas vehicle, it has a profound magical application for the economy in life. We appreciate the focus on innovation today. We focus on the convergence of these. I would like to make one last point. This last slide shows the dilemma that we have. It shows a 25 year pattern, the blue line is year over year change in household income. This salmon colored line that rises is the price of the auto which in part has been driven up by compliance responsibility. The yellow line is interest rights. So in effect what we have done is we have financed the ability to comply more vehicles based on compliance by lowering Interest Rates and with longer terms. As Interest Rates begin to rise we have to be mindful of this equation. It produces a challenge that may have job implications in terms of manufacturing and also in terms of turning over the fleet to vehicles that are more fuelefficient. With that, i say i say thank you. Thank you. Very interesting. Good morning. Im genevieve, president of the elective drive association and im pleased to be here today to speak to you about the advances made made in electric drive. The Elective Drive Transportation Association is a cross industry Industry Trade association, our members include the entire elective drive team that is developing manufacturing and today electric drive is performing in lightduty cars, trucks, buses and mobile equipment, offering clean, high performing attorney tips to oil. Innovations threat the industry is providing consumers with more options with enhanced performance and reduce costs. It is accelerating changes in mobility overall by connecting the power, transportation and communication sector. Since commercial scale and late 2010, this segment has grown from two vehicles until their plan for rollout in the next year. They include offerings across a range of price points and vehicle categories. With all electric electric ranges from 11280 miles. Total sales surpassed 400,000 in 2014 and sales are expected to triple by 2024. The diversity. The diversity of electric drive market is set to go further which can offer approximately 300 miles in range and repealing and threefive minutes. Automakers have showcased a large array of electric vehicles including a midprice battery electric vehicle with a 200mile range, a luxury plugin hybrid, a battery electric microbus and a plugin hybrid minivan. This is a sampling of the offerings and the diversity of the customer needs they are designed to meet. Behind the vehicles are innovations and investments that are enhancing performance. A notable example is the reduction in the cost of lithiumion batteries. As well as the reduction in autumn motive fuelcell costs. In part from the private sector Collaboration Department of energy which has brought down the cost since 2008. Innovation and. Innovation and electric drive extends beyond vehicles, collaboration are occurring across the industry to drive down costs and build out infrastructure. Utilities are creating new Business Models was muttered demand management to serve the mobile load and maximize the benefit to their customer. Vehicle battery and Energy Companies are partnering to scale and diversify. Use of new imposed automotive batteries gives energy and consumers greater control of the Energy Choices enhances stability, and is forced distributed energy. At the same time, charging, charging facilities expanded greatly. There are reportedly 12000 charging stations in the United States with 30,000 charging outlets. These do not include private, residential and workplace charging options available. As quickly, Business Models are emerging, vehicle and phone based applications are making it easier for drivers to evaluate charge options and increase their electric miles travel. Hydrogen infrastructure is emergent, in california nearly 70 stations are scheduled to open. Publicprivate collaborations are moving forward to expand that number. Electric drive transportation is also reinforcing the autonomy in vehicles. While that can tune you him of the technologies being built today it is not exclusive. Electric drives i will wrap this up, to summarize i will say that we are making great straights but we are still an emerging market and we are pushing to deliver enhanced performance that would reduce costs. Publicprivate partnerships from technology to infrastructure buildout are critical. We very much appreciate the committees recognition of that important work in 2012. Again, thank you for the opportunity to speak with you today, i look for to your question. Thank you. Chairman and members of the committee, thank you for the opportunity to speak. Im chris, director of transportation. Prior i worked at Ford Motor Company for 16 years. Innovation has been an important part of the Automotive Industry but today the rate of change is faster than ever. Technologies on the horizon that promise future that dont cars that dont crash and dont damage the environment. The department of energy in the National Labs are working on technology to help make the future a reality. Today i will talk to you about the ways the National Labs are helping to meet these goals. Autonomy did vehicles are over the news, theyre presented in the context of safety and convenience but they will have a big impact on environmental emissions. One example of research in this area is the connected traveler project. Its a funded project with a goal to develop algorithms to understand travelers preference so that taylor recommendations and incentives can be provided by the individual traveler using Realtime Data to make better transportation decision. From this and other projects and is clear big data and Cyber Security are going to be increasingly important in the Automotive Industry. National labs have significant expertise and capabilities in these area. Labs are also doing lots of work to accelerate the development of electrified vehicles. Were using expertise in the batteries, highperformance computing to shorten design time and improve the performance of automotive batteries. One example of this is a project to develop new computer aided engineering tools which the Automotive Industry can use to shorten design time for battery development. Wideband gap semi conductive materials will make the Electronic Device is smaller, more efficient and able to operate at higher temperatures. For electric vehicles it means well have more efficient vehicles and more efficient charging stations. Power america sponsored by the doe is a Partnership Bringing together industry, university and National Labs took accelerate these devices. Electric vehicles are becoming part of the expanding internet of everything. We are examining these interactions between Building Energy systems, utility group, Renewable Energy systems and electric vehicles. We have worldclass facilities including the Energy System facility and the Vehicle Integration system to study these interactions. Fuelcell electric vehicles are now commercially available. This is made possible by more than a decade of innovation, supported by fuelcell Technology Office, resulting in a 50 this is fantastic. There are still significant challenges to be met including the costeffective generation of Renewable Hydrogen and the development of a Hydrogen Infrastructure. We are a world leader in hydrogen production, where partners in h2 first, a partnership that is working with Industry Partners to find Innovative Solutions to Hydrogen Infrastructure problems. The internal Combustion Engine is going to continue to be in the central part of the transportation system. Groundbreaking research over the past ten years has identified new Combustion Engine strategies that particularly, when optimized to run on Renewable Fuels will offer significantly higher efficiency. The doe has launched an initiative to work on this authorization of biofuels and engines. Replacing heavy steel components with wider metals, plastics or composites can reduce the mass by 20 . The institute for advanced composite manufacturing and innovation supported by doe is working to develop new, lowcost, high, high speed efficient manufacturing and recycling process technologies for advanced composites. In conclusion, there is a wide range Research Underway that will achieve many benefits for the nations transportation system,s transportation system, including improving Energy Efficiency, reducing Environmental Impact and driving u. S. Competitive this. Thank you. I will be be happy to address any questions. Thank you. Thank you chairman and members of the committee. Innovation is. Higher spending is increased by 5 . Interestingly our consumer customers want to buy cars from Car Manufacturers who bring new technologies to market. We see today five areas of spending and patent fighting for Car Manufacturers and suppliers today
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