WASHINGTON – Republican U.S. Sen. Lindsey Graham and Democratic members of the U.S. Senate Budget Committee discussed Wednesday ways to boost U.S. production of electric vehicles to make it more globally competitive.
Senator Sheldon Whitehouse of Rhode Island, the Democratic chairman of the committee, opened the hearing Wednesday by calling electric vehicle production an “economic, national security and climate imperative.”
Whitehouse highlighted the growing global electric vehicle market, noting that by 2023, 20% of vehicles sold all over the world were electric.
“We want to be part of this action,” Whitehouse said.
Graham, a South Carolina Republican, requested the hearing. He repeatedly pointed to the importance of the auto industry to the state. South Carolina is a country leader in vehicle assembly and the nation’s largest exporter of tires, according to the state Department of Commerce.
Graham said the future of vehicle manufacturing lies in electric vehicles and called for policies to remain competitive in the global automotive market.
His position was different from that of most members of his party.
Republicans have resonant opposition to increasing production of electric vehicles and many oppose President Joe Biden’s decision goal that 50% of vehicle sales will be electric by 2030. Former President Donald Trump opposes Biden’s support for electric vehicles and said ruin economies of car producing countries.
But Graham, a Trump ally and staunch conservative lawmaker, has supported the idea of making electric vehicles in the U.S. and sought to bolster American infrastructure.
“So the bottom line is: This is coming whether we like it or not,” Graham said. “And I think there’s some silver lining to that, honestly.”
Deformation on the mesh
During the hearing, several lawmakers expressed concerns about whether the power grid will be able to handle the increased demand for energy from charging electric vehicles.
Graham raised the issue of the energy source needed to power a larger fleet of electric cars.
“Grid demand will go through the roof” if half of the cars in exploit are electric, he said. “How can you generate enough energy to accommodate electric vehicles?”
Jesse Jenkins, a professor of engineering and energy systems at Princeton University, said that by 2035, electric vehicles will consume 17% of the current total electricity in the U.S.
“To put it another way, by 2035, electric vehicles will use almost as much electricity as the entire fleet of nuclear power plants or all non-hydro renewables combined today,” Jenkins said.
Britta Gross, director of transportation at the Electric Power Research Institute, said the strain on the grid from electric vehicles can be minimized by charging them during off-peak hours.
Energy demand is typically highest in the morning and evening. Charging vehicles at night, when demand is low, “can help minimize new grid investment and provide a low-cost transformation,” she said.
Debate in China
Another topic of lively discussion during Wednesday’s hearing was international competition.
Senator Debbie Stabenow, a Democrat from Michigan, a state with a vast auto industry, expressed concerns about the United States’ ability to compete with China, which tips world leader in electric vehicle production and has allocated government funds for subsidies and tax breaks to promote the development of electric cars.
“There are no equal opportunities,” Stabenow said. “Specifically, China is coming for us.”
David Schwietert, director of government affairs and policy at the Alliance For Automotive Innovation, told the committee that Congress must provide incentives for manufacturers to “build resilience” to future changes in electric vehicle production.
“We need to look beyond just five or 10 years,” Schwietert said. “We need to make sure that policies are in place to protect the United States, not just tomorrow, but for the long term.”
Graham also pressed witnesses to explain China’s position in the global electric vehicle market, asking Maureen Hinman, co-founder and president of the Silverado Policy Accelerator, a bipartisan economic policy institute, whether China’s dominance in the market is “irreversible.”
“Absolutely not,” Hinman said. “I think the U.S. and its allies and friends, if we act quickly to create agile, responsive, and coordinated policy, we could flip the script and get the global economy back on track.”
Republican Party Skepticism
Not all Republicans on the committee were as sympathetic to the electric vehicle conversation as Graham.
Senator Ron Johnson, a Republican from Wisconsin, said he is not opposed to electric vehicles and that he owns a plug-in hybrid car, but that the government should not spend money to encourage production and ownership of the vehicles.
“Why do we need government subsidies?” Johnson asked witnesses. “I would say no.”
“Let the market dictate the pace of this innovation. Stop subsidizing it,” he said.
Senator John Kennedy of Louisiana also pressed witnesses on the necessity of subsidies, repeatedly asking “if they’re so great, why do we have to pay people to buy them?”
Kennedy speculated that many Americans need to be encouraged to buy electric vehicles because they are more high-priced to run. The median household income in Louisiana is $55,000 a year, which is below the national median, he noted.
AND test Research by the Natural Resources Defense Council has shown that while the initial cost of purchasing an electric car is slightly $3,000 less than that of a gasoline-powered car, in the long run it costs less to operate and maintain.
