Automakers Call on CARB to Explain How Electric Car Mandate Will Work

24 October 2000
Automakers Call on CARB to Explain How Electric Car Mandate Will Work
    WASHINGTON, Oct. 24 The Alliance of Automobile
Manufacturers today called on the California Air Resources Board (ARB) to
explain how it would make a reality of its dream that 10 percent of new cars
sold in the state by 2003 be Zero Emission Vehicles (ZEVs).
    "Everyone, including ARB, agrees that California's ZEV mandate presents
enormous obstacles," said Alliance President & CEO Josephine S. Cooper. "The
mandate requires that policymakers reconcile the challenges posed by the
extraordinary cost of battery-powered vehicles, the low customer demand for
them, the limits of battery technology, and the dearth of charging stations.
Given these obstacles, how does ARB plan to make this mandate work?"
    ARB voted 10-0 on September 8 to retain the basic ZEV requirements, and
ARB staff was directed to develop and propose regulatory modifications and
other steps that address the challenges associated with implementation of the
ZEV program. The Board acknowledged the high costs of electric vehicles,
concerns about low market demand and a lack of infrastructure. The Oct. 25
workshop in El Monte, California will focus on these issues.
    "Automakers look forward to hearing what the Board plans to do to pave the
way for the ZEV program in spite of the formidable roadblocks ahead," Cooper
continued. "But we are disappointed with the ARB staff documents that just
list ideas haphazardly and do not address the key issues. In the spirit of
cooperation, since we are gravely concerned about the pending financial
disaster for California consumers and family-owned dealerships, we pose the
biggest questions ARB needs to answer: How will ARB fund its ZEV program? ARB
reports acknowledge that high battery costs place a more than $21,000 premium
on each electric vehicle; consumers will not pay this premium; and automakers
are not expected to sell electric vehicles at a loss. Who then will pay the
premium?" she added. "We expect ARB to have some answers -- not more
questions!"
    "How will ARB address low consumer demand?" Cooper asked. "If auto dealers
cannot sell electric vehicles, and do not re-order more, what will ARB do?
Will the state buy them, or will the state mandate that government fleets
purchase electric vehicles to increase demand? Federal, state and local
governments operate more than 350,000 vehicles, virtually none of which are
electric. What commitments will ARB make for building the infrastructure?
California currently has only 400 charging stations. That's one charging
station for every 6 ZEVs on the road. To maintain that ratio, the state will
need to build about 8,350 charging stations by 2003. What are the state's
plans and financial commitments?" Cooper asked.
    "The biggest question of all is: Are California taxpayers ready to foot
this $1 billion annual bill?"