Two trade organizations representing most fuel sold at retail in the United States want the Biden administration to be technology-neutral in its clean-energy policies and encourage private investment in alternative fuels.
NATSO, the trade association of America’s travel plaza and truck stop industry, and SIGMA, the organization representing the nation’s leading fuel marketers, issued a statement Tuesday calling the Biden administration’s proposed lower emissions and incentives for electric-vehicle (EV) purchases “irresponsible.” But FreeWire Technologies Inc., an EV charger maker, said the transition to electric transportation is inevitable.
EPA Emissions Target
The U.S. Environmental Protection Agency (EPA) has proposed an industrywide average target for light-duty vehicles of 82 grams per mile of carbon dioxide in model year 2032, which would result in a 13% annual reduction in carbon-dioxide emissions. This target is based on a fleet of 40% cars and 60% trucks, according to the EPA. The average passenger vehicle emits about 404 grams of CO2 per mile, the EPA said.
The emissions target dovetails with Biden’s goal of 500,000 electric chargers installed by 2030. EV charger company FreeWire Technologies said the transition to EV has begun. “It's an inevitability,” said LeRoy Fitzgerald, senior director of strategic sales at FreeWire Technologies Inc. in Newark, California. “It’s going to grow in the marketplace and it’s going to be significant.”
FreeWire has installed its chargers at a number of convenience-store chains, including Chevron, bp, Phillips 66, Parkland, Rotten Robbie and Loop Neighborhood Market. “Our focus is the Top 200 convenience stores,” he said.
Other Opportunities
But NATSO and SIGMA said the focus on electric vehicles overlooks other opportunities to lower the carbon footprint from transportation.
“Fuel retailers are actively investing in many technologies that reduce carbon emissions from transportation fuels. Some of these investments are profitable today, others won’t be profitable for many years. But they all reduce emissions and should be supported at a level that is commensurate with their relative climate benefits and commercial viability,” said David Fialkov, executive vice president of government affairs for both NATSO and SIGMA.
The associations accused the Biden administration of picking winners and losers using metrics untethered to emissions-reduction outcomes, such as favorable tax treatment for sustainable aviation fuel and proposals to award e-RIN credits to automakers. RINs, or Renewable Identification Numbers, are credits provided for each gallon-equivalent of renewable fuel produced, such as ethanol, biodiesel or compressed natural gas. An e-RIN pertains to electricity.
Charging Marketplace
“For light-duty vehicles, the administration’s current strategy does not sufficiently consider the needs of consumers. It is irresponsible for the administration to push automakers to transition to EVs so rapidly without any coherent vision for the charging marketplace that those cars will need to refuel,” Fialkov said.
Fitzgerald said FreeWire is doing its part to install chargers in less than 14 weeks from start to finish. “We’re seeing success even in urban locations. We’re seeing those who are able to, put in EV charging, because you’re seeing EV adoption in an area but there’s no place to charge,” he said.
The insufficient infrastructure for EV charging needs attention, Fialkov said. “Unless this glaring blindspot is addressed soon, the $7.5 billion dollars that the administration is distributing for EV charging grants will be squandered on unreliable technology in undesirable locations,” he said. “This doesn’t make consumers want to switch to an EV.”
Fitzgerald of FreeWire said many fleets are making the transition and more consumers are interested. “Everyone is going to have their preferences for what type of vehicles they’re going to drive. I think EVs are going to be part of that marketplace and they’re clearly going to be an increasing component of that. You can look at the fleets, a lot of fleets, they’re going to EV for a lot of reasons,” he said.
“In terms of the market rearing up and knowing what it wants, you can look at it different ways. EV adoption is at a higher rate than most people expected. You’re seeing higher growth and higher adoption than was previously anticipated by any number of firms. So I think that speaks for itself,” Fitzgerald said.
The early adopters in EV charging should be successful, he said. “First movers tend to get customer retention,” he said. But he acknowledged EV adoption is ahead of the charging network. “If you don’t have a charger, nobody’s going to drive,” he said.
Policy Suggestions
NATSO and SIGMA said the Biden administration also could do more to advance polices supporting private-sector investment in alternative fuels, such as:
- Subjecting sustainable aviation fuel (SAF) to a more rigorous greenhouse-gas modeling standard. “SAF requires more feedstock, higher energy inputs, and produces less emissions savings than biodiesel and renewable diesel. Because these fuels rely on the same limited feedstocks, a higher tax credit for SAF, without parity for other transportation fuels, encourages biofuel producers to make fewer gallons of emissions-reducing fuels than they otherwise would,” Fialkov said.
- Supporting public EV charging investments by allowing owners of direct current (DC) fast chargers to generate e-RINs by using feedstocks to produce the electricity. “Automakers have urged EPA to allow car makers to reap the benefit from e-RINs, even as their own research underscores the need for policies that support investment in public EV charging infrastructure,” Fialkov said.
- Creating a competitive marketplace for fast EV charging, with regulated utilities creating EV-specific rates that allow businesses to confidently invest in charging stations. “Unless charging-station operators can make money selling electricity to EV drivers, EV drivers will continue to have challenges finding attractive places to refuel. Grant money and stringent tailpipe emission standards cannot overcome that,” Fialkov said.
NATSO, which was founded in 1960, represents the travel plaza and truck-stop industry on legislative and regulatory matters. It provides education and supports efforts to improve the business climate for its members.
SIGMA represents about 260 independent chain retailers and marketers of motor fuel, along with wholesalers, fuel transporters and operators of bulk plants and terminals.
FreeWire Technologies, founded in 2014, provides ultrafast EV charging and energy management solutions for major companies, fleets, utility customers, retail locations and gas stations. Its BoostChargers include an integrated battery reducing the energy cost.