Electric Cars, Charging Stations, and Auto Sales Affected by Lobbying in D.C. (Part II)

Ronald Reagan gave an iconic quote saying, “the nine most terrifying words in the English language are: I’m from the Government, and I’m here to help.”. While some may be worried about where the world and politics in DC are headed, others are hopeful for our future. Striving for an economically and environmentally healthy future, President Biden and other politicians in Washington have been trying to pass a multi-trillion-dollar budget package and have recently passed the bipartisan infrastructure plan. The budget plan and infrastructure bill are focused on recovering from the pandemic, sale incentives for electric cars, EV charging station development, energy regulations, and more. As with all politics, there’s been plenty of kick-back and debate surrounding these proposals.

Who’s supporting and fighting Biden’s proposals?

The proposals presented in Washington DC would have a huge impact on the automotive industry, especially on electric car sales . But, you can read more about some of the specifics being debated in Washington with our previous article Charging Stations and Electric Cars Affected by New Proposals (Part I). President Biden’s proposals are sparking a big lobbying push and debate. Environmentalists, utility companies, and other interested groups are all pushing for the proposals to pass. On the other side of the coin are big oil and gas companies, the biofuel industry, some automotive manufacturers, and their lobbyists. These groups are pushing back against President Biden’s proposals for multiple reasons.

Knowing what the budget plan and infrastructure bill are designed for , along with how they could impact various industries, specifically big oil/gas and the automotive manufacturers, is important. Here’s an explanation of the lobbying sides in Washington, their motivations, and the possible impacts on the auto industry.

 

EV and charging station resistors in Washington DC

There are several groups sharing a common interest in DC right now – resisting President Biden’s proposals. Some of these are Washington lobbyist groups against electric vehicles and the expansion of their infrastructure. Others are lobbyists against the environment related incentives and new regulations. Finally, there’s also automotive companies feeling unfairly treated. Some of these lobbyists and trade groups seem to be losing their battle, but have kept fighting anyway. That’s their job. However, the nonunionized automotive companies may have more ground to stand on for their defense. Meanwhile, the biofuel industry is well aware of the rising competition. But, the industry knows about the growing social norm of supporting more environment action. The bioindustry isn’t jumping up to work with big oil/gas companies. Mostly due to their history in the past and the potential negative publicity.

Lobbyists against:

Oil and gas companies

• Big oil and gas companies are some of the biggest resistors to the proposed plans and environmental action in general. Companies like Shell, Exxon Mobile, Chevron, BP, and more are all big investors to anti-climate change and different lobbyist groups. It’s common practice for these companies invest in lobbyists and trade groups supporting their agenda. Meanwhile, these companies also invest small amounts into environmental action to save face. Fighting the development of electric car infrastructure is a key point their argument. A key piece in this debate is to avoid EV infrastructure (like a charging station) in favor of oil and gas. If EV infrastructure is not in place already or developing, gas and oil demand will continue. The same applies to legislation in relation to buildings, other transportation methods, and new regulations/standards for utilities going forward. Big oil and gas groups aim to avoid the changes, keep their status-quo, and save/gain as much profits as possible.

Automotive Manufacturers

• The automotive industry is a mixed group regarding these two proposals. Only a small number of automotive manufacturers currently employ a unionized workforce, while others don’t. Like mentioned in the Part I, according to the budget proposal an electric car produced by unionized workforces would receive extra tax credit, as opposed to nonunionized produced EVs. As of right now, only General Motors (GM), Ford, and Stellantis would be benefitting from the extra tax incentive, so other manufacturers (like Tesla) are arguing that this proposal unfairly favors their competitors.

Biofuel

• Similar to the big oil and gas companies, the biofuel industry is feeling the walls close in. Public awareness of global warming and environmental related friendliness has been growing for decades. Considering this, biofuel could last longer but there’s still growing competition with the evolution of electric car technology and cleaner energies. As of right now, big oil/gas and the biofuel industry are on the same side. However, many executives in the biofuel industry are hesitant to work with big oil companies. Mostly due to their competitive history and government/public disapproval or repercussions. But, an unlikely alliance could still be formed.

 

Charging station and Electric car supporters in DC

The automotive market, specifically electric car sales, seems to be heading towards an industry revolution. Partially because of COVID-19, but also in part because of awareness towards the environment and technological improvements to electrical cars. Between the threat of global warming, growing EV sales, competition, consumer demand, government regulations, and technological advances, there are plenty of factors pushing the auto industry away from old habits and further down the road of electric cars and charging station investment.

Electric car lobbyist supporters:

• Many environmentalists and pro-environment lobbying groups believe electric vehicles will be less harmful to the environment in the long-run and internal combustion engines, which run on liquid fuels (gas and biofuels), are becoming more and more outdated. Global warming, government regulations and incentives, strained supply chains, rising gas prices, and dwindling fossil fuels are all factors in the debate for more focus on EVs, electric car sales, and charging station infrastructure from lobbyists supporting these proposals.
• However, electric vehicle technology is far from perfected and some lingering questions still remain. How will average drivers re-charge their battery if there is no infrastructure for electric cars currently nearby? Who pays for the maintenance of a charging station? What about the maintenance, disposal, and recycling of electric vehicle batteries? Environmental awareness is growing, but many consumers still have questions before feeling confident making the switch to an electric vehicle. Despite some hesitancy still surrounding electric cars, various utility companies are another big ally pushing for President Biden’s proposals in Washington D.C. to pass.
• As expected, certain utility companies would simply love to supply more energy, because they would obviously make more money. Electrical utility companies would love for Biden’s proposals to follow through, because how much it would increase the country’s dependence on electrical energy. With more charging station development, certain utility companies would see an increase in profits while claiming residents would only see a small increase to their bills. However, this remains to be seen. Either way, the lobbying battle right now in Washington is heating up and would heavily impact the future of the American automotive and energy industries.

 

EVs and charging stations in the coming years

Today’s legislative game of tug-o-war between those who-do and do-not want to pass President Biden’s budget plan could slow or push the industry further into an automotive revolution. However, the infrastructure bill will be having a definite impact. For the most part, the automotive industry is in agreement regarding EVs and electric car sales. Companies have steadily been taking electric car sales and investing in the technology more seriously. Partially, because of the success seen by Tesla in recent years. This success seen in the automotive industry from electric cars for sale is truly worrisome for the future of oil and gas companies, as consumer demand, production, and infrastructure grows.

The budget plan and infrastructure bill aim to address more than just the auto industry. The lobbying war in Washington could have effects lasting years, on multiple industries. Monitoring for the budget plan outcome and infrastructure news will become common, because so many industries will be affected. Following this kind of legislation proposals, the governor of California (Gavin Newsom) recently passed a new bill. The bill would require all new off-road engines to be zero-emission by the year 2024. Lawnmowers and other landscaping equipment usually uses small off-road engines. This new California bill would come with $30 million in funding to help with the transition to electrically powered equipment. Biden’s proposals could be the beginning of a trend in American politics, legislation, energy, and especially transportation.

For more information, read the Remarks by President Biden. The document explains the framework and for this recently passed bipartisan infrastructure bill.

What do you think about the lobbying in DC? Should the the budget plan be passed and are you excited or nervous about the infrastructure bill passing?

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