Preface
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Preface. 1990: California Air Resources Board (CARB) created Zero Emissions Vehicle mandate. Automakers sued CARB 1996: GM rolled out first electric car, the EV1 2003: CARB repealed the mandate and EV1’s were collected and crushed. General Motors. Batteries. Suspects. Consumers. CARB.

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Preface

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Preface

Preface

  • 1990: California Air Resources Board (CARB) created Zero Emissions Vehicle mandate.

  • Automakers sued CARB

  • 1996: GM rolled out first electric car, the EV1

  • 2003: CARB repealed the mandate and EV1’s were collected and crushed


Preface

General Motors

Batteries

Suspects

Consumers

CARB

Oil Companies

Hydrogen Fuel Cells

Federal Government


Consumers

Consumers

  • EV1’s

    • Range: 70-90 miles per charge

    • 2 hours to recharge

    • Fast and sporty

  • Miles per day traveled by the average American: 23

  • GM sales staff: thousands on waiting lists

  • GM: demand wasn’t high enough


General motors

General Motors

  • GM led the suit against CARB

    • Why?

      • Didn’t like being told what to do

      • Feared elimination of the internal combustion engine

  • Cryptic advertising campaign

  • EV1’s only released in AZ and CA

  • Could only lease the car


Batteries

Batteries

  • Battery in EV1

    • 70-90 mi. range, charged in 2 hrs

    • Did that scare off customers?

  • Better battery already existed

    • Up to 300 mi. range

  • GM owned control of battery company

    • Then sold shares to Chevron/Texaco


Preface

CARB

  • Zero Emissions Vehicle Mandate

    • By 1998, 2% of cars sold in CA = electric

    • By 2001: 5%, by 2003: 10%

  • At meeting to decide fate of mandate

    • Automaker reps given almost unlimited time

    • EV battery rep time cut from 10 to 3 minutes

    • Out of 78 who testified, 4 from EV side


Carb cont

CARB Cont…

  • Many testified about hydrogen fuel cell advanced technology

    • Bait and switch?

  • Chair of CARB, Dr. Allan Lloyd

    • 4 months earlier, accepted chairman position for the CA Fuel Cell Partnership


Hydrogen fuel cells

Hydrogen Fuel Cells

  • Alternative to electric battery, only emission is water

  • Joseph Romm: The Hype About Hydrogen

    • Technology won’t be ready until 2050

    • Very expensive (currently $1 million)

    • Storage problem

    • Needs extensive infrastructure

    • Competing technology can’t improve (hybrids)


Federal government

Federal Government

  • Federal Gov’t (under Bush administration) joined suit against CARB

  • 2002

    • Max fed tax credit for EV: $4,000

    • Max fed tax deduction for 6,000+ lbs vehicles: $100,000

      • Hummer qualified, which GM owned

  • In 2003 State of the Union: Bush announced $1.2 billion for hydrogen fuel cells


Federal government cont

Federal Government Cont…

  • Bush admin: ties to oil and auto industries

    • Andrew Card (Chief of Staff 2000-2006): former Pres/CEO of AAMA & chief lobbyist for GM

    • Dick Cheney: former CEO of Halliburton Co.

    • Condolezza Rice: former Board Member of Chevron Corp (10 years)

    • Spencer Abraham (former Energy Sec): opposed bills to raise fuel economy standards and co-authored bills to drill in Arctic National Wildlife Refuge


Oil companies

Oil Companies

  • Had investment in internal combustion engines

    • 67% of oil used in U.S., used for transportation

    • U.S. – world’s leading consumer of gas (9 million barrels daily)

  • Oil company profits soaring from 2004-2005

    • Exxon-Mobil: increased 75%

    • BP: increased 34%

    • Conoco-Phillips: increased 89%


Oil companies cont

Oil Companies Cont…

  • Californians Against Hidden Taxes (CAHT) and Californians Against Utility Company Abuse (CAUCA)

    • “grassroots public organizations”

    • Fought against EV movement

  • Heavily funded by Western States Petroleum Association

    • Members: included Mobil, Shell, Chevron, and Arco


Ethics issues

Ethics Issues

  • What do you think are some of the top ethical issues here?

    • What is the real motivation behind lawsuit against CARB?

      • For Automakers

      • For Oil industry

      • For Federal Government

    • What conflicts of interest are present?

      • For Automakers

      • For Oil industry

      • For Federal Government


Ethics issues cont

Ethics Issues cont.

  • Why did GM take back the EV1’s and crush them?

  • Did GM do everything they could to make the EV1 successful? If not, why not?

  • Did CARB crumble under pressure?

  • Why are Hydrogen Fuel Cells “the next big thing?”


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