Last week, a group of Republican attorneys general decided to sue the Environmental Protection Agency (EPA) over its decision to reinstate the waiver allowing California to set its own limitations on exhaust gasses and zero-emission vehicle mandates that would exceed federal standards.
The agency approved the waiver after it had been eliminated as part of the Trump administration’s fuel rollback on the grounds that it would create a schism within the industry by forcing automakers to produce vehicles that catered to the Californian market at the expense of products that might be appreciated in other parts of the country. However, Joe Biden’s EPA sees things differently and has aligned itself with the California Air Resources Board (CARB) in giving the state more leeway to govern itself in regard to emissions policing.
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.
Now that the U.S. Environmental Protection Agency (EPA) looks poised to reinstate California’s waiver under the Clean Air Act — allowing the state to establish stricter tailpipe emissions than the federal limits — the coastal region has resumed its quest to abolish gasoline-powered vehicles in earnest. While the California Air Resources Board (CARB) has yet to finalize all the details, the latest proposal calls for strengthened emissions standards for new light-duty vehicles in anticipation of the necessary approvals.
The scheme would require pure electrics and plug-in hybrids (PHEVs) to make up 35 percent of new-vehicle sales for the 2026 model year. By 2030, that number will become 68 percent before hitting 100 percent for MY 2035. CARB said zero-emission vehicles comprised 12.4 percent of the state’s new market in 2021, hinting that the number could have been higher without the Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule Part One having stifled its progress.
The U.S. Environmental Protection Agency has opted to reinstate California’s ability to set tailpipe rules and zero-emission vehicle mandates that are more rigid than federal standards. After quarreling for years over the Trump administration’s decision to roll back Obama-era fueling standards deemed untenable, the Golden State now has the ability to once again make harder for its citizens by forcing them to purchase the kind of vehicles it feels they should be driving — rather than leaving it up to the individual that’s actually buying the car.
Though it might not matter at this point. While California effectively served as a defensive shield against proposed fueling rollbacks while Trump was in office, the Biden administration strategy is broadly in line with its agenda of making gasoline unappetizing to consumers to ensure a speedy transition to electric vehicles. California doesn’t even want people to have access to gas-powered lawn care equipment. The state has effectively served as a test case for Build Back Better since before the phrase passed through the lips of a single politician.
General Motors has issued a letter to California Governor Gavin Newsom promising that the automaker is now fully committed to complying with the state’s aggressive emission regulations. This follows an earlier announcement from GM advancing plans to eliminate tailpipe emission from all light-duty vehicles by 2035 via electrification. The company had also increased global spending to develop EVs to $35 billion (USD) through 2025, which is roughly a third more than it had previously been targeting.
Of course, don’t think this has anything to do with altruism or formal commitments to some grand cause. California was simply planning to bar any automakers that hadn’t previously vowed to adhere to its strict regulatory policies from selling to state government fleets. While GM has been in the process of changing its allegiance, the business originally sided with automakers approving of the Trump administration’s regulatory revisions that were at odds with the region.
Last month, the U.S. National Highway Traffic Safety Administration (NHTSA) proposed new rules that would increase fines for automakers who previously failed to adhere to fuel efficiency requirements. EV manufacturer Tesla has predictably endorsed the rules and has begun urging the federal government to put the plan in action as soon as possible.
While automakers have issued concerns that increasing penalties could cost them over $1 billion per year through regulatory fines and the purchasing of carbon credits, Tesla has been asking the Biden administration and a U.S. appeals court to expedite the process and make the proposals binding. Though that’s undoubtedly because the company sells its credits to the tune of at least $350 million annually and doesn’t build a single automobile that’s powered by gasoline.
Washington, D.C. has long been thought of as a “swamp” of shady dealings, regardless of what party is in charge of the White House and/or Congress at any given time.
The previous president even promised to “drain the swamp,” though his critics would argue he made it swampier than ever.
There are competing philosophies when it comes to shifting the market to electric vehicles.
There’s the free-market philosophy, which says the market will get there on its own. There’s the incentive philosophy, which suggests incentivizing consumers will accelerate the transition away from the internal combustion engine. Consider that one to be the carrot approach.
Finally, we have the philosophy that if regulations don’t force automakers to make more EVs, they won’t, at least not quickly enough to address climate change. The free market and/or incentives won’t be enough. Consider this to be the stick.
Guess which philosophy President Joe Biden seems to be embracing?
That’s about a quarter of the number of GOP pols who voted against certifying Biden’s win.
On Tuesday, the Biden administration announced it would be suspending oil and gas leases issued in Alaska’s Arctic National Wildlife Refuge during the last days of the Trump administration. Bent on maintaining the United State’s energy independence, Donald Trump had moved to expand fossil fuel development in ways that would have been at odds with predecessor Barack Obama. But today’s White House represents a return to form, with an interest in supplanting traditional energy concerns with what it believes will be greener alternatives.
It’s bad news for the Alaskan state government, which had hoped to devote a subset of the region to rebuilding its oil industry by taking advantage of its vast reserves. But environmentalists and a subset of tribal representatives have praised the decision to prohibit development on protected lands. We expect consumers will have conflicting opinions, based largely upon how much they’re willing to pay at the pump.
Tesla is demanding the reinstatement of a 2016 Obama regulation that more than doubles penalties for manufacturers who fail to adhere to fuel efficiency requirements. Gee, I wonder why it would do such a thing.
While focusing on the environment is an admirable endeavor, much of the discussion surrounding environmentalism on the corporate level really skirts around the periphery of Scamville. Elon Musk is no fool and understands that the more stringent regulations are enacted against his competitors, the more desperate they will be to buy up Tesla’s mountain of carbon credits. With a little help from the government, electric-vehicle companies can effectively bankrupt their more-traditional rivals while earning a nice payday for themselves. In fact, Tesla has only managed to become a profitable company because of this practice.
Lobbyists are reportedly seeking to soften the United States-Mexico-Canada Agreement (USMCA) now that there are some new faces in the White House. Signed in 2018, revised in 2019, and effective since 2020, the USMCA sought to restore North America’s manufacturing base with new content requirements and place the United States in a more favorable position than it held under the North American Free Trade Agreement. But industry groups are now claiming that interpretations from government agencies are gumming up the works, and accusing the U.S. of having a different interpretation from what the other nations had originally agreed upon.
“[The USCMA interpretation makes] meeting the … content provisions that much more difficult for everyone to achieve,” stated David Adams, president of Global Automakers of Canada.
On Thursday, President Joe Biden spent part of his day listening to a group of lawmakers discuss how much the United States might need to spend on fixing its horrible infrastructure. It’s an issue America has neglected through multiple administrations and has frequently been set back by partisan conflict.
Considering the White House is ruminating on how to source trillions of dollars in new infrastructure spending after the U.S. just printed $9 trillion (almost 25 percent all USD currently in circulation) for COVID relief, that’s unlikely to change. Everyone is worried about raising taxes and causing inflation during a period of economic uncertainty, or skeptical that the government will use the new funding responsibly. But our roads (among other infrastructure projects) are reaching a point where they can no longer be ignored, placing the entire country in a particularly sour pickle.
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- Kat Laneaux Wonder if they will be able to be hacked into (the license plates) and then you get pulled over for invalid license plates or better yet, someone steal your car and transpose numbers to show that they are the owners. Just a food for thought.
- Tassos Government cheese for millionaires, while idiot Joe biden adds trillions to the debt.What a country (IT ONCE WAS!)
- Tassos screw the fat cat incompetents. Let them rot. No deal.
- MaintenanceCosts I think if there's one thing we can be sure of given Toyota's recent decisions it's that the strongest version of the next Camry will be a hybrid. Sadly, the buttery V6 is toast.A Camry with the Highlander/Sienna PSD powertrain would be basically competitive in the sedan market, with the slow death of V6 and big-turbo options. But for whatever reason it seems like that powertrain is capacity challenged. Not sure why, as there's nothing exotic in it.A Camry with the Hybrid Max powertrain would be bonkers, easily the fastest thing in segment. It would likewise be easy to build; again, there's nothing exotic in the Hybrid Max powertrain. (And Hybrid Max products don't seem to be all that constrained, so far.)
- Analoggrotto The readers of TTAC deserve better than a bunch of Kia shills posing as journalists.