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Will Biden ease the gas pedal on his EV push?

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Feb 20, 2024 View in browser
 
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By Christian Robles

Presented by CONSOL Energy

President Joe Biden drives a Cadillac Lyriq through the showroom during a tour at the Detroit Auto Show.

President Joe Biden drives a Cadillac Lyriq through the showroom during a tour at the Detroit Auto Show in Detroit on Sept. 14, 2022. | Evan Vucci/AP

The Biden administration may be poised to give automakers a bit more time to ramp up their switch to electric vehicles, delaying the steepest cuts in planet-warming emissions until the 2030s.

That potential decision is either an election-year concession that will slow climate action — or, as some see it, a realistic reaction to an auto industry that needs time to scale up.

Unnamed sources told The New York Times that the White House intends to finalize a relaxed version of the Environmental Protection Agency’s proposed tailpipe emissions rule. That would likely follow a less aggressive plan EPA outlined last year, known as “Alternative 3,” Jean Chemnick wrote this morning for POLITICO’s E&E News.

Both EPA’s draft rule and Alternative 3 seek to achieve a 56 percent reduction in average fleetwide vehicle emissions by model year 2032, compared with 2026.

But Alternative 3 would mandate an emissions reduction of only 12 percent by model year 2027, compared with the draft rule’s requirement of more than 18 percent. The sharpest cuts would instead come after model year 2029.

That could give automakers and other companies more time to build out EV charging infrastructure, lower battery costs and drive consumer demand, Arthur Wheaton, director of labor studies at Cornell University’s School of Industrial and Labor Relations, told Jean.

The result could be more EVs on the road in the long run, he said.

But environmentalists and consumer and public health groups say the weaker rule will not only result in more planet-warming emissions, but it could slow needed technology advances.

“The concern is that by slowing the pace of change you are allowing manufacturers to slow-roll technology development,” Dave Cooke, senior vehicles analyst with the Union of Concerned Scientists, told Jean.

The administration has not announced its decision on the tailpipe rule, which is under review at the White House and expected to come out in March. The regulation is one of several that environmental groups are anxious to see the administration release soon enough to prevent a possible second Trump presidency from undoing them.

In a statement tonight to POLITICO’s Robin Bravender, White House climate adviser Ali Zaidi said President Joe Biden’s “vision” on electric vehicles is triggering action that “meets the moment on climate and positions American workers to lead globally on this critical technology.”

The EPA rule is not the only driver behind EV sales. The Biden administration has poured billions of dollars into boosting the industry, from incentives for domestic manufacturing to a $7,500 tax credit for buyers of some new EVs.

That has helped fuel a boom in EV sales, which topped 1.4 million last year and neared 10 percent of all new vehicle sales in December. Earlier this month, the Treasury Department announced that more than 25,000 people had claimed the tax credit as an instant rebate at car dealerships, which became an option Jan. 1.

 

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

 

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Today in POLITICO Energy’s podcast: Josh Siegel speaks with retiring GOP Rep. Kelly Armstrong, who running for governor of North Dakota.

 

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Tesla vehicles charge at a station.

Electric vehicles charge at a Tesla station in Emeryville, California. | Godofredo A. Vásquez/AP

Tesla wins highest portion of federal EV charging dollars
Tesla is installing more electric vehicle charging plazas than any other company receiving funds from the 2021 bipartisan infrastructure law, writes David Ferris.

The company has won 13 percent of all EV charging funding from the law, totaling more than $17 million to build 41 stations, according to an analysis by EVAdoption, an EV data consultancy.

Experts told David there is little risk with having Tesla take the lead in building out a government-backed EV charging network. But for Tesla, accepting federal dollars means the company will need to follow new rules, such as including credit card readers at EV charging stations.

Supreme Court hears case to allow new lawsuits against old regulations
Supreme Court justices seem to be split over whether new companies should be allowed to sue over years-old federal rules, writes Pamela King.

At a hearing this morning, some justices worried that an affirmative ruling, in addition to the court's likely decision to overturn the Chevron doctrine, would unleash a wave of lawsuits over federal environmental, public safety and other rules.

Other justices questioned whether an affirmative ruling would lead a large number of young businesses to file lawsuits.

 

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In Other News

Wall Street retreats on climate: Large financial firms like JP Morgan, Bank of America and BlackRock have scaled back their commitments to tackle climate change in recent weeks amid Republican attacks and legal concerns.

Georgia community solar: Georgia's largest state utility, Georgia Power, is opposing Republican-led efforts to expand the state's community solar program.

 

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Learn about the economic hurdles, technical challenges, and lifestyle trade offs of moving away too quickly from fossil-based natural resources, like coal, in favor of intermittent power sources, like wind and solar. Not So FastTM, presented by CONSOL Energy, is a public awareness campaign that advocates for a measured, analytical, and moral approach to our nation’s energy policies. Join us at theCOALhardtruth.com.

 
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Floodwaters overwhelm a neighborhood in LaPlace, Louisiana, after Hurricane Ida swept through the area in August 2021.

Floodwaters overwhelm a neighborhood in LaPlace, Louisiana, after Hurricane Ida swept through the area in August 2021. | Steve Helber/AP

Louisiana officials hope a judge blocks the federal government's efforts to raise flood insurance rates, arguing that they harm the state's economy.

The renewables chief for the Bureau of Ocean Energy Management, Karen Baker, spoke with E&E News about the future of offshore wind and the agency's role in bolstering the technology.

The Biden administration announced $5.8 billion to address water contamination and renovate water infrastructure in all 50 states, U.S. territories and the District of Columbia.

Katie Porter, a Democratic candidate for California's open Senate seat, exclusively shared her six-point plan to combat climate change with E&E News a week after rival Rep. Adam Schiff (D-Calif.) released his plan.

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

 

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