www.JPods.com

Lexon & PhippsActionBy Feb 14, 2012, Simons and JPods deploy the world's first solar-powered mobility network between Lenox & Phipps Malls to create a "Kitty Hawk" scale understanding that Americans can create jobs and end oil addiction by innovating.

This project will underscore that 10x (ten times) efficiencies can be obtained through innovation. Small steps, relentlessly taken, can ac-complish much. Infrastructure shifts generally require a century. Oil deple-tions and unstable suppliers require reduce oil needs by 70% by 2020.

Supporting Documents• Draft LOI for a JPods Network

Ride Lenox Mall• 10x: A Transportation and Power

Infrastructure Economic Boom• Draft Resolution for cities to

declare a free market in trans-portation innovation.

Specific Tasks• Simons provides access to

property and moral support to deploy innnovation in the com-munity.

• JPods provides the capital and technology to deploy and oper-ate the network that provides a 10x efficiency gain.

BackgroundCommunications Infrastructure:Millions of jobs, vast innovation, bet-ter services at lower costs resulted after communications infrastructure was returned to free markets in 1984 because of 10x improvements. Long dormanent, much studied technolo-gies of the Internet and cell networks were able to commercialize

Before 1984, the choice of com-munications networks was centrally planned; the objective was consisten-cy. Competitors seeking AT&T/gov-ernment contracts concentrated their efforts on improving "know-how."

After 1984, liberty to choose net-works was returned to the people. Competitors seeking to attract customers had to differntiate them-self from their competitors, the focus became better "know-what." Com-petitors tried lower prices, better service and novel options. Niches were created. Innovations found small markets where profits could be made. Customer feed-back forged innovations into commercially viable products. Over a 15 year period ana-log networks were nearly competely displaced by the digital networks required to support the innovations customers now demanded.

A similar economic boom will result when the choice of transportation and

power networks are returned to free markets. As with JPods, Taxi2000, MisterPRT, ULTraPRT, VectusPRT, ET3, King Power Corp, etc..., there are vast technological innovations that cannont commercialize under government central planning.

Railroads:In 1865 it cost $1,000 to travel from New York City to San Francisco. In just 4 years, the building of the Transconinental Railroads, costs dropped to $67; a 15x cost benefit. Between 1860 and 1920 railroads' 15x cost shift was the catalyst for changing America's energy system from biofuels (hay and wood) to fossil fuels.

• Railroads created stable and consistent demand that allowed the fossil fuels industry to scale.

• Railroads cut the cost of trans-porting fossil fuels below the cost of harvesting local wood for energy.

Shift to a solar powered economy:Life requires energy.

• More efficiency, more life.• Deploying a solar powered mobil-

ity network at Lenox will begin the process of changing the lifeblood of our economy from oil to ingenuity.

It costs about 4 cents a mile to oper-ate a JPods vehicle versus 56 cents for a car. This 14x cost advantage will be the catalyst for changing energy systems from fossil fuels to solar. JPods need for solar collectors will create a stable market for solar capture industry to scale.

The shift from fossil fuels to solar is essential. Life requires energy. Oil is a finite resource. Life based on oil is terminal.

Oil as the lifeblood of our economy mandates that as oil prices increase, disposable income to support all other activities must decrease. Between 2002 and 2006 gasoline prices increased from $1.45 to $2.92 per gallon. This reduced disposable income per family by about $2,000 per year.

Families forced to choose between paying for their commute or their mortgage chose their commute. Foreclosures finally collapsed the banking system in 2008.

It is in the self-interest of everyone to act to deploy sustainable infrastruc-ture and maximize disposable in-come. Retailers will be most sensitive to decreases in disposable income from rising oil prices.

Proposal

JPods, Inc.www.JPods.comBill James612.414.4211bill.james@jpods.com

www.JPods.comObjective:

By 2020, live well and within a solar budget.

Problem: Moving a ton to move a person. We use 1,000 watt-hours per pas-

senger mile (trains, 890; planes, 950; cars 1033; buses, 1245) (32 mpg).

Solution:Move only the person. The 85% energy

saving pays for a transport paradigm shift and GHG reductions.

Execution:Physics: It costs less to move less.

Concept: Computer controlled, ultra-light JPods rail networks move people and cargo on-demand; a Physical-Internet; a circulatory system for an economic community.

Market Niche: On-demand mobility for highly repetitive, commuter-range transport of cargo and people.

Safety: 2,000 times safer than cars.

Emissions: Zero.

Congestion: Zero.

Jobs: 5 million jobs.

Service: On-demand mobility regardless of age, ability or wealth.

Disposable Income: Save working class families a car payment per month by reducing the number of cars required to commute to and from work.

Energy, passenger-miles/gallon: cars, 32, trains, 38, buses 27, JPods, 260.

Power: Solar collectors gather 8,000-30,000 vehicle-miles of power per mile of rail per day. Distributed trans-portation network harvests distributed natural power.

Funding: Construction privately financed. Payback of 1-8 years from 85% ener-gy savings and congestion relief.

Action: Contact JPods today. Together, by 2020,

we can displace 70% of repetitive urban oil-powered transport with solar-powered, on-demand mobility.

Counting ticketing, travel and walking time, from the Blue cross hair, Green areas are within 5 minutes, Yellow within 10 minutes and Red within 15 minutes. Bike and walking areas under JPods rails improve safety and access.

Problem:

Solution:

Contact us:

Start small

Iterate relentlessly

Lexon & Phipps

Mr. Bill James Aug 17, 2011PresidentJPODS, Inc.445 Iglehart AveSt Paul, MN 55103

Re: LOI for JPods Network Ride Lenox Mall

Dear Bill:

This letter of intent (“LOI”) is written to outline in broad scope the conditions and terms under which Simon Property Group, Inc. (“SIMON”) and JPODS, Inc. (“JPODS”) are willing to deploy a JPods Network between Lenox and Phipps. This LOI is a statement of intent. A binding legal agreement must be agreed to before installation. This letter intends to set forth the general parameters under which we will negotiate such an agreement JPODS.

1. SIMON has rights to real property in the City of Atlanta upon which the Lenox and Phipps Malls are located (“Property”). JPODS has created a solar powered personal mobility system and would like to construct a network (“JPods Network”) on the Property. The JPods Network would be operated as an amusement ride transporting riders at the Property, Exhibit A. SIMON would grant JPODS a non-exclusive, non-transferable license to use the Property for the construction and operation of the JPods Network, and for no other use.

2. The term of the license would extend from the date of the license agreement through three (3) year from the date of opening to the public. The anticipated opening date of the JPods Network is winter-spring of 2012.

3. As consideration for the license to use the Property, JPODS shall pay to aggregate rights of way holders, on a monthly basis, an amount equal to five percent (5%) of the gross revenues from the JPods Network operated on the Property. Gross Revenues as used herein means all revenues received from operation of the JPods Network, including but not limited to: (i) the total charges for admissions to the JPods Network or any portions thereof; and (ii) admission charges associated with private parties, corporate or special events on the JPods Network, whether on a per person basis or group charge.

4. If available, JPODS may operate a temporary retail location in the Property, selling retail merchandise associated with the JPods Network and JPods Network, and related merchandise, which merchandise would be further detailed by JPODS and approved by SIMON. SIMON would use commercially reasonable efforts to make a temporary retail space available to Tenant at a location determined by SIMON. JPODS shall execute a standard form temporary lease with only such alterations as are necessary to carry out the provisions of this Agreement within twenty (20) days of receipt of same from the SIMON. JPODS shall pay SIMON a rent to be negotiated with SIMON’s Temporary Leasing Agent after available space is identified.

5. JPODS hereby acknowledges and represents cost to construct and operate for one year at approximately $5 million for the short route (Gold in Appendix A) and $20 million for the long route (Green in Appendix A). As part of the formal contract, SIMON and JPODS will assure adequate funding is available for construction, operation and removal of the network prior to beginning construction.

6. JPODS would, at its sole cost and expense, submit to the SIMON architectural, engineering and all other plans, drawings and signage drawings for the JPods Network and JPods Network for the Landlord’s approval. After approval of such plans and drawings by the Landlord, and after approval by

the required government authorities as set forth in Section 7 below, JPODS would diligently and expeditiously construct the JPods Network on the Property according to such approved plans and drawings (“JPODS’s Work”) and complete same and open the JPods Network, fully fixtured and operational for business, to the public by the “Commencement Date”, as defined in the contract. After delivery of the Property by SIMON to JPODS, JPODS would thereafter diligently and expeditiously pursue construction and would be required to complete construction of the JPods Network within one hundred and eighty (180) days after delivery of possession (“Commencement Date”).

JPODS shall warrant to SIMON that all designs, plans, products, materials, labor and services, whether furnished by JPODS or others in the production, construction and assembly of the JPods Network will strictly conform to specifications, drawings, samples, or descriptions referred to herein or provided to SIMON and JPODS shall warrant that said designs, plans, products, materials, labor and services shall be free from defects or deficiencies, of merchantable quality and fit for the intended purposes specified herein. JPODS further warrants that the JPods Network shall conform to the A.S.T.M. Standards for Amusement Rides and be appropriately insured.

7. After approval of such plans by SIMON, JPODS would diligently and expeditiously apply for the required permits from the City of Atlanta (“City”) and other agencies. JPODS would submit detailed site plans and engineering drawings of the JPods Network and JPods Network, including existing and proposed construction and infrastructure plans for the development and planned improvements to the Property for approval by the City. It is the understanding of the parties that the City proposes to treat the JPods Network as an allowed accessory use within the current zoning. "Land use" approvals would be handled by staff as a "Staff approved site plan". Actual construction would be handled with a building permit. JPODS would submit detailed plans and other information to satisfy the City that the installation meets codes and is safe. The crossing of other rights of way would need a "Right-of-way Agreement", by those rights of way holders and include standard indemnification language and other items to protect those parties from liability. SIMON will encourage other rights of way holders to participate.

8. JPODS shall pay for all construction and development costs associated with the JPods Network and JPods Network, including but not limited to, any costs associated with: (i) development costs for the JPods Network, including utilities, government fees and professional review costs, etc. (ii) costs associated with changes to the Property, including the parking areas, all of which shall be restored to their original condition at the end of the license agreement; (iii) any structural reinforcements or enhancements required to the Property in connection with the JPods Network.

Prior to commencing any work on the Property, JPODS shall deliver a fully bonded guaranteed maximum price construction agreement/performance bond for the whole turn keyed completion of the JPods Network in form and substance, and from a general contractor reasonably acceptable to Landlord, guaranteeing the funding of the total cost of the JPods Network and such contractor’s irrevocable obligation to complete the JPods Network according to the relevant terms herein. JPODS shall also be required to provide a performance bond guaranteeing removal of the JPods Network at the end of the license agreement.

9. JPODS will fully insure, at its cost, all aspects of the JPods Network from commencement of construction activity on the Property through expiration of the license agreement against all liability, damage, perils and hazardous events of all sorts, including terrorism so long as available on commercially reasonable terms, and including liability for third parties liabilities, naming the Landlord as an additional insured and for amounts equal to full recovery for replacement cost, loss of income, in amounts not less than $5,000,000 per occurrence, incident or person.

10. In the event SIMON and JPODS agree to proceed, JPODS shall execute a License and Property Use agreement, and any ancillary, related documents required by SIMON, with only such modifications as necessary to incorporate the terms set forth in this proposal and as otherwise negotiated by the parties.

11. This Letter of Intent and the License and Property Use Agreement are contingent upon obtaining all necessary consents from third parties under the Reciprocal Easement Agreements and similar restrictive agreements governing the Property as well as obtaining any required government approvals and complying with all regulatory requirements. JPODS shall be responsible for any mitigation costs associated with obtaining said approvals.

12. SIMON and JPODS acknowledge and agree the purpose of this Letter of Intent is to build a solar powered ride at the Property, and until a formal contract is reached there is no binding commitment on the part of either party. JPODS must disclose in it communications to the general public, city officials, commercial allies and other that this effort is currently under a Letter of Intent not a binding contract. SIMON and JPODS will issue a press release on this LOI.

If the foregoing accurately reflects the basic terms and conditions upon which you would be willing to engage in negotiations as contemplated by this letter, please sign one copy of this LOI and return it to me as soon as possible. In accordance with the non-binding nature of this Letter of Intent, either party may notify the other party in writing, at any time, that it does not wish to proceed with any further negotiations.

Sincerely, Acknowledged: SIMON Bill James President JPods, Inc.

Signed: Signed: __________________________Date: June 30, 2010 Date: June 30, 2010

EXHIBIT “A”

Two route options, Gold and Green:

Gold Route displayed in 3D model:

10x: A Transportation and Power Infrastructure Economic Boom

CSX Railroad commercials note “Our trains move a ton of freight 423 miles on one gallon of fuel.” Yet, in cities, we move a person and light cargo about 97 times less efficiently. 10x, ten times better efficiency in urban transportation is practical if government returns transportation and power infrastructures to free markets governed by performances standards.

Railroads are commercial networks governed by performance standards, managed for profits. Highway networks are centrally planned by governments and made oil the lifeblood of our economy; created civilization killers of Peak Oil, Climate Change, debt, wars and oil’s Potato Famine potential (monolithic dependence on an energy source 65% outside our ability to control). Joint Forces Commands’ JOE-2010 warning to all US military commands:

"By 2012, surplus oil production capacity could entirely disappear, and as early as 2015, the shortfall in output could reach nearly 10 million barrels per day."

A two hundred year view of oil shows oil is a finite resource; life based on oil is finite.

Oil is finite, ingenuity is unlimited. Performance standards can change the lifeblood of our economy from oil to ingenuity in real time. In 1984 communications networks switched from centrally planned to free markets. In 15 years, analog networks, protected from competition for a century, were displaced by digital networks. Returning power and transport networks to free markets, granting rights of way based on performance standards, will change the lifeblood of our economy from oil to ingenuity, creating millions of jobs and providing better service at lower costs as competitors strive to convert 97 times less efficient into profits.

This paper outlines:● 10x, the target of performance standards.● 10x example.● Proposed performance standards for achieving 10x.● History of stagnation, central planning.● List metrics for achieving 10x.● Self-reliance, changing the lifeblood of our economy from oil to ingenuity

10x, the threshold for a paradigm shiftIn 1865 it cost $1,000 to travel from New York to San Francisco. Just 5 years later, in 1869, the cost dropped to $67, a greater than 10x cost reduction. Between 1850 and 1950 railroads were the catalyst for building of America’s manufacturing base and the shift in energy systems from biofuels to fossil fuels.

Millions of jobs, vast innovation, better service at lower costs resulted from 10x shifts in communications since 1984. In 1984 communications infrastructure management shifted from centrally planned under government managed monopoly to free markets governed by Performances Standards.

10x exampleIn 1975 a Personal Rapid Transit (PRT) network opened in Morgantown, WV as a solution to the 1973 Oil Embargo. It has since delivered 110 million injury-free, oil-free passenger miles. In that same period of time centrally planned highway networks have killed 1.3 million Americans with about 5 million injuries per year. This greater than 10x improvement in safety can extend to all costs. Using JPods version of PRT, people and cargo are chauffeured non-stop from origin to destination at about 4 cents per vehicle-mile. Cars cost about 56 cents per vehicle mile.

Efficiency is sufficient that solar collectors mounted over the rails gather 5,000 to 30,000 vehicle-miles of power per mile of rail per day. Electricity can be used as a transportation fuel. In the urban niche, the distributed nature of the transportation network can be used to gather distributed solar resources.

Between 1850 and 1950 railroads were the catalyst for changing energy systems. Once transportation and power infrastructures are returned to free markets governed by performance standards, once

customers make the choice of network, there will be an economic boom, American manufacturing will re-tool to fill demand and the energy system will shift from fossil fuels to solar for at least the urban market.

Performance StandardsThe re-tooling of communications infrastructure since 1984 has been dramatic. Millions of jobs were created, innovations inconceivable in 1984 continue to unfold, manufacturing of electronics has boomed.

Companies competing for customers in free markets must differentiate themselves from their competitors. Innovation, quality, service, speed and other factors aid in defining differences between competitors. By adopting performance standards, competitors and customers have a loose framework where resources from diverse companies combine and customers can quantify value. When a better “know-what” emerges to fit changing needs, customers want change and competitors scramble to find a fit within new performance standards.

Institutions in free and centrally planned markets strive for consistency, to improve “know-how”, to get better at what they do above all other objectives. In free markets, companies that are too locked into improving their “know-how” and fail to adapt to changes in customer wants fail and are displaced. Society benefits from this “creative destruction” as performance standards define options so people can choose what best meets their needs and wants. Markets nimbly adapt.

Specific Performance Standards recommended for re-tooling transportation and power are:● Privately fund innovation. This drives the hunt for 10x benefits. Customers will not re-tool their

buying patterns unless there are 10x benefits. The railroads were built with private capital, then supported with government backed bonds once they went into profitable service that achieved public policy objectives. The same is true for the Internet.

● As appropriate, use the government’s balance sheet back bonds that refinance profitably operating infrastructure that achieves public policy objectives. This allows private risk capital to be recycled to build more infrastructure.

● Set Performance Standards so they can be incrementally displaced by the next leap in performance standards.

● As a starting point, granting access to rights of way for alternative transportation networks that exceed 112 passenger miles per gallon.

● Regulate alternative transportation networks using the ASTMs and associated theme park regulations. Government Departments of Transportation are institutions that strive for consistency; innovation is a consistency aberration. Since 1950, DOT’s caused the loss of thousands of miles of railroads by subsidizing highways and oil, removing efficiency as a market force. The theme park industry has a strong record of safety and innovation. The theme park insurance industry is well established to enforce safety that exceeds that of highways by about 12,000 times.

History of stagnation, central planningThe US Constitution limits government institutions (Article X, Bill of Rights) so they insure liberty floats outside the “know-how,” the “creative destruction” of religions, free speach and free markets. Government institutions are to be limited to regulating commerce so all costs are capitalized, so those benefiting from an activity, fully pay for that activity; preventing socialized costs that benefit an elite and the expense of the general welfare.

It was very fortunate that the Bill of Rights was not part of the Constitution. The Federalist and Anti-Federalist Papers provide deep insight into balancing the need for government while usually limiting it abuse by malace and/or misplaced good intent. The Articles of Confederation proved to week. The Civil War was required constrain the power of states. This paper is about the problems created by the Federal Government encroaching, applying its institutions ever more deeply into commerce. As a metric,

Unfortunately, mobilizing to fight World War I the Federal government initiated a process that expanded control of the means of production, monopolizing/socializing communications, power and transportation infrastructures as “natural monopolies.” The great innovations of Ford, Edison, Bell and the Wright Brothers were institutionalized resulting in a century of improved “know-how” while stifling improved “know-what:” ● A century of rotary telephones and analog telephone

lines (until 1984). ● Climate Change: Socializing the cost of disposing of

fossil fuel waste.● War: Socializing the cost of defending oil supply

lines.● Debt: Socializing many of the costs of using oil.

Expanding size of government to manage transportation and power, taking away free market jobs and obligate debt and unfunded liabilities to the taxpayers.

● Oil’s Potato Famine potential: socializing the cost of weakening American self-reliance with oil addiction:○ Monolithic dependence on a source of energy 65% outside our control. ○ Depriving future generations of potential energy and critical materials.○ Net Energy, economically affordable oil will decrease about 80% in the next 20 years.

Metrics for achieving 10xWhat gets measured, gets done. Metrics that structure performance standards are:● Disposable Energy: Life requires energy. Less affordable energy, less life. More efficient use of

energy, more life. Disposable Energy Is peoples disposable income’s ability to buy energy. The following graph is a 50 year comparison of Economic Growth (blue) to Oil Supply Growth (green) to Disposable Energy (gold). Housing foreclosures, $13 trillion in falling property values, collapse of the banking system in 2008 are highly correlated with decreasing Disposable Energy.

● Economic Work: Economic work is what is accomplished per unit energy consumed. The following chart is DOT’s comparison of passenger miles per gallon with Performance Standard and JPods networks added. Multiple units are added. FTR is a ratio relative to the efficiency of a freight train moving a ton of cargo:

● Net Energy: Ratio of economically useful energy relative to the energy required to get energy. The higher the ratio, the more potent the energy source. Net Energy is like take-home pay, you can earn $50 an hour but if you have to pay $40 an hour in taxes it is not worth as much as at $20 an hour job with $5 an hour in taxes. Happiness is not about how much you make, it is about how much you keep:○ Oil in 1910 was about 100:1 and has depleted to about 10:1. We get about 10 useful

barrels of oil for every barrel consumed to get those 10 barrels.○ Wind is about 25:1. All costs are up front, but great take-home pay.

○ Solar is about 20:1. All costs are up front, but great take-home pay.○ Oil sand is about 3:1. ○ Oil shale is less than 3:1○ Biofuels are about 1.2:1○ Electricity is about .3:1 (electricity is a carrier, about 70% of energy required to produce

electricity is lost before being useful).○ Hydrogen is about .3:1 (hydrogen is a carrier, that consumes about 70% of the round trip

from primary energy source, to hydrogen to useful power).

Despite that it is easy to measure Net Energy, emotions, not logic dominates the treatment of energy sources. ○ Biofuels receive billions of dollars in subsidies even though it takes about a gallon of fossil

fuels to make a gallon of ethanol. Without government mandates, no customers would buy ethanol. Biofuel is like trying to make the sun useful by shoving it through a corn cob.

○ Oil sands and oil shale are grouped with conventional oil despite the fact they have radically less Net Energy.

○ Solar and wind are discounted as unusable by energy experts. Solar does not support central planners notions of energy. Solar is like the Internet, cell phones, Google and Facebook, a distributed system. The sun has a long history of supporting life on Earth. American liberty and self-reliance were founded under a solar budget. The US economy was absolutely solar powered until 1850 and fundamentally solar powered until about 1950. About 90% of the oil used in all human history has been used since 1950. The Net Energy of solar and wind underscore Thomas Edison’s 1910 and 1934 observations:■ 1910 (full quote): "Sunshine is spread out thin and so is electricity. Perhaps they are

the same, Sunshine is a form of energy, and the winds and the tides are manifestations of energy.”

“Do we use them? Oh, no! We burn up wood and coal, as renters burn up the front fence for fuel. We live like squatters, not as if we owned the property.”

“There must surely come a time when heat and power will be stored in unlimited quantities in every community, all gathered by natural forces. Electricity ought to be as cheap as oxygen...."

■ 1934: "I'd put my money on the sun and solar energy. What a source of power! I hope we don't have to wait 'til oil and coal run out before we tackle that."

Self-reliance, changing the lifeblood of our economy from oil to ingenuitySelf-reliance is the solution. Oil’s limitations cannot be fixed by conserving, electric cars, high speed trains or the use of any of the artifacts of the oil-powered economy. Electric cars have a larger carbon-footprint than diesel cars; electric trains use more energy per passenger mile than airplanes. Biofuels burn food in cars at less than 1% efficiency. Government management of the means of production directs billions of dollars to produce without solving the problem. They mandate products that few customers would buy.

To innovators waste is potential profits that can be recovered by delighting customers by preempting waste. As waste is recovered as profits, the causes of civilization killers are preempted. There are amazing profits in powering transportation within a solar budget.

It normally requires 100 years to transition a major infrastructure, we have to make the transition by 2020 to something unknown. We have faced this challenge before. Here is a quote from Thomas Paine’s Common Sense with oil being substituted for Great Britain:

The authority of Great Britain (oil) over this continent, is a form of government (energy), which sooner or later must have an end: And a serious mind can draw no true pleasure by looking forward, under the painful and positive conviction that what he calls "the present constitution" is merely temporary. As parents, we can have no joy, knowing that this government (oil) is not sufficiently lasting to ensure any thing which we may bequeath to posterity: And by a plain method of argument, as we are running the next generation into debt, we ought to do the work of it, otherwise we use them meanly and pitifully.

A child born today has a $46,000+ share of the National Debt and a million dollar obligation to unfunded liabilites. Continued dependence on oil passes the burden of innovating to our children as we deplete the energy to make the transition.

Performance Standards, granting rights of way to privately funded transportation networks that exceed 112 passenger miles per gallon does not solve our current problem. Performance Standards simply permit innovators to innovate.

Unleashed, innovators will create choices and people to choose from those choices what meets their needs, driving innovators to refine, and extend choices. Adapting becomes nimble. Like communications since 1984, the reality of the change will far exceed what was planned. We can be self-reliant, change the lifeblood of our economy from oil to ingenuity.

Background:

Mobilizing to fight World War I, communications, power and transportation infrastructures were monopolized/socialized as “natural monopolies. The great innovations of Ford, Edison, Bell and the Wright Brothers were leveraged and institutionalized. The unintended consequences are a century of rotary telephones, the gas mileage of the Model-T, loss of thousands of miles of railroads, oil was made the lifeblood of our economy, debt growth that matches oil import growth.

In 1984 communications infrastructure management shifted from central planning to being governed by performance standards. Millions of jobs, vast innovation and better service at lower costs resulted. When power and transportation infrastructures shift to being governed by performance standards there again be millions of jobs, vast innovation and better service at lower costs.

Key Points to allow transportation and power infrastructure innovation:

NOW, THEREFORE, ____City _____, by virtue of the power invested by the Constitution and the statutes of the ____City _____, does hereby order effective immediately:

• The ____City _____ will grant access to rights of way based to transportation networks that:• Exceed 120 passenger-miles per gallon efficiency (or equivalent).• Privately capitalize construction.• Privately insure the safe use of the networks.• Regulate and insure based on well established ASTM’s and safety standards/practices of the theme park

industry. (Well established industry with very high safety record)• Pay 5% of gross revenues to the aggregate rights of way holders.

• The ____City _____ will coordinate with other users of rights of way.• The City's transportation authority will accept proof of insurance as proof of compliance with regulations in the

manner that theme parks are regulated.• The City’s environmental protection authority will assess environmental impacts based on a ratio of energy

savings compared to approved modes of transportation. (Example: 50% less energy per passenger mile than cars will be assessed as twice as good for the environment over cars).

• The City’s economic development authority will facilitate capital practices that encourage private funding of networks that achieve public policy objectives. This could include use of Private Activity Bonds from DOT.

Draft Resolution modeled after California’s Hydrogen Highway Executive Order:

Resolution / Executive Order on Transportation Performance Standard

WHEREAS, transportation networks are the circulatory system of our economy, essential to the general welfare and common defense; and

WHEREAS, personal, on-demand mobility is an aspect of liberty, mobility facilitates freedom of speech and freedom of association, mobility accesses opportunities in the pursuit of happiness; and

WHEREAS, freight railroads sets a sustainable energy efficiency standard of moving goods at 436 ton-miles per gallon of fuel; and

WHEREAS, freight rail's long history of being 97 times more efficient than highway networks, sets a practical standard for potential improvement in transportation energy use and environmental stewardship; and

WHEREAS, highway networks do not provide equal access to mobility to all taxpayers, discriminating against those under 16 years old or do not have privileges to drive a car, those who cannot afford car payments, elderly and others disabled from owing or operating an automobile; and

WHEREAS, in New York City the typical family has an additional $2,500 of disposable income because of 31% access to transport as a service (transportation costs are reduced from $10,300 to $7,800, http://www.nhc.org/pdf/pub_heavy_load_10_06.pdf); and

WHEREAS, centrally planned highway networks result in automobile accidents with yearly costs to the US economy of $162 billion and about 40,000 deaths (AAA); and

WHEREAS, centrally planned highway networks result in automobile congestion with yearly costs to the US economy $87.2 billion (Texas Transportation Institute); and

WHEREAS, highway networks have not been sustainability maintained as indicated by a "D" rating by the American Society of Civil Engineers; and

WHEREAS, the Transcontinental Railroad was constructed with private capital during and after the Civil War, providing a precedent for implementing large infrastructure projects without direct use of government funds (government backed bonds were used to lower the interest rates but selling and paying bonds were the responsibility of the builders); and

WHEREAS, the 1984 shift from government central planning of communication infrastructure to governing by performance standards resulted in private capital rapidly re-tooling infrastructure while creating millions of jobs, vast innovation, better service and lower costs; and

WHEREAS, there are unexploited alternatives to providing transportation as a service that can be privately financed,

• Congressional Office of Technology Assessment study PB-244854 identified Automated Guideways and Personal Rapid Transit as a means to make US cities independent of imported oil after the 1973 Oil;

• The Personal Rapid Transit network at Morgantown, WV has provided 110 million injury-free, oil-free passenger miles since opening in 1975; and

WHEREAS, government centrally planned transportation infrastructure has resulted in a monolithic dependence on oil and the highway network that threaten national security:

• Oil imports increasing from 20% in 1973 to 65% in 2010 despite eight Presidents declaring imported oil a threat to national security.

• National and local government debt rapidly expanded when defending oil supply chains, infrastructure and oil costs were socialized instead of capitalized into the price of gasoline.

• Loss of about $2,000 of disposable income per working class family as gasoline prices increased from $1.45 in 2002 to $2.92 in 2006. As more and more families were forced to choose between pay for their commute and mortgage, foreclosures exposed flaws and collapsed the banking system.

• Loss of thousands of miles of railroads despite the fact that freight-rail averages 436 ton-miles per gallon. • There is no significant efficiency difference or environmental damage between any government approved

mode of transportation (DOE, http://cta.ornl.gov/data/chapter2.shtml): ◦ Automobiles: 34 passenger-miles per gallon (electric or gasoline), 97 times worse than freight-rail. ◦ Buses: 27 passenger-miles per gallon, 21% worse than cars, 117 times worse than freight-rail. ◦ Commuter rail: 38 passenger-miles per gallon, 12% better than cars, 83 times worse than freight-

rail. ◦ Energy waste results from moving parasitic mass (mass not cargo or passengers) and repetitive

start-stops (applications of power). GHG production is roughly equivalent to energy consumed. No government approved mode of transport substantially improves efficiency, reduces GHG production or mitigates climate risks.

• and;

WHEREAS, significant risk of global resource war and $27-$57 trillion of investments and costs will be required to sustain oil-based transportation globally through 2020; andDetails:

• In Feb 2010 the US Joint Forces Command issued the Joint Operating

Environment 2010 warning to all US military commands:

"By 2012, surplus oil production capacity could entirely disappear, and as early as 2015, the shortfall in output could reach nearly 10 million barrels per day."

"A severe energy crunch is inevitable without a massive expansion of production and refining capacity. While it is difficult to predict precisely what economic, political, and strategic effects such a shortfall might produce, it surely would reduce the prospects for growth in both the developing and developed worlds. Such an economic slowdown would exacerbate other unresolved tensions, push fragile and failing states further down the path toward collapse, and perhaps have serious economic impact on both China and India. At best, it would lead to periods of harsh economic adjustment. To what extent conservation measures, investments in alternative energy production, and efforts to expand petroleum production from tar sands and shale would mitigate such a period of adjustment is difficult to predict. One should not forget that the Great Depression spawned a number of totalitarian regimes that sought economic prosperity for their nations by ruthless conquest."

"Energy production and distribution infrastructure must see significant new investment if energy demand is to be satisfied at a cost compatible with economic growth and prosperity."

"The discovery rate for new petroleum and gas fields over the past two decades (with the possible exception of Brazil) provides little reason for optimism that future efforts will find major new fields."

• International Energy Agency (to which under treaty, the US has pledged the Strategic Petroleum Reserve) in the World Energy Outlook 2009 and 2010 note (http://www.worldenergyoutlook.org/docs/weo2010/key_graphs.pdf ):

◦ "The world's energy system is at a crossroads. Current global trends in energy supply and consumption are patently unsustainable - environmentally, economically, socially."

◦ "What is needed is nothing short of an energy revolution." ◦ Current oil fields are depleting at 6.7% per year. ◦ Maintaining access to fossil fuels will requires investments through 2030 of $26 trillion ($18 trillion

applied to the 2020 estimate). ◦ Clean-up from use of fossil fuels requires an investment of $45 trillion through 2050 ($22.5 trillion

applied to the 2020 estimate). ◦ Economies depend on oil "fields yet to be developed" and "fields yet to be found". ▪ Shifting transportation infrastructure such as railroads, highways requires about 50 years. ▪ In 25 years known sources of oil supplies will drop from 74 to 18 million barrels per day. ▪ The drilling moratorium after the BP Gulf Spill of 2010 will likely delay oil from "fields yet to

be found" and "fields yet to be developed."

• Congress created the National Surface Transportation Policy and Revenue Study Commission to report on "the surface transportation system to meet the needs of the United States for the 21st Century" (http://www.transportationfortomorrow.org):

◦ Total highway expenditure needs are estimated at $4.9 trillion through 2020; $10.0 trillion through 2035; and $18.3 trillion through 2055, stated in constant 2005 dollars.

◦ Total transit needs on a cumulative basis in constant 2005 dollars are estimated to be $1.1 trillion through 2020, $2.4 trillion through 2035 and $4.4 trillion through 2055. These estimates are the sum of the constant dollar estimates for each year.

◦ An increase in fees of about $0.71 per gallon of gas. • The US consumes approximately $600 billion of oil year (20 mbd at $80 per barrel) or $6.5 trillion through

2020. • Changing the US automobile fleet to more fuel-efficient cars requires an investment of $4 trillion (200 million

cars at $20,000 each).

WHEREAS, most breakthrough innovations (examples: manned flight, personal computer, home Internet, laser data storage devices, penicillin, vulcanized rubber, cell phones, Google) were not planned under government regulations or funding, but evolved from unsanctioned, privately funded entrepreneurs; and

WHEREAS, a ten times improvement in transportation efficiency would result in millions of jobs, vast and unexpected innovations, better service at lower costs and a cleaner environment;

NOW, THEREFORE, ____City _____, by virtue of the power invested by the Constitution and the statutes of the ____City _____, does hereby order effective immediately:

• The ____City _____ will grant access to rights of way based to transportation networks that:• Exceed 120 passenger-miles per gallon efficiency (or equivalent).• Privately capitalize construction.• Privately insure the safe use of the networks.• Regulate and insure based on well established ASTM’s and safety standards/practices of the theme park

industry. (Well established industry with very high safety record)• Pay 5% of gross revenues to the aggregate rights of way holders.

• The ____City _____ will coordinate with other users of rights of way.• The City's transportation authority will accept proof of insurance as proof of compliance with regulations in the

manner that theme parks are regulated.• The City’s environmental protection authority will assess environmental impacts based on a ratio of energy

savings compared to approved modes of transportation. (Example: 50% less energy per passenger mile than cars will be assessed as twice as good for the environment over cars).

• The City’s economic development authority will facilitate capital practices that encourage private funding of networks that achieve public policy objectives. This could include use of Private Activity Bonds from DOT.

IN WITNESS WHEREOF I have here unto set my hand and caused the Great Seal of the _________________ to be affixed this the first day of ____Mon___ ___Year____.