Hearing Wrap Up: Radical Sweeping Green EPA Regulations Leave Americans with Higher Costs, Fewer Choices, Less Reliable Vehicles - United States House Committee on Oversight and Accountability

EPA should not be operating outside its rulemaking authority

WASHINGTON—Today, the Economic Growth, Energy Policy, and Regulatory Affairs Subcommittee held a hearing titled “Clearing the Air: Examining the Environmental Protection Agency’s Proposed Emissions Standards” to bring transparency to the Environmental Protection Agency’s (EPA) new proposed vehicle emissions standards which constitute a radical shift in the automotive industry and force more electric vehicles (EVs) on America’s roads. Members warned that Americans pay the price for these sweeping green regulations through less consumer choice and the burden of higher costs.

Key Takeaways:

The EPA’s stricter emissions standards place burdens on producers, manufacturers, and consumers and could require that electric vehicles compromise 67 percent of all new car sales by 2032. Electric vehicle (EV) sales would have to increase elevenfold in just ten years to achieve this timeline.

Joseph Goffman, Principal Deputy Assistant Administrator at EPA’s Office of Air and Radiation (OAR) testified during the hearing and did not have answers to questions and concerns from members regarding the impact of regulations on higher consumer costs.

A rapid adoption of new EPA standards poses risks to the already strained U.S. power grid and supply chain.

After passing a proposal that would ban the sale of gas-powered vehicles by 2025, the state of California asked residents not to charge their EVs at certain times to not overload the grid.
The Oversight Committee is requesting more information to understand how common this scenario could be around country if the EPA’s EV rules and Clean Power Plan 2.0 are finalized.

The EPA should not be operating outside its rulemaking authority.

Less than a year after the Supreme Court’s landmark decision in West Virginia v. EPA, the EPA is once again using Clean Air Act provisions to force a radical transformation of major sectors of the economy.
The EPA must be responsive to congressional oversight to ensure accountability and transparency for the American people.

Member Highlights:

Subcommittee Chairman Pat Fallon (R-Texas) asserted that the EPA failed to attend the subcommittee’s first call to appear for a hearing on this topic in May. Rep. Fallon reiterated that agencies must be responsive to congressional oversight to ensure accountability.

Rep. Fallon: “Were you initially responsible to decline an invitation before the committee, or did another EPA official make that decision for you?”

Mr. Goffman: “I participated in the decision.”

Rep. Fallon discussed how the EPA should not be operating outside its rulemaking authority, as reaffirmed by the Supreme Court.

Rep. Fallon: “Did [SCOTUS] rule [in West Virginia v. EPA] that the EPA acted within its statutory authority, or did they rule that the EPA overstepped their authority?”

Mr. Goffman: “The latter.”

Rep. Fallon: “The latter. They overstepped their authority.”

Rep. Fallon also requested that Mr. Goffman commit to providing documents related to the Clean Power Act to ensure the safety of the U.S. power grid.

Rep. Fallon: “Can you commit to providing the committee with the communications and documents between the EPA and [Federal Energy Regulatory Commission] to ensure the safety and soundness of the power grid should this proposal be finalized?”

Mr. Goffman: “Yes.”

Rep. Chuck Edwards (R-N.C.) asked Mr. Goffman what the EPA is doing to address affordability for manufacturers and consumers. Mr. Goffman responded that with lead time, the EPA expects the auto industry to work to lower prices. However, the EPA is only providing for each EV rule a notice of 60 days for public comment.

Rep. Edwards: “EVs are much more expensive than gas powered vehicles. How do EPA’s rules impact vehicle affordability for families?”

Mr. Goffman: “Among other things, we are working with the auto industry itself. Many companies have already made a significant commitment to marketing EVs. We’re learning from them about what they’re doing to address affordability and what our rules need to do in order to support that.”

Mr. Goffman continued: “From the agency’s perspective what we’re learning is that we have to understand what they’re doing so that these standards are structured in the same way.”

Rep. Lauren Boebert (R-Colo.) pointed out that EVs are already more expensive than traditional combustion engine vehicles and warned that EVs are not economically feasible for most hardworking Americans living paycheck to paycheck.

Rep. Boebert: “What is the average price of a new combustion engine vehicle compared to the average price of a new electric vehicle?”

Mr. Goffman: “I don’t know the exact dollars. I know that today, EVs may be more expensive.”

Rep. Boebert: “The average price of a traditional internal combustion engine was $45,600, while the average price of an electric vehicle was $61,800. If these unfavorable rules are finalized, your own estimates that I’ve seen suggest 67 percent of all new cars sold in the U.S. will need to be fully electric by 2032. Now, how much did the average price of an electric vehicle increase by last year?”

Mr. Goffman: “I don’t know.”

Rep. Boebert: “It’s 22 percent. From May 2022 to May 2023, it’s increased 22 percent. By your own estimates, the technological cost of this proposal could reach 280 billion dollars. That’s increasing manufacturing costs by $1,200 per vehicle.”

Rep. Boebert continued: “How much does an electric vehicle battery cost to replace?”

Mr. Goffman: “I don’t know offhand, but you’re putting your finger on important issues, which is exactly why the strategy reflected in these rules is to give industry years of lead time to address these issues.”

Rep. Boebert: “Well, you’re regulating an industry out of existence here and we’re seeing that it’s less reliable.”

Watch the full hearing here.

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