EPA Reviewing Vehicle Emission Standards, Potentially Impacting EV Push
WASHINGTON, March 12 (Reuters) – The U.S. Environmental Protection Agency announced on Wednesday it is initiating a review of the Biden administration’s vehicle emissions regulations, a move that could significantly alter the trajectory of electric vehicle (EV) adoption in the automotive industry. The agency’s actions also extend to heavy-duty truck emissions standards.
The EPA’s reconsideration follows previous steps by the Trump administration to loosen regulations aimed at promoting EVs, including rescinding a target for EVs to comprise at least 50% of new vehicles by 2030.
The EPA is reassessing its 2024 rules, which aimed to curtail passenger vehicle fleetwide tailpipe emissions by almost 50% by 2032 compared to projected 2027 levels. The EPA had previously estimated that between 35% and 56% of new vehicle sales between 2030 and 2032 would have to be electric to comply with the regulations, a target that garnered support from Ford Motor.
Furthermore, the agency is reconsidering a 2022 regulation designed to substantially curb smog- and soot-forming emissions from heavy-duty trucks, citing concerns about increased costs for truck manufacturers.
These 2022 standards were more stringent than prior regulations. While the agency initially projected the rule would prevent up to 2,900 premature deaths annually, reduce lost school days for children by 1.1 million, and provide $29 billion in annual net benefits, it is now reevaluating this impact.
In February, the EPA submitted for congressional review the Biden administration’s approval of California’s plan to end the sale of gasoline-only vehicles by 2035, but a government agency has since stated that the decision is not subject to review.
Separately, Congress is deliberating possible repeal of EV tax credits.
In January, Transportation Secretary Sean Duffy moved to rescind fuel economy standards issued under Biden which sought to drastically decrease fuel consumption for cars and trucks. He also froze funding for EV charging infrastructure to states.
The National Highway Traffic Safety Administration announced in June its plans to raise Corporate Average Fuel Economy (CAFE) requirements to approximately 50.4 miles per gallon (4.67 liters per 100 km) by 2031, up from the current 39.1 mpg for light-duty vehicles. Duffy also directed NHTSA to reconsider rules that would affect heavy-duty pickup trucks and vans through 2035.
NHTSA stated in June that the existing rule for passenger cars and trucks would reduce gasoline consumption by 64 billion gallons through 2050 and decrease emissions by 659 million metric tons. While recognizing that some vehicles might become more expensive to purchase, the agency estimates consumers would benefit from fuel cost savings, resulting in net benefits of $35.2 billion.
