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sued CARB 1996: GM rolled out first electric car, the EV1 1996: GM rolled out first electric car, the EV1 2003: CARB repealed the mandate and EV1’s were collected and crushed 2003: CARB repealed the mandate and EV1’s were collected and crushed

4. Suspects Consumers CARB Batteries Federal Government Oil Companies Hydrogen Fuel Cells General Motors

5. Consumers EV1’s EV1’s Range: 70-90 miles per charge Range: 70-90 miles per charge 2 hours to recharge 2 hours to recharge Fast and sporty Fast and sporty Miles per day traveled by the average American: 23 Miles per day traveled by the average American: 23 GM sales staff: thousands on waiting lists GM sales staff: thousands on waiting lists GM: demand wasn’t high enough GM: demand wasn’t high enough

6. General Motors GM led the suit against CARB GM led the suit against CARB Why? Why? Didn’t like being told what to do Didn’t like being told what to do Feared elimination of the internal combustion engine Feared elimination of the internal combustion engine Cryptic advertising campaign Cryptic advertising campaignadvertising EV1’s only released in AZ and CA EV1’s only released in AZ and CA Could only lease the car Could only lease the car

7. Batteries Battery in EV1 Battery in EV1 70-90 mi. range, charged in 2 hrs 70-90 mi. range, charged in 2 hrs Did that scare off customers? Did that scare off customers? Better battery already existed Better battery already existed Up to 300 mi. range Up to 300 mi. range GM owned control of battery company GM owned control of battery company Then sold shares to Chevron/Texaco Then sold shares to Chevron/Texaco

8. CARB Zero Emissions Vehicle Mandate Zero Emissions Vehicle Mandate By 1998, 2% of cars sold in CA = electric By 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 mandate At meeting to decide fate of mandate Automaker reps given almost unlimited time Automaker reps given almost unlimited time EV battery rep time cut from 10 to 3 minutes EV battery rep time cut from 10 to 3 minutes Out of 78 who testified, 4 from EV side Out of 78 who testified, 4 from EV side

9. CARB Cont… Many testified about hydrogen fuel cell advanced technology Many testified about hydrogen fuel cell advanced technology Bait and switch? Bait and switch? Chair of CARB, Dr. Allan Lloyd Chair of CARB, Dr. Allan Lloyd 4 months earlier, accepted chairman position for the CA Fuel Cell Partnership 4 months earlier, accepted chairman position for the CA Fuel Cell Partnership

10. Hydrogen Fuel Cells Alternative to electric battery, only emission is water Alternative to electric battery, only emission is water Joseph Romm: The Hype About Hydrogen Joseph Romm: The Hype About Hydrogen Technology won’t be ready until 2050 Technology won’t be ready until 2050 Very expensive (currently $1 million) Very expensive (currently $1 million) Storage problem Storage problem Needs extensive infrastructure Needs extensive infrastructure Competing technology can’t improve (hybrids) Competing technology can’t improve (hybrids)

11. Federal Government Federal Gov’t (under Bush administration) joined suit against CARB Federal Gov’t (under Bush administration) joined suit against CARB 2002 2002 Max fed tax credit for EV: $4,000 Max fed tax credit for EV: $4,000 Max fed tax deduction for 6,000+ lbs vehicles: $100,000 Max fed tax deduction for 6,000+ lbs vehicles: $100,000 Hummer qualified, which GM owned Hummer qualified, which GM owned In 2003 State of the Union: Bush announced $1.2 billion for hydrogen fuel cells In 2003 State of the Union: Bush announced $1.2 billion for hydrogen fuel cells

12. Federal Government Cont… Bush admin: ties to oil and auto industries Bush admin: ties to oil and auto industries Andrew Card (Chief of Staff 2000-2006): former Pres/CEO of AAMA & chief lobbyist for GM Andrew Card (Chief of Staff 2000-2006): former Pres/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 Chevron Corp (10 years) 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 Spencer Abraham (former Energy Sec): opposed bills to raise fuel economy standards and co-authored bills to drill in Arctic National Wildlife Refuge

13. Oil Companies Had investment in internal combustion engines Had investment in internal combustion engines 67% of oil used in U.S., used for transportation 67% of oil used in U.S., used for transportation U.S. – world’s leading consumer of gas (9 million barrels daily) U.S. – world’s leading consumer of gas (9 million barrels daily) Oil company profits soaring from 2004-2005 Oil company profits soaring from 2004-2005 Exxon-Mobil: increased 75% Exxon-Mobil: increased 75% BP: increased 34% BP: increased 34% Conoco-Phillips: increased 89% Conoco-Phillips: increased 89%

14. Oil Companies Cont… Californians Against Hidden Taxes (CAHT) and Californians Against Utility Company Abuse (CAUCA) Californians Against Hidden Taxes (CAHT) and Californians Against Utility Company Abuse (CAUCA) “grassroots public organizations” “grassroots public organizations” Fought against EV movement Fought against EV movement Heavily funded by Western States Petroleum Association Heavily funded by Western States Petroleum Association Members: included Mobil, Shell, Chevron, and Arco Members: included Mobil, Shell, Chevron, and Arco

15. Ethics Issues What do you think are some of the top ethical issues here? What do you think are some of the top ethical issues here? What is the real motivation behind lawsuit against CARB? What is the real motivation behind lawsuit against CARB? For Automakers For Automakers For Oil industry For Oil industry For Federal Government For Federal Government What conflicts of interest are present? What conflicts of interest are present? For Automakers For Automakers For Oil industry For Oil industry For Federal Government For Federal Government

16. Ethics Issues cont. Why did GM take back the EV1’s and crush them? 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 GM do everything they could to make the EV1 successful? If not, why not? Did CARB crumble under pressure? Did CARB crumble under pressure? Why are Hydrogen Fuel Cells “the next big thing?” Why are Hydrogen Fuel Cells “the next big thing?”