WASHINGTON, DC - The Subcommittee on Environment, chaired by Rep. John Shimkus (R-IL), held a hearing today to keep ahead of the curve in examining policy implications for electric and conventional vehicles in the years ahead. This hearing was #SubEnvironment ’s third over the last two months dealing with fuels and vehicles.
In his opening remarks, Chairman Shimkus set the stage for the issues the hearing would examine, stating, “Battery electric vehicles are gaining in market share, and [the] internal combustion engine has significant competition for the first-time in a long-time. This hearing will delve into the question of what these changes mean for everyone involved in fuels and vehicles, and most importantly what they mean for consumers."
He continued, “As the nation’s vehicle mix changes, we may need to rethink past fuel and vehicle policies. For example, the Renewable Fuel Standard was last amended back in 2007 when we assumed that gasoline demand was on a one-way trip higher. We now know that those assumptions were overstated and will be even more so if EVs continue to gain market share. This doesn’t necessarily mean the RFS needs to be amended in light of EVs, but Congress should at least look at the matter. Automobiles are the second biggest family expense after a home, so the stakes are high."
Mr. Mitch Bainwol, President and CEO, Alliance of Automobile Manufacturers, spoke to the increase in choices consumers are seeing on the market today, commenting, “The auto industry has invested billions of dollars on powertrain R&D and that investment is paying off - automakers are providing customers with record-breaking choice in fuel efficient vehicles. Today, more than 490 models are on sale that achieve at least 30 miles per gallon. Electric Vehicles, in particular, play an important role in achieving our energy and environment goals, both in the U.S. and around the world. It’s important to note that EVs and conventional vehicles share the road today."
As part of his testimony, Mr. Bob Dinneen, President and CEO, Renewable Fuels Association, highlighted the critical role that internal combustion engines will continue to play, stating, “
Because the internal combustion engine will continue to serve as the primary means of mobility for decades to come, it is imperative that additional efforts be undertaken to improve the efficiency and environmental performance of these engines and the liquid fuels that are combusted in them. Contrary to conventional wisdom, neither internal combustion engines nor liquid fuel formulations are mature technologies. Both can be vastly improved."
Witnesses provide testimony before #SubEnvironment
Ms. Genevieve Cullen, President, Electric Drive Transportation Association, discussed the benefits to innovation and jobs brought on by EVs, remarking, “In the U.S., this market growth is building value and jobs throughout the electric drive supply chain. Of the U.S. plug-in vehicle population, which includes both all-electric and plug-in hybrid light vehicles, nearly two-thirds were assembled in the United States. According to the U.S. Department of Energy, in 2015, more than 215,000 employees were working in the ‘Motor Vehicles and Component Parts’ segment alone. Employment in that segment and through the value chain of the industry has been increasing annually."
Mr. Frank Macchiarola, Group Director, Downstream and Industry Operations, American Petroleum Institute, noted the importance of supporting energy security as Congress examines transportation issues, stating, “We encourage the adoption of policies that strengthen our energy security, improve our standard of living and protect our environment. In creating transportation policy, Congress should acknowledge that consumers are purchasing vehicles today, and those vehicles are staying on the road longer18 and going further on a gallon of fuel. New transportation policies that incentivize shifts in consumer behavior should be considered with caution as they may impose undue costs on consumers with diminishing environmental benefits and unintended consequences."
In her statement, Ms. Megan McKernan, Manager, Automotive Engineering, Automobile Club of Southern California, on behalf of AAA, focused on the rapidly changing consumer attitudes towards EVs, testifying, “Today, electric vehicles are gaining mainstream appeal. Perhaps fueling American’s desire for electric vehicles, AAA’s survey found that “range anxiety" is beginning to ease. More charging options will reduce consumer anxiety and position EVs as a viable transportation option for a variety of trips, including longer journeys that may require fueling options as convenient as filling up at the corner gas station. Moreover, while range is important to most (87 percent) electric and hybrid vehicle shoppers, it is not the only consideration. Reliability is king with nine-in-ten (92 percent) of those likely to by an electric or hybrid vehicle stating it is important when evaluating which car to buy."
Mr. Dylan K. Remley, Senior Vice President, Global Partners LP, on behalf of the National Association of Convenience Stores and the Society of Independent Gasoline Marketers, focused his testimony on the role of the private marketplace for vehicle refueling, stating, “The Associations’ members are consumer-facing businesses and are constantly adapting to changing consumer demands. Fuel retailers will continue to invest in equipment to support renewable and alternative fuels, whether it is biofuels, compressed natural gas, or electricity, if our customers demand it-and presuming a return on investment is possible. The single greatest concern that many of the Associations’ members have with the push to transition to EVs arises from efforts by state public utility companies to enter the alternative fuel recharging space with an unfair market advantage. To be clear, we have no problems with a public utility company entering the electric fuel recharging business provided it is competing for that business on equal footing with the private sector."
Ms. Geisha Williams, President and CEO, Pacific Gas and Electric Company, on behalf of Edison Electric Institute, testified regarding the electric industry’s work to promote growth in EVs, discussing, “Our industry is making unprecedented investments in smarter energy infrastructure, providing even cleaner energy, and expanding the choices and energy solutions available to meet the changing needs of our customers. Electrifying the nation’s transportation sector is an opportunity to leverage this progress to achieve extraordinary benefits for all Americans in the decades ahead."
The Majority Memorandum, witness testimony, and an archived webcast are available online HERE.
