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California desperately needs a strong plan of action to both slow
global warming and achieve immediate reductions in  smog and other
dangerous air pollutants.

The state of California is facing a public health crisis,
experiencing 14-24,000 premature deaths from air pollution yearly,
350,000 asthma attacks and 2 million missed school days from
children suffering asthma attacks, thousands of hospitalizations
and emergency room visits, and reduced lung function growth in
children.  Our water supply is always at risk.

We urge the California Air Resources Board to include a stronger
focus on measures to reduce emissions from driving that contribute
the largest percentage (approximately 30%) of greenhouse gases in
California.  The plan should include a much more aggressive
statewide goal for reducing vehicle trips and measures to promote
progressive action by local governments.  

One policy that can help us reach this goal is the implementation
of Pay As You Drive Auto Insurance which can reduce greenhouse gas
emissions from private motor vehicles in California by as much as
2.4%.  This figure is derived using a recent Brookings Institution
study which shows that PAYD can reduce VMT by 8% and the fact that
30% of California's greenhouse gas emissions result from the
private automobile. The Brookings Institutions conclusions about
PAYD insurance are:

"With insurance costs that vary with miles driven, we estimate
that drivers
nationwide would reduce miles traveled by an average of 8 percent.
To put that in
perspective, it would take a one dollar increase in the gas tax to
achieve an equivalent reduction in vehicle miles traveled (VMT). An
8 percent reduction in VMT would yield social benefits of $51.5
billion, largely from reduced congestion and accidents. It would
reduce carbon emissions by roughly 126 million tons per year,
which equals 8.4 percent of the carbon emitted by cars and trucks.
And PAYD can achieve these gains while actually reducing the cost
of driving for most drivers. Roughly two-thirds of households
would enjoy reduced premiums under PAYD, and the average savings
for those two thirds of households would be $270 per car per year,
equal to 28 percent of the average annual U.S. car insurance
premium." 

Pay-As-You-Drive Auto Insurance:
A Simple Way to Reduce Driving-Related Harms and Increase Equity
Jason E. Bordoff and Pascal J. Noel1
The Hamilton Project, The Brookings Institution
Preliminary Draft: April 17, 2008

We urge the California Air Resources Board to work with the
California Department of Insurance to implement Pay As You Drive
(PAYD) Automobile Insurance with odometer-based verification.    

The plan should also include additional strong regulatory measures
on industrial sources to reduce emissions form petroleum
refineries, power plants, cement manufacturers, and others
sources.

It is vitally important the plan demonstrate that the variety of
proposed measures will not only make rapid progress toward
reducing greenhouse gases, but will also  provide local benefits
to communities in terms of improved air quality and public health.


Thank you for your consideration of our concerns to strengthen
these key strategies in the AB 32 draft scoping plan.

Leonard Conly
Friends of Bus Rapid Transit
www.friendsofbrt.org
510-459-5841
1252 Gilman Street
Berkeley, CA 94706