The Biden administration has revealed new automobile emissions standards, which it claims to be the most ambitious plan ever to reduce emissions from passenger vehicles.
What Happened: The new regulations, announced on Wednesday, relax the initial tailpipe limits proposed last year. However, they are expected to eventually align with the strict standards set by the Environmental Protection Agency (EPA), the Associated Press (AP) reported.
The EPA’s final rule estimates that the industry will be able to achieve the emission limits if 35% to 56% of new vehicle sales are electric by 2032, along with plug-in hybrids or other partially electric cars, as well as more efficient gasoline-powered cars. The original plan pegged EVs to account for 67% of new vehicle production by 2032.
These new standards are expected to prevent over 7 billion tons of carbon emissions over the next three decades and provide nearly $100 billion in annual net benefits, including lower healthcare costs, fewer deaths, and more than $60 billion in reduced annual costs for fuel, maintenance, and repairs, EPA said.
Why It Matters: The new rules come at a time when sales of electric vehicles (EVs), which are crucial to meeting the standards, have started to slow. The auto industry had previously cited lower sales growth when objecting to the EPA’s preferred standards unveiled last April.
The EPA’s new rule, which applies to model years 2027 to 2032, is expected to significantly reduce emissions of planet-warming greenhouse gases, as well as other air pollutants such as nitrogen oxides and particulate matter from new passenger cars, light trucks, and pickups.
Transportation accounts for the largest source of U.S. greenhouse gas emissions, with cars and trucks contributing to over half of those emissions. The new rule is aimed at addressing this issue while accelerating the adoption of cleaner vehicle technologies.
The new standards are designed to be technology-neutral and performance-based, giving car and truck manufacturers the flexibility to choose pollution-control technologies that best suit their customers while meeting environmental and public health goals, the EPA said.
The rules have received mixed reactions, AP noted. While environmental groups have expressed optimism, some industry and political figures have criticized the standards, arguing that they essentially decide for the public which vehicles they should buy.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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