Senate Democrats have settled on how to funnel more money into the automotive sector using all-electric vehicles and environmentalism. Majority Leader Chuck Schumer and West Virginia's Joe Manchin have reportedly agreed on a proposal that would expand the $7,500 tax credit for EVs while also introducing a new $4,000 subsidy for used models.
But that's just to kick things off. The legislative package is likewise said to include $369 billion that's been earmarked for climate and energy spending. For automakers, that means massive financial help from the government whenever they want to convert their existing factories into the kind that build all-electric vehicles. Though it may not be limited to EVs, as the updated language now makes fuel cell vehicles similarly eligible for the proposed industry subsidization.
With the last several months delivering record-breaking fuel prices, as society endures what has undoubtedly been the largest spike in energy cost and inflation since the 1970s, everyone has been hoping to catch a break this summer. Some have even gotten theirs. While things are still looking exceptionally bleak in the long term, the United States appears to be enjoying a modest reprieve.
On Monday, General Motors, Ford, Stellantis, and Toyota Motor North America reportedly asked the United States Congress to lift the existing cap on the $7,500 federal tax credit for electric vehicles. Though automakers petitioning the government for free money is hardly new business.
With the Biden administration hoping to transition the United States toward all-electric vehicles, it has set a goal of commissioning the construction of a nationwide network of 500,000 EV charging stations by 2030. But saying you’re going to do something as part of a $1-trillion infrastructure plan is a lot easier than actually doing it because there are a lot of steps that have to be taken before a plan can effectively be put into action. This is called planning and it’s something the government occasionally engages in to ensure a program is successful. As such, the Biden administration is issuing a series of standards and requirements for federally funded electric vehicle charging stations.
“To support the transition to electric vehicles, we must build a national charging network that makes finding a charge as easy as filling up at a gas station,” said U.S. Transportation Secretary Pete Buttigieg. “These new ground rules will help create a network of EV chargers across the country that are convenient, affordable, reliable and accessible for all Americans.”
Despite the United States confronting some of the highest energy prices in its history, the Biden administration has canceled oil and gas lease sales in the Gulf of Mexico and Alaska’s Cook Inlet.
According to the American Automobile Association (AAA), national fuel prices are averaging out to a whopping $4.43 per gallon of regular gasoline. Diesel is much higher at $5.56 and is speculated to endure mass shortages in the coming months as reports from the Northeast have indicated there are already seeing record-low inventories. Over the past twelve months, fuel prices have risen by nearly $1.50 per gallon and most market analysts expect rates to continue moving upwards through the summer. Though they’re not all in agreement as to who should be blamed for our current predicament.
On Thursday, The UAW and a group of environmental groups based in the United States filed numerous lawsuits in an effort to block the U.S. Postal Service (USPS) from moving forward with plants to purchase gasoline-powered next-gen delivery vehicles (NGDVs) from Oshkosh Defense. The suits are being launched on the grounds that the USPS failed to comply with environmental regulations and went back on an earlier promise to field all-electric variants.
They’re supported by the White House — which launched an initiative to convert the entire federal fleet into battery electric vehicles last year — and congressional Democrats that were angered after the Postal Service went against the Biden administration’s request to prioritize EVs. The president and the Environmental Protection Agency (EPA) even went so far as to request that the USPS to hold off on the $11.3 billion contract with Oshkosh so electric options can be reevaluated. However, Postmaster General Louis DeJoy has repeatedly stated that it’s not realistic to field a significant number of electric vehicles and that the mail service would need additional funding from the government to consider such a move.
With the United States Department of Transportation having formally announced upgraded Corporate Average Fuel Economy (CAFE) standards starting in 2024, the Biden administration was quick to point out that the decision would likely make automobiles even more expensive than they already are. However, the caveat to this was that it also assumed fuel prices would come down as improved efficiencies reduced North America’s hunger for fuel.
This effectively undoes fueling rollbacks instituted under the Trump administration on the grounds of reducing costs to consumers and cutting regulatory red tape for a prospective future where fuel prices are reduced without the need to spur oil production. But what does that actually mean in terms of dollars and cents?
The Biden administration held another meeting with automotive executives about how to ensure electric vehicles go mainstream. But this time it included Elon Musk, who runs the most successful EV brand in the entire world.
After taking criticism for shunning the Tesla CEO in earlier meetings, senior officials held an event on Wednesday where he and other industry leaders could contribute as to how the United States should handle a national charging infrastructure and spur adoption rates. Despite Musk having often expressed a dissenting opinion in regard to President Biden’s strategy, the White House said that the meeting was productive and resulted in a “broad consensus that charging stations and vehicles need to be interoperable and provide a seamless user experience, no matter what car you drive or where you charge your EV.”
When gas prices spike, we argue.
It’s the current president’s fault. It’s the previous president’s fault. It’s about the Russian invasion of Ukraine, and on and on.
Now Yahoo! Finance columnist Rick Newman suggests that politics and war aren’t the problems, but simple economics are.
Tesla CEO Elon Musk has invited the United Auto Workers (UAW) to hold a union vote at the company’s facility in Fremont, California. While this may fool you into believing the executive has had a change of heart in regard to unionization, Musk seems to be inviting the labor group into a trap to dunk on his political enemies.
It’s no secret that there’s been bad blood between Tesla and the Biden administration. The White House has repeatedly left the automaker out of its discussions pertaining to industry regulation and proposed additional financial incentives for automakers using unionized labor to build electric vehicles. As the world’s largest purveyor of EVs by far, Musk believes his organization deserves some acknowledgment and has noted that the UAW is one of the Democratic Party’s staunchest allies. He’s asking for the vote in Fremont because he clearly thinks it will fail.
The United States Postal Service (USPS) has been under pressure from the White House to replace its aging fleet with all-electric vehicles. But it’s looking like mail carriers will continue doing their jobs in oddly shaped trucks that burn gasoline.
While the Biden administration’s green agenda calls for government fleets to begin transitioning to EVs, the USPS had already decided to purchase 165,000 examples of the Oshkosh Defense NGDV that’s dependent upon liquid fuel. Despite the contractor saying trucks could be converted into battery electric vehicles and/or hybrids, the vast majority will be wholly reliant on internal combustion. The USPS has decided that it’s just not cost-effective or practical to do anything else and no amount of pressure from the White House will be changing its mind.
Money on the other hand…
The U.S. Department of Transportation (DOT) announced today that it will distribute $5 billion to establish electric-vehicle charging along the interstate highway system. Managed by the newly formed Joint Office of Energy and Transportation formed after the $1.2-trillion Infrastructure Investment and Jobs Act (IIJA) passed in Congress, the federal spend is a joint operation between the DOT and U.S. Department of Energy.
By 2030, the federal government is hoping to have a network of 500,000 charging stations in a bid to reduce range anxiety and spur EV adoption. But it wants individual states to make the necessary investments to connect the highway-based network to cities and towns. As you might have guessed, Democrat lawmakers have broadly supported the imitative while Republicans are calling it too expensive and a distraction from other aspects of U.S. infrastructure in need of maintenance.
Last spring, the United States Postal Service announced that it would finally be replacing its fleet of Grumman Long Life Vehicles (LLVs) that have more than lived up to their name. Having entered into service in 1987 to replace the Dispatcher Jeep, the LLV is scheduled to be replaced by 150,000 new mail trucks from Oshkosh Defense. While the government originally wanted to use an all-electric platform, it was believed that rural routes probably required an internal combustion vehicle. Preexisting government contracts with Oshkosh likely made it a compelling manufacturer, though it annoyed some of the smaller candidates. Workhorse even sued the USPS last summer for not selecting its hideous entrant, though the official complaint was that the government hadn’t given EVs a fair shake.
That now appears to be changing because the Biden administration and Environmental Protection Agency (EPA) have asked USPS to hold off on the $11.3 billion contract with Oshkosh so electric options can be reevaluated.
The White House has made plans to host American business executives — including numerous CEOs tied to the automotive sector — in an effort to gain support for the stalled Build Back Better agenda. The meeting is scheduled to take place today, with President Joe Biden and company hoping to convince them to get behind the (revised) $1.75 trillion spending bill after it passed in the House but never made it through the Senate.
Seats have already been reserved for General Motors CEO Mary Barra, Ford CEO Jim Farley, and Cummins CEO Tom Linebarger. The rest are going to heads of manufacturing and technology companies, with a few noteworthy outliers. For example, the Biden administration has also invited the president of the Teachers Insurance and Annuity Association of America and the CEO of Siemens (a multinational entity that’s not based in the United States). Based on earlier statements from White House press secretary Jen Psaki, the meetings will take place in-person, bucking the Biden administration’s trend of hosting virtual events.
We’ve got good news for people who want fewer choices in the type of cars they’ll be able to purchase in the future.
The U.S. Environmental Protection Agency (EPA) has finalized strict new vehicle emissions requirements through 2026 that would reverse the current standards set by the agency under former President Donald Trump. The Trump administration rolled back some of the long-term environmental policies implemented under the Obama administration. However, the Biden administration has said its biggest focus will be on addressing climate issues by dissolving those policies restoring the targets established when Barack Obama was still in the White House. The agency released some proposals in August outlining the general path it would be taking. But the details dropped by EPA Administrator Michael Regan on Monday vastly exceed those Obama metrics serving as a benchmark.