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EVs ride shotgun in new climate rule

Your guide to the political forces shaping the energy transformation
Apr 12, 2023 View in browser
 
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By Arianna Skibell

Exhaust flows out of the tailpipe of a vehicle in Miami.

Exhaust flows out of the tailpipe of a vehicle in Miami. | Joe Raedle/Getty Images

The Biden administration has proposed the most aggressive pollution restrictions on the auto industry in U.S. history, in a bid to prod car giants to relegate gasoline-powered vehicles to the rearview mirror.

The new EPA rules, announced today, could significantly limit planet-warming emissions from passenger cars and heavy-duty trucks — major drivers of the climate crisis. The goal is to make electric vehicles 67 percent of new car sales by 2032 and transform the way Americans travel.

In other words, the standards are a "big f--ing deal," as President Joe Biden said in another context, write POLITICO reporters Tanya Snyder, James Bikales and Alex Guillén.

After taking office, Biden wrangled the auto industry to agree to boost electric vehicle sales to 50 percent of new cars and trucks by decade’s end. EPA’s rules would turn that voluntary target into a more ambitious regulatory requirement.

The industry has the help of billions of dollars in subsidies through last year’s landmark climate law. New and enhanced tax credits will boost efforts to build EV factories and charging stations in an effort to bring down consumer costs.

But automakers remain somewhat wary. A $7,500 tax credit for electric car buyers — meant to boost demand — is available for only a limited number of models, thanks to strict requirements that the cars be made and sourced in the United States or its closest trading partners.

The supply of minerals needed for EV batteries, charging stations, affordable models and consumer interest are also a concern — not to mention whether the electric grid is ready to supply the extra energy needed to power EVs.

And the EPA proposals, which will be subject to a public review (and likely many legal challenges), are ruffling Republican feathers on Capitol Hill.

“This is short-sighted policy that puts the interests of the American people last, and EPA officials should be prepared to provide Congress [with] an explanation,” House Oversight and Accountability Chair James Comer (R-Ky.) told E&E News reporter Emma Dumain.

There’s already speculation that GOP lawmakers will attempt to overturn the rules through the Congressional Review Act, a legislation tool used to repeal recent federal regulations (that can be vetoed by the president).

Still, Democrats and electric vehicle advocates say the rules are a game-changer. The administration said the new standards would save the economy $850 billion to $1.6 trillion between 2027 and 2055, avoid about 20 billion barrels in oil imports and save the average buyer of a car or light-duty truck $12,000 over the vehicle’s lifetime.

 

It's Wednesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net.

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Today in POLITICO Energy’s podcast: Annie Snider breaks down the Biden administration's efforts to force water delivery cuts on states that rely on the drought-stricken Colorado River.

Do you know of large residential or government buildings constructed within the past decade that have needed significant repairs due to weather-related flooding or storm damage? Help us investigate the impact of climate change by sending us the addresses.

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A Nerd's Guide

Bundles of ballot papers.

Anthony Devlin/Getty Images

The Biden administration’s newest push to get more Americans driving electric vehicles rests on two granular pollution regulations that could transform the auto industry.

Alex Guillén breaks down what to know about the 1,475 pages of proposed rules that EPA chief Michael Regan said are meant to spur “innovation and creativity” from carmakers.

 

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Power Centers

Electric transmission lines in San Francisco on a sunny day.

Electric transmission lines in San Francisco on a sunny day. | Justin Sullivan/Getty Images

Head west
The Biden administration gave final approval to a $3 billion transmission line Tuesday that will carry electricity from the country’s largest onshore wind farm in Wyoming and help move more low-carbon energy into California, writes Jason Plautz.

The 732-mile TransWest Express Transmission Project is one of the largest transmission projects to reach final approval on the Western grid in decades. Once built, it will add 3,000 megawatts of transmission capacity and connect three planning regions across four states as the U.S. seeks to ship more renewable power to areas of high demand in the West.

The backstory
Justin J. Pearson, one of two Black Democratic lawmakers expelled last week from the Tennessee House by the chamber’s Republican supermajority, once took on an oil pipeline — and won, writes Mike Soraghan.

The fight Pearson led against the Byhalia Connection crude oil pipeline got national attention — Justin Timberlake and Al Gore joined his cause.

Russia's war
A top Kyiv official has accused Hungary of helping to fund Russian war crimes against Ukraine through various energy deals, writes Gabriel Gavin.

“You have to be completely blind not to see what kinds of crimes you are sponsoring. Buying more gas from the Russians means you are giving them more capacity to escalate the war,” said Oleg Ustenko, economic adviser to President Volodymyr Zelenskyy.

In Other News

Tax credits: Green tax credits are likely to be more popular — and expensive — than expected.

Analysis: Natural gas imports are testing the EU's resolve to quit Russian fossil fuel.

 

LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.

 
 
Subscriber Zone

A showcase of some of our best subscriber content.

Rendering of hydrogen energy storage gas tanks with wind turbines and solar panels

Vanit Janthra/iStock

The Biden administration can tie tax credits to requirements that "green" hydrogen emit little or no carbon, while still encouraging the industry's rapid growth.

A Ukrainian proposal asking Western fossil fuel firms that made record profits last year to hand over some of that cash to Kyiv is picking up steam in some EU capitals.

U.S. Treasury Secretary Janet Yellen said Tuesday that she was encouraged by initial efforts to reform the World Bank so it could better tackle issues such as climate change.

That's it for today, folks! Thanks for reading.

 

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Arianna Skibell @ariannaskibell

 

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