3:30 pm Mix & Mingle 4:00 pm Call to Order Aart de Geus, Chair

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1 224 Airport Parkway, Suite 620 San Jose, California (408) Fax (408) CARL GUARDINO President & CEO Board Officers: AART DE GEUS, Chair Synopsys TOM WERNER, Vice Chair SunPower MICHAEL SPLINTER, Past Chair Applied Materials, Inc. WILLIAM T. COLEMAN III, Past Chair Cassatt Corporation ROBERT SHOFFNER, Secretary/Treasurer Citibank Board Members: JOHN ADAMS Wells Fargo Bank SHELLYE ARCHAMBEAU MetricStream, Inc. RICHARD BAIRD IBM Corporation MARY ANN BARNES Kaiser Permanente NED BARNHOLT KLA-Tencor GEORGE BLUMENTHAL University of California, Santa Cruz TOM BOTTORFF Pacific Gas & Electric RAMI BRANITZKY SAP Labs North America TORY BRUNO Lockheed Martin Space Systems Company DAVID DEWALT McAfee, Inc. RAQUEL GONZALEZ Bank of America TIM GUERTIN Varian Medical Systems JON HOAK Hewlett-Packard Company MIKE KLAYKO Brocade Communications Systems PAUL LOCATELLI, S.J. Santa Clara University TARKAN MANER Wyse Technology LEN PERHAM Monolithic Systems KIM POLESE SpikeSource, Inc. WILLIAM E. RHODES III BD Biosciences ABHI TALWALKAR LSI Logic MAC TULLY San Jose Mercury News DAN WARMENHOVEN NetApp, Inc. KENNETH WILCOX SVB Financial Group Working Council Chair VICTOR M. ARRAÑAGA, JR. Applied Materials Established in 1978 by DAVID PACKARD Silicon Valley Leadership Group Annual Membership Meeting Preliminary Agenda SAP 3410 Hillview Avenue, Building 1 Palo Alto, California Thursday, December 10, :30 pm Mix & Mingle 4:00 pm Call to Order Aart de Geus, Chair Housekeeping Introductions Approval of September Quarterly Board Meeting minutes Company Activation Rosters Annual Luncheon 2010 Sign ups Turkey Trot Presentation Mike Splinter & Carl Guardino 2010 & 2011 Board meeting dates Some Hosts needed Nominations Committee Report Tom Werner, Vice Chair New Officers for Tom Werner, SunPower Mike Klayko, Brocade Board Terms: Re-election for two year terms New Working Council Officers: LEADERSHIP GROUP PRIORITIES (Vision, Mission & Action) Return on Investment Report and Work Plan Education: Energy: Environment: Health: Tax Policy: Federal Issues: Priority Setting: Dot Exercise/Name Tag Exercise Financial Report 2009 Year to Date/2010 Budget Approval President's Report Carl Guardino Land Use & Housing: Transportation: Government Relations: Communications: Membership: REAL Coalition: Washington, DC Trip, May 2010 CEO Survey of Business Climate in Major Events Calendar Circulate for sponsorship Human Face Campaign Update Annual Awards President s Award & Working Council Chair Award Final Dot/Name Tag Exercise and Results Policy Discussion and Action Open Primary Ballot Measure: June :30 p.m. Adjournment to Reception for Elected Officials

2 SILICON VALLEY LEADERSHIP GROUP QUARTERLY BOARD OF DIRECTORS MEETING MEETING DETAILS: Thursday, September 10, 2009 San Jose Mercury News 750 Ridder Park Drive San Jose, California NEXT MEETING DETAILS: Thursday, December 9, 2009 SAP 3410 Hillview Avenue, Building 1 Palo Alto CA Board Members and CEOs Present John Adams, Wells Fargo Luis Aguirre-Torres, Green Momentum Andy Ball, Webcor Ned Barnholt, KLA Tencor George Blumenthal, UC Santa Cruz Tom Bottorff, PG&E Teresa Briggs, Deloitte Tory Bruno, Lockheed Martin Space Systems Michael Cubbin, DeVry University Aart de Geus, Synopsys Carl Guardino, SV Leadership Group Sandeep Duggal, Extron Logistics Gary Fazzino, Applied Materials Kim Fennell, DeCarta Tom Hayse, ETM-Electromatic Inc. Jon Hoak, Hewlett-Packard Hannah Kain, AON Chuck Kissner, Harris Stratex Networks Other Guests: Donna Blitzer, UC Santa Cruz Brian Brogan Larry Carr, San Jose State University Robert Hertzberg, California Forward Jim Mayer, California Forward Jim Parker, SunPower Staff: Shiloh Ballard Teresa Barnea Brian Brennan Dennis Cima Bena Chang Phyllis Claassen Gavin Douglas Rasha El Sayed Mike Klayko, Brocade Bill Lipsin, CA, Inc. Rob Liszt, PMC-Sierra Ken McNeely, AT&T William Meeker, Palmer Chiropractic Gary Pinkus, McKinsey & Company, Inc. Kim Polese, Spike Source Rami Branitzky, SAP Harry Sim, Cypress Envirosystems Pat Splinter, VantagePoint Venture Partners Ron Storn, Targus Human Capital Partners Mac Tully, San Jose Mercury News Tom Werner, SunPower Jon Whitmore, San Jose State University Jed York, San Francisco 49ers Joann Zimmerman, Surgery Center Partners Stacy Rue, Lockheed Martin Space Systems Sherri Sager, Lucile Packard Children's Hospital Steve Rubin Kirk Everett Bob Hines Emily Lam Justin Marlaire Mike Mielke Peter Skinner Anne Smart Ashley Smith Steve Wright

3 I. HOUSEKEEPING CONTEXT OF LEADERSHIP GROUP: VISION/MISSION/PRIORITIES Welcome and introductions were led by Aart de Geus, Synopsys, and an overview of the architecture of the organization was presented. Nominations Committee Tom Werner, SunPower presented three nominations to the board. 1. Ken McNeely, AT&T 2. Alan Salzman, Vantage Point - Venture Partners 3. Don Bell, Bell Microproducts Robert Shoffner made a motion to approve. Tory Bruno seconded. The motion was passed unanimously. Watering Hole Events: Guardino reviewed the upcoming networking opportunities. CEO Dinners 9/16 Werner, SunPower (lunch) 9/29 Splinter, Applied Materials 9/30 Hagerty, Polycom 10/13 Whitmore, San Jose State University 10/28 Cubbin, DeVry University II. ECONOMIC COMPETITIVENESS California s Future Governance and Tax Reform Guardino introduced the topic and speakers, Jim Mayer and Robert Hertzberg, California Forward. Hertzberg spoke to the reforms that are being presented as initiatives on the November 2010 ballot. Discussion followed. Guardino outlined the process. Presentations have now been made to the Government Relations Committee, Working Council and the Board. Specific recommendations will be vetted by the committee structure and returned to the Board for further consideration when more details of the ballot measure language become available. The roots of the architecture must be addressed. What should the SVLG engagement be in this process? Last fall, the Leadership Group supported the work of California Forward on term limits. Federal Issues Mike Klayko, Brocade, joined the meeting by phone and presented on the Deferral of Foreign Earnings. Right now the emphasis is on health care reform in Washington, and piecemeal attempts to use deferral to pay for other national priorities is off the table for now. Tax increases, such as the repeal of deferral will have a tremendous impact on U.S. competitiveness and the ability to create jobs.

4 Another CEO trip to Washington is scheduled for September Along with San Jose Mayor Chuck Reed, the group will visit legislators regarding the tax deferral on foreign income and BART funding. Energy Data Center Efficiency Bob Hines presented a report on our upcoming Data Center Energy Summit, a signature event featuring demonstration projects of commercially available technologies. PG&E provides rebates on this investment. Sponsors and hosts are set. The date is October 15. He encouraged CEOs to send their IT people to the event. US Cap Tom Bottorff, PG&E presented the action request: Leadership Group support for key objectives to be incorporated in any legislative solutions, including cost containment to cap CO2 emissions. The burden should not fall on any one contributor. There are many ways to offset the production of CO2 including clean tech investment. We need to provide international leadership on this issue. George Bluementhal made a motion of support. Luis Aguirre-Torres seconded. The motion was passed as presented. III. SILICON VALLEY ECOSYSTEM Math Initiative Richard Baird, IBM was ill. Kim Fennell and Dennis Cima presented an update on successes to date; lessons learned; and future direction. This is the third year of the program. Over 185 teachers have been trained. Trainers have been retained. There is ownership of the program in the districts. The Leadership Group is looking toward the transfer of leadership. Fennell led discussion about what next steps should be taken by the Leadership Group. What options are available for science training for teachers? We need to evaluate the effect on students before moving into science and watch out for doing a lot of things a little bit. 49ers Stadium Plans Jed York, SF 49ers presented a video animation of the stadium plans. He presented a brief update on negotiations with the City of Santa Clara. The terms have been accomplished. It will be on the ballot in IV. VALUE ADD Bay Area Climate Collaborative Richard Lowenthal, Coulomb Technologies spoke on the Electric Vehicle Initiative. He presented an update on climate change and what the Collaborative is working on. The next meeting will be held at Leadership Group offices on September 18. Membership Bill Lipsin, CA, led a review of members, and a discussion of opportunities and linkages to potential members. He requested two contacts from each member for follow-up on potential membership. Budget Q-3 Financial Report (7 minutes) Robert Shoffner, Citibank

5 Report on the budget year to date. Need to hit targets on special projects, annual lunch and membership dues to balance the budget. We currently face a $50,000 shortfall. VI. PRESIDENT'S REPORT Carl Guardino 5 th Annual Applied Materials Silicon Valley Turkey Trot on Thanksgiving Day Projections 2010 Conference on September 16 at Santa Clara University Health Care Event on September 18 at Intel; How will policy affect your company? Small business? Silicon Valley Lifetime Achievement Award Deadline for nominations DC-CEO Advocacy Trip II: September (a follow-up to the May trip) VIP Program Recent retirees are invited to participate. Guardino thanked Mac Tully and the San Jose Mercury News for hosting today s meeting. There being no further business, the meeting was adjourned at 10:17 am.

6 2009 Return on Investment and Work Plan EDUCATION & WORKFORCE 1 ENERGY.. 8 ENVIRONMENT. 13 FEDERAL ISSUES 19 GOVERNMENT RELATIONS.. 23 HEALTH POLICY 28 LAND USE & HOUSING.. 30 MEMBERSHIP 36 REAL COALITION. 39 TAX POLICY.. 41 TRANSPORTATION. 45

7 EDUCATION & WORKFORCE PREPARATION Mission: To promote and champion innovative solutions through partnerships with local, state, and federal decision makers, which ensure that the educational system in California and Silicon Valley produces world class graduates and fosters academic excellence and high quality instruction, particularly in mathematics and science. Specifically, the Education Committee seeks to assist local school districts and higher education institutions to improve student achievement by focusing on the following goal areas: Math and Science Achievement: Increase the number of Silicon Valley students that are prepared for the 21st century workforce through efforts to improve math and science achievement Professional Development and Credentialing: Increase and improve professional development in Silicon Valley to ensure that educators have 21st century skills for the classroom; and advocate to improve the methods by which educators can become highly qualified practitioners Outreach and Advocacy: Inform internal and external stakeholders and policymakers through collaboration, advocacy and outreach that a quality, accessible and affordable education system ensures that Silicon Valley and California can remain competitive in the global marketplace ACCOMPLISHMENTS Goal Tactic Accomplishments Ensuring Quality Teacher Professional Development; Improving Student Achievement in Math Middle School Math Initiative Completed the training of 62 local teachers in Year 2 (2008-Feb 09) of the math training Commenced the training of 85 additional Silicon Valley teachers for Year 3 (2009) Successfully retained six master trainers to deliver the course content; continued to fund two additional trainers in a self-contained pilot program in the Fremont Unified School District; developed additional self-contained units in Santa Clara and Alum Rock 1

8 Ensuring Quality Teacher Professional Development Secured 35 out of 35 Leadership Group sponsors Continuing qualitative analysis of program with results delivered by the end of 2009 Secured a $75,000 grant from the Silicon Valley Community Foundation to support the program Began the process of developing a strategic plan for IISME Program Continued supporting Industry Initiatives for Science and Math Education (IISME). 120 IISME teacher fellows placed in local companies last summer; 107 from Leadership Group members. 24 Leadership Group companies hosted the fellowships; an additional seven provided financial support Provided support to IISME with press outreach; provided exposure to the program in Leadership Group venues including the Projections report and the CEO Show. Staff serves on the IISME Board of Directors and the Executive Advisory Board Workforce Development SVWorks Provided coordination and support for the Assembly Select Committee on Community Colleges to highlight the Leadership Group and region s work in green tech jobs during a statewide hearing in Sacramento Staff continues to participate in regional workforce working groups and sits on the local workforce investment board, NOVA. Public Policy / Advocacy Advocacy Continued engagement in statewide P-16 Council and participated on statewide workgroup on improving school relevancy for high school students. Advance Early Childhood Education Agenda / Engage Business Community Advocacy Played a lead role in statewide business advisory council to improve Pre-K policy in California Developed Pre-K legislative platform as part of advocacy efforts Secured grant funding from the Packard Foundation to provide support to business advisory council and Leadership Group s Pre-K efforts Organized and hosted a regional roundtable that included business, industry, education and community stakeholders on the status of early childhood education programs in the region and the strategies needed to help close the 2

9 Member Company Engagement / Elected Officials achievement gap Staff participated on various panels for regional and statewide early childhood education conferences Advocacy / Forum Organized and hosted a regional forum on education featuring Lt. Governor John Garamendi, which included educational and business leaders 3

10 WORK PLAN EDUCATION & WORKFORCE Description Cost Rank LR Champion Executive Champion Jocelyn Zona, IBM Richard Baird, IBM Math Initiative Silicon Valley: A Laboratory for Learning The Leadership Group envisions that all Silicon Valley students successfully complete Algebra by the 8 th grade. To assist schools, the organization will continue to implement its math initiative, Silicon Valley: A Laboratory for Learning. Activities will include: Serve at least 100 additional teachers in the 2010 program year Secure at least 45 member company pledges for Laboratory for Learning; seek additional avenues for member company support (volunteer trainers, equipment, in-kind donations, etc.) Where possible, migrate training to strategic partner school districts to run programs at individual districts Retain current cohort of trainers; secure additional trainers as program expansion requires Continue to gather data on teacher outcomes and report back to members Develop a strategic plan for the math initiative; where appropriate and strategic, partner with local organizations like the Silicon Valley Education Foundation, the Silicon Valley Community Foundation, and Joint Venture Silicon Valley to expand enrichment options for teachers and students Explore, as part of the strategic planning process, a follow-up initiative that includes teacher professional development in science or a similar effort Engage university partners around teacher pre-service training and course credit for participant teachers Advocate at the state level to prepare students and teachers for the new state algebra standards; leverage the Leadership Group s math initiative Disseminate a menu of options for participant teachers to be involved in other member company activities developed; seek and promote volunteer opportunities for member company sponsors Joe Maleti, City National Wells Fargo (TBD) Cami Yuasa, SJ Giants Workforce Preparation Work with Bay Area Climate Collaborative (BACC) partners to set the workforce goals and objectives of the Collaborative; align those efforts with current and prior Leadership Group and SVWorks efforts As appropriate, and in alignment with the BACC workforce efforts, convene Danny Nguyen, Mission College 4

11 an SVWorks regional conference with education, community and business leaders to discuss best practices, assess region s needs and develop action plan that will bring about meaningful change in the quality of education and workforce preparation in Silicon Valley As needed, hold regular BACC and/or SVWorks meetings to further develop regional strategies for addressing Silicon Valley s evolving workforce and business needs Work with REAL Coalition partners to meet the workforce goals of the Coalition Partner with other stakeholders to secure grant funding, where appropriate, to strengthen and develop local workforce development programs in high-need industries; expand solar installers grant to include other green tech occupations IISME Summer Teacher Fellowships Report on the benefit of IISME fellows to companies and classrooms, such as case studies. Distribute marketing materials with impact to teachers and classrooms with this information and case studies Set an organization-wide minimum goal of 120 fellowships for the summer of 2010, with at least 45 member companies supporting IISME through sponsored fellowships, in-kind donations and/or grants Work with IISME staff to actively recruit applicants from low performing schools and schools in Laboratory for Learning initiative. Continue to support IISME by serving on the IISME Board of Directors and Senior Advisory Council Provide support to IISME with regard to community outreach and media outreach, as appropriate Pre-K Policy Engagement To further assist in the success of our students, preschool policy engagement will include the following: Continued work with Santa Clara County Office of Education and Santa Clara County early childhood education groups to promote the business perspective in decision making and issues Seeking opportunities in San Mateo County - Work with San Mateo County Office of Education, early childhood education and preschool groups in San Brendan-Smith Bentley, SVB Financial Ned Barnholt, KLA Tencor 5

12 Mateo County, in conjunction with the Packard Foundation and Preschool California, to build a strategy to get business involved and educated on preschool issues and economic impacts of preschool for business. Media work around release of early childhood education reports and events (e.g., letters to the editor, CEO Show, etc.) Work more deliberately with our members in Alameda County to expose them to the issue of preschool and how it affects their business Work with partners (e.g., Preschool California) to create a menu of options for businesses about what they can do to get involved in preschool with various levels of involvement Update of Leadership Group website education section to include preschool Addition of preschool issues in Leadership Group publications such as Projections Partner with existing Early Childhood Education (ECE) organizations and future partners to get the business community and our members at press events regarding success of preschool and reports on preschool Host or co-host forum related to SCCOE roll-out of its preschool plan/funding models for preschool in the state and Santa Clara County Advocacy day with Preschool Business Advisory Council, with meeting in Sacramento REAL Coalition work, possibly aligning with Preschool Business Advisory Council work/committee Leadership Group staff serving on various statewide and regional advisory committees Candidate Forum With partner organizations, develop a candidate forum with candidates for state superintendent of public instruction; schedule in early-2010 Legislative Policy & Advocacy In addition to the legislative policy activities imbedded in each of the Leadership Group s education policy portfolio, the organization will: Help to develop the REAL Coalition s legislative policy agenda and 2010 work plan (suggested areas of focus: K-12 and Higher Education funding and governance) Develop an education-specific Sacramento advocacy trip or partner with other 6

13 organizations (e.g., the REAL Coalition partners) to develop a series of visits on top priority P-16 and workforce items Pursue policy changes to statewide education governance and develop an appropriate strategy to advocate for necessary changes Higher Education Task Force Form a higher education task force comprised of leaders from the higher education institutions within the Leadership Group Through quarterly meetings, develop recommendations for the Leadership Group s advocacy and policy agenda Target first meeting for February 2010 in preparation for the first quarter Leadership Group Board of Directors meeting and the annual Sacramento Advocacy trip Maureen Scharberg, SJSU Donna Blitzer, UCSC Jon Whitmore, SJSU George Blumenthal, UCSC 7

14 Energy Energy Committee Mission: In policy matters to advocate for reliable, high-quality, environmentally responsible, and competitively priced energy and power in an open and transparent market-based system - one that maximizes entrepreneurial spirit and customer choice for the benefits of all Californians. Provide to our members and partners enhanced access to energy tools necessary to effectively and efficiently manage energy utilization and cost to their organizations. Helped Members implement cost-effective energy efficiency improvements 2009 ACCOMPLISHMENTS Goal Tactic Accomplishment Provided stellar Cycle I Partnership performance: 80 Incentive Applications from 15 companies; 70 implemented. Net savings delivered: 3,277 kw 28MM kwh 63,810 Therms New contract signed with PG&E to extend the Partnership (Integrated Energy Efficiency Program) for another three years $2.7 million contract Include three year PG&E Commitment to serve as major sponsors for Leadership Group s Energy Summit and Data Center Energy Efficiency Summit Educated Members and Silicon Valley Companies on Data Center Energy Efficiency options and solutions that deliver substantial, sustainable annual energy savings Provided Members and Silicon Valley companies cutting edge information on policy and technology trends related to energy and energy efficiency Using lessons learned from last year s inaugural Summit, recruit host data centers and technology partners for demonstration projects and case study presentations at Data Center Energy Efficiency Summit in Fall of 2009 Working through a partnership with Stanford University s Precourt Energy Efficiency Center and member companies, conduct an Annual Energy Summit in June that includes a combination of keynote speakers, panel discussions, presentations on energy related policies and energy efficiency tools and strategies. Staged 2 nd Annual Data Center Energy Efficiency Summit: Standing room attendance (400 plus) at NetApp hosted Event Leveraged partnerships with PG&E, LBNL, CEC and others as major sponsors and underwritings of the Project/Summit Presented 18 case studies by data center operators on emerging technologies that deliver substantial annual energy savings Highlighted member activities & leadership in this technology sector Sold out Energy Summit (500 attendees) Recruited Condi Rice Keynote Speaker Prestigious Event - High Profile Provided useful and actionable information to member companies and other Silicon Valley companies Highlighted member activities & leadership in this technology sector Highly Profitable 8

15 Goal Assist Leadership Group member implement energy efficiency strategies for their facilities operations that deliver substantial, sustainable annual energy savings with short payback periods (12 to 18) months and capital costs subsidized through PG&E rebates/incentives. Expand options to include renewal energy sources and demand side management tools. Continue to educate members and Silicon Valley companies on energy efficiency solutions for data center operations that include cutting edge IT optimization strategies ( ) Top Three Goals (Draft) Description Dedicate staff and Leadership Group resources as well as relationships with member companies to successfully execute the phase two of the Energy Watch Partnership with Pacific Gas & Electric Company, re-branded as the Integrated Demand Side Management Program. Through this 2 ½ year contract with PG&E, LG will help member companies adopt and implement world class, trend setting integrated energy efficiency programs, largely subsidized through PG&E rebates and incentives, that include retrofitting and retro-commissioning as well as demand side management opportunities and renewable energy options for their facility operations. The overall objective of PIEE is for our member companies to collectively deliver the following energy savings: Demand Reduction 3,300 kw Energy Savings 33,000,000 kwh Therms 90,000 Dedicate staff and resources to develop and sustain data center energy efficiency demonstration projects to be showcased at an annual summit and continue to strengthen strategic partnerships for this event (namely, with the Pacific Gas & Electric Company, CA Energy Commission, and Lawrence Berkeley National Laboratory) and recruit new strategic partners to support this project. Educate Silicon Valley companies on new and existing technologies that offer cost effective ways to achieve substantial, sustainable energy savings and superior data center performance which collectively reduces greenhouse gas emissions generated from data center operations. Provide members and other Silicon Valley companies information on policy and trends in clean tech and smart grid technologies Working through our partnership with PG&E, Stanford University s Precourt Energy Efficiency Center, other strategic partners and member companies, educate Silicon Valley companies on the benefits of responsible energy use in their day to day operations through the program content of the annual Energy Summit. Also use this forum to highlight member companies technologies and best practices in these areas with a particular emphasis on clean tech & smart grid technologies. Support the development of federal and state policies to stimulate public private investments and foster innovation of emerging technologies. 9

16 WORK PLAN FOR ENERGY (DRAFT) Legislation and Regulation Subcommittee Description Cost Rank Member Owner & Executive Champion Mission Statement: Mission: Review, vet, monitor and respond to local, state, and national regulatory and legislative initiatives that may impact member company energy availability, quality (power and environmental), utilization, and cost. This subcommittee reports its findings to the SVLG Energy Committee. Advocacy Develop Leadership Group public policy positions regarding important proposed energyrelated legislation and initiatives on a federal and state level and disseminate such positions as necessary to educate and influence the debate and decision makers course of actions Environment/Greenhouse Gas (GHG) policies affecting member companies [AB 32 Scoping Plan Development and Implementation]: Work with Leadership Group Environmental Committee to pro-actively participate in application of new CO 2 regulations at the CPUC, CEC, Air Board etc., upholding LG principles for a balanced policy that meets the GHG reduction goals of AB32. A1 A1 Member Owner Mukesh Khattar (Oracle) Lynn Guest (IBM) Exec Champ Open Member Owner open Exec. Champ Open Work with Environment Committee to support the Bay Area Climate Collaborative action area goals to establish standards for solar permitting. A2 Member Owner Open Exec. Champ Open Markets Right to Shop for Power legislation and regulation to restore the right of customers to contract directly for their own power on a bilateral basis. Assure that existing and new direct access consumers are treated fairly with exit fees and other surcharges. C2 Member Owner Nayeem Sheikh, Ernie Pasters, KC Mares, Lynn Guest Exec. Champ Open 10

17 Regulatory Agency Leadership Advocacy Appointments: Energy Regulatory Agencies Influence the selection process of new PUC and CEC Commissioners and other appointments for 2010 and beyond, so as to facilitate Governor's appointments that are consistent with Leadership Group values and criteria. A3 Member Owner Exec. Champ The Leadership Group/Pacific Gas Electric Partnership for Integrated Energy Efficiency (PIEE) Dedicate staff and Leadership Group resources as well as relationships with member companies to successfully execute phase two of the Energy Watch Partnership with Pacific Gas & Electric Company, re-branded as re-branded as the Integrated Demand Side Management Program. Through this 2 ½ year contract with PG&E, LG will help member companies adopt and implement world class, trend setting integrated energy efficiency programs, largely subsidized through PG&E rebates and incentives, that include retrofitting and retro-commissioning as well as demand side management opportunities and renewable energy options for their facility operations. The overall objective of PIEE is for our member companies to collectively deliver the following energy savings: Demand Reduction 3,300 kw Energy Savings 33,000,000 kwh Therms 90,000 A1 Member Owner Michael Lechner, QUEST Executive Champ Derrick Rebello, QUEST Data Center Energy Efficiency Project & Summit Dedicate staff and resources to develop and sustain data center energy efficiency demonstration projects to be showcased at an Annual Summit and continue to strengthen strategic partnerships for this event (namely, with the Pacific Gas & Electric Company, CA Energy Commission, and Lawrence Berkeley National Laboratory) and recruit new strategic partners to support this project. Educate Silicon Valley companies on new and existing technologies that offer cost effective ways to achieve substantial, sustainable energy savings and superior data center performance which collectively reduces greenhouse gas emissions generated from data center operations. A1 Members Owner: Ralph Renee (NetApp) Exec. Champ: 11

18 SolarTech An initiative of the Silicon Valley Leadership Group Advocacy After consulting with SolarTech and in coordination with SolarTech, its members and industry partners, develop Leadership Group positions on important proposed legislation and other key public policy initiative areas impacting solar power as a renewable energy source on both a federal and state level and disseminate such positions as necessary to educate and influence the debate and decision makers course of actions. Assist efforts of SolarTech and its members at a broader regional and statewide level in accomplishing the objectives designed to ensure solar power becomes a cost effective, widely used renewable energy source: Utility Interconnections and Rebate Processes Streamline interconnections, shorten turnaround times, improve rebate processing, and reduce processing costs. Building Permits Standards Streamline permitting and inspection processes and lower costs. Establish consistent standards across all building departments, first in the Bay Area and later in the state. (BACC Imitative) B3 A2 Member Owner: Doug Payne Exec. Champ: Member Owner: Doug Payne Exec Champ: 12

19 ENVIRONMENT Mission: The Environment Committee will be an active participant in Silicon Valley, Bay Area and California business, regulatory and environmental communities to foster long-term environmental and business sustainability ACCOMPLISHMENTS Goal/s Tactics Accomplishment Climate Change Policy Implement Board s Directive on Energy, Fuels and Climate Issues. Programs, Policy and regulatory advocacy, Member education. 1. Programs Launched Bay Area Climate Collaborative (BACC), a regional public-private partnership that is uniting the region to collectively address climate change, environmental conservation and green jobs. Accomplishments include: Successfully staged a public signing ceremony to kick-off initiative in Redwood City, which was carried by major press Increased partners engaged in BACC: o Municipal partners: Oakland, San Jose, San Francisco, Santa Clara County, Mountain View, Morgan Hill, Saratoga, Los Gatos, Fremont, Cupertino, Redwood City. o Private sector partners: A number of Leadership Group partners have stepped up with multi-year commitments in terms of funding and staff time to help drive the initiative forward including: Branded Co-sponsors: PG&E and Bank of America Action Area Champions: Better Place, Coulomb Technologies, Cypress Envirosystems, Genentech, Lockheed Martin Space Systems, SilverSpring Networks, Serious Materials and Webcor o Association partners: Joint Venture: Silicon Valley Network, Bay Area Council Economic Institute, and SolarTech o NGO partners: Environmental Defense Fund, California League of Conservation Voters and Sustainable Silicon Valley Funding: Secured funding commitments of $347,500 over 3 years Program Work: o Launched Steering Committee, composed of direct reports from all the signatories and partners; o Launched first four Action Area Working Groups, including: Green building standards, solar PV standards, electric vehicles and public climate action campaign 2. Policy Encouraged development of climate change policies that reward innovation and control compliance costs while harmonizing with national and global frameworks. Accomplishments include: National level o Work with partner groups such as USCAP to influence climate change action at the national level o Advocated for climate change action in Washington DC, during annual policy advocacy trip in meetings with key legislators in the House and Senate and Administration staff, meeting with: Lisa Jackson, EPA Administrator; Carol M. Browner, Climate Change Czar; and Ed Markey, Chair, Select Committee on Energy Independence and Global Warming. State level o Advocated for members interests in AB 32 implementation process, particularly in regards to market design and implementation. 13

20 Water Influence state and regional policy, projects and programs. Policy and regulatory advocacy, Represent member interests in regional and state level planning efforts, Member education. 3. Partnerships Continued Leadership Group representation on Sustainable Silicon Valley Board of Directors and partnership on events and programs. Accomplishments include: Mike Mielke has continued to represent the Leadership Group on the SSV Board of Directors 4. Events Developed events that provided access to key policymakers and decision-makers on climate change policies and programs and which raise revenue to support the Leadership Group s mission. Accomplishments include: Organized Green is Gold event focused in May with attendance by CARB, CEOs Tom Werner and Tarkan Maner, and Khosla Ventures on Silicon Valley s leadership on climate (clean-tech and green-tech) and economic development 1. Policy Advocated for policies that ensure an adequate water supply of good quality and reasonable cost while also helping to preserve and protect the Delta. Accomplishments include: State water policy and bond package Together with R.E.A.L. Coalition partners, helped secure passage of an historic water policy and bond measure package this past November. The Safe, Clean, and Reliable Drinking Water Supply Act of 2010 is $11.14 billion general obligation bond; it is the biggest investment in water infrastructure since the State Water Project was built a half century ago addressing decades of underinvestment. Bond monies would support new dams, regional water projects, groundwater cleanup and land preservation. Recycled water Responding to member feedback regarding the difficulty of recycled water implementation, coordinated meetings with member companies and State government officials and recycled water purveyors to help achieve fair, transparent and consistent policies to enable greater use of recycled water. 2. Partnerships Established a Taskforce related to water conservation and supply to promote coordination, raise awareness and promote sharing of best practices. Accomplishments include: Launched Silicon Valley Water Planning Group o Participants include many of the major stakeholders in local water planning including Santa Clara Valley Water District, Bay Area Water Supply and Conservation Agency (BAWSCA), and the cities of San Jose and Santa Clara. The Planning Group is in the process of analyzing regional water ordinances and coordinating local efforts to conserve water and working with BAWSCA to better engage stakeholders and the Leadership Group during their planning effort. Founding Member and Co-lead on Silicon Valley Water Conservation Awards o Awards are presented to organizations, agencies, businesses and individuals whose programs and leadership have advanced water conservation. The goal of the Awards is to raise awareness and celebrate outstanding achievements in water conservation through best practices, efficiency and innovation. Member company Applied Materials won in the business category for its innovative water conservation work. 14

21 Green Chemistry Facilitate engagement of Leadership Group members in policy and regulatory development Policy and regulatory advocacy, Member Education 1. Policy and Regulation Advocated for balanced, cost-effective and flexible green chemistry regulation that reward innovation and harmonize with global policy trends and international standards. Accomplishments include: Provided targeted feedback and specific recommendations to Department of Toxic Substances Control (DTSC) on how to improve the development of green chemistry regulation pursuant to implementation of AB Continued direct, high-level engagement with DTSC, including meetings with Chief Scientist Jeff Wong, Executive Officer Donald Owen and new Acting Director Maziar Movassaghi to help the Department focus limited resources for maximum impact. 15

22 WORK PLAN ENVIRONMENT Description Cost Rank Member Owners Executive Champion $$$ A1 Initiative Co-owners Initiative Co-champions Climate Change Programs Goal: Scale-up the Bay Area Climate Collaborative (BACC), moving forward with implementation to meet and exceed state greenhouse gas reduction goals and support and encourage the development of the cleantech sector. Action area goals include: Randall Hernandez Bank of America & Papia Gambelin PG&E Raquel Gonzalez, Bank of America & Tom Bottorff, PG&E 1. Green building / Solar Developing common standards 2. Transportation Alternatives Reducing vehicle miles traveled 3. Renewable Energy Increased renewable energy use 4. Energy Efficiency Increasing energy efficiency in existing buildings 5. Green Jobs Training and placing the clean and green workforce 6. Water Use Increasing water conservation and recycling 7. Adaptation Developing climate adaptation plans 8. Public Information Regional public climate action campaign 9. Solid Waste Increasing recycling and diversion 10. Clean Cars Regional electric vehicle initiative Action Area Owners 1. Greg Sellers SolarTech, & Brandon Tinianov Serious Materials 2. Dan McCoy Genentech & Susan Dietz Lockheed Martin 3. Open 4. Scott Lang, Silver Spring Networks & Kim Banh, Cypress Envirosystems 5. Open 6. Open 7. Shelley Doran Webcor 8. Open 9. Open 10. Sven Thesen Better Place, & Richard Lowenthal Coulomb Action Area Champions 1. Doug Payne SolarTech, & Kevin Surace Serious Materials 2. Todd Kaufman Genentech & Tory Bruno Lockheed Martin 3. Open 4. Scott Lang, Silver Spring Networks & Harry Sim, Cypress Envirosystems 5. Open 6. Open 7. Andy Ball Webcor 8. Open 9. Open 10. Jason Wolf Better Place, & Richard Lowenthal Coulomb 16

23 Climate Change Policy and Action Goal: Encourage development of climate change policies that reward innovation and control compliance costs while harmonizing with national and global frameworks, and regional partnerships that reduce greenhouse gas emissions and foster the growth of the green economy. Continue to implement and scale-up the Bay Area Climate Collaborative (BACC), moving forward with implementation of various working groups and engaging more partners. Continue Leadership Group representation on SSV Board of Directors and partnership on events and programs. Advocate for members interests in AB 32 implementation process, particularly in regards to regulatory development and market design and implementation; coordinate with transportation, housing and land-use, and energy committees. Advocate for members interests in design and implementation of US national climate change policy, particularly with regards to a market-based cap-and-trade system vs. regulation. Develop event(s) that provide access to key policymakers and decisionmakers on climate change policies and programs and which raise revenue to support the Leadership Group. Together with Energy Committee, develop event(s) that allow member companies to better manage their carbon footprints, break down barriers for energy efficiency and drive down costs for deploying clean energy. $$ A1 Papia Gambelin Pacific Gas & Electric Company Tom Bottorff Pacific Gas & Electric Company Water Policy and Action Goal: Advocate for policies that ensure a reliable water supply of good quality and reasonable cost while also helping to preserve and protect the Delta. Advocate for passage of November 2010 water bond that supports storage, ecosystem protection and flood protection. Together with R.E.A.L. Coalition members advocate for state water governance reform. Promote best practices and greater awareness regarding water conservation and efficiency. Continue to coordinate regional water planning and conservation efforts with partners including Santa Clara Valley Water District, Bay Area Water Supply and Conservation Agency (BAWSCA), San Jose and Santa Clara. Work with local and State government officials and recycled water purveyors to help achieve fair, transparent, and consistent policies to enable greater supply and use of recycled water. $-$$ B1 Open Open 17

24 Green Chemistry Policy and Action Goal: Advocate for balanced, cost-effective and flexible green chemistry policies and regulations that reward innovation and harmonize with global policy trends and international standards. Continue direct, high-level engagement with DTSC, including meetings with Chief Scientist Jeff Wong, Executive Officer Donald Owen and new Director Maziar Movassaghi on the following: o Continue to provide specific recommendations to Department of Toxic Substances Control (DTSC) on how to improve the development of green chemistry regulation pursuant to implementation of AB o Monitor developments regarding any proposed nanomaterials policy and regulatory frameworks and work with partners to foster better awareness regarding nanomaterials use and fate with policymakers. $$ B2 Nancy Comstock, Johnson & Johnson Kenneth Ryder VP, R&D, Cordis Legislative and Regulatory Development Goal: Advocate for fair and cost-effective legislation and regulation that supports business development and growth and helps improve the quality of life and protect the environment. Represent Leadership Group member interests on legislative proposals and regulations as they arise. No Leadership Group-sponsored environmental bills are anticipated at this time. $ A2 N/A N/A 18

25 FEDERAL ISSUES Mission: To advocate policies, regulations, and legislation at the federal level that help Silicon Valley and California remain competitive by reducing the cost of doing business and improves the quality of life ACCOMPLISHMENTS Goal Tactic Accomplishment Raise federal priorities with key federal legislators; get support and action Advocacy International Tax Deferral In the Wall Street Journal story on October 13, President Obama s administration responded to Silicon Valley s call to protect multi-national employer s ability to defer taxes on foreign income. In October, the Administration announced they would shelve a plan which attempted to raise more than $200 billion in new taxes on U.S. multi-national companies a big victory for Silicon Valley. Previously, at the March Quarterly Board of Directors meeting, deferral was supported as the number one federal priority. On May 4, 2009, President Obama and his Administration announced a proposal which would severely limit and possibly eliminate entirely U.S.-based multinational businesses ability to defer U.S. tax on active foreign business income. Since the May annual CEO trip to D.C., Leadership Group members have reinforced opposition against making piecemeal changes (e.g. during the health care reform debate) in the corporate tax code to reduce or eliminate a U.S. employers ability to defer U.S. taxes on foreign earnings. Any proposed changes in U.S. international tax deferral laws and regulations should be considered as part of a broader, comprehensive effort to reform U.S. tax laws. Other Actions included: Fall follow-up executive trip to D.C. Silicon Valley roundtables with Speaker Nancy Pelosi, Mike Honda, Jackie Speier, and Edward Markey Silicon Valley Letter to Senator Dianne Feinstein Actively Participated in PACE coalition Created a taskforce and comprehensive action steps to protect employers ability to defer taxes. 19

26 Cap and Trade Supported legislation that focuses on the reduction of greenhouse gases though a market-based cap-and-trade system that encourages innovation, spurs economic growth and the creation of large numbers of high-paying jobs. Health Care Reform Recommended wellness and prevention, innovation (especially health IT) and delivery system changes in comprehensive reform. Federal funding for BART Advocated for inclusion of BART Extension to Silicon Valley in the Federal Transportation Reauthorization Bill. Annual CEO Trip In May, for the 5 th Annual Washington, D.C. Advocacy Trip, 50 Silicon Valley executives participated in 60 visits led by Board Vice Chair Tom Werner of SunPower. The Leadership Group delegation arrived in Washington, DC for its annual trip just as the President announced potential changes to limit the ability of companies to defer foreign earnings. During the visit, executives vigorously presented arguments against these changes to key Senate and House Committee Chairs, Ranking Committee members, and Obama Administration officials. Specifically, the visits included: Speaker of the House Nancy Pelosi Larry Summers, Director of the White House's National Economic Council Christina Romer, Chair of the Council of Economic Advisers Silicon Valley Delegation (Rep. Anna Eshoo, Rep. Sam Farr, Rep. Mike Honda, and Rep. Zoe Lofgren) Barney Frank, Chairman of the House Financial Services Committee 20+ members of the influential New Democrat Coalition A special thank you to Senator Boxer for championing deferral and setting up the meetings with Drs. Romer and Summers. The trip garnered considerable media coverage with more than a dozen stories. In addition to coverage by Bay Area newspapers and radio and TV stations, Carl Guardino and our executives were interviewed by the Wall St. Journal, Bloomberg News and the AP. Executive Outreach in Silicon Valley Hosted small group CEO-executive lunch and event with Neera Tanden, Senior Advisor for Health Reform, HHS at Intel 20

27 Hosted CEO dinner for Federal Chief Information Officer Vivek Kundra at Wyse Technology co-hosted bay Alom, CA and HP San Jose Mayor Chuck Reed and Board member and Brocade CEO Mike Klayko co-hosted a smaller CEO advocacy trip to Washington, D.C. on the deferral and BART issues. In August, hosted Speaker Nancy Pelosi at Applied Materials with host Mike Splinter for a discussion with 30 executives on health care reform. In May, hosted House Education and Labor Committee Chairman George Miller with Dan l Lewin of Microsoft. In May, hosted cybersecurity CEO meeting with Rep. Lofgren and McAfee CEO, Dave DeWalt In September, hosted Congresswoman Jackie Speier for a luncheon with Virgin America CEO David Cush. In September, hosted a roundtable for Congressman Mike Honda with Avaratek. In October, co-hosted immigration reform breakfast with Rep. Lofgren, labor leaders In November, hosted Senator Sherrod Brown from Ohio climate change, US competitiveness and clean tech manufacturing WORK PLAN FEDERAL ISSUES Description Cost Rank Member Owner Executive Champion Leadership Group Washington, D.C. Advocacy Trip on May 4-6 $$ B1 Julie Blunden Tom Werner International Tax Deferral B1 John Noh Grace Chu Dan Kostenbauder Mike Klayko Shellye Archambeau Rob Johnson Jim Parker Paul Redifer Job Growth and Retention/Immigration Reform H1B visas and B2 Larry Disenhof Lip-Bu Tan streamlining foreign worker entry to bring in more talent Federal Transportation Bill Reauthorization B2 Jim Purcell Father Michael Engh Mike Splinter Health care reform refine components and details on implementation B3 Sherri Sager Chris Dawes Climate Change/Energy Security Efforts Watch legislation regarding carbon emissions. Advocate for tax credits for R&D, deployment and B3 Papia Gambelin Tom Hayse Tom Bottorff 21

28 purchase of plug-in hybrid electric vehicles. Support efforts to establish federal low carbon fuels standard and raise CAFE standards Cybersecurity Assist in the development of legislation that secures the B4 Thomas Gann David DeWalt internet but does not hinder or encumber business processes and transactions Federal Silicon Valley Roundtables B4 Hosts Hosts 22

29 GOVERNMENT RELATIONS Mission: Provide member companies with opportunities to meet and establish positive relationships with local, state and federal public policy leaders. In addition, the Committee educates member company representatives about public policy issues, processes and systems. Specifically, the Government Relations Committee seeks to: Increase Leadership Group member involvement in Sacramento, Washington D.C. and local outreach efforts in coordination with Leadership Group policy committees to deliver policy goals in a unified voice by engaging federal, statewide and local elected officials, appointed officials and key staff members. Provide education forums to assist in the awareness of voter, policy and advocacy efforts, trends and best practices. Improve knowledge of Leadership Group mission, goals and policy priorities with Sacramento elected and appointed officials, Washington D.C. public officials and Silicon Valley County and city officials. Effective Statewide Advocacy 2009 ACCOMPLISHMENTS Goal Tactic Accomplishments Annual Sacramento Advocacy Trip This year, under the leadership of Board Vice Chair Tom Werner, more than 60 participants achieved 70 contacts including meetings with the Governor s senior team, State Controller, Lt. Governor, and legislative leadership. The delegation also hosted a reception for 125 guests including legislators, administration and agency leaders. Fresh Ideas from Newly Elected Legislators Fridays Around the Bay FAB California Governance and Tax Reform Co-hosted two sessions in Sacramento in January and March to become better acquainted with more than 20 of the newly elected members of the California Assembly and hear top level policy priorities. 30 Leadership Group members participated in the sessions. The state budget crisis impacted the series this year. Despite the challenges of securing legislators away from Sacramento due to budget talks, 3 roundtables (Senator Elaine Alquist, Senator Joe Simitian and Assemblymember Bill Monning) were co-hosted by the Leadership Group and the Chambers of Commerce Coalition of Santa Clara County with member hosts. The Leadership Group convened several sessions with key leaders from California Forward and the Commission on the 21 st Century New Economy regarding proposals to reframe the way California operates financially and governs. California Forward s plan would require fiscal responsibility through a rainy day fund; one-time use of one-time revenues; reduce budget requirement 23