Biden team proposes strict vehicle pollution limits to boost EV sales

The Biden administration on Wednesday proposed strict new automobile pollution limits that would require that all-electric vehicles account for as many as two of every three new vehicles sold in the US by 2032 in a plan that would transform the US auto industry.

Under the proposed regulation, released by the Environmental Protection Agency (EPA), greenhouse gas emissions for the 2027 through 2032 model years for passenger vehicles would be limited to even stricter levels than the auto industry agreed to in 2021.

The announcement comes nearly two years after carmakers pledged to make electric vehicles comprise half of US new car sales by 2030 as part of a history-making transition from gasoline-powered engines to battery-powered vehicles.

The proposal, if finalized, represents the most aggressive US vehicle emissions reduction plan to date, requiring 13% annual average pollution cuts. The EPA is also proposing new stricter emissions standards for medium-duty and heavy-duty trucks through 2032.

The president, who signed an executive order setting a target for half of all new vehicles sold in 2030 to be zero-emissions vehicles, also wants automakers to raise gas mileage and cut tailpipe pollution between now and model year 2026, which would be a significant step toward his pledge to cut US planet-warming greenhouse gas emissions in half by 2030.

The EPA estimates net benefits through 2055 from the proposal range from $850bn to $1.6tn. By 2032 the proposal would cost about $1,200 per vehicle per manufacturer, but save an owner more than $9,000 on average on fuel, maintenance and repair costs over an eight-year period.

The proposed regulation is not expected to become final until next year.