'Deregulation Is Not Always Helpful For Manufacturing Jobs.' According to E&E News, “President Trump promised to revitalize the manufacturing sector after decades of decline, a message that has especially resonated in the Midwest, where manufacturing has an outsize share in total state employment. But his rollbacks of key Obama-era environmental rules could test that pledge. The Trump administration has proposed to rework tailpipe pollution rules for cars. It’s also looking to unwind actions the Obama administration took to phase out the use of potent heat-trapping gases known as hydrofluorocarbons, or HFCs. Both moves could spell bad news for the manufacturing sector. That’s because auto companies have already made big investments in technology aimed at improving vehicle fuel efficiency. Similarly, air conditioning and refrigeration companies have invested in replacements to the planet-warming gases. And those investments have created good-paying jobs that could go away, industry sources said. ‘These are jobs that will be lost to other markets,’ Laurie Holmes, senior director of environmental policy at the Motor & Equipment Manufacturers Association, said of the car rule. ‘A lot of these jobs will probably be lost to China because they are moving forward with the fuel efficiency standards and with electric vehicles. ‘We know that one area that the Trump administration cares about is manufacturing jobs,’ Holmes added. ‘But I would say that it’s important to understand that deregulation is not always helpful for manufacturing jobs.’” [E&E News, 11/30/18 (=)]

 

EV Notes, Part 1: Cobalt And Lithium. According to Axios, “Cobalt: BMW, Samsung and the chemical company BASF are launching a pilot project in the Democratic Republic of the Congo designed to ‘improve artisanal mining working conditions, as well as living conditions for surrounding communities,’ they said in a joint announcement. They’re working with the German sustainable development agency Deutsche Gesellschaft für Internationale Zusammenarbeit on the project that will initially focus on one mine. Why it matters: Cobalt is a key material for EV batteries and the DRC is the world’s largest supplier, but the mining is associated with human rights abuses and dangerous conditions. ‘If proven effective, these measures could then be scaled up to other legal artisanal mine sites and enhance systemic challenges in the longer run,’ the companies said Thursday. Lithium: Moody’s Investor’s Service, in a note, said they see an oversupplied market for the material arriving by the early 2020s, despite growing demand for EVs. But, but, but: ‘Nickel and copper availability is likely to constrain the ability to produce electric batteries. This will dampen lithium demand growth until ample nickel and copper is available — which may take a while,’ the report states.” [Axios, 11/30/18 (+)]

 

EV Notes, Part 2: Near-Term And Long-Term Futures. According to Axios, “What’s next, part 1: U.S. News & World Report has a nice slideshow of what’s on display at the LA Auto Show, ranging from cars slated to go into production in the next couple years to concept models. What’s next, part 2: The consultancy Wood Mackenzie is out with some modeling of what would happen to oil demand under an aggressive EV sales growth forecast in a ‘carbon-constrained’ world where zero-carbon energy overall accelerates faster than their base projections. ‘Under the carbon-constrained scenario, WoodMac predicts by 2040, the US, EU and China will see electric vehicles account for 100% of new vehicle sales, collectively displacing 11 million barrels per day (b/d) of oil and helping accelerate peak oil to 2031, five years ahead of its base case,’ they said in a summary. Reality check: Maybe I’m burying the lead a little here, but WoodMac cautions that even in their more aggressive outlook for clean energy, they don’t see long-term global temperature rise staying below 2 degrees celsius absent a more aggressive worldwide political push.” [Axios, 11/30/18 (=)]

 

EPA Easing 45-Year-Old Enforcement Policy For Aftermarket Vehicle Parts. According to Inside EPA, “EPA’s enforcement office is moving closer to updating a 45-year-old policy for how the agency enforces against tampering of aftermarket engine parts, including catalytic converters, clarifying that if manufacturers can demonstrate with test data that their products meet emissions requirements, then EPA will exercise discretion to limit enforcement. Enforcement chief Susan Bodine detailed the planned update in an Oct. 24 letter to Rep. Brett Guthrie (R-KY) and other lawmakers who had requested a change, which has also been sought by manufacturers and states. The new policy ‘will state that EPA generally will not bring an enforcement action where a manufacturer of catalysts for light-duty gasoline engines is able to show that their catalyst controls emissions as well as the vehicle’s original catalyst,’ Bodine writes. That differs most starkly from the current catalyst policy, which dates to 1986 and requires aftermarket devices to reduce emissions by a certain percentage per 25,000 miles driven. The change, which has been in the works at EPA for years, will allow a replacement catalyst to be installed in a vehicle as long as it does not emit more than the original and reflects updates to the technology as well as increased emissions control requirements on vehicles.” [Inside EPA, 11/29/18 (=)]

 

Most Of VW's Dieselgate Cars Are Off The Road, $8.2B Later. According to E&E News, “More than 90 percent of the first batch of Volkswagen AG cars found to be illegally evading emissions tests have been taken off the road in the United States, according to a compliance report filed by an independent consultant this week. The filing evaluates the company’s quarterly progress in buying back or retrofitting the roughly half a million Volkswagen and Audi cars powered by the 2.0-liter engine, including models like the 2010 Jetta and Golf and the 2013 Passat and Beetle. The company had been given until June 2019 to complete the process for at least 85 percent of the cars, under the terms of the 2016 settlement reached with the Justice Department. By the end of last spring, Volkswagen had eclipsed that mark, satisfying a central requirement of the settlement, according to Ankura Consulting Group LLC. As of Nov. 18, Volkswagen had bought back over 360,000 cars, terminated over 11,000 leases and carried out emissions modifications on an additional 60,000, it said. That has so far cost the company over $8.2 billion. In total, about 93 percent of the cars nationwide, and nearly 95 percent of those registered in California, have been ‘removed from commerce’ or modified to comply with emissions rules.” [E&E News, 11/30/18 (=)]

 

In China, Your Car Could Be Talking To The Government. According to E&E News, “When Shan Junhua bought his white Tesla Model X, he knew it was a fast, beautiful car. What he didn’t know is that Tesla constantly sends information about the precise location of his car to the Chinese government. Tesla is not alone. China has called upon all electric vehicle manufacturers in China to make the same kind of reports — potentially adding to the rich kit of surveillance tools available to the Chinese government as President Xi Jinping steps up the use of technology to track Chinese citizens. ‘I didn’t know this,’ said Shan. ‘Tesla could have it, but why do they transmit it to the government? Because this is about privacy.’ More than 200 manufacturers, including Tesla, Volkswagen AG, BMW AG, Daimler AG, Ford Motor Co., General Motors Co., Nissan Motor Co. Ltd., Mitsubishi Motors Corp. and U.S.-listed electric vehicle startup NIO, transmit position information and dozens of other data points to government-backed monitoring centers, the Associated Press has found. Generally, it happens without car owners’ knowledge. The automakers say they are merely complying with local laws, which apply only to alternative energy vehicles. Chinese officials say the data are used for analytics to improve public safety, facilitate industrial development and infrastructure planning, and prevent fraud in subsidy programs.” [E&E News, 11/30/18 (=)]

 

 

 

 

Please do not respond to this email.

If you have questions or comments please contact mitch@beehivedc.com