Good for the Environment, Consumers, And Auto Companies, But Not Good For Oil Companies

Last week, a GroupThe ambitious new clean car emission standards were challenged by 15 conservative state attorneys general and oil companies. Their attempt is illegal, out-of-step and dangerous for the environment and public health.

The legal challenge comes at a particularly unlucky time to defend the global dependence upon fossil fuels. Russia, the world’s number 2 oil producer, attacked and murdered civilians in Ukraine that day. The challenge has gotten worse since then with President Biden’s ban on Russian oil imports. This is a reminder that the U.S. must decrease its dependence on foreign oil.

Fortunately, the attack by the oil industry on EPA’s new clean car standards will fail. This is not only because of the legal issues but also because of the enormous commitments countries and automakers have made in transitioning to zero-emission vehicles.

The clean car StandardsThe EPA finalized the 15 states and the coalition of fuel companies objections in December 2021. This covered passenger cars for only four model years between 2023 and 2026 and required a 28.3% reduction of emissions. These standards will have a major impact on the long-term push towards reducing greenhouse gas (GHGs) emissions from the transportation sector, the largest source of GHGs for the United States. The standards would reduce carbon dioxide emissions by 3.1 billion tons, reduce gasoline consumption in the United States by more than 360,000,000 gallons, and help Americans save up to $420billion on fuel costs by 2050.

The specifics of the fuel lobbyists and the states ArgumentThe EPA standards will unfairly promote electric vehicles (EVs) which will reduce demand. These new flexible, fleetwide emission standards, as the former director of EPAs Office of Transportation and Air Quality were consistent with EPAs long-standing legal interpretations under Republican and Democratic administrations.

Clean Air Act: EPA sets fleet-wide emission performance standards for new motor vehicle models. Auto makers decide the most cost-effective and appropriate way of achieving those standards. Like previous EPA actions, the automakers will decide how pollution reductions can be achieved and which technologies are most cost-effective.

EPA carefully considers technical readiness, cost of compliance and consumer impacts when setting emission standards for new motor vehicle models. This is exactly what happened when EPA established these new emission standards. Hundreds of EPA scientists and engineers analyzed all available technologies for meeting emission reduction targets. This included improved internal combustion engines, hybrids, EVs, and EVs. EPA concluded that EVs are more affordable and more efficient after conducting an exhaustive review.

According to the US Department of Transportation, US Energy Information Agency, and the National Renewable Energy Laboratory data, EVs are more than $500 per annum cheaper than new gasoline cars that cost $3 per gallon gasoline. Analysts predict that EV owners will save almost $1,500 annually if they purchase gasoline at $5 per gallon, which is possible if the EU joins with the U.S. to ban Russian oil imports. The cost advantage of EVs is only going to increase as the battery and other EV cost continue to drop. Paradoxally, the oil companies and allies are trying to stop EPA considering solutions that are both less polluting and more economical.

Recognizing that zero emission vehicles are available is not the same thing as dictating how auto makers meet their targets. These new standards were supported by Ford, GM and Stellantis (Chrysler’s parent company) when they were announced by EPA Administrator Michael Regan. Although the performance-based emission standards of the EPA are ambitious and criticized by lobbyists from fuel companies, they largely mirror what is already happening in private sector. The three automakers that support EPAs standards have already committed to spending over $100 billionZEVs

Many carmakers have gone further than the U.S. and other countries in reducing fossil fuels, and emissions. Six manufacturers, including Ford and GM, Volvo and Mercedes, committed to ending the sale of gasoline and diesel cars by 2035 at the climate conference in Glasgow last November. Stellantis stated they will only sell EVs within Europe by 2030. Globally, car companies plan to spend over Half a trillion dollarsIn the next five years, we will be moving towards an electrified future with zero emissions.

The global transition to zero-emission vehicles is happening already, Recognizing the industry-led solutions available, the new EPA emissions standards provide additional certainty to U.S. companies in order to invest and drive innovation for advanced zero-emission technologies.

Consumers are already seeing the benefits of this investment. After years of steady and incremental growth in the U.S.A., EV sales jumped 72%The last quarter of 2021. December 2021 was European month in Europe. Electric Vehicles (EVs) salesSales of diesel cars, which were historically the top-selling autos on the continent, have risen to 20%

This is a terrible time for oil companies to be fighting against electrification in Europe. The Russian invasion of Ukraine has led to a strong reaction from the rest of the world, demonstrating the dangers of Europe’s dependence upon Russian fossil fuels.

The truth is that it is extremely difficult for Europe, due to its current geopolitical as well as economic importance, to ban Russian oil imports. Europe imported approximately 25%2020 of its crude oil imports to Russia. The European Union has created a plan that will reduce Russian gas exports to two-thirds by 2021. However, there is no talk of Russian oil exports being banned at the moment.

There are no simple solutions to Russia’s invasion. But there is one way to get the US, Europe and the rest to stop using fossil fuels. This is to transition to renewable energy as quickly as possible and electrify the transportation sector. Democracy, consumers and corporations all win.

President Biden’s commitment to selling 50% ZEV cars by 2030 is a significant first step in ending our dependence on oil and addressing climate change. The new clean car emission standards by the EPA will allow us to recognize that we have zero-emission solutions to pollution and help us accelerate our journey towards clean transportation. We should not allow oil companies or their allies to drag us backwards.