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EPA emissions limits to try and boost U.S. EV sales

by Associated Press   

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The proposed tailpipe pollution limits don't require a specific number of electric vehicles to be sold every year but instead mandate limits on greenhouse gas emissions.

The Biden administration is proposing stiff new automobile pollution limits that would require up to two-thirds of new vehicles sold in the U.S. to be electric by 2032, a nearly tenfold increase over current electric vehicle sales.

The proposed regulation, announced on Apr. 12 by the Environmental Protection Agency, would set tailpipe emissions limits for the 2027 through 2032 model years that are the strictest ever imposed — and call for far more new EV sales than the auto industry agreed to less than two years ago.

Once finalized, the plan would represent the strongest push yet toward a once almost unthinkable shift from gasoline-powered cars and trucks to battery-powered vehicles.

A look at what the EPA is proposing, how the plan serves President Joe Biden’s ambitious goal to cut America’s planet-warming greenhouse gas emissions in half by 2030, and whether the auto industry can meet the new EV targets:

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WHAT THE EPA IS PROPOSING:

The proposed tailpipe pollution limits don’t require a specific number of electric vehicles to be sold every year but instead mandate limits on greenhouse gas emissions. Depending on how automakers comply, the EPA projects that at least 60% of new passenger vehicles sold in the U.S. would be electric by 2030 and up to 67% by 2032.

For slightly larger, medium-duty trucks, the EPA projects 46% of new vehicle sales will be EVs in 2032.

EPA Administrator Michael Regan called the proposal “the strongest-ever federal pollution standards for both cars and trucks.”

The new rules “will accelerate our ongoing transition to a clean vehicle future, tackle the climate crisis head-on and improve air quality for communities all across the country,” Regan said at EPA headquarters. “This is historic news for our children, our climate and our future.”

WHAT THE AUTO INDUSTRY IS SAYING:

John Bozzella, CEO of the Alliance for Automotive Innovation, a trade group representing Ford, General Motors and other automakers, called the EPA proposal “aggressive by any measure” and wrote in a statement that it exceeds the Biden administration’s 50% electric vehicle sales target for 2030 announced less than two years ago.

Reaching half was always a “stretch goal,” contingent on manufacturing incentives and tax credits to make EVs more affordable, he wrote.

IS THE EPA PROPOSAL REALISTIC?

With electric vehicles accounting for just 7.2% of U.S. vehicle sales in the first quarter of this year, the industry has a long way to go to even approach the Biden administration’s targets. However, the percentage of EV sales is growing. Last year it was 5.8% of new vehicles sales.

Many auto industry analysts say it will be difficult for automakers to meet the projected sales percentage. The consulting firm LMC Automotive, for instance, said new EV sales could reach 49% in 2032 but are unlikely to go above that, citing high prices for EVs compared with gas-powered cars.

WHY THE TAILPIPE RULE IS IMPORTANT:

Transportation is the largest source of carbon emissions in the U.S., accounting for about 27% of greenhouse gas emissions in the U.S. in 2020, according to the EPA. Electric power generates the second largest share of greenhouse gas emissions at 25%.

Environmental groups say stricter tailpipe pollution standards are needed to clean the air we breathe and slow the impacts of severe weather events such as hurricanes, tornados and wildfires.

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