U.S. President Joe Biden's administration is reportedly planning to relax the proposed annual requirements until 2030 in its ambitious plan to reduce tailpipe emissions and boost electric vehicle (EV) sales.
Sources suggest that automakers and the United Auto Workers (UAW) urged the administration to slow down the proposed increase in EV sales, citing the current high costs of EV technology for many mainstream U.S. consumers and the need for more time to develop charging infrastructure.
In April 2023, the Environmental Protection Agency (EPA) proposed a 56% reduction in new vehicle emissions by 2032.
The initial proposal aimed for EVs to constitute 60% of new vehicle production by 2030 and 67% by 2032. However, the revised final regulation, expected to be released next month, suggests a slowdown in the proposed yearly emissions requirements through 2030, resulting in EVs accounting for less than 60% of total vehicles produced by 2030.
The UAW and the Alliance for Automotive Innovation (AAI), representing major automakers, have advocated for a more gradual increase in stringency over a greater period to protect auto jobs.
AAI CEO John Bozzella emphasized the importance of letting the market and supply chains catch up, maintaining consumer choice, and allowing for the impact of industrial credits and the Inflation Reduction Act.
The EPA's plan is currently under interagency review, with a commitment to finalizing a rule that achieves pollution reduction, economic benefits, and is readily achievable. White House climate adviser Ali Zaidi highlighted the U.S.'s commitment to lead the global auto sector through smart investments and standards.
The Alliance for Automotive Innovation recently discussed the proposal with the White House and EPA, while Tesla officials had a separate meeting on Feb. 9.
The EPA is expected to address other concerns raised by automakers, including a proposal to reduce particulate matter from gas-powered vehicles and the elimination of "enrichment" strategies.
Automakers have also expressed concerns about the Energy Department's proposal to revise how it calculates the fuel economy rating for EVs, which could significantly increase fines for non-compliance.
The revised Energy Department proposal is under White House review, and the Transportation Department's separate proposal to enhance Corporate Average Fuel Economy requirements is expected later this spring.
Paraphrasing text from "Investing" all rights reserved by the original author.
