Biden proposes strict auto emissions rules meant to boost EVs to two-thirds of sales

The Biden administration has suggested new auto emissions regulations aiming to accelerate America’s electric vehicle transition. The proposal is intended to make up to 67% of all new vehicles sold by 2032 electric vehicles. The proposed regulations will apply to passenger vehicles from 2027 through 2032. It does not impose targets on automakers regarding electric vehicle sales. However, it limits the amount of emissions to be generated by each company’s total fleet of sold cars, which, in essence, puts restrictions on the sales of internal combustion engine-powered vehicles. The most modest option of the proposed plan calls for electric vehicles comprising at least 54% of new car sales in the US by 2030, an increase of 4% from the administration’s existing target. In 2022, EVs constituted only 5.8% of new U.S. vehicle sales.

The proposal was based on a directive from President Joe Biden’s August 2021 executive order under the Clean Air Act. The transportation sector generates the highest percentage of greenhouse gas emissions in the United States, accounting for 27% of greenhouse gas emissions as of 2020. The suggested guidance from the Biden administration comprises four emissions-limiting possibilities for the EPA to select from after a public comment period, giving some room for flexibility for the EPA in adopting the proposed guidance. It is projected that the regulation will not be finalized until next year.

The auto industry is anticipated to oppose the proposal. The Alliance for Automotive Innovation released a memo that noted the difficulties of transitioning to electrifying fleets and achieving net-zero carbon technology completely. The California air regulators voted last year to mandate 100% zero-emissions vehicle sales by 2035. Such standards have also been put in place by a few states, including New York and Virginia.

The Biden administration pointed to the recent rise in EV sales and public charging facilities in its preview of the proposal. Since Biden took office, EV sales have tripled, and public charging has risen by 40%, officials stated. EPA Administrator Michael Regan praised the administration’s proposal, saying that it was delivering on the Biden-Harris administration’s pledge to protect people and the planet by reducing harmful air and climate pollution while still ensuring substantial economic advantages, such as reduced fuel and maintenance costs for families.

The auto industry’s capability of meeting these ambitious objectives, however, is a significant question mark. AAI stated in its memo that the issue is not whether it is feasible but how quickly it can be done, which will be determined by the appropriate policies and market conditions to achieve the objective of a net-zero carbon automotive future.