The Biden administration’s EV rule has been finalized, paving the way for a significant increase in the market share of electric vehicles (EVs) and hybrids. This rule, set in motion on Wednesday, is poised to revolutionize the new car market in the United States, marking a major shift towards cleaner and more sustainable transportation options.”
“Three years ago, I set an ambitious target: that half of all new cars and trucks sold in 2030 would be zero-emission. I brought together American automakers. I brought together American autoworkers. Together, we’ve made historic progress. Hundreds of new expanded factories across the country,” said President Joe Biden.
Under the new rule, it is projected that by 2032, 56% of new vehicles could be battery-electric, and an additional 13% could be plug-in hybrids. This would leave just 29% of cars being gas-powered, with the remaining 3% being other types of hybrids. This is a significant shift from last year when only 16% of new vehicle sales were electric and hybrid cars.
EPA Administrator Michael Regan told reporters, “The new standards will ensure pollution-emitting vehicles are cleaner while allowing companies to decide how to meet these standards sustainably and most effectively.”
This rule is a key component of the Biden administration’s climate agenda. The vehicles it regulates, including cars and other light-duty vehicles, currently account for about 17% of U.S. planet-warming emissions. The rule also applies to medium-duty vehicles, such as vans and pickup trucks.
However, the rule has not been without controversy. A proposed version last year faced opposition from Republicans, industry groups, and the auto workers union. In response to this criticism, the administration made some adjustments to the rule, which covers vehicle model years 2027 through 2032. These changes included slowing down the transition to EVs with less stringent requirements for some of the rule’s earlier years.
John Bozzella, president of the Alliance for Automotive Innovation, said, “These adjusted EV targets — still a stretch goal — should give the market and supply chains a chance to catch up. 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.”
For instance, under the proposed rule for model year 2029, 55% of vehicles were expected to be electric, and 45% were expected to be gas-powered. However, the new rule has gas-powered cars making up 49% of sales that year.
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Despite the opposition, President Biden has reiterated his commitment to autoworker jobs. In a written statement on the rule, he said, “Today, we’re setting new pollution standards for cars and trucks. U.S. workers will lead the world on autos making clean cars and trucks, each stamped ‘Made in America.’ You have my word.”
The rule is expected to prevent 7.2 billion tons of carbon dioxide emissions through 2055, which is about four times the emissions of the entire U.S. transportation sector in 2021. It is also projected to prevent up to 2,500 premature deaths and reduce the number of heart attacks due to reductions in pollution by 2055.
However, Republicans have vowed to try to undo the rule, with Sens. Pete Ricketts (R-Neb.) and Dan Sullivan (R-Alaska) calling the rule “delusional” and promising to introduce legislation to overturn it. Their efforts are unlikely to succeed, as such action requires either presidential approval or a two-thirds majority from Congress.
Alfredo Ortiz, the president and CEO of Job Creators Network (JCN), observed, “The Biden administration has blinked in the face of widespread opposition across the political spectrum to its draconian electric vehicle mandate. Never underestimate the power of the people to change bad policies.”
The oil industry lobby groups have also threatened to sue over the rule. Chet Thompson, CEO of the American Fuel & Petrochemical Manufacturers, and Mike Sommers, CEO of the American Petroleum Institute (API), said in a joint statement that they are prepared to challenge the rule in court.
Despite the opposition, the rule has received praise from the auto industry lobby, which appreciated the short-term slowing of the rules, saying it gave automakers more time to adjust. John Bozzella, president and CEO of the Alliance for Automotive Innovation, commended the moderation of the pace of EV adoption in the next few critical years of the EV transition.
The rule, issued by the Environmental Protection Agency (EPA), is not technically a mandate for electric vehicles or any specific vehicle technology. Instead, it sets pollution limits for automakers’ vehicle fleets. The standards are so stringent that they are unlikely to be met with improvements to gas-powered cars alone, meaning they are expected to shift the market toward electric or other low-carbon options.
The Biden administration’s EV rule marks a significant step towards a greener future. Despite facing opposition, the rule is set to transform the automotive industry and significantly reduce greenhouse gas emissions. The road ahead may be challenging, but the potential benefits for our planet make it a journey worth undertaking.