In July of 2021, Governor Tim Walz along with the Minnesota Pollution Control Agency announced new clean car standards for Minnesota that emphasized reduced carbon emissions, creating “good-paying jobs”, boosts to Minnesota’s manufacturing industry, and increasing the choices Minnesotans have in purchasing cars.
Minnesota was the 15th state to adopt clean car standards.
“Today, as Minnesota becomes a clean cars state, we’re creating jobs across every corner of the state, we’re giving Minnesotans more choices at their local car dealer, we’re saving Minnesotans money, and we’re reducing greenhouse gas emissions and protecting our environment for future generations,” said Governor Walz.
The Minnesota Automobile Dealers Association filed suit last year, but it was dismissed by a federal judge, saying the association filed too soon and that the initiatives hadn’t even been adopted yet.
Now they’ve filed another suit against the Minnesota Pollution Control Agency, and the association President Scott Lambert told WCCO political analyst Blois Olson about why they’re objecting to the new standards.
Minnesota’s new standards are part of the state’s climate change initiative. The model in Minnesota follows California’s standards but Lambert says it’s too much, too fast for the dealers.
“California is the only state in the nation that can set different rules on how cars are built and sold, other than the federal rules,” Lambert told Olson in an interview that airs on Sunday Take at 9:00 a.m. on WCCO Radio.
“There's only two standards in the country. California, and the federal rules, and the governor has opted to be in the California rules.”
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With gas prices spiking at $5 nationally, and just below that in Minnesota. There is no sign gas prices are going to come down anytime soon and consumers are looking for cleaner, more efficient cars along with electric vehicles. They're surging in popularity nationwide.
There is still a much higher demand for gas powered cars and trucks according to the number of sales both in Minnesota and across the country. Lambert says there is definitely a major investment in EV automobiles by the manufacturers and that is the wave of the future. But the standards set in California don’t match the demand in Minnesota at this time.
“The dealers are all in for electric vehicles,” explains Lambert. “We're making huge investments in our businesses to be able to sell and service electric vehicles. We understand that that's part of the future and we're ready for it. If people want to buy these we're getting ready to sell them. Demand is very low in Minnesota. It has been historically. That might be growing, we'll see. Gas prices are certainly a part of that mix, but what the California car standards does is interrupt the market.”
Lambert adds that the standards are an artificial supply mandate and that hurts the industry.
“It forces dealers to take an excess supply of electric vehicles and culminates in a complete ban on gas powered vehicles by 2034,” Lambert told WCCO. “So, Minnesotans right now buy pure electric vehicles at a rate of 2% a year. Under the California standards by 2024, model year 2025, the dealers will have to purchase 26% electric vehicles, and we buy those from the manufacturers. Then we have to find the market. So we're going to have an excess supply on our lots.”
Lambert also added that Minnesota has put a lot of investment towards biofuels which he says are another option for reducing emissions.
“This state has spent three decades building up a biofuel standard,” Lambert says. “And promoting ethanol and promoting biofuels and the environmental benefit of all that. This runs completely contrary to all of that.”
As of February, 2021 nearly 19,000 electric vehicles were registered in the State of Minnesota. That makes up less than 1% of the total vehicles in the state according to the Department of Transportation. Those numbers are increasing and new clean car rules should accelerate that pace. Other states that have adopted these standards have seen significant growth in EV sales.
There has been relatively limited availability for purchasing electric vehicles in Minnesota compared to other states. One of the goals of the new clean car rules implemented by Minnesota is to increase those options for buyers.
Lambert said their lawsuit should see hearings by the fall of this year.
You can hear the full interview with WCCO's Blois Olson and Scott Lambert on Sunday Take at 9:00 a.m. on News Talk 830 WCCO, free on the Audacy App, or anytime on demand here.
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