Tuesday, August 4, 2015

"California Has a Plan to End the Auto Industry as We Know It"

From Bloomberg:

Mary Nichols, the California regulator who showed the world how to clean up smog, is pushing for all cars to be electric.
Sergio Marchionne had a funny thing to say about the $32,500 battery-powered Fiat 500e that his company markets in California as “eco-chic.” “I hope you don’t buy it,” he told his audience at a think tank in Washington in May 2014. He said he loses $14,000 on every 500e he sells and only produces the cars because state rules re­quire it. Marchionne, who took over the bailed-out Chrysler in 2009 to form Fiat Chrysler Automobiles, warned that if all he could sell were electric vehicles, he would be right back looking for another govern­ment rescue.

So who’s forcing Marchionne and all the other major automakers to sell mostly money-losing electric vehicles? More than any other person, it’s Mary Nichols. She’s run the California Air Resources Board since 2007, championing the state’s zero-emission-vehicle quotas and backing Pres­ident Barack Obama’s national mandate to double average fuel economy to 55 miles per gallon by 2025. She was chairman of the state air regulator once before, a generation ago, and cleaning up the famously smoggy Los Angeles skies is just one accomplish­ment in a four-decade career.

Nichols really does intend to force au­tomakers to eventually sell nothing but electrics. In an interview in June at her agency’s heavy-duty-truck laboratory in downtown Los Angeles, it becomes clear that Nichols, at age 70, is pushing regula­tions today that could by midcentury all but banish the internal combustion engine from California’s famous highways. “If we’re going to get our transportation system off petroleum,” she says, “we’ve got to get people used to a zero-emissions world, not just a little-bit-better version of the world they have now.”

In that speech in Washington, Mar­chionne was talking up the little-bit-better option. He touted the improved efficiency to be wrung from traditional engines and gasoline-electric hybrids. But Nichols isn’t scared of auto executives and has never ac­cepted their vision of what’s possible. (Gen­eral Motors said catalytic converters, an early advance in tailpipe pollution control that Nichols promoted in the 1970s, could kill the company. They’re commonplace today, and GM’s not dead yet.)

Even if most people outside California have never heard of Mary Nichols, she’s the world’s most influential automotive regu­lator, says Levi Tillemann, author of The Great Race, a book on the future of automo­bile technology. “Under her leadership, the Air Resources Board has been the driving force for electrification,” Tillemann says.

Nichols, who drives a tiny electric Honda Fit, acts as if she’s an unstoppable force. California’s goals for the adoption of elec­tric vehicle technology are the most strin­gent in the nation, but Nichols thinks they need to be even tougher. Regulations on the books in California, set in 2012, require that 2.7 percent of new cars sold in the state this year be, in the regulatory jargon, ZEVs. These are defined as battery-only or fuel-cell cars, and plug-in hybrids. The quota rises every year starting in 2018 and reaches 22 percent in 2025. Nichols wants 100 percent of the new vehicles sold to be zero- or almost-zero-emissions by 2030, in part through greater use of low-carbon fuels that she’s also promoting.

The 2030 target is what’s needed to meet Governor Jerry Brown’s goal, set in an ex­ecutive order, of an 80 percent reduction in greenhouse gas emissions by the middle of the century, Nichols says. The conven­tional internal combustion engine needs to be off the road by 2050 and, since cars last many years, on its way out of new-car showrooms around 2030.

Brown, 77, has had Nichols at his side as a clean-air regulator through both his gov­ernorships—his first two terms from 1975 to 1983 and his remarkable, ongoing sec­ond act. He made her a member of the Air Resources Board in 1975 and named her its chairman in 1979. By the time he returned to the capitol three decades later, Nichols had regained the chairman’s job, having been tapped by Arnold Schwarzenegger. “She’s smart. She’s honest,” Brown says. “There’s no daylight between what I think and what Mary thinks on climate change.”

Both Brown and Nichols emphasize that California must inspire and sup­port action in other states and coun­tries if there’s any chance to slow or stop climate change. “If the federal government can’t get it right, we in Cal­ifornia are going to take care of busi­ness,” Brown said in an April speech.

Next year, Nichols will be a key player, along with Obama administra­tion officials, in a review and update that will set the course for the national mileage standards and her own ZEV quotas. “This review will shape the next 20 years of transportation tech­nology worldwide,” says Diarmuid O’Connell, vice president of business development at Tesla Motors. Elon Musk’s company, devoted exclusively to electric cars, is an exception among automakers in pushing Nichols to move more aggressively....MORE