According to the New York Times, the Biden administration is planning to relax regulations concerning tailpipe emissions, aiming to facilitate a smoother transition from gas-powered vehicles to electric ones. Sources familiar with the matter revealed that the administration intends to grant them more time instead of imposing immediate pressure on car manufacturers to considerably increase electric vehicle (EV) sales in the coming years. The anticipated rule change may be announced as early as the beginning of spring.
Under this proposed shift, the requirement for a sharp rise in EV sales would be postponed until after 2030. John Bozzella, the president and CEO of the Alliance for Automotive Innovation (AAI), emphasized the critical nature of the next few years for EV market development. Bozzella advocated for giving the market and supply chains an opportunity to catch up and for the expansion of public charging infrastructure.
Earlier reports suggested that the White House could implement Environmental Protection Agency regulations in March that aims for substantial reductions in tailpipe emissions. The proposed guidelines would necessitate increasing the U.S. EV market share to 67% by 2032 which is a tremendous leap from the less than 8% share in 2023.
Automakers such as General Motors, Ford, and Stellantis have expressed concerns about the rapid transition, particularly regarding their truck-heavy fleets. They argue that such a swift shift would pose profitability challenges. Both automakers and the AAI have called on the Biden administration to reconsider the proposed acceleration in EV sales, citing the current high cost of EV technology for many mainstream consumers and the need for further development of charging infrastructure