AP Sources: EPA car law to push EV sales to surge

WASHINGTON (AP) — The Biden administration this week proposed strict new auto pollution limits that would require 54% of new vehicles sold in the U.S. to be electric by 2030 and two out of three by 2032. And environmental officials have been briefed on the plan.

The rule, announced by the Environmental Protection Agency on Wednesday, will set greenhouse gas emission limits for passenger vehicles between the 2027 and 2032 model years, which will become more stringent. Agreed goals of the auto industry by 2021.

The EPA will provide a range of options for the agency to choose from after a public comment period, the officials said. They asked not to be identified because the proposal has not been made public. The proposed rule is not expected to be final until next year.

Environmental groups are hailing the ambitious numbers, first reported by The New York Times over the weekend. But the plan is likely to face strong pushback from the auto industry, which in August 2021 pledged to account for half of U.S. new car sales by 2030.

Even the low end of the EPA’s 2030 range is 4 percent higher than the 2021 goal, which came after intense pressure from President Joe Biden. An The executive order signed by Biden sets a goal of half of all new vehicles sold by 2030. Being zero-emission vehicles, including battery electric, plug-in hybrid electric or fuel cell electric vehicles.

Biden also wants automakers to increase gas mileage and reduce emissions between now and the 2026 model year. In the year Halve US greenhouse gas emissions by 2030 Pushing a once-unthinkable shift from gasoline engines to battery-powered vehicles.

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

The EPA’s tailpipe emissions limits do not require a certain number of electric vehicles to be sold each year, but instead impose limits on greenhouse gas emissions. That’s roughly the same thing as, according to the agency’s calculations, the number of EVs needed to comply with stricter pollution limits.

The auto industry will need to sell many more EVs to meet the demands. It has already increased the range of gasoline vehicles with more efficient engines and transmissions, reducing weight and other measures. Many in the industry say they’d rather spend investment dollars developing new EVs that could dominate the industry in the coming years.

He suggested that legislation alone would put a brake on the idea of sweeping emissions reforms, but the Alliance for Automotive Innovation, a trade association that includes most automakers, said: “Regulatory constraints alone will not determine the ultimate success.” EV transfer.

Supportive policies such as tax credits for EV purchases and funding for charging stations nationwide are needed, the union said in a statement released before the EPA rule was announced. EVs need to be more affordable, parts and domestic critical mineral supply chains need to be developed, and utility generation capacity needs to be adjusted, the statement said.

Transportation is the single largest source of carbon emissions in the U.S., but it is closely followed by electricity generation.

Environmental groups say stricter tailings pollution standards and provisions are needed Inflation Reduction Act Last year helps to reach the most difficult requirements. “Tailpipe emissions pollute the air we breathe and exacerbate extreme weather,” said Fred Krupp, president of the Environmental Defense Fund.

The Affordable Care Act, Climate Change, and Health Care Act, passed with only a Democratic vote, have tax credits for electric vehicle manufacturing and the purchase of new and used EVs.

Currently, many new EVs manufactured in North America qualify for a $7,500 tax credit, while used EVs can be up to $4,000.

However, there are price and buyer income restrictions that make some vehicles ineligible. And from April 18 New requirements required by the Treasury Department It results in fewer new electric vehicles qualifying for the full $7,500 federal tax credit.

The regulations require that a certain percentage of battery components and minerals come from North America or countries with which the US has a free trade agreement. According to industry analysts, The requirements, announced March 31, could cut the $7,500 loan on many vehicles in half. Less credit may not be enough to attract new buyers to EVs, which now cost an average of $58,600, according to Kelly Blue Book.

The price is down from $63,500 a year ago as more affordable EV models are on the market. Still, EVs are more expensive than the average vehicle sold in the U.S., which costs just under $46,000.

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Krisher reports from Detroit.