This morning, the Biden administration announced the finalization of long-awaited new emissions rules – and they are strict, but not as strict as those initially proposed by the EPA.
The new rules require an approximately 50% reduction in greenhouse gas (GHG) emissions from passenger cars and trucks by 2032. Drastic reductions are also planned for fine particulate matter that causes smog. This is less drastic than the EPA’s initial proposal last year, which would have required faster initial changes from automakers in 2027 and reductions of up to 67% in CO2 emissions from here 2032.
Despite the slight relaxation in the final rule, it will undoubtedly change what dealers sell in the decades to come. In its initial proposal, the EPA wanted two-thirds of new car sales to be electric by 2032, something automakers and unions called impossible. The major industry group for automakers called the initial plans “neither reasonable nor feasible” and encouraged the Biden administration to significantly relax the requirements. The final proposal revealed today largely meets their demands, which move closer to Biden’s initial goals of 50% plug-in and electric vehicle sales by 2030.
Officially, the new rules are independent of their implementation, and automakers can still sell whatever drivetrains they want as long as they meet emissions targets. Meeting the new emissions targets will almost certainly require sales of hybrids and electric vehicles to exceed the current proportion of new electric car sales of 7.6%. The EPA projects that 30% to 56% of new cars will be electric vehicles by 2032 with the final rule, depending on how automakers decide to implement it.
While the final rules pleased automakers, they left Biden’s political opponents dissatisfied. Former president and current presidential candidate Donald Trump has harshly and repeatedly criticized Biden for his environmental and electric vehicle policies. Oil companies have also expressed displeasure with the EPA’s plans, calling them a de facto ban on gasoline-powered cars, and the state of Texas is currently suing the EPA, challenging its regulatory authority automobile emissions.
The president is also facing challenges from the left, as nearly a hundred US lawmakers signed a statement encouraging Biden to finalize the tougher rules, rather than loosen them for the sake of the auto industry .
The rules were made stricter in the past (under the Obama administration) only to be rolled back (by the Trump administration) and then reinstated (by the Biden administration). The outcome of the 2024 presidential election will therefore likely determine whether the new rule lasts long enough to be implemented.
