As noted here last week, the sparks flew at a Jan. 25 House Oversight and Government Reform Committee hearing titled “The Volt Fire: What Did NHTSA Know and When Did They Know It?” Three witnesses testified: National Highway Traffic Safety Administration (NHTSA) Administrator David Strickland, General Motors (GM) CEO Daniel Akerson, and John German of the International Council on Clean Transportation. My earlier post was based on newspaper accounts of the hearing. Over the weekend, I watched the archived video of the proceeding and read the testimonies and Committee Staff Report. Here are the key facts and conclusions as I see them:
- The Volt battery fire occurred on June 2, 2011 in the parking lot of a Wisconsin crash test facility. The car caught fire three weeks after the vehicle had been totaled, on May 12, in a side-pole collision. The fire caused an explosion that destroyed not only the Volt but three other vehicles. The blast hurled one of the Volt’s components (a strut) a distance of nearly 80 feet.
- The fire was caused by the leaking of coolant into the Volt’s powerful 300-volt battery, which had been punctured by the crash.
- NHTSA could have avoided the fire had it run down (“drained,” “depowered,” “discharged”) the battery after the crash. This raises obvious questions: Was NHTSA responsible for the fire? Was the agency’s six-month silence partly an attempt to hide regulatory incompetence?
- The Volt is a safe car; consumers should not fear to drive it. Gasoline-powered vehicles are more likely than battery-powered vehicles to burn after a crash. The post-crash explosion from a damaged gas tank can occur in seconds as opposed to weeks. Electric vehicle batteries are harder to puncture than gas tanks. NHTSA tried and failed to replicate the fire by crashing other Volt test vehicles. To induce another battery fire, NHTSA had to impale the battery with a steel rod and rotate it in coolant with special laboratory equipment.
- GM is retrofitting Volt batteries to make them stronger and more leak proof, and is updating safety protocols to ensure batteries are depowered after crashes.
- NHTSA kept silent about the fire for six months, acknowledging it only after Bloomberg News broke the story on November 11, 2011.
- GOP Committee members produced no smoking gun evidence of collusion to cover up the Volt battery fire, such as an email saying ‘We’ve got to keep this under wraps or it will depress Volt sales, jeopardize EPA’s fuel economy negotiations with automakers, and make President Obama look bad.’
- Nonetheless, the Obama administration’s heavy investment (financial and political) in GM in general and the Volt in particular creates an undeniable conflict of interest.
- NHTSA determined the cause of the fire in August 2011, yet waited until November 25 to advise emergency responders, salvage yard managers, and Volt owners how to avoid, and reduce the safety risks associated with, post-crash fires.
- Administrator Strickland’s protestations to the contrary notwithstanding, it is difficult to explain the agency’s secretiveness apart from political considerations that should not influence NHTSA’s regulatory deliberations.
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At a hearing Wednesday morning, GOP members of the House Oversight Subcommittee on Regulatory Affairs opined that General Motors (GM) and the National Highway Traffic Safety Administration (NHTSA) colluded to withhold information from the public about battery fires in the Chevy Volt, the plug-in hybrid car lavishly subsidized by the Obama administration as part of its bailout of the auto industry, the Washington Post reports.
NHTSA began to investigate the green car’s safety risk in June after a test car caught fire, but waited until November to inform the public. Subcommittee Chair Jim Jordan (R-Ohio) called the delay “deeply troubling,” particularly because the Government owns 26.5% of GM shares and an expanding market for electric vehicles is critical to the administration’s plan to raise fuel economy standards to 54.5 mpg.
“Strickland,” says the Post, “insisted there was no connection and said he had not been pressured by anyone from the administration on the investigation.” So why the delay?
Strickland said he would have gone public immediately if there were an imminent safety risk. He said it would have been irresponsible to tell people that something was wrong with the Volt while experts looked into the cause of the fire.
“I hear you. I don’t believe you,” said full Committee Chair Rep. Darrell E. Issa (R-Calif.). Issa has good reason to be skeptical. [click to continue…]
What is fast-becoming the main talking point against the proposed Keystone XL Pipeline is the claim that greater access to Canadian crude oil would not enhance U.S. energy security.
According to pipeline opponents, most of the petroleum products made from Keystone crude would be exported by Gulf Coast refiners to Europe, South America, and Asia rather than sold in U.S. domestic markets. Thus, opponents contend, Canadian oil coming through the pipeline would displace little if any oil imported from unstable, undemocratic, or unfriendly countries like Nigeria, Saudi Arabia, or Venezuela.
Rep. Ed Markey (D-Mass.) made a media splash with this talking point at a House Energy and Commerce Committee hearing last month. Keystone, he said, would not “back out” any oil we import from the Middle East if it simply turns the USA into a “middle man” for exporting diesel fuel and other finished petroleum products made with Canadian crude. He noted that nothing in TransCanada company’s long-term sales contracts with Gulf Coast refiners ensures that products made from Canadian crude would be sold to U.S. consumers.
Markey challenged TransCanada exec Alex Pourbaix to support legislation prohibiting Gulf Coast refiners from exporting petroleum products refined from Keystone crude. Clever! Pourbaix could not support Markey’s proposal without jeopardizing the sales contracts on which the pipeline project’s commercial viability depends. Yet he could not reject Markey’s proposal without appearing to confirm that Keystone is a plot by TransCanada and Gulf Coast refiners to export more oil overseas. Pourbaix did reject Markey’s proposal, but without explaining why an export ban would be a mischievous ‘solution’ to a non-existent problem. [click to continue…]
“Ethanol ventures backed by billionaire entrepreneur Vinod Khosla — including Range Fuels, which built a failed factory in Georgia — were given the green light for an estimated $600 million in federal and state subsidies,” reports The Atlanta Journal- Constitution,
Yet,” the AJC article continues, “none of the dozen or so companies financed or controlled by Khosla over the last decade has produced commercially viable [cellulosic] ethanol. Some failed or, hamstrung by unproven technology and insufficient capital, remain behind schedule.”
The cost to taxpayers? “To date, the companies have tapped about $250 million of the $600 million. Even though they are now unlikely to ever receive the full amounts, tens of millions have been lost.”
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Greenwire (subscription required) reports that EPA has sent its proposed regulation establishing greenhouse gas (GHG) New Source Performance Standards (NSPS) for new and modified power plants to the Office of Management and Budget (OMB) for review.
The stringency of the regulation is unknown to outsiders at this time. Environmental lobbyists hope EPA will set the bar so high that only natural gas power plants, or coal-fired plants equipped with carbon capture and storage (CCS) technology, can comply. Industry representatives want EPA to propose separate standards for coal- and gas-fired electric generating units reflecting the different carbon intensities of coal and natural gas.
No previous NSPS has ever required new power plants to use natural gas rather than coal, and none has ever required modified plants to switch from coal to natural gas. Industry representatives contend that Congress never intended the NSPS program to block construction of coal power plants or mandate fuel switching. They’re right. [click to continue…]
This just in. An AP story posted on Fox News reports that GM will ask Volt owners to bring in their vehicles to dealers for fire hazard-related structural modifications. Here’s the AP story in full:
AP Source: GM to call back 8,000 Chevy Volts
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Last week, Judge Lawrence O’Neill of the U.S. District Court in Fresno issued a preliminary injunction blocking enforcement of California’s Low Carbon Fuel Standard (LCFS), a regulation requiring a 10% reduction in the carbon content of motor fuels sold in the state by 2020. O’Neill concluded that the LCFS violates the Commerce Clause of the U.S. Constitution because it discriminates against out-of-state economic interests and attempts to control conduct outside the state’s jurisdiction. [click to continue…]
A favorite doomsday scenario of the anti-carbon crusade hypothesizes that global warming, by melting frozen Arctic soils on land and the seafloor, will release billions of tons of carbon locked up for thousands of years in permafrost. Climate havoc ensues: The newly exposed carbon oxidizes and becomes carbon dioxide (CO2), further enhancing the greenhouse effect. Worse, some of the organic carbon decomposes into methane, which, molecule for molecule, packs 21 times the global warming punch of CO2 over a 100-year time span and more than 100 times the CO2-warming effect over a 20-year period.
The fear, in short, is that mankind is fast approaching a “tipping point” whereby outgassing CO2 and methane cause more warming, which melts more permafrost, which releases even more CO2 and methane, which pushes global temperatures up to catastrophic levels.
In a popular Youtube video, scientists flare outgassing methane from a frozen pond in Fairbanks, Alaska. A photo of the pond, with methane bubbling up through holes in the ice, appears in the marquee for this post. Are we approaching the End of Days?
New York Times science blogger Andrew Revkin ain’t buying it (“Methane Time Bomb in Arctic Seas – Apocalyplse Not,” 14 Dec. 2011), nor does his colleague, science reporter Justin Gillis (“Artic Methane: Is Catastrophe Imminent?” 20 Dec. 2011).
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James Hohman of Michigan’s Mackinac Center for Public Policy estimates that state and federal incentives for GM’s plug-in hybrid vehicle, the Chevy Volt, total $3 billion. That works out to between $50,000 and $250,000 in taxpayer support for each of 6,000 Volts sold so far, “depending on how many of the subsidy milestones are realized.”
The per vehicle subsidy cost is bound to decrease as more Volts are sold and as current subsidies expire.
Nonetheless, as GM acknowledges, the typical Volt purchaser earns $170,000 a year, so it’s hard to avoid the conclusion that the Volt program is a reverse-Robin Hood wealth tranfer from middle-income households to GM, other big corporations, and high-income auto buyers.
Hohman’s analysis appears below in full. [click to continue…]
I keep coming back to this topic because fuel economy zealots are trashing our constitutional system of separated powers and democratic accountability. Only Congress can make them stop. Leading the counter-offensive is House Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.), who has been watch-dogging the Obama administration’s fuel economy agenda since 2009. [click to continue…]
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