Cars Clips: May 5, 2021

 

Clean Car Standards

 

Senate Republicans Threaten To Cut Funding For Minnesota State Parks, Environmental Programs Over 'Clean Cars' Rule. According to the Minneapolis Star-Tribune, “Minnesota’s state parks could shut down in July if the Walz administration does not bow to demands by Senate Republicans to drop plans for new ‘clean cars’ emissions standards. Along with parks, much of the environmental arm of state government would shut down over the impasse, which flared up during a conference committee meeting Tuesday on the Senate’s proposed omnibus environment budget. If passed, the Senate’s version of the omnibus environment bill would slash tens of millions of dollars in environmental funding on a variety of projects, from combating chronic wasting disease in deer and the decline in pollinators to cleaning up forever chemicals in water supplies. Sen. Bill Ingebrigtsen, R-Alexandria, told the committee it is the only budget he will consider, and that he will not pass anything at all unless the Minnesota Pollution Control Agency (MPCA) rule-making on clean cars is stopped. ‘We are an outlier,’ Ingebrigtsen told the committee. ‘We’re the only ones in the Midwest that’s moving forward with this. It’s very maddening for me and I think it is for a lot of folks.’ He and Rep. Josh Heintzeman, R-Nisswa, accused the MPCA of being unwilling to compromise on the controversial emissions-cutting program. The agency should have brought it to the Legislature, Ingebrigtsen said. The new rule, similar to one in California and more than a dozen other states, aims to help drive down heat-trapping greenhouse gas emissions from transportation by requiring automakers to increase deliveries of electric vehicles to Minnesota for sale. DFL Gov. Tim Walz directed the MPCA to develop the rule as part of his emphasis on addressing climate change and the need to cut global warming gases.” [Minneapolis Star-Tribune, 5/4/21 (=)]

 

Op-Ed: Rebuilding From COVID Should Include Improved Truck Fuel Efficiency Standards. According to an op-ed by Joe Dalum in Minnesota Post, “A produce truck carries milk, eggs, and apples to the convenience store down the street. A car-carrying trailer steams down the interstate, bringing the newest models to your local dealer. Flatbeds transport building supplies and heavy cranes to the construction site on your way to work. A garbage truck comes every Tuesday to empty the green plastic container on your sidewalk, and a utility truck repairs the power lines near your house after a storm. Don’t forget about the delivery truck stopped in front of your house to drop off the new sweatshirt you ordered online. Now imagine a world in which all these goods and services were cheaper. A world where engines put less harmful emissions into the air. Imagine that tractor trailer truck owners no longer have to spend up to $60,000 a year on fuel. The good news is that’s a future within reach, if the new administration and Congress create improved medium and heavy-duty truck fuel efficiency standards, incentivize innovations in efficiency technology such as idle reduction, and leverage the public and private demand for cleaner, more reliable and cost-effective transportation. As the Department of Transportation notes, large trucks and buses account for less than 7% of all vehicles in the U.S., but account for more than 20% of total vehicle fuel consumption. Strengthening truck fuel standards, as the Biden administration has considered, isn’t just good for jobs and clean air, it will also save households money. Projections by the Consumer Federation of America in 2015 showed that the average household pays over $700 annually for the fuel used to transport their everyday goods. As new standards are put in place, that cost will reduce and help families during these tough economic times.” [Minnesota Post, 5/4/21 (+)]

 

Automakers: States 'Unlikely To Reach' 2035 Gas-Free Goal. According to E&E News, “The auto industry’s largest trade group challenged 11 governors who are calling for a national phase-out of gasoline cars to put clean vehicles on their own roads first. The governors urged the Biden administration in April to ban sales of new light-duty gas cars by 2035, followed by medium- and heavy-duty models by 2045. That would place the entire country on the same track as California and a handful of other states (Greenwire, April 21). But in letters dated April 29 and shared with E&E News this week, the Alliance for Automotive Innovation warned the governors that their states were ‘unlikely to reach’ 100% zero-emissions vehicle sales without doing more to stimulate consumer acceptance. The alliance cited low national sales rates for EVs of around 2% of the car market in 2020. The group urged ‘immediate and substantial action’ from the governorsm including more consumer rebates, low-carbon fuel standards, construction of EV and hydrogen stations in low-income areas, and fleet electrification by state agencies. ‘Clearly, there is much work to be done to significantly increase EV adoption in the nation, let alone achieve a 2035 goal,’ the alliance wrote. The letters were sent to the governors of Connecticut, Hawaii, Maine, Massachusetts, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island and Washington. The group did not send a letter to California, the 12th state that urged Biden to end gas car sales. Automakers and officials in many of those states have jousted for years over whether each side is doing enough to promote electric vehicle adoption. In 2018, a now-defunct industry trade group, which eventually merged into the Alliance for Automotive Innovation, took aim at nine states with aspirations for zero-emissions vehicles.” [E&E News, 5/5/21 (=)]

 

Congress

 

Senate Democrats Announce $73B Clean Bus Plan. According to The Hill, “Senate Majority Leader Charles Schumer (D-N.Y.) and Sen. Sherrod Brown (D-Ohio) announced a new $73 billion plan on Tuesday aimed at replacing the country’s mass transit buses with clean vehicles. The proposal seeks to replace the country’s 70,000 buses and 85,000 cutaway vehicles and transit vans, prioritizing funding for areas with the worst air quality first, according to a press release. A summary said the plan, called Clean Transit for America, will authorize the money for the procurement and deployment of zero-emission buses and infrastructure, including charging stations related to it. Nearly all of the funds would be used for grants to help with procurement and infrastructure costs, according to Schumer’s office. The funds going elsewhere include $60 million toward a workforce training program and $500 million that would go to transit agencies to lessen the burden of retraining workers. ‘To reduce the carbon in our atmosphere and address the climate crisis, we must transform our transit system,’ Schumer said in a statement. ‘The Clean Transit for America proposal will replace dirty, diesel-spewing buses, create new American jobs, help save the planet and protect public health, particularly in our country’s most vulnerable communities,’ he added. President Biden has similarly expressed a desire to lessen emissions from buses, pitching electrification of at least 20 percent of the country’s school bus fleet in his $2.25 trillion infrastructure plan. The transportation sector is the country’s largest producer of greenhouse gas emissions and was responsible for 29 percent of emissions in 2019.” [The Hill, 5/4/21 (+)]

 

Schumer, Brown Push $73B Electric Bus Plan. According to Politico, “Senate Majority Leader Chuck Schumer and Banking Chair Sherrod Brown are pushing a $73 billion proposal to transition the nation’s public transit buses to electric ones as part of President Joe Biden’s infrastructure program. The program, dubbed Clean Transit for America, would aim to replace 70,000 buses and 85,000 other public transit vehicles with electric ones. Vehicles would be subject to requirements they be made in the U.S. under strong labor protections and replacements would occur first in areas with poor air quality, which tend to be in low-income communities or communities of color, according to a fact sheet on the proposal. ‘The Clean Transit for America proposal will replace dirty, diesel-spewing buses, create new American jobs, help save the planet and protect public health, particularly in our country’s most vulnerable communities,’ Schumer said in a statement. ‘That is why I am working to make sure this proposal is part of President Biden’s American Jobs Plan.’ Key context: The proposal builds on a prior program from Schumer, which called for a $400 billion cash-for-clunkers style initiative to convince Americans to swap existing vehicles for electric ones. Biden has called for a $174 billion investment in electric vehicles as part of his infrastructure proposal. Backers of the push include the Transport Workers Union, Sunrise Movement, Sierra Club, American Public Transportation Association and International Brotherhood of Electrical Workers. Just two percent of the nation’s public bus fleet are currently zero-emission, according to the senators.” [Politico, 5/4/21 (+)]

 

Auto Manufacturers

 

Ford-Backed Argo Sees New Sensor As Key To Self-Driving Cars. According to Bloomberg, “Argo AI, the self-driving startup backed by Ford Motor Co. and Volkswagen AG, has developed a sensor it believes will be key to commercializing autonomous transportation in cities, suburbs and on the highway. The Pittsburgh-based company, which plans to go public as soon as this year, unveiled a lidar sensor Tuesday capable of ‘seeing’ 400 meters (437 yards) down the road with almost photographic detail. Lidar bounces light off objects to create an image of the road ahead, providing critical information to computers that pilot next-generation technology in vehicles without human drivers. The new sensor will be at the heart of the self-driving system that will debut on Ford’s ride-hailing and delivery vehicles next year and on VW models in the middle of the decade. Argo’s lidar could remove some roadblocks holding back more widespread adoption of driverless technology, in part by improving the visibility of other vehicles in low-light conditions. ‘It really unlocks our ability to operate safely on highways and to then expand to entire metropolitan areas,’ Bryan Salesky, Argo’s chief executive officer and co-founder, said in an interview. Argo is testing its technology in six U.S. cities with vehicles that shuttle both cargo and passengers, Salesky said. ‘We’re running multiple shifts in high-demand areas, like surface streets, and now also highways.’ Robotaxi Catalyst? The drive toward commercialized robotaxis has slowed in recent years after high-profile crashes and the death of a woman in Arizona who was struck by a self-driving test vehicle operated by Uber Technologies Inc. The pandemic further delayed planned launches of the technology, including from Ford, which pushed back its commercialization by a year. But Argo’s innovation may help speed up progress.” [Bloomberg, 5/4/21 (=)]

 

Nissan Follows Renault In Selling $1.4 Billion Daimler Stake. According to Bloomberg, “Nissan Motor Co. sold its entire stake in Daimler AG for 1.15 billion euros ($1.4 billion), joining its partner Renault SA in generating funds for turnaround efforts. Nissan sold about 16.4 million shares at 69.85 euros each, according to a statement on its website Wednesday. Renault shed its Daimler stake in March, bringing in 1.14 billion euros. Daimler shares closed at 72.41 euros on Tuesday. Like Renault, Nissan is trying to restore profitability and overhaul its portfolio after the 2018 arrest of their long-time leader Carlos Ghosn threw the alliance into disarray. Projects the two companies started with Daimler just over a decade ago were among the endeavors showing signs of stress before Nissan insiders orchestrated the former chairman’s downfall almost three years ago. Nissan said the proceeds from the Daimler stake sale will be used to ‘further strengthen and enhance its business competitiveness, including investments to promote electrification.’ The industrial partnership between Nissan and Daimler ‘remains unchanged and isn’t impacted by the sale,’ the Yokohama, Japan-based automaker said in the statement. The two companies will continue to collaborate in several areas, it said. Several of Ghosn and former Daimler Chairman Dieter Zetsche’s projects to jointly develop and produce vehicles turned into bruising experiences. Mercedes culled the X-Class pickup that was based on the Nissan Navara due to poor sales, and customers mocked the mediocre quality of the small Citan van that shared components with Renault. The collaboration the companies planned for a factory in Aguascalientes, Mexico, also didn’t pan out as initially planned. Ghosn and Zetsche regularly hosted joint press conferences at car shows before Japanese police arrested the former in late 2018 on suspicion of financial misconduct. Zetsche stepped down from his roles at Daimler the following year.” [Bloomberg, 5/4/21 (=)]

 

Electric Vehicles

 

Electric Cars Are Bad, Right? — No! According to Clean Technica, “After US President Biden’s Leaders Summit on Climate, the Daily Mail posted the following story: ‘Biden’s climate plan could limit you to eat just one burger a MONTH, cost $3.5K a year per person in taxes, force you to spend $55K on an electric car, and ‘crush’ American jobs.’ While the thought of fewer burgers equated with job loss is an interesting rhetorical scare structure, the real kicker was the ominous foreshadowing about electric cars — that their sticker shock is considerable, way beyond the budget of the Average Joe. This new way of saying ‘electric cars are bad’ was picked up by Fox News, regurgitated by commentators, lawmakers, and others, and sent ripples of fear throughout the car community. (Fox later apologized for its inaccurate messaging.) We hear it all the time, right? Electric cars are bad. Period. ‘They’re not as green as you think.’ ‘Who can afford an EV? They’re too expensive.’ ‘The batteries are a big, big problem — they don’t last long enough, and where do you dispose of them?’ ‘The short range of EVs should make you wary of buying one.’ ‘People have, for years, been fed lies from electric car companies and politicians.’ It’s time to figure out the truth behind the confusion surrounding electric cars. Are electric cars bad, or not? Electric Vehicles aren’t Really Necessary for Us to Fight Climate Change — Right? Around the world, governments and automakers are promoting electric vehicles as a key technology to curb oil use and fight the existential climate crisis that surrounds us. The US Department of Energy has put to rest the myth that EVs are worse for the environment than vehicles that use diesel or gas engines. A consensus of experts agree, according to the New York Times, that plug-in vehicles are more climate-friendly than gas-powered, or internal combustion engines (ICEs). USA Today reminds us that getting gas to the fuel tank of a traditional car requires extracting petroleum from the Earth, refining it to gas, and transporting it to gas stations for consumers to purchase.” [Clean Technica, 5/4/21 (+)]

 

Buying An Electric Vehicle? Here Is Some Advice. According to the New York Times, “The allure of the electric vehicle has never been stronger. Tesla is raking in record profits. General Motors plans to sell only electric cars by 2035. Volkswagen is aiming to make them cheaper than gasoline-powered vehicles. And surveys show that at least two-thirds of American drivers are open to buying an E.V. Many people still have concerns about cost, choice and charging, but those barriers are falling fast and President Biden hopes to speed things along with tens of billions of dollars in incentives. It can feel overwhelming and exciting to someone in the market for a car. Here’s how you should think about whether an electric vehicle is right for you. What are you looking for? Be honest. Electric vehicles are fast, are fun to drive, require little maintenance and produce no tailpipe emissions, a major contributor to climate change. But even if you’re sure you want one, there are many to choose from. That’s why it’s important to understand what you’re looking for. ‘Is it basic transportation? Or is it an expression of yourself and your personality?’ said Matt DeLorenzo, senior managing editor for Kelley Blue Book. ‘Cars are a statement about their buyers. If they weren’t, there wouldn’t be a Mercedes.’ Take Tesla. Sure, the company makes powerful, modern and fast electric vehicles. But the appeal is also tied up in what a Tesla says about its owner. Buying one means buying into a community of early adopters — and, to an extent, into the views and visions of Elon Musk, the company’s magnetic and brash chief executive. As a result, many car people either love or hate Tesla. Some electric vehicles, like the Hyundai Ioniq, the Nissan Leaf or the Mini Cooper SE, start around $30,000 and are economical and ecological alternatives to a gas-powered car.” [New York Times, 5/4/21 (+)]

 

State and Local

 

‘It Hits The Mark’: Large Part Of $5 Billion Transportation Bill Focuses On Electric Cars. According to CBS Denver, “A wide ranging and slightly bipartisan bill to transform Colorado’s transportation system and usher in a new era around electric cars, buses and trucks was introduced at the capitol on Monday. The biggest change most people will see is an increase in fees on a variety of everyday items to pay for the improvements to roads, bridges, tunnels and more. ‘I’ve heard from constituents for years transportation being a top priority or concern,’ said Sen. Kevin Priola, a Republican from Adams County. ‘There’s no free lunch at the end of the day and I think this proposal as it’s crafted it hits the mark. We need to lead on this issue for the state of Colorado.’ The rest of the Republican caucus disagrees, arguing the new measure will hurt low-income Coloradans the most and calling for more stimulus and general fund money to be used. Instead, the measure calls for fees to be placed on a variety of deliveries, from online retailers to pizza. Fees will also be added to gas. Democrats said during a Tuesday press conference this bill, around $5 billion in spending, is not a band aid, but a robust plan to take Colorado into the next generation. The emphasis is being placed on users of the road to pay their fair share. The largest fee could be on electric cars. ‘It addresses both the highway needs and also the multimodal and transit needs. Really significant investment it makes in transportation electrification which I think is essential in achieving our state climate and air quality goals,’ said Will Toor, the Executive Director of the Colorado Energy Office. More than $700 million is proposed to go toward charging stations, turning buses from gas to batteries and incentivizing more electric car purchases. ‘As they grow to much larger numbers you really do need to make sure that they are paying enough to maintain our road system. A decade from now when there’s a million electric vehicles on the road, they’re going to be paying the same amount as the average gasoline vehicle,’ Toor said about a fee on Electric Vehicles to help pay for the plan.” [CBS Denver, 5/4/21 (=)]

 

NYC Could Reap $600 Million With Car Emissions Fee, Monitor Says. According to Bloomberg, “New York City could generate more than a $1 billion a year by imposing an emissions toll on cars and trucks and requiring residency to receive retiree health benefits, the city’s Independent Budget Office said. The suggested $2.49 toll on tailpipe pollution, assessed at existing bridge and tunnel tolling locations, could raise $596 million, the budget monitor said. The tax, which would need approval from the state legislature, would offset the ‘social cost’ of emissions that contribute to asthma, heart disease and lung cancer, according to the IBO. The Metropolitan Transportation Authority’s planned congestion pricing system would provide more tolling areas. The city could save another $416 million by requiring retirees to live in New York City or six surrounding counties in order to be eligible for retiree health benefits. More than 30% of retired city employee who faced a residency requirement when they worked for the city now live outside the area. The city spent $2.7 billion on health insurance and Medicare Part B premiums for retired city employees and their families in fiscal 2020, according to the IBO. ‘While Covid-related federal aid has provided the city with near-term fiscal relief, the city still faces projected budget shortfalls in future years even as the public’s demand for new or better services outstrips available resources,’ said IBO director Ronnie Lowenstein in a news release. Despite receiving $13 billion in new federal stimulus money, New York City is facing annual budget deficits of about $4 billion starting in the fiscal year beginning July 1, 2022, according to city budget officials. Last month, Mayor Bill de Blasio proposed a $98.6 billion budget that would expand free pre-kindergarten to 3-year-olds, hire 10,000 residents to clean up the city and increase education spending by $2.3 billion.” [Bloomberg, 5/4/21 (=)]

 

Research and Analysis

 

Surprising Number Of EV Owners Switch Back To Gas Power, Study Says. According to CNET, “As so much of the world works to pivot away from fossil fuels and the internal-combustion engine, a new study from the University of California, Davis, published in the journal Nature Energy last week, showed some concerning signs for what the auto industry still needs to get right. According to this study, which looked at California EV owners specifically between 2015-2019, 18% of electric vehicle owners switched back to a gas-powered car. For plug-in hybrid owners, 20% of them flipped back to a car solely powered by an engine. The major takeaway from the EV flip-flopping lands in the lap of charging -- specifically at-home charging. The lack of reliable Level 2 charging at home (that’s a 240-volt plug) was a major factor leading to EV ‘discontinuance,’ as the researchers called it. That makes sense. If you don’t have a place to charge reliably, it makes it a lot harder to enjoy the benefits associated with an EV, including an overall lower cost of ownership. Public charging infrastructure remains just OK, with many stations down for maintenance, or simply not close enough to drivers, even in California, where chargers are more common than the rest of the US. And charging times at a public station still aren’t on par with gassing up a car. According to the research, about half of the respondents who bought another EV had access to Level 2 charging, compared to the 30% who dumped the electric lifestyle, but had a proper plug at home. The research found owners were 53% less likely to buy another EV if they did not have access to convenient, at-home charging. Essentially, it was a coin toss over whether an EV owner either stuck with it or returned to gas pumps. To be fair to automakers and charging companies, things are getting much better, especially compared to the middle of the last decade when researchers acquired data.” [CNET, 5/4/21 (=)]

 

Experts Warn Emissions May Quickly Return To Pre-Pandemic Levels. According to The Hill, “The pandemic plunge in carbon emissions may be short-lived unless governments implement policies now that encourage actions such as increased public transportation, climate experts are warning. Emissions plunged 17 percent globally at the onset of the pandemic, in spring 2020, but a September report by the World Meteorological Organization found they were on the rise again. Global carbon dioxide emissions fell just 6.4 percent last year. ‘The biggest contributor to the drop in emissions in 2020 was the slowdown of road transport, and those emissions have rebounded as soon as the confinement eased in the various regions,’ Corinne Le Quéré, a professor of climate change science at the University of East Anglia in the United Kingdom, told The Hill. More activities are likely to resume as more people become vaccinated and states lift COVID-19 restrictions. While working from home remains widespread, an eventual return to the office may mean another round of increased emissions. In the U.S., ‘there are several countervailing trends,’ said Dan Becker, director of the Center for Biological Diversity’s Safe Climate Transport Campaign. ‘I think there have been some people who are reluctant to use mass transit, which would be a disaster for mass transit and the environment,’ he said. ‘On the other hand, I think there are a lot of people who have found it enjoyable and more productive to work from home and will want to continue to do so.’ Rob Jackson, a professor of earth system science at Stanford University, said the emergence from the pandemic is likely to lead to a spike in emissions, mainly because of cars. ‘The quickest jump will come when everyone hops back in their cars and starts commuting regularly,’ he said. ‘COVID-19 may have killed public transportation,’ he added. ‘We don’t know how many years it will take to restore ridership or how much money it will take to prop up public transport until then.’” [The Hill, 5/4/21 (=)]

 

International

 

As Cars Go Electric, China Builds A Big Lead In Factories. According to the New York Times, “Xpeng Motors, a Chinese electric car start-up, recently opened a large assembly plant in southeastern China and is building a matching factory nearby. It has announced plans for a third. Another Chinese electric car company, Nio, has opened one large factory in central China and is preparing to build a second a few miles away. Zhejiang Geely, owner of Volvo, showed off an enormous new electric car factory in eastern China last month rivaling in size some of the world’s largest assembly plants. Evergrande, a troubled Chinese real estate giant, has just built electric car factories in the cities of Shanghai and Guangzhou and hopes to be making almost as many fully electric cars by 2025 as all of North America. China is erecting factories for electric cars almost as fast as the rest of the world combined. Chinese manufacturers are using the billions they have raised from international investors and sympathetic local leaders to beat established carmakers to the market. Success is far from assured. The players include start-ups, electronics manufacturers and other car industry rookies. They are betting that drivers in China and beyond will be willing to spend $40,000 or more for brands that they had never heard of. Chinese automakers concede that experience gives the established car companies some advantages. But they insist their plans will work. ‘We have the will, and we have the patience,’ said He Xiaopeng, the chairman and chief executive of Xpeng, in an interview. ‘I think we will find it very challenging, but we must also move forward.’ The Chinese industry has momentum. China will be making over eight million electric cars a year by 2028, estimates LMC Automotive, a global data firm, compared with one million last year. Europe is on track to make 5.7 million fully electric cars by then.” [New York Times, 5/4/21 (=)]

 

Opinion Pieces

 

Analysis: This Is Not A Review Of Ford’s New Electric Mustang. According to Robinson Meyer in The Atlantic, “The Ford Mustang Mach-E is, at first glance, what a new car is supposed to be in 2021. On the outside, it borrows iconic Mustang styling for a family-friendly but sporty crossover, the fastest-growing car segment in the United States. On the inside, it takes after Tesla’s Model 3, with a full-body moonroof and a glowing screen, larger than an iPad, mounted in the dashboard. And underneath, it’s all electric, offering 480 horsepower, 305 miles of EPA-estimated range, and zero greenhouse-gas emissions. With essentially instantaneous acceleration, a smooth ride, and a roomy back seat, it’s ideal for young families and adventurous retirees— Wait—is this a car review in The Atlantic? No, an august magazine like The Atlantic doesn’t do car reviews. This is what we in the biz call an ‘ideas piece,’ a story that articulates an important new idea that’s changing our world. It will also tell you whether the car is any good or not. Phew. What’s the idea? Well, there are two of them, actually. The first is that this is an important car—not only for Ford, the fifth-largest automaker in the world by sales, but also for the Biden administration and the United States. The Mach-E aspires to be the first mass-market competitor to Tesla, according to Jim Farley, Ford’s CEO. The Mach-E’s price agrees: Although a Tesla Model 3 with 263 miles of range starts at $40,190, a base-model Mach-E with 230 miles of range costs $35,395 after federal tax credits. To put it in terms that might resonate with some Weekly Planet readers, that’s only 50 bucks more than a new Subaru Crosstrek Hybrid. But the Mach-E is more than its sticker price. Today, every mass-market automobile is built on top of what’s called a ‘platform,’ a term for the chassis, drivetrain, and general mechanical guts that remain the same from vehicle to vehicle. Many different cars in an automaker’s lineup will have the same platform.” [The Atlantic, 5/4/21 (+)]

 

Chad Ellwood

Senior Research Associate

Climate Action Campaign

cellwood@cacampaign.com

614.570.3644

He/Him