AFPM, API oppose US EPA’s proposed vehicle emission standards

HOUSTON (ICIS)–Oil and gas trade groups came out strongly against proposed new vehicle emissions standards from the US Environmental Protection Agency (EPA) that they say will “effectively ban gasoline and diesel vehicles,” while chemical and manufacturing trade groups stressed the importance of plastics in electronic vehicles (EVs).

The American Fuel & Petrochemical Manufacturers (AFPM) and the American Petroleum Institute (API) were adamant that the proposed standards would be bad for US consumers and give China an advantage in the race towards sustainability.

“This deeply flawed proposal is a major step toward a ban on the vehicles Americans rely on,” API president and CEO Mike Sommers said. “As proposed, this rule will hurt consumers with higher costs and greater reliance on unstable foreign supply chains.”

AFPM president and CEO Chet Thompson said the proposed standards, which he said will “effectively ban gasoline and diesel vehicles”, are bad for consumers, the environment, freedom of mobility and US national security.

“It’s unconscionable that the administration would propose this knowing full well that China controls 80% of global battery production capacity, and even with robust US investment to fortify our own electric grid and grow our battery supply chains by a magnitude of 10, we will not come close to overtaking China’s dominant position and will be left more dependent and financially beholden to them as a result,” Thompson said.

AFPM said it supports vehicles and transportation fuels continually moving toward greater efficiency and lower carbon intensity, which is possible through the deployment of carbon capture technology, renewable fuel expansion and more efficient refining processes.

“We also believe EPA’s choice to fixate on tailpipe emissions rather than full fuel and vehicle lifecycle is a huge error that will stymie investment and artificially cap the potential of carbon abatement for liquid fuels and vehicles on the road today,” Thompson said.

Chris Jahn, president and CEO of the American Chemistry Council (ACC), said it is important for the administration to remember that the chemicals industry will play a major role in the transition toward sustainability.

“As the administration rolls out its latest proposal, we remind them that they simply cannot deliver on this without the US business of chemistry,” Jahn said. “The products and technologies made possible by America’s chemical manufacturers and plastics makers are vital to achieving better vehicle fuel efficiency, reduced GHG emissions and any transition to EVs.”

He said that EV infrastructure, charging stations, batteries, battery housings, closures, encasements, connectors all rely on critical inputs made possible by chemical and plastics products.

“Plastics enable vehicles to go further on one charge, improve performance and help keep passengers safe,” Jahn said. “We strongly encourage the administration and Congress to pursue policies and regulations that will enable and promote the US chemical industry – not stifle it – so that it can continue to be a catalyst to addressing this issue and so many others.”

The National Association of Manufacturers (NAM) said manufacturing in America is cleaner and more sustainable than ever thanks in large part to a revolution in how energy is produced, used and recycled.

“Auto manufacturers have been making historic investments ensuring that zero emissions vehicles will have a growing place in America’s garages for the foreseeable future,” NAM said in a statement to ICIS. “However, this proposed regulation can add unnecessary costs into the manufacturing process and for consumers. The NAM looks forward to working with the administration to ensure vehicle standards meet consumer demand while keeping manufacturers in the US globally competitive.”

PROPOSED STANDARDS
The new proposed emissions standards for light-, medium-, and heavy-duty vehicles for model year (MY) 2027 and beyond would significantly reduce climate and other harmful air pollution, unlocking significant benefits for public health, especially in communities that have borne the greatest burden of poor air quality, the EPA said.

Proposed standards for light- and medium-duty vehicles considers a broad suite of available emission control technologies, and the standards are designed to allow manufacturers to meet the performance-based standards however works best for their vehicle fleets, the EPA said.

The EPA projects that for the industry, the standards are expected to drive widespread use of filters to reduce gasoline particulate matter emissions and spur greater deployment of technologies to reduce carbon dioxide (CO2) for gasoline-powered vehicles.

The new proposed emissions standards for heavy-duty vocational vehicles, such as delivery trucks, refuse haulers or dump trucks, public utility trucks, transit, shuttle, school buses, and trucks typically used to haul freight, would complement the pollutant standards for MY 2027 and beyond for heavy-duty vehicles that EPA finalized in December 2022 and represent the third phase of EPA’s Clean Trucks Plan.

The proposed standards could speed up the development of materials needed for EVs, which would benefit plastic and chemical producers as the auto industry would be forced to purchase new higher-margin materials.

Additional reporting by Al Greenwood