11.30.23

Sullivan, Colleagues Demand EPA Repeal Rule Increasing U.S. Dependence on China-Produced Electric Vehicles

WASHINGTON—U.S. Senator Dan Sullivan (R-Alaska) and a group of senators and representatives recently sent a letter requesting the immediate repeal of the Environmental Protection Agency’s (EPA) May 5, 2023 proposed rule, which sets stringent emission standards for criteria pollutants and greenhouse gasses, a de facto mandate for electric vehicles (EVs). This rule requires that over two-thirds of all vehicles sold in the United States be fully electric in less than nine years, effectively forcing Americans to exclusively buy and produce EVs and increasing U.S. reliance on China’s domination of the EV supply chain.

“The EPA’s proposed mandate will increase dependency on supply chains controlled by the Chinese government,” the members wrote. “Today, up to 90 percent of the electric vehicle battery supply chain relies on China. The batteries that power electric vehicles require critical minerals, including lithium, cobalt, nickel, graphite, and manganese—and China processes 75 percent of these minerals.”

“Not only would the EPA’s proposed regulation hurt America’s national security, but it would severely limit consumer choice for affordable vehicles that fit the needs of the average American,” the members continued. “At a time of inflation, high interest rates, and rising costs, the last thing Americans need is to find both new and used vehicles unaffordable because of an EPA mandate.”

U.S. car dealerships across the country, including 10 in Alaska, also sent a letter to President Biden highlighting the extreme challenges this rule would pose to consumers and dealers alike, including unaffordable prices, weather concerns, and range capabilities. This letter can be found here.

Below is a timeline of Sen. Sullivan’s work to combat EV mandates and U.S. reliance on China’s supply chain:

  • On June 21, 2023, Senator Sullivan was an original cosponsor of S.2090, the Preserving Choice in Vehicle Purchases Act of 2023 to prohibit the Environmental Protection Agency (EPA) from barring the sale of motor vehicles fueled by gasoline, protecting consumer choice by maintaining competition in the automotive sector.
  • On April 28, 2023, Sen. Sullivan introduced the Directing Independent Research To Yield Carbon Assessment Regarding Electric Vehicles (DIRTY CAR EV) Act to conduct a study on the true carbon footprint of electric vehicles and research the ramifications of widespread electric vehicle usage on the country’s electrical grids.
  • On December 7, 2022, Sen. Sullivan introduced the Critical Mineral Independence Act to help ensure that the U.S. achieves critical mineral independence from China.
  • On May 4, 2022, the U.S. Senate approved a motion offered by Sen. Sullivan to include language prohibiting new renewable energy projects receiving federal funds from purchasing materials, technology or critical minerals sourced in the People’s Republic of China or the Russian Federation in the United States Innovation and Competition Act of 2022(USICA) and the America COMPETES Act.

Click here to see the full text of the letter.

Dear Speaker Johnson and Republican Leader McConnell,

The Environmental Protection Agency (EPA) has proposed a rule that will effectively require that over two-thirds of all vehicles sold in the United States be fully electric in less than nine years. While we are supportive of the free market producing electric vehicles to satisfy a market need, this misguided EPA mandate would have an immediate, detrimental impact on the choices and affordability of cars, trucks, and SUVs available to our constituents. It also increases America’s dependence on China.

The House Appropriations Committee recognized this threat and included language in the Interior-Environment Appropriations bill to prevent the EPA from using any funding to finalize or implement this unachievable mandate. We believe this limitation of funds must be included in any FY24 government funding package.

The EPA’s proposed mandate will increase dependency on supply chains controlled by the Chinese government. Today, up to 90% of the electric vehicle battery supply chain relies on China. The batteries that power electric vehicles require critical minerals, including lithium, cobalt, nickel, graphite, and manganese -- and China processes 75% of these minerals. Additionally, China controls 76% of global battery cell production capacity. China’s dominance is only expected to continue for the foreseeable future with 67% of all forecasted battery cell manufacturing controlled by China in 2032. In contrast to China, the United States has 7% of global battery production capacity.

Not only would the EPA’s proposed regulation hurt America’s national security, but it would severely limit consumer choice for affordable vehicles that fit the needs of the average American. At a time of inflation, high interest rates, and rising costs, the last thing Americans need is to find both new and used vehicles unaffordable because of an EPA mandate.

The EPA mandate would also radically reshape America’s auto industry and the types of vehicles in America’s driveways. Battery electric vehicles may or may not be the right choice for everyone. If required to haul, drive long distances in areas without charging infrastructure, or live in a colder climate, a fully battery electric vehicle may not meet the needs of our constituents. In recent months, evidence is emerging that the current supply for electric vehicles is exceeding current demand.6 Americans – not the government -- should be able to choose which vehicle is right for them.

We strongly oppose the EPA’s misguided attempt to force the production of a vehicle mix that fails to meet the transportation needs or fit within the budgets of American families. For over 100 years, the automobile has given Americans the freedom to live and work where they choose. EPA’s proposed mandate goes too far too fast and will take that freedom away. To prevent this precipitous attempt to limit consumer choice, Congress should enact the provision included in the FY24 Interior-Environment Appropriations bill which prevents taxpayer funding from being used to finalize, implement, administer, or enforce the proposed rule titled “Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles” and published May 5, 2023 (88 Fed. Reg. 29184), or any substantially similar rule.

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