CARB insures that U-Haul will be profitable through 2025
11/17/2011 2 Comments
No this is not a stock buying advice column, it is really a plea for some sanity in Sacramento.
The climate warmers at KQED Climate Watch has the story:
On Wednesday, just as the Obama Administration proposed strict new fuel efficiency standards for 2017-2025-model cars and light trucks, the California Air Resources Board leapfrogged Washington with its own package of regulations designed to further reduce emissions from passenger vehicles.
The proposed “Advanced Clean Cars” regulations package has four components, including a greenhouse gas emissions standard that matches the new federal one, which isn’t surprising since California played a key role in drafting the new federal proposal.
The other three prongs of the package are new smog-reduction rules, a program designed to spur the growth of zero-emissions vehicle production and sales, and the construction of new hydrogen fueling stations.
According to CARB, the Advanced Clean Cars regulations are designed to deliver:
• A 47% reduction of greenhouse gas emissions by 2025, compared to today’s levels;
• A further 75% reduction in smog-forming emissions by 2025;
• One in seven new cars sold in 2025 (15.4 percent) be a zero-emission or plug-in hybrid vehicle;
• A total of 1.4 million zero-emission and plug-in hybrid vehicles on the road in California by 2025;
• A reduction of 40 million tons of greenhouse gases in 2025, the equivalent of taking eight million cars off the road; and,
• A savings of $5 billion in operating costs in 2025 for California drivers.
This will rise to $10 billion in 2030 when more advanced cars are on the road.
Whew. CARB’s Zero Emissions Vehicles (ZEV) program aims to have battery, fuel cell, and plug-in hybrid electric vehicles account for up to 15% of California’s new vehicle sales in 2025, . . .
You can read the rest of the article HERE.
How will CARB convince people to buy these Advance Clean Cars? General Motors Chevy Volt sales target for 2011 was 10,000 plug-in hybrid sedans. Nine months into the year they had only shipped 3,895 off the lot, not a big seller. Nissan Leaf sold about 6,102 off the lot over the same period, a better selling vehicle. However, not all those Chevy and Nissan hybrids were sold in California.
To meet the CARB Requirements dealer would have to sell more that 117,000 ACC vehicles a year or a little under 10,000 hybrid cars a month in California. Given the poor sales performace so far, how will CARB mandate the sale of over 10,000 vehicles per month? Currently Californian’s are buying about 108,000 carbon fueled light vehicles a month in the state. So about one in ten would have to be hybrids. Not going to happen! There are not enough guilt ridden liberal environmentalist in the state to meet CARB’s goals.
Oh? You say CARB can force the price of gas and diesel to $10.00 a gallon, and that might encourage even more hybrid customers, perhaps even a conservative or two. The only company that benefits from $10.00 a gallon fuel will be U-Haul, as companies and people flee the state.