The Biden administration proposed revolutionary new emissions rules for vehicles to accelerate the transition to “clean energy” and boost sales of electric vehicles, in the latest example of its authoritarian approach to transforming the economy of USA to net zero carbon. At the same time, the European Union is lifting its ban on petroleum vehicles to allow synthetic fuels (e-fuels) in internal combustion engines (ICEs) after 2035, as several countries complained that the ban was too far in banning ICE vehicles. . Germany wisely noted that to take climate-neutral mobility seriously, all technological options must be kept open and used. Poland’s prime minister intervened that Polish families cannot afford such expensive vehicles, and an ICE ban would cause irreparable harm to Polish companies that produce auto components for well-known global brands. Americans may soon be envious of Polish concern for the lives of their citizens. With this regulation, the freedom of personal mobility that an affordable vehicle affords ordinary Americans may be coming to an end.
Other reasons to hold back on banning ICE vehicles include the risk that there will not be enough electric vehicle charging stations or battery manufacturing plants to meet demand in such a short period of time, the slow start-up of mines critical metal needed to produce electric vehicle batteries. , the huge subsidies paid by taxpayers to get EVs off the ground due to their higher price compared to ICE vehicles, the rising cost of electricity as subsidized wind and solar are added, and grid-bound, China’s dominance of the electric vehicle and battery market and its critical mineral processing, and the energy security issues that arise from putting the entire U.S. energy system on a single, mostly renewable fuel intermittent renewables. China’s control of supply chains for so-called “clean” technologies is to a far greater degree than OPEC’s control over oil supplies.
EPA rules
The Biden administration proposed two plans to ensure that two-thirds of new passenger cars and pickup trucks, one-quarter of new heavy-duty trucks, including 18-wheel big rigs, and half of all new buses sold in the U.S. United are fully electric. by 2032. Additionally, 46 percent of new medium-duty truck sales, such as delivery vans, will have to be all-electric or use some other form of zero-emission technology by the same year. The rules would go into effect starting in the 2027 model year. The proposed rules are far more ambitious than Mr. Biden of 50 percent all-electric new vehicle sales by 2030, a goal that many considered absurd.
Last year, all-electric vehicles accounted for 5.8 percent of new cars sold in the United States, and all-electric trucks accounted for less than 2 percent of new heavy-duty trucks sold. Even with the tax subsidies from the Inflation Reduction Act, the Energy Information Administration (EIA) predicts that electric vehicles will only make up 15% of sales in 2030 and 19% in 2050. Although electric vehicles are becoming more popular in the luxury class, they are less competitive in the mass market, according to the EIA, which is why the Biden administration is pushing new EPA rules on manufacturers of American automobiles. Luxury vehicles are too expensive for most Americans and can breach tax credit limits. Also, the credits are income limited, although the Biden administration has added a “rental loophole” that can allow the wealthy to receive the benefits of the credits by renting.
The new rules will require a revolution in the U.S. auto industry, where U.S. automakers are already losing money with the transition to electric vehicles. Ford reported that its electric vehicle business in the United States had losses totaling $2.1 billion, a figure that is expected to rise to $3 billion by 2023. Almost all major automakers they have invested billions in the production of electric vehicles while continuing to manufacture conventional gasoline-powered vehicles, which produce their profits. and underwrite their sales of electric vehicles. The proposed regulations would require them to invest more and reorient their processes in a way that would essentially mean the end of the internal combustion engine. Tesla is the only American carmaker that stands to emerge as a winner under the new rules because it only produces electric cars. The company counted 64 percent of the US electric vehicle market last year.
The Biden administration’s plan to spur electric vehicles is expected to reduce U.S. oil demand by 17 billion barrels by 2055. The EPA estimates that its proposal, which will be finalized next year after if the comments are considered, it would curb US oil imports by up to 16. billion barrels by 2055, which translates into a decrease of about 1.6 million barrels per day between 2027 and 2055 .However, since the United States is no longer dependent on oil imports, since our oil exports exceed our oil imports by about a million barrels per day, this measure is of no consequence. Unfortunately, the expected reduction in liquid fuel demand will affect US oil refineries and biodiesel and ethanol producers. After the COVID lockdowns reduced demand for oil, many US refineries converted or are converting to biofuel production, reaping generous benefits from state and federal subsidies.
How it works
The EPA cannot require automakers to sell a certain number of electric vehicles. However, under the Clean Air Act, the agency can limit emissions from the number of cars each manufacturer sells. The EPA set the cap in these rules so tight that the only way manufacturers can meet it is to sell a certain percentage of zero-emissions vehicles. Each model year in which the rule is in effect, auto companies must report to the federal government the average greenhouse emissions of all new cars sold. Companies that don’t comply can be fined billions of dollars.
conclusion
If electric vehicles are more efficient and save customers money, as Biden administration officials claim, manufacturers should not be forced and forced to produce them through these EPA rules. While the rules don’t dictate the specific cars or models that must be made, the Administration is remaking a major industry in a way unprecedented in a free-market economy. This is Chinese-style central planning, as automakers have to answer to government politicians first, not to consumers and investors. The automaker’s lobby stated, “The EPA’s proposed emissions plan is aggressive by any measure. This requires a massive 100-year change in the American industrial base and the way Americans drive. Americans”.
Could this be the end of personal mobility for many Americans? While it’s too early to tell, this regulation alone will price many out of the market, which may explain why Bidenadministration’s fascination with electric buses. The Biden administration clearly does not believe that Americans are enlightened enough to make their own decisions and is forcing sweeping changes on us that will only ruin this country by removing personal mobility for many.
