The Environmental Protection Agency (EPA) issued new rules on March 20 for automobiles aimed at cutting carbon emissions and boosting both hybrid and electric vehicles (EVs).
The new regulations amount to the toughest-ever limits on tailpipe emissions, part of the Biden administration’s bid to accelerate the manufacture and adoption of EVs.
This affects passenger vehicles, light-duty trucks, and medium-duty vehicles produced starting in 2027.
The regulations, according to the EPA, would cut 7.2 billion tons of carbon emissions through 2055 in addition to providing “nearly $100 billion of annual net benefits to society, including $13 billion of annual public health benefits due to improved air quality, and $62 billion in reduced annual fuel costs, and maintenance and repair costs for drivers.”
Green Agenda
“With transportation as the largest source of U.S. climate emissions, these strongest-ever pollution standards for cars solidify America’s leadership in building a clean transportation future and creating good-paying American jobs, all while advancing President Biden’s historic climate agenda,” he said.
“Under President Biden’s leadership, this Administration is pairing strong standards with historic investments to revitalize domestic manufacturing, strengthen domestic supply chains and create good-paying jobs.”
U.S. auto manufacturing gives drivers options—all while saving the planet, according to Ali Zaidi, White House national climate adviser.
“On factory floors across the nation, our autoworkers are making cars and trucks that give American drivers a choice—a way to get from point A to point B without having to fuel up at a gas station,” he said in a statement.
“From plug-in hybrids to fuel cells to fully electric, drivers have more choices today.
“Since 2021, sales of these vehicles have quadrupled and prices continue to come down.”
Environmental and automobile-related groups applauded the new rules.
“The EPA has made significant progress on its final greenhouse gas emissions rule for light-duty vehicles,” the United Automobile Workers union said in a statement.
“The future is electric. Automakers are committed to the EV transition—investing enormous amounts of capital and building cutting-edge battery electric vehicles, plug-in hybrids, traditional hybrids, and fuel cell vehicles that drive efficiency and convert petroleum miles to electric miles,” Alliance for Automotive Innovation President and CEO John Bozzella said in a statement.
‘Prohibitively Expensive’
However, not everyone celebrated the latest developments to deal with pollution.“At a time when millions of Americans are struggling with high costs and inflation, the Biden administration has finalized a regulation that will unequivocally eliminate most new gas cars and traditional hybrids from the U.S. market in less than a decade,” American Fuel & Petrochemical Manufacturers President and CEO Chet Thompson and American Petroleum Institute President and CEO Mike Sommers said in a joint statement.
“As much as the President and EPA claim to have ‘eased’ their approach, nothing could be further from the truth.
“This regulation will make new gas-powered vehicles unavailable or prohibitively expensive for most Americans. For them, this wildly unpopular policy is going to feel and function like a ban.”
With an average $40,000 price tag, they’re unaffordable for most consumers.
Mr. Thompson and Mr. Sommers said they are prepared to challenge the new regulations in court.
The government’s stated goal is to achieve net zero carbon emissions to combat climate change.
While the auto industry continues to ramp up EV production to compete against manufacturers such as Tesla, market observers say that acceptance of the technology needs to be faster to keep pace.
According to the June 2023 Cox Automotive survey, many consumers are still leery of purchasing an EV despite growing interest.
The 2023 “Path to EV Adoption: Consumer and Dealer Perspectives” study revealed a “lack of EV readiness among U.S. automotive dealers regarding sales and service,” according to Cox Automotive.
“As EV inventories continue to climb, dealers must bridge this gap.”
The survey polled 1,024 consumers and 152 dealers. And while consumer interest in purchasing an EV appears to be increasing, price remains the “top roadblock.”
In an October 2023 Car Gurus report, electric vehicle inventories increased by 506 percent from 2022 because of higher purchase prices despite generous tax breaks and government incentives.
On average, electric vehicles sat in the lot for 82 days compared with 64 days for traditional gasoline vehicles, according to Car Gurus. Another concern was the upfront cost of installing in-home chargers—$2,000 in some cases—and higher insurance costs.
