Dive Brief:
- The Biden administration on Wednesday approved new vehicle emissions standards for light- and medium-duty vehicles, according to an Environmental Protection Agency press release.
- By 2032, automakers must reduce the greenhouse gas emissions from light-duty vehicles by almost 50% and medium-duty vehicles by 44% compared with 2026.
- The EPA’s final rule allows automakers to meet the targets using a range of powertrain technologies, including hybrids, plug-in hybrids and battery-electric vehicles.
Dive Insight:
The new rules are part of the Biden administration’s efforts to lower climate pollution and encourage the transition to zero-emission vehicles, especially EVs.
The agency estimates that EVs will account for 30% to 56% of light-duty vehicle sales from model years 2030 to 2032 due, in part, to the stricter emissions standards, according to an EPA fact sheet. Likewise, EVs will make up 20% to 32% of medium-duty vehicle sales from model years 2030 to 2032.
The EPA had initially proposed more aggressive emission reductions from 2027 to 2031. However, the delayed timeline comes after automakers and the United Auto Workers union lobbied against it, arguing that the Biden administration had overestimated EV sales growth and been overly optimistic about decreasing battery costs.
The Alliance for Automotive Innovation, an industry group representing over 40 automakers, called the original proposal “a de facto battery electric vehicle mandate” in its public comments. Last year, vehicle manufacturers and the UAW asked the EPA for a less ambitious timeline.
The final rule steadily tightens the requirements, giving automakers more time to ramp up EV sales. However, it doesn’t change the overall timeline for emissions reductions.
“EPA is finalizing the same standard proposed for MY 2032 while allowing additional time for the auto sector to scale up clean vehicle manufacturing supply chains in the first three years covered by the rule,” according to the press release.
The new timeline is a welcome relief for automakers navigating the EV transition amid slowing demand.
“Moderating the pace of EV adoption in 2027, 2028, 2029 and 2030 was the right call because it prioritizes more reasonable electrification targets in the next few (very critical) years of the EV transition,” said John Bozzella, president and CEO of the Alliance for Automotive Innovation, in a statement. “It buys some time for more public charging to come online, and the industrial incentives and policies of the Inflation Reduction Act to do their thing.”
The UAW said the additional flexibility is also a win for autoworkers.
“The EPA has made significant progress on its final greenhouse gas emissions rule for light-duty vehicles,” the UAW said in a statement. “By taking seriously the concerns of workers and communities, the EPA has come a long way to create a more feasible emissions rule that protects workers building ICE vehicles, while providing a path forward for automakers to implement the full range of automotive technologies to reduce emissions.”
In related news, the Department of Energy approved a final rule on Tuesday that slowly reduces EVs’ fuel economy equivalent rating by about 65% by 2030, giving vehicle manufacturers more time to comply with stricter fuel economy requirements due later this year.
