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JPods Response to DA-FOA-0001669

DE-FOA-0001669: REQUEST FOR INFORMATION: SUPPORTING CLEAN ENERGY STARTUPS: INDUSTRY AND INVESTMENT PARTNERSHIPS FOR SCALING INNOVATION

The following response is provided to DE-FOA-0001669

Contact Information: JPods US LLCBill [email protected]

Response to Category 1: Clean Energy Deal Flow for Industry and Capital ProvidersCategory 4: Scaling from prototype to production

Conclusion: As soon as the Rule of Law is restored, capital will invest in the 10x cost savings, land use saving, accident savings, etc… of Personal Rapid Transit (PRT or podcar) networks. JPods recently signed an agreement for $293 million because the Performance Standards Law was adopted in China.

Summary:JPods recently signed an agreement for 2 billion Yuan in capital to build our solar-powered mobility networks in China. These networks build on the efficiency of freight railroads, the safety of the Morgantown Personal Rapid Transit Network and the on-demand service of the Internet.

JPods primary US patent is 6,810,817. We are going to build the Physical Internet®. JPods networks are overhead rails on which ultra-light vehicles move people and cargo non-stop from origin to destination using 1/10th the energy of highway and mass transit networks. Solar

Bill James (612) 414-4211 [email protected]

mailto:[email protected]

https://eere-exchange.energy.gov/#FoaId28a462dc-327b-4950-8add-7e34b6fdf5df


collectors mounted over the rails gather 40,000 vehicle-miles of power per mile of rail per day. The graph on the right showsMassachusetts DOT data on cost and pollution per passenger-mile for various modes.

As background, radically safer and more efficiency transportation networks are very well understood:

The 140,000 miles of freight railroads in the US average 476 ton-miles per gallon.

The suspended train in Wuppertal, Germany carries 25 million passenger/year with one fatal accident since it opened in 1903.

Approximately 294 million people visit theme park each year. Trill rides have 4.6 injuries per million people. In contrast highways kill 10.5 per hundred thousand.

The Personal Rapid Transit (PRT) network built in Morgantown, WV as a solution to the 1973 Oil Embargo has delivered 110 million oil-free, injury-free passenger-miles. In that same period 1.7 million Americans died on highways.

o Link to a 1977 video of the success of PRT. o Link to current summary of Morgantown PRT. Attachment 1 is a

letter from the Mayor of Morgantown of the efficacy of that network.

Congressional Office of Technology Assessment Study BP-244854 was published in 1974 on how Personal Rapid Transit networks can make American cities independent of foreign oil. PB-244854 warns:

Federally sponsored R & D has not included a coordinated program for conversion of successful products into operational systems.

UMTA's R&D programs [US DOT Urban Mass Transit Administration]... have neglected near-term ... simpler approaches to correct transit problems.

Finally, institutional failures may have hindered implementation.

This warning is why this RFI is issued. Know simple approaches have been blocked by Federal monopoly behaviors. Attachment 2 is a US Senate Letter from 1974 on the importance of PRT.

Explained in the following are:

At JPods, we have worked to deploy these networks since 1998. Here is a list of what we have learned in this 18-year effort relative to this RFI:


http://www.jpods.com/JPods/003LastOilCrisis/7503_LastOilCrisis.PDF


1. Examples of how unconstitutional Federal monopolies in communication, power and transportation infrastructure block Deal Flow, discourages Capital Partners, and stifles scaling efforts from prototype to production.

2. How the Performance Standards Law restores liberty to innovate sustainable transportation networks.

3. Why Liberty is the source of the “general welfare”.4. Why the Constitution forbids these Federal monopolies.5. Metrics that will help understand how ending the Federal transport

monopoly can repeat the success of ending the Federal communications monopoly.

JPods had to go to China and India to find governments that would allow free market solutions.

1. Examples of how unconstitutional Federal monopolies in communication, power and transportation infrastructure block Deal Flow, discourages Capital Partners, and stifles scaling efforts from prototype to production.

The Rule of Law is essential to innovation and the “general welfare”. Federalist #62, Madison:

"What prudent merchant will hazard his fortunes in any new branch of commerce when he knows not but that his plans may be rendered unlawful before they can be executed? What farmer or manufacturer will lay himself out for the encouragement given to any particular cultivation or establishment, when he can have no assurance that his preparatory labors and advances will not render him a victim to an inconstant government? In a word, no great improvement or laudable enterprise can go forward which requires the auspices of a steady system of national policy."

It is recommended to read Why Nations Fail, the Origins of Power, Prosperity, and Poverty by Daron Acemoglu and James Robinson. This book provides a rich history of how governments stifle innovation in the ways the Federal monopolies protected the rotary telephone for nearly a century and still protects the gas mileage of the Model-T from competition today.

Violating the Rule of Law, the Constitution prohibition against Federal “internal improvements” is explained in Section 3. This section summarized the consequences:

In 1918, Wilson monopolized communications and socialized power and transportation as “natural monopolies.” The near century of rotary telephones followed by the Internet and cell networks underscored how Federal monopolies coerced compliance with laws. Innovation is a


http://whynationsfail.com/

http://whynationsfail.com/


disruptive compliance failure. Violating their sovereignty, government monopolies stifle the creative destruction of innovations.

In 1935 FDR’s Rural Electrification Administration removed energy self-reliance as a market force. The entire distributed energy industry was wiped out, and 600,000 windmills were abandoned in favor of the coal-fired central grid.

Eisenhower’s Federal-Aid Highway Act of 1956 removed efficiency as a market force. The 476 ton-miles per gallon efficiency of freight railroads could not save them and nearly half were bankrupt and abandoned. Burning oil was made the lifeblood of America’s economy.

Rachel Carson’s book, Silent Spring, chronicles the Federal Department of Agriculture’s use of military weapons of mass destruction in its war on nature. (See Federalist #17 on how the lust for power would never extend to agriculture).

If companies as strong and well established as railroads and wind mill makers could not survive unconstitutional Federal polices, small innovative startups will be still born.

Climate Change, oil-wars since 1991, resource depletion (US Peak Oil was in 1970), oil-dollar funded terrorism, $20 trillion in Federal debt rising in tandem with oil imports, and America’s 48% dependence on foreign oil are examples of the Civilization Killers created by Federal violation of the “post Roads” and “harbors” restrictions in the Constitution. Here is a graph illustrating some aspects of why the near collapse of Sept 2008 will replay by about 2019. In the next collapse we are likely to see debts ability to buy foreign oil collapse into Oil Famine.

Life requires energy. Less energy, less life. As oil depletes, resources diminish, social stress causes resource wars as the Joint Forces warned all US military commands in the Joint Operating Environment 2010:


http://www.jpods.com/v2019


"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."

Forward by General James N Mattis

Syria provides an example of General Mattis’ warning. The long and fragile oil supply chain collapses into war when there is still a lot of oil.



2. How the Performance Standards Law restores liberty to innovate sustainable transportation networks.

Restoring the Rule of Law will support private capital to invest to convert current accident, pollution, and congestion costs into profits. Here are links to presentations to NJDOT and hearing with Boston City Council on the Performance Standards Law. Once this law is passed, private capital will invest as it has in China.

Following is the Performance Standards Law (passed as Secaucus, NJ Ordinance 2014-23 and Massachusetts Senate Bill #1837.

WHEREAS, Returning communication infrastructure to a free market in 1982 resulted in vast innovation, better service at lower costs and millions of jobs;

WHEREAS, Privately funded freight railroads average over 400 ton-miles per gallon efficiency;

WHEREAS, Establishing performance standards based on economic work accomplished per unit of energy consumed may allow free market solutions


https://malegislature.gov/Bills/189/Senate/S1837

http://www.jpods.com/secaucus_archive/A_SecaucusLaw2014-23.txt

http://www.jpods.com/secaucus_archive/A_SecaucusLaw2014-23.txt

http://www.jpods.com/bostoncitycounciloct5

http://www.jpods.com/nj35billion


that repeat communication infrastructure success in transportation infrastructure;

WHEREAS, the Congressional Office of Technology Assessment Study PB-244854 (1975) identified Automated Guideways and Personal Rapid Transit (PRT) networks as a solution to the 1973 Oil Embargo and the PRT network at Morgantown, WV has delivered 110 million oil-free, injury-free passenger-miles since starting service in 1975;

THEREFORE, BE IT RESOLVED,Non-exclusive access to City rights-of-way will be granted to transportation systems providers meeting the following free market principles:

(1) Privately funded construction, and

(2) Privately operated without government subsidies, and

(3) Exceed 120 passenger-miles per gallon, or equivalent efficiency, and

(4) Exceed safety performance of transportation modes already approved for use.

(5) Energy Diversification Option: Gather at least 2 megawatt-hours of renewable energy per typical mile of network per typical day.

THEREFORE, BE IT FURTHER RESOLVED, Regulation of free market innovations shall be based on:

(1) System design, fabrication, installation, safety, insurance, inspection practices shall be compliant with the ASTM International, Committee F24 on Amusement Rides and Devices, and

(2) Environmental approvals will be granted based on a ratio of energy consumed per passenger-mile of the innovation versus transport modes approved to operate in the rights-of-way, and

(3) All taxes and fees assessed on the transport systems providers, passengers and cargo shall be limited to 5% of gross revenues and paid to the aggregate rights-of-way holders by transportation systems providers.


http://www.astm.org/COMMITTEE/F24.htm

http://www.astm.org/COMMITTEE/F24.htm


3. Why Liberty is the source of the “general welfare”.

The "general welfare" is forged as two aspects of liberty intertwine in the Darwinian process of Creative Destruction:

1. Liberty is society’s tolerance of Disruptive Minorities. Disruptive Minorities offer society choices.

2. Wisdom from the Many sort choices offered in free markets. The aggregated wisdom of all of us, with each of us acting in our own self-interest, is wiser than the wisest of us at choosing between choices. Wisdom from the Many is repeatedly illustrated in the book, Wisdom of Crowds

4. Why the Constitution forbids these Federal monopolies.

In America, We the People replaced the Articles of Confederation with the Constitution to more effectively wage war.

Federalist #41 (Madison): “Security against foreign danger is one of the primitive objects of civil society. It is an avowed and essential object of the American Union.”

The Law of Nature is unlimited violence. The purpose of life is to live. Life requires energy. Life has a natural right to apply whatever violence it can to eat and not be eaten. Who eats lunch, and who is lunch, underscores the violent nature of life.

We humans are a slow, weak species. We form communities to more effectively gather energy to live and avoid being consumed. Thomas Paine summaries community and governments in the opening to Common Sense:

“Some writers have so confounded society with government, as to leave little or no distinction between them; whereas they are not only different, but have different origins. Society is produced by our wants, and government by our wickedness; the former promotes our happiness positively by uniting our affections, the latter negatively by restraining our vices. The one encourages intercourse, the other creates distinctions. The first is a patron, the last a punisher...”

We create governments to coerce compliance to law and wage war against foreign risks. The Articles of Confederation proved incompetent at waging war. In replacing the Articles of Confederation, we alienated from state governments the authority to wage war and concentrated that Monopoly of Violence in the Federal government. Madison outlines the powers granted the Federal government to wage war and mitigate the paths to war in Federalist #41:



“That we may form a correct judgment on this subject, it will be proper to review the several powers conferred on the government of the Union; and that this may be the more conveniently done they may be reduced into different classes as they relate to the following different objects:

1. Security against foreign danger;2. Regulation of the intercourse with foreign nations;3. Maintenance of harmony and proper intercourse among the States;4. Certain miscellaneous objects of general utility;5. Restraint of the States from certain injurious acts;6. Provisions for giving due efficacy to all these powers.”

To limit war, to limit men seeking to use war to expand their power by expanding Federal powers, we limited Federal sovereignty to the mission stated in the Preamble to “provide” for the defense of liberty. We restricted Federal taxing/coercion/violence to only “promote” welfare. We the People retained sovereignty over welfare. We document our sovereign rights to command our servants by the enumerated nature of the written Constitution, as amended by the process of Article 5. James Madison explained how we Divided Sovereignty, divided the monopolies of violence with Federal waging war and states punishing crimes and coercing compliance in civil disputes:

Federalist #45: "The powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the State governments are numerous and indefinite. The former will be exercised principally on external objects, as war, peace, negotiation, and foreign commerce; with which last the power of taxation will, for the most part, be connected. The powers reserved to the several States will extend to all the objects which, in the ordinary course of affairs, concern the lives, liberties, and properties of the people, and the internal order, improvement, and prosperity of the State."

The Preamble is reinforced by: Article 1, Section 8 “post Roads” restriction. See Sept 14, 1887 8 to 3

vote to restrict Federal infrastructure involvement. Read Federalist #9, #10 for why diverse state economies were to be the defense against Tyranny of the Majority. Tyranny of the Majority accounts for the failure to correct pollution, oil-wars, and debt. As a metric, a majority of voters are drivers willing to mortgage the liberty of their children for $60,778 for cheaper gasoline prices today.

Article 1, Section 9 “harbors” restriction. Amendments 9 and 10 of the Bill of Rights.

The Articles of Confederation were created in war to collectively apply the strengths of the independent state in waging war. The Articles proved incompetent in the Revolution at funding the Army and war effort. After the war,


http://www.tyrannyofthemajority.com/

http://www.jpods.com/dividedsovereignty


they proved incompetent at enforcing the Treaty of Paris, so British troops refused to leave America’s western territories.

They failed to suppress armed border disputes, import taxes between states, and skirmishes in Vermont’s secession from New York. They failed to suppress domestic insurrection in Shay’s Rebellion. Read Federalists #1-#36 for a litany of the Articles war-making defects and how the Constitution perfects war-making requirements.

Our nation, our community, is about our voluntary collaboration. Government is to monopolize violence, to coerce compliance with laws. We ratified the Constitution to perfect a government capable of waging war. To limit wars, we limited Federal sovereignty to the single task - to “provide” for the defense of liberty.

The Governing, our servants declared themselves superior to the Sovereigns by declaring a “Living Constitution.” To tax us in order to provide welfare, the Federal governing usurped powers not granted, unleashing the Federal nature for perpetual wars. Violating the Rule of Law, powers were usurped by Federal government by “providing” welfare in the form of “internal improvements.”

Here is a link to 5 Presidential vetoes that explains this aspect of the Constitution. Here is President Madison’s veto on Mar 3, 1817 of Federal taxing to build roads and canals:

“Having considered the bill this day presented to me entitled 'An act to set apart and pledge certain funds for internal improvements,' and which sets apart and pledges funds 'for constructing roads and canals, and improving the navigation of water courses' . . . I am constrained by the insuperable difficulty I feel in reconciling the bill with the Constitution of the United States to return it with that objection to the House of Representatives. The legislative powers vested in Congress are specified and enumerated in the eighth section of the first article of the Constitution, and it does not appear that the power proposed to be exercised by the bill is among the enumerated powers.”

As a consequence of Federal taxing to fund highway, the survival of America was subordinated to a foreign power, the 48% dependence on foreign oil. Here is a link to 8 Presidents declaring foreign oil an enemy to national security.

Illicit Energy is dependence on energy outside self-reliance. Federal support for Illicit Energy from foreign oil repeats the path to war of Federal support for slavery. Skirmish wars Iraq and Afghanistan are nearly identical to Bleeding Kansas in the building to the wider war warned of by the Joint Forces Command.


http://www.jpods.com/illicitenergy

http://www.cc.com/video-clips/n5dnf3/the-daily-show-with-jon-stewart-an-energy-independent-future

http://www.cc.com/video-clips/n5dnf3/the-daily-show-with-jon-stewart-an-energy-independent-future


5. Metrics that will help understand how ending the Federal transport monopoly can repeat the success of ending the Federal communications monopoly.

Restoring the Rule of Law. Ending the unconstitutional Federal communications monopoly resulted in millions of jobs created by private capital funding innovations in a free market.

That same success can be repeated by enforcing the Constitution in power and transportation infrastructure. Capital investment will flow to those who create 10x benefits. The scale of the opportunity is illustrated by following metrics:

Market Size:There are 140,000 miles of freight railroads in the US. Because of their efficiency, they will be the logistical arteries as US oil production depletes and gas prices rise. There are 2 million lane-miles of urban roads that the gasoline to power will become much less affordable. See gas price trend chart below. A rough guess is that about 500,000 miles of podcar networks (PRT) will be required in the next 15 years to be the logistical capillaries. At a cost of about $10 million per mile, this equates to a $5 trillion effort. Savings on a macro scale are:

Cut accidents in half, save $400 billion/year. Cut congestion by 90%, save $100 billion/year. Defund oil-dollar funded terrorism, cut defense spending by $300

billion/year. End dependence on foreign oil saves $140 billion/year.

If the Physical Internet could be built all at once, which they cannot be, these podcar networks would pay for themselves every 5 years. The 2010 independent audit of the Morgantown PRT networks show that it pays for itself every 5 years compared with buses.

Capital will invest in the Physical Internet for the same reasons it invested in the Internet and cell networks after the Rule of Law was restored in 1982. The profit opportunities are 10x.

Economic Work Per Unit of Energy Consumed


http://transportation.wvu.edu/r/download/69973




Here is a graph of costs and pollution per passenger-mile (repeated from above because it is so important).

There is a 10x cost to value in energy alone.

Parasitic Energy RatioA major problem waste of energy is moving 2 tons to move a person, 3 tons in passenger trains. Reducing the Parasitic Mass of the vehicle, removing the repetitive applications of power in start stops is what accounts for the 476 ton-mile per gallon efficiency of freight railroads, JPods, Hyperloop ,ET3 etc….

Per capita Energy Consumption

The average American uses 88.5 megaWatt-Hours of energy per year. The average German 47.2 megaWatt-Hours. In a free market, the extra energy required of Americans would be converted from costs to profits.

Disposable Energy How much energy people can afford to buy with their take-home-pay.



Land UseLand use per unit of economic work is important. Green space recovery can support urban food growth. Land use will be a reason for capital to invest in podcar networks.

Catalyst for Changing Energy SystemsTransportation has always been the catalyst for changing energy systems.

JPods networks gather 5 megawatt-hours per mile of rail per day, 40,000 vehicle-miles of power. This create a huge and stable market for solar collection and energy storage industries. No subsidies are need. Transportation costs savings pay for the energy collection system. Using the distributed nature of the transportation network to harvest the energy to power it, makes the transport network durable against power disruptions.



Following is a graph illustrating how railroads created a stable market and reduced the cost to ship oil and coal. This supported the extraction industries to grow.

Net EnergyThe Net Energy of oil is decreasing as it take more and more energy to get oil. JPods networks gather vast solar resources and use them where they are gathered. The Net Energy of solar is excellent.

Summary:

Once the Rule of Law is restored capital will invest in the 10x cost savings, land use saving, accident savings, etc…. JPods recently signed an agreement for $293 million because the Performance Standards Law was adopted in China.


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