Looming auto strike crashes into Biden’s EV goals

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Sep 14, 2023 View in browser   By Arianna Skibell Presented by United Auto Workers members and others gather for a rally in Detroit. | Bill Pugliano/Getty Images Time is running out to avert an autoworker strike that could send a cascade of economic and political consequences from Michigan dinner tables all the way to the White House. Members of the nearly 150,000-person United Auto Workers could strike as soon as midnight if they do not reach a deal with Ford, General Motors and Stellantis. That could shutter some of Michigan's biggest factories for weeks, threatening a regional recession that could spill over into neighboring states. A work stoppage could undermine automakers efforts’ to ramp up electric vehicle production at a critical time for curbing planet-warming pollution from gasoline-powered cars — and, as David Ferris writes this morning, could even cause long-term damage to the big three’s efforts to increase their share of the growing EV market. It also threatens political harm to President Joe Biden and other Democrats in the key battleground state, writes Scott Waldman. A strike is “very likely,” Rep. Debbie Dingell (D-Mich.) said this afternoon. Driving the collision Biden, who calls himself the “most pro-union president in American history,” has sought to make his support of U.S. workers a centerpiece of his climate agenda. But the UAW has expressed frustration that Biden’s policies are subsidizing the creation of factories for electric car parts in nonunion states. In addition, much of the electric vehicle workforce gets lower wages than the workers who make internal-combustion engines. A prolonged strike could cost workers and auto companies billions. A 2019 strike against GM, which involved about 50,000 workers and lasted six weeks, tipped the state into a three-month recession. The climate repercussions of the labor dispute present a “mortal threat” to Biden’s efforts to lower greenhouse gases, a senior labor official not involved in the talks told Scott. If the companies fail to increase wages for the newly created electric vehicle industry jobs, it will demonstrate to the world that climate policy does not provide middle-class employment, the labor official argued.   It's Thursday — 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.   A message from Gevo: We need low-carbon flight. Now. Advancing toward net-zero emissions in aviation by 2050 requires the use of U.S. biofuels, including ethanol that can be converted into jet fuel. But the future of American-made sustainable aviation fuel hangs in the balance, depending on guidance pending from the U.S. Treasury Department. We believe adoption of Argonne GREET in pending Treasury guidance is essential to ensure biofuel producers can continue to contribute to cleaner flight.   Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Alex Guillén breaks down three legal challenges the D.C. Circuit is set to hear this week that could strengthen or hinder Biden’s electric vehicle goals.   A message from Gevo:   Power Centers Rep. Chip Roy (R-Texas) speaking with reporters outside the House chamber Wednesday. | Francis Chung/POLITICO Spending fight stymies House As a government shutdown looms, House Speaker Kevin McCarthy may have no other choice but to cave to the demands of his far-right flank or risk losing his speakership, write Emma Dumain, Nidhi Prakash, Kelsey Brugger and Andres Picon. “We’re in trouble is what it means,” Rep. Mike Simpson (R-Idaho) said. “What I told everybody in Idaho for the last six weeks: to fasten their seat belts, because it’s going to be a shit show … for four months." Water control heads to states The Biden administration is restoring significant state and tribal authority over water resources and expanding their leverage on infrastructure permitting decisions, including for pipelines, writes E.A. Crunden. The Environmental Protection Agency reversal of Trump-era limitations on state permit approvals is also intended to gives states, tribes and territories a direct role in determining the duration of review processes. EU investigates Chinese e-cars European Commission President Ursula von der Leyen's announcement of an anti-subsidy investigation into Chinese electric vehicles risks sparking a trade war with Beijing. Barbara Moens and Camille Gijs break down what you need to know about the probe — and what happens next. In Other News Grave impacts: Climate change is unburying graves. It's an expensive, "traumatic" and confounding problem. People: Meet the oil man in charge of leading the world away from oil.   GROWING IN THE GOLDEN STATE: POLITICO California is growing, reinforcing our role as the indispensable insider source for reporting on politics, policy and power. From the corridors of power in Sacramento and Los Angeles to the players and innovation hubs in Silicon Valley, we're your go-to for navigating the political landscape across the state. Exclusive scoops, essential daily newsletters, unmatched policy reporting and insights — POLITICO California is your key to unlocking Golden State politics. LEARN MORE.     Subscriber Zone A showcase of some of our best subscriber content. Edgar Dusacre, a French scientist and member of the association 4P Shore & Seas, shows microplastic waste collected in 2020 from a beach in southwestern France. | Mehdi Fedouach/AFP/Getty Images Human activities have pushed the Earth past a stable threshold in six of nine key indicators that scientists use to assess planetary health, according to a new report. The only U.S. power plant project ever to capture carbon dioxide at scale is back online after being idle for more than three years. A panel of federal judges on Thursday expressed skepticism toward challenges to an EPA tailpipe emissions rule that would boost electric vehicle sales. That's it for today, folks! Thanks for reading.   Enter the “room where it happens”, where global power players shape policy and politics, with Power Play. POLITICO’s brand-new podcast will host conversations with the leaders and power players shaping the biggest ideas and driving the global conversations, moderated by award-winning journalist Anne McElvoy. Sign up today to be notified of the first episodes in September – click here.       A message from Gevo: Failure to choose an appropriate model and method for determining eligibility for sustainable aviation fuel tax credits will: · Slow progress on decarbonizing aviation · Limit opportunities for American agriculture to contribute to this clean energy transition · Leave millions of tons of achievable carbon reduction on the table https://gevo.com/ira/     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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