The Tougher Emissions Rules might give you more EV options

The United States Environmental Protection Agency is going to make history if, at the end of the day, they finalize the ambitious pollution standards that will drive an electric-vehicle revolution

The US Environmental Protection Agency (EPA) today proposed a landmark set of pollution regulations that could spark an electric-vehicle revolution and drive down greenhouse-gas emissions.

The EPA’s initial estimate is that the regulations would reduce carbon emissions by around ten billion tonnes over the next three decades. That is more than double the United States’ emissions last year, or more than one-quarter of the global total. “The administration is going to make history if indeed, at the end of the day, they finalized these new standards,” says Oge. I am really hopeful.

“We’re going to envision and innovate and achieve this future together,” he said during a call with reporters. It is within our grasp. Make no mistake about it.”

The regulations are “the single most important regulatory initiative by the Biden administration” in order to reduce the worst impacts of climate change, says the chair of the international council on clean transportation.

“The administration is going to make history — if indeed, at the end of the day, they finalize these ambitious standards,” she said in a press conference arranged by the Environmental Defense Fund, an advocacy group.

Proposed Public Works Standards for Electric Vehicles: Implications of the Inflation Reduction and Tax Credits Acts on the Auto Industry and the Automotive Industry

In addition to new rules for cars, trucks and SUVs, the EPA is also proposing standards for medium-duty vehicles, like delivery trucks, and heavy-duty vehicles, like tractor-trailers. If finalized, the EPA predicts these would lead to 50% of buses and 25% of long-haul tractor trailers being electric by 2032.

New proposals for the fuel economy standards are expected soon. These are also separate from — and designed differently than — the zero-emission vehicle mandates adopted in California and some other states.

The standard for emissions is set based on the type of vehicle being built and the size. The agency believes that companies will need to make 67% zero-emission vehicles to meet the new rules.

The country has one of the largest vehicle fleets in the world, so one question is whether it’s possible to scale up to so many more electric vehicles in just a few years. The need to roll out charging infrastructure, ramp up manufacturing capacity for electric cars and convince people to change their habits are some of the challenges.

Companies have different timelines for when they wanted to go electric, and many did not say that they would be near two-thirds electric by 2032.

The EPA’s analysis found that drivers would save money because EV are cheaper to operate. Car buyers may also benefit from tax credits of up to $7,500.

And it’s certainly true the Biden administration offered many carrots to persuade the auto industry to go electric, in addition to this regulatory stick.

Two years ago, bipartisan infrastructure deal gave $7.5 billion to build a nationwide EV charging network so that drivers powered by plug might one day roam without fear of running out of power. Just last summer, the Inflation Reduction Act created new incentives for businesses thinking of electrifying their own fleets of cars and trucks, and launched new tax credits rewarding companies that manufacture batteries and electric cars in the US.

The proposed regulations will be open for comment, and car makers will likely be very vocal about expressing what they consider they can actually achieve over the next decade.

The proposed rules are also very likely to face a backlash. Texas is one of the states that filed a lawsuit against the EPA over its authority in crafting the current version of these vehicle standards.

Notably, the Alliance for Automotive Innovation, the trade group for major automakers, has defended the EPA’s right to set those standards, saying nobody questions the future is electric.

The new rules made it hard for autos to build EVs that would get them tax credits. The White House believes that the new mining, battery building, and manufacturing projects in the US will give a boost to a global car industry that is dominated by the US.

In particular, an infrastructure bill enacted by Congress in 2021 and a massive spending bill known as the Inflation Reduction Act, passed in 2022, are funnelling federal money into charging infrastructure and tax credits for consumers and for manufacturers of automobiles or batteries that upgrade or build new facilities.

The Biden administration is encouraging companies to purchase material from countries that have free trade agreements with the United States, as it’s necessary to manufacture modern batteries. The administration wants to dial back dependence on China by encouraging domestic manufacturing. If batteries and vehicles are made in the United States, you’ll get tax credits, but only if you’re from free-trade partners like Australia, Canada or Mexico. There are no obvious challenges in the way of supplies of crucial minerals for electric-car batteries.

The investment in these nations can theoretically give enough supplies, according to an energy-storage analyst. She warns that it will be important for the United States to strengthen its international partnerships because demand from Europe and other regions will rise.