Category: Government
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. Read More >
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. Read More >
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. Read More >
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. Read More >
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. Read More >
The U.S. Environmental Protection Agency (EPA) is embroiled in a lawsuit with Gear Box Z, Inc., contending that the Clean Air Act (CAA), doesn’t allow you to convert your street car into a competition-only race vehicle.
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. Read More >
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. Read More >
On Tuesday, a federal judge approved a $1.5 billion settlement to pump the brakes on an investigation conducted by the U.S. government pursuing claims that Daimler used illicit software that allowed excess diesel emissions on 250,000 units. This runs in tandem with another $700 million settlement the automaker is making with vehicle owners, which is likely to see final approval in a few months, and an extensive recall campaign.
The federal case involves the U.S. Justice Department, the California Air Resources Board, and follows a trend of fines for automakers accused of misleading regulators so that diesel vehicles could continue being sold. This kicked off with Volkswagen’s Dieselgate in 2015, with numerous government probes taking place in Europe and North America over the next five years. Many automakers have since been discouraged from relying on diesel powertrains due to rising regulatory actions. European countries that once championed the fuel as ecologically preferable to gasoline, after the advent of biodiesels, are now obsessed with tamping down NOx emissions and getting more electric vehicles onto the road.
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. Read More >
The Electric Highway Coalition, a consortium of six utility companies, will provide a network of 20-30 minute DC fast chargers for EV drivers, as reported by Electrek. Each of the utilities will be responsible for providing EV charging within their service areas, with most sites located along major highways for easy access and adjacency to other amenities.
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.













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