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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 Automakers sued CARB 1996: GM rolled out first electric car, the EV1 2003: CARB repealed the mandate and EV1’s were collected and crushed.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
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  • 2003: CARB repealed the mandate and EV1’s were collected and crushed
slide4
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
slide8
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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