#Government

The Motor & Equipment Manufacturers Association (MEMA) has informed a Senate Commerce subcommittee on transportation that the Biden Administration’s penchant for electric vehicles is starting to get under its skin. The union is recommending that the United States avoid setting any timeline for the proposed banning of internal combustion vehicles because it might cost a staggering number of jobs.

Ann Wilson, MEMA’s senior vice president of government affairs, said vehicle restrictions were unrealistic before 2040 and would obliterate entire segments of the auto industry without providing concrete assurances that the environment would be improved. While the latter claim can be argued endlessly, the former is pretty difficult to refute.

With Ontario embracing some of the strictest lockdown restrictions in the West and giving the police force carte blanche when it comes to enforcing public health, many Canadians have told us they’re not exactly enthralled with the idea of notifying their government that they’ve been out of the country. This is doubly true if they’ve just flown in by plane because the nation now requires a few days’ stay in a hotel as part of its mandatory 14-day quarantine for those traveling by air.

Due to the added time, cost, and general hassle of booking yourself into a hotel for 3 nights — awaiting the results of a mandatory COVID test before you’re technically allowed to go home to continue self-isolation — some travelers have opted to utilize ground transportation for the explicit purpose of avoiding restrictions. Rather than flying all the way into the Great White North, Canadians are flying into neighboring American airports and then hailing a taxi that will take them across the border.

Having noticed that Washington got a bit of publicity for vowing to ban all vehicles reliant on internal combustion after 2030, a dozen other American states decided it would be a good idea to reaffirm their own religious-like commitment to the environment by saying they too will be restricting your choice of automobiles by 2035.

The coalition of states — most of which don’t have a populace that’s dependent on automotive manufacturing for work — also formally asked the Biden administration to introduce standards that would obligate the United States to ban everything that emits smoke within the next fifteen years. Many activist groups are calling it a heroic act, though it’s difficult to recall any parables where the hero went around banning things and also represented an institutional power structure.

France is offering 2,500 euros (about $2,993 USD) to individuals interested in purchasing electrically driven bicycles. But it’s pursuing the Cash for Clunkers mentality that often leaves us questioning whether the people instituting these environmental plans are familiar with the concept of conservation. Because the current proposal requires participants to throw away their automobiles before they’re granted access to the funds.

The Biden administration expanded on its $174 billion proposal to boost electric vehicle sales on Thursday, suggesting that the United States government make it rain money on those purchasing EVs.

Technically a part of the $2.3 trillion infrastructure plan, which has been expanded to include jobs and numerous environmental projects, the proposal makes a lot of special exemptions for alternative energy vehicles backed by large financial commitments. $100 billion will be set aside for new consumer rebates, potentially opening up the door for manufacturers that have already exhausted their quota of federal tax credits linked to zero-emission cars.

With environmental regulations being a cornerstone of the Biden-Harris platform, the administration’s newly installed Environmental Protection Agency head has signaled that changes are coming over the summer. However, before that can take place, Administrator Michael Regan said wants to make some big changes within the agency that he believes will bring it back to the way it operated before being restructured by the Trump administration.

In the meantime, the EPA will be actively revising the previous president’s relaxed fuel economy standard designed to give the industry some flexibility in terms of keeping larger vehicles and traditional powertrains on sale — something we’ve covered repeatedly as it ended up being the proverbial football in the highly political American gas war. Considering Mr. Regan’s history of praising California’s climate response and energy protocols, his allegiances in the conflict should be obvious. However, he has also suggested that the EPA needs to make decisions on what’s feasible, indicating he may not push for extreme measures. Though he has not drawn any lines in the sand when it comes to potential bans of internal combustion vehicles or stringent penalties for power plants and oil refineries.

The Alliance for Auto Innovation (AAI) is hard at work begging the federal government for help while the world continues coping with the semiconductor chip shortage, though it’s hardly the first time the industry has asked for or received administrative assistance. With pandemic lockdowns throwing global supply chains into a tailspin, U.S President Joe Biden said his administration would be seeking $37 billion and new legislation to address the chip shortage while federal agencies were directed to see what could be done in the interim.

But there’s little to be done with the brunt of the relevant manufacturing taking place in Asia, hence the AAI lobby requesting U.S. Commerce Department set aside some cash for domestic chip production in a new bill.

With President Biden planning to announce an infrastructure proposal that could easily exceed $2 trillion, the automotive industry has come to the realization that some of that money could be used to make its job easier. Following Tesla’s attempt at charming the federal government into making carbon credits more valuable, automotive lobbies, supplier groups, and the United Auto Workers (UAW) union have issued a joint letter asking for financial assistance.

Addressed to the president and congress, the document makes numerous requests for help with electric vehicle adoption rates. Industry groups would like to see Biden sign onto significant government tax incentives and subsidies for both buying and manufacturing electric vehicles. But this isn’t limited to passenger cars, they also want tax dollars used to help offset the prices corporations pay on commercial EVs intended for fleet use. Government grants would likewise be set aside for organizations that retool facilities for electric cars, while federal entities make a vow to buy up new fleets that aren’t reliant on liquid fuel.

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.

The Chinese military has decided to ban all Tesla vehicles from housing complexes and bases after citing them as a potential security risk. Since the cars use an array of ultrasonic sensors and cameras to create a panoramic view used for advanced driving features, China is concerned the American brand could use the cars to covertly map out sensitive areas.

On Wednesday, the U.S. Senate voted 66-34 to confirm Michael Regan as the next administrator of the Environmental Protection Agency (EPA). The Biden campaign had signaled that it wanted to clean house following appointments from the Trump administration well before the election, noting that the EPA was of particular importance since it needs to be in line with the bold energy strategy. Regan’s role as administrator is essential since he’ll have the ability to encourage the United States to reduce emissions wherever possible.

Whereas the Trump administration sought to undo Obama-era policies it deemed untenable and soften the power of highly influential independent executive agencies, Biden and company are bent on restoring those policies while strengthening some of its own. Regan (44) is presumed to pursue greenhouse gas emissions reductions for automobiles, powerplants, and oil refineries by any means available. He began his career as an environmental regulator for the EPA during the Clinton administration, stayed on through the Bush years, and later joined the Environmental Defense Fund — a nonprofit environmental advocacy group that frequently partners with multinational companies to create “market-driven” solutions to climate change.

Despite the United States Postal Service (USPS) having recently finalized its plan to award Oshkosh Defense a $482 million contract to replace its ramshackle fleet with sparkly new Next Generation Delivery Vehicles (NGDV), Postmaster General Louis DeJoy said it could only afford to make 10 percent of the fleet electric. The USPS would allegedly need another 3 or 4 billion dollars in government assistance to make BEVs happen in meaningful numbers and some lawmakers seem happy to oblige.

A bill sponsored by House Representative Jared Huffman (a California Democrat), introduced on Monday, seeks to allocate $6 billion to increase the number of EVs used by the USPS — with the stipulation that at least 75 percent of the motor pool be zero-emission vehicles. The original plan estimated expenditures of roughly $6.3 billion over the duration of the 10-year program to modernize the United States’ postal fleet. But the service ultimately decided to go with Oshkosh’s internal combustion model, rather than the electric prototypes offered by other manufacturers.

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.

Automakers around the globe have been issuing warnings for weeks that the semiconductor shortage will eventually result in fewer cars and leaner profitability reports. But the absent chips are affecting just about every industry producing modern connected devices, creating fears that electronic prices could skyrocket as availability dwindles. Lockdowns effectively crippled semiconductor supply lines right as demand peaked and everyone is starting to get a little worried about how it’s going to impact production in other industries.

The White House is reportedly taking steps to mitigate the issue by tasking Brian Deese (Director of the National Economic Council) and Jake Sullivan (National Security Adviser) with coming up with a solution. It’s also asking embassies to assist chip suppliers around the world however possible and hopefully suss out a way to stop the global shortage. Meanwhile, Deese and Sullivan will be focusing the brunt of their efforts on Taiwan.

The European Automobile Manufacturers’ Association (ACEA) is demanding the EU install more electric vehicle charging stations in a letter co-signed with Transport & Environment (T&E) and the European Consumer Organization (BEUC). This marks the hundredth time (rough estimate) an auto lobbying entity has tried to pressure the government into spending a fortune to drastically alter the European infrastructure to support the planned glut of EVs.

But it might be a fair request. Regulatory actions have effectively forced the industry into a corner and it now seems giddy at the prospect of an electrified world. The only real downside is that the charging infrastructure and power grids aren’t ready. ACEA estimates that the EU will need to build one million public charging points by 2024, with hopes of seeing three million installed before 2030.

Let’s see how feasible that is before it’s tried in our neck of the woods.