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Automotive

The Pawns Push Back against the Trudeau Government’s Electric Vehicle Diktats

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16 minute read

From the C2C Journal

By Gwyn Morgan

Perhaps there is a certain twisted logic to the woke left’s attempt to convince schoolchildren that math is racist and that 2 plus 2 might well equal 5. For this may be the only way to get the “math” surrounding the Justin Trudeau government’s push to force Canadians into buying only electric vehicles as of 2035 to work in any way at all. Gwyn Morgan reviews the actual math of key elements of the EV transition scheme – the electric power needs, the subsidized purchases, the tax credits, the vast number of required charging stations, the maintenance of roads – and finds both the costs and the implementation obstacles to be a mixture of steep, dubious and prohibitive. So much so, Morgan concludes, as to cast the entire EV transition in doubt.

The federal government has mandated that all new passenger vehicles and light-duty trucks sold in Canada be electrically powered by 2035. Two of the many serious obstacles to achieving that goal will be the requirement for vastly more electrical generating capacity along with hundreds of thousands of additional charging stations.

A study by the Fraser Institute released in March, Electric Vehicles and the Demand for Electricity, found that the addition of millions of EVs to Canada’s roads would push nationwide demand for electricity up by more than 15 percent, requiring the equivalent of either 10 new large hydroelectric dams the size of B.C.’s nearly completed Site C Dam on the Peace River, or 13 large new natural gas-fuelled facilities. The Site C dam needed 10 years to gain environmental approval, took an additional decade to build and has cost $16 billion. All to generate approximately 1,100 megawatts of electricity. Most of Canada’s viable large-scale sites have already been dammed, and opposition to any new dam would be bound to be even more stubborn than against Site C. Planning, funding, building and commissioning 10 new dams the size of Site C or larger in the next 11 years is clearly unrealistic.

The cost of a charge: Research suggests that adding millions of EVs to Canadian roads would require an over 15 percent increase in nationwide electricity supply – equivalent to 10 large hydroelectric dams the size of B.C.’s $16 billion Site C Dam on the Peace River (bottom). (Source of bottom photo: BC Hydro)

That leaves the natural gas-fired plants. Technically, these could be built in such a time-frame, and western Canada is producing sufficient natural gas to fuel them. But not only is the Justin Trudeau government vehemently opposed to building any new fossil fuel-powered electricity plants, doing so would kibosh those EV’s zero emissions; they would become fossil-fuel-powered vehicles, just indirectly.

In addition, the cost of building and operating those gas plants would be enormous. And who would pay? Since it’s virtually impossible to separate power billing by source, their costs would need to be rolled into existing electricity rates. That would increase the burden on Canadian ratepayers and businesses, many of which are already struggling. And it might even lead inflation-weary, economically hard-pressed citizens sick of all the costly political games to riot in the streets. The only alternative, then, would be huge nationwide power subsidies in a country with an already massive national debt.

The whole campaign to “transition” Canadians into EVs is already prodigiously expensive. Consider just the direct EV subsidies, aimed at narrowing the price advantage that internal combustion engine vehicles have over EVs. The federal government currently kicks in a $5,000 subsidy for every EV purchased in Canada. Another 24 million or so EVs will need to be sold to switch over Canada’s entire light-duty vehicle fleet. The overall subsidy math is pretty simple.

Then, powering up all the anticipated new EVs will require a major push to install charging stations all over Canada. Here again, taxpayers are being forced to ride to the rescue with Ottawa’s $680 million Zero Emission Vehicle Infrastructure Program (ZEVIP). Meaning, subsidized charging stations. ZEVIP comes after the federal government has already spent more than $1 billion “to make EV’s more affordable and chargers more accessible for Canadians.” How has that worked out? As of late 2021 the entire country had just 6,000 publicly available EV charging stations. ZEVIP has the grandiose goal of adding another 84,500. But Canada requires some 160,000 gasoline and diesel pumps to keep its vehicle fleet running and make refuelling reasonably convenient nearly anywhere. Recharging an EV takes at least 10 times as long as gassing up a regular car, implying the need for a couple of million EV charging stations.

Good luck with that: The Government of Canada claims its $680 million Zero Emission Vehicle Infrastructure Program will help get nearly 85,000 charging stations built. But in the U.S., President Joe Biden’s US$7.5 billion charging station construction program has produced just eight charging stations in two-and-a-half years. (Sources of photos: (top) Marc Bruxelle/Shutterstock; (bottom) EV Central)

The program will also be burdened with the maddening reality – as I detailed in this recent column – that nothing government touches comes in on time or on budget any longer. So what will ZEVIP’s $680 million really buy? Recent U.S. experience may be sadly instructive. The enormous Infrastructure Investment and Jobs Act passed at the behest of the Joe Biden Administration in late 2021 allotted US$7.5 billion to build a promised 500,000 EV charging stations by 2030. As of last month, the U.S. government had succeeded in building a grand total of – wait for it – eight. No, there aren’t any zeros missing. So I’m not hopeful that EV charging stations will magically mushroom all across our nation, either.

Adding to the taxpayer-committed largesse here in Canada, a recent report by the Osler law firm carries news of a new EV supply-chain incentive included in the Liberals’ gargantuan Budget 2024 that provides a further 10 percent tax credit, this one for buildings used to manufacture EVs, batteries, and related materials. It comes on top of the existing, massive 15-30 percent tax credits on investment in or manufacture of “clean” technology and EVs. The latest corporate giveaway was designed for Honda’s recently announced $15 billion plant, but also applies to other new projects.

Who’s to pay? Canadians driving gasoline-powered vehicles pay over $23 billion in road use taxes annually while EV drivers coast along for free – an unrealistic arrangement if EVs do take over our roads. (Source of photo: Shutterstock)

If your head isn’t already spinning in trying to comprehend the massive scale of consumer and taxpayer largesse being shovelled towards the EV industry – all in an effort to convince Canadians to switch en masse to these expensive, unreliable and inconvenient cars – there’s another huge subsidy: free road use. We reprehensible drivers of gasoline and diesel vehicles pay a lot in fuel taxes.

The Canadian Taxpayers Federation’s 24th Annual Gas Tax Honesty Report shows that Canadian drivers in 2022 paid an average of 55 cents per litre in gasoline taxes (based on a retail price of $1.76 per litre; exact tax rates vary by province, of course). Combining that information with Statistics Canada data estimating total gasoline consumption of 42.5 billion litres in 2022 means that Canadian drivers collectively pay over $23 billion in road use taxes annually to all levels of government.

Meanwhile, EV drivers continue to pay nothing. Besides the grievous disparity of this situation, Trudeau’s EV mandate would gradually remove gasoline and diesel-fuelled vehicles from the road. Then who will pay to maintain the roads for all those EVs to travel on? Clearly, EVs will need to be taxed in some way, and some provinces are just starting to do so, like Saskatchewan’s $150 extra annual registration fee on EVs, introduced in late 2021. But such baby steps will need to get a lot larger if gasoline-powered vehicles really do start vanishing from daily traffic. But having to start paying their share to maintain roads will make EVs even less attractive to car buyers.

Now for the most important question. Will this big shift to EVs have any environmental benefit? Manufacturing EV batteries requires huge quantities of “rare earth” minerals as well as conventional metals. A Fraser Institute report published in November, Can Metal Mining Match the Speed of the Planned Electric Vehicle Transition? references an International Energy Agency study showing that to meet international EV pledges a gargantuan 388 new lithium, nickel, cobalt and other related metal mines will be needed worldwide. But the typical timeline from regulatory application to first production varies from six-nine years for lithium to 13-18 years for nickel. Rare-earth mineral production can’t possibly ramp up fast enough to meet the Trudeau government’s 2035 all-EV “mandate”.

What about the human cost of all those mines? Most of the world’s known large rare-earth mineral deposits are in developing countries. A report from a team of researchers led by Northwestern University, entitled Understanding cobalt’s human cost, examined the impact of cobalt mining in the Democratic Republic of Congo. It found that such mining had “dire effects on human well-being,” including “increases in violence, substance abuse, food and water insecurity, and physical and mental health challenges,” as well as uprooting farmers from their lands and in some cases kicking them out of their houses. Half of the world’s rare-earth minerals lie in Africa, where reports of child labour and other human rights abuses are all too common.

The human cost of a “green” future: Depicted is the main cobalt mining site in the Democratic Republic of Congo, where 75 percent of this critical input to EV batteries is mined; as one recent academic report notes, this hazardous industry has “dire effects on human well-being”, including on physical and mental health, and often involves child-labour and human rights abuses. (Source of photos: Siddharth Kara, retrieved from The Independent)

Clearly, the answer to the question “Will the shift to EVs have any net environmental benefit?” is “No.” Moreover, the human cost of trying to meet the EV targets will be profoundly negative.

These formidable direct obstacles to a smooth EV transition make it highly unlikely that Trudeau’s ban on gasoline vehicles will happen. But the most profound underlying reason the entire scheme is probably doomed comes from the man who first articulated the principles of personal and economic freedom. In his 1759 book The Theory of Moral Sentiments, economist and philosopher Adam Smith stated, “The man of the system seems to imagine that he can arrange the different members of a great society with as much ease as the hand arranges different pieces upon a chessboard. But people are not chess pieces to be moved around by a hand from above.”

Like philosopher Adam Smith’s (top left) “man of the system”, Justin Trudeau (top right) tries to arrange people as if they are “pieces upon a chessboard”; but the thousands of unsold EVs filling vast parking lots in China, the U.S. and seaports around the world suggest car-buying consumers are still capable of independent decision-making. (Sources of photos: (top right) The Canadian Press/Chad Hipolito; (bottom) Golden Shrimp/Shutterstock)

Justin Trudeau is the very embodiment of Adam Smith’s “man of the system”, attempting to push Canadians around like pawns on an ideological chessboard. But even as I write this column come reports of EV sales collapsing – and of vast parking lots of unsold and perhaps unsaleable EVs in China, Australia and dockside at various seaports – despite aggressive price slashing and all those ever-increasing taxpayer subsidies. The “hand from above” is losing to the independent thinking of regular people.

Gwyn Morgan is a retired business leader who was a director of five global corporations.

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Alberta

Your towing rights! AMA unveils measures to help fight predatory towing

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From the Alberta Motor Association

Know Before the Tow: Towing Rights in Alberta

Predatory towing is a growing concern in major cities across the province. The Alberta Motor
Association (AMA), in partnership with the Calgary Police Service and Calgary Fire Department,
wants to ensure Albertans are not only aware of this emerging issue but also know how to stop
it.

Today, AMA launches Know Before the Tow—a new, provincewide awareness campaign that
empowers Albertans with the knowledge needed to stay confident and in control when faced with
a tow scam. The campaign features a list of five key towing rights that every Alberta driver should
know:

1. You have the right to refuse unsolicited towing services.
2. You have the right to choose who tows your vehicle, and where, unless
otherwise directed by police.
3. You have the right to access your vehicle to retrieve personal items during a
storage facility’s business hours.
4. You have the right to ask if the towing company receives a kickback for taking
your vehicle to a particular storage facility or repair shop.
5. You have the right to a quote prior to service, and an itemized invoice prior to
making payment.

“Being in a collision or broken down at the roadside is stressful enough; the last thing any Albertan
needs is high pressure from an unscrupulous tower,” says Jeff Kasbrick, Vice-President,
Advocacy and Operations, AMA. “These towing rights are clear and remind every Albertan that
they’re in the driver’s seat when it comes to who they choose to tow their vehicle.”

Edmonton and Calgary in particular are seeing increasing reports of predatory towing. Unethical
operators will arrive at a collision or breakdown scene uninvited, create a false sense of urgency
to remove the vehicle, and ultimately leave drivers facing huge fees.

Starting today, Albertans can visit ama.ab.ca/KnowBeforeTheTow to download a digital copy of
their towing rights, helping them feel confident if faced with a tow scam. And soon, all AMA centres
will offer free print versions, which are small enough to tuck in a glovebox.

“Alberta’s towing industry is still highly reputable, with the vast majority of operators committed
to fair and professional service. In fact, AMA and our roadside assistance network is proud to
represent 80% of all private-passenger tows in the province, so our members can be confident
that we’ll always protect them—just as we have for nearly 100 years,” says Kasbrick.

“By knowing your rights and choosing trusted providers like AMA, you can avoid unnecessary
stress, costs, and uncertainty. Because the road to recovery after a collision shouldn’t have to
include fighting for your vehicle.”

Sergeant Brad Norman, Calgary Police Service Traffic Section, says law enforcement continues
to work diligently with first responders and community partners like AMA to put the brakes on
predatory towers, who “are showing up at collision sites and pressuring overwhelmed and
frightened victims into paying high towing rates.”

“Our priority is to ensure the safety of collision victims, the public, and first responders at
collision sites. Part of this effort is educating motorists about their rights so that they Know
Before the Tow that they can say no to unsolicited towing services and choose a reputable
tower of their choice instead,” says Norman. “No one deserves to be taken advantage of after
being involved in a collision.”

To learn more, and to view an expanded version of Alberta towing rights, visit
ama.ab.ca/KnowBeforeTheTow

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Automotive

‘A Lot Of Government Coercion’: Study Slams ‘Forced Transition’ To EVs Consumers Don’t Seem To Want

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From the Daily Caller News Foundation

By Owen Klinsky

The push for electric vehicle (EV) adoption is largely premised on misleading claims, and could bring enormous costs for U.S. consumers and the economy, a new meta-study shared exclusively with the Daily Caller News Foundation found.

Federal regulators and multinational corporations have attempted to push EVs on the American public in recent years, with the Biden-Harris administration introducing strict tailpipe emissions standards, and major automakers implementing lofty electric production targets. However, widespread EV adoption may not be as feasible as lawmakers and auto executives once claimed, with a new meta-analysis from the Institute for Energy Research (IER) noting EVs can have a variety of drawbacks for consumers when compared to their gas-powered counterparts, including elevated upfront costs, lower resale values, limited driving range and a lack of charging infrastructure.

“We argue the EV transition is going to take a lot of government coercion to make happen,” Kenny Stein, vice president of policy at IER and the study’s lead author, told the DCNF. “It is a very difficult process, and it is not a very desirable process to force.”

When Government Chooses Your Car Study; Institute for Energy Research (IER)

Much of the reason a U.S. EV transition will not occur without government force, according to the study, is cost. The price of an average EV in the first quarter of 2024 was $53,048, compared to just $35,722 for conventional vehicles, according to car shopping guide Edmunds, meaning many EVs continue to be less affordable than their gas-powered counterparts even with the U.S. Treasury Department’s $7,500 tax credit.

The IER study also cites elevated depreciation as a constraint on EV adoption, noting that the average five-year depreciation for an electric car is $43,515 compared to $27,883 for a gas-powered vehicle, according to vehicle valuation company Kelley Blue Book. The rapid depreciation is largely driven by battery replacement costs, which range from $7,000 to as much as $30,000.

In addition to sheer cost, the study found “range anxiety” — the concern among drivers that they will run out of charge before reaching their destination or a charging station — is a major source of consumer reluctance to purchase EVs. While “range anxiety” can be reduced by increasing mileage, expanding an EV’s range requires a larger battery, which in turn drives up vehicle cost and creates a difficult tradeoff for consumers.

A lack of charging infrastructure also contributes to range concerns, and has proven difficult to fix despite ample government funding, the study found. For example, the bipartisan infrastructure bill of 2021 allotted $7.5 billion to subsidize thousands of new EV charging stations, but only seven stations in four states had been built as of April.

The combination of range issues and high costs has helped drive a slackening in EV demand, with EV sales growing 50% in the first half of 2023 and 31% in the first half of 2024, less than the 71% increase in the first half of 2022. Moreover, a June poll from The Associated Press-NORC Center for Public Affairs Research and the University of Chicago’s Energy Policy Institute found 46% of respondents were “unlikely” or “very unlikely” to purchase an EV, while just 21% were “very” or “extremely” likely to make the change.

If thousands of new charging stations are built and demand rises due to the alleviation of range concerns, the transition would create a variety of new infrastructural challenges, namely that it would reduce the reliability of an already constrained U.S. power grid.

“Up until two years ago or so, electricity demand in the United States was flat so nobody worried about running out of electricity. But with the data center boom and AI [artificial intelligence], there’s been a sudden spike in demand for electricity, and demand is expected to continue growing,” Stein told the DCNF. “Now you’re suddenly talking about not having enough electricity to supply everyday use at the same time we are trying to force pre-existing transportation systems to run on electricity. When you combine that EVs are more expensive and less flexible with the possibility we may be running out of electricity to keep homes cool and to operate industrial facilities, the logic of pursuing [the EV transition] gets even worse.”

Electricity demand has grown by 1.3% annually for the past three years — more than double the average growth rate from 2010 to 2019, according to the Federal Reserve Bank of Kansas City. The surge has been driven largely by a boom in artificial intelligence and data centers, with commercial electricity accounting for 60% of growth in total U.S. power demand between 2021 and 2023.

On the supply side, the Biden-Harris Environmental Protection Agency (EPA) has pushed to reshape the power grid by effectively requiring America’s existing coal plants will have to use carbon capture and storage (CCS) technology to control 90% of their carbon emissions by 2032 if they want to stay running past 2039, and certain new natural gas plants will have to cut their emissions by 90% by 2032. The EPA rule “leaves coal-heavy regions, like the one covered by the Midcontinent Independent System Operator, vulnerable to reliability problems in the near future,” Isaac Orr, a policy fellow for the Center of the American Experiment who specializes in grid analysis, previously told the DCNF.

Grid reliability is already wavering, with hundreds of millions of Americans at risk of experiencing power shortages this winter if weather conditions are harsh, according to power grid watchdog the North American Electric Reliability Corporation (NERC).

The IER study also identifies a set of “myths fueling electric vehicle policy,” including that EVs are necessarily better for the environment.

“One of the biggest sources of emissions from vehicles is tire wear, because tires are made primarily from oil, and as your tires roll along the ground, they degrade and release particulates into the air,” Stein told the DCNF. “Electric vehicles are much heavier than gas-powered cars due to their batteries, which requires them to have heavier tires that wear faster, so EVs actually have much higher particulate emissions than comparable internal combustion engine vehicles.”

A 2020 study from environmental engineering consultancy Emissions Analytics found particulate wear emissions were 1,000 times worse than exhaust emissions, with later research conducted by the consulting firm finding a Tesla Model Y produced 26% more tire emissions than a comparable hybrid vehicle.

Additionally, the IER study notes EVs require six times the mineral inputs of conventional cars, which in turn calls for emissions-intensive mining processes that produce toxic waste.

“For average Americans, the tradeoff calculation obviously is not working,” the study’s authors wrote. “This is not due to misinformation; indeed… there is plenty of pro-EV misinformation. It is simply that…there are negative tradeoffs to EVs. In designing policy, these negative factors must be considered rather than simply ignored.”

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