Put People First in EPA Tailpipe Emissions Rule

Mark Green
Posted July 13, 2023

EPA’s proposed rule on tailpipe emissions is a clear example of Washington politics taking priority over sound policymaking, which actually could get in the way of the administration’s goal of reducing transportation sector emissions.

Instead of protecting consumers and the choices available to them in the marketplace while reducing the nation’s transportation emissions, the agency’s blinkered focus on advancing electric vehicles as the sole strategy for emissions reductions could impact all three. That’s the definition of elevating politics over people.

These points and others are detailed in API’s official comments to EPA on its proposed emissions standards for model years 2027 and later and light-duty and medium-duty vehicles – which would effectively create a de-facto ban on gasoline- and diesel-fueled vehicles driven by most Americans. Issues with the proposal also are illuminated in a letter to President Biden from API and more than 100 organizations representing businesses in transportation, agriculture, petroleum and chamber of commerce – and employing millions of Americans.

Will Hupman, API vice president for Downstream Policy, during a briefing for reporters on EPA’s standards proposal:

“The U.S. oil and natural gas industry shares the goal of reducing emissions across the transportation sector. Our industry supports technology-neutral federal policies that accomplish this goal while also preserving consumers’ access to affordable, reliable and efficient transportation.

“Unfortunately, EPA’s proposals don't accomplish either of these goals. The agency’s near-singular focus on electric vehicles ignores other fuel and vehicle-based options that could better achieve the administration’s goal of reducing admissions in the transportation sector. While EPA’s proposals are not an explicit ban on internal combustion engine, the proposals are a de-facto ban that will eliminate competition, distort the market and restrict consumer choice.”

EPA’s proposal ignores market realities and the potential pain the regulations could cause – again, politics over people. These were detailed in a post this week by Amanda Eversole, API executive vice president and chief advocacy officer, including:

• Reality: 260 million internal combustion engine vehicles (ICEVs) are on the road today, compared with 3 million electric vehicles (EVs) or just 1.1% of all vehicles.
• Future: There will be about 269 million ICEVs in the fleet in 2050, according to the U.S. Energy Information Administration (EIA), along with 47 million battery electric and plug-in hybrid vehicles.
• Costs: The average price of an EV at the end of 2022 was $61,488, compared with $49,507 for all passenger cars and trucks – part of the reason, as Axios reported, there is a “growing mismatch between EV supply and demand” that signals consumers remain “wary about purchasing [an EV] because of price or charging concerns.”

The obvious conclusion, given that 99% of vehicles on the road today are ICEVs, is that EPA is missing larger opportunities for reducing transportation emissions by focusing on EVs and hoped-for EV penetration in the vehicle marketplace. Clearly, the agency should be looking at ways to reduce emissions from the vehicles that Americans depend on (and prefer) today and tomorrow.

Hupman said EPA’s strategy has considerable potential negative impacts:

“The overly prescriptive policies in EPA’s proposals are not in the best interest of the consumer and risk serious harm to America's energy and economic security through a greater reliance on foreign sources, like China, for raw materials and critical minerals. While battery technology has improved, EPA’s proposals conveniently ignore the significant infrastructure, consumer acceptance, and supply-chain challenges that remain.”

Leslie Bellas, AFPM vice president of Regulatory Affairs who joined the press briefing, said Congress used recent legislation to create incentives for EVs, not mandates. EPA’s standards would measure emissions “exclusively and arbitrarily” at the vehicle tailpipe, Bellas said, “giving the false impression that some vehicles are zero emitters.” A vehicle’s life-cycle emissions should be assessed – which for EVs would include emissions associated with mining raw materials for batteries, processing those materials, manufacturing the batteries, charging and vehicle disposal.

Hupman and Bellas said broader options to reduce transportation sector emissions should be considered by EPA. These could be used in vehicles that are used and will continue to be driven in the U.S. and include:

• Continued innovations to ICEVs and their emissions control systems.
• Using renewable and alternative fuels such as ethanol, biodiesel, sustainable aviation fuel and hydrogen.
• Carbon capture and storage.

EPA’s approach would swap hard-earned American energy security for increased dependence on China. Bellas:

“Forced electrification would make us less secure, not more. It was just last year, in the shadow of Russia’s invasion of Ukraine, that this administration called on our industry to reopen refineries and make more fuels. That is because they recognize that the world still needs our products, and most forecasters agree. The world is growing, and we'll need more energy, not less. All options must be on the table … Now is the time to achieve not stifle technological competition, that will offer American consumers, dependable affordable, and sustainable options to power our vehicles.”

API supports technology-neutral federal policies that drive reductions in transportation sector emissions. EPA’s proposal is too dependent on its hopes for EVs and misses on the broader opportunity for more significant reductions by not crafting realistic policies that address the vehicles Americans drive today and are likely to drive tomorrow.

More Americans need to be heard. During a radio interview last week, API President and CEO Mike Sommers said Washington’s de facto ban on gasoline- and diesel-fueled vehicles could impact millions and that Americans must let policymakers know they’re not going to give up their internal combustion engines.

The people-over-politics message to Washington is simple: Let Americans choose their ride.