PrefacePreface

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

Automakers sued CARBAutomakers sued CARB 1996: GM rolled out first electric car, 1996: GM rolled out first electric car,

the EV1the EV1 2003: CARB repealed the mandate 2003: CARB repealed the mandate

and EV1’s were collected and crushedand EV1’s were collected and crushed

SuspectsConsumers CARB

Batteries

Federal Government

Oil Companies

Hydrogen Fuel Cells

General Motors

ConsumersConsumers

EV1’sEV1’s Range: 70-90 miles per chargeRange: 70-90 miles per charge 2 hours to recharge 2 hours to recharge Fast and sportyFast and sporty

Miles per day traveled by the average Miles per day traveled by the average American: 23American: 23

GM sales staff: thousands on waiting GM sales staff: thousands on waiting lists lists

GM: demand wasn’t high enoughGM: demand wasn’t high enough

General MotorsGeneral Motors

GM led the suit against CARBGM led the suit against CARB Why?Why?

Didn’t like being told what to doDidn’t like being told what to do Feared elimination of the internal Feared elimination of the internal

combustion enginecombustion engine

Cryptic Cryptic advertising campaign campaign EV1’s only released in AZ and CAEV1’s only released in AZ and CA Could only lease the carCould only lease the car

BatteriesBatteries

Battery in EV1Battery in EV1 70-90 mi. range, charged in 2 hrs70-90 mi. range, charged in 2 hrs Did that scare off customers?Did that scare off customers?

Better battery already existedBetter battery already existed Up to 300 mi. rangeUp to 300 mi. range

GM owned control of battery GM owned control of battery companycompany Then sold shares to Chevron/TexacoThen sold shares to Chevron/Texaco

CARBCARB

Zero Emissions Vehicle MandateZero Emissions Vehicle Mandate By 1998, 2% of cars sold in CA = electricBy 1998, 2% of cars sold in CA = electric By 2001: 5%, by 2003: 10%By 2001: 5%, by 2003: 10%

At meeting to decide fate of mandateAt meeting to decide fate of mandate Automaker reps given almost unlimited Automaker reps given almost unlimited

timetime EV battery rep time cut from 10 to 3 EV battery rep time cut from 10 to 3

minutesminutes Out of 78 who testified, 4 from EV sideOut of 78 who testified, 4 from EV side

CARB Cont…CARB Cont…

Many testified about hydrogen fuel Many testified about hydrogen fuel cell advanced technologycell advanced technology Bait and switch?Bait and switch?

Chair of CARB, Dr. Allan LloydChair of CARB, Dr. Allan Lloyd 4 months earlier, accepted chairman 4 months earlier, accepted chairman

position for the CA Fuel Cell Partnershipposition for the CA Fuel Cell Partnership

Hydrogen Fuel CellsHydrogen Fuel Cells

Alternative to electric battery, only Alternative to electric battery, only emission is wateremission is water

Joseph Romm: Joseph Romm: The Hype About HydrogenThe Hype About Hydrogen Technology won’t be ready until 2050Technology won’t be ready until 2050 Very expensive (currently $1 million)Very expensive (currently $1 million) Storage problemStorage problem Needs extensive infrastructureNeeds extensive infrastructure Competing technology can’t improve Competing technology can’t improve

(hybrids)(hybrids)

Federal GovernmentFederal Government

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

20022002 Max fed tax credit for EV: $4,000Max fed tax credit for EV: $4,000 Max fed tax deduction for 6,000+ lbs vehicles: Max fed tax deduction for 6,000+ lbs vehicles:

$100,000 $100,000 Hummer qualified, which GM ownedHummer qualified, which GM owned

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

Federal Government Cont…Federal Government Cont…

Bush admin: ties to oil and auto industriesBush admin: ties to oil and auto industries Andrew Card (Chief of Staff 2000-2006): former Andrew Card (Chief of Staff 2000-2006): former

Pres/CEO of AAMA & chief lobbyist for GMPres/CEO of AAMA & chief lobbyist for GM Dick Cheney: former CEO of Halliburton Co.Dick Cheney: former CEO of Halliburton Co. Condolezza Rice: former Board Member of Condolezza Rice: former Board Member of

Chevron Corp (10 years)Chevron Corp (10 years) Spencer Abraham (former Energy Sec): Spencer Abraham (former Energy Sec):

opposed bills to raise fuel economy standards opposed bills to raise fuel economy standards and co-authored bills to drill in Arctic National and co-authored bills to drill in Arctic National Wildlife RefugeWildlife Refuge

Oil CompaniesOil Companies

Had investment in internal combustion Had investment in internal combustion enginesengines 67% of oil used in U.S., used for transportation67% of oil used in U.S., used for transportation U.S. – world’s leading consumer of gas (9 U.S. – world’s leading consumer of gas (9

million barrels daily)million barrels daily) Oil company profits soaring from 2004-Oil company profits soaring from 2004-

20052005 Exxon-Mobil: increased 75%Exxon-Mobil: increased 75% BP: increased 34%BP: increased 34% Conoco-Phillips: increased 89%Conoco-Phillips: increased 89%

Oil Companies Cont…Oil Companies Cont…

Californians Against Hidden Taxes Californians Against Hidden Taxes (CAHT) and Californians Against (CAHT) and Californians Against Utility Company Abuse (CAUCA)Utility Company Abuse (CAUCA) ““grassroots public organizations”grassroots public organizations” Fought against EV movementFought against EV movement

Heavily funded by Western States Heavily funded by Western States Petroleum AssociationPetroleum Association Members: included Mobil, Shell, Members: included Mobil, Shell,

Chevron, and ArcoChevron, and Arco

Ethics IssuesEthics Issues

What do you think are some of the top What do you think are some of the top ethical issues here?ethical issues here? What is the real motivation behind lawsuit What is the real motivation behind lawsuit

against CARB?against CARB? For AutomakersFor Automakers For Oil industryFor Oil industry For Federal GovernmentFor Federal Government

What conflicts of interest are present?What conflicts of interest are present? For AutomakersFor Automakers For Oil industryFor Oil industry For Federal GovernmentFor Federal Government

Ethics Issues cont.Ethics Issues cont.

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

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

Did CARB crumble under pressure?Did CARB crumble under pressure? Why are Hydrogen Fuel Cells “the next Why are Hydrogen Fuel Cells “the next

big thing?”big thing?”