D R A F T

ACTION PLAN

BORDER ENERGY PROJECT

Project Goal

The goal of the Border Energy Project is to improve air quality on both sides of the United States/Mexican border by facilitating the use of cleaner fuels and energy efficient processes.

Barriers to Goal

A major barrier to the use of cleaner fuels and efficient energy processes is the lack of information that can be used to link providers of fuels and energy services with energy consumers. Free markets are dependent on such information and cannot be developed without a two-way flow of information between providers and consumers.

Approach to Overcoming Barrier

To overcome information barriers, the Border Energy Project will develop a Strategic Framework of actions to create information that will promote a robust market for energy strategies in the border region. The Framework will focus both on efforts to develop information sources and on institutionalizing a process for facilitating the ongoing exchange of information. The Strategic Framework will be developed as a Astraw proposal@ and will be submitted to focus groups of consumers and providers of energy services on both sides of the border.

Process for Developing Strategic Framework

A. Postulate three types of market information to support an efficient energy market in the border region:

(1) Case studies in energy efficiency and clean energy in the border region. The case studies will provide examples of investments that can be replicated in the border region. Providing energy service consumers and producers with examples of profitable investments in energy efficiency and clean energy is a proven technique for encouraging similar investments.

(2) Local energy profiles that provide information on energy conditions in specific border communities. Such local energy profiles are believed to be an effective means of identifying new investment opportunities to both energy service consumers and producers. Once identified, these opportunities would be pursued through normal business channels. The local energy profile information will include data on local energy demand, prices and distribution systems. More generic information on government energy policies in the border region, suggestions on successful ways of doing business in the border region, and information on project financing opportunities would also be included. The profile may include Internet links to other relevant data based on the SDSU survey of Internet sites.

(3) An Internet-based system to match energy service consumers who are interested in reducing their energy costs with energy service providers (a.k.a Adating service@). The use of the matching system would be triggered by an expression of interest by an energy service consumer. The Strategic Framework will be used to determine the desired level of information an energy service consumer needs to provide to trigger interest by energy service providers without placing a burden on the consumer or revealing any proprietary information.

These three approaches to expanding the use of clean energy and energy efficiency in the border region are not mutually exclusive and could be combined.

B. Conduct Feedback Seminars with energy service consumers and providers to determine the value of these three approaches

It is proposed that two Feedback Seminars be held with energy service providers and that a yet-to-be-determined number of Feedback Seminars will be held with energy service consumers. The Feedback Seminars would be limited to 15-20 people and may be held in conjunction with other meetings.

Feedback seminars would contain the following elements.

1. An overview of energy conditions in the border region, including expectations about future trends.

2. Specific case studies of investments in energy efficiency and clean energy in the border region will be presented as examples of the potential value of the case study approach. The selected case studies will be relevant to the participants in the Feedback Seminars (e.g., a case study of investment in a hospital facility will be presented to energy service consumers managing medical facilities). The case studies will describe projects that went to construction. Ideally, the managers of the facilities that are the subject of the case studies will participate in the Feedback Seminars and provide first-hand reports on their experience.

3. One example of a local area energy profile will be developed and presented to illustrate the potential value of the energy profile approach.

4. The potential characteristics of an Internet-based system for matching energy service consumers and providers will be presented along with examples of similar matching services in other fields.