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    A California measure would tax the rich to fund electric vehicles. Why is the governor against it?

    A California measure would tax the rich to fund electric vehicles. Why is the governor against it?Proposition 30 would raise up to $5bn annually to help buy zero-emission cars, trucks and buses; Newsom calls it a ‘Trojan horse’ Two years ago, California’s governor, Gavin Newsom, issued an executive order banning the sale of new gas-powered vehicles by 2035.This year, he’s opposing a ballot measure to fund the transition to electric vehicles – siding with Republicans and against fellow Democrats, environmental groups, firefighters and labor unions.The governor’s counterintuitive position could be a political gambit. It may also doom the measure; support for it appears to have dropped starkly after Newsom cut an ad against it.California wants everyone to drive EVs. How will low-income people afford them?Read moreThe measure, Proposition 30, would hike taxes by 1.75% on those earning $2m or more annually, raising between $3bn and $5bn annually to subsidize households, businesses and schools; buy zero-emission cars, trucks and buses; fund infrastructure to charge electric vehicles; and bolster wildfire prevention efforts.Proponents of the measure, including the coalition of environmental and labor groups that developed it, say the tax would provide urgently needed funds to hasten the transition to zero-emission vehicles, and reduce the disproportionate burden of pollution on low-income, minority communities across the state. According to the American Lung Association, which has endorsed Prop 30, the US could save 110,000 lives and $1.2tn in public health costs by 2050 if it swaps gas-powered vehicles for zero-emissions cars.Newsom, and the proposition’s opponents, claim it is a corporate carve-out for Lyft, the ride-hailing company that has backed the measure and helped fund its campaign.“Prop 30 is being advertised as a climate initiative,” Newsom says in an advertisement against Prop 30. “But in reality, it was devised by a single corporation to funnel state income taxes to benefit their company. Put simply, Prop 30 is a Trojan horse that puts corporate welfare above the fiscal welfare of our entire state.”The message left some of the organizers and activists who helped write the measure stunned.“It’s just false,” said Denny Zane, the founder and policy director at Move LA, a public transit advocacy group that helped develop the proposition. Lyft joined the effort to promote the proposition after environmental groups and policymakers came up with the idea, he said, but the company did not “devise” the proposition.Overhauling the transportation infrastructureLyft has given more than $15m to support the measure and funded signature-gathering to get it on the November ballot. Though it wouldn’t benefit directly from the proposition, it and other rideshare companies face a 2030 regulatory deadline to transition the majority of their fleets to EVs. Prop 30 could help Lyft drivers, who are responsible for providing their own cars, purchase zero-emission vehicles.“It’s absurd to say we’re granting some sort of carve-out specifically for Lyft,” said Bill Magavern, the policy director for the Coalition for Clean Air, a statewide organization focused on air pollution issues.Proponents of the funding measure point out that the $10bn that Newsom’s budget has already allocated to EV subsidies and infrastructure would help Lyft drivers in the same way. And funds from Prop 30 would ultimately be funneled to the California Air Resources Board, the California Energy Commission and Cal Fire, the state’s firefighting agency, which would allocate the money to various programs.Newsom argues that California’s tax revenues are “famously volatile”, and the measure would make the state’s finances even more unstable. A wealth tax, the governor says, wouldn’t be the best way to fund the programs Prop 30 seeks to support. Moreover, he has noted that the state has already budgeted $10bn for electric vehicles specifically, and $54bn toward climate adaptation broadly.But environmental and transportation experts say even such massive investments won’t be enough to transition the state’s transportation infrastructure.Magavern and other environmental advocates instead see the governor’s stance on the proposition as a capitulation to wealthy donors. “You’ve got billionaires and their allies who don’t want to pay their fair share of taxes,” Magavern said.Among the biggest donors to the “No on 30” campaign are William Fisher, hedge fund manager and Gap Inc director, and billionaire venture capitalist Michael Moritz, according to public records. Investment firm founder Mark Heising, who contributed the maximum allowable amount to Newsom’s 2022 re-election campaign, also contributed $1m to oppose Prop 30.Joining these donors, Newsom, and anti-tax Republican politicians is the California Teachers Association, which opposed the measure because it circumvents a 1998 mandate that a minimum of 40% of the state’s budget goes to public education.Opinion columnists and political experts have conjectured that Newsom’s siding with teachers and his traditional enemies – the Republicans – could help bolster the governor’s political future. Though Newsom has repeatedly denied he has any intention of running for president, his recent national-facing campaign ads have stirred up speculation to the contrary. Newsom’s position on Prop 30 could easily fit into a presidential pitch that he walks the line between California progressivism and nationally appealing moderation, those columnists and experts have argued, and that he doesn’t blindly side with his own party and sometimes works with Republicans and business interests. The governor’s campaign did not respond to detailed questions regarding the political implications of this opposition to the proposition. “Prop 30 is fiscally irresponsible and puts the profits of a single corporation ahead of the welfare of the entire state,” the governor said in a statement.Meeting the state’s zero-emission goalsCalifornia will have to make major investments if it wants to live up to its clean energy goals.As more electric vehicles hit the road, the state has set targets to build an additional 170,000 public charging stations over the next three years. And California would need to invest in fortifying its already shaky electrical grid system.“The governor did support record levels of investment in this year’s budget, which is great news, it’s what’s needed,” said Don Anair, an expert in zero-emission transportation technologies and infrastructure at the Union of Concerned Scientists, which supports Prop 30.But it’s unclear how much will be invested in electric and zero-emission vehicles in subsequent yearly budgets, including after Newsom leaves office, Anair said. “We need a long-term, large-scale source of revenue to meet the state’s goals.”The need for investment now is urgent, Anair added. Even if the state phases out gas-powered vehicles by 2035, the cars, buses and freight vehicles already on the road now, or bought over the next few years will remain on the road for decades unless California incentivizes and subsidizes the purchase of zero-emission options.One limitation of the proposition is that it doesn’t specify subsidies for e-bikes and other programs to steer commuters away from cars altogether. Even electric cars are far less efficient than walking, biking and public transportation – they are energy and resource-intensive to build, and encourage urban sprawl. The mining of cobalt, lithium and other rare elements required to build EVs has raised environmental and human rights concerns.In coming years, even more investments in public transit and urban infrastructure, as well as improvements in how EVs are made, will be required in order to truly address the climate crisis.The proposition “is not going to solve all our transportation problems”, Anair said. But for now, transportation remains the largest source of greenhouse emissions in California. “So zero-emission transportation is critically important,” Anair said. “Climate change is already having impacts and the sooner we can start reducing our emissions, the better.”TopicsCaliforniaGavin NewsomElectric, hybrid and low-emission carsUS politicsnewsReuse this content More

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    The American EV boom is about to begin. Does the US have the power to charge it?

    The American EV boom is about to begin. Does the US have the power to charge it? States have plans to ban gas-powered cars and the White House wants chargers along highways, but implementation is a challengeSpeaking in front of a line of the latest electric vehicles (EVs) at this month’s North American International Auto Show, President Joe Biden declared: “The great American road trip is going to be fully electrified.”Most vehicles on the road are still gas guzzlers, but Washington is betting big on change, hoping that major federal investment will help reach a target set by the White House for 50% of new cars to be electric by 2030. But there are roadblocks – specifically when it comes to charging them all. “Range anxiety,” or how far one can travel before needing to charge, is still cited as a major deterrent for potential EV buyers.The auto industry recently passed the 5% mark of EV market share – a watershed moment, analysts say, before rapid growth. New policies at the state and local level could very well spur that growth: the Inflation Reduction Act, which passed this summer, offers tax credits of $4,000 to purchase a used EV and up to $7,500 for certain new ones. In August, California, the nation’s largest state and economy, announced rules that would ban all new gas-powered cars by 2035. New York plans to follow.So now, the race is on to provide chargers to power all those new EVs.The administration’s target of 500,000 public charging units by 2030 is a far cry from the current count of nearly 50,000, according to the Department of Energy’s estimate. And those new chargers will have to be fast – what’s known as Level 2 or 3 charging – and functional in order to create a truly reliable system. Today, many are not.Last week, the White House approved plans for all 50 states, along with Washington DC, and Puerto Rico, to set up chargers along highways, unlocking $1.5bn in federal funding to that end. The money comes from the landmark infrastructure bill passed last year, which invests $7.5bn for EV charging in total.Electric vehicle charging stations get green light across USRead moreBut how much of that money is spent is largely going to be determined at the local level. “It’s a difference between policy and practice,” said Drew Lipsher, the chief development officer at Volta, an EV charging provider. “Now that the federal government has these policies, the question becomes, OK, how does this actually get implemented?” The practice, he said, is up to states and municipalities.As EV demand spikes, a growing number of cities are adopting policies for EV charging construction. In July, the city of Columbus passed an “EV readiness” ordinance, which will require new parking structures to host charging stations proportionate to the number of total parking spots, with at least one that is ADA-accessible. Honolulu and Atlanta have passed similar measures.One major challenge is creating a distribution model that can meet a diversity of needs.At the moment, most EV owners charge their cars at home with a built-in unit, which governments can help subsidize. But for apartment dwellers or those living in multi-family homes, that’s less feasible. “When we’re thinking about the largest pieces of the population, that’s where we need to really be focusing our attention. This is a major equity issue,” said Alexia Melendez Martineau, the policy manager at Plug-In America, an EV consumer advocacy group.Bringing power to people is one such solution. In Hoboken, New Jersey, Volta is working with the city to create a streetside charging network. “The network will be within a five-minute walk of every resident,” said Lipsher. “Hopefully this is a way for us to really import it to cities who believe public EV charging infrastructure on the street is important.” Similarly, in parts of Los Angeles – as in Berlin and London – drivers can get a charge from a street lamp.And there may be new technologies that could help, exciting experts and EV enthusiasts alike. That could include the roads themselves charging EVs through a magnetizable concrete technology being piloted in Indiana and Detroit. And bidirectional charging, where, similar to solar panels, drivers can put their electricity back into the grid – or perhaps even to another EV, through what’s known as electric vehicle supply equipment (EVSE). Nissan approved the technology for their Leaf model this month.Prochazka said he imagined a future where cities rely on excess EV charge when energy demand spikes, rather than polluting peaker plants that are currently turned on to boost supply. “We haven’t even scratched the surface on the opportunities that are gonna exist once we get bidirectional happening,” said Prochazka.Experts hope these advances will help bridge the gap in historically disconnected areas, such as rural communities and communities of color. But first, planners have to listen: although extensive community engagement trials have been praised in states such as Arizona, the local National Association for the Advancement of Colored People (NAACP) chapter in Indiana accused the state’s draft plan of excluding Black communities.“The more the community has input on where these chargers go, how they’re used and how they’re designed,” said Melendez Martineau, “the better they’re going to serve the community.”Still, the US seems significantly more poised to electrify now than it did six months ago, says Dale Hall, a senior researcher who focuses on EVs at the International Council on Clean Transportation (ICCT).He says that the private sector, which is behind much of the charging infrastructure, is moving ahead with clear signals of support from the public sector. Stronger local policies or cutting-edge technology will only help dictate the speed of that transition, Hall added.He thinks the Biden administration’s goal for chargers is achievable. “The business case is just going to keep getting better.”TopicsElectric, hybrid and low-emission carsBiden administrationUS politicsClimate crisisAutomotive industrynewsReuse this content More

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    Manchin ‘very reluctant’ on electric cars in ominous sign for Biden’s climate fight

    Manchin ‘very reluctant’ on electric cars in ominous sign for Biden’s climate fight Centrist Democrat, who holds key swing vote in US Senate, has poured scorn on the idea of phasing out gasoline and diesel carsFaced with rising gasoline prices, many Americans are now looking to switch to an electric car. But the shift away from fossil fuel vehicles has been criticized by Senator Joe Manchin, who has said he is “very reluctant” to see the proliferation of battery-powered cars.There has been a surge in interest in buying electric vehicles (EVs) in the wake of the war in Ukraine, analysts say, with drivers in the US unnerved by gasoline prices that have surpassed $4.30 a gallon as a result of the conflict and the supply chain issues from the pandemic.‘A really bad deal’: Michigan awards GM $1bn in incentives for new electric carsRead moreJoe Biden has repeatedly championed the growth of the nascent EV market as a way to tackle the climate crisis, with America’s heavy dependency on polluting cars a major source of planet-heating emissions.But Manchin, the centrist Democrat who holds a key swing vote in the US Senate, has poured scorn on the idea of phasing out gasoline and diesel cars.“I’m very reluctant to go down the path of electric vehicles,” Manchin said at the energy conference CERAWeek, held in Houston. “I’m old enough to remember standing in line in 1974 trying to buy gas – I remember those days. I don’t want to have to be standing in line waiting for a battery for my vehicle, because we’re now dependent on a foreign supply chain, mostly China.”Manchin, who has taken more money in political donations from fossil fuel interests than any other senator, also said he has “a hard time understanding” why the federal government would invest in a network of electric car charging stations, as the Biden administration aims to do.“I’ve read history, and I remember Henry Ford inventing the Model-T, but I sure as hell don’t remember the US government building filling stations,” Manchin said to applause. “The market did that.”The West Virginia senator’s criticism is ominous for the White House’s hopes of passing major climate legislation this year. The climate elements of the Build Back Better Act, which Manchin’s opposition has so far stalled, included half a trillion dollars in clean energy tax credits as well as major rebates for electric car purchases to drive up their adoption.Manchin’s comments also come amid renewed consumer interest in EVs reported by car dealers as some Americans look to bypass the volatility of the global oil market altogether. The past month has seen a strong increase in the number of people searching online for hybrid and battery electric vehicles, according to Edmunds, a car shopping and industry analyst website.This is a continuation of the broader growth of EVs in recent years “but the major surge in interest of late is certainly more of a reaction to record gas prices sparked by the war in Ukraine”, according to Jessica Caldwell, executive director of insights at Edmunds.“Anecdotally we are hearing a lot about a greater interest in EVs because of what is going on in Ukraine, but the real test is whether that will last,” said Ed Kim, president of AutoPacific, an auto industry research firm.Kim said that gas-powered cars built in the US are already full of foreign-made parts. “Joe Manchin represents West Virginia which is dependent upon coal so I believe he has a vested interest in downplaying clean energy,” Kim said.“Look at what’s happening right now, we are seeing fuel prices we haven’t seen in years because of geopolitical issues. Any measures we take to reduce our reliance on petroleum is good for our economy, our environment and to ensure the country doesn’t come screeching to a halt.”Previous jumps in the price of gasoline, such as in 2008, saw a corresponding increase in sales of battery-powered and hybrid cars and analysts expect a similar spike as a result of the current crisis. Around half a million electric cars were sold in the US last year, up more than 80% on 2020, with consumers attracted to a slew of new models such Ford’s Mustang Mach-E and the Telsa Model Y.While traditional car makers such as Ford and GM are now making significant investments in the EV market, demand is now regularly outstripping pandemic-hit supply, meaning the ballooning interest in going electric may end in frustration. “Unfortunately, making an EV purchase is not particularly easy to do right now amid inventory shortages,” said Caldwell.Owning an electric car is far cheaper than a gas-powered one due to a lower cost of fuel and fewer mechanical problems but the up-front cost of most EVs is typically more than $40,000.This means they are often out of reach for many low-income Americans who are already forced, due to the car-centric design of US cities and suburbia, to spend a large amount of their money on running a vehicle to go to work and complete other routine trips.The Biden administration is aiming for 50% of new car sales to be electric by 2030 – last year the total share was around 3% – and industry experts say that major investments will need to be made to hit this target.“Dependence on oil is funding some of the most brutal regimes in the world today. There’s nothing to suggest any component of an EV would resemble the current national security, environmental and humanitarian cost of oil.” said Nick Nigro, founder of Atlas Public Policy.“The transition to EVs is inevitable at this point – the timeline is up to consumers and policymakers. The events in Ukraine are a reminder how volatile and destructive a dependence on oil is and that should only accelerate this timeline.”TopicsClimate crisisElectric, hybrid and low-emission carsJoe ManchinJoe BidenUS politicsDemocratsnewsReuse this content More

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    Biden administration plans to spend $5bn to build EV charging network across US

    Biden administration plans to spend $5bn to build EV charging network across USElectric vehicle stations to be placed every 50 miles along interstate highways to spur adoption of zero-emission cars The Biden administration has unveiled a plan to award nearly $5bn over five years to build thousands of electric vehicle charging stations.The nationwide network of electric vehicle charging stations would place new or upgraded ones every 50 miles (80km) along interstate highways as part of the administration’s plan to spur widespread adoption of zero-emission cars.Under Department of Transportation requirements, states must submit plans to the federal government and can begin construction this year if they focus first on highway routes, rather than neighborhoods and shopping centers, that can allow people to take their electric vehicles long distances.Start me up: ‘car guy’ Joe Biden accelerates push to turn America electricRead moreEach station would need to have at least four fast-charger ports, which enable drivers to fully recharge their vehicles in about an hour.Many technical details are to be worked out, and the administration acknowledges it will take work to persuade drivers accustomed to gas-powered cars, particularly in rural areas. The money is far less than the $15bn that Biden had envisioned to fulfill a campaign promise of 500,000 charging stations by 2030, and it may take substantial private investment to make the plan work.“A century ago, America ushered in the modern automotive era; now America must lead the electric vehicle revolution,” the transportation secretary, Pete Buttigieg, said.Buttigieg made the announcement in front of the transportation department along with White House officials, flanked by a pair of black Ford Mustang Mach-E SUVs in the federal government’s growing electric fleet that he and the energy secretary, Jennifer Granholm, drive. The vehicle’s retail price starts around $44,000 and climbs to $60,000-plus including options, and they are currently made in Mexico.Electric cars on show in Washington as Biden pushes for green revolution Read moreButtigieg made a special appeal to rural drivers, suggesting that big wide open spaces of the US no longer need to be a “valley of death” for EV drivers.“Many might think of them as a luxury item,” he said. “The reality is nobody benefits more from EVs in principle than those who drive the longest distances, often our rural Americans.”The law provides an additional $2.5bn for local grants, planned for later this year, to fill remaining gaps in the charging network in rural areas and in disadvantaged communities, which currently are less likely to own the higher-priced electric vehicles. States failing to meet all the federal requirements risk delays in getting approval from the Federal Highway Administration or not getting money at all.Biden also has set a goal of 50% electric vehicle sales by 2030, part of a broader effort to become zero emissions economy-wide by 2050.Electric vehicles amounted to less than 3% of US new auto sales last year, but forecasters expect big increases in the next decade. Consumers bought about 400,000 fully electric vehicles.Amid the petrol crisis, is it time to switch to an electric car?Read moreBiden hopes to do even more to promote electric vehicles, including a provision in his stalled social and environmental bill for a $7,500 tax credit for people who buy electric vehicles.“It’s going to help ensure that America leads the world on electric vehicles,” Biden said this week about American companies expanding EV infrastructure.“China has been leading the race up to now, but this is about to change,” he said.“Because America is building convenient, reliable, equitable national public charging networks. So wherever you live, charging an electric vehicle will be quick and easy.”Granholm described the initial $5bn investment as creating “the spine” of the national network. Jessika Trancik, a professor at the Massachusetts Institute of Technology who studies EV charging, called the administration’s approach a good first step. She said a successful strategy to spur wider EV use would require charging stations in a host of different locations, including faster charging along highways and slower charging near homes and workplaces.TopicsElectric, hybrid and low-emission carsMotoringPete ButtigiegUS politicsnewsReuse this content More

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    Electric cars on show in Washington as Biden pushes for green revolution

    Electric cars on show in Washington as Biden pushes for green revolution Auto show dedicates entire pavilion to electric vehicles but experts say more charging stations are needed for Biden’s goal to be realizedThe Washington DC Auto Show has been showcasing alternative fuel vehicles for 15 years, but this is the first year an entire pavilion was dedicated to electric vehicles, or EVs. In part, you can thank the current occupant of the nearby White House for that.If Joe Biden has his way with his ambitious $2.2tn Build Back Better plan there will be 50% zero-emission vehicles on the road by 2030. The Biden administration also has plans to convert an estimated 600,000 of its fleet to alternative fuels as part of a renewed commitment to combat climate change.There are major issues ahead – the plan is being blocked by Republicans and there are serious equity issues to be addressed as the US transitions away from fossil fuels. But big changes are already happening, and the car show, which ends this weekend, is on it.EVs have now been adopted on a global scale, said John O’Donnell, chief executive of the Washington DC Auto Show, and the show, which focuses on public policy and gives congressional members and auto industry leaders a space to review the latest technology, needed to reflect that.“We’ve had other technologies and declared them a pavilion, but I thought it was very important right now for us to make it larger and more high profile,” said O’Donnell. Not just because of the current debate over EVs in Washington but also to “dispel the myth the US car dealers do not want to sell electric vehicles”.An aggressive transition like the one Biden envisions will require an equally aggressive overhaul of infrastructure. In the bipartisan Infrastructure Investment and Jobs Act, $7.5bn is dedicated to EV-charging infrastructure and building charging stations along highway corridors. But the industry is concerned about how that money is spent.Matthew Nelson, director of government affairs at Electrify America, said the infrastructure that serves the public must be “future-proofed”. Ultra-fast charging at 350 kW of power, or the equivalent to 20 miles of range per minute, has been his paramount message to government stakeholders. “We think it’s really important that the chargers paid for today are able to charge faster than the vehicles on the market today,” Nelson said. “The vehicles are getting faster and faster every model year. If we design for today’s vehicles it will be outdated in five years.”Electrify America, a sponsor of the EV Pavilion at the car show, has the largest network of DC (direct current) charging stations in the US. Currently, the Electrify America network consists of 800 charging stations, mostly along highway corridors, and the company is planning an increase to 1,800 charging stations with 10,000 chargers by 2026.However, 500,000 charging stations are needed to meet Biden’s goals and Nelson said they should be reliable and non-proprietary. There are 31 different brands of auto manufacturers in the US that use the same non-proprietary standard for charging and Nelson said leveraging the consensus around that single standard is in the public’s interest.Right now, consumers’ biggest concern is their bottom line, and EVs are more cost-efficient than gas-powered cars. An e-gallon – the cost to drive a comparable vehicle the same distance you could go on a gallon of gasoline – currently averages $1.16, compared with gasoline’s $2.85. Because Electrify America offers public charging their prices are a little higher than at-home chargers, but are standard in every state.Recently, Congress amended the Public Utility Regulatory Act (Purpa) that requires each state to consider EV-specific utility rates, giving them the liberty to change rates not suited for EV adoption. These demand charges lead to “extremely high-priced” electricity being charged to the stations, making it difficult to maintain low prices. States such as Colorado, Massachusetts, California, Rhode Island and Connecticut have revised these rates, but Nelson said every state should be on board.And there’s an equity element to charging. Homeowners who charge their cars in their garage do not pay demand rates, but those who charge at commercial charging stations or who live in multifamily dwellings or apartments will pay the demand rate.Incentives to support EV charging infrastructure in multi-family dwellings and more community-based charging infrastructure are important tools to making EV adoption more equitable, said Kellen Schefter, director of transportation at Edison Electric Institute, which leads the National Electric Highway Coalition. He believes the biggest barrier to EV adoption is the lack of charging infrastructure that’s affordable, equitable and reliable.Making sure investments go into those communities that are not traditionally getting those allocations is a large part of the National Electric Highway Coalition’s agenda. “There is such a great need on the infrastructure front,” said Schefter.The right policies will be critical if Biden is to hit his EV goals. O’Donnell said a wider range of tax incentives are needed to persuade the American public to swap their fuel-dependent cars for EVs.“In Build Back Better, they are proposing $12,500 per vehicle purchased, but only if it is built by a United Auto Worker manufacturer. It doesn’t seem like mass-market adoption will be achieved using only union-made vehicles. We think all electric vehicles should qualify for the full $12,500 incentive,” O’Donnell said.But while tax incentives make a difference, chargers are more meaningful said Dilip Sundaram, chief international business officer at Acrimoto, an electric autocycle company. China – the biggest EV market – has about 800,000 chargers and Sundaram said 500,000 chargers in the United States, a car-dependent country, is not enough.“In China, the tax incentive is about $2,500,” Sundaram said. “Accessibility to chargers is what is driving mass adoption. If you remove range anxiety to make sure chargers are available everywhere you will suddenly see the EV adoption increase.”“Biden wants to put the United States in a leadership role instead of a passive role on the issue of climate change, but policies need to reflect the new challenge,” Sundaram said. “So that any new structure whether it be a mall or apartment complex, has chargers.”Despite a lower than usual attendance at this year’s show because of Covid, the line to ride in the new Arcimoto was long. As attendees watched the small autocycle whip around the EV pavilion, others buzzed about the displays for the latest EV models presented by Bentley, McLaren, Polestar, Hyundai and Nissan.The star of the show was the new all-electric Ford F-150, the latest iteration of the US’s best-selling vehicle. The impressive aluminum truck can pull 10,000lb, gets 300 miles on a standard charge, and can generate power for an entire house for three days. And it’s fast – going from 0-60mph in less than five seconds.As the demand for these new high-performing EVs grows, gasoline-powered cars look more and more like relics. But for now, all eyes are on Congress as to how soon the US can transition to mass adoption, and an equitable, EV market.TopicsAutomotive industryElectric, hybrid and low-emission carsUS politicsJoe BidenMotoringfeaturesReuse this content More

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    Youngstown’s hopes for reinvention fade as electric truck firm sputters

    It’s less than a year since Lordstown Motors was touted as the future for the Youngstown, Ohio, the once thriving steel and manufacturing city that has struggled to reinvent itself in the post-industrial age.The company and its Endurance all-electric pickup truck were seen as saviors for Youngstown after General Motors pulled the plug on its nearby Lordstown plant. “It’s booming now. It’s absolutely booming,” said Donald Trump in September, during an unveiling of the Endurance truck at the White House.Now those hopes are fading as Lordstown Motors faces financial difficulties that have locals worried, once again, about the region’s financial future.“It’s a very sad moment in the history of Youngstown. It seems every five years that hope is just over the horizon and somebody just closes it up and it disappears,” said Bob Hagan, who represented the Youngstown area for nearly three decades in the Ohio state legislature as an assembly representative and state senator.General Motors announced plans to shut down five factories in North America in November 2018, including its plant in Lordstown, which employed 1,600 workers and had operated for 52 years. The number of employees had steeply declined since the early 1990s, when more than 10,000 workers were employed at the plant.In March 2019, the last Chevy Cruze rolled off the assembly line as the plant ceased operations, leaving hundreds of workers forced to retire, transfer to a different GM plant elsewhere in the US, or find other work.The closure was devastating for residents in Ohio’s Mahoning Valley, as the area has steadily declined from outsourcing and plant closures over the past few decades in the automotive, manufacturing, and steel industries.General Motors sold the plant to Lordstown Motors for $20m in 2019, and loaned the company $40m.But hope for a bright electric future soon faded. Since its purchase of the plant, Lordstown Motors has experienced financial and developmental difficulties. The company recently gave a tour of the facility to reporters, analysts and other visitors amid a turmoil of conflicting statements on its outlook, the resignations of its CEO and CFO, and a statement to securities regulators that the company did not have enough funds to start production.Hagan said these travails are just the latest setback for an area that has taken many hard knocks. Over the past several decades, steel mills and manufacturing plants have shuttered amid broken promises. He fears Lordstown Motors may prove another corporation that came into the area with high hopes and lofty promises – only to let the community down.“They’re rearranging the chairs on the Titanic,” he said.The Securities and Exchange Commission (SEC) has opened an inquiry into Lordstown Motors over statements it has made about orders in the wake of a report from short-seller Hindenburg Research that accused Lordstown Motors of misrepresenting orders to raise capital. Five Lordstown Motors executives sold more than $8m in stocks in February 2021, ahead of the company’s financial reporting results and before the company’s financial problems were publicly disclosed.“If you talk to the vast majority of us, we are not surprised by all the issues with Lordstown Motors,” said Timothy O’Hara, former president of United Auto Workers local 1112, the union which represented GM Lordstown employees. He worked at the plant for 41 years before retiring.“Lordstown Motors has been a shaky situation from the beginning. For the economy of the Mahoning Valley I hope it succeeds – but I’m not holding my breath.”The Lordstown Motors plant currently has about 600 employees, and production is projected to begin at the end of September. But it faces some huge hurdles. In a statement filed with the SEC, the company said its success hinges on “its ability to complete the development of its electric vehicles, obtain regulatory approval, begin commercial scale production and launch the sale of such vehicles” – all as it seeks additional financing before it’s projected to run out of funds by May next year.Elected officials have bet heavily on the success of Lordstown Motors in the area. In December, the Ohio Tax Credit Authority approved a state tax credit for the company estimated to save $20m in payroll taxes, based on its promise to create 1,570 full-time jobs. Ohio’s private economic development agency, JobsOhio, has pledged $4.5m in grants to Lordstown Motors. In April last year, the company received more than $1m through a federal pandemic loan to retain 42 jobs.But Hagan believes the money may not be enough and, once again, it will be the people of Youngstown who pay the price.“Tax dollars are being used to lure people into our community. We have to have elected officials be more vigilant on how organizations are taking money and make sure they deliver,” he said. More

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    Start me up: ‘car guy’ Joe Biden accelerates push to turn America electric

    On a hot, sunny day in Michigan, Joe Biden zoomed around in a new electric version of the Ford F150, one of the automaker’s most famous vehicles.“This sucker’s quick,” Biden said as he drove up to reporters at Ford’s Rouge Electric Vehicle Center last month.Biden, a self-proclaimed American “car guy”, was there to tout electric vehicles, a key component of his administration’s trillion-dollar-plus infrastructure proposal.“The future of the auto industry is electric. There’s no turning back,” Biden said. “The question is whether we will lead or we will fall behind in the race to the future.”The proposed $174bn investment in electric vehicles represents the biggest ever White House push from fossil-fuel based vehicles and toward battery-powered cars. The Biden administration has made environmentalism and sustainability a key pillar to its job creation efforts, and the president wants to dramatically increase the number of electric vehicles on the road and the infrastructure for manufacturing them.This, Biden says, would create a wave of new green energy jobs and also help to fight climate change.At the beginning of the year, electric vehicles made up less than 5% of automobile sales in the US. But Biden’s proposal aims to dramatically push the American auto industry toward electric vehicles, mainly through incentives and tax credits. It would use funds to transition the fleet of federal agency cars such as those used by the US Postal Service, and the plan includes $45bn towards increasing the number of electric school buses and transit buses.It would also set up a national network of charging stations across the country, the current lack of which is seen as one of the bigger advantages combustion engine cars still have over electric vehicles. There are are only 41,400 electric vehicle charging stations (including fast-charging stations) in the United States, according to the Department of Energy. There are omore than 130,000 gasoline stations.It’s not clear, however, how those charging stations would be distributed – and what portion of them would go to poorer parts of America.But the plan aims to change the supply chain so the US depends less on other countries for batteries and other car parts. The administration wants to become less dependent on foreign countries for manufacturing electric vehicles and the parts that go into them.“It’s a systemic transition,” said John Paul MacDuffie, a University of Pennsylvania professor of management and vehicle expert. “Often if you just tackle one narrow piece of it you don’t make progress, because you bump into constraints in the system. So I think the ambition to be systemic is really good, and probably essential, to make progress.”As Biden drove around the Ford campus, hundreds of miles away Republicans in Congress were planning to gut the electric vehicles proposals in his American Jobs Plan.Negotiations over the entire infrastructure bill are continuing, but the last counter-offer made by Republicans slashed spending on Biden’s plan by about $170bn. It’s not clear what exactly the remaining $4bn would be spent on if the Republican proposal went into effect. A factsheet distributed by the office of Senator Shelley Moore Capito of West Virginia, the lead negotiator, did not specify.In their criticisms, Republicans have cited the price tag on the electric vehicles provision. They say the government should not pour so much money into electric vehicles, and that doing so would end up killing jobs in other alternative vehicle areas, like ethanol.“For a person like me, from Iowa, if you have all electric cars, there’s going to be 43,000 people making ethanol and biodiesel that won’t be employed,” Senator Chuck Grassley of Iowa told E&E News.Senator Roger Marshall of Kansas, another Republican who opposes government spending on electric vehicles, told the Guardian electric vehicles are prohibitively expensive.“My concern about an all-electric car policy is that it’s truly a social injustice. These electric cars are very expensive. Only the wealthy can afford them, and the wealthy benefit from the tax credits,” Marshall said.“I think we’re getting policy way ahead of technology. Certainly way ahead from a price point … But right now the big picture scares me. I think we’d have to increase our electric grid by 60%. That would take, theoretically 20, 40, 60 years to double or to increase the electric grid by 60%.”The price of electric vehicles varies widely. The Mini Cooper SE starts at about $30,000. The cheapest Tesla, the Model S, starts at about $40,000. More expensive models can run as high as $150,000. The price of electric vehicles is likely to drop if and when they become more popular and the technology improves. And the cost of batteries is dropping – rapidly. It’s going so fast that there’s evidence to expect most cars to be battery-powered by 2035.Marshall also said the environmental cost of battery-powered cars is high.“I think we have to look at the environmental footprint in looking what goes into a battery. The making of the battery,” Marshall said. “And eventually the disposal of these batteries.”Even electric vehicle advocates concede that the environmental impact of the raw materials used for electric batteries are not perfect. And there are also human rights concerns about mining those materials.But in Michigan, state senator Mallory McMorrow, a Democrat, said the technology around batteries and electric vehicles was getting better and more environmentally friendly.“I think that there’s a fair criticism in terms of the environmental impact of batteries from the mining perspective. But I think, like everything else, that’s improving,” McMorrow said.Even accounting for battery mining, petrol and diesel cars still have a far more negative impact on the environment than electric vehicles.Right now the American Jobs Plan is still a framework, and the gulf between Republicans and Democrats is vast. It’s unlikely that if a compromise is reached on the entire proposal, Biden will get all the funding he’s looking for. But it’s also unlikely that Republicans will have shrunk that funding to the minuscule amount they have offered so far.And around the country, lawmakers are making moves to nudge the country further toward electric vehicles. Governor Kate Brown of Oregon recently signed a bill to expand electric vehicle infrastructure in her state. In Illinois, Governor JB Pritzker has set a goal of 750,000 electric vehicles by 2030.McMorrow in Michigan has helped craft a proposal to encourage electric vehicles in the state.Congressman Andy Levin of Michigan and Alexandria Ocasio-Cortez of New York have introduced legislation that aims to set up a nationwide network of charging stations over the next five years. Senator Chuck Schumer of New York, the Senate majority leader, also introduced legislation in 2019 that would help set up a network of charging stations also. Biden added that proposal to his American Jobs Plan in March.Even with a huge investment in electric vehicles, transitioning to where combustion cars are the minority on the road and electric vehicles are the majority will take time.“If you don’t start at some point making some move for the US to have a piece of the supply chain you’ll never be ready for the EV transition – and it will take a long time,” MacDuffie said. More