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When a referendum is requested, the law is suspended until the outcome of the referendum is determined. Propositions 29, 30 and 31 were referendums passed in the 2000 general election.

The problem for the auto industry is California's pioneering global warming measure represents an override of the federal government, one that other states may go along with.

Last week, California Attorney General Bill Lockyer joined 10 other attorneys general to write President Bush urging a federal response to global climate change. They named California and Massachusetts, which last year ordered carbon dioxide reductions by power plants, as evidence that states will take matters into their own hands without federal leadership.

The state activism is being cheered by environmentalists. Julia Levin, the California policy director for the Union of Concerned Scientists, said, "We hope this is the beginning of a national trend. We expect it to be."

Although supporters of the bill adamantly deny that it is retaliation against Washington for failing to adopt stricter mileage standards, the only way to reduce carbon dioxide emissions from cars is to burn less gasoline. That can be done only by driving less, using other fuel sources or improving fuel efficiency.

Levin said the measure was not intended to circumvent federal fuel economy standards. "The car companies may decide to do it through fuel economy, but that will be their choice," she said.

Since Congress adopted fuel efficiency standards in the mid-1970s, the mileage of cars on California's roads improved from 12.6 miles per gallon to about 20.7 miles per gallon today, according to a report issued in December 2001 by the California Energy Commission.

"However, consumers' growing preference for light trucks, particularly minivans and sport utility vehicles, which have lower average fuel economy, has caused fleet-average fuel economy to level off for the first time since 1973," the report said.

Although state officials haven't detailed how the requirements will play out, recent studies indicate fuel efficiency improvements would increase sticker prices of new cars by hundreds of dollars. Last year, the National Research Council did an analysis showing that the mileage on new cars could be improved from the current standard of 27.5 miles per gallon to 33.5 miles per gallon -- a 21.8 percent improvement -- at a cost to consumers of $690.

If carmakers were to lower vehicle weight, the price hike would not be as high, according to a study released in March by the U.S. Department of Energy. The study estimated sticker prices would go up $535 to get car mileage to 35.9 miles per gallon.

To achieve similar results for light trucks -- pickups, minivans and sport utility vehicles -- the cost would be slightly more. New light trucks today must meet an average of 20.7 miles per gallon, and the studies predict they could improve by 25 percent for between $961 and $1,260, depending on weight.

Environmentalists and air pollution experts say any increase in the cost of automobiles to comply with the global warming law will be offset by savings in gas purchases over the life of the vehicle.

The trade-offs between cost and environmental friendliness are certain to be at the center of the debate over the Air Resources Board regulations, when they are drafted.

In pushing the law, proponents have talked about the growing evidence of global warming and how it could devastate California's water supplies, coastline and economy. Motor vehicles account for 40 percent of the state's greenhouse gas production, according to the California Energy Commission.

To make its point, the Davis administration presented government experts for a press conference Friday to discuss how higher temperatures are shrinking snowpack, a key part of the state's water supply, and raising the sea level. Snowpack accounted for 45 percent of the state's water runoff in 1910 but now is only 35 percent, and in San Francisco, the mean seal level has jumped 7 inches since 1855, they said.

"You have to be deaf, dumb or blind not to see the impact on glaciers in Alaska," Davis said, adding later: "The worst thing to do, in my judgment, is nothing."

To read the legislation, go to www.leginfo.ca.gov and search on AB1493.
http://www.evworld.com/databases/shownews.cfm?pageid=news180702-06

Japan Government, Car & Energy Firms in Fuel Cell Projects

Japan goal to have 50,000 fuel cell cars on the road in Japan by 2010.

Source: Reuters [Jul 18, 2002]

TOKYO, July 18 (Reuters) - Japan's government said on Thursday it will work with automakers and energy firms in three-year projects to encourage the development of fuel cell technology for vehicles and households.

Fuel cells are seen as one of the leading environmentally friendly energy sources of the future. Using an electrochemical process to create electricity by mixing hydrogen with oxygen, they only emit heat and water as by-products.

But hydrogen in its natural gaseous state is difficult to store and distribute. There is also little consensus on what type of hydrogen source would work best.

"The aim of the projects is to see what problems arise when using fuel cells and developing an infrastructure, to ascertain whether in total -- including such things as maintenance -- they are actually good for the environment," a government official said.

In one project, automakers including Toyota Motor Corp 7203.T , Honda Motor Co 7267.T and Nissan Motor Co 7201.T , as well as General Motors Corp GM.N and DaimlerChrysler AG DCX.N DCXGn.DE , will participate in road tests.

Each automaker will provide one fuel cell vehicle for the tests. Five hydrogen supply stations in different parts of Japan will be set up to test different ways of refilling the hydrogen and examine safety issues.

But the prohibitive costs involved in developing the vehicles mean that ordinary consumers are unlikely to be able to afford fuel cell vehicles for another 10 to 20 years.

The Ministry of Economy, Trade and Industry has set aside 2.5 billion yen ($21.50 million) in this fiscal year's budget for the projects. ($1=116.30 Yen)

Source: PR Newswire [Jul 17, 2002]

TOKYO, July 17 -- General Motors Corp. announced today that it will be taking part in a project to demonstrate fuel cell vehicles in Japan.

The Japan Hydrogen & Fuel Cell Demonstration Project (JHFC) will be directed by Japan's Ministry of Economy, Trade and Industry (METI). GM, other automakers and energy companies will take part in the project, with a goal of better understanding fuel cell technology and how to create a hydrogen infrastructure. The project also will seek to educate the public about the use of fuel cells, and about hydrogen as a safe and clean fuel. Participants plan to use data generated in the project to support the establishment of standards and regulations pertaining to fuel cells and hydrogen.

"Japan is a very important market for fuel cell vehicles," said Larry Burns, GM Vice President of Research and Development and Planning. "GM is making great progress in the development of fuel cell vehicles and we're very happy that the Japanese government, like other governments in Europe and the U. S., is taking a leadership role in this area. A hydrogen infrastructure could come about sooner through automakers, energy companies and governments working together in projects like JHFC."

GM will bring its latest fuel cell vehicle, the Opel Zafira-based "HydroGen3," to Japan to take part in the demo program. The company is actively involved around the world in efforts to test fuel cell technology and speed the evolution of the hydrogen infrastructure. In addition to the Japanese demo program, GM also is a member of the California Fuel Cell Partnership and the recently announced Clean Energy Partnership in Berlin, Germany.

GM expects to commercialize fuel cell-powered vehicles as a sustainable business by the end of the decade.

General Motors (NYSE: GM), the world's largest vehicle manufacturer, designs, builds and markets cars and trucks worldwide. In 2001, GM earned $1.5 billion on sales of $177.3 billion, excluding special items. It employs about 362,000 people globally.

More information on General Motors advanced vehicle technologies and environmental performance can be found at www.gmability.com
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Bluetooth May Drive High-tech Cars

Bluetooth allows various components of telematics systems to "talk" to each other through radio frequencies within a 30-foot range.

Source: CNN [Jul 16, 2002]

Very rarely has the death of a venture elicited as many "told you so's" as when Ford Motor Co. pulled the plug last month on Wingcast LLC, its attempt to give vehicles all sorts of onboard communications capabilities.

Analysts said the 18-month old venture, which never brought a product to market, was an expensive stab at using outdated analog technology to perform ambitious communications tasks known as telematics.

Now the automotive telematics industry is looking to a new savior: the short-range digital wireless communications standard known as Bluetooth.

A Nordic invention named for a 10th-century Viking king, Bluetooth allows various components of telematics systems to "talk" to each other through radio frequencies, allowing a driver to check e-mail, get directions, call for help, or even unlock the car if the keys are left inside.

With a 30-foot range, Bluetooth makes it possible to operate a cell phone with voice commands instead of hands -- even from outside the vehicle. The technology is already being used by consumers to network cell phones, handheld computers, laptops and printers.

Using Bluetooth in the car, a cell phone could sit in a driver's pocket or cup holder instead of a special cradle that would have to be replaced upon changing phones.

The technology would allow a cell phone to work as a modem, downloading movies, music and navigation information and funneling it into the car's onboard computer and onto displays.

The current leader in auto telematics is General Motors Corp.'s hard-wired OnStar system, which doesn't use Bluetooth.

"It has to be about flexibility, simplicity and affordability, or telematics will continue to struggle," said Chrysler Group telematics chief Jack Witherow.

The initial version of UConnect will offer voice dialing and an audio address book capable of storing up to 32 telephone numbers. Other yet-to-be-announced features will be available in the factory-installed version.

Designed to handle up to five phones per car, the services will appear as charges on a monthly cell phone bill.

"We think we ought to stick to our core strengths," said Witherow.

"We're still committed to telematics, but how we'll make good on that commitment has changed," said Ford spokesman Paul Wood, adding that the company has not yet settled on a new plan.

Besides wireless downloads, Bluetooth will allow the car's components to "speak" to the driver.

For example, an alternator that may be six months from failing could trigger the telematics system to advise the driver and automatically call the dealer to order a replacement, said Jim Geschke, who runs the telematics business for automotive supplier Johnson Controls Inc.

One of the reasons Ford says it was caught off guard about recent problems with tread separation in Firestone tires and related accidents in its vehicles was an ineffective system for gathering accident and warranty claim data.

Robust Bluetooth telematics might have caught the problem in time, said Forrester Research's Mark Dixon Bunger.

For now, OnStar is the standard bearer in auto telematics with more than 2.5 million subscribers, according to Don Butler, vice president of OnStar planning and business development.

Launched in 1996, OnStar is not turning a profit despite its adoption by several Japanese and German automakers. Experts expect OnStar, which uses wires along with built-in wireless connectivity, to be eclipsed by Bluetooth-fueled systems.

"Customers want some cell phone connectivity but they don't want to worry about wires and microphones," said Mike Wujciak, an analyst with Cap Gemini Ernst and Young.

Butler insists his service's technology is more reliable than Bluetooth, because you don't depend on a portable phone that can be lost.

Chrysler's UConnect, however, takes the automaker out of the cell phone and service-providing business.

Instead, Chrysler hopes to earn revenue from the sale of Bluetooth units and perhaps receive a fee for each customer it refers to an outside service provider.

"It will be the flexible system that's going to win in the end," said Wujciak.

Yet while Bluetooth-based systems might provide more flexibility, the fact that OnStar counts more subscribers than all other telematics providers combined could make it difficult to overtake.

Staff Reporter of THE WALL STREET JOURNAL July 25, 2002

Honda said Wednesday it is the first car maker to receive certification to market a fuel-cell vehicle from U.S. and California environmental regulators. The company said it will begin leasing fuel-cell powered Honda Civic FCX cars to selected customers beginning later this year.

Honda expects it on road by year's end

John Koopman, Chronicle Staff Writer

Thursday, July 25, 2002

URL: http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2002/07/25/MN13709.DTL
Before the year is over, someone somewhere in California will be driving a vehicle powered by hydrogen.

That was the forecast delivered by Honda on Wednesday, when it announced that the state and federal governments had certified its new fuel cell cars.

Honda's FCX is the first fuel cell car to be certified by the Environmental Protection Agency and the California Air Resources Board as a low-emissions vehicle.

The car is awaiting safety and occupant protection certification from the federal government. Art Garner, a spokesman for Honda, said certification was forthcoming and that at least one fuel cell car would be on the road by the end of the year.

"This certification is a first step, but an important step, in the development of the fuel cell car," Garner said.

Fuel cells combine hydrogen and oxygen to generate electricity and power the drive train of the vehicle.

Honda is negotiating a lease that would put one of the vehicles on the street. Garner would not say whom the company was talking to. The lessee probably will be a municipality or other government agency that has a fleet of cars and access to a hydrogen pumping station, he added.

The pumping station is the big issue, because the stations are rare. They are being installed near Los Angeles for a bus fleet that will be experimenting with fuel cell vehicles and also at the California Fuel Cell Partnership in Davis. AC Transit is planning to install one in or near Oakland for its own fuel cell project.

"This is an important milestone for the automobile industry that holds the promise of cleaner air for all Americans," said Jeff Holmstead, assistant administrator for the EPA's Office of Air and Radiation.

Honda hopes to have about 30 vehicles operating in California and Tokyo -- one other spot where hydrogen pumping stations are available -- in the next two to three years.

Honda plans to collect data on how well its fuel cell car holds up. Garner said the company would prefer to lease vehicles to an agency that would use them every day, in real-world environments, and put them through their paces.

The cars seat four people and have a range of about 220 miles and a maximum speed of 93 mph.

While the new technology is promising, it is still in its infancy and no one knows whether it will be the next big thing in transportation.

Fuel-cell vehicles are an improvement over electric cars, because their power supply can be taken on board, and they are cleaner than hybrid cars, which use both electric and internal combustion engines.

The downsides are their cost, which are thousands of dollars higher than standard autos, and the difficulty in developing a wide array of hydrogen pumping stations.

Some automakers have been experimenting with a process in which hydrogen is created through a chemical process involving ethanol or another petroleum- based product. That would make it easier to switch gas stations over to a different fuel type, but it also increases the cost of the individual vehicles and involves some pollution.

The Honda FCX uses compressed hydrogen as it currently works.

The fuel cell engine requires a great deal of platinum, which is expensive, said Csaba Csere, editor of Car and Driver magazine. Until engineers find a different material to use, the cars will remain expensive. Even mass production won't help much, he said.

Similarly, refitting gas stations to provide hydrogen is a huge project, and producing hydrogen causes pollution because it uses electricity or other energy sources.

It will take many more years, perhaps decades, to determine whether fuel cell cars are the wave of the future, Csere said.

"The thing you have to remember is that there is no consumer demand," he said. "Polls show most people favor doing something about global warming, and then they go down to their dealership and buy a Ford Explorer."

Robert Moore, director of the Center for Fuel Cell Studies at UC Davis, said we'd know more by 2010. In that time, he said, engineers will work and rework the fuel cell technology and vehicle drive trains, and others will look for ways to deliver the hydrogen to cars in great quantities across the land.

"Really, no one can say whether this will take off," Moore said. "If I knew that, I wouldn't be sitting here talking about it. I'd be out buying stock."

E-mail John Koopman at jkoopman@sfchronicle.com.

Callifornia Air Resources Board ev Loan Program

Many people have heard about electric vehicles (EVs), but few have driven them. To encourage the leasing of EVs by public fleets, the Air Resources Board, the South Coast Air Quality Management District, and the Department of General Services have launched the ev Loan Program. Through this short-term loan program, state and local governmental agencies can experience the benefits of an EV.

How does the program work?

At no cost to program participants, the ev Loan Program provides:

· An electric vehicle for one month.

· Temporary installation of any charging infrastructure that is needed.

· A toll-free phone number for you to use if you have any questions.

We will arrange for you to pick up the vehicle and help train your staff in its use. After the loan, you'll have the opportunity to evaluate the vehicle and describe your experiences. If you decide that EVs would make a good addition to your fleet, we can help you lease a vehicle and arrange for installation of charging equipment.

How will the ev Loan Program benefit public fleets?

· A no-risk opportunity to experience the many benefits of electric vehicles.

· Gain "real-world" experience with electric vehicles.

· Develop a good understanding of vehicle range, reliability, and operating costs.

· Determine if these vehicles meet your fleet needs.

· Make an informed decision on whether to lease an electric vehicle.

· Showcase your agency's concern about environmental issues.

Program Eligibility

You must represent a state or local public agency that is interested in electric vehicles, but is not currently leasing one. You must be willing to pick up and return the vehicle to a State garage or, in outlying areas, another convenient location, and use the vehicle throughout the loan period. Loan locations are Sacramento, the greater Los Angeles area, San Francisco, Oakland, and San Diego. You must meet minimum electrical requirements for the installation of charging equipment, or have access to electric vehicle charging facilities. Finally, if you are a local public agency you must provide the necessary insurance documentation.

What vehicles are available?*

· · GM EV1

· · Honda EV Plus

· · Chevrolet S10 pickup truck

· · Ford Ranger pickup truck

· · Toyota RAV4

* Please note that not all vehicles are available in all areas.

Who can participate?

The program is open to public agencies, including the State of California, the University of California, California State University, and political subdivisions of the state, including city and county government, and Community College Districts.

How to contact us

For more information about the program, please contact Ms. Lisa Kasper, ev Loan Program Manager, Air Resources Board, at (916) 327-2932; fax (916) 322-3923; email lkasper@arb.ca.gov.

How do I sign up?

If this sounds like a program you are interested in, please complete and submit an ev Loan Program Interest Form.
Wall Street Journal July 25, 2002
review of Tuxedo Park by Jennet Contant
Doing Battle in the Lab -- And off the Books

As war threatens, a banker funds the research that will help the Allies to win it.

By L. GORDON CROVITZ

Mr. Crovitz is senior vice president of Dow Jones for electronic publishing.