EXPLAINER: The impact of Joe Biden's new fuel economy rules - Alaska Highway News | Canada News Media
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EXPLAINER: The impact of Joe Biden's new fuel economy rules – Alaska Highway News

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DETROIT (AP) — President Joe Biden wants to erase Donald Trump’s rollback of automobile pollution and fuel economy standards.

He proposed new rules Thursday and unveiled a nonbinding deal with most automakers to have electric, plug-in hybrid or hydrogen-electric vehicles make up half of their U.S. sales by 2030.

The moves are part of Biden’s plan to fight climate change by persuading people to swap their gas-powered vehicles for those that run on electricity.

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WHAT WILL THE NEW STANDARDS DO?

They basically return pollution and gas mileage requirements close to those adopted when Barack Obama was president. The Obama standards required the fleet of new vehicles to average 5% in carbon dioxide emissions cuts every model year through 2025. Trump rolled that back to 1.5% per year and added another year to the rules. Biden’s plan requires 10% emissions reductions in 2023 and 5% every year after that through 2026. Trump’s standards ended with the fleet averaging about 29 mpg in real-world driving. The Biden rule should be close to the Obama mileage requirement, about 37 mpg. Consumer Reports calculates that the new standards will deliver only 75% of the emissions cuts from the original Obama standards because of delays caused by Trump and loopholes.

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WILL THEY HELP WITH CLIMATE CHANGE?

They should, although environmental groups say they don’t move fast enough to tackle an acute problem that has warmed oceans and spawned more powerful storms, wildfires and floods. They also complain that the standards don’t make up for increased emissions during the Trump years, and bemoan credits that will let automakers offset gas-guzzling vehicles. Some say there should be a plan to phase out gasoline passenger vehicles entirely by 2030. The EPA says over the years its proposal will save about 200 billion gallons of gasoline and cut about 2 billion metric tons of carbon pollution. That’s nearly three times the amount that autos emit in a year. If automakers sell more electric vehicles, that could cut emissions as well, although the precise benefit depends on the fuel used to generate electricity that charges them.

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WILL THE ELECTRIC VEHICLE DEAL BRING MORE CHOICES?

Maybe. The automaker agreements aren’t binding, so there’s no requirement to comply. But well before Biden was elected, automakers already were headed toward a similar sales goal, developing more EVs after seeing the success of global sales leader Tesla. The industry says it can meet the goals only if the government spends big on charging stations and incentives to get people to buy EVs, so Biden will play a big role in getting Congress to approve funding.

Ford, General Motors and Stellantis have promised fully electric pickup trucks, and automakers are starting to roll out electric SUVs in the heart the U.S. market. The consulting firm IHS Markit says there are only about 50 fully electric models on sale now in the U.S., a fraction of the roughly 350 models sold by all automakers. But it expects 130 EV models by 2026. Dave Cooke, senior vehicles analyst with the Union of Concerned Scientists, expects EVs to become available in all states because of the deal. At present, many are sold only on the coasts where there are state zero-emissions-vehicle requirements.

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WILL THIS BE THE END OF THIRSTY MUSCLE CARS OR GIANT SUVS?

Probably not. But since the standards come close to matching the Obama requirements, they could get tougher on big trucks and SUVs. That likely will force automakers to make electric or hybrid versions of their thirstier models, but it probably won’t cancel them. “I think they can do a lot with the same truck platform, and if you want the big SUV, you’ll have to get it in a hybrid or electric,” said Kristin Dziczek, senior vice president and policy analyst at the Center for Automotive Research, an industry think tank. And muscle cars are likely to be even faster when switched to electricity. In nearly all cases, electric vehicles have more instantaneous power than gasoline vehicles.

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WILL AN ELECTRIC VEHICLE COST MORE THAN A GAS CAR OR TRUCK?

Electric vehicles now cost $8,000 to $10,000 more than a combustion-engine vehicle, says the consulting firm Alix Partners. But automakers say the difference is narrowing as they sell more EVs and develop lower-cost batteries. Biden has proposed expanding tax credits and rebates for EV buyers. There’s now a $7,500 federal tax credit, but it’s capped when automakers reach 200,000 in EV sales. (GM and Tesla can no longer offer it). One bill in the Senate promoted by Biden would expand it to all automakers and offer up to $12,500 in tax credits for five years, making EVs more affordable.

Tom Krisher, The Associated Press

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Minimum wage to hire higher-paid temporary foreign workers set to increase

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OTTAWA – The federal government is expected to boost the minimum hourly wage that must be paid to temporary foreign workers in the high-wage stream as a way to encourage employers to hire more Canadian staff.

Under the current program’s high-wage labour market impact assessment (LMIA) stream, an employer must pay at least the median income in their province to qualify for a permit. A government official, who The Canadian Press is not naming because they are not authorized to speak publicly about the change, said Employment Minister Randy Boissonnault will announce Tuesday that the threshold will increase to 20 per cent above the provincial median hourly wage.

The change is scheduled to come into force on Nov. 8.

As with previous changes to the Temporary Foreign Worker program, the government’s goal is to encourage employers to hire more Canadian workers. The Liberal government has faced criticism for increasing the number of temporary residents allowed into Canada, which many have linked to housing shortages and a higher cost of living.

The program has also come under fire for allegations of mistreatment of workers.

A LMIA is required for an employer to hire a temporary foreign worker, and is used to demonstrate there aren’t enough Canadian workers to fill the positions they are filling.

In Ontario, the median hourly wage is $28.39 for the high-wage bracket, so once the change takes effect an employer will need to pay at least $34.07 per hour.

The government official estimates this change will affect up to 34,000 workers under the LMIA high-wage stream. Existing work permits will not be affected, but the official said the planned change will affect their renewals.

According to public data from Immigration, Refugees and Citizenship Canada, 183,820 temporary foreign worker permits became effective in 2023. That was up from 98,025 in 2019 — an 88 per cent increase.

The upcoming change is the latest in a series of moves to tighten eligibility rules in order to limit temporary residents, including international students and foreign workers. Those changes include imposing caps on the percentage of low-wage foreign workers in some sectors and ending permits in metropolitan areas with high unemployment rates.

Temporary foreign workers in the agriculture sector are not affected by past rule changes.

This report by The Canadian Press was first published Oct. 21, 2024.

— With files from Nojoud Al Mallees

The Canadian Press. All rights reserved.

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PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025

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OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.

However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.

The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.

Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.

The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.

The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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Statistics Canada says levels of food insecurity rose in 2022

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OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.

In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.

The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.

Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.

In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.

It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.

This report by The Canadian Press was first published Oct 16, 2024.

The Canadian Press. All rights reserved.

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