Changes to Biden’s Plan to Cut Tailpipe Emissions
Proposed Easing of Yearly Requirements
The Biden administration is planning to ease proposed yearly requirements through 2030 of its sweeping plan to aggressively cut tailpipe emissions and ramp up electric vehicle sales, according to two sources familiar with the matter. This move comes in response to concerns raised by automakers and the United Auto Workers.
Automakers’ Concerns
Automakers and the United Auto Workers had urged the Biden administration to slow the proposed ramp-up in EV sales, citing concerns that EV technology is still too costly for many mainstream U.S. consumers. They also emphasized the need for more time to develop the charging infrastructure to support electric vehicles.
Revised Final Regulation
Under the revised final regulation expected to be made public as soon as next month, the Environmental Protection Agency (EPA) will slow the pace of its proposed yearly emissions requirements through 2030. The new pace is expected to result in EVs accounting for less than 60% of total vehicles produced by 2030, the sources said.
Industry Response
The Alliance for Automotive Innovation (AAI), a trade group representing major automakers, has been vocal about its concerns regarding the initial EPA proposal. AAI CEO John Bozzella emphasized the need for market and supply chains to catch up, maintaining a customer’s ability to choose, and allowing more public charging infrastructure to come online.
Additional Concerns
The EPA is also expected to address other concerns raised by automakers, including a proposal to drastically reduce particulate matter from gas-powered vehicles and the Energy Department’s proposal to significantly revise how it calculates the petroleum-equivalent fuel economy rating for EVs in the Transportation Department’s Corporate Average Fuel Economy program.
Next Steps
The Energy Department sent its revised proposal for final rules to the White House for review on Feb. 9, with the Transportation Department’s separate proposal to boost CAFE requirements expected later this spring.
It’s clear that the Biden administration is facing significant challenges in balancing the aggressive push for electric vehicles with the concerns of automakers and industry stakeholders. The next few years will be critical for the EV market as it navigates these complex regulatory changes.