EPA proposes auto pollution limits to aggressively boost electric vehicle sales

Wednesday’s proposal by the U.S. Environmental Protection Agency to reduce tailpipe emissions could see 67% of new U.S. vehicles be all-electric. This is the most aggressive climate regulation in America.

These proposed limits will surpass President Joe Biden’s prior commitment to see EVs account for roughly half of all cars sold by 2030. They also accelerate the country’s transition to clean energy. These limits would significantly reduce climate-changing emissions in the transportation sector, which is the largest source of U.S. green gases.

According to the Kelley Blue Book, EV sales accounted only for 5.8% of the country’s 13.8 million new cars sold last year. This is an increase from 3.1% in the previous year. The United States is the third largest market for electric vehicles in the world, after Europe and China.

These limits don’t mandate a certain amount of EV sales per year, but instead set pollution standards for cars. This would make it more difficult for the auto industry not to sell more EVs to meet the requirements. The standards will prevent nearly 10 billion tonnes of carbon dioxide from 2055 according to the agency, which is more than twice as much as the U.S. total carbon emissions for 2022.

Ad

The proposed limits will be announced by Michael Regan, EPA Administrator, later today at Washington agency headquarters. These limits will be available for public comment and review. They will likely face legal challenges.

Regan stated that the proposal was ambitious during Tuesday’s briefing with reporters. “This proposal seeks a variety of ways to reach these goals, and we plan to strategically involve all our stakeholders.”

Biden’s administration would be well served if it immediately replaced gas-burning cars with all-electric models. This would allow the United States to meet its pledge to reduce greenhouse gas emissions by at minimum 50% by the end the decade. It also aim to reach net zero emissions by 2050.

EPA stated that EVs could be responsible for 67% and 46% respectively of new light-duty vehicle sales, depending on how manufacturers comply with the standards.

Automakers would face many challenges if the limits are implemented.

Automobile companies have already invested billions in battery technology and factories to support EVs. However, rapid adoption of EV technology will require more reliable and widespread charging infrastructures and more materials for EV batteries.

Alliance for Automotive Innovation, a trade group representing major automakers, stated in a memo that the proposed regulation by the EPA “requires a massive 100-year change in the U.S. industry base and the way Americans drive.”

According to the group, charging stations must be more reliable and widespread, EVs need to be more affordable, and there needs to be a national critical mineral supply chain.

Consumer opposition to the Biden administration’s attempts to increase EV sales may also be faced by consumers who will eventually need to be able and willing to purchase EVs.

According to Kelley Blue Book estimates new electric vehicles cost on average more than $58,000. This is well over the industry average of less than $46,000.

Tax credits, which were passed by the Inflation Reduction Act last year, provide a purchase incentive up to $7500 for car buyers to encourage EV adoption and affordability. New Treasury Department requirements mean that fewer EVs will be eligible to receive the full credit starting April 18.

This week’s poll found that almost half of Americans think it’s unlikely that they will purchase an EV for their next vehicle. They cite the low availability of charging options and high costs as the main barriers to electric vehicles. Only 35% support stricter emissions standards to encourage EV sales.

Biden’s administration set an earlier goal of putting at least 500,000 electric vehicle charging stations on American roads by 2030. It also announced a series of initiatives to make that happen, including commitments by companies such as Tesla, General Motors and Ford that they build and maintain charging networks. Experts still believe that millions of electric vehicle charging station are required.

The White House also has $5 billion in the 2021 bipartisan infrastructure package set aside to assist states with the construction of an EV charging station network along designated alternative fuel corridors within the national highway system.