But unlike last year's proposed rules, automakers would not have to significantly increase sales of electric vehicles (EVs) until 2030 or later. The schedule delay reflects election-year concessions by labor unions, a key Democratic constituency, and has raised concerns about a rapid transition toward unions. EV.
Another change from this proposal is that automakers could follow suit by increasing sales of plug-in hybrid vehicles in addition to fully electric vehicles. Plug-in hybrids have recently proven to be more popular among U.S. consumers, in part due to concerns about a lack of public charging infrastructure.
The final rule will also prevent 7.2 billion tons of carbon emissions from entering the atmosphere through 2055, according to the EPA. It will also reduce fine particulate matter and nitrogen oxides, preventing up to 2,500 premature deaths from air pollution each year starting in 2055, the agency said.
“Our final rule will provide pollution reductions equal to or greater than those we established in our proposal,” Environmental Protection Agency Administrator Michael Regan said in a conference call with reporters Tuesday, previewing the announcement. mentioned in. “These final standards will also reduce some of the most serious pollutants that impact public health.”
Republican-led states and fossil fuel companies are likely to challenge the rule in court. But the Alliance for Automotive Innovation, an industry group whose members include Ford, General Motors, Stellantis and Toyota, praised the EPA's decision to postpone increasingly stringent EV requirements until after 2030.
“We made the right decision to slow the pace of EV adoption in 2027, 2028, 2029 and 2030,” John Bozzella, president and CEO of the alliance, said in a statement. Ta. “…These adjusted EV targets, while still far-fetched, should give the market and supply chain a chance to catch up.”
U.S. EV sales have been sluggish in recent months. Kelley Blue Book estimates that U.S. EV sales rose 40% year over year in the fourth quarter of 2023, slowing from a 49% increase in the third quarter and a 52% increase in the second quarter.
“The U.S. EV market is still growing, but not as fast,” analysts at Kelley Blue Book said.
But Albert Gore, executive director of the Zero Emission Transportation Association and son of former Vice President Al Gore, said other numbers paint a more encouraging picture. He noted that a record 1.2 million EVs were sold in the U.S. last year, and EV market share rose from 5.9% in 2022 to 7.6% in 2023.
“Whether or not we're talking about an actual slowdown, the trend line for EVs has been tremendous growth over the past few years,” Gore said.
The price of EVs has also fallen rapidly, and they are now almost as cheap as gasoline cars. The average price difference last month was $5,000, according to Cox Automotive data.
Still, recent sales slumps have led some automakers to scale back their EV plans, with Ford cutting production of its much-hyped F-150 Lightning electric pickup truck. Many automakers are now pivoting to better-selling plug-in hybrids, a compromise between the internal combustion engines of the past and the batteries of the future.
Wednesday's rule comes after a dispute between the United Auto Workers union and the Biden administration over whether and how the transition to EVs would benefit workers.
In September, the UAW launched a historic strike against Detroit's three largest automakers: Ford, General Motors, and Stellantis. Workers warned that the rise of EVs could lead to the loss of high-paying jobs in the auto industry, as many EV factories are being built in southern states that are not union-friendly.
Despite these warnings, the EPA released an ambitious proposed rule last April. It calls for 67% of new passenger cars and light trucks sold to be electric vehicles by 2032. Weeks later, UAW President Sean Fein wrote that the union was withholding support for Biden's re-election campaign, citing “concerns regarding the transition to electric vehicles.” ”
But after the EPA indicated it would ease deadlines for the final rule, unions reversed course and rallied around Biden. The UAW endorsed the president at the annual legislative session in January, and Fein attended Biden's State of the Union address this month.
According to the EPA, automakers could comply with the final rule by making 67% of new car sales in 2032 EVs. However, officials said the requirement could be met by making 56% all-electric vehicles and 13% plug-in hybrid vehicles.
Former Republican presidential candidate Donald Trump has repeatedly criticized Biden's EV goals, calling Fein a “drug.” He falsely claimed that EVs can't travel far on a single charge and promised to repeal the EPA rule on the second day of the second term.
On Monday, President Trump sought to defend his comments over the weekend that there would be “bloodshed” if he loses in November, insisting he was only referring to bloodshed in the auto sector. “Just mentioning,” he wrote on his own social media platform. [EV] Biden said he is allowing imports. “It’s killing the auto industry.”
Manish Bapna, president and CEO of the NRDC Action Fund, the political arm of the Natural Resources Defense Council, criticized President Trump's anti-EV comments.
“The industry is betting its future on electric vehicles, drivers are buying them in record numbers, and last fall's UAW agreement provides solid benefits for workers,” Bapna said in an email. said. “Biden has a strategy to support that change. Trump wants to reverse it.”
The fossil fuel industry is stepping up its opposition to EPA rules that could crimp demand for petroleum products. The American Fuel and Petrochemical Manufacturers (AFPM), an industry group, has launched a seven-figure campaign against what it calls a de facto “gasoline car ban.” The campaign includes ads in battleground states warning that the rules will limit consumer choice.
“Indeed, the administration is calling these regulations 'standards' rather than 'bans' or 'mandates,'” AFPM President and CEO Chet Thompson said on a call with reporters this month. mentioned in. “But they did it because they knew how unpopular prohibition would be with Americans.”
AFPM's Members include fossil fuel giants such as ExxonMobil, Chevron, Marathon Petroleum, and Valero Energy. In 2018, Marathon Petroleum, the nation's largest refiner, waged a secret campaign to roll back President Barack Obama's auto emissions standards.
The American Petroleum Institute, the oil industry's largest lobbying group, has hinted it plans to sue over the standards set by the Biden administration.
“We're going to do everything we can to stop this rule,” Mike Somers, the institute's CEO, said in an interview Wednesday at an energy conference in Houston. Ta.
Although the EPA's rules do not actually ban internal combustion engine vehicles, California regulators aim to end sales of new gasoline-powered vehicles statewide by 2035. In the past, more than a dozen other states have chosen to follow California's stricter tailpipe pollution regulations. .
The California Air Resources Board announced Tuesday the deal with Stellantis, which owns the Jeep and Ram brands. Under the agreement, Stellantis agreed to comply with California's EV sales requirements, even if blocked by the courts or a potential second Trump administration.
Automakers have previously slammed these requirements as giving unfair advantages to rivals. But on Tuesday, Stellantis CEO Carlos Tavares said the deal was a “win-win solution” that would avoid 10 million to 12 million tonnes of greenhouse gas emissions by 2030. Stated.
California Gov. Gavin Newsom (D) said in a statement: “The world's largest and most influential companies understand that this is how we can work together to fight climate change.” said.
