By Shayan Abbasi
In a significant move on March 22, the Biden administration announced strict new tailpipe pollution standards that will reshape the American automobile industry. The Environmental Protection Agency’s new regulation mandates that by 2032, the majority of new passenger cars and light trucks sold in the U.S. must be electric or hybrid vehicles.
This regulation, which took nearly three years to finalize, seeks to significantly curb carbon emissions from the transportation sector — the largest source of such pollution in the country. In 2022 alone, the electric vehicle sales comprised only 7.6% of total U.S. car sales. The new rule sets an ambitious target: by 2032, electric and hybrid vehicles are expected to make up at least 72% of new car sales.
The shift towards electric vehicles is central to President Joe Biden’s broader climate strategy, which includes a goal to cut in half the total national emissions by the end of the decade (2030). This move comes in between a divided political atmosphere, with the topic of electric vehicles being increasingly politicized. Former President Donald Trump has criticized the move towards electric vehicles, which he has discussed in campaign rallies.
This regulation progressively implements stricter emissions limits over subsequent years and is scheduled to start in 2032, by which time over half of the new cars sold in the U.S. will need to be zero-emission vehicles to comply with the standards. The EPA estimates that this shift will prevent over seven billion tons of carbon dioxide emissions over 30 years, which will equal a year’s worth of greenhouse gasses produced by the United States.
Financially, the regulation is scheduled to deliver about $100 billion in annual net benefits, which includes large public health improvements because of the better air quality that is a byproduct of increased usage of electric vehicles. Car owners are also expected to save about $6,000 over the lifetime of their vehicles in reduced fuel and maintenance costs.
Despite the support of environmental groups and sectors of the auto industry, the new standards have raised some controversy, in part due to the implications the new regulations have upon changing manufacturing processes and consumer products in a short period. In addition to this, American Fuel and Petrochemical Manufacturers have begun a campaign to oppose what they term “Biden’s EPA Car Ban”.
Legal challenges are expected to be made from various areas, such as fossil fuel interest groups and Republican attorney generals, which may the stage for a trial in front of the Supreme Court. Meanwhile, auto manufacturers and the United Auto Workers have expressed concerns relating to this, and they have been influencing the EPA to adjust the time under which the regulations are expected to be in place.
This rule is part of several climate policies introduced by the Biden administration, which includes measures targeting power plants, trucks, and methane emissions. These combined efforts are meant to cut US greenhouse gas emissions, which are meant to lower the impacts of climate change.
As the 2024 presidential election approaches, the future of these regulations and America’s automotive landscape is a controversial area because of these debates within climate policy and economic implications.
