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Automotive

Biden’s Ambitious EV Charging ‘Fantasy’ May Be On A Collision Course With Reality

Published

5 months ago

9 minute read

From the Daily Caller News Foundation

By NICK POPE

 

President Joe Biden has pledged to install 500,000 public electric vehicle (EV) chargers around the U.S. by 2030, but logistical hurdles may be too much to overcome.

The Biden administration landed $7.5 billion to build out a network of public EV charging stations around the country in the bipartisan infrastructure package of 2021, but those funds have only led to a handful of operational charging stations to date. Transportation Secretary Pete Buttigieg reaffirmed the administration’s goal to build 500,000 chargers with the money by 2030 during a May television appearance on CBS News, but challenges like adding transmission lines, navigating the permitting process and coordinating with utility companies figure to make the goal improbable.

As of April 1, the administration’s $7.5 billion push had only led to seven operational charging stations combining for less than 40 chargers around the U.S., a pace that has drawn criticism from House Republicans and even Democratic Oregon Sen. Jeff Merkley. While other projects are on their way to being built and operational, the nation’s EV charging infrastructure remains mostly concentrated in more densely-populated, coastal areas of the country, according to the Department of Energy (DOE).

While results have been slow to materialize, federal funding should be sufficient to build approximately 25,000 charging spots at about 5,000 stations, according to Atlas Public Policy, a policy analysis organization that focuses specifically on EVs. In order to reach those figures by 2030, the administration’s funding will have to spur the construction of more than 900 stations each year until then, a big step up from the program’s output of less than 10 stations over nearly three years.

“Our programs are accelerating private sector investment that puts us on track to deploy 500,000 charging ports well ahead of schedule and continue to expand a convenient and reliable charging network,” a Department of Transportation spokesperson told the DCNF. “There are currently projects underway in partnership with states and local grantees for 14,000 federally-funded EV charging ports across the country under the [National Electric Vehicle Infrastructure (NEVI)] and [Charging and Fueling Infrastructure (CFI)] programs that will build on the 184,000 chargers operational today.”

Of the 184,000 chargers in operation today, more than 107,000 were already in circulation as of 2020, the last full year before the Biden administration took office, according to the DOE. Moreover, there are only about 10,000 fast charger stations in the U.S., a number that EV proponents would like to see increase to alleviate the public’s concerns about EV range and recharging wait times, according to The Washington Post.

Some of the biggest logistical hurdles are ones that may not be immediately obvious, such as enduring the process of building out needed transmission lines and upgrading existing utility infrastructure to accommodate hundreds of thousands of new chargers, according to experts who spoke with the Daily Caller News Foundation about whether such a number of chargers will be operational by 2030.

One skeptical expert is Dr. Jonathan Lesser, a senior fellow at the National Center for Energy Analytics and president of Continental Economics. Lesser estimates that “hundreds of thousands of miles” of new transmission lines will be needed to deliver enough electricity to the right places to meet the administration’s goal, a tall order given that the U.S. managed to complete less than 700 miles of transmission projects in 2022, according to data aggregated by Statista.

Lesser wrote his own analysis of the challenges the administration’s EV charger push faces for The Hill on Monday.

“The administration’s efforts to mandate EVs without considering the physical infrastructure to charge them (to say nothing of the cost), not only highway charging stations but also the necessary upgrades to millions of miles of local distribution circuits and transformers for home charging – is either an exercise in green virtue signaling or a cynical effort to restrict Americans’ mobility,” Lesser told the DCNF. “If EVs are the wave of the future then consumers will purchase them without the need for mandates and the private sector will develop the necessary infrastructure, just as it did a century ago and just as Tesla has done for its vehicles, without the need for government intervention.”

“If all those chargers were in place, you would need hundreds of thousands of large transformers and transmission lines along highways to provide the electricity,” Lesser continued. “You would also need linemen to install everything – and they are already in short supply. Of course, none of this addresses the issue of where the electricity comes from – if it is to be from renewables (e.g., wind and solar), there would have to be a massive building effort.”

Lesser believes there is “not a chance” that the 500,000 charger goal is met by 2030, and added that Buttigieg’s suggestion the administration will reach that target amounts to “pure fantasy.”

In addition to the billions of dollars meant to subsidize public charging infrastructure, the administration is also spending big to help manufacturers produce more EVs and to blunt the higher costs of EVs for consumers. Further, federal agencies have also promulgated aggressive fuel economy standards and tailpipe emissions rules that will force significant increases in EV sales over the next decade for light-, medium- and heavy-duty models.

Energy Secretary Jennifer Granholm described the chargers covered by the $7.5 billion program as “the hardest ones because they’re going to places where the private sector hasn’t gone because there’s no electricity, because they’re remote” at Politico’s 2024 Energy Summit remarks on Wednesday.

Aidan Mackenzie — an infrastructure fellow at the Institute for Progress with particular expertise covering energy, transportation and housing policy — agreed that logistical challenges are likely to hinder the administration’s goal for charger deployment by 2030. Specifically, he highlighted securing complementary infrastructure, like transmission lines, as likely to sap time and resources away from the effort to construct a national network of public chargers.

“It seems like it’s going to be hard to meet this target,” Mackenzie told the DCNF. “Different utility regions do not necessarily have an incentive to plan or build large capacity transmission lines that share power. They often interrupt the way that utilities want to control the generation in their region. So, I would very much expect that to be the binding constraint.”

However, Mackenzie added that the administration could achieve the desired results of its $7.5 billion program and its broader goal of 500,000 charger goal if regulators and builders are able to develop “muscle memory” in the earlier stages of rollout so that officials from both sectors can more easily and quickly navigate complex processes in the near future.

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Alberta

Premier Smith says Auto Insurance reforms may still result in a publicly owned system

Published on November 21, 2024

By

Better, faster, more affordable auto insurance

Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.

After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.

Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.

“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”

Danielle Smith, Premier

“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”

Nate Horner, President of Treasury Board and Minister of Finance

Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.

Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.

Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.

In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.

Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.

By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.

“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”

Nathan Neudorf, Minister of Affordability and Utilities

Quick facts

  • Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
  • A 2023 report by MNP shows
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Automotive

Bad ideology makes Canada’s EV investment a bad idea

Published on November 13, 2024

By

Dan McTeague

Written By
Dan McTeague

It doesn’t bode well for our country that our economic security rests on tariff exceptions to be negotiated by Liberal politicians who have spent the majority of Trump’s public life calling him a “threat to liberal democracy” and his supporters racists and fascists. Their hostility doesn’t lend itself to fruitful diplomacy. In any event, Trump’s EV rollback and aggressive tariffs will spell disaster for the Canadian EV sector.

What does Donald Trump’s resounding win in the recent U.S. election mean for Canada? Unfortunately, there doesn’t seem to have been much thought about the answer to this question in Ottawa, because the vast majority of our political and pundit class expected his opponent to be victorious. Suddenly they’re all having to process this unwelcome intrusion of reality into their narrow mental picture.

Well, what does it mean?

It is early days, and it will take some time to sift through the various policy commitments of the incoming Trump Administration to unpack the Canadian angle. But one thing we do know is that a Trump presidency will be no friend to the electric vehicle industry.

A Harris administration would have been. But, Trump spent much of his campaign slamming EV subsidies and mandates, pledging at the Republican National Convention in July that he will “end the electric vehicle mandate on day one.”

This line was so effective, especially in must-win Michigan, with its hundreds of thousands of autoworkers, that Kamala Harris was forced to assure everyone who listened that the U.S. has no EV mandate, and that she has no intention of introducing one.

Of course, this wasn’t strictly true.

First, the Biden Administration, of which Harris was a part, issued an Executive Order with the explicit goal of a “50% Electric Vehicle Sales Share” by 2030. The Biden-Harris Administration (to use their own formulation) instructed their Environmental Protection Agency (EPA) to introduce increasingly stringent tailpipe emission regulations on cars and light trucks with an eye towards pushing automakers to manufacture and sell more electric and hybrid vehicles.

Their EPA also issued a waiver which allows California to enact auto emissions regulations that are tougher than the federal government’s, which functions as a kind of back-door EV mandate nationally. After all, auto companies aren’t going to manufacture one set of vehicles for California, the most populous state, and another for the rest of the country.

And as for intentions, though the Harris camp consistently held that her prior policy positions shouldn’t be held against her, it’s hard to forget that as senator she’d co-sponsored the Zero-Emission Vehicles Act, which would have mandated that all new vehicles sold in the U.S. be “zero emission” by 2040. During her failed 2020 presidential campaign, Harris accelerated that proposed timeline, saying that the auto market should be all-electric by 2035.

In other words, she seemed pretty fond of the EV policies which Justin Trudeau and Steven Guilbeault have foisted upon Canada.

For Trump, all of these policies can be filed under “green new scam” climate policies, which stifle American resource development and endanger national prosperity. Now that he’s retaken the White House, it is expected that he will issue his own executive orders to the EPA, rescinding Biden’s tailpipe instructions and scrapping their waiver for California. And though he will be hindered somewhat by Congress, he’s likely to do everything in his power to roll back the EV subsidies contained in the (terribly named) Inflation Reduction Act and lobby for changes limiting which EVs qualify for tax credits, and how much.

All of this will be devastating for the EV industry, which is utterly reliant on the carrots and sticks of subsidies and mandates. And it’s particularly bad news for the Trudeau government (and Doug Ford’s government in Ontario), which have gone all-in on EVs, investing billions of taxpayer dollars to convince automakers to build their EVs and batteries here.

Remember that “vehicles are the second largest Canadian export by value, at $51 billion in 2023 of which 93% was exported to the U.S.,” according to the Canadian Vehicle Manufacturers Association, and “Auto is Ontario’s top export at 28.9% of all exports (2023).”

Canada’s EV subsidies were pitched as an “investment” in an evolving auto market, but that assumes that those pre-existing lines of trade will remain essentially unchanged. If American EV demand collapses, or significantly contracts without mandates or tax incentives, we’ll be up the river without a paddle.

And that will be true, even if the U.S. EV market proves more resilient than I expect it to. That is because of Trump’s commitment to “Making America Great Again” by boosting American manufacturing and the jobs it provides. He campaigned on a blanket tariff of 10 percent on all foreign imports, with no exceptions mentioned. This would have a massive impact on Canada, since the U.S. is our largest trading partner.

Though Justin Trudeau and Chrystia Freeland have been saying to everyone who will listen how excited they are to work with the Trump Administration again, and “Canada will be fine,” it doesn’t bode well for our country that our economic security rests on tariff exceptions to be negotiated by Liberal politicians who have spent the majority of Trump’s public life calling him a “threat to liberal democracy” and his supporters racists and fascists. Their hostility doesn’t lend itself to fruitful diplomacy.

In any event, Trump’s EV rollback and aggressive tariffs will spell disaster for the Canadian EV sector.

The optimism that existed under the Biden administration that Canada could significantly increase its export capacity to the USA is going down the drain. The hope that “Canada could reestablish its export sector as a key driver of growth by positioning itself as a leader in electric vehicle and battery manufacturing, along with other areas in cleantech,” in the words of an RBC report, is swiftly fading. It seems more likely now that Canada will be left holding the bag on a dying industry in which we’re invested heavily.

The Trudeau Liberals’ aggressive push, driven by ideology and not market forces, to force Electric Vehicles on everyone is already backfiring on the Canadian taxpayer. Pierre Poilievre must take note — EV mandates and subsidies are bad for our country, and as Trump has demonstrated, they’re not a winning policy. He should act accordingly.

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