White House

 

Broad Biden EJ Strategy Drives New Alliances Across Federal Agencies . According to InsideEPA, “The Biden administration plan to integrate environmental justice (EJ) throughout the government is driving new alliances between EPA and other traditional environmental regulatory and enforcement agencies as well as public health and consumer protection agencies. Several attorneys indicate that these actions should precede significant EJ efforts though others say it is more window dressing than real change on the ground. … ‘The big takeaway’ is that this administration has ‘prioritized substance over form and is trying to get at the actual health effects and improving the health of environmental communities with environmental justice issues. And that’s kind of morphed into an all-hands-on-deck, more-comprehensive approach to problem solving and using resources and eventually enforcement tools,’ [Conrad Bolston, an attorney at Vinson & Elkins] says. Among the administration’s recent actions, the Department of Justice (DOJ) and the Department of Health & Human Services (HHS) have each created agency-specific Offices of Environmental Justice (OEJ), with DOJ also launching a broader EJ strategy that lists a range of other federal coordinating agencies. These include EPA, the Department of Transportation’s Pipeline & Hazardous Materials Safety Administration; the Federal Aviation Administration; the Department of Housing & Urban Development; the Coast Guard; the Army Corps of Engineers; the Department of the Interior (DOI); the Department of Agriculture; the Department of Defense; the Department of Energy (DOE); the Department of Commerce; the Food & Drug Administration; the Consumer Products Safety Commission; and the Department of Labor’s Occupational Safety & Health Administration and Mine Safety & Health Administration.” [InsideEPA, 6/2/22 (=)]

 

Biden’s Fantastical Claim Of $500 In Annual Utility Savings. According to The Washington Post, “‘A dozen CEOs of America’s largest utility companies told me earlier this year that my plan would reduce the average family’s annual utility bills by $500 and accelerate our transition from energy produced by autocrats.’ — President Biden, in an opinion article titled ‘My Plan for Fighting Inflation,’ published in the Wall Street Journal, May 30 This line caught our attention. After all, the typical U.S. family spends $2,060 on average per year for home utility bills, according to the most recent estimate published by EnergyStar.gov. So Biden is promising big savings. … First of all, that’s eight years from now — not a lot of help with the current inflation problem, which was the frame of Biden’s op-ed. But the bigger problem is that ‘national average annual household energy costs’ is not the same thing as household utility bills. John Larsen, a Rhodium partner and principal author of the report, said the estimate includes both home energy services and the cost of driving. The two elements are roughly equal in terms of energy costs of $4,163 — $2,126 for mobility and $2,037 for home energy. (Note that the home energy element is similar to the EnergyStar estimate.) But most of the estimated savings, Larsen said, comes from the driving side of the equation. ‘Of the $495 in savings, $403 comes from mobility savings (spending less money on gasoline either because of more efficient cars or electric vehicles) and the remainder is home energy savings,’ he wrote in an email.” [The Washington Post, 6/2/22 (-)]

 

Federal Agencies

 

Amid Backlash, USPS Will Consider Buying More EVs. According to Politico, “The U.S. Postal Service yesterday announced it will reconsider the number of electric vehicles it plans to purchase as part of its multibillion-dollar effort to replace its aging delivery fleet. The quasi-independent agency stopped short of making a firm commitment, but said its plan to consolidate facilities and make other operational changes merits a second look. The USPS said it will conduct a supplemental environmental impact analysis, a step environmental groups and Biden administration officials have long called for. Postmaster General Louis DeJoy said he expects the updated analysis may lead the agency to purchase more zero-emission vehicles for its ‘next generation delivery vehicles’ (NGDV). He did not say when the analysis would be concluded. The agency did not say when the supplemental review will be completed, but the first batch of new vehicles is expected to hit the road in late 2023. ‘As I noted when we placed our initial NGDV delivery order, the Postal Service would continue to look for opportunities to further increase the electrification of our fleet in a responsible manner, as we continue to refine our operating strategy and implement the Delivering for America plan,’ DeJoy said in a statement. ‘A modernized network of delivery facilities provides us with such an opportunity.’” [Politico, 6/2/22 (=)]

 

Overhauled Delivery Route Plan Could Lead USPS To Boost EV Purchases. According to InsideEPA, “The U.S. Postal Service (USPS) is pledging to supplement its controversial environmental review of its plan to update its mail truck fleet with mostly conventional vehicles, asserting a separate overhaul of the agency’s delivery operations could allow it to increase the number of electric vehicles (EVs) it will purchase. Democratic-led states, environmental groups and a labor union have filed suit over USPS’s National Environmental Policy Act (NEPA) review of the vehicle procurement plan, arguing it contained several flawed assumptions regarding EV and battery costs, among other issues. Now, USPS in a June 1 press release says it will ‘soon’ publish a notice of intent to supplement its environmental impact statement (EIS), in light of changes to delivery routes. The agency said Postmaster General Louis DeJoy recently outlined a plan to ‘modernize and aggregate delivery operations [that] will make delivery routes more efficient, [and] which may affect the appropriate mix of vehicles to be procured for the Postal Service’s delivery fleet.’ Aggregating delivery operations into a smaller number of facilities would add miles to most delivery routes, a move that may make it easier to justify deployment of EVs. In addition, the USPS said the operations overhaul would allow for installation of upgraded electrical systems and charging equipment, curbing risks of shifting to EVs.” [InsideEPA, 6/2/22 (=)]

 

The USPS Is Already Testing Mail Delivery By Electric Bike With These Neat Little US-Built Mail Bikes. According to Electrek, “I recently wrote an opinion piece about how the United States Postal Service (USPS) could look to solve its gas-guzzler truck problem by following Europe’s example of delivering mail with smaller electric cargo bikes. As it turns out, the postal service has already been testing this out, and the little electric mail bikes look pretty snazzy too. Not only are they designed to carry heavy cargo loads, but they’re also built in the US by Montana-based Coaster Cycles. The electric mail bikes are built on the Freighter AW platform, which can be modified for various types of commercial e-cargo bike applications. Technically it’s an electric cargo tricycle, but it almost looks more like a cargo van than a bike. The giant rear cargo box provides 72 cubic feet (over 2,000 liters) of space for mail, and the bike can hold up to 400 lb. (181 kg) of cargo. Hydraulic disc brakes help bring all of that weight to a stop quickly and safely. Powering the bike is Bosch’s Cargo Line e-bike drive system, which supplies the rear wheels with 85 Nm of torque. The drive system is paired with a 500 Wh battery to power the mid-drive motor, though multiple batteries can likely be swapped in to extend the range. It’s not like the bike lacks space to carry a spare battery or two.” [Electrek, 6/2/22 (=)]

 

Congress

 

House GOP Unveils Energy, Climate Plans Ahead Of Midterms. According to Politico, “House Republicans today unveiled a framework to tackle high energy prices and climate change, but it largely covers familiar ground and will not include specific emissions targets. The policy plan has been in the works for nearly a year, developed by the House GOP energy, climate and conservation task force put together by Minority Leader Kevin McCarthy (R-Calif.) and led by Rep. Garret Graves (R-La.) (E&E Daily, Jan. 21). The platform seeks to expand domestic production of both fossil fuels and zero-carbon energy, boost critical minerals mining and streamline environmental permitting, according to conservative climate advocates supporting the effort. It would also attempt to focus the ‘energy innovation’ rhetoric Republicans have homed in on as they have moved away from outright climate denial in recent years. ‘One of the objectives here is being very, very clear to the American public that we recognize that there’s an energy crisis and we recognize the causes of this energy crisis,’ Graves told reporters today. ‘And unfortunately, even in my meeting with [Energy Secretary Jennifer Granholm] last week, it’s crystal-clear to me that this administration is either ignorant or is refusing to acknowledge the causes of the energy crisis that we’re experiencing right now.’ … The climate and energy plan includes six broad points: ‘Unlock American Resources,’ ‘Let America Build,’ ‘American Innovation,’ ‘Beat China and Russia,’ ‘Conservation with a Purpose’ and ‘Build Resilient Communities.’” [Politico, 6/2/22 (=)]

 

Emissions Standards

 

EPA Proposes Updating Gasoline Regs, Slashing Emissions. According to Politico, “A series of overdue regulatory updates to a key part of the nation’s fuel distribution network would slash overall emissions of benzene and other pollutants from those sources by more than one-third, according to a newly released EPA proposal. The draft package, signed yesterday by agency chief Michael Regan and encompassing several Clean Air Act provisions, in part targets emissions from bulk gasoline storage terminals and the equipment used to load gas into tanker trucks for delivery to service stations. If the package is made final, EPA predicts that stricter standards and other control requirements would cut releases of hazardous pollutants, a category that includes cancer-causing benzene, from about 6,100 tons to 3,900 tons, a drop of 36 percent. Similarly, annual emissions of smog-forming volatile organic compounds would fall from 121,000 tons to 76,000 tons. The expected upfront compliance costs to industry add up to almost $67 million. At a time when pump prices are at record highs, EPA says that the added expenses ‘are not expected to result in a significant market impact, regardless of whether they are passed on to the purchaser or absorbed by the firms.’ For reasons not spelled out in the proposal, EPA also predicts that there will be modest increases in emissions of sulfur dioxide, carbon dioxide and other pollutants. … EPA is undertaking the package as part of a settlement to a federal lawsuit brought by Our Children's Earth Foundation, a California-based nonprofit; the final version is due a year from now (Greenwire, May 3). In the suit, the group alleged that the agency was long past Clean Air Act deadlines for conducting mandatory reviews of regulations that date back as far as 1983.” [Politico, 6/2/22 (=)]

 

The Simple, Impactful Way To Make Cars Cleaner. According to Vox, “The electric vehicle revolution is charging ahead: Global passenger EV sales grew by 103 percent in 2021. In the last quarter of 2021, they accounted for 13 percent of all new vehicle sales. And many more EVs are continuing to roll out. Just last week, Ford delivered the first electric version of its F-150 truck, the best-selling vehicle in the United States, to a customer in rural Michigan. Ford plans to invest $25 billion in EVs through 2025. General Motors has two versions of the Bolt for sale, and is planning to begin delivering its Hummer EV this fall. By 2025, GM will invest $27 billion in EVs and by 2035, the company says it will be all-electric. As gasoline prices reach record highs and the summer road trip season kicks off, getting around without gas is a more appealing prospect than ever. And this year may be an inflection point, where the number of internal combustion engines on the road reach their peak. Countries like Finland, Germany, and New Zealand have plans to phase out gasoline vehicles entirely. But while many car companies are driving toward a future filled with electrons, it’s their conventional cars that will be most consequential for the global climate in the meantime. Transportation is the largest source of carbon dioxide emissions in the US — and cars and light trucks account for 60 percent of this share. In 2021, President Joe Biden committed to cutting US emissions 50 to 52 percent below 2005 levels by 2030, which would demand huge cuts in emissions from cars, vans, pickup trucks, and crossover SUVs.” [Vox, 6/2/22 (+)]

 

Manufacturers & Fleets

 

BMW Group

 

BMW’s Long And Winding Road To Cut Gas From Carmaking. According to Bloomberg, “BMW’s move to build a fossil-fuel free car plant in Hungary is looking prescient as Europe’s manufacturing sector scrambles to replace Russian oil and gas with alternatives. While those plans would have been discussed long before the war in Ukraine, they show the drastic rethink and commitments companies face to wean themselves from oil and gas. The benefits will take time to roll in, even as the crisis speeds the pivot to renewable energy with Europe’s energy woes adding to the toll on carmakers already straining in the shift to electric cars. First, the 1 billion-euro Debrecen plant won’t be operational until 2025, so it wouldn’t provide an immediate buffer from the ongoing energy concerns, or if Russia decided to stop supplying gas. Carmakers depend on the fuel for their paint shops to generate heat and steam, some component-making involving melting of metals and for electricity to power their factories. The whole industry also relies on a multitude of components, particularly plastics, that use natural gas as feedstock as well as in production processes. Overall, gas accounted for over half of BMW’s energy consumption last year. While there are alternatives, short-term fixes come at a price for the bottom line or the environment.” [Bloomberg, 6/2/22 (=)]

 

Ford Motor Co.

 

Ford Polishes Rust Belt Base With Both EVs And Gas Cars. According to Politico, “Ford Motor Co. yesterday said it would spend $3.7 billion and add more than 6,000 jobs in a bid to ease the fears of Midwestern states and labor unions that they’re losing out in a transition to electric vehicles. The investment in Michigan, Ohio and Missouri will go to produce both electric and internal-combustion vehicles, underscoring that America’s automakers still see a strong market for cars and trucks with gas tanks this decade. Ford also carved out $1 billion to spruce up its workplaces — a nod to the difficulty of attracting workers amid an industrywide transformation. ‘I am proud that we are investing in the Midwest and taking real action to provide better benefits and working conditions for our workers on the plant floor,’ said Bill Ford, the company’s executive chair, in a statement. The changes come in a time of tumult for one of America’s Big Two automakers. It has consumer hits with the F-150 Lightning and the Mustang Mach-E, but the switch to EVs is also prompting a wholesale reorganization. In March, CEO Jim Farley cleaved the century-old automaker into three divisions: electric, commercial and internal-combustion (Energywire, March 3). The move to EVs is prompting a new relationship with Ford’s dealerships and causing Farley to bet that some legacy automakers will fail. ‘There’s a shakeout coming,’ Farley said at the Bernstein Strategic Decisions Conference yesterday, according to Automotive News.” [Politico, 6/3/22 (=)]

 

Ford Investing $3.7B To Create 6,200 Jobs In Michigan, Ohio, Missouri. According to Detroit Free Press, “Ford Motor Co. is creating 6,200 new hourly union jobs in Michigan, Ohio and Missouri that offer full health coverage on day one as part of a new $3.7 billion investment that includes financial support from Michigan and Ohio policymakers, the company announced Thursday. ‘We’ve been working very closely with the UAW leadership on this,’ Kumar Galhotra, president of Ford Blue, told the Free Press. In addition, nearly 3,000 United Auto Workers will go from temporary worker status to full-time with full benefits and pay raises, ahead of the schedule set by the union’s collective bargaining contract that expires next year, Ford said. ‘Contractually, we don’t have to do this, but we think it’s the right thing to do,’ Galhotra said. ‘We believe and the UAW leadership believes that this is the right thing to do for those employees.’ It’s a long-term investment that keeps the workforce strong, he said. Ford is also planning to immediately begin spending $1 billion over five years to improve the ‘work experience’ of its U.S. employees based on feedback from the UAW — offering better access to healthy food, better security and lighting in parking lots, better break facilities and new on-site charging stations for electric vehicles driven by employees, Galhotra said.” [Detroit Free Press, 6/2/22 (=)]

 

Ford To Invest $3.7 Bln For Production Of EVs, Gas-Powered Vehicles. According to Reuters, “Ford Motor Co (F.N) on Thursday said it will invest $3.7 billion in assembly plants in Michigan, Ohio and Missouri for production of both electric and gasoline-powered vehicles. Ford, whose shares were up 2.4% in afternoon trading, said $2.3 billion of the total investment will be spent on EVs, part of the $50 billion in EV spending through 2026 it had previously outlined. Ford officials said the company will receive incentive packages of about $150 million and about $200 million from Michigan and Ohio, respectively. As part of the investments, the Michigan-based automaker said it will add more than 6,200 hourly jobs and convert 3,000 temporary workers into full-time employees who will receive healthcare benefits and higher pay. It also will add a new electric commercial vehicle to its lineup mid-decade. Ford in March said it was boosting its spending on EVs to $50 billion through 2026, up from $30 billion previously. It also said it would run its EV and internal combustion engine (ICE) businesses as separate units in a move aimed at catching EV industry leader Tesla (TSLA.O).” [Reuters, 6/3/22 (=)]

 

Ford Is Investing $3.7 Billion To Expand Midwestern Auto Plants. According to Bloomberg, “Ford Motor Co. is investing $3.7 billion in factories across three Midwestern US states to pump out more electric vehicles and traditional gasoline-fueled autos in a sweeping expansion that will create 6,200 union jobs. Five Ford plants will be expanded to produce more hot sellers, such as the electric F-150 Lightning pickup, and roll out new models, including a battery-powered commercial vehicle to be built at the automaker’s factory in Avon Lake, Ohio, the company said Thursday in a statement. The timing of the investments are unusual, coming more than a year before Ford is set to negotiate a new four-year contract with the United Auto Workers. Normally, the automaker would wait and use potential factory enhancements and new jobs as leverage in talks with the union. But in a tight labor market, Ford is moving quickly to secure the workers it needs. It could also get on the UAW’s good side a year after the union accused the automaker of ‘corporate greed’ for moving some EV production to Mexico from Ohio. With the economy roiled by inflation, Ford is scoring political points by expanding in the industrial Midwest. President Joe Biden hailed Ford’s announcement as ‘great news for American workers’ and was quick to claim credit for the new jobs.” [Bloomberg, 6/2/22 (=)]

 

Ford To Invest $3.7 Billion In US Production. According to Inside EVs, “Ford has announced an investment of 3.7 billion dollars in its production in the US states of Michigan, Ohio and Missouri. With the equivalent of 3.4 billion euros, the production of electric cars is to be strengthened and 6,200 new jobs created. According to Ford, 1.5 billion dollars (1.4 billion euros) alone are to flow into the assembly plant in Ohio in order to assemble a new electric commercial vehicle there from the middle of the decade. The plant expansion is scheduled to begin this year. Ford has not yet disclosed further details on the new e-utility vehicle. Ford is also investing in the announced production increase for the all-electric F-150 Lightning to 150,000 units per year at the Rouge Electric Vehicle Center in Dearborn (Michigan) – 2,000 new jobs are planned. A total of two billion dollars is to be invested in Michigan, but not all of it is eMobility-related. It also involves the production of a new generation Mustang Coupé in Flat Rock and a new logistics centre. A third shift is also being introduced at the assembly plant in Kansas City (Missouri) to increase production of the Transit and its electric version, the E-Transit – at a cost of $95 million. The E-Transit has been out in the USA since the beginning of February. Ford had already invested 100 million dollars in the plant for the commercial vehicle and also created 150 full-time jobs there. In addition to the vehicle itself, the battery pack is also assembled in Kansas City.” [Inside EVs, 6/3/22 (=)]

 

Ford Plans 6,000 New Union Jobs In Three Midwestern States. According to The New York Times, “Ford Motor said on Thursday that it was planning to invest $3.7 billion in facilities across the Midwest, much of it for the production of electric vehicles, which the company said would create more than 6,000 union jobs in the region. ‘We’re investing in American jobs and our employees to build a new generation of incredible Ford vehicles,’ Jim Farley, the company’s president and chief executive, said in a statement. ‘Transforming our company for the next era of American manufacturing requires new ways of working.’ The announcement, made jointly with the United Automobile Workers union, detailed investments in three states. Ford said it would invest $2 billion and create about 3,200 union jobs in Michigan, including many tied to production of the new F-150 Lightning pickup truck, the company’s highest-profile and most important bet on electric vehicles. In Ohio, Ford will spend over $1.5 billion and create nearly 2,000 union jobs, primarily to build commercial electric vehicles in the middle of this decade. The company also said it would add over 1,000 union jobs at an assembly plant in Kansas City, Mo., that will produce commercial vans, some gas-powered and some electric. The company had indicated that some of the investments would be coming, like the expansion of production capacity for the F-150 in Michigan, but had not detailed the magnitude.” [The New York Times, 6/2/22 (=)]

 

Ford Announces New Mustang, Ranger, And Commercial EV In Major Midwest Expansion. According to The Verge, “Ford announced it will invest $3.7 billion in manufacturing facilities in Michigan, Ohio, and Missouri, with the promise to create 6,200 new unionized jobs as part of a major Midwestern expansion. The automaker also unveiled plans for an updated Mustang, Ranger, and a new electric commercial vehicle. In a joint announcement with the United Auto Workers, Ford said it will provide immediate healthcare benefits to all hourly employees ‘on day one,’ and convert nearly 3,000 temporary employees to permanent full-time status ahead of schedule. The company also said it would spend $1 billion to improve working conditions at its US plants. Ford didn’t disclose what type of new electric commercial vehicle it has planned, except to say it will be assembled at its factory in Ohio and will make its debut ‘mid-decade.’ The automaker recently launched production of its hotly anticipated F-150 Lightning electric truck and E-Transit commercial van. The company said the all-new Mustang coupe, which will be available globally, and Ranger pickup, which is only for the North American market, will be built in Michigan. Both vehicles will be gas-powered and built under the direction of Ford Blue, the company’s legacy powertrain division. Ford said it will also add jobs to boost production of F-150 Lightning in Michigan, as well as the Transit and E-Transit vehicles in Missouri. Those vehicles will be supervised by Ford Model E, the electric vehicle and software division. Earlier this year, the company split itself into two distinct divisions to enable its EV production to move at ‘startup speed.’” [The Verge, 6/2/22 (=)]

 

Ford CEO Expects To See Industry Consolidation As The Costs Of Transition To Electric Vehicles Rise. According to CNBC, “Ford Motor CEO Jim Farley expects the auto industry’s ongoing transition to electric vehicles to force major consolidation among automakers and suppliers in the years ahead. Farley said the massive amounts of capital needed to invest in the technologies will force smaller companies to be acquired and put pressure on new electric-vehicle start-ups that are already running into trouble as funding dries up. He said there will be more acquisitions, compared with the partnerships or joint ventures that are more common today. Legacy automakers and suppliers, he said, ‘absolutely will get consolidated.’ ‘There will be some big winners, some people who transition, some who won’t. Many of the small players cannot afford to make this transition,’ Farley said Wednesday during the Bernstein 38th annual Strategic Decisions Conference. Farley said the market that EV start-ups are going after isn’t ‘big enough to justify the capital that they’re spending or the valuations.’” [CNBC, 6/1/22 (=)]

 

US: Ford EV Sales Surged In May 2022 - Mach-E, E-Transit And F-150 Lightning. According to Inside EVs, “In May, the total sales of Ford and Lincoln vehicles in the US decreased by 4.5% year-over-year to 154,461, including 146,868 Fords (down 4.4%). Year-to-date, the company noted a 13.3% decrease to 763,558, including 727,559 Fords (down 13.1%). The company explains that the results are still affected by the global semiconductor chip shortage. Demand remains high and inventory continues to turn at record rates. In this background, Ford’s all-electric vehicles shine with 6,254 units in May (a new record and an increase of 222% year-over-year). That’s about 4.3% of the total Ford volume (a new record). The company appears to be pretty happy with the results, noting that the growth rate of BEV sales is ‘almost 4 times faster than the overall U.S. electric vehicle segment in May.’ Additionally, Ford notes that for the month, it has moved into second place in US BEV sales behind Tesla. The very positive news is that Ford is increasing sales of the Mach-E, achieving a new monthly record, as well as ramping up the E-Transit vans and F-150 Lightning (first 201 units). Ford BEV sales in the US: Ford Mustang Mach-E: 5,179 (up 166%) [record] Ford E-Transit: 874 [record] Ford F-150 Lightning: 201 (first month) [record] Total: 6,254 (up 222%) [record] and 4.3% share Those are the results that we like to see.” [Inside EVs, 6/3/22 (=)]

 

General Motor Corp.

 

The New Chevrolet Bolt Will Be The Cheapest Electric Vehicle In The US. According to CNN, “General Motors announced Wednesday that it’s cut the price of the most affordable Chevrolet Bolt to $26,595, making it the cheapest electric vehicle in the US. The Bolt’s new price slightly undercuts the electric Nissan Leaf, which has a suggested retail price of $27,400. The Bolt’s price has fallen 27% from the 2020 model, which it sold for $36,620. GM’s electric vehicle push has been hampered by a recall of Bolt batteries, which led to supplier LG paying it $1.9 billion last year. A series of fires triggered the recall, which was among the most expensive ever on a per-vehicle basis. GM halted production of the Bolt in September 2021 as it worked with LG to prioritize batteries for recalled vehicles, but the company restarted the assembly line in early April 2022. GM introduced a Bolt crossover, known as the Bolt EUV, in 2022. GM introduced the Bolt sedan in 2016 and sold 23,297 units in 2017. But sales slumped and have been generally flat, with GM selling a combined 24,828 Bolt sedans and crossovers in 2022. GM lowered the prices to make sure the Bolt vehicles are competitive in the marketplace, spokesperson Shad Balch said. ‘Affordability has always been a priority for these vehicles,’ Balch said. The 2023 Bolt EUV starts at $28,195, a $6,300 drop from its previous price.” [CNN, 6/1/22 (=)]

 

Stellantis

 

Stellantis To Pay Nearly $204 Million To Settle Emissions Fraud Case. According to The Detroit News, “Stellantis NV will pay almost $204 million to resolve a multi-year emissions fraud investigation into Fiat Chrysler Automobile NV diesel vehicles, according to a criminal information filing, which suggests the defendant has reached a deal to plead guilty. The Justice Department filing made on Thursday in the U.S. District Court for the Eastern District of Michigan represents the second criminal case in recent months against FCA US LLC, the U.S. subsidiary of the FCA group. FCA merged with French automaker Groupe PSA last year to create Stellantis. A company representative is expected to appear at a plea hearing on the automaker’s behalf at 1:30 p.m. Friday in federal court in Detroit, according to the court docket. A Stellantis spokesperson declined to comment. FCA was charged with conspiracy to defraud the United States in violation of the Clean Air Act and to commit wire fraud. Last week, Reuters reported the pending plea deal and said the automaker would pay approximately $300 million in penalties. In 2020, The Detroit News reported the company disclosed in financial filings that it was expecting to pay almost $259 million to settle the criminal allegations. The charge filed against FCA on Thursday is related to a pending 2019 case against diesel senior manager Emanuele Palma and two Italian nationals who work for FCA Italy SpA, the Italian subsidiary of Stellantis. The officials have been accused of conspiring to cheat federal emissions tests and deceiving consumers about the fuel efficiency of more than 100,000 diesel Jeep and Ram vehicles spanning model years 2014 to 2016.” [The Detroit News, 6/2/22 (=)]

 

U.S. Charges Stellantis Unit In Diesel Emissions Probe. According to Reuters, “The Justice Department on Thursday charged the U.S. business of Fiat Chrysler Automobiles with criminal conspiracy in its multi-year emissions fraud probe surrounding vehicles with diesel engines. Reuters reported last week FCA US LLC, now part of Stellantis NV (STLA.MI), had agreed to plead guilty to a criminal conspiracy charge arising from its efforts to evade emissions requirements for more than 100,000 older Ram pickup trucks and Jeep sport-utility vehicles in its U.S. lineup and would pay roughly $300 million in penalties. U.S. District Judge Nancy G. Edmunds in Detroit set a plea hearing for FCA US for 1:30 p.m. Friday. The government’s criminal information charges FCA US with conspiracy to defraud the United States to violate the Clean Air Act and to commit wire fraud, said the automaker deceived U.S. regulators and sold the vehicles ‘knowing that those vehicles did not meet U.S. emissions standards’ and also deceived customers ‘by making false and misleading representations.’ Stellantis declined to comment. The government said FCA US property subject to forfeiture was $203.6 million. FCA US is also expected to pay a criminal fine of about $96 million as part of the settlement. The imminent guilty plea represents the final significant action U.S. officials are expected to take against FCA in the emissions fraud matter.” [Reuters, 6/2/22 (=)]

 

Tesla Inc.

 

Elon Musk Wants To Cut 10% Of Tesla Jobs. According to Reuters, “Tesla (TSLA.O) CEO Elon Musk has a ‘super bad feeling’ about the economy and needs to cut about 10% of jobs at the electric carmaker, he said in an email to executives seen by Reuters. The message, sent on Thursday and titled ‘pause all hiring worldwide’, came two days after the billionaire told staff to return to the workplace or leave, and adds to a growing chorus of warnings from business leaders about the risks of recession. Almost 100,000 people were employed at Tesla and its subsidiaries at the end of 2021, its annual SEC filing showed. The company was not immediately available for comment. Tesla shares fell nearly 3% in U.S. pre-market trade on Friday and its Frankfurt-listed stock was down 3.6% after the Reuters report. U.S. Nasdaq futures turned negative and were trading 0.6% lower. Musk has warned in recent weeks about the risks of recession, but his email ordering a hiring freeze and staff cuts was the most direct and high-profile message of its kind from the head of an automaker. So far, demand for Tesla cars and other electric vehicles (EV) has remained strong and many traditional indicators of a downturn - including increasing dealer inventories and incentives in the United States - have not materialized. But Tesla has struggled to restart production at its Shanghai factory after COVID-19 lockdowns forced costly outages.” [Reuters, 6/3/22 (=)]

 

Misc. EV Startups

 

Nikola Founder Trevor Milton Blocks Company Share Sale. According to Bloomberg, “Nikola Corp.’s founder and former chair Trevor Milton voted against a proposal by the clean-energy trucking startup that would have authorized new shares to potentially raise capital, throwing the outcome into doubt, according to people familiar with the matter. Milton’s vote led to the decision announced late Wednesday to immediately adjourn Nikola’s annual shareholder meeting to June 30 so the company could work on soliciting more proxies in favor of the proposal, the people said, asking not to be identified discussing private information. An attorney who represents Milton didn’t return calls seeking comment. Approval requires a majority of outstanding shares. While 64% of votes cast so far were in favor of the share issuance, that represented only 42% of shares outstanding, not enough to pass the measure without Milton’s approval or additional support from retail stock owners. Milton is Nikola’s single largest shareholder with more than 11% of the stock. He effectively controls about 20%, or almost 90 million shares, through common stock he holds directly and an investment vehicle he co-owns, giving him the power to stop measures if a large chunk of Nikola’s largely retail stockholder base doesn’t vote in favor. About 95 million shares voted against the new-share issue. The company’s proposal would increase the number of shares outstanding by 200 million to 800 million, which would give Nikola the green light to sell equity and raise cash at any time going forward.” [Bloomberg, 6/3/22 (=)]

 

Nikola Founder Trevor Milton Votes Against Issuing New Shares. According to Reuters, “Nikola Corp’s (NKLA.O) founder Trevor Milton voted against the electric vehicle company’s proposal to issue new shares at the company’s annual general meeting, a Bloomberg News report on Thursday, citing sources. Milton’s vote, which threw the outcome into doubt, led to the decision to immediately adjourn the meeting, in order to allow the company time to solicit more proxies in favor of the proposal, the report said. The electric-truck maker said in a filing it adjourned the meeting to June 30 to solicit proxies to move ahead with the proposal to increase the company’s common stock to 800,000 from 600,000. (https://bit.ly/3t9tYpS) Nikola declined to comment on the matter and Milton’s attorney did not immediately respond to a Reuters request for comment.” [Reuters, 6/3/22 (=)]

 

Electric Vehicles

 

EV Sales & Transition

 

Driving With Electricity Is Much Cheaper Than With Gasoline. According to Yale Climate Connections, “The rising cost of gasoline and diesel is both a frequent headline and an ongoing financial drain for many, let alone a major issue in the upcoming November midterm elections. But unlike previous gas crunches, some consumers now have options about the energy source that powers their driving. Not long ago, electric vehicles were the domain of early-adopters and wealthy consumers, but times are changing fast. Moderately priced EVs range from $27,400 to $34,000, and as gasoline prices climb, EVs can offer respite from rising fuel costs. As of June 1, 2022, the U.S. average price of regular gasoline was $4.67, according to AAA, and gas prices have climbed 41% percent since the start of this calendar year. Experts are saying those prices will continue increasing in days and weeks ahead The cost of electricity, meanwhile, has remained fairly stable – and relatively inexpensive compared with gasoline and diesel fuels. The U.S. average price for residential electricity is 13 cents per kilowatt hour. How does the cost of driving an EV compare to driving a gasoline-powered car? The short answer is that it costs only $1.41 per ‘gallon’ to drive an EV. That’s a 70% discount compared with gasoline. The EV-to-gasoline cost comparison varies state-to-state, because the prices of electricity and gasoline differ in each state. The table below lists the breakdown of costs, by state.” [Yale Climate Connections, 6/2/22 (=)]

 

What It’s Like To Rent An Electric Car For The First Time. According to The Washington Post, “My experience with electric vehicles is the same as most Americans: I know they’re out there, but I’ve never owned or even driven one. They are an anomaly on the road here, making up less than 1 percent of the country’s 250 million cars, SUVs, vans and pickup trucks as of 2021, according to Reuters. And last year, EVs only accounted for about 3 percent of all the cars and trucks sold in the United States. And yet, interest in renting them is increasing — especially as gas prices continue to skyrocket — and rental companies are responding accordingly. In October, Hertz announced it was purchasing 100,000 Teslas. There has been a steady increase of EVs on peer-to-peer rental platform Turo, too; Albert James Mangahas, chief data officer for Turo, says they went from hundreds in 2014 to more than 25,000 in 2021. With a road trip on my agenda last weekend, I decided to rent an EV to Westchester, N.Y. — about 600 miles round trip. Going into it, I didn’t know what to expect on the cost or availability of rentals, how I would find places to charge — it’s called ‘range anxiety’ — or if I could figure out Tesla software. This is what I learned.” [The Washington Post, 6/2/22 (+)]

 

EV Resources & Technology

 

Panasonic Finalising Choice Of U.S. State For Battery Plant – Exec. According to Reuters, “Japan’s Panasonic Holdings Corp (6752.T), which makes batteries for electric car maker Tesla (TSLA.O), is finalising a decision on which U.S. state it will choose as the site for a new battery plant, a top executive said on Friday. ‘We’ve been making various considerations, but we are starting to finalise,’ said Panasonic Energy Chief Executive Officer Kazuo Tadanobu, speaking to reporters during a round table event. No decision had been made yet, he added. The Japanese conglomerate is looking at potential factory sites in Kansas and Oklahoma to supply the batteries to the U.S. electric automaker’s plant in Texas, two people with knowledge of the plan have said. Tadanobu told investors and analysts on Wednesday that the company had shipped samples of its more powerful ‘4680’ format electric car battery to Tesla. read more The 4680 format battery - 46 millimetres in width and 80 millimetres in height - is about five times bigger than those that Panasonic currently supplies, meaning the U.S. electric automaker could be able to lower production costs and boost vehicles’ driving range. Panasonic said mass production of the new battery is set to begin before the end of March 2024 at its plant in Wakayama, western Japan, before production is moved to North America. The Japanese company has partnered with Tesla for more than a decade, supplying batteries for its first cars.” [Reuters, 6/3/22 (=)]

 

Mining For Green Energy Risks More Abuses, Conflict — USAID. According to Politico, “Representatives for the U.S. Agency for International Development said yesterday that transitioning away from fossil fuels could stir conflict and human rights abuses abroad linked to the mining needed for electric vehicles and renewable energy projects. One of the biggest implications of the renewable energy transition is the ‘skyrocketing demand’ for minerals pivotal to making EV batteries, solar panels and wind turbines, USAID Chief Climate Officer Gillian Caldwell said at a virtual event hosted by the Wilson Center, a U.S. think tank. This demand creates ‘a complex mix of opportunities and challenges,’ including resource-rich developing countries coming under ‘increased influence’ from China ‘and other actors that seek to exploit valuable mineral resources at the expense of local communities,’ Caldwell said. Caldwell’s remarks offered a glimpse into how the federal government is assessing the potential risks in foreign mineral supply chains, at a time when the Biden administration is fielding requests to couple assistance to the domestic metals and mining sector with tightened human rights standards for imported minerals (Greenwire, May 20). Caldwell also noted there are clear benefits from mining metals, as the industries can create jobs and contribute more tax revenue to pay for civil works projects, like infrastructure upgrades. But Caldwell said USAID is seeing evidence that mining for the transition away from fossil fuels is tied to ‘increased corruption, human rights violations, environmental destruction and conflict.’” [Politico, 6/2/22 (=)]

 

Courts & Legal

 

Hawaii Youth Sue State Over Transportation Climate Harms. According to Associated Press, “Fourteen Hawaii children and teenagers filed a lawsuit Wednesday, alleging the state is violating the state constitution by operating a transportation system that harms the climate and infringes upon the plaintiffs’ right to a clean and healthy environment. The youths aged 9 through 18 said in their lawsuit that the Hawaii Department of Transportation has consistently prioritized building highways over other types of transportation. ‘Because of this climate pollution, children in Hawaii are experiencing grave threats to their ability to live healthful lives in the Islands now and into the future,’ the lawsuit said. The lawsuit said one plaintiff, a 14-year-old Native Hawaiian raised in Kaneohe, is from a family that has farmed taro for more than 10 generations. But extreme droughts and heavy rains caused by climate change are reducing crop yields and threatening her ability to continue this cultural practice, the complaint said. Rising sea levels also threaten to put their lands underwater, it said. The plaintiffs asked the court to declare the state has an obligation under the constitution to protect the climate and atmosphere for the benefit of present and future generations. The public interest law firms Earthjustice and Our Children’s Trust are representing the young people.” [Associated Press, 6/2/22 (=)]

 

States & Local

 

Senator Ernst Tours Hanson Career Center, Test Drives Electric Concept RV. According to Globe Gazette, “The John V. Hanson Career Center was a June 1 Hancock County stop for Senator Joni Ernst (R-Iowa) on her 99-county tour. Ernst toured the entire facility, visited with students and educators, and learned about career training programs offered at the trade center. Director Jim Haag led a tour through each program room as well as a student work and reading room. He oversees the Forest City-based partnership between North Iowa Area Community College and Forest City, Garner-Hayfield-Ventura, Lake Mills, and North Iowa High Schools. One of the big industry and business partners, Winnebago Industries, was represented by Chad Reece, its director of corporate relations. ‘This is seen as an incubator to increase technical knowledge across all of our platforms,’ said Reece while explaining how the center can help develop necessary work skills beyond the specific programs. Those programs include advanced manufacturing, construction trades, information technology, and health careers. North Iowa High School construction trades student Grant Walsh of Buffalo Center talked about how beneficial the program was for him personally. He noted that he intends to work for Winnebago Industries after receiving a job offer through the program. ‘I was really sold on it because I’m not a huge book work kind of guy,’ Walsh said. ‘I’m really hands on. I was really, really happy that this was available to me.’” [Globe Gazette, 6/2/22 (=)]

 

Bipartisan Support Grows To Add Millions To Michigan’s $1B Tax Incentive Fund. According to Bridge Michigan, “The state continues to celebrate its so-called ‘transformative’ job growth, but the gains also are depleting Michigan’s new $1 billion business attraction fund. Now both Democrats and Republicans say they expect to approve an addition to the SOAR Fund in the coming year’s budget. Bipartisan support is not tied to a specific dollar amount yet, said state Sen. Ken Horn, R-Frankenmuth, who helped to broker the fund’s creation in December. But Horn said he will support the $500 million requested by Gov. Gretchen Whitmer because it’s important that the state not lose its momentum as companies — particularly those searching for new sites to support the growing electric vehicle industry — search for new sites. ‘We have to hit some home runs right away,’ Horn said. ‘With that $500 million, we’ll get other deals.’ The Strategic Outreach And Attraction Reserve Fund — designed for awards to large-scale projects and site preparation for quicker construction turnaround — was enacted in December by the state legislature. Within weeks, it was supporting major battery manufacturing expansion by General Motors and Ultium Cells as part of a $7 billion investment by GM into its Michigan facilities. Since then, the state has competed for other major projects, including the $2.5 billion Stellantis EV factory the automaker plans with battery partner Samsung SDI. That factory will be in Kokomo, Indiana, instead of Michigan, the company announced in May.” [Bridge Michigan, 6/2/22 (=)]

 

With Summer Heat And Storms Brewing, Some Say Michigan Is Headed For Brownouts. According to Detroit Free Press, “In a mild taste of what’s due this summer, more than 28,000 DTE customers in metro Detroit lost power Wednesday afternoon after a brief but gusty rainstorm. Couple the prospect of far more damaging storms in the future with the annual summer surge in air conditioning and the reviving economy’s power needs. Next, add new uses for power starting with electric vehicles. Finally, factor in a growing list of aging power plants that Michigan utilities have shut down. That mix, here and in other states, has led to a sizzling insiders’ debate this spring that’s vital to every Michigander — and to the residents of 14 other states in the Midwest plus one Canadian province. The debate is whether Michigan and the rest of this sprawling interconnected midsection of the continent are at risk of power shortages and brownouts this summer — or not. … Company officials in Jackson sent this statement: ‘Consumers Energy has prepared for this summer, and we are confident we have a reliable supply of energy to serve our customers. Our holistic, long-term planning ensures there will be enough energy to serve all our customers at all times of the day, during every day of the year. These plans are conservatively estimated. We always build in an additional energy cushion to account for potentially higher customer usage (like electric vehicles) and unknowns including weather events.’ Certainly, the electric utility world is undergoing revolutionary change. That landscape has shifted dramatically after enjoying decades of status quo. For years, Michigan used coal or nuclear fuels to generate electricity and moved vehicles with fossil fuels, through an era blissfully ignorant of climate change. Now, as MISO acknowledged, managing the flows of power from state to state has never been more challenging.” [Detroit Free Press, 6/2/22 (=)]

 

Keeping EV Drivers In Charge: Bill Aims To Get Gas-Guzzlers Out Of Way. According to Winston-Salem Journal, “N.C. Rep. Harry Warren doesn’t drive an electric vehicle. But the Rowan County Republican knows that as automakers add more zero-emission options and prices fall, EVs will become increasingly popular in North Carolina — if drivers are confident they won’t be stranded with a drained battery and no place to plug in. That’s why Warren sponsored legislation that would make it illegal for a gas-powered vehicle to block any EV charger in the state, on public or private property. ‘Preventing the use of an electric vehicle charging station could be considered the same as preventing the use of a gasoline pump station,’ the six-term representative explained. ‘These stations each need to be accessible to consumers in order to facilitate their travel.’ EVs would be required to be plugged in while parked. Scofflaws would face a $100 fine. The legislation has been stalled in the Senate rules and operations committee since cruising through the House in a 115-4 vote in March 2021. The prospects for shifting the bill to the Senate floor during the General Assembly’s current short session are uncertain, but given the lack of urgency around what has yet to become a high-profile problem, the measure could remain parked when legislators wrap up their work June 30.” [Winston-Salem Journal, 6/2/22 (=)]

 

No, The City Of Racine Couldn't Have Hired More Cops With Money Used To Buy Electric Buses. According to The Journal Times, “During a special City Council meeting Tuesday evening in which a $2 million referendum to hire 11 new cops was approved to go before the voters, Finance Director Kathleen Fischer attempted to address what the city administration considers a misunderstanding by the community on how the city was funding different projects. Kathleen Fischer, Racine finance director Fischer As one example, residents have questioned why the city spent so much money on electric buses if they needed to hire 11 additional police officers. As Fischer noted, there are ‘different pots’ to pay for the city’s projects. The electric buses were paid for by a state grant with money that did not come from property taxes. The state grant was funded through the Volkswagen Clean Air Civil Settlement in which the car company agreed to pay billions for cheating on emissions tests. The money was distributed to the states, which then funded transportation projects. More than $8 million of that agreement came to the City of Racine. Those kinds of grants, Fischer explained, cannot be used for the city’s operating expenses, including public safety. … The money comes with a specific purpose, Fischer said, and the state closely reviews how the money is spent to ensure it meets the goal of the grant.” [The Journal Times, 6/2/22 (=)]

 

 

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