(USNewsMag.com) – The Environmental Protection Agency released proposed regulations April 12 which set new greenhouse gas emissions limits for passenger vehicles for the 2027 through 2032 model years. The new regulations are more strict than the goals agreed to by the auto industry in 2021.
In August 2021 the auto industry pledged by 2030 to make electric vehicles half of all new car sales in the U.S. Under the new proposal from the Biden administration, at least 54% of all new vehicle sales by 2030 would be required to be electric vehicles. By 2032, that number will increase to two out of three new vehicle sales, or 67%.
Biden signed an executive order to push for 50% of all new vehicles sold by 2030 to be zero-emissions vehicles, which includes vehicles that are plug-in hybrid electric, fuel cell electric or battery electric vehicles.
Between now and the 2026 model year, President Joe Biden wants the auto industry to cut tailpipe pollution and raise gas mileage.
The limits on tailpipe pollution from the EPA is a mandate on the limits on greenhouse gas emissions, not a mandate of an actual number of electric vehicles sold. The EPA calculates the number of electric vehicles that would be needed to comply with the tailpipe pollution limit to get the number for their calculations.
Currently, electric vehicle sales make up 7.2% of all sales in the first quarter. That is up from 5.8% last year.
As part of the Inflation Reduction Act, new electric vehicles that are manufactured in North America are eligible for a tax credit of $7,500 tax credit, and used electric vehicles are eligible for a $4,000 tax credit. Though average electric vehicles prices are still on average about $58,600, according to Kelley Blue Book. The average new vehicle is about $46,000.
It is expected the regulation will not become final until 2024.
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