Last week, the EPA set new, more stringent emissions targets for heavy-duty vehicles, just as it set new targets for passenger cars. These rules are designed to accelerate the pace of electric vehicle adoption. Republicans in Congress and on the campaign trail have opposed these efforts, and if President Biden loses his re-election bid, these new rules are expected to disappear before they can take effect. If Biden is re-elected, his rules will affect the uptake of electric vehicles, but public policy alone won't be enough to end the use of internal combustion engines. New technology, infrastructure and lower prices will also be needed, which is as much a business challenge as it is a policy challenge. If business issues remain unresolved and auto companies are unable to meet the new standards, even a re-elected Biden team will likely negotiate lower compliance rates with the new rules.
One thing to note is the slow pace of construction of federally funded charging stations.according to Shannon Osaka of washington post:
„bipartisan infrastructure legislation; The deal, signed by Biden in November 2021, included $7.5 billion for EV charging. Of that amount, $5 billion was allocated to states in so-called „formula funding“ to build networks of fast chargers along major highways in the National Electric Vehicle Infrastructure (NEVI) program. But even after two years, the program has only provided seven open charging stations for drivers to charge, for a total of 38 locations. vehicle, According to a Federal Highway Administration spokesperson. ”
The problem is the slow process for approving state charging proposals and the fact that states have never built charging stations or requested funding for their construction, leaving federal transportation companies to avoid risk. The fact is that the Department (DOT) does not want to fund charging stations for charging stations. It doesn't work. Of course, states have been applying for grants from the DOT for years, and the department has extensive grant-making experience, but speed didn't seem to matter to federal officials. The process for awarding grants to states is long and cumbersome, and two years later, billions of dollars are still unspent.
While federal funding for charging stations will ultimately bring more chargers online faster than without federal funding, private charging stations will be a It will become a more important element of the charging system. The federal government was not required to fund gas stations, and gas stations developed by market demand. The same phenomenon can be seen with private charging. Selling gasoline is a profitable business, but selling Slurpees and lottery tickets is much more profitable. Charging a car takes longer than filling up a tank of gas, so businesses that will attract customers by installing charging stations will include sit-down cafes, large stores, and supermarkets. Gas stations and convenience stores are located on much smaller plots of land, which may make it more difficult to install charging stations, but some will adjust. So far, the pace of installing charging stations has been slow. Brian Vines of consumer report I recently wrote:
“Physical locations, especially big-box stores like IKEA, fast-food chains, and other retail outlets in shopping centers with extensive parking lots, are perfect candidates for building an electric future for several reasons. They are located throughout the United States, often in central locations near freeways. Many Americans drive in to shop and eat. Some Stores offer fast chargers that allow car owners to fully charge their cars while shopping, and lower-power options allow them to add a few miles each time they stop to shop. One source said the number of stores that have installed EV chargers in their parking lots so far is surprisingly small. unprecedented investigation Consumer Reports examined the EV charging infrastructure of retailers across the U.S. to identify the leaders and laggards in the space. According to CR's research, only 1 in 14 big box stores, 1 in 15 grocery stores, and 1 in 40 department stores have chargers installed. And in many cases…there are usually only an average of 2-5 chargers per location. ”
Tesla is opening up its charging network to non-Teslas, albeit at a slower overall pace, and Walmart is taking expansion of its charging network very seriously. Last April, walmart The following was announced.
“By 2030, we intend to build our own EV fast-charging network in thousands of Walmart and Sam's Club stores coast to coast. With a store or club located within 10 miles of approximately 90% of Americans, we make it easy for people to own an EV whether they live in rural, suburban, or urban areas. We are uniquely positioned to offer convenient charging options that enable this.”
Regulations that require automakers to gradually transition to electric vehicles (EVs) have the effect of encouraging private investment in charging infrastructure. This will reduce the „range anxiety'' that was an early obstacle to the rapid expansion of the EV market. Currently, approximately 80% of EV charging is done in private driveways or garages. Still, many people who are holding off on buying an electric car are waiting until they can find as many charging stations as there are gas stations.
EVs have fewer moving parts and require less maintenance than internal combustion engine vehicles, but parts shortages and a lack of skilled labor make some repairs costly and time-consuming. This winter, there were reports of problems with some EV batteries being unable to maintain a charge in extremely cold weather.
These issues need to be addressed if EVs are to rapidly gain consumer confidence. In essence, the rapid adoption of electric vehicles is less a policy issue than a public-private management issue. The private sector needs to improve battery technology, lower prices and expand service networks. The public sector needs to inject subsidies into the economy faster and with better targeting.
The political uproar over the spread of EVs will continue, but As I wrote in February:
“Just as the promotion of EVs through regulation has had limited effect, political opposition to the technology has had little effect…Electric vehicles powered by renewable energy will help the world reduce greenhouse gas emissions.” I believe this transition is starting, but we can't want it to exist or regulate it. It requires new technology and lower prices. And they are already happening. Batteries, renewable energy, and the vehicles themselves are improving. There will always be a tipping point, but we don't know when.“
While the media often focuses on politics and other visible noise, when technology fails or does not meet expectations, the need to improve organizational management and coordination becomes a central issue. This often happens. As seen with Boeing's aviation safety problems, the real problem appears to be pressure from management to move assembly lines faster than is feasible. Boeing's management was willing to take high levels of risk to achieve its goal of higher profit margins. If the Department of Transport builds charging stations more quickly, the problem, paradoxically, is a lack of willingness to take an appropriate level of risk. In both cases, administrators need to focus more on the actual work of operations management and learn what can be done faster and what needs to be slowed down. Regulation can help accelerate EV adoption, but more effective public and private governance is needed to produce better EVs and make charging easier and more convenient.