Letter to Governors: Reject EV Subsidy Pleas

AFPM has joined five other associations to call on the Governors of eight states to reject a recent plea from the Auto Alliance – the leading advocacy group for automakers – to increase subsidies and other incentives for electric vehicles (EVs) and zero-emission vehicles (ZEVs), further distorting a market that has failed to materialize despite already receiving generous handouts. In fact, in states like California and throughout the Northeast that have the most substantial subsidies, EVs and ZEVs still represent only about 1 percent of the cars on the road. Even more, these subsidies are predominantly going to higher-income individuals. In contrast, consumer demand for internal combustion engine vehicles (ICEVs) remains strong, with nearly 17 million sold last year, and a total domestic fleet of approximately 250 million light-duty vehicles that rely on petroleum fuel. These vehicles are supported by a highly integrated fuel supply chain that includes 150,000 gasoline stations, 141 refineries, 212,000 miles of liquid petroleum pipelines and nearly 1,300 terminals that supply US drivers with fuel. AFPM members, U.S. refiners, are not standing still. They’re upgrading their operations to produce cleaner fuels and meet federal, state and local fuel standards. In fact, substantial air quality benefits have occurred because of the investments in cleaner fuels that have enabled lower vehicle emissions. According to the EPA, new cars, trucks, SUVs, heavy-duty trucks and buses run about 99 cleaner than models produced in 1970. This progress has helped reduce U.S. air pollution by 73 percent, during a time in which vehicle miles traveled nearly tripled and the economy grew 253 percent. Going forward, these improvements are expected to continue. As we state in the letter, transportation policies that conflict with the will of the consumer and attempt to force changes in behavior should be considered with caution. We support the adoption of policies that focus on the consumer, strengthen our energy security, improve our standard of living and protect our environment. We urge our leaders to stand with us.