Cars Clips: August 8, 2019

 

Clean Car Standards

 

Key Architect Of Car Rules Rollback To Depart — Sources. According to E&E News, “Regulators and other observers anticipate that Heidi King, a chief architect of President Trump’s rollback of clean car standards, will soon leave the administration. King, who currently serves as deputy administrator of the National Highway Traffic Safety Administration, could exit as soon as next week, according to four sources familiar with the matter. ‘I heard (not from her) but I don’t know why [or] where she is going,’ California Air Resources Board Chairwoman Mary Nichols said in an email to E&E News. ‘Could be a promotion based on her fine work on the standards,’ quipped Nichols, who opposes the rollback. NHTSA did not respond to a request for comment. As the No. 2 political appointee at the agency, King has played a leading role in proposing to dial back Obama-era corporate average fuel economy (CAFE) standards. Along with EPA, NHTSA is proposing to freeze CAFE standards at 2020 levels through model year 2026. That would allow cars to travel 35 mpg on average by 2025, rather than the 50 mpg mandated by President Obama. King has been a steadfast proponent of the administration’s argument that freezing the standards would increase safety on the nation’s roads. She has testified before Congress that the freeze would encourage people to ditch their older cars and purchase newer, safer models.” [E&E News, 8/8/19 (=)]

 

Rollback Will Cost Economy $400B — Analysis. According to E&E News, “The Trump administration’s rollback of Obama-era clean car rules could cost the economy $400 billion through 2025, a new analysis has found. The rollback would also increase U.S. gasoline consumption by up to 7.6 billion barrels, causing U.S. transportation emissions to increase up to 10% by 2035, according to the analysis by Energy Innovation, a left-leaning energy and environmental think tank. ‘No matter how you look at the impact, it’s bad news all around for Americans,’ Megan Mahajan, a policy analyst at Energy Innovation and an author of the report, told E&E News. ‘I think this adds just another nail in the coffin of just how bad this is,’ she added. The authors of the analysis looked at the proposal from EPA and the National Highway Traffic Safety Administration to dramatically scale back President Obama’s greenhouse gas and fuel economy standards for light-duty vehicles. The two agencies are proposing to freeze fuel economy requirements at 2020 levels through 2026 and to preempt California from setting tougher tailpipe emissions rules than the federal government. Under Section 177 of the Clean Air Act, 14 other states have adopted California’s tougher tailpipe emissions standards, representing more than 35% of U.S. vehicle sales.” [E&E News, 8/7/19 (=)]

 

The Real Cost Of Trump's Rollback Of Clean Car Standards. According to Digital Journal, “The Trump administration’s push to freeze existing federal fuel economy and greenhouse gas (GHG) emissions standards will cost consumers up to $400 billion through 2050 and raise GHG emissions 10 percent. The data is based on new modeling published by Energy Innovation using the Energy Policy Simulator. The Energy Innovation report goes hand-in-hand with a report published last week by the BlueGreen Alliance, a coalition of labor and environmental groups. The BlueGreen Alliance report looked at the job market under a rollback of clean car rules as well as the job market if the Obama-era rules were left in place. Currently, the EPA and the NHTSA are proposing to freeze fuel economy requirements at 2020 levels through 2026. That would allow cars to travel on average about 35 mpg rather than the 50 mpg mandated by President Obama. The agencies are also proposing to revoke California’s Clean Air Act waiver for greenhouse gases. Fourteen states plus D.C., have adopted California’s standards, totaling more than 35 percent of the automobile market. Additionally, four major automakers, including Ford, Volkswagen, BMW, and Honda, have reached a deal with California to increase gas mileage standards and reduce greenhouse gas (GHG) emissions, setting a national standard, a longtime auto industry goal.” [Digital Journal, 8/7/19 (=)]

 

Auto Manufacturers

 

Judges Doubt Counties’ Bid To Bypass Preemption For VW Emissions Fines. According to Inside EPA, “Judges on the U.S. Court of Appeals for the 9th Circuit appear to doubt two counties’ case seeking civil penalties from automaker Volkswagen (VW) for its use of ‘defeat device’ software to cheat on federal air emissions standards, pressing the counties’ hard at Aug. 6 oral argument on why their claims are not preempted by federal claims. At argument in In re: EPC of Hillsborough County., et al v. Volkswagen Group. of America, et al., Judge Richard Tallman expressed concern that if the court granted the counties’ claims in this case, it could lead to a ‘ruinous pile-on’ by counties around the country that could sink VW, in the wake of billions of dollars in various penalties and charges already levied against the company for its cheating on nitrogen oxides (NOx) emissions tests. In addition to money paid to the federal government and California -- much of which has been disbursed to states for NOx mitigation projects and other purposes -- other jurisdictions have sued VW under their consumer protection laws. In the instant suit, the counties are asking the court to overturn an earlier ruling by the U.S. District Court for the Northern District of California that found their claims are preempted by federal action. The counties claim the ability to impose large penalties on VW for its updates to software that deactivated emissions controls under real-world driving conditions.” [E&E News, 8/7/19 (=)]

 

As Cars Go Electric, Honda Gases Up New Mowers. According to E&E News, “Honda Motor Co. is racing toward an electric-powered and self-driving future for cars, but doubling down on gas-burning models for its U.S. lawn mower business. The Japanese company is investing $46.4 million to expand a plant in Swepsonville, North Carolina, where it will begin producing its first new line of mowers in 20 years. Honda is counting on the next-generation HRN line of gasoline-powered mowers — which boast 18% more torque but no improvement in fuel efficiency — to turn around its money-losing global power equipment business. ‘It’s very important to our overall business, not just from a dollars standpoint but a reputation standpoint as well,’ Will Walton, vice president of Honda’s U.S. power equipment unit, said in an interview. ‘We have to make sure that this product is a success in the marketplace.’ The HRN family of 170 cubic centimeter engine-powered mowers will replace the current generation 160cc HRR line, he said. Honda’s power equipment business could use a boost. In the most recent fiscal year ended in March, the company said the division lost 10.9 billion yen ($102 million), marking a fifth straight year in the red. North America is by far its largest market, making up 39% of the 351 billion yen in global revenue from Honda brand generators, grass mowers, snow blowers and garden tillers.” [E&E News, 8/8/19 (=)]

 

States

 

Study Finds Electric Vehicles And Coal Plant Retirements Can Reduce Colorado Carbon Emissions By 42% And Lower Electric Rates. According to Yahoo, “The key to reducing emissions and lowering rates is utility involvement to address material issues associated with pricing and timing of EV charging A new report commissioned by Community Energy, Inc. finds that electric vehicles (EVs), combined with accelerated coal plant retirements, can reduce Colorado’s CO2 emissions by 42 percent by 2040 relative to today’s levels while lowering electric utility rates. The study finds that combined emissions from the transportation and electricity sector are reduced by 61 percent. The study, prepared by Vibrant Clean Energy, LLC, assumes that by 2040, 87 percent of the light vehicle and 70 percent of the medium vehicle fleet would be converted to EVs and that the average vehicle will travel 10,000 miles per year at 3.5 miles per kWh. The conversion to EVs reduces average annual vehicle fuel costs by nearly $600 (a 70 percent reduction). The EVs increase annual electric energy requirements in Colorado by almost 20 percent, which the model meets by adding wind, solar, storage and natural gas to the grid. ‘Colorado has the opportunity to substantially decarbonize and lower utility rates and bills, but the utilities have to be involved in EV markets,’ said Eric Blank, founder and strategic lead at Community Energy, Inc. ‘The key is to arrange EV charging locations and timing around when the wind blows, the sun shines and utility hour electric demands are not extreme.” [Yahoo, 8/7/19 (=)]

 

MidAmerican To Install Electric Vehicle Fast-Charging Stations Throughout Iowa. According to the Sioux City Journal, “MidAmerican Energy Company announced in late July an initiative to build a ‘first-of-its-kind’ network of electric vehicle fast-charging stations throughout Iowa. According to a press release from the company, MidAmerican plans to install publicly accessible direct current fast charging stations, with two plugs per stations, in 15 cities and towns in the state. A direct current charger, also referred to as a ‘Level 3’ charger, can reportedly charge an electric vehicle in as little as 20 to 45 minutes. The communities selected as fast-charging station sites include Altoona, Avoca, Carroll, Clarinda, Davenport, Dexter, Early, Emmetsburg, Iowa City, Fort Dodge, Little Sioux, Oskaloosa, Sheldon, Sioux City and Waterloo. The company is accepting applications from businesses and community entities in the targeted areas that would be interested in hosting a charging facility, which MidAmerican will purchase, install and maintain. Each of the targeted areas will get at least one charging station. MidAmerican electric operations general manager Nick Nation said installing charging stations throughout the state will boost the confidence of electric vehicle owners, who might otherwise worry their vehicle will run out of battery on the road with no charging station nearby.” [Sioux City Journal, 8/7/19 (+)]

 

Electric Vehicles

 

Gas Stations Push Back On EV Grant. According to Politico, “Environmentalists have been energized by a $1 billion grant program for electric vehicle infrastructure that’s part of the Senate’s surface transportation bill. But, as our Tanya Snyder reports, groups representing traditional vehicle fueling services are worried that they won’t be able to compete with publicly subsidized utilities, which are already ‘trying to get approval to increase their rates on all of their customers to pay for electric vehicle charging,’ according to Doug Kantor, a lobbyist representing the National Association of Convenience Stores and the Society of Independent Gasoline Marketers of America. Another point: The proposed grant program could put small-to-medium fueling stations at a disadvantage, said Rob Underwood, president of the Petroleum Marketers Association of America. Smaller stations might have a slimmer chance of being on a designated alternative fuel corridor and could require more infrastructure upgrades, he said. Despite the concerns, it seems like congressional momentum is veering toward a big federal investment in EV charging infrastructure come next year, given the $1 billion in the Republican-led bill and a similar boost that the House will likely aim for in its version, led by House Transportation Chairman Peter DeFazio (D-Ore.).” [Politico, 8/7/19 (=)]

 

Even Jay Leno Thinks Gasoline Cars' Days Are Numbered. According to Jalopnik, “If you don’t think electric cars will eventually take the place of gasoline cars, then you should consider driving a modern EV or looking more closely at the world’s climate problem. If you’ve already done those, and you’re still not convinced, maybe take it from Jay Leno—a man with a huge garage filled with mostly gasoline-powered automobiles. He too thinks EVs are the future. While discussing his show Jay Leno’s Garage with CNBC, Jay Leno—whose enormous collection of old automobiles is not exactly known for its environmental cleanliness—gave his thoughts on the future of electric cars. ‘Electric is the future,’ he told the host in the video below, before going on to say that he thinks cars with internal combustion engines will become a rarity in the near future. From CNBC: ‘I predict a child born today probably has as much chance of driving in a gas car as people today have driving a car with a stick shift. They’ll still be around, there’s just not many of them,’ he said. Leno then heaped praise on his Tesla, which he’s owned for three years, and to which he says he’s had to do no maintenance. ‘For a new technology to succeed, it can’t be equal, it’s gotta be better,’ he stated, discussing how EVs now offer lots of range, much simpler maintenance regimens than ICE cars, and great performance.” [Jalopnik, 8/7/19 (=)]

 

Wawa Plans To Double Number Of Its Tesla Super-Charging Stations. According to the Philadelphia Inquirer, “Vivianna and Peter Van Deerlin both own Teslas, recently taking a cross-country trip in one of them from their Moorestown home to San Francisco. Finding a charge was easy because the electric vehicle’s onboard computer plotted all the charging stations on their route, including those at hotels. ‘We have become a full electric car family and we don’t have any conventional gas cars,’ said Vivianna, a pathology and laboratory medicine professor at the Hospital of the University of Pennsylvania. As president of the Delaware Valley Tesla Owners Club, she is pleased at the budding partnership between Tesla and Wawa to offer charging stations — though she still charges her car most nights at home. Lori Bruce, a spokesperson for Wawa, said the company now has 16 stores with Tesla Superchargers with plans to double that by the end of 2020. Wawa’s newest store planned with Tesla Superchargers is being built on Route 73 in Maple Shade, next to Uno Pizzeria & Grill. Bruce said it’s projected to open by December. The convenience store chain began opening charging stations in August 2017. The Tesla Supercharger connector is proprietary, so Wawa does not offer charging for other electric vehicles, except at one store outside the Philly region.” [Philadelphia Inquirer, 8/7/19 (=)]

 

 

 

Chad Ellwood

Research Associate

cellwood@cacampaign.com

202.448.2877 ext. 119